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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Matthew JacksonNetID mjac287Group Number: 352Website Link: http://infosys1102014s1group352.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Kit-wah Huang Friday 12pm

Time Spent on Assignment: 15 hours Word Count: 1647

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INTRODUCTION

Shark attacks are a serious threat that all beachgoers expose themselves to when they go

for a swim, both in New Zealand and around the world. Unfortunately, there are no signs

that incidences are decreasing, with the number of total reported sharks attacks in the

2000s being almost 200% higher than in the 1980s two decades earlier (International Shark

Attack File, 2014). Although there are some protection methods present (both individual

and communal), these have all proven to be either too expensive or ineffective to have a

tangible impact on the risk of attacks. My solution, which is a sonar-monitored safe

swimming perimeter, will feasibly solve this problem by alerting swimmers when a shark has

breached the boundary so that they can take immediate action to remove themselves from

the threat.

3. BUSINESS SECTION

3.1 Vision

To make New Zealand beaches safe from shark attacks for swimmers of all ages and ability.

3.2 Industry Analysis

Industry: Electronic public shark protection industry. Comprising products that are based in

information technology and protect swimmers from sharks.

Force: High/Low: Justification:

Buyer power: Low Buyer power is low because the local bodies in

charge of beaches have a certain obligation to

ensure the safety of their patrons (Dalzell,

2014), and not buying this industry’s products

despite their availability would be putting those

people’s lives at risk unnecessarily.

Supplier power: Low For the companies in this industry, there are

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many potential suppliers who can provide the

raw materials they require, such as metals

(Metal Suppliers Online, 2014). Thus, supplier

power is low as they can change suppliers easily

and without consequence if unsatisfied.

Threat of new entrants: Low The products in this industry demand quite a lot

of initial capital as a result of developing the

advanced technology, which serves as a

significant barrier to entry.

Threat of substitutes: High There are a number of substitutes to the

products in this industry, such as shark meshing

(NSW Department of Primary Industries, 2013)

and personal electromagnetic shark repellant

apparatuses (United States of America Patent

No. 5566643 A, 1996), which to some extent

provide protection from shark attacks.

Rivalry among existing

competitors:

Low The rivalry amongst existing competitors in this

industry is very low, as there are currently no

companies in this industry.

Overall attractiveness of the industry: Ultimately, the electronic shark protection industry is

attractive. While it is quite difficult to enter the industry, once a company has done so it

would be quite lucrative as the only force which is high is the threat of substitute products.

Even so, that isn’t a major issue as the products in this industry are assumed to be more

effective than those other options currently on the market.

3.3 Customers and Their Needs

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For this product, the target group of customers are city councils, and other bodies with

public beaches under their jurisdiction. A fundamental need of these governing bodies is to

maintain the safety of those people who use their beaches, with shark attacks being one of

the main threats to this (National Oceanic and Atmospheric Administration, n.d.).

Consequently, they require a solution that will protect swimmers effectively, while also

having low maintenance costs and a minimal impact upon marine life. Currently, all

available “solutions” do not meet these criteria for the customers sufficiently enough

(Constantine, 2011).

3.4 The Product and Service

The product is an IT-facilitated safe swimming perimeter, which is created through the

strategic placement of monitoring posts embedded in the seafloor at a beach. These posts

are powered by solar panels and feature “active sonars,” which exclusively monitor for

signals that a shark’s unique shape produces. Upon detection of a perimeter breach, the

antenna at the top of the post transmitts a signal that activates a warning beacon on the

shore, alerting swimmers to the immediate danger.

This

product meets the customers’ needs in that it will protect patrons from attacks, while

having affordable maintenance costs for their tight budgets (as it is automated, unlike shark 4

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meshing which requires daily maintenance and is costly (Green, Ganassin, & Reid, 2009))

and a virtually non-existant impact on marine life through no risk of by-catch.

3.5 Suppliers and Partners

One potential supplier of my company is Suntech Power (Wuxi Suntech Power Co., Ltd.,

2014), which is a manufacturer of solar panels (which are required to power the product’s

monitoring posts). Another potential supplier is Morgan Advanced Materials (The Morgan

Crucible Company, 2009), which supplies piezocomposite materials that are commonly used

in the production of sonars.

A potential partner of my company would be the Shark Conservation Society, an

organisation which would surely support the product as it provides an humane and practical

alternative to the shark swimming nets which catch more than 750 sharks on average each

year in the state of Queensland alone (Green, Ganassin, & Reid, 2009). In addition to this,

another partner that would be appropriate for my company is Surf Life Saving New Zealand,

as they share a common goal of ensuring that beachgoers are safe when swimming (from

any threat). Ultimately, these two organisations are befitting potential partners as they both

have philanthropic aims that support the overriding purpose of my company and product.

3.6 Strategy

My company has a narrow competitive scope, as its product is specifically targeted towards

a single customer group (beach governing bodies) and tailored with their use in mind. In

actuality, a relatively small customer base would purchase this specialised product.

The cost strategy is high cost, because this product is technology-based and possesses a

high initial cost and installation costs. However, this is acceptable as the intended customers

do have the financial capacity to purchase the product as a long-term investment.

The overall strategy is therefore focused high cost.

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3.7 Value Chain Activity

The most important value chain activity for this business is making the product.

This value chain activity is critical to my company, in that it involves ensuring that the

product is constructed properly and possesses the ability to successfully protect people

from shark attacks through detection. Without this being achieved in this stage of the value

chain, the company will not be able to meet its vision. As the strategy is focused high cost, it

is vital that the production is carried out correctly so that customers receive an end product

which is commensurate in value and effectiveness to the price paid.

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3.8 Business Processes

3.8.1. SONAR PRODUCTION PROCESS – This is a key business process for the company, as it

involves producing and quality testing of the sonars, which are the criticial component of

the product in that they track the presence of sharks near swimmers (and the safety risk

associated with this). Their correct manufacturing is important, as the sonars’ capabilities

are what sets this product apart in terms of effectiveness from non-technology based

solutions.

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3.8.2. MONITORING POST ASSEMBLY PROCESS – This process is of significance to the

company, as it is the final one in this value chain activity and involves the assembly of all the

separate components of the product (which have been specifically made or sourced

externally). It is important that this process is conducted accurately, as the result of it will be

the final product which must work in the way that customers expect it to (protecting their

patrons from shark attacks).

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3.9 Functionalities

3.9.1. SONAR PRODUCTION PROCESS

Querying how many sonars need to be produced Checking availability of required raw materials

3.9.2. MONITORING POST ASSEMBLY PROCESS

Identifying the number of products on order Inquiring whether individual components are available

3.10 Systems

3.10.1. RAW MATERIALS MANAGEMENT SYSTEM – This system is important as it supports the

functionality of “querying the availability of required raw materials,” and ensures that the

company possesses the raw materials needed to make the product components. The system

manages raw materials so that they are available when production is required, and thus

supports the vision by facilitating a prompt cycle time that will assist a customer in

protecting their patrons from shark attacks as soon as possible after ordering.

3.10.2. ORDER MANAGEMENT SYSTEM – This system is of significance in that it supports the

functionalities which query the number of products and components that must be produced

so that orders can be met in full. It communicates information to other systems within the

organisation about what resources will be henceforth required to meet these orders in a

timely manner, so that customers can sufficiently protect the public from shark attacks

(subsequently supporting the vision).

3.10.3. PRODUCT COMPONENT MANAGEMENT SYSTEM - This system assists the functionality

of “querying whether the required individual components are available” by managing the

production and storage of those components in line with the orders received, and informing

the relevant processes. This meets the company’s vision by enabling the manufacturing of

a product that will protect swimmers from shark attacks.

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3.11. Summary Table: Value Chain to Systems

VCA Processes Functionalities Specific IS(s) Broad IS(s)

Making the

product

1. Sonar production process

1. Querying how many sonars need to be produced

2. Checking availability of required raw materials

Order management system

Raw materials management system

DSS

SCM

2. Monitoring post assembly process

1. Identifying the number of products on order2. Inquiring whether individual components are

available

Order management system

Product component management system

DSS

TPS

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CONCLUSION

Ultimately, the business idea of a sonar-monitored safe swimming perimeter is strong, as it

will give local beach authorities a means of preventing the severe problem of shark attacks

before they occur. IT is fundamental to the organisation, because without it this product

would not be possible (as IT enables the communication of a detected threat to the on-

shore siren) and there would be no value created for the organisation through product

differentiation. IT gives the organisation the power to meet its vision of making beaches safe

for swimmers from shark attacks, in a way that non-IT solutions at this point cannot achieve

as effectively.

REFERENCES

Charter, G. E., Ripley, S. H., & Starkey, N. G. (1996). United States of America Patent No. 5566643 A. Retrieved from http://en.wikipedia.org/wiki/Protective_Oceanic_Device

Constantine, E. (2011, June 4). Board critical of shark nets move. Retrieved from Otago Daily Times: http://www.odt.co.nz/news/dunedin/163412/board-critical-shark-nets-move

Dalzell, S. (2014, January 28). WA shark cull: Fisherman says animal he shot was threat to public safety. Retrieved from ABC News: http://www.abc.net.au/news/2014-01-27/wa-shark-cull-fisherman-shot-shark-was-threat-to-public-safety/5220690

ENF Solar. (2014). Solar Panel Manufacturers from United States. Retrieved from ENF Solar: http://www.enfsolar.com/directory/panel/United%20States

Green, M., Ganassin, C., & Reid, D. D. (2009). Report into the NSW Shark Meshing (Bather Protection) Program. NSW DPI Fisheries Conservation and Aquaculture Branch.

International Shark Attack File. (2014, March 21). FLMNH Ichthyology Department. Retrieved from FLMNH Ichthyology Department: Worlwide Trends in Shark Attacks Over the Past Century: https://www.flmnh.ufl.edu/fish/sharks/statistics/Trends.htm

Metal Suppliers Online. (2014). Metal Suppliers Online Business Procurement Center. Retrieved from Metal Suppliers Online: http://www.suppliersonline.com/Default.asp

National Oceanic and Atmospheric Administration. (n.d.). 7 Dangers at the Beach. Retrieved from National Oceanic and Atmospheric Administration: http://www.noaa.gov/features/protecting_0808/beachdangers.html

NSW Department of Primary Industries. (2013, December). NSW Shark Meshing (Bather Protection) Programme. Retrieved from NSW Department of Primary Industries: http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0003/357438/nsw-shark-meshing-prgram.pdf

The Morgan Crucible Company. (2009). Piezocomposite Materials - Custom Piezo Ceramics. Retrieved from Morgan Advanced Materials:

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http://www.morganelectroceramics.com/products/piezoelectric/piezoceramic-composites/custom-piezocomposite-material/

Thomas Publishing Company. (2014). Warning System Sirens Suppliers. Retrieved from ThomasNet.com: http://www.thomasnet.com/products/sirens-warning-systems-92141555-1.html

Wuxi Suntech Power Co., Ltd. (2014). Suntech Power - world's largest producer of solar panels. Retrieved from Suntech: http://www.suntech-power.com/

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