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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Greg Blackett
NetID Gbla864
Group Number: 090
Website Link:
http://infosys1102014s1group090.blogspot.co.nz/2014/05/view-
infosys110-2014-deliverable-02-on.html
Tutorial Details
Tutor: Day: Time:
Olivia Tuesday 9am
Time Spent on
Assignment:
15 hours Word Count: 1735 words

*Enable editing to see process models properly


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A NEW TAKE ON REPEAT DRINK DRIVERS.
INTRODUCTION
The issue of drink driving is a growing concern globally that continues to leave governments
clueless as to how to solve the issue successfully. In fact they should not target the problem
directly but as a basis for future effects aim at reducing repeat offenders as this is where a
large percentage of alcohol related car accidents comes from. Our product is simple,
innovative and essentially smart to help prevent repeat offenders from using their car
under the influence of alcohol through a bluetooth interlock system.
3. BUSINESS SECTION
3.1 Vision
To deliver quality and innovative technology that aids law enforcement in providing
effective and accurate information.
3.2 Industry Analysis: Law enforcement/breathalyzer industry
Industry: Law enforcement/breathalyzer industry. We would operate in this industry
because there are few companies that develop and manufacture solutions that aid law
enforcement successfully or effectively in New Zealand, therefore we believe our product
could be a potential break through as it is an innovative system that will bring competition
to the market.
Force: High/Low: Justification:
Buyer
power:
Low There are few suppliers to the government when it comes to
breathalyzers that are innovative, reliable and accurate. Since
10th September 2012, Draeger has supplied the NZ
government with breathalyser technology that is for people
who have been convicted of drink driving. (Alcohol and drug
detection, 2014) Draeger has been a major supplier in both the

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police and commercial sector and are they only company at
the moment in the industry. There is little buyer power as the
New Zealand government is forced to by what is available,
however by adding another competitior to this industry could
be good for its growth as it encourages competitors to develop
new ideas.
Supplier
power:
Low This industry has the perfect model of what an organisation
wants, as there are many manufacturers of breathalyzers, but
few organisations that provide to the government. Suppliers
have little power when it comes to price setting as they are in a
competitive environment with around 84 different
breathalyzer maufacturers (Global Sources, 2014), therefore
they need to retain competitive edge over their rivals. With
low power the suppliers take huge risks when adjusting quality,
costs, and availability in this industry.
Threat of
new
entrants:
Low To enter the breathlyzer market itself is quite easy as you just
need a product of some sort, however to get the law to use it
would be immensley hard, even to gain partnerships with
government organisations would be difficult. Draeger, a major
supplier of breathalyzers to the government already has
existing contracts and partnerships in NZ, limiting the exposure
of our product in the industry. Adding to the entry barriers is
the costs of creating and maintaining innovative technology
and keeping customers satisfied.
Threat of
substitutes:
Low Threat of substitutes is low because there are not many
alternatives to breathalyzers when is comes to law
enforcement as they provide an effective measure of your

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blood alcohol content (BAC).
Rivalry
among
existing
competitors:
Low There is little competition in this NZ industry because there is
only a few dominant companies that supply the governments
with quality breathalyzers.
Overall attractiveness of the industry: Although this industry has significant entry barriers,
we believe that current solutions lack modern technolgy that will solve the issue effectively.
The industry could potentially be profitable as it aims to halt a global issue.
3.3 Customers and Thei r Needs
The New Zealand government is still struggling to reduce the number of repeat offenders
each year as there is no effecive way of enforcing the laws due to faulty equipment provided
by present suppliers. In 2010, 72% of all alcohol related car accidents in New Zealand where
caused by repeat offenders, this number was set to grow in the years to come (New Zealand
Herald, 2010). This figure highlights the need for the New Zealand government to solve this
growing issue, therefore we are going to target them as our customer base. Our customers
are these governmental organisations but our customer needs are based on the offenders
that are licensed with the product by law, and how we can make it simple and efficient to
use the product and prevent these offenders from avoiding the process.
The needs of the law enforcers will be that they need reliable and accurate readings. To
prevent these offenders from opposing the process an efficient system needs to be put in
place to make it simple and not a hassle to go through as this is the main incentive for
people trying to avoid the testing procedure. Current products make it time consuming and
are ineffective and meeting the needs of both customer groups.


3.4 The Product and Service

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Our breathalyzer and interlock system meets the needs of our customer groups firstly
because we have collaborated modern systems to work efficiently and secondly because we
have learnt from previous manufacturers mistakes. For example, one of Draegers recent
products was flawed because a total of 19,400 potential errors (Mike Stetzer, 2014) were
found in the code according to a recent article. This product caused errors with the result
accuracy as it averages, therefore gave rise to significant errors with reliability and precision.
Our product wirelessly communicates with a police center when each test is taken, along
with detailed information such as date, time and location to prevent these errors. The test
we have incorporated is a simple blow-and-suck breath test using a portable breathalyzer
that can conveniently be stored away which takes little time consumption. A Bluetooth
installment signals a receiver which allows the keyhole ignition to unlock depending on the
test results. To prevent users from manipulating results, technological advances have
enabled us to preset breath samples to the individuals.
3.5 Suppliers and Partners
A major supplier for our organisation would be Bluetooth Special Interest Group (SIG) to
provide the bluetooth technology needed to unlock/lock ignition. Another supplier for our
organisation would be Steel &Tube, a NZ supplier of metal which we would use for the lock
in the ignition. We would import our raw materials from overseas, most likely China, to cut
down costs of production and then mark-up on sale of our product. One partner is GPS
Tracking NZ who is primarily involved in the sale of GPS tracking and navigation systems
nationally throughout NZ. (GPS Tracking, 2014) therefore we get our required IT systems. A
small partner would be an auto electrician company for repairs, installation and
maintenance of the system of vechiles owned by those have previously had a DUI.





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3.6 Strategy: Focused Low Cost
We have set our competitive scope on the narrow market of the breathalyzer industry as we
are completely focused on assisting the government and law enforcement. To gain the
approval of the government we will focus on high quality products to ensure the precision
they are after. Therefore in order to achieve this quality a higher price must be set to cover
any operational expenses incurred in the process of ensuring our products success.
The overall strategy is therefore Focused High Cost.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
Procurement for our business means meeting the needs of our different customer groups in
terms of price, quality, efficiency and reliability. Pushing the barriers of our focused high
cost strategy we ensure our product consist of quality and accuracy so the government can
best utilize our solution to the growing issue of drink driving offenders.
3.8 Business Processes
3.8.1. SUPPLIER PRI CE NEGOTI ATION PROCESS:



This process helps us establish a fair and reasonable price from our suppliers where both
parties are in agreement. This is essential in maintaining minimum costs of production so we
can invest in other areas, such as in the quality of our goods. This process will start at locating
our customers and quoting a price we think is reasonable, next they undergo a negotiating
process where both parties can collaborate and find a fair price. Goods may be purchased
from our suppliers.

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ACCEPT
OFFER
DECLINE



START
MAKE AN ORDER
FOR RAW
MATERIALS
ANALYSE SUPPLIERS
PRICE
FIND A NEW
SUPPLIER
RECEIVE RAW
MATERIALS
NEGOTIATE FOR
DESIRED PRICE
FIND A SUPPLIER
END
SUPPLIER PRICING PROCESS MODEL:
INVENTORY
MANAGEMENT
SYSTEM
RESEARCH
DEPARTMENT

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FAIL TESTS
PASS TESTS
3.8.2. PRODUCT TESTING PROCESS This is a crucial process for a organisation with a
focused high cost strategy because we concentrate on the quality of our goods therefore
thorough testing is required. Alll finished goods undergo a realistic test before being
available to our customers. Product testing falls under procurement as we are adding value
by guaranteeing good quality while meeting customer requirements.

PRODUCT TESTING PROCESS MODEL:


START
RECEIVE FINISHED
GOODS
SORT AND ORDER
PRODUCTS BASED ON
RESULTS
TEST FUNCTIONALITY
OF GOODS
SCRAPPED FOR RAW
MATERIALS
DISTRIBUTE TO
CUSTOMERS
END
WAREHOUSE
DEPARTMENT
TEST ANALYSIS
SYSTEM

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3.9 Functionalities
3.9.1. SUPPLIER PRI CINGPROCESS
Get a reasonable price
Record inventory transaction, i.e goods coming in
3.9.2. PRODUCT TESTING PROCESS
Record and store information/test results
Distribute finished products
3.10 Systems

3.10. 1. INVENTORY MANAGEMENT SYSTEM this specific system will track and monitor
inventory that is both purchased and sold, supporting processes in the sales and
manufacturing sectors. This system helps support the vision by providing external and
internal users with effective and accurate information.
3.10. 2. MARKET ANALYSI NG SYSTEM used to help managers determine prices by examinig
market fluctuations and events, therefore establishing reasonable prices for both customers
and suppliers. This supports our vision by establishing fair prices that our customers can
trust, ensuring they are getting what they pay for in terms of quality.
3.10. 3. ORDER MANAGEMENT SYSTEM -this system is used to manage outgoing orders to
customers of the organisation, including the functionalty of distributing finished goods.
This also covers aspects such as order preparation and accuracy ensuring customers are
getting the correct quantity and quality goods. This supports our vision through the accuracy
and precision of our information systems .

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3.11. Summary Table: Value Chain to Systems

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

Procurement
1. Supplier
pricing
process
1. Get a reasonalbe and fair price to customers.

2. Record inventory transactions, i.e goods
coming in.
Market analysis system

Inventrory management
system
Customer relationship
management system

Transaction processing
system
2. Product
testing
process
1. Record and store information.

2. Distribute finished goods.
Inventory management
system

Order management system
Transaction processing
system

Transaction processing
system

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CONCLUSION
Essentially our product aims to progressively reduce the number of repeat drink driving
offenders over time. Through the collaboration of modern information systems and
technology we are able to devise a product that satisfies customer needs whilse providing
effective and accurate information to aid law enforcement.

REFERENCES

1. Product Information Drager interlock XT. (2014). Retrieved May 25, 2014, from
http://www.draeger.com/sites/en_aunz/Pages/Alcohol-and-Drug-
Detection/Drink-Or-Drive.aspx

2. Number of drink-drivers on the up. (2010). Retrieved May 25, 2014, from
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10669645

3. Breathalyzer source code analysis uncovers ancient technology. (2014). Retrieved
May 25, 2014, from
http://www.totaldui.com/news/articles/breathalyzer/source-code.aspx

4. Breathalyzer manufacturers and breathalyzer suppliers. (2014) Retrieved May 25,
2014, from
http://www.globalsources.com/manufacturers/Breathalyzer.html
5. About: GPS Tracking NZ. (2014). Retrieved May 25, 2014, from
http://www.gpstracking.co.nz/about.html