1

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Aaron Xu
NetID axu656
Group Number: 115
Website Link: http://infosys1102014ssgroup115.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nichool Tuesday 11am
Time Spent on
Assignment:
20 hours Word Count: 1495 words

2


2
THE BURGEONING 'SMOG'
INTRODUCTION
In China and some other part of Asia, Smog is always a very big and serious problem to
these regions. The polluted air has already harshly affected peoples daily and personal
health. We came out with a sophisticated air filter system to help the householders and
firms who desire their employees and family members breathe among the fresh air to
protect them against breathing in the harmful Inhalable particles in the polluted air.
Therefore reduce the risk of respiratory system diseases.
3. BUSINESS SECTION
3.1 Vision
Lower people' s risk of respiratory system diseases by proiving them a comfortable, healthy
breathing evironment.
3.2 Industry Analysis: Air Filter industry
Industry: Air Filter Industry which provide air filtation lower the Inhalable particles level in
the air.
Force: High/Low: Justification:
Buyer power: High The Buyer power of this industry is high as the
consumers have many options to choose. There
are a lot of different type of air filting method for
the customers desire to buy whether cheap or
brands.
Supplier power: Low The supplier power is low because there are
plenty amount of firms which can produce the
raw material of air filter systems. The businesses
have many choices of supplier. Therefore the

3


3
supplier power of this industry is low. The
business can purchase the required inventory
with a fair price than a condition of high supplier
power.
Threat of new entrants: Low To create a set of perfect air filter system requires
a very high level of technology support and a
huge amount of investment to build factory or
purchase machines. So it is very hard to 'set foot'
in this industry.
Threat of substitutes: Low The threat of subsitutes would be high if there
are lots of products from different indutry that
have same function as air filter, but is low as
there are not many products like that. Obviously
there are not many products that can filter air like
an air filter.
Rivalry among existing
competitors:
High The rivalry among exising competitors is high as
the competition in this industry is very fierce.
Many different type of air filter is in the market
whether cheap or brand, home use or a central
air-filtration for a business.
Overall attractiveness of the industry: Overall the air filter industry is a pretty
attractiveness industry as the smog is starting to be come a very serious air polltion problem
to many developing countries. The market of this industry is very potential as there are a lot
of new bulit factories which needs to install an air fliter system. Also people we live in a
developing might desire a healthy breathing evironment in their home, so the households is
another very potential customers to the industry. Therefore the air filter industry is a very
attractiveness industry to a business.

4


4
3.3 Customers and Thei r Needs
Our main target customers are the owners or the manager of business and some wealthy
households. All the new bulit factories or the factories that don't have a air filter system
need one to reduce the harmful ingredient in its emissions whether it is for demand of law
or personal desire. Now lots of people who live in a polluted contry wish to have a healthy
environment for their children and family. Therefore many households started to install a air
filter system in their home.
3.4 The Product and Service
Our product is a sophisticated air filter system that can be install in the factories or power
plants that emissions huge amount of pollutant into air every day. The main function of our
product is to reduce the harmful ingredient in the emission. When the emissions flow
though the air filtration system, the harmful ingredient would be intercept by the system.
Therefore the emission finally flow out would be less polluted or harmful to people and
environment which reduce the level of pollution.
3.5 Suppliers and Partners
Our suppliers would be the businesses who produces metal, plastic, chemical agent which
are the raw material of our product.
Our partners would be the processing factories that can help us make the raw material like
metal and plastic into the shape we want. Another supplier would be the logistic companies
who provide us delivery service in order to send the product to the location of our customer.
3.6 Strategy: Focused High Cost
Our strategu is Focuse High Cost as the cost of purchasing our product is very high. To install
an air filteration system in a big factory or power plant would cost them million of dollars.
Also because we only focus on reduce pollutant of large size factory and power plants, so
our competitive scope is very narrow.
The overall strategy is therefore Focused High Cost.

5


5
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement
Procurement is the most important value chain to our business as we are a business that
manufacturing goods and selling it to our customers. The air filteration system is a very
complicated system that require good quality of raw material to make its maximum its
function, so it can meet the requirement and expectation of the customers. By purchasing
and using the high quality raw material though precurement, we can produce the best air
filteration system to our customers. By meeting customers' expectation, our reputation will
increase therefore the popularity and profitability will increase.
3.8 Business Processes
3.8.1. PRODUCT DELIVERYING PROCESS- Delivery the product is a very important process as it
is one of the step to finish the transaction. We need to send the 'not assembled' parts of the
air filteraton system to the factory or power plants of the customer and install the system
for them to complete this process and meet the requirement of our customers.

Business Process Model 1: Product Delivering Process

6


6


7


7
3.8.2. RAW-MATERIAL SHAPING PROCESS To be able manufacture an air filter system, we
need to make the raw materials into the rigt shape by our partner, the processing firm. It is
a important process for the business as this is necessary step in order to produce air filter
system.

Business Model 2: Raw Material Shaping Process

8


8


9


9
3.9 Functionalities
3.9.1. PRODUCT DELIVERYING PROCESS
Delivery products to the customers
Send payment to the logistic company
3.9.2. RAW MATERI AL SHAPING PROCESS
Make the raw material to the required shape
Quality Check for the shaped raw material
3.10 Systems

3.10. 1. INVENTORY MANAGING SYSTEM - The inventory managing system will record all the
requisition for either purchasing or selling inventories and calculate a ending balance of
holding inventory at the end of a financial period. It is very important as we need the
information of what, when, and how much of the inventory was sold in order to prepare all
the financial statement and the end of the year to help us analyse the performance of this
year comparing to the past years or the competitors.
3.10. 2. BUSINESS ACCOUNTING SYSTEM - The accounting system records all the transaction
such as cost of good sold, revenue, loans etc. Everything that relate to the finance of the
business will be record and format into financial statement for the bank, managers,
shareholders of the business. For helping the business manager make a decision and give a
brief view to the bank and shareholders whether to invest more money. Therefore it is one
of the most important system to our business.
3.10. 3. DATABASE MANAGING SYSTEM - The database managing system supports our
business to store, organise and classify all the information recorded in the past and the
information that is going to be recored in future. It is the most important to us as we need a
database that can store and organise all the information that was generated or is generating
everyday, so we are able to find and use these informations to help us making comparsion
and analysis of internal or external.

10


10
3.11. Summary Table: Value Chain to Systems

Value Chain Activity Processes Functionalities Specific Information
System(s)
Broad Information System(s)

Procurement
1. Products
delivering
system
1. Delivery products to the customers.

2. Send payment to the logistic company.
Inventory Managing system

Business Accounting system
Transactopm Processing
System

Decision Supporting system
2. Raw
Material
Shaping
system
1. Make the raw material to the required
shape.

2. Quality Check for the shaped raw
material.
Inventory Managing system

Business Accounting system
Transactopm Processing
System

Decision Supporting system

11

11
CONCLUSION
In concluson the goal and vision of our business is to Lower people' s risk of respiratory
system diseases by proiving them a comfortable, healthy breathing evironment. We provide
and install air filteration system to the large factory and powerplant that emission harmful
ingredient. Information system took a very important role though our business operation. It
help us delivery value by organsing date into information, furthermore into knowledge, then
wisdom. By helping us make strategic decision, we can capiture and create value to both the
business, customers and the society.

REFERENCES

1. Market Search.com. (2014, May, 15). Air Purification Equipment (UK) - Industry
Report. Retrieved from The Market Search website:
http://www.marketresearch.com/Plimsoll-Publishing-Ltd-v3468/Air-Purification-
Equipment-UK-8150784/

2. Laurie, B (2013, January). Beijing Fog Prompts State Media to Shift Tone. The Wall
Street Journal. Retrieved from
http://online.wsj.com/news/articles/SB100014241278873245957045782416405202
26304

3. Sameera, J. (2014, February). Top 10 Major Contributors of Air Pollution. List Dose.
Retrieved from http://listdose.com/top-10-major-contributors-of-air-pollution/

4. Vergin, J. (2014, March). Top 10 worst cities for smog. DE.Retrieved from
http://www.dw.de/top-10-worst-cities-for-smog/g-17469135

5. Market Search.com. (2013, May, 19). The 2013-2018 Outlook for Air Filters and
Filtration Equipment in Greater China. Retrieved from The Market Search website:
http://www.marketresearch.com/Icon-Group-International-Inc-v609/Outlook-Air-
Filters-Filtration-Equipment-7743209/