Name Su Arn Kwek NetID skwe265 Group Number: 288 Website Link: http://infosys1102014s1group288.blogspot.co.nz/p/d1.html Tutorial Details Tutor: Day: Time: Kirsten van Dorp Thursday 10am Time Spent on Assignment: 32 hours Word Count: 1,647
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2 CHILD DRIVEWAY ACCIDENTS INTRODUCTION Each year, at least five children die as a result of being hit by cars in driveways, and a child is hospitalised with injuries each week. (NZ Herald, 2014) This is a serious problem occuring all over the world thats still not been addressed with an effective solution. Drivers are simply unware of objects that behind their car when backing out of a driveway. Current solutions to this problem, such as reversing cameras, have proven to still be fallible. I believe that driveway pressure pads are the key to solving this problem. 3. BUSINESS SECTION 3.1 Vision To create a safe envrionment, and protect children by preventing unecessary accidents within their own driveways with technology that is reliable and effective. 3.2 Industry Analysis: Child Driveway Safety Industry
Force: High/Low: Justification: Buyer power: High Customers can purchase the many other driveway safety products from the countless other companies selling them. These include: reversing cameras, sensors, safety fences, and convex mirrors all of which would be more affordable than my product. (SafeKids, 2011) Supplier power: Low Most companies in this industry are selling products that are simple and can be found in many stores. Products like fences
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3 and mirrors can be obtained from industrial stores like Mitre 10. Reversing cameras can be purchased at electronic stores like Dick Smith, and car retailers such as Toyota. These systems are not expensive, costing somewhere between $180 and $700. (NZ Herald, 2013) Threat of new entrants: High Its not difficult for competitors to enter the driveway safety industry market as there are low barriers to entry. For example, if a potential business wanted to focus on selling custom fit fences around driveways, startup and legal costs would be very low as there are no specific entry requirements to become a building contractor. (Carrers NZ, 2014) Threat of substitutes: Low The only other way to ensure driveway safety, other than purchasing products specifically targeted for the problem, would be perfoming head checks whilst operating the vehicle. The driver must be fully aware of his/her surroundings at all times, and teach children to never play around vehicles. (National Highway Traffic Safety Administration, 2014) Rivalry among existing competitors: Low Many companies already sell products that could help child driveway safety, but dont specifically target the problem itself. For example, reversing cameras and sensors in vehicles were designed for assistance in parking and therefore, some researchers claim that they might even contribute to a reduced sense of risk among drivers, making them more complacent. My product would be the only one of its kind in this industry. (Department of Infrastructure and Transport, 2012)
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4 Overall, this industry looks relatively attractive. As threat of substitues is low, and there are not many companies targetting this specific issue of driveway safety, my product would be in high demand. 3.3 Customers and Thei r Needs Customers would be anyone who owns a property which has a driveway, drives a vehicle on it, and has children living in their household. Their needs would be having quick and reliable knowledge of a child on their driveway, at any time, whilst in their vehicle. This is critical as accidents occur because drivers didnt know there was a child behind their vehicle whilst reversing out. For example, often children involved in these accidents had wanted one last chance to see their parents before they leave running up behind the vehicle at the worst possible moment. CNN news (2005) calls this the bye-bye syndrome. The reality is children do unexpected things and the adult driving a reversing car doesnt always notice in time. (NZ Herald, 2010) 3.4 The Product and Service Custom made and fit pressure pads will be installed all along the surface of the customers driveway. These will send a wireless signal to a portable receiver if it detects something between 2 to 100kg on the driveway. The receiver will then send out a loud warning message to the driver, alerting him/her instantaneously if an object steps on the pressure pads. This means that even in the midst of backing out, the driver will be alerted if a new object steps anywhere onto the driveway. The driver will then be able to stop the vehicle and avoid a tragic accident.
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5 3.5 Suppliers and Partners Suppliers 1. Manufacturers of pressure pad systems Companies which design, make, and test pressure pad systems would be a key supplier for my product. An example company is United Security Products. They are specialists in making professional security products, including robust, rugged, ready (as advertised on their website) pressure mat systems that are waterproof, wireless, and designed for use in high traffic areas .
2. Freight companies If customers who decide to purchase my product are from overseas, my company would be required to transport the pressure pad systems to them. Therefore, a key supplier would be shipping companies that can transport my product internationally e.g. Cosco, that transports goods globally. Partners 1. Government The government has responsibility for public health and safety, as well as community well-being and development. My company could work with the government to promote the use of my product in homes in an effort to make a safer envrionment for children. They could provide subsidies to homes with children under the age of 7, and sales of my product would increase.
2. SafeKids NZ SafeKids Aotearoas vision is that children in New Zealand are free to enjoy their childhood without being adversely affected by unintentional injuries. My company could work with SafeKids in promoting driveway safety, ensuring people have the knowledge of safe driveway practices. SafeKids could then promote my product during their awareness campaigns as a must for all child residing homes.
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6 3.6 Strategy: Focused High Cost Cost Strategy: High Cost Due to its intricacy, pressure pads are expensive. A sheet the area of 61x76cm is priced at $127 on Amazon (2014). Because driveways are quite large, a large area of pressure pads would be required to cover the entire surface, and therefore, each driveway project would be very costly. Competitive Scope: Narrow Market As described earlier, the customers of my product would likely be those who own their own property, and have children living in their household. Upon analysis, this is actually a small segment of the New Zealand population. All of New Zealands regions are projected to have more couple-without-children families and one-person households.a continued decline in average household size is projected for all regions. (Statistics NZ, 2006) The overall strategy is therefore: Focused High Cost 3.7 Value Chain Activity: Market and sell the product or service The most important value chain acitivity for my company would be marketing and selling the product as this would raise awareness within households of these preventable tragedies. Severe marketing of my product would alert drivers of the fact that one can never be too careful when operating a vehicle in areas known to be populated with children. This thus aligns with my companys vision, hopefully preventing uncessary accidents, and saving the lives of children.
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7 3.8 Business Processes 3.8.1. ADVERTISING CAMPAI GN PROCESS As my key value chain activity is marketing and selling the product, its critical that advertisments are in place to promote the product. Consumers must be aware that my product is available on the market, and of its importance. Start Determine customer segment company wants to advertise to Determine what form of advertisement is best e.g. TV, papers, Radio Contact relevant advertising agency Obtain a quote for advertising campaign Are there sufficient funds to set up the advertising campaign? Set up advertising campaign Receive invoice for advertising campaign Send payment End Can a loan be taken out to finance the advertising campaign? Take out loan End Yes No No Yes Market research analysis system
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$ $ Marketing department Accounting department MICROSOFT CORPORATION Budgeting management system
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8 3.8.2. PRODUCT ORDERI NG PROCESS As each driveway is different, my company must gather as much information from the customer as possible to ensure effective implementation of my product, and an agreeable price is established before their order is placed, and the product sold. Start Customer contacts company about product Customer requires quote Can the customer provide their driveway specifications? Calculate total number of pressure pads required for the job Calculate the estimated number of labour hours required for job Generate a quote based on calculations Does customer still want to buy the product? Communicate quote to customer Place order End Go to customer, measure driveway area, and obtain specifications Yes No Yes Customer Service Department Customer Profile Management System No Budgeting Management System Finance Department
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9 3.9 Functionalities 3.9.1. ADVERTISING CAMPAI GN PROCESS Identify target market to advertise to Check there is sufficient cash available to initiate an advertising campaign 3.9.2. PRODUCT ORDERING PROCESS Calculate the cost of the potential project Communicate information with the customer 3.10 Systems
3.10. 1. MARKET RESEARCH REGION ANALYSI S SYSTEM To maximise sales, it is important that my company does research on which region and type of demographic does child driveway accidents occur most in. My company would then target this selected segment of the market and heavily advertise the product to them. 3.10. 2. BUDGET MANAGEMENT SYSTEM To check whether there is sufficient cash/funds available to initiate the advertising campain, the accounting department would have to look through the financial statements and perform a budgeting analysis. If there is insufficient cash, a loan may have to be taken out to finance it. To do this, they would require the use of the budget management system. 3.10. 3. CUSTOMER PROFI LE MANAGEMENT SYSTEM - Driveway designs vary. As a result, one customers project willl be unique from another. In order to provide customers with the optimal design of my product to suit their home, my company would have to communicate with, and profile each customer separately - recording their details in the customer profile management system.
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10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market and sell the product 1. Advertising Campaign Process 1. Identify target market to advertise to
2. Check there is sufficicent cash available to initiate an advertising campaign Market research region analysis system
Budget management system
Decision Support System (DSS)
Trasaction Processing System (TPS)
1. Product Ordering Process 1. Calculate the cost of the potential project
2. Communicate information with the customer Accounting system
Customer profile management system Transaction Processing System (TPS)
Customer Relationship Management System (CRM)
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11 CONCLUSION Too many cases over the past years have been related to driveway chlid deaths. This could be reduced with the implementation of my driveway pressure pad system. The overall attractiveness of the industry looks good for my company, which will operate with a focused high cost strategy. Ultimately, with the simple yet effective use of information technology that sends information to a wireless receiver, many lives could be saved, and a safer envrionment would be created for children in their own homes. REFERENCES
1. Morton, F. (2011, June 26). Deathly driveways. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10734624
2. New Zealand Press Association. (2010, July 29). Plea for car cameras to reduce driveway deaths. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10661901
3. Statistis New Zealand. (2006). Subnatoinal family and house projections: 2006(base)- 2031 update. Retrieved from http://www.stats.govt.nz/browse_for_stats/people_and_communities/Families/Sub nationalFamilyandHouseholdProjections_HOTP06-31update.aspx
4. SafeKids Aotearoa. (2011). Using products to prevent driveway run over incidnets: some of the safety products available. Retrieved from http://www.safekids.org.nz/Downloads/Safekids%20Position%20Papers/AA%20Info %20Sheet%20Driveway%20productsFINAL27April2011.pdf
5. National Highway Traffic Safety Administration. (2014). Retrieved from http://www.nhtsa.gov/Driving+Safety/One+Child's+Death+is+One+Too+Many:+Prev enting+Backovers+in+America's+Driveways
6. APNZ. (2013, September 10). More calls for reversing cameras on all cars. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11122451
7. Careers NZ. (2014). Building contractor. Retrieved from http://www.careers.govt.nz/jobs/construction/building-contractor/how-to-enter- the-job
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12 8. Australian Government Department of Infrastructure and Transport. (2001). Retrieved from http://www.bitre.gov.au/publications/2012/files/is_043a.pdf
9. Amazon. (2014). Cross point wireless pressure sensor pads for bed/floor, 24x30 in. Retrieved from http://www.amazon.com/Cross-Point-Wireless-Pressure- Sensor/dp/B007IF0SBG/ref=pd_sim_sbs_p_26?ie=UTF8&refRID=1Z791GP33HHP2N1 H03TZ
10. Hunter, G. (2005, November 7). SUV backover deaths: what can be done? CNN News. Retrieved from http://edition.cnn.com/2005/AUTOS/tipsandadvice/11/03/backover/