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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Xinning Liu
NetID xliu870
Group Number: 327
Website Link: http://infosys1102014fcgroup327.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Mira Lee Friday 11am
Time Spent on
Assignment:
15 hours Word Count: 1608

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PROJECT ROT-NOT
INTRODUCTION
There are days in your life when you look into the fridge and find a bunch of once delicious
looking foods turning into mouldy waste. Why? Because you have forgotten that they were
going to expire soon and there were nobody to remind you. It does not only create food
wastage but also money is being wasted. Project Rot-Not is the solution.
3. BUSINESS SECTION
3.1 Vision
Our vision is to create a better way to avoid food wastage that is both efficient and
sufficient. To make the world a better place with the help of technology.
3.2 Industry Analysis: Smart Refrigeration Appliances Industry
Industry: Smart Refrigeration Appliances Industry.
Force: High/Low: Justification:
Buyer power: Low
There are not much smart fridges. Currently,
Samsung and LGs smart fridge (1) are the only
smart fridges on the NZ market. Samsungs smart
fridge has a 10-inch display that shows you the
weather, your calendar, notes (2) from that, the
buyer power is low.
Supplier power: High As our fridge requires advance technology for the
scanning process, the only supplier that meets
our need is Consumer Physics (5) which provides
low cost spectremeter. Therefore supplier power
is high.

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Threat of new entrants: Low For the smart fridge industry, threat of new
entrants currently will not be high because high
level of technology development is required.
Developing a advance technology even just for
fridges needs years to reasearch, investigate and
develop. By working with Consumer Physics, we
could sign a contract with them which prevents
other firms from using that technology.
Threat of substitutes: Low Other than fridges, there are three methods of
alternative refrigeration you can use without
electricity (3), but none of that is a substitute
products as they are only usable methods. Hence,
the only substitute for a smart fridge would be a
regular fridge which has less functions, therefore
the threat of substitute is low in this industry.
Rivalry among existing
competitors:
Low From my research mentioned above,
organisations that is currently in the smart fridge
industry in NZ are Samsung and LG, so there
arent many competitors as opposed to regular
refridgeration industry. The rivlary amongst
existing competitors would be low.
Overall attractiveness of the industry: The smart refridgeration appliances industry is
attractive as the five forces of the industry are low overall and the opportunity of making
profit is significant. Our product not only has a competitive advantage but also a first-mover
advantage as the Rot-Not fridge will be the first fridge ever that is able to determine when
foods will reach their expiery date by scanning foods interior chemical substances.
3.3 Customers and Thei r Needs

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There are always a group of people with hectic, busy lives who fills the fridge up all at once
regardless of expiry date. Or there will be those who simply forgets from time to time. For
example, a proportion of the buyers buys fresh food produces when they see specials in the
supermarket, forgetting that there are still some left in the fridge . What they need is
something that keeps them notified and on track.
3.4 The Product and Service
The main functionality of our product (Rot-Not fridge) is scanning the foods chemical
substances through a scanner designed within the fridge. This will analyse when the food is
going to expire from the statistics gathered during the scanning process which carries out
automatically. After the anaylising process, the screen on the fridge displays a number next
to a name. The name represents the food and the number indicates the number of
days/hours till when the food is going rotten (start to rot). Once the food reaches 3 (days),
the screen will give a warning (red ! symbol) to notify the user and a beeping sound when
the fridge opens. All these functions can be personalized by the users as every customer has
their own neccesities. We will also provide after sales services such as free repairements
within 10 years.
3.5 Suppliers and Partners
Suppliers: A supplier we have considered is Consumer Physics which created SCiO. SCiO is
a hand scannertell you about their chemical make-up. (5) This technology is what we
perfectly need for the scanning process. The product uses an instrument called
spectrometer for scanning, spectrometers are used today in labs around the world, but
expensive for everyday use. (6) The problem of high developing cost has been solved by
Consumer Physics as they started a R&D team that has designed a way to mass produce
these product with low cost. Another potential supplier is Samsung as they supplies display
screens which we could consider using for our fridge. Samsung currently supplies Apple with
screens that we often see. Since Apple is a big company, by them using screens made by
Samsung indicates the top quality. Hence we consider working with Samsung as our screen
supplier.

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Partners: As mentioned above in the potential supplier section, if we could be partners with
SCiO, then we can skip the R&D process and leave that to them. This will reduce the cost for
making our Rot-Not fridge and therefore, more affordable for consumers. Our aim is to
reduce household food wastages as in NZ over $750million worth of food is wasted
because of confusion over Use By and Best Before dates alone.(4) If we work together
with a environmental campaign, it would be free advertising for the product. From that,
food wastage would reduce as more people would know our product and purchase it.
3.6 Strategy: Cost Leadership (Low cost, Broad Market)
Our market strategy is Cost Leadership. Providing a low cost product for the broad market.
As working with Consumer Physics enables us to skip the R&D process, and the most
important part can be mass produced at low cost, manufacturing the refridgerator wont
cost as much. Low cost production will allow us to retail these products at a lower cost
compared to other existing smart fridges which are marketed around $4000 to $6000. Our
fridge could possibly be priced at around $1000 since we emphize on the scanning process
rather than combining apps to the fridge . We target the broad market as most households
and companies have a fridge and ours is affordable for the average. The overall strategy is
therefore Cost leadership.
3.7 Value Chain Activity: Make the product
The most important value chain activity for this business is making the product. Being the
manufacturer enables us to carefully select parts we use for the product and would be
easier to determine the retail price and mark up price. Most importantly, we will maintain
our fridge for top quality and making sure its user friendly.
3.8 Business Processes
3.8.1. MANUFACTURING PROCESS
One of the key business processes is the manufacturing process. This is because the
businesses ultimate objective is to make the fridge as there is nothing to sell if nothing is
produced. The process involves planning out parts needed; contacting the supplier and
order the parts; receive orders and make payments; check parts received; store the

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inventory and update inventory database; make the fridge and stored as finished goods
inventory and update finished goods database.
Start
Plan what
parts are
needed
Order from
supplier
Enough?
No
Yes
Receive parts
and invoice
Make
payment
Stored as
parts
inventory
Updates parts received
Update
material
database
Parts query
Make
Refrigerator
Updates with finished goods
finished
goods
inventory
Finished
Goods
database
End
Accounting & finance
ERP
system
Operation management

3.8.2. MARKETING AND SALES PROCESS
The next important aspect after making a product is selling the product as there is no point
in making the refrigerator if no one is going to buy it. The marketing and sales process
involves creating marketing campaigns; promoting the product; attracting customers;
checking available inventories and processing sales. This process will make sure this
refrigerator that has been produced is known by the public and has demand for it.

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start
End
Marketing Department
Accounting Department
Receives packaged Product
Setting task
Customer service
Design apartment
Design packaging for product
Receive finished
Refridgerator store as
inventory
Send prototype
Assessing
Collecting Accounts
receivable
Marketing campaign
Organise
Update department
database
Store
Headquarter
Transport to retail store
Potential customer
Customer
Payment
Promoting product
Make purchase
Report
SAP
System
Report sales
Check inventory


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3.9 Functionalities
3.9.1. MANUFACTURING PROCESS
Receiving all the parts needed for making the refridgerator.
Make the refridgerator.
3.9.2. MARKETING AND SALES PROCESS
Create a marketing campaign
Check inventories
3.10 Systems

3.10. 1. SAP (SYSTEM APPLICATION PROGRAMING) SYSTEM- The main purpose of the SAP
system is to avod duplication, shorten time required for day to day tasks which increases the
production efficiency and productivity as a whole. During the manufacturing process, SAP is
able update our requirement of parts needed and notifies the supplier, letting them know
how many inventory they need. Possible waste created by duplication can be avoided. This
supports our vision of doing thing in a efficient and sufficient way.
3.10. 2. KNOWLEDGE MANAGEMENT SYSTEM-
This system provides context for operative decision making by being able to capture, classify,
evaluate, retrieve and share information assets. Consumer interest and personal
information can be recorded and evaluated for later marketing strategie use. This will
support our vision of being efficient.
3.10. 3. SALES AUTOMATI ON SYSTEM
The sales automation system will keep track of the whole sales process. This enables us to
acknowldge how many inventory has been sold and from that analyse a trend of how many
more is needed. This system once again supports our vision of being efficient and sufficient.


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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)

Make the
Product
1. Manufacturing
process
1. Receiving all the parts needed for
making the fridge .

2. Make the refridgerator.

System application
programing system

Workflow management
system
Supply chain
management System

Collaboration system
2. Marketing and
sales process
1. Create a marketing campaign

2. Checking inventories
Knowledge management
system
Sales force automation
process
Collaboration system

Customer relationship
management system

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CONCLUSION
As my conclusion, our overall idea of this buisiness is to create a refridgerator that notifies
users of when there food expires and avoid food wastage in a effective and sufficient way.
With the help of Information Systems and IT, the vision of achieving the goal in both a
effective and sufficient way is highly possible.

REFERENCES

1. Eliza.B. (May 04, 2014). The 'Smart Fridge' Finds The Lost Lettuce, For A Price
Retrieved May 19,2014, from:
http://www.npr.org/blogs/thesalt/2012/05/03/151968878/the-smart-fridge-finds-the-lost-
lettuce-for-a-price
2. Dean.T. (January 11, 2013). Samsung smart fridge: It runs Android apps like Evernote
(video demo). Retrieved May 19,2014, from:
http://venturebeat.com/2013/01/11/samsung-smart-fridge-it-runs-android-apps-
like-evernote-video-demo/
3. Provident Living today.(2013) Retrieved May 23,2014 from:
http://www.provident-living-today.com/Alternative-Refrigeration.html
4. WRT Waiheke Resources Trust. (2011). Reducing household food waste. Retrieved
from:
http://wrt.org.nz/take-action/homes/food/reducing-household-food-was
5. Tim.B. (May 05, 2014). Scio Pocket Molecular Scanner Is a Google-like Device for
Physical objects. Retrieved May 24,2014 from:
http://time.com/87205/scio-scanner/
6. Consumer Physics. (2014). SCiO: Your Sixth Sense. A Pocket Molecular Sensor for All!
Retrieved from https://www.kickstarter.com/projects/903107259/scio-your-sixth-
sense-a-pocket-molecular-sensor-fo