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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
Name Rugved Deshpande
Group Number: 485
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutor: Day: Time:
Nicholl Oblitas Friday 10am
Time Spent on
23 hours Word Count: 1610
The New Zealand bush is dense (Phillips, 2012) and is hard to travel through. 30% of New Zealand is covered in bush and approximately 2000 people are lost every year.
found (Kelly, 2010).
One of the solutions for this problem is to employ a drone in order to locate and find these tampers. This drone will effectively locate these tampers and send the location
details to New Zealand Search and Rescue.
3. BUSINESS SECTION
Ngaros vision is to combine technology and information to be the world’s most effective aerial lifesaving machine
.3.2 Industry Analysis: Drone Industry
Force: High/Low: Justification:
Buyer power: High
Buyer power in the drone industry is high as there are many
choices of whom to buy from. There are trials of a similar
product being conducted at the Canterbury Coastguard
(Cambell Live, 2014) and in Nelson (The Marlborough
Supplier power: Low
In this industry supplier power is particularly low as there
are many firms that are willing and able to provide the
materials for these drones. In New Zealand there are three
different manufacturers: Aeronavics, Hawkeye UAV limited,
and Photo Higher (UAV Global, n.d.). Around the world
there are 408 of suppliers of the required technology (UAV
Global, n.d.). Having an overseas supplier is an option in this
market as raw materials are expensive in New Zealand
Threat of new entrants: Low
There are significant barriers to entry in this market. The
high costs of the materials and aircraft manufacturing
means that it’s harder for new entrants to enter this market
(Trimble, 2012). Since this drone can work with authorities,
once the system is set up, it will be very hard for new
entrants to capture market share.
Threat of substitutes: Low
Helicopters and manual searches are expensive and time
consuming. There are no cost effective and plausible
substitutes for Ngaro. (Ban, 2012).
Rivalry among existing
The market is relatively new and is attractive to many
manufacturing firms. This is because a wide range of UAV’s
(unmanned air vehicle) have been developed (Campbell,
2014). The rivalry has intensified considerably as more
companies look for enter and penetrate the market.
Overall attractiveness of the industry: Overall the industry is reasonably attractive. This is because the threat of substitutes is low due to the low cost and efficient
use of UAV’s. This means that the customers cannot change the product without compromising on either cost or time (efficiency). The buyer power is high but can be
reduced with high switching costs, and set up costs for a new provider. The supplier power is low, which means that one company can find relatively cheap materials. This
will lower costs of production and make it easier to produce the UAV. The threat of new entrants is also low which makes it harder to other competitors to enter the
market. The only possible drawback is that the rivalry between existing competitors is high, which could mean that competition could drive prices down. However, it is
likely that the four other forces will outweigh the rivalry between existing competitors.
3.3 Customers and Thei r Needs
The customer for Ngaro is the lost people in the bush. This is because these drones can be used to find lost tampers. It is clear that these drones will be much cheaper than
helicopter. (Davis, 2014). The department needs to be able to lost tampers quickly and efficiently.
In wet conditions and with the dense bush, it can be hard to locate people with current methods (Davis, 2014). New Zealand Search and Rescue needs a quick and effective
way of locating and tracking people. In low visibility conditions, helicopter and manual searches can prove fruitless due to the naked eye (Davis, 2014). The UAV’s will use
heat sensors and a GPS tracker to relay information to SAIRS. SAIRS can then deploy teams to rescue people, in a faster, cheaper and more efficient manner. The need of
saving lives can be achieved with this enhanced piece of technology.
3.4 The Product and Service
Ngaros service will undoubtely change the future of Search and Rescue in New Zealand. The customers need is for efficent and quick access to
emmergency teams- espeically in bad weaher conditions. Currently with maunal seaches and helicopters, rescue operations are not being
carried out as effiecently as they can be. With enhanced technology, this drone can be used to fullfill customers needs. This is because, with
GPS locater, cameras and heat sensors, it will be easier to find people for SAIRS. Despite poor weather, the drone can still be used.
3.5 Suppliers and Partners
One of the suppliers of our product would be Hawkeye UAV. This company is based in Palmeston North and can conduct training and testing for the UAVS. The company is
based in New Zealand, therefore it will be easier to send faulty drone’s and test the drones before they are deployed.
Another supplier would be China Precision Machinery Import and Export Co-operation. This company will provide relatively cheap raw materials, which will be sourced and
procured. The advantage of this supplier will be the cost.
There will be two main partners: New Zealand Search and Rescue, and the New Zealand Police. New Zealand Search and Rescue needs the assistance in order to save more
live more effectively. The New Zealand Police could possibly use these in Rescue operations as well. The Police would also be able to use the UAV to for emergency
situations, locating and finding people.
3.6 Strategy: Focussed high cost
The strategy that would be most effective for this product would be the focussed high cost strategy. This can be high cost because it is a premium product. It would best be
suited to a focussed market because the UAV’s could be used by specific agencies and not for whole sale use. This is a premium product because of the versatility and the
number of materials required to source, operate and update the UAV’s.
The overall strategy is therefore focussed high cost.
3.7 Value Chain Activity: Research and Development
The most important value chain activity for this business is Research and Development.
The most important value chain activity would be research and development because the industry will be very competitive. This means that the UAVS need to be
constantly tested and updated. The fact that the UAV’s would be used to save lives means that it is essentially that all UAV’s are functional and efficient at all times. In
order to achieve this, constant research needs to be done, in order to modify existing drones or adding new features. New features may need to be tested and considered.
All these possible additions and re testing would occur in the research and development phase.
3.8 Business Processes
3.8.1. DRONE PROTOTYPI NG PROCESS - The Drone Prototyping Process will be important as it relates directly to the research and development. The materials will
need to be sourced from overseas suppliers, these materials need to be the right shape and size, and then the prototype will need to be assembled. The prototype will
need to be tested to ensure that it performs the duties to high standards. The testing process involves remote controlling the drones with the computer systems. If a drone
is not functioning properly then it will need to be removed.
3.8.2. DRONE RESEARCHI NG PROCESS - Another key process is
the UAV researching process. This is an important process as new
technologies need to be developed. The researching phase will involve
contacting the users (SAIRS) redesigning the drones, updating the
drones and then finally implementing the changes. Cameras and heat
sensors, like most technology is getting better all the time. The
researching phase ensures that the best possible cameras and heat
sensors are used.
If changes cannot
If changes can be
If prototype fails tests
3.9.1. DRONE PROTOTYPI NG PROCESS
Having a remote controlled drone.
High quality images and videos are able to be created.
3.9.2. DRONE RESEARCHI NG PROCESS
Having a high quality heat sensor which can be fitted on a drone.
Having a GPS locater which can asses where the drone operates most effectivelty.
3.10. 1. Material Ordering System- This involves simply ordering materials for the remote control. This system is crucial to the remote control functionality because the
materials purchased will include sensors which allow the remote control to communicate with the drone. These materials will need to be ordered through an IT system as
it will make it easier to keep track of receipts and accounts.
3.10. 2. Drone Monitoring System - This system will support the video control and remote control functionality because it will ensure that the drone can be remote
controlled and images which are accurate. If some drones are not functioning properly then they will need to be removed. If many drones are displaying similar issues with
image quality, then management may need to act appropriately.
3.10. 3. CUSTOMER RELATIONSHI P MANAGEMENT - This system will involve getting constant feedback from New Zealand Search and Rescue. This department will
be involved in the implementation first hand and will provide the best feedback. A system will be needed where feedback is requested on a weekly basis consisting of the
quality of the drones and improvements that may need to be made.
3.11. Summary Table: Value Chain to Systems
Processes Functionalities Specific Information
1. Remote control.
2. High quality images and videos.
Material Ordering System. Customer Relationship
1. Enhanced heat sensors.
2. Premium GPS locater.
Drone Monitoring System.
In conclusion, Ngaro is an unmanned aerial vehicle that can be used to find lost people in the bush. The use of
heat sensors, cameras, GPS and remote control allow the drone to fly over dense bushes and find people.
Essentially with this information, New Zealand Search and Rescue can then save lives at a more efficient pace-
compared to the status quo. UAV’s will have rigorous researching, prototyping and feedback systems in place
which will improve the product. Ngaro will save lives by using technology and improving communication.
Ban, C. (2012, May 21). Drones assist county sheriffs’ search and rescue missions. Retrieved from NACO:
Cambell Live. (2014, March 31). UAV drones changing the face of Search & Rescue NZ. Auckland.
Campbell, K. (2014, March 7). SA seeks global unmanned-air-vehicle niche as rivalry intensifies. Retrieved from
Engineering news : http://www.engineeringnews.co.za/article/sa-uav-sector-targets-niches-in-global-
China Precision Machinery Import and Export Corporation (CPMIEC). (n.d.). China Precision Machinery Import
and Export Corporation (CPMIEC). Retrieved from China Precision Machinery Import and Export
Corporation (CPMIEC): http://www.cpmiec.com.cn/
Daly, M. (2012, September 13). Raw material replacements backed. Retrieved from Stuff:
Davis, R. (2014, March 25). Senior Search and Rescue Officer. (R. Deshpande, Interviewer)
Hawkeye UAV. (n.d.). Hawkeye UAV. Retrieved from Hawkeye UAV: http://www.hawkeyeuav.com/
Kelly, L. (2010). Lost in the Bush. In L. Kelly, Lost in the Bush (p. 12). New Zealand: Harper Collins.
Phillips, J. (2012, July 13). 'The New Zealand bush - Lost and found'. Retrieved from Te Ara - the Encyclopedia of
New Zealand: http://www.teara.govt.nz/en/the-new-zealand-bush/page-3
Search and Rescue Institute New Zealand. (n.d.). Background. Retrieved from SAIRS:
The Marlborough Express. (2014, March 31). Drones to the rescue. Retrieved from The Marlborough Express:
Trimble, S. (2012, August 7). IN FOCUS: UAV market structure. Retrieved from Flight Global:
UAV Global. (n.d.). List of all manufaturers . Retrieved from UAV global : http://www.uavglobal.com/
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