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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: Surya Balaji sbal535 82 http://infosys1102014ssgroup82.blogspot.co.nz/ Tutor: Day: Time: th Sunday 9 Yuvonne Hong 10am Feb 2014 15 hours Word Count: 1630

FOOD WASTE
1. INTRODUCTION

I go to the supermarket and buy my favourite frozen yoghurt. Yoghurt Story! I stack it in the fride and forget about it, until after its expired. Now I have to throw it out. This happens with almost all types of food all over New Zealand, and the world. We cant do much if we dont like the food, but what about forgetting that we ever bought a certain something to eat? What if we can help our memory? Expiry Date Reminder(EDR) does exaclty that by reminding users of all the food and its expiration date, so it can be consumed, resulting in food waste minimization.
3. BUSINESS SECTION 3.1 Vision

To reduce food wastage in New Zealand and around the world by making life easier using technology to remind people to consume their food before their expiration dates.
3.2 Industry Analysis: Waste Minimization Industry (UNEP, n.d)

Industry: Waste Minimization Industry.

Force:

High/Low:

Justification:

Buyer power:

High

Buyers have many options such as better packaged food, dry foods, processed or pickled foods etc. Although, EDR uses technology to address specifically the problem of forgetting about food, this is not the only way to reduce food waste. (Auckland Council, 2014)

Supplier power:

High

There arent many electronic suppliers in NZ. Outsourcing is used mostly. Many software
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companies can code for the applications in EDR, but electronic components are still the most necessary and hard to get. (GPC, 2008)

Threat of new entrants:

High

Ways to reduce food waste via better packaging and other physical ways of prolonging the period of food storage, complying with the Food and Safety regulations etc, isnt expensive. Many producers of food are already using better packaging. Ways to reduce food waste by merely reminding users of the food like EDR isnt expensive to set up. A mere mobile application can keep track of the food expiration dates, so the entry barriers are not high. (RMIT, 2013)

Threat of substitutes:

High

There are less expensive ways to reducing food waste such as better packaging of food and downloading mobile apps or itunes apps that keep track of the food and its expiry dates. Other less expensive way to reduce food waste is to freeze the food at home or give food away to other people. Another substitue would be the use of a worm farm. (Auckland Council, 2014).

Rivalry among existing High competitors:

Many competitors such as food packaging companies that develop more efficient air-tight packaging; android apps developers; itunes apps developers that gives details about the food and its epiration dates, and food processing

companies that process foods (eg, pickled foods,

dry foods) so the food doesnt go bad too soon. (RMIT, 2013).

Overall attractiveness of the industry: There is a low attractiveness for this industry as all of Porters five forces are high for this industry.
3.3 Customers and Their Needs

Reducing food waste starts in each and every persons households. So customers need to find their ways to do their part in reducing food waste. Most of us today are already using better packaged food, such as canned foods, as they are easier to store at the convinience of our pantry and the food lasts longer as well, and better processed foods. But these ways still dont stop customers from forgetting that they bought a certain kind of food. A full third of food goes uneaten worldwide, which includes the food that goes forgotten (United
Nations,2009),.

EDR stops that from happening as it reminds people of what is stored and when

it is going to expire. So they need a products like EDR and the reminding apps to stop them from forgetting.
3.4 The Product and Service

EDR contains a screen and a scanning area, where the barcodes of food packets are scanned. It recogonizes the barcode and stores the details of that item. Those foods having an earlier expiry date are displayed on the screen in red, and other food are specifically color coded as well. Food that dont have a barcode can just be scanned and the scanner regonizes the shape of the food and automatically gives an estimated date for the food. Details of foods such as whether its been opened and where it is stored can be manually entered, and the device adjusts the expiry date according to those details. This idicates which foods to eat first and which can wait. EDR can be attached to the pantry door or the refrigirator. EDR also comes with wifi facility. Any updates to help better functioning of the device can be updated online from its website.
3.5 Suppliers and Partners
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Suppliers: Electronic hardware suppliers(Eg:Degi-Key, HiQ Components) Software companies to program the apps(Biomatters, GreenButton) Partners: Homeware appliances companies(Eg: Fisher and Paykel, Noel Leeming), so they can sell our device along with their sales. NZ supermarkets(Eg:Countdown,New World) so their barcodes can be collaborated with our devices scanner.
3.6 Strategy: Differentia tion (Porters generic strategy)

Competetive scope is Broad Market, as EDR targets those who buy food, which is everybody, and all food eventually expires. Cost strategy is High Cost as EDR isnt just an app that can be used on a phone, its a device of its own. It costs a lot to produce(ie. the electronics, battery options, the screen quality). Therefore isnt going to be inexpensive for customers to buy either. Overall Strategy - Differentiation.
3.7 Value Chain Activity: Research and Development

The most important value chain activity is R&D. Reasearch involves market reasearch, demand and supply for this new product, and what could be used to enhance the product, to give it competitive advantage. This adds value to the product as it shows what customers are expecting of investment in EDR, and how the business can use technology to make this happen. Development is using the market research to create the desired product. It includes designing and implementing the product, testing the and debugging to add value to EDR.
3.8 Business Processes
3.8.1. MARKET RESEACH PROCE SS

Market Research helps in gathering the information

(Principles of Marketing, 2007). As

about our target markets and our most potential customers.

our
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market is a broad market, the market research can help us identifuy any trends or

correlations between different kinds of customers and what they expect from EDR. Knowing this information is a vital step towards cutting down costs and propogating profit for this company, as the information indicates what features of EDR needs more money to be invested in and which of those features can be eliminated.(The Times 100). Since this product is relatively new, it helps to know what the customers want, so that when the product hits the market, we have a competetive advantage over all other products. BUSINESS PROCESS 1:

3.8.2. TESTING AND DEBUGGING PROCESS

Testing and Debugging verifies the correct

behaviour of any model and this needs to be done in every stage of the development of this device.
(Univeristy of Minnesota, n.d)

As EDR is going to use technology and software systems,

repeated testing and debugging of the device is necessary, to ensure that the device acts only in ways we want it to and doesnt fail under any cases. For example, if it fails to remind a customer about a particular food on a particular date, then the food goes wasted and this defeats the whole purpose of the device. BUSINESS PROCESS 2:

3.9 Functionalities
3.9.1. MARKET RESEARCH PROCESS

Conduct a market survery to identify target customers and their needs. Analyze the market survery to optimize the product and make it desirable to customers.

3.9.2. TESTING AND DEBUGGIN G PROCESS

Test the product under various situations to ensure that only the correct behaviour is seen everytime. Debug the software to optimize the functionality and adaptable ways to update the software in the future.

3.10 Systems
3.10.1. MARKET SURVEYING SYSTEM

This system deals with all the market research and

customer surveys. This would help the business to identify customers anticipations from this product. This identifies where customers need help to do their part in reducing food waste, so that the business can provide a device that treats specific problems that customers are having.
3.10.2. INFORMATION PROCESSING SYSTEM The

data from the market survery is going to be

unorganized. Information Processing System analyzes and interprets this data to see the trends and associations in the data, so the business can know the differences between their customers. This will allow the business in producing different variants of the device to suit all of their customers and make their life easy.
3.10.3. SOFTWARE TESTING SYSTEM -

If the software malfuntions, it leaves unsatisfied

customers. The vision for this business is to make lives easier by doing minimizing work, but if the device doesnt work properly, that defeats the purpose of the product an d the vision. Testing the product under all circumstances will ensure that the product is reliable at all time. This will keep customers lives easy as intended and reduce food waste as well.

3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Market Research Analysis Process 2. Testing and Debugging Process

Functionalities 1. Conduct a market survery. 2. Analyze the market survery. 1. Test product under various situations. 2. Fixing bugs for optimization.

Specific Information System(s) Market Surverying System Informatin Processing System Software Testing System

Broad Information System(s) Decision Support System

Research and Development

Transaction processing System

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CONCLUSION

EDR targets a one particular cause of food waste, food waste caused by forgetting about the food. This targets both customers needs and the global problem of food waste, dont have to try to remember what they bought or dig through our refrigirators to find out what food is left. EDR does all this for them, and eventually minimizes food waste.
REFERENCES

1. United Nations Environment Program. (2009) Food Waste Facts. http://www.unep.org/wed/quickfacts/ 2. Auckland City Council (2014) Ways to reduce your waste http://www.aucklandcouncil.govt.nz/EN/environmentwaste/rubbishrecycling/Pages /WasteAndYourOptions.aspx 3. The Times 100 (n.d) Usign Market Research to Decision Making http://businesscasestudies.co.uk/jd-sports/using-market-research-to-supportdecision-making/introduction.html#axzz2sgev0794 4. GPC Electronics (2008) Outsourcing to China without having to go there http://www.gpc.com.au/news/china-without-going-there 5. Kotler, Philip and Armstrong. (2007) Gary Principles of Marketing Pearson, Prentice Hall, New Jersey 6. UNEP, Ruth Zugman Do Coutto, (2012), Waste minimiation work plan for 2012-2013 7. Climate Change, agriculture and food security (CCAFS). (2013). Why markets need to be part of a climate-smart solution. Retrieved from http://ccafs.cgiar.org 8. US environmental protection agency. (2013). Reducing food waste. Retrieved from http://www.epa.gov/foodrecovery/ 9. WasteMINZ. (2013). report on food waste in nz 2013. retrieved from http://www.wasteminz.org.nz/ 10. Zerowaste NZ. (2014). Environmental risks and harm to human health. Retrieved from http://www.zerowaste.co.nz/ 11. Bel. (2013). Reducing food waste. Retrieved from http://www.smilesfortheplanet.com/

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12. Dr Karli Verghese, Dr Helen Lewis, Simon Lockrey, Dr Helen Williams (2013) The role of packaging in minimising food waste in the supply chain of the future

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