Name Alexandra Williams NetID awil990 Group Number: 503 Website Link: http://infosys1102014s1group503.blogspot.co.nz Tutorial Details Tutor: Day: Time: Yvonne Hong Thursday 11am Time Spent on Assignment: 20 hours Word Count: 1649
2
2 CYCLIST EMPOWERMENT INTRODUCTION There is a general notion of fear when it comes to cycling as a form of transport. As roads become more congested this is an issue which needs to be resolved. We seek to remove the issue of safety by creating a device which cyclists can use to view their speed, retirieve alerts of upcoming dangerous areas of road by gps and a sonar which gives off a signal to car drivers. Car drivers would require a device which is installed into their cars to pick up the signal that a cyclist is in close vicinity. 3. BUSINESS SECTION 3.1 Vision We strive to empower cyclists who share bustling city roads with cars, to give them the sense of security they deserve. By promoting a healthier and easier method of transport in society we aim to take congestion away from our roads. 3.2 Industry Analysis Industry: Cycling Safety Industry Force: High/Low: Justification: Buyer power: Low There are few safety products available to cyclists. None of which are of electronic advancement. Supplier power: Low There are multiple companies that could supply technology required to develop our product. Threat of new entrants: High Howard (2013) showed that BSD technology already exists and so it would be easy to adapt
3
3 our products safety features using this. Threat of substitutes: High The transport industry constitutes of many different alternatives such as using cars, busses, ferries and motorcycles, most of which are already better established and give customers a perceived higher level of safety than cycling. (Telegraph Reporters, 2012) Rivalry among existing competitors: Low There are no products such as ours in the market. Other safety products e.g. helmets and high- visibility vests do not impose a threat as they have been inplace for years and yet the notion of cycling being unsafe still exists. Bluejay (2013) suggests that helmets dont provide any safety value as the problems with their use counteract the benefits. Overall attractiveness of the industry: The product would have first mover advantage due to the lack of already established safety products for cyclists. There is low competition and the business strategy would support reducing the threat of substitutes. 3.3 Customers and Thei r Needs Currently there are no statistics indicating a particular demographic profile are more concerned with the safety of cyclists than others. NZ Transport Agency (2011) suggests that the primary reason against cycling as a form of transport is due safety concerns. This concern is dependent on varying factors. While one may not be concerned with their personal safety, their conern may extend towards relatives/friends. Therefore the customer base could be anyone with a remote interest in cyclist safety, including drivers themselves. 3.4 The Product and Service The cyclists need for increased personal safety will be satisfied through the use of the products sonar features. It will assure the cyclist that drivers will be aware that they are in a
4
4 close vincinity to them. A car drivers fear of potentially missing a cyclist due to not checking their blind spot properly would also be remedied this way. Alerting the cyclist to upcoming dangerous roads is important to a cyclist with uncertainities about unknown areas. Inexperience could lead to a poorly judged decision. Having the device GPS pre-warning alert would eliminate this fear of the unkown. 3.5 Suppliers and Partners Suppliers: 1. Google We would look at Google for supplying the devices GPS system via Google Maps. Google Maps is well established and is used on devices such as the iPhone already.
2. Samsung As the product will be a mini tablet like device we would look to using a major electronics company such as Samsung who partakes in collobarativce projects to supply the elctronic side of the device. Partners: 1. Automotive Companies (such as Volvo) Blind Spot Detection Technology (BSD technology) would be used to enable the sonar system between the bicycle and the car to alert the driver that a cyclist is close by. Volvo developed this technology over a decade ago. The technology is capable of picking up the mass of a cyclist (Howard, 2013). We would work alongisde a company such as Volvo in developing our own device sonar technology for both the bicycle and for cars.
2. New Zealand Transport Agency Support from a major governmental agency such as the NZ Transport Agency would be an important partnership for marketing. This would give the product
5
5 validility as well as coming together to create a combined vision for the safety of New Zealanders on our roads. 3.6 Strategy: Differentiation Competitive scope: Broad Market The product is aimed at cyclists who chose cycling as a form of transport. Cyclists such as mountain bikers would not find use for the product. However we also would require car drivers to install the appropriate system into their cars. There is no limitation on what type of car drivers would require the product as everyone who choses to drive is almost certainly going to come across a cyclist when driving. Cost Strategy: High It is important that the quality of the technology is not compromised to reduce the cost of the product as its purpose is to protect valuable lives on the road. Another driving factor would be the lack of initial demand. As of May 2013 cycling only made up 2% of total time travelled by New Zealanders (Ministry of Transport, 2013). By improving safety for cyclists it is hoped that this statistic would dramatically increase. This in turn could have an effect on the future cost strategy. 3.7 Value Chain Activity: Market & Sell Our product is built off societies current negative impression of cycling safety. As the aim is to reverse this mind-set, and to market the product in a way that customers will associate the device with safety and protection, how it is positioned in the market will be imperative to its success or failure. It could potentially be difficult to convince customers of this perception as the comfort of established, alternate transport methods may continue to capture our target markets. If emphasis is placed on marketing, target groups would be correctly identified and effective ways to appeal to these groups will be enacted. Due to the relatively new nature of the device concept and that cycling is a slow moving sector of transport it will be initially difficult to establish our product in the market. Cyclist and vehicle retailers may initially be hesistant to partner with us to provide a platform for stocking our product. If already established and respected companies decide to partner with us it will
6
6 also the product validility. Effective marketing and initial self-selling would therefore be important to capture the interest of not only customers but future partners. 3.8 Business Processes 3.8.1. BUSINESS PROCESS 1 ONLINE PURCHASE PROCESS The online functionality of this process would give customers from all over the world the ability to purchase our product. This would be an essential starting platform to establish our product in the industry. Not every customer would be able to go into the retail shops, which stocked the device, as there may not be one in their immediate location, they may not have access to transport and so on. This process removes these limitations. The online presence in business has become an important trend. New Zealanders partake in this trend with statistics showing that 95% of adults researching a product online before purchasing. It was subsequently discovered that this lead to an online purchase 66% of the time (Giles, 2013). Statistically proving that an online presence and adopting an online purchase process is critical to the products success.
7
7
3.8.2. TARGET MARKET RESEARCH PROCESS Identifying the tarket market correctly is critical as the concept is relatively new and additionally the product stands in defiance of the negative impression that media has
8
8 created in regard to the safety of cyclists in big cities. The influential and widespread nature of the media means this will be a difficult barrier to overcome. There is no current insight as to who this group would be. To be sure that appropriate methods were being adopted in the marketing of the product this would be an important process to conduct.
3.9 Functionalities 3.9.1. BUSINESS PROCESS 1 Update shopping cart Calculate purhcase total 3.9.2. BUSINESS PROCESS 2 Send online survey Collaborate data collected 3.10 Systems
3.10. 1. SPECIFI C I NFORMATION SYSTEMS 1: ONLINE PURHCASE SYSTEM
9
9 Updating a shopping cart and calculating a customers purchase total are required by an online purchases system to allow customers to purchase the product online rather than having to physically go into a specific retail store, removing location limitations. 3.10. 2. SPECIFI C I NFORMATION SYSTEMS 2: DATA ANALYSING SYSTEM Collecting data by an online survey and then proceeding to collaborate this data would tranform the data into readable information to deliver value to decision makers who would then have the appropriate knowledge to make business decisions to market the product. 3.10. 3. SPECIFI C I NFORMATION SYSTEMS 3: PROFI LING SYSTEM Compiling data from customers shopping carts would give decision makers more insight into who their customers are and what they want. This would be beneficial in future development of the product by ensuring that customers sfety reuqirements are being meet.
10
10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market & Sell 1. Online Purhcase Process
1. Update shopping cart a
2. Calculate purhcase total Online Purchase System
Profiling System TPS
2. Target Market Research Process 1. Send Online Survey
2. Collaborate data collected Data Analysing System
Profiling System DSS
CRM
11
11 CONCLUSION In cities where the ability to create infrastructure to support cyclist safty is limited, using a range of technology is the next logical step. This would create competitive advantages which would eventually lead to an increase in the use of bicycles as a form of transport to take away congestion from roads and promote a healthier lifestyle for New Zealanders. REFERENCES Bluejay, Michael. (2013). Whats wrong with bicycle helmets? Retrieved from http://bicyclesafe.com/helmets.html
Howard, Bill. (2013). Blind spot detection: Car tech that watches where you cant. Retrieved from http://www.extremetech.com/extreme/165742-blind-spot-detection-car-tech-that- watches-where-you-cant
Ministry of Transport. (2013). New Zealand Household Travel Survey 20092013: Cycling. Retrieved from http://www.transport.govt.nz/assets/Import/Documents/Cycling-2013.pdf Giles, Ron. (2013). New Zealand Internet statistics. Retrieved from http://www.website- consultant.co.nz/Make+Money+Online/New+Zealand+Internet+Statistics.html New Zealand Transport Agency. (2011). Assessment of the type of cycling infrastructure required to attract new cyclists. Retrieved from http://www.nzta.govt.nz/resources/research/reports/449/docs/449.pdf
The Guardian. (2014). Cycling in cities: the search for the worlds most bike friendly metropolis. Retrieved from http://www.theguardian.com/cities/bike- blog/2014/mar/04/cycling-cities-search-bike-friendly-metropolis
The Guardian. (2013). UK road deaths at record low but casualities rise. Retrieved from http://www.theguardian.com/world/2013/jun/27/uk-road-deaths
Telegraph Reporters. (2012). Driving is five times more dangerous than cycling for young men. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/transport/9729218/Driving-is-five- times-more-dangerous-than-cycling-for-young-men.html