Name Andrea En-Yi Lim NetID alim491 Group Number: 345 Website Link: http://infosys1102014s1group345.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kit-Wah Wednesday 1pm Time Spent on Assignment: 31 hours Word Count: 1,575
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2 THE GLEAM INTRODUCTION Road cyclists today face a myriad of dangers when cycling on roads. Accidents, both serious and not so serious, are aplently and after much research, we realised that majority of such accidents occur at intersections. The lack of indication from cyclists and unawareness of the cyclists presence from drivers cause such accidents and has led us to improve on a compulsory safety element for cyclists in New Zealand: helmets. The Gleam is a better, more functional helmet that has indicators built into the back of the helmet. By pushing on the reattachable buttons on the bicycle , it sends a Bluetooth signal to the indicators, indicating if the cyclist plans to turn left or right. Designed with the cyclists utmost safety in mind, drivers would be able to see the cyclists intentions and predict his or her next move. We believe that the Gleam will reduce the risk of fatal accidents occuring and making roads safer for all road cyclists. 3. BUSINESS SECTION 3.1 Vision To provide reliable, high quality products geared towards creating safer roads for cyclists across the globe. 3.2 Industry Analysis: Cycling Safety Industry Industry: Cycling Safety Industry Force: High/Low: Justification: Buyer power: Low It is compulsory for anyone who cycles in New Zealand to wear helmets when they ride. Buyers have no choice but to own a helmet, and they do not have an option of not wearing a helmet due
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3 to regulations. Hence, buyer power is low. (NZTA 2010) Supplier power: Low This industry has many choices of suppliers to choose from as it uses standardized parts, making it easy to change suppliers when needed. (Global Sources 2014) Threat of new entrants: High It is easy for new competitors to enter the industry as there are low barriers to entry. Starting up new businesses in New Zealand is easy and cycling is growing in popularity, about 4% growth in cycling every year. With a high demand of customers, profitability is high and new businesses are attracted the enter the market. (Work and Income 2014, CAN Report 2006) Threat of substitutes: Low Helmets are essential for cyclists in New Zealand, and there are few alternatives that cyclists can use that provide the same amount of head protection. The law states clearly that a safety helmet with the right standards must be worn during riding. (Road User Rule 2004) Rivalry among existing competitors: High There is a high number of competitors that provide a wide variety of cycling safety accessories. As seen from the New Zealand Herald, many bicycle stores are closing due to the influx of big cycling chains. Rivalry is high and
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4 competition is fierce in this market. (NZ Herald 2011) Overall attractiveness of the industry: The cycling safety industry is relatively attractive to enter as supplier power is low and entering the market is easy. Cycling is indeed growing in popularity and there is a high demand for bicycles, and by default, their compulsory complementary product, helmets. It is easy to enter the market despite the high rivalry as our product is innovative and different from many other cycling safety accessories. 3.3 Customers and Thei r Needs Our target group of customers are road cyclists. Approximately 9 out of 10 reported cyclist casualties occurred on urban roads, from a time span from 2008 to 2012, and despite the Share the Road campaigns, road cyclists still face a high level of danger from oncoming traffic. 81% of crashes occur at intersections and cyclists cannot rely on old-fashioned hand signals to indicate a change of direction in the long run. They need quality, protective gear that can not only protect them during a crash but also reduce the risks of such accidents occuring. (Crash Factsheet 2013) 3.4 The Product Our company aims to further reduce this risk, meeting the needs of road cyclists in New Zealand. By creating the Gleam, we feel that our product can reduce such crashes on the roads. The indicators built onto the helmets can show an intended change of direction when the buttons are pushed. We believe that having indicators built into the helmet will add value to cycling as it will make cycling safer. 3.5 Suppliers and Partners Suppliers: 1) Helmet Suppliers We intended to source from quality helmet makers such as Giro to provide reliable helmets with the maximum amount of protection for customers. 2) LED Light Suppliers Cree LED Lighting will be supplying the LED lights for the indicators on the helmets. They have a great reputation in producing trusty LED light
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5 parts, and the lights on the helmet must be reliable as other motorists must be able to see the cyclists. Partners: 1) Bike Shops in New Zealand We intend to sell the Gleam through stores such as Bike Barn and AvantiPlus stores New Zealand wide. Partnering with them gives us a platform to market our product. 2) Courier Companies Besides selling the Gleam in physical stores, we aim to sell the helmets online through our website. By partnering with DHL, we would be able to get a good price for shipping and send the goods quickly to Kiwi customers who prefer online shopping. 3.6 Strategy: Focused High Cost Our cost strategy used is a high cost one. We aim to provide an product that is competitively priced, using the best sourced, quality materials. Safety cannot be compromised and we echo that belief by using the finest supplies to produce the Gleam. We are looking towards a narrow market. The Gleam caters to primarily road cyclists, as they would require such indicators compared to other recreational cyclists who cycle on pathways. The overall strategy is therefore the Focused High Cost Strategy. 3.7 Value Chain Activity: Procurement The most important value chain activity for this business is Procurement. It is vital to focus on attaining the best quality supplies from suppliers. Our business prides itself in producing the Gleam with high standards, as seen in the vision, and this can only be done by using good quality parts. This relates to our strategy in order to retrieve the best quality materials, we must be willing to pay the high cost related to the supplies.
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6 3.8 Business Processes 3.8.1. SUPPLY TESTING PROCESS Our company prides itself in providing the highest quality product as safety is our number one priority. This is encapsulated in our vision, and hence, we aim to gather the best and most competitively priced supplies from suppliers. In order to do so, we have to identify good suppliers that can provide us with the reliable materials that we need at the best prices. The testing process is rigorous, affirming that we use the best suppliers available.
Start Search for Suppliers Narrow down Suppliers Supply Network Planning System
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$ Purchasing Department Purchasing Department Supply Quality Testing Does the supply meet our quality standards? Place order from supplier Yes Send feedback to Supplier No Start looking for new suppliers End
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7 3.8.2. CUSTOMER FEEDBACK PROCESS This is another process that is paramount to our businesss success. We aim to provide the best for our customers and want to continuously provide quality products to them. One main way to do so is to gather feedback from customers. Their feedback will be taken into consideration and helps ensure that the Gleam is well suited to their needs. Constant input from customers help improve and maintain the quality of our product, and gather feedback about the suppliers we have purchased from.
Start Surveys given to customers Customer Service Feedback Management System Feedback Received Type of Feedback? Store compliments into system Positive Send feedback to relevant department End Store complaints into system Negative Where can we improve? Send feedback to relevant department Email customers to find out more Was the feedback acknowledged? Yes No
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8 3.9 Functionalities 3.9.1. SUPPLY TESTING PROCESS Acknowledge quality problems with supplies Validate order of supplies 3.9.2. CUSTOMER FEEDBACK PROCESS Send surveys to customers Notify departments of new feedback 3.10 Systems
3.10. 1. SUPPLY BENCHMARKING SYSTEM During the supply quality testing, data is keyed into the system whereby supply is checked and the results recorded into the system. If the data does not meet the standard pre-set in the system, it is highlighted. This system helps to maintain the standard of our product, as it ensures that managers can easily make the right decision before purchasing from the supplier. 3.10. 2. ORDER PROCESSI NG SYSTEM After a stringent testing process, managers can decide which suppliers to eventually purchase from and send the order through the system. The order is entered into the computer and immediately sent to suppliers. This guarantees that there would be no delay in the transaction between supplier and our business, and our product can be sent to the customer as soon as possible. 3.10. 3. FEEDBACK ANALYSIS SYSTEM After receiving feeedback from customers, this system stores and filters the type of feedback received. Responses are filtered and then sent to specific departments for analysis. Based on the compliments or complaints, managers can make a decision to set goals that maintain the high quality standards or improve on the product.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Procurement 1. Supply Testing Process 1. Acknowledge quality problems with supplies
2. Validate order of supplies
Supply Benchmarking System,
Order Processing System Supply Chain Management System, Transaction Processing System 1. Customer Feedback Process 1. Send surveys to customers 2. Notify departments of new feedback
Feedback Analysis System
Customer Relationship Management System
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10 CONCLUSION The Gleam is a product that will bring cycling safety to a whole new, revolutionary level. We believe that it will change the way people view cycling: from a view that cycling is a dangerous sport, to another opinion that cycling is a safe mode of transport. Our organization will continually rely on the use of Information Technology to upgrade the Gleam and any systems weaving the company together. We hope that our product will fulfil our companys ultimate aim of making roads safer for every cyclist, everywhere. REFERENCES
1. New Zealand Transport Agency. (2010). About Cycling. The Official New Zealand Code for Cycling (pp.). (Original work published 2010). Retrieved from http://www.nzta.govt.nz/resources/roadcode/cyclist-code/about-cycling/rules.html 2. Global Sources. (n.d.). Bicycle Accessory manufacturers & Bicycle Accessory suppliers. Retrieved May 21, 2014, from http://www.globalsources.com/manufacturers/Bicycle-Accessory.html 3. Work and Income New Zealand. (n.d.). Business Training and Advice Grant. Retrieved May 22, 2014, from http://www.workandincome.govt.nz/individuals/a-z- benefits/business-training-and-advice-grant.html 4. Cycling Advocates Network. (2007). Facts About Cycling in New Zealand. CAN Cycling Facts, Retrieved from http://www.mtbnz.org/wordpress/wp- content/uploads/2011/09/CAN_NZ+Cycling+Facts.pdf. 5. Parliamentary Counsel Office. (2004). Land Transport (Road User) Rule 2004. Retrieved May 23, 2014, from http://www.legislation.govt.nz/regulation/public/2004/0427/latest/DLM303675.ht ml?search=qs_all%40act%40bill%40regulation_%25s_resel 6. Adams, C. (2011, October 22). Bicycle chains bump small stores. The New Zealand Herald, Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10760858. 7. Ministry of Transport. (2013, November). Crash Statistics for the year ended 31 December 2013. Crash Factsheet, Retrieved from http://www.transport.govt.nz/assets/Uploads/Research/Documents/cycling- crashfacts-2013.pdf.