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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Louisa Godinet
NetID lgod906
Group Number: 519
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Claris Monday 3pm
Time Spent on
Assignment:
25 hours Word Count: 1073

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FINGERPRINT SECURITY SCANNER SYSTEM
INTRODUCTION
Shoplifting costs New Zealand retailers $760 million annually. This is not only a problem for
the success of the small and large businesses, but also a problem for the economy as a
whole. Reports have found that a two-five per cent loss in sales to shoplifting can amount to
25 per cent loss in profits. The Fingerprint Security Scanner System requires customers to
scan their finger print before entering the store this will then get their information,
therefore when a customer shoplifts the shop has the customers details.
3. BUSINESS SECTION
3.1 Vision
To minimize shoplifting, reduce costs for New Zealand retailers and also to generate growth
for the businesses.
3.2 Industry Analysis: Security Industry
Industry: Security Industry.
Force: High/Low: Justification:
Buyer power: High

Retail businesses have a lot of options to choose
from security wise. For example EAS is a popular
security system for retailers wanting to protect
their products and maintain profitability.
(Doris Evans, 2009)


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Supplier power: Low Retail business would have a lot of security
systems to choose from for example CCTV and
source tagging, and they would probably go for
the most effective system, or the cheapest
system. This is why supplier power would be low
because they have more than one choice
although these choices are different. (Doris Evan,
2009)
Threat of new entrants: Low In the security industry the threat of new
entrance would be low unless the security system
does something unique, or different from what
the other systems are already doing. This is why
the barriers to entry are high and the threat of
new entrance is low.
Threat of substitutes: High

Retailers are investing in $6.7 million per year on
security systems such as source tagging, CCTV
and other alarm systems. Therefore the threat of
new substitutes would be high because there are
a few alternatives. (Doris Evans, 2009)


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Rivalry among existing
competitors:
Low Most of the security systems do different things,
for example CCTV is a surveillance security system
which is completely different to source tagging.
Therefore there wont be much rivalry amongst
them because they do different things. (Doris
Evans, 2009

Overall attractiveness of the industry: I think that the attractiveness of this company is
really high as there wouldnt be much competition with the other security systems because
they all do different things. Also because customers have a lot of options to chose from they
would be able to asses what each security system does and which one is more affective.

3.3 Customers and Thei r Needs
Consumers may think that shoplifting doesnt affect them; in fact costs are being recovered
through paying customers. So this affects everyone, decreasing economic growth, also the
goods that are stolen have no GST on it so the government would lose out as well therefore
increasing costs. The FSSS is designed to reduce the shoplifting rate, this means that paying
customers dont have to make up for the stolen goods. This would product would be useful
for retailers as it helps reduce shoplifting in a more secure way.
3.4 The Product and Service
This product would be able to satisfy the customer (retailers) in a way that it minimizes
shoplifting by getting peoples information when they scan their finger before entering the
store. Its different to surveillance and source tagging because before the thief even tries to
do shoplift the shop would already have their information. This would make it harder for
them to get away with shoplifting.

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3.5 Suppliers and Partners
A suitable supplier for my product would be a company that supplies the materials in order
to make the finger print scanning device. A suitable partner for this product would be other
security systems, because all security systems visions should be about minimising crime. So
partnering up with other security companys would be ideal.
3.6 Strategy: Cost leadership
The FSSS is most likely to be entering a broad market, and for this product to be more
attractive to customers the cost has to be low. Therefore Porters Generic strategy used for
the FSSS would be the cost leadership strategy because its targeting a big market with low
costs. The overall strategy is therefore Cost leadership.
3.7 Value Chain Activity: Technology developement
The most important value chain activity for this business is Technology development. This is
because this device is using advanced technology, and it also needs to be able to always
upgrade when cetain things change with stores. Maintanince can be a huge problem with
technology. Retailers would like to have a product that doesnt break down a lot. This adds
more value to the FSSS because being able to still develop it so that its a better product will
make it more attractive because reatailers know its able to adapt.
3.8 Business Processes
OPERATING PROCESS: This business process shows how the device functions. From when a
customer enters the store to when they leave. This shows how its suppose to catch
shoplifters. When the information gets sent out and why the information gets sent out. Also
if the information isnt needed then it gets deleted straight away.



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DECISION PROCESS: This process shows how this device is going to improve, this is by seeing
some errors withing the system, then the system would pick up on what is not functioning
properly e.g information being misplaced when customers scan. Then by getting errors only
then can they develop a more upgraded device



3.9 Functionalities
3.9.1. OPERATING PROCESS
Customers information

3.9.1. DECISION MAKING PROCESS


3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities

Finger
print
security
scanner
system.
1. Operating
Process
1. Customers information

2.
2. Decision
making
process


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CONCLUSION
In conclusion using information systems to create the FSSS will help minimize the shoplifing
rate, because it is smart and efficient. One small scan can help small business grow more. If
there is less theft there will be more growth. Shoplifting costs New Zealand retailers $760
million annually. That money could be used on making our world a better pace and with the
FSSS that is possible.
REFERENCES

1. New Zealand Herald article from publisher's website: Leask, A. (2013,
July 22). The high cost of shoplifting. The New Zealand Herald. Retrieved
from www.nzherald.co.nz