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INFOSYS.110 BUSINESS SYSTEMS:


DELIVERABLE 2: BUSINESS SECTION
2014

Name Esther Ng
NetID Eng098
Group Number: 345
Website Link: http://infosys1102014s1group345.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Kit-wah Wednesday 12pm
Time Spent on
Assignment:
500 minutes + 500 more Word Count: 1000 miles

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THE GLEAM
INTRODUCTION
Cycling is growing in popularity within New Zealand and around the globe. Unfortunately,
the same cannot be said for the rate of cyling accidents. The Gleam is a new product
launched for the purpose of minimizing the amount of accidents on the road concerning
cyclists. Most accidents occur at intersections, which could be the result of poor, minimal or
a lack of indication by the cyclist. The solution to this are indicators signalling from the front
and the back of the bicycle.
3. BUSINESS SECTION
3.1 Vision
To minimise the amount of accidents concering cyclists on roads universally.
3.2 Industry Analysis: The Bike Accessories Industry
Industry: The Bike Accessories Industry- The Gleam consists of a specialised helmet and
removable front LED indicators, making it a bike safety accessory and therefore a part of the
Bike Accessories Industry.
Force: High/Low: Justification:
Buyer power: High There are many products which serve the same
purpose, with only minor variances and many
stores which sell them- including both
independent online or physical stores and online
auction websites. This renders Buyer Power high
because customers have several products and
vendors to purchase from. In addition, the
amount of retailers is increasing every year.

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(NBDA, 2012)
Supplier power: Low Because The Gleams fundamental components
are common, there are many suppliers that can
be utilised. Helmet suppliers, LED suppliers and
bluetooth recievers are not scarce, and neither
are the people who supply them. There are
manufacturers around the globe who can provide
cost efficient helmets. (Bike Helmet Safety
Institute, 2014)
Threat of new entrants: High The industry of Bike Accessories holds no
significant entry barrier. Bike Accessories are not
complex nor expensive to produce. In addition,
there have been no colossal technological
advances made in this market that have caused
increases the competitive difficulty of entering
the Bike Accessories industry. (NBDA, 2012)
Threat of substitutes: High Cyclists could more than easily resort to the
traditonal way of indicating their directoral
intentions by using their arms. (Bikesense)
Rivalry among existing
competitors:
High As mentioned previously there are several
vendors who market very similar products,
making the industry competitive. (Townley, 2006)
Overall attractiveness of the industry: The Bike Accessories Industry is quite unattractive,
based on the 5 forces analysis. Buyer Power, Threat of New Entrants, Threat of Substitutes
and Rivalry Amont Existing Competitors are ALL high, which is a heavily backed suggestion
that this industry is not attractive.

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3.3 Customers and Thei r Needs
In general, consumers enjoy simple devices which deliver value with minimum effort. The
Gleam caters to commuters over the age of 18, but can also accommodate younger cyclists.
Over 18s comprise up to 72 percent of total ridership and an estimate of 55 of crash victims
in New Zealand annually, thus making them a major focus in the designing of this product.
The Gleam is simple and is straightforward to use, making it a very flexible and diverse bike
safety attachment. (Ministry Of Transport, 2013)
3.4 The Product and Service
The product is a directional indication system, for the purpose of The wireless product is
comprised of a LED light helmet and handlebar indicator and a bluetooth exchange device.
The indicators are activated through bluetooth signals from the buttons which are attached
to the front indicator strap. When a commuter presses the right or left button, a signal is
sent straight to the helmets indicator, causing it to flash.
3.5 Suppliers and Partners
Supplier 1. Helmet manufacturers- A main supplier of the Gleam are the manufacturers who
produce the helmet, which is a core component of the product. It is important to have a
strong relationship with this company, as this creates flexibility and efficiency when
operations begin and continue.
Supplier 2. Web hosting and maintanance services- Another supplier would be a web
hositng and mainanance service, since the Gleam is sold primarily via its online store. The
website would need constant bug fixes and tweaks, this is the service this supplier performs.
Partner 1. Auckland Transport- Auckland transport can educate local cyclists of the products
available to combat the increasing number of road accidents involving cyclists. The Auckland
transport have several channels in which they can advertise bike safety. This is a model that
can be adapted to any transport system abroad.

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Partner 2. Shipping Company- A shipping company is a vital partner to have as the Gleam is
sold both online and in physical stores; this means that it will have to be transported and
delivered to either the customers directly or to stores (who are also customers).
3.6 Strategy: Cost Leadership
Because the bicycle accessories industry is highly competitive, cost leadership is the most
effective way to get an advantage over rivals. The Gleam will be marketed at a cost below
the industry average in hopes that consumers will choose the most price and value
conscious option on the market.
We have decided to market the product to a broad market- cyclists. The Gleam caters for all
cyclists of all ages, genders and professions- it can be attched to any bike, including BMXs,
mountain bikes, and common non-specialized bikes.
The overall strategy is therefore Cost Leadership
3.7 Value Chain Activity: Deliver the Product or Service
The most important value chain activity for this business is Deliver the Product or Service
Because our company only sells a single product, it is vital that marketing is utilized to its
fully capacity to maximize sales. However, delivering the product is level in regard to
importance. The low cost product must be delivered at a level of efficiency and quality to
ensure that the perfect order is fulfilled. Customers who are buying for personal use or
retailers buying tor resell will depend on quick and systematic delivery of their order- doing
so will fortify customer loyalty when it is most crucial- in a heavily competitive marketplace.






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3.8 Business Processes
3.8.1. ONLINE ORDER FULFILMENT PROCESS- Because the Gleam can be purchased directly
from an online store, the order fulfilment process is vital. The proccess follows several
decisions, including item availablitiy and customer funds.


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3.8.2. ORDER DELI VERY PROCESS- A final component of completing an order is the delivery.
To ensure that customers receive their order in a manner which is efficient, safe and reliable
is to have an effective delivery process. Personal information received by the online store is
transferred through to the warehouse, guiding the pulling/packing personnel and eventually
passing on the products to the shipping company who will handle the parcel.



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3.9 Functionalities
3.9.1. ONLINE ORDER FULFILMENT PROCESS
Enables customers to purchase online, anywhere and anytime
Creates a customer account for ease of acces for services after the sale
3.9.2. ORDER DELI VERY PROCESS
Enables parcels to be tracked when they are dispatched by the shipping
company and when they are travelling to customers.
Automatically updates inventory levels as items are shipped out.
3.10 Systems

3.10. 1. CUSTOMER REGISTRATION SYSTEM Customers will sign up via the online store to
gain tracking access when they make an order. They will also be registered to receive
special offers and notification when a new product is released. Any queries or requested
service afer sale will be directed to their email they used to create their customer account.
3.10. 2. INVENTORY DATABASE SYSTEM The inventory database is a system which can be
accessed by several levels in the organisation, and is accessed for several purposes; ordering
inventory, order fulfilment and delivery. It is constantly updated to ensure that there is no
overselling or overstating of inventory.
3.10. 3. TRACKI NG SYSTEM Once a customer account is created they gain access to the
websites tracking system, which holds the delivery information of their order
(shipped/unshipped). This adds value as customers are able to assess themselves where
their parcel is and when it is expected them to arrive. This also adds an element of safety as
customers are ensured that their parcel has not been misplaced or lost in transit.

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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)

Deliver the
Product or
Service
1. Online Order
Fulfilment
1. Enables customers to purchase
online, anywhere and anytime

2. Creates a customer account for ease
of acces for services after the sale
Network Transaction
Processing system
Inventory database system
Credit processing system

Customer Registration
System
Transaction Processing
Systems

Customer Relationships
Management Systems
2. Deliver the
Product
1. Tracked parcels when they are
dispatched by shipping company

2. Automatically updates inventory
levels as items are shipped out
Tracking System


Inventory Database System
Collaboration Systems


Transaction Processing
Systems

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CONCLUSION
The Gleam will contribute to society as it provides a way in which cyclists can be safe while
carrying out daily commuting or leisurely cycling. This product will raise social awareness
about road safety and will encourage safe biking. With the launch of this product, we hope
to see a decrease in cycling accidents- and therefore a better community
REFERENCES

1. NBDA (2012) A LOOK AT THE BICYCLE INDUSTRYS VITAL STATISTICS. Retrieved from
http://nbda.com/articles/industry-overview-2012-pg34.htm

2. NBDA (2012) THE NBDA COST OF DOING BUSINESS. Retrived from
http://nbda.com/articles/cost-of-doing-business-study-pg40.htm

3. Townley, J (2006) A CASE STUDY ON THE PERFECT COMPETITION: THE US BICYCLE
INDUSTRY. Retrieved from
http://www.jaytownley.com/the-bicycle-industry-competition

4. Bikesense (No date) CYCLING AND TRAFFIC SKILLS. Retrieved from
http://www.bikesense.bc.ca/ch4.htm
5. Ministry of Transport (2013) CYCLISTS. Retrieved from
http://www.transport.govt.nz/assets/Uploads/Research/Documents/cycling-
crashfacts-2013.pdf

6. NBDA (2013) 2012 RIDERSHIP, BICYCLE RETAILER AND INDUSTRIES. Retrieved From
http://www.bicycleretailer.com/sites/default/files/downloads/resource/Stats1%2C2
6%2C27%2C28%2C29%2C30%2C31_email.pdf

7. Bike Helmet Safety Institute (2014) BICYCLE HELMETS BY COUNTRY. Retrieved From
http://www.helmets.org/madewhere.htm