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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Shohei Matsuyama smat274 Group 38 http://infosys2014ssgroup38.blogspot.co.nz/p/d1.html Tutor: Day: Time: Yvonne Hong Tuesday,Friday 3pm 26 hours Word Count: 1631

NEW GENERATION PACEMAKERS

INTRODUCTION

In the world, a number of people die every day. However, it is doubtful that those deaths cannot be preventable because quick reactions for medical treatment might be able to save many lives. Then why does a delay in treatment happen? This report focuses on the specific health problem heart diseases (attacks) which may result in serious consequences, and also illustrates how our business can solve the issue through information system.
3. BUSINESS SECTION 3.1 Vision

Our vision is to be the most customer-centric company and contribute peoples lives and well-being through providing the innovative products and services that can address one of the most serious health issues.
3.2 Industry Analysis: Cardiac Health Care Devices Industry

Industry: Cardiac Health Care Devices Industry.

Force:

High/Low:

Justification:

Buyer power:

Low

Burns and Pauly (2008) suggest that the pacemaker market that is industry-specialised and costly is nearly oligopolistic. This means that there are few companies in contrast to a number of buyers hospitals. Also there is low incentives of buyers (Todd, 2010).

Supplier power:

Low

Pacemakers are composed of several parts such as generators or leads (National Institutes of

Health, 2010). This means that there are many

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alternativres of suppliers who are manufacturing those parts in pacemakers.

Threat of new entrants:

Low

Burns and Pauly (2008) indicates that companies in cardiac devices industry can be protected by patents, and also there is a existing strong relationship between companies and hospitals.

Threat of substitutes:

Low

Statistics suggest that one of risk factors for heart diseases is obesity, so exercises can possibly reduce the risk of heart attacks (The New Zealand Heart Foundation, 2013). However, there is no critical solution for irregular heart beating other than pacemakers.

Rivalry among existing High competitors:

Companies in this industry can be protected by patents and the sticky relationship with hospitals (Burns&Pauly, 2008), which means that obtaining these advantages would result firms are in high always

profitablities.

Therefore,

competing with each other through their differentiated products or prices.

Overall attractiveness of the industry: Overall attractiveness of the cardiac health care devices industy is high mainly because pacemakers are almost unsubstitutable as they are highly industry-specific and the best possible option to manage irregular heart-beating. Furthermore, low buyer/supplier power enbales firms to choose ideal suppliers and sell products to a wide range of buyers. While the competition in this industry is relatively fierce, the possibility of new entrants is low because of the protection of patents or the relationship with hospital.

3.3 Customers and Their Needs

Statistics indicates that 1/18 of adults in New Zealand have the posibility of heart attacks (The New Zealand Heart Foundation, 2013). This means that potential customers are all of those people who have heart diseases and cannot control their heart conditions without pacemakers in New Zealand. Their needs for pacemakers are fairly high because pacemakers are the best possible option to keep heart-beating regularly, and also they can reduce peoples concerns about unstable heart conditions and increase their survival rate.
3.4 The Product and Service

While demands for pacemakers are high, there are still some problems for existing pacemakers such as St. Johns medical alarm system (St. John Ambulance Australia, 2012). For example, existing pacemakers require the users to call 911 or push the emergency button in order to inform their urgent problems. However, some of them die due to a delay in treatments resulted from their disablity for calling/pushing processes (Beck, 2012). On the other hand, our products can automate those calling or pushing button processes through providing heart condition automatic scanning and GPS systems in pacemakers. These systems can automatically scan the heart attack levels and send the information to 911 and hospital, and the ambulance can come to the place where the patient is under heart attacks through the GPS system. Since calling 911 or pushing emergency button are unnecessary in our pacemaker systems, our products can dramatically reduce the time to rescue and also overall death rates from heart deseases.
3.5 Suppliers and Partners

There could be many suppliers such as GPS device, heart condition scanning devices, signal generating devices manufacturers in addition to the basic components suppliers such as generator/lead manufacturers. Firstly, the contract with generator and lead manufacturers is required to make a pacemaker itself. Then, our products need to contain the GPS and heart-beating automatic scanning devices, so GPS device manufacturers and automatic scanning device manufacturers should be our suppliers. Partners can be hospital and ERT (Emergency Response Team) in order to set up the information network with one central
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database. Another partner is a software company that can make those network systems and database. If necessary, we need to train our partners such as hospital or ERT in order to ensure how our networks are working, and how they can manage and quickly response to information from customers pacemakers.
3.6 Strategy: Focused High Cost Strategy

The competitive scope is narrow. Even though overall populations of pacemaker users are wide, our targets/customers must have specific cardiac health problems heart diseases. The cost strategy is high because our products are focused on high quality, and also our vision is to provide innovative products that can satisfy customers needs. The overall strategy is therefore Focused High Cost Strategy.
3.7 Value Chain Activity: Make the products and services

The most important value chain activity for this business is Make the products and services. In order to provide ideal products and complete our mission, manufacturing processes must have the first priority because many important sensitive devices are put into the pacemakers, and they can be the key stuffs to make the overall systems which would differentiate our products from others. Although service after the sale and technology development are also important, making the products and services is the basis of our business.
3.8 Business Processes
3.8.1. QUALITY CONTROL PROCESS- One of the most important processes is the quality

control process because our vision focuses on the quality of innovative products, and our success hugely depends on the quality management. This process includes three steps that are acceptance of sample, process control, and trouble shooting. At the first step, we examine whether the quality of products or components from suppliers is acceptable through sampling tests. If the quality is inappropriate, we may re-consider the components or raw materials. Secondly, we assess each process and find out which process actually affects our final products quality. If any problem is identified in the process control step,
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then there is still possibility that we consider changes in suppliers, raw materials, or product lines. After all those steps in the quality control process, pacemakers are provided for customers. The quality assuarance management system independently managed by the quality assurance department supports this process, and the quality control report from this department can be shared throughout the organisation.

QUALITY CONTROL PROCESS;

3.8.2. ORDER PROCESSING PROCESS The

order processing process is also important because

we basically operate several product lines with several suppliers in order to make one
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pacemaker, and quick integrations are necessary to complete/process customers orders. In this process, several departments manage the order information centralised in the organisation, and all supply chains can share that information in oder to fulfill the order efficiently. ORDER PROCESSING PROCESS;

3.9 Functionalities
3.9.1. QUALITY CONTROL PROCESS

Identify if the quality of products/parts is acceptable. Modify the product lines or raw material by quality control reports.

3.9.2. ORDER PROCESSING PRO CESS

3.10 Systems

Manage each product line information for orders. Identify what we need by centralised/shared information.

3.10.1. QUALITY ASSURANCE MANAGEMENT SYSTEM-

This system can identify whether the

components or final products meet a certain level of quality that is required to satisfy customers needs. If necessary, this system may suggest the necessity of changes in suppliers or raw materials.
3.10.2. PRODUCT LINE MANAGEMENT SYSTEM

This system manages all product line

operating information and centralise/share them in the organisation. Therefore, we can react to customers order efficiently and effectively.
3.10.3. PRODUCT RESOURCE MAN AGEMENT SYSTEM

This system can find out what resources

such as raw materials or product lines are necessary/unnecessary for our business operation. Hence, we can identify the ideal resources that can make our operation better.

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3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Quality Control Process

Functionalities 1. Identify if the quality of products/parts is acceptable 2. Modify the product lines or raw material by quality control reports. 1. Manage each product line information for orders. 2. Identify what we need by centralised/shared information.

Make the products and services

Specific Information System(s) Quality Assurance Management System Product Resource Management System Product Line Management System Product Line Management System

Broad Information System(s) Decision Support System

Decision Support System Supply Chain Management System Decision Support System

2. ORDER PROCESSIN G PROCESS

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CONCLUSION

This report has illustrated how our vision can be completed through providing particularly important business processes and their functionalities that are supported by appropriate systems. Since those all processes/functionalities are supported by information systems properly, our business can maximise its productivity, and differentiate the products. As a result, we can create customer satisfaction more than other firms.
REFERENCES

Beck, M. (2012). Many People Ignore Signs, Delay Treatment of Heart Attack. Retrieved from http://online.wsj.com/news/articles/SB10001424052702304432704577347723157872672 Burns, L. R. & Pauly, M. V. Price Transparency For Medical Devices. Retrieved from http://content.healthaffairs.org/content/27/6/1544.full National Institutes of Health (2010). Heart pacemaker. Retrieved from http://www.nlm.nih.gov/medlineplus/ency/article/007369.htm St John Ambulance Australia. (2012). Retrieved from http://www.stjohnlifelink.com.au/ The New Zealand Heart Foundation. (2013). General Heart Statistics for New Zealand. Retrieved from https://www.heartfoundation.org.nz/know-the-facts/statistics Todd, R. (2010). Kiwis lead in death from heart attacks. Retrieved from http://www.stuff.co.nz/national/health/3608522/Kiwis-lead-in-death-from-heart-attacks

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