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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Jia Hua Timothy Qiu
NetID Jqiu515
Group Number: 408
Website Link: http://infosys1102014s1group408.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Wednesday 11am
Time Spent on
Assignment:
8 hours Word Count: 1613

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THE WELFARE CARD
INTRODUCTION
With technology rapidly devloping, many of the worlds problems can be solved using
technology. The problem identified was the amount of welfare users who were abusing
their income, ultimately having detrimental effects to the New Zealand society. The solution
was creating a welfare card which could control how welfare users spent income by
restricting acess to demerit goods.
3. BUSINESS SECTION
3.1 Vision
To provide welfare users with an effective tool which restricts the purchases of demerit
goods to help them lead a better life, ultimately shaping New Zealand to become a well
rounded country.
3.2 Industry Analysis: Social Welfare Support Industry
Industry: Social Welfare Support Industry. This industry provides services to people who are
in need of finanicial support.
Force: High/Low: Justification:
Buyer power: Low There are many welfare programmes, buyers
must apply and qualify for these specific
welfare programmes thus buyers have little
power. There are 14 different social welfare
support programmes provided (NZ
Government, 2014)
Supplier power: High Supplier power is high as the money
distributed from welfare support

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programmes are collected from tax-payers
money therefore only a set number of people
can be on a welfare support programme
depending on the budget each year. $21.9bn
is proejcted to be spent on social welfare in
2014/2015 (Craig Simpson, 2014)
Threat of new entrants: Low Threat of new entrants is low as there arent
many new social welfare programmes
implemented in NZ. This year there were
15000 fewer people on benefits now than
there were 12 months ago (NZ Treasury,
2014). With less people needing a social
welfare programme, there will be a smaller
demand for new Social Welfare Support firms.
Threat of substitutes: Low There are no substitutes to social welfare
programmes therefore threat of substitues is
low.
Rivalry among existing
competitors:
Low There is low rivalry in this industry as all the
existing social welfare support firms work with
the government in order to achieve a goal, not
necessarily make profits.
Overall attractiveness of the industry: The social welfare support industry is very attractive
as all the forces favor for an attractive industry. Even though the industry is attractive,
profits will not be sustainable. As less people require a welfare programme over time
(implementing the welfare card will decrease the amount of people on welfare income), the
demand for welfare cards will fall therefore profits could be redundant very quickly.

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3.3 Customers and Thei r Needs
Our customers are welfare users who abuse their welfare income by purchasing demerit
goods. Our product will provide a way to only spend welfare income on merit goods. This
eliminates purchases of demerit goods thus allowing investment of money into positive
aspects of life. In 2013 there were a total of 134,225 people on Jobseeker Support and of
those, 57,544 had been on it for more than a year (Ministry of Social Development, 2013).
By introducing the welfare card, we hope that both these numbers will decrease.
3.4 The Product and Service
The product is a card containing a microchip which will have functionalities including; the
ability to reject purchases of demerit goods, the ability to purchase only merit goods and
the ability to reject cash deposits. With demerit goods removed, it allows welfare users to
focus on beneficial aspects of their life.
3.5 Suppliers and Partners
The first supplier would be a Microchip specialist. They would supply microchips which are
small and capable of performing the above functionalities of the welfare card. Organisations
such as Apple and Samsung could supply small yet effective microchips. The second supplier
would be an IT specialist. They would create the database of goods which can/cant be
purchased. This data could be stored on a cloud storage system where it can be updated at
any time.
The first partner would be the government. More specifically the Ministry of Social
Development, this would allow us to incorporate the welfare card to all social welfare
programmes thus benefiting more than one social welfare programme. eg. Student
allowances- money can only be spent on books etc. The second partner would be banks. By
partnering with banks, the welfare cards technology could be implemented into
credit/EFTPOS cards allowing for greater flexibility such as online purchasing and the added
convinience of carrying around one card.


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3.6 Strategy: Focused Low Cost
Our product is targeted towards a niche market. Only users of welfare income will use the
welfare card. As of March 2014 there were 295,320 people receiving main benefits.
(Ministry of Social Development, 2014) This is roughly 7-8% of NZs population.
Our product aims to be cheap to produce as welfare users receive the money and dont pay
for the card therefore it must be cheap enough for the government/welfare support firms
to purchase.
The overall strategy is therefore Focused Low Cost.
3.7 Value Chain Activity: Making the product or service
The most important value chain activity for this business is Making the product or service.
It is vital that we provide a working product to our customers. We ensure that there are no
errors in making the welfare card. Small errors lead to negative consequences such as
allowing purchases of demerit goods. The good must be made while minimizing errors and
costs so our product is functional with our vision and strategy.

3.8 Business Processes
3.8.1. MANUFCATURING PROCESS The process is triggered when customer orders are
recieved, our manufcaturing management system records this order and information is sent
to the warehouse and manufacturer. The raw materials are manufactured into the welfare
card. From here quality control testing must be undergone to ensure that our product
satisfies the functionalities. If the welfare card passes our quality control tests, they are
packaged and delivered. If not, the good is taken for further quality control to assess for
problems, it is then attempted to be fixed. This business process is important as we cannot
deliver faulty welfare cards where demerit goods can be purchased.

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Start
End
Customer order
received
Raw materials
received from
warehouse
Good
manufactured
Quality control
testing undergone
Is the good ready for
use
Good taken to
quality control
No
Good is assessed
for problems
Is the problem able to
be fixed
Continued
research and
development to
improve good
No
Problem is fixed
and good is usable
Yes
Good is packaged
and ready to be
delivered
Yes
Good is delivered
to customer
Invoice sent to
customer
Manufacturing
Manufacturing
Manufacturing management system
Manufacturing management system

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3.8.2. RAW MATERI AL MANAGEMENT PRCOESS The process is triggered when we receive
our customer orders, the order is sent to the manufacturer where stock levels are checked,
if enough raw materials are in stock they are shipped off to be manufactured. If not, we
notify our customers of back order giving them an estimated time for the order. We then
record the number of stock needed in our raw material ordering system where it checks for
funds, places the order and sends payments when necessary.
This process ensures that we are producing welfare cards with microchips that allow for the
functionalities. Without this vital process, we would be providing welfare users with faulty
cards thus allowing for demerit purchases. The essence of this process is what makes our
welfare card so valuable, the technology in the microchips is what will add value therefore
making the product with the correct raw materials is important.



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START
END
Are there enough raw
materials in stock
Customer order
received
Order sent to
manufacturer
Place order for raw
materials required
Receive raw
materials in
warehouse
Raw materials
shipped to
manufacturer from
warehouse
Yes
Record amount of
raw materials sent
out of warehouse
Receive invoice for
raw materials
Record amount of
raw materials in
stock in warehouse
Warehouse
Warehouse
Raw Material Ordering System
Raw Material Ordering System
Raw materials stock
level checked
Check if funds are
available to
purchase raw
materials
Notify customer of
back order
No
Send payment for
raw materials

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3.9 Functionalities
3.9.1. MANFUCATURING PROCESS
1. ENSURES THE PRODUCT FUNCTIONS PROPERLY
2. DETECTS ANY FAULTY PRODUCTS MANUFCATURED
3.9.2. RAW MATERI AL ORDERING PROCESS
1. ENSURES STOCK LEVELS ARE SUFFI CIENT FOR PRODUCTION
2. RECORDS ALL RAW MATERIALS SENT IN AND OUT OF WAREHOUSE


3.10 Systems

3.10. 1. MANFUCATURING MANAGEMENT SYSTEM Both processes are supported by this
system as it incorporates the functionalities of ensuring there are enough raw materials in
stock to start production. Information is sent to manufacturers and warehouses, it allows
both departments to collaborate so they can start production. This links to our business
vision as we provide a simple yet effective tool for welfare users to lead a better life through
smart spending.
3.10. 2. RAW MATERIAL ORDERING SYSTEM This system allows for the automation of
transactions in the raw material ordering process. The system automatically creates, reads,
updates and deletes data so we know how many raw materials we receive and send. This
system incorporates the functionalities by showing us the amount of stock we currently
have and the amount that will be sent out when other departments require. This system
supports our vision as we ensure that the technology in our welfare card is viable for
purchases.
3.10. 3. QUALI TY CONTROL TESTING SYSTEM This system tests if our final products function
as intended. Our vision is to provide an effective tool to restrict the purchase of demerit
goods, simple tests are run through this system to ensure that customers are receiving a
fully functional product. The quality control testing system incorporates the detection of
faulty products ensuring that customers cant purchase demerit goods.

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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)

Making the
product or
service
1. Manufacturing
Process
1. Ensures the product functions properly


2. Detects any faulty products manufactured
Manufacturing
Management System

Quality Control Testing
System
Collaboration System


Decision Support System
2. Raw Material
Management
Process
1. Ensures there is a sufficient amount of
stock for production

2. Records all raw materials sent in and out
of warehouse
Raw Material Ordering
System

Raw Material Ordering
System
Decision Support System


Decision Support System

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CONCLUSION
The rapid growth of technology allows for the creation of the welfare card. The technology
involved within the card is sophisticated yet viable. The utilization of advanced information
systems allows the welfare card to be such a sucessful concept. Through the use of
technology, we are able to make the tedious business processes automated. The welfare
card will ultimately lead welfare users into a greater path of life and shape New Zealand to
become a well rounded society.

REFERENCES

1. NZ Government. (2014). Social Welfare and Support. Retrieved from
http://newzealand.govt.nz/browse/social-welfare-support/
2. Craig Simpson. (2014). Budget 2014 Social Welfare. Retrieved from
http://www.interest.co.nz/news/69962/budget-2014-social-welfare
3. NZ Treasury. (2014). Executive Summary: Managing a Growing Economy. Retrieved
from http://www.treasury.govt.nz/budget/2014/execsumm/04.htm
4. Ministry of Social Development. (2013). Jobseeker Support December 2013
quarter. Retrieved from https://www.msd.govt.nz/about-msd-and-our-
work/publications-resources/statistics/benefit/post-sep-2013/jobseeker-
support/december-2013-quarter.html
5. Ministry of Social Development. (2014). All main benefits - March 2014 quarter.
Retrieved from https://www.msd.govt.nz/about-msd-and-our-work/publications-
resources/statistics/benefit/post-sep-2013/all-main-benefits/march-2014-
quarter.html
6. Statistics New Zealand. (2013). Key facts. Retrieved from
http://www.stats.govt.nz/browse_for_stats/income-and-
work/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec13
qtr.aspx
7. The Treasury. (2013). Part 1.1 Overview of the Vote. Retrieved from
http://www.treasury.govt.nz/budget/2013/ise/v10/ise13-v10-pia-socdev.pdf