Michael Dickson, mdic331

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Michael Dickson
NetID Mdic331
Group Number: 86
Website Link: http://infosys110group86.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kayur Ramson Monday 3pm
Time Spent on
Assignment:
19 hours Word Count: 1643
Michael Dickson, mdic331

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AUTOMATED COURIER WAREHOUSE
INTRODUCTION
Anyone who has ever ordered a product online more than once would have run into
problems with courier companies. In most cases the problem is that no one is home to
receive the package when it is delivered during the day, forcing the courier to return it to
the warehouse. The problem with this is that most courier companies close their
warehouses early in the day, this makes it difficult for someone to pick up their package
after a long day of work. Our solution is quite simple and can be easily done using current
technology. Automating the entire warehouse using a combination of coneyor belt systems,
robotic arms capable of lifting packages, interactive reception machines and a simple
database system would remove the need for employees to be present, opening up the
opportunity for a system to operate 24/7. People will be able to pick up their package at any
time and will reduce the holding times for undelivered packages.
3. BUSINESS SECTION
3.1 Vision
We aim to optimize the courier delivery industry for the benefit of the consumer and the
business.
3.2 Industry Analysis: Automated Warehousing Tecnology Industry
Industry: Automated Warehousing technology industry.
Force: High/Low: Justification:
Buyer power: High Power power in this industry is fairly high. There
are multiple companies that produce the
technology that is used in this solution such as
Egemin Automation(1). This means the buyer of
this technology has many choices when
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purchasing an automated system for their
warehouse.
Supplier power: Low Automated technology has become streamlined
over the years, making it easy to distribute this
kind of technology. This has resulted in numerous
companies developing this technology, restricting
their ability to dominate the market.
Threat of new entrants: High As this technology has been around for years
there is no need for lengthy development
processes, making it easy for new companies to
enter the market and start producing system
using existing designs.
Threat of substitutes: Low The only subsitute to an automated warehouse is
one opearted my people. However these human
operated warehouse are incredibly inefficient,
making buyers choose the automated system
every time.
Rivalry among existing
competitors:
High Rivalry is high in an industry like this. Since the
technology is so simple and there isnt much you
can develop in terms of technology, companies in
this industry a forced to compete on price. The
technology is reletively the same and the only
thing the buyer is concerned with is the price.
Overall attractiveness of the industry: As a whole this industry is not overly attractive. The
competition between suppliers is high as a result of numerous companies cashing in on the
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technology and the price being the focal point of competition. However it is a fairly easy
industry to get into as the technology is nothing new.
3.3 Customers and Thei r Needs
The customers for this solution is fairly obvious. Courier companies. As the customer of this
solution happens to be a business one of the major factors that concerns these companies is
the cost. As a business their sole purpose is to maintain a profit, so this solution need to be
cost beneficial to the courier company, either by installing a system that costs the same as
their current system, or by installing a system that reduces their costs entirely. The courier
company also requires a modular system that can be customized to suit their business,
rather than having a one size fits all system that never really works as well as the business
would like.
3.4 The Product and Service
This solution is capable of satisfying the majority of needs required by courier compaines,
especially the two listed above. Installing an automated system does exactly what the name
suggests, it automates things. Since this system is fully automated and controlled by a
computer system, there is no need for any employees and no need to pay costly wages and
salaries for warehouse worked. This factor on its own greatly reduces a significant portion of
a courier companies cost. On the other hand an automated system would require more
power to operate, so to counter this the system is capable of shutting down the majority of
its components during slow hours where a fully active warehouse is not required. The
modularity comes in the form of separate components such as conveyor belts and robotic
arms that can switched out based on the companies requirements, for example if a specific
courier business needs an arm capable of lifting heavier packages.
3.5 Suppliers and Partners
This solution makes good use of technology already in use, allowing for multiple suppliers to
provide the equipment required for this system package. Conveyor belt companies such as
Dunlop Conveyor Belting(2) can easy install the technology that has been used in
manufacturing warehouses for years. Industrial bobotic arms can be provided by companies
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such as RobotWorx(3) to lift the packages for storage or for placing them on the conveyor
belts. As this solution is a system package, partnerships can be created with these
companies to allow for lisenced equipment to be used for each system installation, so that
the technology used in each installation is the same.
3.6 Strategy: Differentiation
The installation of a system like will not come cheaply to a customer as there is a lot of
machinery that needs to be purchased, all of which is of industrial quality and is designed to
be used in a company wide environment. However technology like this is very adaptable,
being controlled and monitored by the software in the system. This means the system can
be used for companies outside the courier industry as all that needs to be changed is the
software running the system.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Technology and Development
The most important value chain activity for this business is Technology and Development.
For a solution like this to work the majority of the work effort needs to be put into
Technology and development. While the mechanical technology does not need a huge
amount of development, the software side of the solution is where it needs to the most
attention. The business needs to put a lot of effort into making sure the software suits the
particular business the system is being intergrated into, otherwise the customer will feel as
though they received a generic software package.
3.8 Business Processes
3.8.1. PACKAGE INSTALLATI ON PROCESS
This process will be fairly simple and will assume deals with suppliers/partners are already in
place. Firstly the customer will place an order for a package, outlining their needs. The
business will then purchase the mechanical equipment from its partner/supplier to be used
for the install and will be handled by the acquisition department. The base software will be
modified to suit the customers needs based on their business type and shipped with the
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equipment. The mechanical hardware and software will be installed into the customers
warehouse and computer system, and finally a demonstration of the system will be shown
to the customer and the payment will be received.
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3.8.2. SOFTWARE ADAPTATION PROCESS
For this process the base software needs to be developed first, creating the majority of the
needed features, this will be done by the technology and development department. The
customer will place their order with the specific requirements they have, of which the R&D
department will then modify the software to meet these requirements. The software will be
installed onto the customers computer system and tested/demonstrated for the customer.
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3.9 Functionalities
3.9.1. PACKAGE INSTALLATI ON PROCESS
Ability to modify system package.
Practical demonstration
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3.9.2. SOFTWARE ADAPTATION PROCESS
Modifiable for customers system.
Can be modified by the user in the future.
3.10 Systems

3.10. 1. CONTENT MANAGEMENT SYSTEM This business will make significant use of content
management systems in order to manage the software development side of the business.
With information regarding the base software and what the customer desires gathered and
displayed within the same system, software developers in the business can easily
understand what needs to be done in order to create the final product for the customer.
3.10. 2. CUSTOMER RELATI ONSHI P MANAGEMENT SYSTEM Creating and maintaining close
ties with the customer is a vital component of this business. Understanding what customers
have wanted in the past can help the business understand the sort of changes it may wish to
make in the future, and in the end profit from the loyalty of repeat customers.
3.10. 3. OPPORTUNI TY SYSTEM Due to the flexibility of this solution, the business would
benefit from taking every opportunity it can, even from outside the courier industry. Having
a system analyse any potential customers will increase the possibility of increased profits
and further development of the technology backing this business solution.
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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)

Bavarian
bergkase
fromage
queso
1. Package
installation
process
1. Ability to modify system package.

2. Practical demonstration.
Content management system

Customer relationship
management system
Enterprise resource
planning

Transaction processing
system
2. Software
adaptation
process
1. Modifiable for customers system.

2. Can be modified by the user in the future.
Opportunity system



Decision support system


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CONCLUSION
Automating a courier warehouse using present day technology including conveyor systems
and industrial robotic arms will completely optimize the courier process as a whole, and will
be of great use to the customers of courier companies. For the courier companies
themselves, this use of information system technology not only imporved their relationship
with their customers, but also has the possibility of decreasing costs and improving the
overall efficiency of the business.

REFERENCES



(1) http://www.egemin-automation.com/en/automation/material-handling-
automation_ha-solutions/automated-warehouse-systems
(2) http://www.dunlopconveyorbelting.com/corporate/company-information/
(3) http://www.robots.com/about