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INFOSYS.110 BUSINESS
SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
2014

Name Monique Scoon
NetID msco712
Group Number: 479
Website Link: http://infosys1102014s1group479.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Khushbu Tilvawala Thursday 12pm
Time Spent on
Assignment:
14 hours Word Count: 1530

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TRASH TO TREASURE
INTRODUCTION
Trash to Treasure addresses the worldwide problem that people are not composting due to
the lack of incentive to do so. Food scraps add to already overflowing landfills and break
down anaerobically, producing methane; a greenhouse gas that is 21 times more potent
than carbon dioxide. Our solution is to provide public compost bins that will be run by local
food or organic businesses. These bins collect and weigh compost, printing vouchers for the
local businesses based on weight. The bins can detect when they are getting full and call out
to be picked up and replaced for the scraps to be composted.
3. BUSINESS SECTION
3.1 Vision
Providing a world class, simple to use recycling system to encourage a healthy lifestyle that
saves both your pocket and the planet.
3.2 Industry Analysis: Electronic Compost Bin Industry
Industry: Electronic Compost Bin Industry.
Force: High/Low: Justification:
Buyer power: High Although there are no other compost bins that
work as ours do, there are many types of
composting options organic businesses can take
such as worm farms, compost bins and bokashi
bins meaning buyers have many options (Luxon
and Warth, 2009).
Supplier power: Low There are many different firms that provide the
services that we need such as composters,

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rubbish pick up trucks and bin manufacturers so
therefore supplier power is low. For example in
the US there is a directory of 264 composters
who take food scraps to be composted.
(Krossovitch, Katsaros, Goldstein, 2014)
Threat of new entrants: High The threat of new entrants is high as there are
few barriers to entry, bins are not expensive to
manufacture and this market is a hot market
that will pick up in the future according to Bregar
(2010).
Threat of substitutes: High There are many substitutes to electronic compost
bins such as worm farms and many New Zealand
Councils are turning to municipal organic waste
collection systems and composting operations,
so the threat of substitutes is high. (EnviroWaste,
2014).
Rivalry among existing
competitors:
Low As there are no other firms in this specific
industry, there is no rivalry between existing
competitors. Even among other compst bin
providers there are few enough to not have huge
rivalry.
Overall attractiveness of the industry: Overall, the electronic compost bin industry is not
highly attractive due to the high buyer power and strong threat of substitutes. Yet the lack
of competition for innovative compost products and interest in the market as consumers
move towards environmentally friendly options means profits can still be made.


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3.3 Customers and Thei r Needs
Our customers are local organic food businesses such as Commonsense Organics (2013)
who are committed to organically grown food, environmentally friendly products, using
sustainable materials wherever possible, reducing energy use and increasing efficiency,
reducing and recycling waste. These businesses are looking for solutions to fulfil the
obligations of being an organic company in a way that will not cost them a lot of money and
will promote their cause of being sustainable in many ways, not just by shopping with them.
They also wish to increase their market share and compete with non-organic businesses by
gaining a competitive advantage to differentiate them from other food stores. We are also
targeting market gardeners who have similar objectives but on a smaller scale.
3.4 The Product and Service
Our product will fulfil these needs as the bins that we supply to the companies will provide
them with an opportunity to collect food scraps to compost which can be used as an organic
fertiliser for their suppliers to grow their products. This reduces and recycles waste, is
environmentally friendly and a sustainable material. Yet it also encourages their
customers to support the sustainable lifestyle organic businesses try to promote in their
everyday life as they will compost more, which helps play a part in the reduction of
greenhouse emissions. It also promotes their business as being a sustainable business that is
acting on their claims and as it provides vouchers to users of the bins for these businesses,
they should see a rise in sales and customers to their business.
3.5 Suppliers and Partners
Our first supplier will be the manufacturers of our compost bins and electronic weighing
devices, which is the primary resource our business will need. Another supplier will be a
telecommunication company to allow our bins to communicate with the business wirelessly
to inform us when the bins are full.

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Our business will form a partnership with a composting business that makes the food scraps
that we will deliver to them into compost. They will in turn provide us with compost to
deliver to the companies that are part of the scheme making the partnership profitable for
both. Another partnership will be formed with a rubbish collection company that we will
inform when the bins need collecting and they will have the resources to collect the waste
and deliver to the composters, thus utilising the strength of the other businesses for mutual
benefit.
3.6 Strategy: Broad Market Differentiati on
Trash to treasure aims to provide a differntiated service that is high cost, which means that
customers get the IT component of the bin that creates value for them.
Our company targets all businesses in the organic market from individual market gardeners
to chain stores such as Commonsense Organics and is therfore in the broad market
category.
The overall strategy is therefore Broad Market Differentiation.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
Our business outsorces to a lot of suppliers and partners who we work with to make and
deliver the product. It is therefore important to find the best suppliers who can provide us
with quality goods so it is an attractive option to all organic businesses. The design of the bin
must be simple to use and also be environmentally friendly in its manufacturing.
3.8 Business Processes
3.8.1. SUPPLIER SELECTION PROCESS This process is highly important to the organisation as
we have suppliers to do all the production, delivery and maintenance of our product.
Therefore it is of the utmost importance that we identify, consider and select the supplier
who is going to provide the good or service that will best meet our needs. However their
performance will need to be monitored to ensure a high standard of performance is
mainained and that no other supplier could be delivering the same value for less.

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BUSINES
Start
Conduct market
research
Create a criteria for
suppliers
Score suppliers
against criteria
Create a shortlist of
potential suppliers
Does not meet standards
Choose supplier to
use
End
Meets standards
Supplier Performance
Management system
Identify potential
suppliers
Evaluate Decision
Management

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S PROCESS 1 MODEL
3.8.2. LOGISTI CS MANAGEMENT PROCESS This process is of high importance as it prevents
us ordering superflous stock which is detrimental to the company and tracks it so we can
monitor the flow of goods from manufacturing of bins to collections of scraps. Therefore we
can monitor the efficiency of this process to ensure costs are down as we are working as
productively as possible.
PROCESS 2 MODEL


Start
End
Track Inventory
Low stock
Automatically
create purchase
order
Make payment
Track Delivery of
products
Receive products
Yes
No
Inventory Management System
Operations Management

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3.9 Functionalities
3.9.1. SUPPLIER EVALUATION PROCESS
Conduct goal seeking and what-if analysis to provide information about optimal
supplier
Digital dashboard showing real time details of KPIs
3.9. 2. LOGISTI CS MANAGEMENT PROCESS
Automatically order stock when low
Track delivery of goods
3.10 Systems

3.10. 1. SUPPLIER EVALUATION SYSTEM This system was chosen as it is of the utmost
importance that we are making decisions for suppliers based on facts about which suppliers
are truly the best. This will enable us to ensure our composting system is world class and
are that the bins are maufactured to a high standard, guaranteeing they are simple and
reliable for customers to use.
3.10. 2. SUPPLIER PERFORMANCE MANAGEMENT SYSTEM This system will enable us to
constantly evaluate the performance of our suppliers so any deviations from the high
standard we require can be dealt with. If prices are becoming too high we would be aware
so that our service can continue to be free for the public to use so they are always
encouraged to use the system promoting a healthy and green lifestyle.
3.10. 3. INVENTORY MANAGEMENT SYSTEM An inventory management system keeps
records of stock of bins and will automatically order a bin from the supplier when stocks are
low and a bin is needed. This system is important as it automates the ordering process
which means that bins are received efficiently.

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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)

Procurement
1. Supplier
Evaluation
Process
1. Conduct goal seeking and what-if analysis
to provide information about optimal
supplier

2. Digital Dashboard showing real time
details of KPIs
Supplier Evaluation system

Supplier Performance
Management system
Decision Support System


Decision Support System
2. Logistics
Management
Process
1. Automatically order stock when low

2. Track delivery of goods
Inventory Management
system

Transportation Planning
system
Transaction processing
system

Transaction processing
Management

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CONCLUSION
Using information systems in Trash to Treasure will create compatitve advatages to help us
succeed in the industry. With the help of IT we will be able to identify the best suppliers to
make our environmentally friendly bins that will encourage many to compost who were not
previously, helping the fight against global warming. As we want to keep our system free to
use to ensure everyone uses it, we will monitor our logistics to ensure their efficiency.
REFERENCES

1. Luxon, M., Warth, W. (2009). Composting. Retrieved from
http://www.rubbishfree.co.nz/information.php/info_id/14

2. Krossovitch Katsaros, S., Goldstein, N., (2014) Found: Composters Taking Food
Scraps. BioCycle, 55(1) 24-26. Retrieved from http://www.biocycle.net/

3. EnviroWaste. (2014) Recovery Facilities Composting. Retrieved from
http://www.envirowaste.co.nz/index.php?page=recovery-facilities-composting

4. Bregar, B. (2010). Trend-chasing Sterling taps surging market. Plastics News, 22(23),
23-23. Retrieved from http://www.plasticsnews.com/

5. Commonsense Organics. (2013) Sustainable Business. Retrieved from
http://www.commonsenseorganics.co.nz/resources/sustainable-business