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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Su Arn KwekNetID skwe265Group Number: 288Website Link: http://infosys1102014s1group288.blogspot.co.nz/p/d1.html

Tutorial DetailsTutor: Day: Time:Kirsten van Dorp Thursday 10am

Time Spent on Assignment: 32 hours Word Count: 1,647

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CHILD DRIVEWAY ACCIDENTSINTRODUCTION

“Each year, at least five children die as a result of being hit by cars in driveways, and a child

is hospitalised with injuries each week.” (NZ Herald, 2014)

This is a serious problem occuring all over the world that’s still not been addressed with an

effective solution. Drivers are simply unware of objects that behind their car when backing

out of a driveway.

Current solutions to this problem, such as reversing cameras, have proven to still be fallible.

I believe that driveway pressure pads are the key to solving this problem.

3. BUSINESS SECTION

3.1 Vision

To create a safe envrionment, and protect children by preventing unecessary accidents

within their own driveways with technology that is reliable and effective.

3.2 Industry Analysis: Child Driveway Safety Industry

Force: High/Low: Justification:

Buyer power: High Customers can purchase the many other driveway safety

products from the countless other companies selling them.

These include: reversing cameras, sensors, safety fences, and

convex mirrors – all of which would be more affordable than

my product. (SafeKids, 2011)

Supplier power: Low Most companies in this industry are selling products that are

simple and can be found in many stores. Products like fences

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and mirrors can be obtained from industrial stores like Mitre

10. Reversing cameras can be purchased at electronic stores

like Dick Smith, and car retailers such as Toyota. These

systems are not expensive, costing somewhere between

$180 and $700. (NZ Herald, 2013)

Threat of new

entrants:

High It’s not difficult for competitors to enter the driveway safety

industry market as there are low barriers to entry. For

example, if a potential business wanted to focus on selling

custom fit fences around driveways, startup and legal costs

would be very low as “there are no specific entry

requirements to become a building contractor.” (Carrers NZ,

2014)

Threat of substitutes: Low The only other way to ensure driveway safety, other than

purchasing products specifically targeted for the problem,

would be perfoming head checks whilst operating the

vehicle. The driver must be fully aware of his/her

surroundings at all times, and teach children to never play

around vehicles. (National Highway Traffic Safety

Administration, 2014)

Rivalry among existing

competitors:

LowMany companies already sell products that could help child

driveway safety, but don’t specifically target the problem

itself. For example, reversing cameras and sensors in vehicles

were designed for assistance in parking and therefore, some

researchers claim that they “might even contribute to a

reduced sense of risk among drivers,” making them more

complacent. My product would be the only one of its kind in

this industry. (Department of Infrastructure and Transport,

2012)

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Overall, this industry looks relatively attractive. As threat of substitues is low, and there are

not many companies targetting this specific issue of driveway safety, my product would be

in high demand.

3.3 Customers and Their Needs

Customers would be anyone who owns a property which has a driveway, drives a vehicle on

it, and has children living in their household.

Their needs would be having quick and reliable knowledge of a child on their driveway, at

any time, whilst in their vehicle. This is critical as accidents occur because drivers ‘didn’t

know’ there was a child behind their vehicle whilst reversing out. For example, often

children involved in these accidents had wanted one last chance to see their parents before

they leave – running up behind the vehicle at “the worst possible moment.” CNN news

(2005) calls this the ‘bye-bye syndrome.’

“The reality is children do unexpected things and the adult driving a reversing car doesn’t

always notice in time.” (NZ Herald, 2010)

3.4 The Product and Service

Custom made and fit pressure pads will be installed all along the surface of the customer’s

driveway. These will send a wireless signal to a portable receiver if it detects something

between 2 to 100kg on the driveway. The receiver will then send out a loud warning

message to the driver, alerting him/her instantaneously if an object steps on the pressure

pads. This means that even in the midst of backing out, the driver will be alerted if a new

object steps anywhere onto the driveway. The driver will then be able to stop the vehicle

and avoid a tragic accident.

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3.5 Suppliers and Partners

Suppliers

1. Manufacturers of pressure pad systems

Companies which design, make, and test pressure pad systems would be a key

supplier for my product. An example company is United Security Products. They are

specialists in making professional security products, including “robust, rugged,

ready” (as advertised on their website) pressure mat systems that are waterproof,

wireless, and designed for use in high traffic areas .

2. Freight companies

If customers who decide to purchase my product are from overseas, my company

would be required to transport the pressure pad systems to them. Therefore, a key

supplier would be shipping companies that can transport my product internationally

e.g. Cosco, that transports goods globally.

Partners

1. Government

The government has responsibility for public health and safety, as well as community

well-being and development. My company could work with the government to

promote the use of my product in homes in an effort to make a safer envrionment

for children. They could provide subsidies to homes with children under the age of 7,

and sales of my product would increase.

2. SafeKids NZ

SafeKids Aotearoa’s vision is “that children in New Zealand are free to enjoy their

childhood without being adversely affected by unintentional injuries.”

My company could work with SafeKids in promoting driveway safety, ensuring

people have the knowledge of safe driveway practices. SafeKids could then promote

my product during their awareness campaigns as a must for all child residing homes.

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3.6 Strategy: Focused High Cost

Cost Strategy: High Cost

Due to its intricacy, pressure pads are expensive. A sheet the area of 61x76cm is priced at

$127 on Amazon (2014). Because driveways are quite large, a large area of pressure pads

would be required to cover the entire surface, and therefore, each driveway project would

be very costly.

Competitive Scope: Narrow Market

As described earlier, the customers of my product would likely be those who own their own

property, and have children living in their household. Upon analysis, this is actually a small

segment of the New Zealand population. “All of New Zealand’s regions are projected to

have more couple-without-children families and one-person households….a continued

decline in average household size is projected for all regions.” (Statistics NZ, 2006)

The overall strategy is therefore: Focused High Cost

3.7 Value Chain Activity: Market and sell the product or service

The most important value chain acitivity for my company would be marketing and selling

the product as this would raise awareness within households of these preventable

tragedies. Severe marketing of my product would alert drivers of the fact that one can never

be too careful when operating a vehicle in areas known to be populated with children. This

thus aligns with my company’s vision, hopefully preventing uncessary accidents, and saving

the lives of children.

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3.8 Business Processes

3.8.1. ADVERTISING CAMPAIGN PROCESS – As my key value chain activity is marketing and

selling the product, it’s critical that advertisments are in place to promote the product.

Consumers must be aware that my product is available on the market, and of its

importance.

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3.8.2. PRODUCT ORDERING PROCESS – As each driveway is different, my company must

gather as much information from the customer as possible to ensure effective

implementation of my product, and an agreeable price is established before their order is

placed, and the product sold.

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3.9 Functionalities

3.9.1. ADVERTISING CAMPAIGN PROCESS

Identify target market to advertise to Check there is sufficient cash available to initiate an advertising campaign

3.9.2. PRODUCT ORDERING PROCESS

Calculate the cost of the potential project Communicate information with the customer

3.10 Systems

3.10.1. MARKET RESEARCH REGION ANALYSIS SYSTEM – T o maximise sales, it is important that

my company does research on which region and type of demographic does child driveway

accidents occur most in. My company would then target this selected segment of the

market and heavily advertise the product to them.

3.10.2. BUDGET MANAGEMENT SYSTEM – To check whether there is sufficient cash/funds

available to initiate the advertising campain, the accounting department would have to look

through the financial statements and perform a budgeting analysis. If there is insufficient

cash, a loan may have to be taken out to finance it. To do this, they would require the use of

the budget management system.

3.10.3. CUSTOMER PROFILE MANAGEMENT SYSTEM - Driveway designs vary. As a result, one

customer’s project willl be unique from another. In order to provide customers with the

optimal design of my product to suit their home, my company would have to communicate

with, and profile each customer separately - recording their details in the customer profile

management system.

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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)

Market and

sell the

product

1. Advertising Campaign Process

1. Identify target market to advertise to

2. Check there is sufficicent cash available to initiate an advertising campaign

Market research region analysis system

Budget management system

Decision Support System (DSS)

Trasaction Processing System (TPS)

1. Product Ordering Process

1. Calculate the cost of the potential project

2. Communicate information with the customer

Accounting system

Customer profile management system

Transaction Processing System (TPS)

Customer Relationship Management System (CRM)

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CONCLUSION

Too many cases over the past years have been related to driveway chlid deaths. This could

be reduced with the implementation of my driveway pressure pad system. The overall

attractiveness of the industry looks good for my company, which will operate with a focused

high cost strategy. Ultimately, with the simple yet effective use of information technology

that sends information to a wireless receiver, many lives could be saved, and a safer

envrionment would be created for children in their own homes.

REFERENCES

1. Morton, F. (2011, June 26). Deathly driveways. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10734624

2. New Zealand Press Association. (2010, July 29). Plea for car cameras to reduce driveway deaths. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10661901

3. Statistis New Zealand. (2006). Subnatoinal family and house projections: 2006(base)-2031 update. Retrieved from http://www.stats.govt.nz/browse_for_stats/people_and_communities/Families/SubnationalFamilyandHouseholdProjections_HOTP06-31update.aspx

4. SafeKids Aotearoa. (2011). Using products to prevent driveway run over incidnets: some of the safety products available. Retrieved from http://www.safekids.org.nz/Downloads/Safekids%20Position%20Papers/AA%20Info%20Sheet%20Driveway%20productsFINAL27April2011.pdf

5. National Highway Traffic Safety Administration. (2014). Retrieved from http://www.nhtsa.gov/Driving+Safety/One+Child's+Death+is+One+Too+Many:+Preventing+Backovers+in+America's+Driveways

6. APNZ. (2013, September 10). More calls for reversing cameras on all cars. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11122451

7. Careers NZ. (2014). Building contractor. Retrieved from http://www.careers.govt.nz/jobs/construction/building-contractor/how-to-enter-the-job

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8. Australian Government Department of Infrastructure and Transport. (2001). Retrieved from http://www.bitre.gov.au/publications/2012/files/is_043a.pdf

9. Amazon. (2014). Cross point wireless pressure sensor pads for bed/floor, 24x30 in.

Retrieved from

http://www.amazon.com/Cross-Point-Wireless-Pressure-Sensor/dp/B007IF0SBG/

ref=pd_sim_sbs_p_26?ie=UTF8&refRID=1Z791GP33HHP2N1H03TZ

10. Hunter, G. (2005, November 7). SUV backover deaths: what can be done? CNN News.

Retrieved from http://edition.cnn.com/2005/AUTOS/tipsandadvice/11/03/backover/

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