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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Stephanie Rachel Nicholls
NetID Snic376
Group
Number:
186
Website
Link:
https://www.blogger.com/blogger.g?blogID=867981950169411527#allposts
Tutorial
Details
Tutor: Day: Time:
Johnnie Shubert Wednesday 9am
Time Spent
on
Assignment:
21 hours Word Count: 1646










PRODUCT LOCATION APP
INTRODUCTION
Ever been frustrated that you cant find the product you want in the supermarket? 65% of
New Zealanders feel the same way! (UMR Research, October 2012) We have a solution to
make your shopping a breeze. A smartphone app, you search the product you want, it
shows a variety of information (pulled in from the supermarkets stock control system),
including where you can find the product in the supermarket (by aisle and shelf number),
price of the product, whether there is any stock and other information such as nutrition.
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3. BUSINESS SECTION
3.1 Vision
To provide shoppers with the most efficient and stress-free shopping experience every day,
so they can get on with their busy lives.
3.2 Industry Anal ysis: Location industry

Force High/Low Justification
Buyer Power Low Buyers have very little
choice as there a few
substitutes for locating
products in stores. Making
their power low and do not
have a lot of choice if they
want to switch to a different
product.
Supplier Power Low There are many companies
that supply the raw
materials used for
production in this device, an
example of which is the
RFID as there are many
companies who will supply
the RFID chip and material.
This gives the suppliers little
control over the industry as
we are able to switch to
another supplier if
unsatisfied with the current
one with many options to
choose from. The vast
number of companies
interested in developing and
marketing RFID products is
changing daily (V.Daniel
Hunt, Albert Puglia, and
Mike, 2006, pg.1).

Threat of New Entrants High There are similar products
that use GPS to located
items in The USA and
Australia which could easily
setup in New Zealand as
they are already established
companies overseas which
eliminates there ere is also
a Countdown app that could
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add a product location
service. Shoppers who
need to locate products in
supermarkets will
increasingly be able to turn
to their smart phones for the
information, thanks to a new
grocery app in The USA.
(Michael Garry, 2010, pg.1).


Threat of substitutes Low There a very few substitutes
including asking employees
where an item is, finding the
aisle list and using a store
map. These substitutes are
less effective for the
consumer and therefore
poses little threat for our
product. Its been seen that
consumers are not pleased
with any current substitute.
65% of New Zealanders
say that their greatest
frustration is not being able
to find what they want in the
supermarket. (UMR
Research, October 2012,
pg.1).

Rivalry Amongst
Competitors
Low This is low due to there
being so little competition
that no rivalry has occurred
because all supermarkets
generally only used the ask
an employee or find aisle
list alternatives. It has
become an accepted
standard that no company
has pushed for improving
this although well over half
of New Zealanders find it a
problem. (UMR Research,
October 2012, pg.1).
Overall attractiveness: The industry looks very attractive with rivalry, threats of substitutes,
supplier power and buyer power all in favour of our company. Although threats of new
entrants is high, threating the potential market share of our company we will have to
continue to improve our product to make it specialised to the New Zealand consumers in the
industry. This gives us a competitive advantage and could increase the barriers of entry.
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3.3 Customers and Their Needs
Our target group of customers is men and women over 20 who regularly do the supermarket
shopping. Although it is a common perception that women do the majority of the
supermarket shopping 40% of men claim to be solely responsible for grocery shopping in
their households. And a further 53% of men claim to be jointly responsible for it. In fact, with
only 7% of men claiming to not have any responsibility. (Amy Nichols, May 2012, pg.1). This
group of people are likely to be either working or studying and have little time for shopping
and do not need unnecessary stress in their week. This is why the need to find their products
quickly in the supermarket with little stress and frustration is evident in New Zealand, with
65% of people claiming it as their biggest frustration. (UMR Research, October 2012, Kiwis
Confess their Greatest Frustrations) An exploratory study of grocery shopping stressors
confirms grocery shopping to be stressful, time pressure mentioned as well as location and
product assortment. (Russell Aylott, Vincent-Wayne Mitchell, 1998, pg.1).
3.4 The Product and Service
Our product satisfies these needs by immediately locating the product the consumer wants
so they can find each product in a matter of seconds, therefore eliminating stress and
frustration and decreasing the customers shopping time in the supermarket letting them get
on with their busy lives. Our app is simple to use and can therefore be used by almost
everyone who does supermarket shopping, making it practical in the use of everyday
shopping.
3.5 Suppliers and Partners
Supplier 1:
A potential supplier for our RFID tags to locate our products is Alien technology alien
Technology provides UHF Radio Frequency Identification (RFID) products and services to
customers in retail, consumer goods, manufacturing, defence, transportation and logistics.
Supplier 2:
An applications store could also be a supplier, where our consumers purchase our app from,
an example of this supplier is the apple app store. The App Store is an online Apple Store,
like iTunes, that allows users to download and/or buy software that runs on Apple devices
running the iOS operating system. (Sam Costello, 2014, pg.1).
Partner 1:
Supermarkets would partner with our company installing the RFIDs on their products. They
will also benefit by this app because consumers will spend less time in the supermarket,
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increasing customer turnover and customer satisfaction. Examples of these New Zealand
supermarkets are Countdown, Pakn Save ad New World.
Partner 2:
Our app has the potential to expand to not just supermarkets but entire shopping complexes,
this suggests that a potential partner for our company could be these complexes for example
Westfields, Dressmart and Eden Quarter.

3.6 Strategy: Focussed Low Cost
The competitive scope for our app is broad market because almost all households shop at
the supermarket, the app is not specific to any particular group in the target market and can
therefore be used by the range of consumers of the supermarket. The cost strategy of our
app is low cost as it will cost under $3.00 and will have no other fees to service, making this
a one off payment for our app. The app could possibly be free to consumers, paid for by
advertising in the app (this could be the supermarkets advertising of new or discounted
products) and therefore the app would have no cost to consumers and remain in the cost
strategy of low cost. Because our app is broad market and low cost the generic strategy we
will use is the focused low cost.
3.7 Value Chain Acti vity: Service after the sale
Service after the sale is the most important value chain activity to make sure our customers
are experiencing what they feel is the most efficient and stress-free shopping experience to
continuously live up to our vision statement. We also have to make sure a range of
consumers are using our product and that they are purchasing it at a price they see as low,
to maintain our strategy of focused low cost.
3.8 Business Processes
Customer complaint process:
When a customer complaint is received it is read by customer relations and filed in the
customer complaints system. If the complaint can be solved by the customer relations
department they manage the complaint, if not the department calls in the upper managers to
handle the complaint. The complaint is then solved and the customer relations department
ensure the problem will not be repeated.
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(Start)
Customer compliant
received
Customer relations read
complaint
Can we solve the
complaint
immediately
Complaint filed
Solve customers problem
(End)
Ensure problem isnt
repeated.
Yes
No
Call Upper Management to
solve problem.
Customer complaints system
Customer
relations
department






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Customer satisfaction research process:
The market research department sends out consumer surveys then collects the data from
these surveys processes them through the data processing system. The marketing
department then evaluates the data. If there are evident problems in the data the evaluation
is sent to upper management to make improvements, if not then the data for the next survey
issue is made.

(Start)
Send out consumer surveys for
customer satisfaction research.
(End)
Make date for next survey issue
Collect data from survey
Store data from survey
Evaluate data
Is there evident
problems in the data?
Send evaluated data to
customer relations and
upper management
Yes
Make improvements
No
Data processing system
Marketing
department

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3.9 Functional iti es
Customer complaint process:
- Receiving complaints is needed to start the complaints process.
- Filing of the complaint so our company has a record of it if reference is needed.
Customer satisfaction research process:
-Sending out surveys is needed so the process can receive data.
-Evaluating the data is important so management can make quick decisions.
3.10 Systems

Customer complaints system:
Provides the ability to receive and store complaints data to give customers the product they
want so that we can help them have an efficient, stress-free and most pleasurable
supermarket experience.

Customer researching system:
Helps us know what our consumers want in the terms of efficiency and low stress by sending
out surveys in order to then receive data and evaluate what needs to happen to given the
consumers this experience.
Product Improvement system:
Allows data to be evaluated and then improves the products so our consumers can
continuously have the most stress-free and efficient experience at the supermarket, as our
vision states.
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3.11. Summary Table: Value Chai n to Systems

Value Chain
Activity
Processes Functionalities Specific
Information
System(s)
Broad Information
System(s)

Service
after the
sale
1. Custome
r
complain
t process

1.Receiving
complaints

2. Filing
complaints
Customer
complaints
system

Product
Improvement
system



Customer Relationship
Management System

Decision Support System
2.
Customer
satisfaction
research
process


1. Sending out
surveys

2. Evaluating
data
Customer
researching
system

Product
Improvement
system




Customer Relationship
Management System

Decision Support System

CONCLUSION
This product provides strong value to consumers to increase their living conditions everyday by minimising
stress and time spent in the supermarket. The use of information systems in the organisation helps the
consumer get the product they really want to make their shopping the best it can possibly be.
REFERENCES

1. (UMR Research, October 2012) and (UMR Research, October 2012, pg.1). Retrieved from
https://www.unicef.org.nz/Kiwis-Confess-their-Greatest-Frustrations-Kiwis-Confess-their-
Greatest-Frustrations-wwwfirstworldproblemsconz

2. (Amy Nichols, May 2012, pg.1). Retrieved from http://www.marketing-sciences.com/is-it-true-
that-men-dont-do-the-grocery-shopping/
3. (Russell Aylott, Vincent-Wayne Mitchell, 1998, pg.1). Retrieved
from http://www.emeraldinsight.com/journals.htm?articleid=857239
4. (Michael Garry, 2010, pg.1). Retrieved from http://supermarketnews.com/technology/product-
location-app-600-stores
5. (V.Daniel Hunt, Albert Puglia, and Mike, 2006, pg.1). Retrieved from
http://onlinelibrary.wiley.com/doi/10.1002/9780470112250.oth1/pdf.
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6. (Sam Costello, 2014, pg.1). Retrieved from
http://ipod.about.com/od/iphonesoftwareterms/g/app_store_def.htm