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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Emilio Miguel
NetID Emig077
Group Number: 360
Website Link: http://infosys1102014s1group360.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kirsten van Dorp Thursday 11am
Time Spent on
Assignment:
30 Hours (at least) Word Count: 1598





















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INTRODUCTION
When you are away from home for vacation or occupational reasons it is a hassle to organize care for your
pet(s) proving costly and stressful. The Matic Pet Feeder automatically dispenses food as well as
communicating via the internet to your electronic smart device. This allows ultimate control of your
beloved pets consumption with no physical presence. Matic can do it all, equipped with an infrared
camera to detect your pet when in radius of Matic alongside speakers allowing your voice recordings to be
played for the comfort of your pet.
3. BUSINESS SECTION
3.1 Vision
To provide a care free and innovative way to control your pets dietary consumption. Saving ones time and
money, Matic aims to be in the household of every busy pet owner.
3.2 Industry Analysis: Pet Care Technology Industry
Industry: Pet Care Technology Industry, within the industry there is range of product sectors e.g. pet
feeders, GPS devices, pet fitness monitors and even robot pet caregivers!
Force: High/Low: Justification:
Buyer power: Low
The 2010 Global pet care revenue was $80.3
billion (Market Line, 2012, p. 6) and with dog &
cat ownership registrations expanding at nearly
4% per year (Franchise Help, 2014) there is a
large number of consumers in the industry
enabling firms to ignore the demanding
individuals.
Supplier power: High The number of firms capable of supplying
complex and costly technological materials is
limited. Pet Industry suppliers are adding higher
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margin products (Stankevich, 2001, p. 14)
resulting in increased raw materials costs for
retailing firms.
Threat of new entrants: Low
Mars, Nestle and Proctor & Gamble occupy 40.8%
of the total market share (Market Line, 2012, p.
14). Their economies of scale, global identity and
investment in product development, make them
formidable for prospective new entrants to
challenge the current industry (Market Line,
2012, p. 14).
Threat of substitutes: Moderate
The alternative pet sitting industry pricing of
Auckland house sitting costs $50 per day (Pet
Angels, 2014), the other option of kennels costs
$20 daily (Catsablanca) and suspect kennel
welfare can discomfort your pet. The costs of
physical pet care can amount to hundreds of
dollars especially with a second pet.

Rivalry among existing
competitors:
Low With the rise in the number of pets and increased
spending per pet ( Franchise Help, 2014) means
the number of customers is increasing which
decreases rival pressure in addition with
recognized brand loyalty there is difficulty to
dislodge customers from their trusted retailers is.
Also the market share of 40.8% for the top three
firms (Market Line, 2012) shows that these firms
have a competitive advantage against smaller
firms within the industry.
Overall attractiveness of the industry: The pet care industry perks of low buyer bargaining power and
limited rivalry allows retailing firms to determine their desired price, quantity and quality with a limited
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change in market behaviour. The trend of increasing market revenue and pet ownership will benefit the
firms profitability. However, the market share obtained by the existing three dominant firms means
establishing a foot hold in the industry would be difficult. Overall the industry would be challenging to
implement your product into the market, but once the firm has overcome these barriers the potential to
succeed is not questionable.
3.3 Customers and Thei r Needs
The target group consists of people who own one or more domestic pets. Traditionally pet households
contain a single dog, cat or a mixture. 71.2% of Pet Care market value is split between dogs and cats
(36.3%:34.9%) (Market Line, 2012, p. 8). Customer needs for the Matic Pet Feeder would be due to a busy
work schedule e.g. irregular shift hours or frequent travelling required for an occupation. Also Pet owners
taking a vacation will require a way to look after their pet. 32% of the Dog owners would bring their pet
with them when away for 2 days or more (APPA, 2014). Finally Pets which require strict portion sizes due
to health reasons would require some form of consistency when their meals are being served.
3.4 The Product and Service
Matic allows individuals to not be concerned when their pet requires food as electronic messages are sent
to any smart device alerting the customer when their pet is within range of the Pet feeder and if the device
is ignored Matic will dipense food at either default or pre-programmed times. Portion size can be altered
between meals allowing a strict diet to be followed methodically when your pet is experiencing health
issues. All meal times and portions can be set from your smart device, giving you control over your pets
consumption anytime from anywhere and anyplace. Matic ensures that pet owners can be flexible with
work and are not held against the constraints of pet feeding, thus providing owners with the ability to
roam free knowing that their pet is taken care of.


3.5 Suppliers and Partners
Suppliers: One supplier for the Matic Pet Feeder an infrared camera manufacturer which is used in the
processes of assembling the product, Baltech would be an appropriate supplier as they specialize in
constructing cameras.
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The firm Live Sound is another potential supplier which is responsible for providing necessary audio
equipment (speaker and microphone) which is incorporated into the Pet Feeder.
Partners: Matic could form a partnership with Eukanuba to provide their customers with cheap but yet
quality pet food, this would be highly attractive as pet food expenditure accounted for 38.7 % of the 2013
U.S pet care market (APPA, 2014).
Orcon could also form a partnership with Matic as the pet feeder requires internet to interact with the
customers smart device. This partnership could increase internet speed and reduced membership fees
with the internet provider, adding further value to the product.
3.6 Strategy: Differentiation
Matic is a revolutionary yet existing product within the pet care industry, Porters Generic Strategy of
Differentiation would best fit Matics intentions. Matic operates a high cost strategy due to unique
features (infrared camera, audio and internet capabilities) which dont exist in basic pet feeders. However,
high cost strategy doesnt limit the market size in which Matic aspires to capture, a broad Competitive
Scope is a viable strategy when examining the size of the pet industry and the number of pet owners who
have demanding work and lives.
3.7 VALUE CHAIN ACTI VITY: MAKE THE PRODUCT
The importance of manufacturing a sound product which performs without any technological malfunctions
is vital to the success of instilling this product amongst busy pet households. Without a product which
performs effortlessly and continues to preform at maximum efficiency the care free vision cant be
realized. Therefore, the dependence Matic places on integrating the individual technological components
cant be underestimated. If customers have to get the product replaced or diagnosed due to faulty
operations, Matic would have failed upon delivering a product which saves both time and money.


3.8 Business Processes
3.8.1. PRODUCTI ON PLANNING PROCESS: Understanding the importance and relationship of steps within the
process helps produce an economically viable product which the process, employees and technology work
together smoothly.
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Start
Set Budget
Set production
quantity
Is budget
sufficient?
Re-evaluate
budget
No
Yes
Identify
required
materials
Allocate
necessary
capitol/labour
End
Establish
production
events
Prioritize
production
events
Confirm
Production
Events
Accounting and FInance
Accounting and FInance
Inventory Management System























PROCESS: The capabilities and performance of the product 3.8.2 QUALI TY CONTROL
needs to be assessed to recognize improvements where necessary and meet the standards of the 21
st

century consumer.

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Start
Monitor raw
material
condition
Are Benchmarks
met?
Evaluate
employee
performance
Inspect final
product
Set Benchmarks
Eliminate and
replace lacking
components
Assess
customer
feedback
No
Adjust business
actions based
on customer
preferences
End
Human Resources
Yes
Customer Feedback Analysis System
Publish results




3.9 Functionalities
3.9.1
Attain an efficient method of production

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Identify sequential steps in assembling the product
3.9.2
To test the consistency of product performance
Eliminate aspects faulty performance
3.10 Systems

3.10.1
Quality Management System: This system helps to attain quality objectives by reducing operating costs
through selecting the most efficient production cycles while at the same time assessing the various
performances of different operating methods to ensure that a flawless innovative product is delivered to
market.
3.10.2
Customer Feedback Analysis System: The customers opinion as to how the product is performing is vital to
consider when carrying out quality control as the customer is the ultimate deciding factor in determining
the popularity of the product.

3.10.
Production Control System: Assist employees with an efficient manufacturing procedure and provide
updated production information to reduce cycle time, improve costs and maintain a desired final output
standard.









3.11. SUMMARY TABLE: VALUE CHAIN TO SYSTEMS
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Value
Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Make
the
Product
1. Product
Planning
Process
Attain an efficient method of production

Identify sequential steps in assembling the
product
Quality Management
System

Production Control
System
Decision Support
Systems

Supply Chain
Management
2. Quality
Control
Process
To test the consistency of product
performance

Eliminate aspects faulty performance
Quality Management
System

Customer Feedback
Analysis System
Decision Support
Systems

Customer
Relationship
Management



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CONCLUSION
Matics aim to be in the household of every busy Pet Owner with a unique product is largely
dependent on the information systems above as they allow important customer thoughts to
be expressed while the final product is constantly under close watch. The efficient
production method achieved will drive the firms ability to recognize economies of scale and
maximize future revenue margins.
REFERENCES
Franchise Help. (2014). Pet Care Industry Analysis. Retrieved from Costs 7 Trends:
https://www.franchisehelp.com/industry-reports/pet-care-industry-report/
APPA. (2014). Pet Industry Market Size & Ownership Statistics. Retrieved from
http://www.americanpetproducts.org/press_industrytrends.asp
Catsablanca. (n.d.). Hours, Fees & Terms. Retrieved from http://catsablanca.co.nz/fees-hours-terms/
Market Line. (2012). Global Pet Care. Retrieved from
http://web.a.ebscohost.com.ezproxy.auckland.ac.nz/ehost/pdfviewer/pdfviewer?sid=5dd7df7f-b4a6-
4604-86de-d171a6acbf9b%40sessionmgr4001&vid=8&hid=4207
Pet Angels. (2014). House Sitting in Auckland East. Retrieved from http://www.petangels.co.nz/housesitting
Stankevich, D. G. (2001). Pet Suppliers Maximize Space for Retailers. (Retail Merchandiser) Retrieved from
http://web.b.ebscohost.com.ezproxy.auckland.ac.nz/ehost/detail?sid=c6a21a50-18e6-49d9-8862-
d53a79fd64e9%40sessionmgr115&vid=1&hid=103&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaX
Rl#db=buh&AN=4766201