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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Emma Bowie
NetID ebow403
Group Number: 272
Website Link:
http://infosys110group272.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Olivia Thursday 9.00am
Time Spent on
Assignment:
15 hours Word Count: 1771

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EMISSIONS REWARDS SCHEME
INTRODUCTION
High emissions, caused by the burning of fossil fuels and the wide-spread
acceptance of environmentally unfriendly practices, are causing global warming.
Through the implementation of ERS, an emissions reward scheme that will operate
like a fly-buys for the environment, businesses and consumers will be empowered
to accept responsibility for this problem. Businesses which are taking steps to
produce environmentally sustainable products can register for the system, which
provides consumers with rewards points based on the products they purchase that
can then be exchanged for discounts at participating businesses. Through
rewarding businesses and consumers alike, ERS has the potential to transform New
Zealand into a world leader for the effective facilitation of a movement towards
greater environmental awareness.
3. BUSINESS SECTION
3.1 Vision
To empower society to make environmental sustainability their top priority, and in
doing so preserve the earths environment for future generations.
3.2 Industry Analysis:Nation-wide loyalty programme industry
Industry: the nation-wide loyalty programme industry in New Zealand. This
industry includes companies that collaborate with a variety of New Zealand based
retailers to provide customers rewards based on their purchase choices.
Force: High/Low: Justification:
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Buyer power: Low Only Flybuys provides a truly comprehensive
rewards scheme across multiple retailers in New
Zealand. Other companies like the Airport Dollars
loyalty programme (a collaboration between Air
New Zealand and Kiwibank) are competitors
of Flybuys, but as they only reward customers
with flight related bonuses they are not a perfect
alternative (Air NZ and Kiwibank launch Airpoints
credit cards, 2013). As buyers have little choice in
rewards schemes other than Flybuys, buyer power
is low.
Supplier power: Low As loyalty programmes are not actually supplying
goods themselves, the main suppliers in this
industry would be technology support services
used to help with the implementation and
function of electronic systems processing and
tracking purchases. In the 2013 economic
development ministerial report, it was stated that
the ICT sector is in a period of fast growth,
meaning that supplier power is currently low
(Ministry of Business Innovation and Employment,
2013).
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Threat of new entrants: High As the creation of a loyalty programme in New
Zealand does not require high investments in
infrastructure, nor a great amount of specialist
knowledge and resources, there are not many
entry barriers to this industry (Loyalty Card to
Take on Heavy Weight Flybuys, 2009). As there
are few entry barriers, threat of new entrants is
high.
Threat of substitutes: High There are many alternatives available to
consumers. Instead of using a loyalty programme
to save money, it is possible for them to do their
own online research and select products based on
retail sales (Do customer loyalty programmes
really work?, 2005). There are also online sites like
One Day Sale Finder which help consumers find
the best deals independently. As greater savings
are sometimes possible through these methods,
the threat of substitutes is high.
Rivalry among existing
competitors:
Low Rivalry is very low because Flybuys almost has a
monopoly in the industry (Loyalty New Zealand,
2013). Flybuys only has a small number of
competitors, and most of these companies do not
provide as comprehensive a scheme, targeting a
much narrower portion of the market. Therefore
the little competition that does exist is not very
direct/intense.

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Overall attractiveness of the industry: As buyer power, supplier power, and rivalry
among existing competitors are low, this industry shows potential. If a company is
to be successful in entering this industry they will have to try and overcome the
high threat of new entrants and substitute products. Through ensuring their service
provides better rewards than independently driven customer money saving
techniques could, the threat of substitute products/services can be minimised.
Through the creation of strong partnerships with a wide variety of New Zealand
businesses, it is also possible to manage the threat of new entrants into this
industry. The riskier elements of this industry can be managed.
3.3 Customers and Their Needs
ERS is is aiming to fundamentally change the way New Zealand society as a whole
views and supports sustainable practices in business. The target group of
customers is therefore all individual consumers in New Zealand who are interested
in decreasing their emissions for the benefit of preserving our future environment.
They need to have easy access to information about the sustainable
products/services available to them through ERS, along with the corresponding
rewards they are entitled to for their purchases. There also needs to be an easy
way for people to track their purchase habits, the amount of rewards they have
accumulated and their own carbon footprint in order to determine how they are
doing in comparison with other new zealanders participating in the scheme.
3.4 The Product and Service
The main interface between ERS and its customers will be an app. The app will
initially provide a place where people can sign up through a simple registration
process, which matches the individual to their EFTPOS card number. Through their
personal account, customers will be able to see which businesses are offering
particular products and services, track their purchase history and the monetary
value of rewards they have earned, and also view the direct impact of their
product choice on their household/family carbon footprint. This easy access to
information, with everything available in one place and accessible at all times,
will make it possible for customers to get out of ERS exactly what they require
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from it: daily savings and the information and support necessary to make positive
sustainable purchase choices.
3.5 Suppliers and Partners
The main partners are the businesses offering sustainable products/services that
sign up to be part of the scheme. The businesses work with ERS to gain a
competitive advantage through attracting customers based on their sustainable
credentials, while ERS relies on the businesses to provide the sustainable products
and services that the customers demand.
ERS must also work in partnership with banks operating throughout New Zealand.
In order to operate a system that uses customer EFTPOS cards to track customers
purchases to give them rewards, information needs to be shared between the
customers bank systems and ERSs system.
As ERS is an app based organisation, with most of the services it provides to
customers being electronic, technology support service companies are one of their
major suppliers. ERS must invest in support to set up and maintain these systems.
As effective marketing is so important for ERSs business success they may
outsource some of their advertising needs to a marketing specialist. The marketing
specialist company would supply ERS with plans for marketing campaigns; and
potentially create flyers, posters and billboards for the company as well.

3.6 Strategy: Broad market differentiation strategy
ERS is aiming to change societys purchasing/manufacturing habits to decrease
emissions. To achieve this organisational vision it is necessary for their competitive
scope to be very wide. Otherwise, if they only attracted customers from a small
subgroup of New Zealanders, it would not be possible to substantially lower New
Zealands carbon footprint.
As ERS is working with New Zealand businesses to deliver sustainable products and
services, the quality of these goods/services will be higher than average. Higher
quality goods/services are more expensive to produce, so although ERS is offering
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discounts to incentivise customers to still purchase these products/services, they
are still operating at a higher cost level. ERS would have to enter the market with
a high cost strategy.
The overall strategy is therefore: Broad market differentiation strategy.
3.7 Value Chain Activity: Market and sell the product/service
The most important value chain activity for this business is: Market and sell the
product/service.
ERSs vision is to change the environmental values of New Zealanders and
successfully convince them to buy sustainably produced products. For ERS to
achieve this it will rely heavily on the quality of its marketing. Not only is ERS
trying to attract customers to the scheme, but also as many businesses as possible
to supply the sustainable goods/products. These businesses will only participate in
the scheme if they are assured that ERS will be able to create a brand that is
strong and reliable enough to give them a competitive advantage in the
marketplace.
3.8 Business Processes
3.8.2. PURCHASE TRACKING PROCESS - This is one of ERSs main sale processes for the
goods/services. The business relies on the information regarding customer
purchases being transferred from the participating businesses accounting systems,
and then being processed by ERS to assign the appropriate reward to the customer.
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Purchase Tracking Process:



















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3.8.2. MARKETING RESEARCH PROCESS - For ERS to succeed it needs to be marketing very
effectively to both customers and their potential business partners. The research
process is vital for ERS to create marketing campaigns that strengthen the value of
their brand.
Marketing Research Process:


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3.9 Functionalities
3.9.1. PURCHASE TRACKING PROCESS
EFTPOS number tracking abilities
Information syncing with ERS app
3.9.2. MARKETING RESEARCH PROCESS
Data storaging
Data mining ability
3.10 Systems

3.10.1. PURCHASE TRACKING MANAGEMENT SYSTEM - This system ensures information from
partnering businesses can be accessed by ERS. The system is able to recognise
participating customers registered EFTPOS cards allowing the tracking of their
purchases throughout various stores, and therefore allocate the correct rewards.
The system syncs automatically with the ERS app, so customers are kept constantly
updated about their purchase habits, accumulated rewards and emissions ratings.
3.10.2. MARKETING RESEARCH PROCESSING SYSTEM - This system supports all of the tasks
required for ERS to carry out effective, targeted marketing campaigns. The
systems data storaging ability ensures that the collected customer and industry
information is accessible in one place for all employees. The data mining abilities
enable analysts to draw strong conclusions on the gathered information, and
better refine ERSs marketing direction.
3.10.3. REGISTRATION MANAGEMENT SYSTEM - In order for the purchase tracking
management system to work, customer EFTPOS card details need to be properly
registered. The system ensures that each card is allocated a single number that
remains the same across all businesses participating in the ERS scheme. The card is
matched with the customers account so that all their purchases are visible to them
on the ERS app.
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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
produc
t/servi
ce
1.
Purchas
e
tracking
process
1. EFTPOS number
tracking capabilities

2. Information syncing
with ERS app
Purchase tracking
management
system

Transaction
processing
system

Collaboration
system
2. Marketi
ng
researc
h
process
1. Data mining ability
2. Data storaging
Marketing
research
processing
system

Registration
management
system
Executive
information
system

Decision
support system

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CONCLUSION
ERS, through partnerships with New Zealand businesses, is aiming to create a
framework for environmental change. Through the use of information systems the
transference of information between ERS, its business partners and its customers
is made possible. This information sharing in turn allows ERS to track New
Zealanders purchasing habits and emissions ratings, and report these findings
directly back to customers using its app. Through the easy access to information,
and the rewards provided through the scheme, New Zealanders will be
empowered to take responsibility for their family/household emissions, and help
move New Zealand towards a cleaner, greener future.
REFERENCES

1. Air NZ and Kiwibank launch Airpoints credit cards (2013). Retrieved from:
http://www.scoop.co.nz/stories/BU1309/S00684/air-nz-and-kiwibank-launch-
airpoints-credit-cards.htm

2. Ministry of Business Innovation and Employment, 2013. Information and
Communications Technology. Retrieved from: http://www.mbie.govt.nz/pdf-
library/what-we-do/business-growth-agenda/sectors-reports-series/sector-
report-information-communication-technology.pdf

3. Grahame Dowling, Mark Uncles. Do customer loyalty programmes really work?
(2013). Retrieved from: http://sloanreview.mit.edu/article/do-customer-loyalty-
programs-really-work/

4. Loyalty New Zealand (2014). About us. Retrieved from: https://www.loyalty.co.nz
5. Author. Simon Hendery (2009). Loyalty Card to Take on Heavy Weight
Flybuys. Retrieved from:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10
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