Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 11

1

INFOSYS.110 BUSINESS SYSTEMS:


DELIVERABLE 2: BUSINESS SECTION
2014

Name Heying li
NetID Hli938
Group Number: 311
Website Link: http://infosys110group311.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Khushbu Thursday 12pm
Time Spent on
Assignment:
30 hours Word Count: 1647

2


2
ANALYSIS REPORT
INTRODUCTION
Researches stated that riding motorcycle without a helmet is a severe safety problem and
causes heaps of accident happened every year. Helmets are estimated to prevent 37
percent of crash deaths among motorcycle riders and 41 percent of crash deaths for
motorcycle passengers.Cdc.gov(2010) We found out that a bluetooth connected helmet
might be able to solve this problem as people can only start their motorcycles by connecting
it to the helmet. Hopefully our product can make the road safer for riders.
3. BUSINESS SECTION
3.1 Vision
You will never have a chance to forget your helmet.
3.2 Industry Analysis: helmet manufacturing industry
Industry:motorcycle helmet manufacturing industry.
Force: High/Low: Justification:
Buyer power: High Buyers have a large variety of helmet brands to
choose from. Buyers can choose according to price or
quality. Because it is a competitive industry,
companies always set a lower price to attract
customers.
Supplier power: Low
Answers.com,. (2011) Modern helmets are
constructed from plastics. Premium price helmets are
made with fiberglass reinforced with Kevlar or carbon
fiber. Those materials are not difficult to be found and
there are heaps of suppliers around the world.

3


3
Companies can find one supplier that can minimise
their cost.
Threat of new entrants: High One company only needs to follow the law to make
laws requiring acceptable helmets. Such as New
Zealand Standard NZS 5430: Protective helmets for
vehicle users. Nzta.govt.nz(2010). For a small
company, dont need a large amount of start up
capital thus easy to enter.
Threat of substitutes: Low Helmets reduce injuries and fatalities in motorcycle
accidents (Jess F.1994), thus many countries have
laws requiring acceptable helmets to be worn by
motorcycle riders. So there are no substitutes for
motorcycle helmets.
Rivalry among existing
competitors:
High Rivalry among existing competitors is high when
competition is fierce(Baltzan,Lynch,Blakey.2013).
There are many existing helmet manufacturing
businesses, all companies want to creat a competitive
and lead the industry to appeal more customers. So
competitive is high.
Overall attractiveness of the industry: Wear a helmet when riding a motorcycle is enforced
by law. So anyone who rides without a helmet will be fined, thus no threat of substitutes.
But competition is high as many existing companies and low barriers to enter the market.
3.3 Customers and Thei r Needs
Our company designed one kind of motorcycle that assembled with blue-tooth. Then need
one device assembled with motorcycle start button. This device is similar to a circuit

4


4
breaker. Motorcycle can only be started when the helmet connected with that device. Then
the circuit inside the motorcycle can be connected to start the motorcycle.
You may think that no one will ask for a trouble to buy this kind of helmet. But we still have
customers.
Riders got caught because they did not wear a helmet before may be enforced by police to
buy this kind of helmet. Under this condition, even though they unwilling to buy this helmet,
they have no choice.
Teenagers who like riding motorcycle might be enforced by their parents to buy this helmet
to ensure safety. Parents will worry about whether they wear a helmet while riding. With
this helmet, they will feel at ease.
3.4 The Product and Service
Our newly designed helmet includes two parts. One is the helmet itself and one is the device
which uses to connect with the start bottom. Firstly we assemble that device to the
motorcycle as described above. This device also has blue-tooth device installed. Once the
device connected with the blue-tooth signal sent by the helmet, the motorcycle can be
started. In order to avoid the rider put his helmet at the back of motorcycle instead of
wearing it, we designed these two blue-tooth devices can only be connected within one
meter distance.
We will help our customers assemble this device to the motorcycle when they bought our
helmet can then teach them how to connect the helmet to their motorcycles. We also
provide 3 years guarantee in case some quality problems occur.
3.5 Suppliers and Partners
As a manufacturer, we need raw material suppliers provide to make the basic helmet. As
these raw materials are used by all helmet manufacturers, it is easy to find cheap suppliers.
A blue-tooth devices supplier is also very important for us. As our company creats a
competitive advantage through launchs this newly designed helmet, we have the first
mover advantage as well. We need to maintain this competitive advantage by making the

5


5
connection between helmet and motorcycle more reliable, which means we need a reliable
blue-tooth devices supplier provides high-quality devices for us.
Motorcycle retailer.
Motorcycles and helmets are always selling together because they are cross-sell products.
One will buy a helmet when he purchases a motorcycle as it is necessary. We are going to be
partners with several motorcycle retailers and display our helmets in their shops. Then for
every helmet sold by these shops, they can receive a percentage of selling price as a bonus.
Delivery company
After we manufactured our products, we need to deliver it to retailers for sale. It will be
troublesome and cost more for a company to find random logistics company every time. So
we need a partner, once we build a relationship with this company, we will save time and
hopefully can get a lower charge. And for this logistic company will also have a stable source
of income.
3.6 Strategy: narrow market high cost strategy.
We focus on the relatively narrow market because if the person is willing to wear a helmet,
he wont buy this kind of helmet. So we mainly focus on people who are enforced by others
or really consider their own safety.
This blue-tooth helmet is more expensive compare with normal helmets as it has blue-tooth
devices assembled. More complicated technology needed. And the device assembled on the
motorcycle will also be a cost.
3.7 Value Chain Activity: manufacturi ng the product
The most important value chain activity is manufacturing the product. We creat
competitive advantage by launching this blue-tooth connected helmet which has never
been seen before in the market. We already have a first mover advantage. But in order to
keep this competitive advantage, we need to keep updating our product, make it more
reliable and effective, so we always need to keep improving the quality and efficiency of our
helmets during the manufacturing activity.

6


6
Under narrow market high cost strategy. Reliable blue tooth connection and high quality are
really important because if our customers can always find problems when using it, such as
the connection always instable, then that means this product cannot really deliver value
what customers need. So every helmet should be made with care and skill to make sure our
product and connection between helmet and motorcycle will always stay in good condition.
According to our vision,we aim to reduce motorcycle accident by enforcing some wear
helmet. So if the helmet we made is not reliable enough, this aim cannot be met.
3.8 Business Processes
3.8.1 HELMET MANUFACTURING PROCESS
Firstly, we receive orders from customers, then the manufacturing manager
processes the order to the factory. Manufactures wi ll make certain amount of
helmet in based on customers order. Then workers will check stock inventories
to see whether the raw material s are enough for manufacturing. If not, they will
need to order more. Then workers start making helmets. This process ends
when all works are completed.

7


7
start
Receive order from
customers
Check stock raw
materials
Enough raw
materials left?
Order more No
Make helmets
yes
Reach the target
quantity
end
Raw materials management department
Ordering system
Ordering system


3.8.2. HELMET QUALI TY TESTI NG PROCESS
After all helmets have been completed, workers need to test the quality to make sure
customers will receive high standard helmets. Then after the manager believes all helmets
are error free, products will be shipping to retail shops or straight to customers. Finally, this
process ends.

8


8
start
Choose samples
from all products
Test the quality of
samples
qualified
Packaging
yes
Ready for shipping
end
Correct any fault or
make new ones
no
Quality inspection department
Quality inspection department
Quality management system
Quality management system


9


9
3.9 Functionalities
3.9.1. HELMET MANUFACTURING PROCESS
Receive order from customers
Check stock raw materials
3.9.2. HELEMT QUALI TY TESTI NG PROCESS
Test the quality.
Correct any fault.
3.10 Systems

3.10. 1. ORDER MANAGEMENT SYSTEM- This is a specific system on how we process orders
received from customers. Once we receive an order from customers, we will save the
information in this system and then send the order to the factory for manufacturing
helmets. This order will complete only after customers received products. This system will
help our company process orders on time and get organised.
3.10. 2. RAW MATERI ALS MANAGEMENT SYSTEM The quantity of raw materials we stock in
the factory should be under control. Then anytime when we receive an order, our system
will automatically check the amount of raw materials we have and the amount we need, if
there is a lack of materials, order will be made immediately, in this way we wont waste
time on check inventory manually,shorten production life cycle.
3.10. 3. QUALI TY MANAGEMENT SYSTEM- to make sure all products are in good quality is a
key aspect for a company to gain reputation and generate profit. Under this system,any
error will be recorded and corrected and the percentage of the pass as well. So then for the
data we collected,it is easy to analyse the efficiency of how the workers performed and
what we should improve.

10


10
3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Manufacturing
the
product
1.make the
helmet process
1.receive an order form customers

2.check stock raw materials

Ordering system

Raw materials managemnet
system
Transcation processing
system
2.quality
testing process
1.check the quality

2.Correct fault
Quality managemnet system


Transcation processing
system

11

11
CONCLUSION
Overall, We use information systems such as ordering system under TPS to help us manage
and process customers orders. And use quantity management system under TPS to check
quality and correct, determine how effectively we performed and what we should improve
as well. Under the help from the information system and technology, hopefully this helmet
can reduce the amount of the riders who are not wearing a helmet. As a consequence,
fewer injuries and deaths make the world a better place.
REFERENCES


1. Baltzan, Paige. (2013) Business driven information systems/ Paige Baltzan ,Kathy
Lynch and Peter Blakey. (2nd ed.) Australia: Kate hickey.

2. CDC Features - Motorcycle SafetyCdc.gov,. (2010). CDC Features - Motorcycle
Safety. Retrieved 24 May 2014, from
http://www.cdc.gov/features/motorcyclesafety/

3. Jess F. Kraus, MPH, PhD; Corinne Peek, MPH; David L. McArthur, PhD, MPH; Allan
Williams, PhD. JAMA. 1994. The Effect of the 1992 California Motorcycle Helmet Use
Law on Motorcycle Crash Fatalities and Injuries;272(19):1506-1511

4. Motorcycle helmet.Answers.com,. (2011). Motorcycle helmet. Retrieved 24 May
2014, from http://www.answers.com/topic/motorcycle-helmet#Construction.

5. Nzta.govt.nz.the official new zealand road code for motorcyclists you and your
motorcyclenzta.govt.nz,. (2010). The official new zealand road code for motorcyclists
- you and your motorcycle. Retrieved 24 may 2014, from
http://www.nzta.govt.nz/resources/roadcode/motorcycle-road-code/you-and-your-
motorcycle/wearing-the-right-gear.html

You might also like