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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS
SECTION
2014






Name Chaoran Kang
NetID Ckan961
Group Number: 349
Website Link:
https://www.blogger.com/blogger.g?blogID=8254698314
941195710#allposts
Tutorial Details
Tutor: Day: Time:
Mira Tutor Friday 12pm
Time Spent on
Assignment:
26 hours
Word
Count:
1585
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INTRODUCTION
The problem we found in deliverable one is that we always buy things that are
different with our expectation and this problem could cause by customer lack of
information and misleading advertisement. Therefore, we designed a local life
consumption website that it not only provides information about products,
entertainment and restaurants but also customer reviews, promotions and group-
buying.
3. BUSINESS SECTI ON
3.1 Vision
We provi de real and abundant i nformati on for ever ybody. Register t o become our
member al lows you not onl y share shopping experiences with people form ever ywhere
around the countr y but also enj oy the promoti ons, group-buyi ng and other acti viti es t o
save your money.
3.2 Industry Analysis: E-commerce Industry
Industry: Electronic commerce, commonly known as E-COMMERCE, is trading in
products or services conducted via computer networks such as the Internet. (E-commerce,
2013)
Force:
Force: High/Low: Justification:
Buyer power:
High
Al s o d e s c r i b e d a s t h e ma r k e t o f
o u t p u t s . Th e a b i l i t y o f c u s t o me r s t o
p u t t h e f i r m u n d e r p r e s s u r e a n d i t
a l s o a f f e c t s t h e c u s t o me r ' s
s e n s i t i v i t y t o p r i c e c h a n g e s .
( Sc r i b d , 2 0 0 8 )
Supplier power: High
Al so descr i bed as market of i nput s.
Suppl i ers of raw mat eri al s, component s,
and ser vi ces(such as expert i se) t o t he
f i rm can be a source of power over t he
f i rm. Suppl i ers may r ef use t o work wi t h
t he f i rm, or e.g. charge excessi vel y hi gh
pri ces f or uni que resources. (Scr i bd,
2008)
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I f t here i s a concent r at i on of suppl i ers f or
cert ai n product s i n t he busi ness rat her
t han f ragment ed (Johnson et al , 2006)
Threat of new entrants: High
Prof i t abl e market s t hat yi el d hi gh ret urns
wi l l draw f i rms. Thi s resul t s i n many new
ent rant s, whi ch wi l l eff ect i vel y decrease
prof i t abi l i t y. Unl ess i ncumbent s bl ock t he
ent ry of new f i rms, t he prof i t rat e wi l l f al l
t owards a compet i t i ve l evel . (Scr i bd,
2008)
Threat of substitutes: High
The exi st ence of cl ose subst i t ut e product s
i ncreases t he propensi t y of cust omers t o
swi t ch t o al t ernat i ves i n response t o pri ce
i ncreases (hi gh el ast i ci t y of demand).
(Scri bd, 2008)
Rivalry among existing
competitors:
High
Fo r mo s t i n d u s t r i e s , t h i s i s t h e
ma j o r d e t e r mi n a n t o f t h e
c o mp e t i t i v e n e s s o f t h e i n d u s t r y.
So me t i me s r i v a l s c o mp e t e
a g g r e s s i v e l y a n d s o me t i me s r i v a l s
c o mp e t e i n n o n - p r i c e
d i me n s i o n s s u c h a s i n n o v a t i o n ,
ma r k e t i n g , e t c . ( Sc r i b d , 2 0 0 8 )

Overall attractiveness of the industry: This is industry is not attractive due to the five force
are high. Buyers have a lot of choices in this industry so they can easily switch to the
competitors.' Supplier's power is high so the cos twill be higher. There are a lot of entry
barriers and require a lot of money and time. " Physical stores and touch, fell, hear
factors" could be the substitutes(Ward, 2001). Moreover, the E-commerce industry is
very competitive. Therefore, this industry is not very attractive.
3.3 potential Customers and Thei r Needs
Our potential customers could be 20~29 years old female white-collars. That is because this
group of people not only have stable income and purchasing power but also 80% of them
chose Internet as an important entertainment. (The Internet in New Zealand, 2013) This
group of people usually under a significant work pressure and don't have a lot of time to
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compare the product differences. Therefore, the needs for them could be a convenient
website provides promotions, group-buying about a range of products, companies,
restaurants and also allowed them to write reviews, read about other people's
recommendation.
3.4 The Product and Service
By pinpoint the location, users are able to check the products, companies and restaurants'
information anywhere anytime and also download coupons, join promotion's activities, group
buying as well as comment and read customer reviews. Users can search the keywords to
find all the related products, reviews, promotions and group-buying. After user decide what
products they want to purchase, our website also have link to Trade me and Amazon that
make the purchase process easier.
3.5 Suppli ers and Partners
One of the suppliers could be user. Users' comments are the main source of the information
for the website. When they comment on the website they provide recommendations and
suggestions for other people. The website cannot function without user reviews and
comments.
Another supplier could be Google map. The users are using the website, they can find all the
promotions and businesses around their area. This service is supported by Google map.
Google map provides our website users' current location to make sure we can give related
information to users.
The partner of the website is restaurants. They provide promotions meals, discounts and
group-buying on the website in return our website help them advertiser.
Trade me or Amazon could be our partner as well. When people are looking for products on
Trade me, there could be a recommendation page that link to our website that provides all
the related customer reviews and comments. This is significant because it increases our
page views. Besides, the users of our website are able to buy the product they choose after
reading the recommendation because there is a quick link to trade me of that product.
3.6 Strategy: cost leadership
Our website designed for a broad market. From the vision, we can see that everybody who
have the access to the Internet and willing to register on our website is our consumer.
According to the business vision, the website is aim for saving money for the customers,
therefore, it is free to register. This is important because there are a lot of competitions in the
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market and the customers are already loyal to some brand so we choose to use promotions
and group-buying to attract those non-members to use our website. Hence, cost leadership
is our strategy.
The overall strategy is therefore cost leadership
3.7 Value Chai n Activi ty: Market and sell the product or services
Based on the vision and strategy, market and sell the product is our key value chain activity.
Because we target on everybody in the market, therefore, we need to community efficiently
with everybody that our website provides a lot of information and promotions are beneficial
to them. We use different marketing strategies to get the awareness and then let them use
our website and loyal to us.
The most important value chain activity for this business is Market and sell the
product or services.
3.8 Business Processes
3.8.1 Comment process
When somebody browses our website and choose to comment than a comment process is
the start. If he or she is already a member then he or she can comment directly if not then he
or she needs to register first. After they post their comment, the IT department the check the
comment whether it include any violence, eroticism and extract information that could
damage the website image. In the end, a member can see their comment shows on the
website.
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3.8.2 Group-buying process
When a user joins a group-buying, must we record the best order and give the partner
business the right order information as well. Hence, when the user choose to join a group-
buying, they need to fill in the information online than the marketing department will record
the order and the order to the partner business so the user can see he or she join the group-
buying successfully.

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3.9 Functionalities
3.9.1. COMMENT PROCESS
Collect the comments
Update the comment on the website
3.9.2. GROUP-BUYING PROCESS
Collect customer order information
Make a sum of the order
3.10 Systems

3.10.1. COMMENT ORGANIZING SYSTEM
In the comment organizing system, comments are collected, checked, classified and
published. As comments are the main information source of our website, the comment
organizing system is crucial. Comments are collected and checked to make sure the
comments' relibility. to make sure the users can find the information easily, comments put in
different categorizations. In the end, comments are put in the website to ensure the website is
always up-to-date..
3.10.2. MEMBER MANAGEMENT SYSTEM
Everybody who wants to join activities in our website is required to register. Member
management system allows ur to organize member information. Therefore, we can do a
series analyses based on the information. For example by collecting the age of members, we
can know which group of age group of people is our main consumer, hence to make effective
decisions based on this information.
3.10.3. ORDER PROCESSING SYSTEM
Order processing system supports our website by recording right orders details, summarizing
and sending the order to partner business. Record the right order details are essential
because without the right order information we can not satisfy both our website users and our
partner businesses which could damage our website reputation. We summarize the orders
get from the users and send it to our partner business allows our partner business can
provide a well-organized group-buying on time.
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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)

Market
and
sell
the
produ
ct or
servic
es
1. COMM
ENT
PROC
ESS
2. Collect the comments

3. Update the comment
on the website

COMMENT
ORGANIZING
SYSTEM

COMMENT
ORGANIZING
SYSTEM



Transaction
processing cheese
system



Transaction
processing cheese
system

2. Group-
buying
proces
s

1. Collect customer
order information
2. Make a sum of the
order


MEMBER
MANAGEMENT
SYSTEM

ORDER
PROCESSING
SYSTEM

Transaction
processing cheese
system



Decision support
system
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CONCLUSION
This report has analyzed how information systems were used in the website we
designed which the aim is to provide a place people can write about their shopping
experiences, find real customer recommendations, promotions and also join group-
buying. Market and sell the product is our key value chain activity. This value
chain is supported by comment process, group-buying process. Information systems
are imperative because it allowed every department to work together and drive to
the success.

REFERENCES
1. E-commerce - Wikipedia, the free encyclopedia. (n.d.). Retrieved from
http://en.wikipedia.org/wiki/E-commerce
2. Five Competitive Forces of e Comerce Industry. (n.d.). Retrieved from
http://www.scribd.com/doc/7752131/Five-Competitive-Forces-of-e-Comerce-Industry
3. Porter's Five Forces and an Enhanced Business Management System. (n.d.).
Retrieved from
https://www.smartersolutions.com/blog/forrestbreyfogle/2010/08/01/porters-five-f
4. Johnson, G., Scholes, K. and Whittington, R.(2006), Exploring Corporate Strategy,
Enhanced Media Edition, Prentice Hall, Harlow
5. Ward, M.R., 2001, Will Online Shopping Compete More with Traditional Retalling or
Catalogue Shopping?, Netnomics, 3 (2) 103-117 (Springer) Available at:
http://www.ingentaconnect.com/content/klu/netn/2001/00000003/00000002/0033787
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6. The Internet in New Zealand(2013). Institue of culture, discourse & communication.
Retrieved from
http://media.nzherald.co.nz/webcontent/document/pdf/201347/nzworldinternet.pdf