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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Peiyi Li
NetID pli415
Group Number: 18
Website Link: http://infosys1102014fcgroup18.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Claris Chung Monday 12pm
Time Spent on
Assignment:
22 hours Word Count: 1648

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MR.BUS APP BUSINESS PROPOSAL
INTRODUCTION
Nowadays we may have a public transport card which makes the fare payment quicker. But
there are still many people paying cash. Besides, the single little card is easy to lose and
anyone who picks it can use it. Thirdly, different cities have different transport card which
makes it impossible to travel around New Zealand using one card. Therefore we came up
with the idea of Mr. Bus, an APP in mobile phone. Everyone has a unique QR code with their
unique account, linked with customers certain personal bank account. Simply scan the code
when getting on the bus and scan it again when getting off, the transport fare will be
deducted from their bank account. Also it could be used all over New Zealand for bus, train
and ferry, which makes travelling more convenient and efficient.
3. BUSINESS SECTION
3.1 Vision
Makes all people in New Zealand travel happily while saving the time, by making the public
transport fare payment more convenient and efficient nationwide.
3.2 Industry Analysis: Transport Service Software Industry
Industry: Transport Service Software Industry.
Force: High/Low: Justification:
Buyer power: Low There are several different transport software
companies in New Zealand but they are limited
within certain city or regions. Therefore people
who live in one city have limited choice and
buyer power is low.

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Supplier power: Low Major supplier for this industry is network
provider. In 2013 there were about 74 internet
service providers in New Zealand (Statistics New
Zealand, 2013). This gives company a lot of
choices, such as Vodafone, Telecom, Slingshot,
Orcon and so on. Hence supplier power is low in
this context.
Threat of new entrants: High Creating a new transport service software does
not need infrastructure, much money, nor
advanced technology. Although software needs
both coding knowledge and software
development proficiency, many software
creators just turn to an outside developer, which
could be either a large firm or an individual
freelancer (Brooks, 2012). Therefore the threat
of new entrants is high.
Threat of substitutes: High People who take public transport can go to the
website or local customer service centre for
information, instead of software. Hence the
threat of substitutes is high.
Rivalry among existing
competitors:
Low As there are limited competitors in each region-
based local market, they are basically ruling
their own market. Thus the competition is not
fierce and rivalry among existing competitors is
low.

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Overall attractiveness of the industry: Transport service software company currently has
low buyer power with a relatively more complacent competition within industry. Also the
establishing cost is low and company has many choices for suppliers. As it is far more
convenient, people would prefer to use software rather than go to website or customer
centre. Therefore the industry is overall attractive.
3.3 Customers and Thei r Needs
The potential customer of our product is the whole population using public transportation in
New Zealand. According to the research, more and more people prefer public transport
instead of driving. Take Auckland as an example, January saw a jump of 3.3 per cent in the
number of trips made using public transport and the number of train trips was up 7.6 per
cent in January compared to the same month last year (Abadia, 2014). Also the current
transport card users also have the great potential to turn to our product. The number is
large, for example, over 83,000 AT HOP cards are activated by June 2013 in Auckland
(Auckland Transport, 2013). Therefore we have a growing customer group and they need a
convenient and effective transport service system to support their trip.
3.4 The Product and Service
Our product provides a convenient and efficient service for public transport information and
fare payment. As it is an APP in mobile phone, people do not need to take an extra card
which is also very easy to lose. Also the unique QR code is linked with customers certain
personal bank account, therefore there is no need to worry about low balance and top-up.
Whats more, this APP could be used all over New Zealand for bus, train and ferry which
makes national travelling much more convenient and pleasing.
3.5 Suppliers and Partners
3.5.1. SUPPLIERS
One major supplier is network provider, for example Vodafone or Telecom. The network is
needed to link each personal account with the whole database and with the bank account.

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Another provider is the scanner manufacturer or distributor. Scanner is necessary for the
code scanning and data transforming in order to complete the fare payment process. An
example of this can be Sekor Distributor, who aims to enhance businesses with seamless
provision of POS and Mobility hardware solutions via expert advice, service and support
(Warren, n.d.).
3.5.2. PARTNERS
One partner has to be the public transportation providers, i.e. the bus, train and ferry
companies in New Zealand, for example Ritches, North Star etc. This collaboration is
definitely necessary as they are at the other side of fare payment and information
communication.
The other important partner is the bank. As the code scanning is linked with customers
personal bank account, the backstage banking support is needed. Example partners could be
ANZ, ASB and Westpac etc.
3.6 Strategy: Cost Leadership
Our targeting market is everyone who use public transport and own a smartphone all
around New Zealand. The number of smartphone usage is increasing largely year by year, to
60% by the year 2013 (Dodd, 2013). The number will certainly grow bigger in the future.
Also more and more people are ditching the car for a bus or train (Abadia, 2014), indicating
that this product will have a broad market which would include majority of people using
public transport. On the other hand as the cost of setting up the business is low, it will be
cheap to purchase this APP, less than purchasing a current transportation card. Hence our
product is targeting a broad market and low cost strategy.
The overall strategy is therefore Cost Leadership.
3.7 Value Chain Activity: Technology Development (and R&D)
The most important value chain activity for this business is Technology Development. This
activity is especially important because the latest information and timetable need to be up
to date. Also our product as an APP requires a strong backstage support platform to ensure
all the communications go smoothly and efficiently, so that it does not corrupt and could
satisfy the broad market with huge amount of transactions take place at the same time.

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Only with a high level of technology development could we make travelling happly while
saving your time come true.
3.8 Business Processes
3.8.1. SCANNI NG AND CUSTOMER I DENTIFICATION PROCESS The scanning and customer
identification process is activated when the customers QR code in the APP is scanned. Then
this transaction information will be received by the business information management
department and classified via customer relationship management system (mainly analytical
CRM). The customer will be identified as adult, tertiary, or secondary. Finally when the
passenger gets off, the code will be scanned again, after which the information of that
transaction will be handed to the banking payment process.


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3.8.2. BANKING PAYMENT PROCESS This banking payment process will be activated once
the customer information flows in from the previous scanning and identification process.
After that the passengers fare will be automatically calculated via the order management
system and then flows to the customer order management department, where the order of
payment will be placed. Then the order will be received by the backstage banking payment
system and the fare will be deducted from customers personal bank account, and the
process is completed.



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3.9 Functionalities
3.9.1. SCANNI NG AND CUSTOMER I DENTIFICATION PROCESS
Collect customer information.
Classify customers into different groups.
3.9.2. BANKING PAYMENT PROCESS
Process the customer order and calculate the fares.
Deduct money from customers bank account to complete the process.
3.10 Systems

3.10. 1. ANALYTI CAL CRM SYSTEM This system is the back office side of the broad CRM
system which include data warehouse and data mining. When the information of a
customers transaction comes in, it automatically classify the customer into the matching
group according to the record in data warehouse. A smooth and quick analytical CRM
system could reduce data latency and make the process more efficiently.
3.10. 2. ORDER MANAGEMENT SYSTEM This system receives customer transaction order,
calculates the fare costs, and sends the payment orders to the next department. This is part
of the broad ERP system as the transaction orders from all over New Zealand go into this
single system which makes the data visible for all business departments. An efficient and
transparent order management system can avoid duplication and improve efficiency.
3.10. 3. BANKING PAYMENT SYSTEM This system receives the confirmed order from order
management system and processes the payment, and therefore belongs to the transaction
processing system. The efficiency and improvement in this system can largely reduce
payment latency which is important for the efficiency of the whole process.

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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)

Technology
Development
(and R&D)
1. Scanning and
Customer
Identification
Process
1. Collect customer information.

2. Classify customers into different
groups.
Analytical CRM System Customer Relationship
Management System
2. Banking
Payment
Process
1. Process the customer order and
calculate the fares.

2. Deduct money from customers bank
account to complete the process.
Order Management System


Banking Payment System
Enterprise Resource
Planning System

Transaction processing
System

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CONCLUSION
Overall, the APP Mr. Bus provides a different choice of public transport fare payment which
makes it more convenient and efficient nationwide. Information system plays an important
role in the whole scanning and payment process. CRM system supports customer
information collection and identification. TPS supports the whole banking payment process.
A transparent ERP system reduces duplication and data latency while improving efficiency.
Also the partnership with transport company, bank, and APP store indicates the significance
of collaboration system.
REFERENCES
1. Statistics New Zealand. (2013). Internet service provider survey 2013. Retrieved from
http://stats.govt.nz
2. Brooks, C. (2012, April 30). How to start an app business. Business News Daily.
Retrieved from http://www.businessnewsdaily.com
3. Abadia, K. (2014, March 21). More using public transport [press release]. Retrieved
from http://www.stuff.co.nz
4. Auckland Transport. (2013). Annual Report 2013. Auckland: Author. Retrieved from
https://at.govt.nz/media/276536/AT-Annual-report-2013-web-version.pdf
5. Sektor. About Sektor. (n.d.) Retrieved May 25, 2014, from
https://www.sektor.co.nz/about-sektor
6. Dodd, J. (2013, August 29). Smartphone penetration has risen to 54% of the
population. IAB New Zealand. Retrieved from http://www.iab.org.nz