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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Suyangzi Wang Swan294 17 http://infosys1102014ssgroup17.blogspot.co.nz/p/d1.html Tutor: Day: Time: Claris Tutor Friday 1pm 26 hours Word Count: 1536

PASS-COIN IMPROVING OUR LIFE BY SOLVING THE PROBLEM OF BANKCARD INSECURITY.

INTRODUCTION

Bankcard insecurity has became a major concern worldwide. The objective of this report is to create a security product, and check whether this product is able to solve the problem. Because this is a new and contemporary topic, our purpose is to investigate a format for such a business. The report bas been organised in the following way. Firstly, it gives an overview of product. It will then go on to analyse business strategy, value chain activity and the process of this product. The last section will examine three specific systems that support this product in our daily life activities.

3. BUSINESS SECTION 3.1 Vision

Pass-coin To ensure bankcard security by storing customer personal information in a chip and record all card information into one to convenient place of use.
3.2 Industry Analysis: Integrated payment and identification Industry

Industry: Integrated payment and identification Industry.

Force:

High/Low:

Justification:

Buyer power:

Low

Although there are many companies have registered in Integrated payment industy, the integrated payment is not commonly used in our daily lives. For instance, Onlycoin company is one integrated payment company. ( S Francisco, 2013)

Supplier power:

Low

There are many companies who supply to the integrated payment and identification industry, so for the organization as a buyer, they are able to switch suppliers if costs are high. A chip company is an example of a supplier. There are many chip manufacters for organizations to choose from. For instance, Intel, Samsung, Toshiba, etc. (Electronics weekly, 2012)

Threat of new entrants:

low

There are several entry barriers to this industry. The high cost of set-up fees, and a security certificate is required for security organizations. (N Cetorelli, 2004)

Threat of substitutes:

High

Bankcards are commonly used in our daily lives. There are many registered banks that produce them, for instance, ANZ Bank New Zealand Ltd, ASB Bank Limited, Kiwibank Limited, Westpac Banking Corporation, etc. (Reserve bank of New Zealand, 2013)

Rivalry among existing High competitors:

Because there are many participants in the integrated payment industry, so the competition is High.

Overall attractiveness of the industry: According to Porter(1998), the five forces are buyer power, supplier power, threat of substitute, threat of new entrants, and rivalry among existing competitors, that can be used to analyse a industry and determine its relative attractiveness. Therefore, the overall attractiveness of the integrated payment and identifiction industry is high. It seems still attractive for a new business to enter the scene.
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3.3 Customers and Their Needs

Anyone with a bankcard can be the customer of this. Many people are suffering from carrying too many cards for shopping. For example, bankcards, rewards card, gift cards, etc. The need is to provide a product which can combine all the cards into one, convenient item. An other special group of customers are businessmen and upper class people, who have frequent financial activity. According to the bank industry in the United Kingdom, the total amount of card fraud is approximately 535 million in 2007 (BBC News, 2007). Bankcard security is extremely essential for them. There are looking for products or systems which can ensure bankcard security.
3.4 The Product and Service

A pass-coin, the same size as a 20 cents coin, is comprised of a security chip, a protective cover and a fingerprint recognition. Pass-coin has a disguise mechanism on the surface. This is a unique cover, which allows it to change like a chameleon wherever the pass-coin is worn. This makes it very practical in allowing people to implement this into their wardrobe or accessories. Pass-coin is a general-purpose machine that processes user card information according to pass-coin member data input. It can store all cards information into a chip. This chip has an anti-hacking system to protect a customers personal information. Every single time the pass-coin is used, the owner will need to apply their fingerprint to unlock and activate it, in order to identify customer information and process further.
3.5 Suppliers and Partners

An necessary supplier for pass-coin will be a chip manufacturer. We are looking for a big brand chip company, which can provide us with a high quality product, thus ensuring the security of chip. It is crucial to set an unique identification to protect customer personal information. Because every fingerprint is unique and non-replicable, a fingerprint sensor manufacturer is another indispensable supplier for our product.
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Our partners are banks, scanning machine manufactuters, airlines and casinos. We shall be requiring banks to provide a bank recording system to help with loading customers accounts information into pass-coin. A scanning machine manufactuter is needed in a financial process. Some entertainment companies, such as casinos, have very strict entry rules requiring the showing of passport imformation. Our product can help them with correct customer identification. This process could also benefit airline companies by saving check-in procedure time.
3.6 Strategy: Differentiation

Three generic strategies: cost leadership, differentiation, and focused, identified by Porter (1998), can be used to discuss business strategy, that is for an organization to take the core competences by its functions and combine them to create advantage in the new market, in order to generate value (Jones, 2013). Because all bankcard holders are our potential customers. We need to provide an extremely high quality product, in order to satisfy customers needs. That would include fingerprint sensor, anti-hecking chip and protective cover. These devices play an essential part in ensuring total customer security. This indicates a high cost strategy. Overall, the core strategy is therefore Differentiation.
3.7 Value Chain Activity: Technology development (and R&D)

Research and development can be defined as a creation of knowledge that is used in products or processes in business event (Djellal, Francoz, Gallouj, Gallouj, & Jacquin,2003). In order to differentiate our product, and compete with rivals, it is important for my business to create a high quality product within high-tech devices. Meanwhile, as technology advances, we are required to achieve customer satisfaction by developing the most advanced tachnology, in order to be able to protect customers personal information efficiently.
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Therefore, the most important value chain activity for this business is Technology Development (and R&D).
3.8 Business Processes
3.8.1. CUSTOMER INFORMATION MANAGEMENT PROCESS This process starts with loading

customer information through bank recording system, and other information identity systems, in order to form a database. Then we will use an information selection system to select necessary information. Finally storing customer information in to a storage programme. CUSTOMER INFORMATION MANAGEMENT PROCESS MODEL

Start

Connect with partner Bank Bank recording Systems

Database storage

Are all the information important?

Yes

Load customer information

No

Select necessiry information Information selecting Systems

Store information

Process information

End

3.8.2. PAYMENT TRANSACTION PROCESS

When a transaction request is received, the

information identifying system is used to identify a customers fingerprint. When the fingerprint is matched, the transaction request is transfering to bank system and checking customers account balance. This process will only be continued by sufficient funds in the
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customers bank account. Then the transaction will be approved by transfering funds into a business account. PAYMENT TRANSACTION PROCESS MODEL

Start

Receive transaction request

Identify fingerprint

Information identifying Systems

$

Transfer request into customers bank system Bank recording Systems Is there sufficient funds inside the bank account?

Bank

Yes

Process the transaction

Transfer money to business account

No Approve the transaction

End

3.9 Functionalities
3.9.1. CUSTOMER INFORMATION MANAGEMENT PROCESS

Select and analyse customer information. Store customer information into a security programme.

3.9.2. PAYMENT TRANSACTION PROCESS

3.10 Systems

Verify customer identification by matching fingerprint. Transfer funds from customer account into business account.

3.10.1. CUSTOMER INFORMATION SELECTION SYSTEM

This system will select customer

information through a bank. For instance, information which is related with name, address, contact number, and money will automatically load in to database. Then analyse this information into different categories.
3.10.2. PAYMENT PROCESSING SYSTEM

This system transfers payment request to a bank,

then automatically checks the customers account balance, to see whether there are sufficient funds in the bank account, in order to make a payment successfully from the customer bank account to the business bank account.
3.10.3. INFORMATION IDENTITI FYING SYSTEM

This system will automatically identify a

customers fingerprint pattern by sending it to a storage programme and matching it against all the fingerprint patterns. Then load individual customer information and process futher step.

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3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Customer information management process 2. Payment transaction process

Functionalities 1. Select and analyse customer information. 2. Store customer information into a security programme. 1. Verity customer identification by matching fingerprint. 2. Transfer funds from customer account into business account.

Technology development (R&D)

Specific Information System(s) Customer information management system Payment processing system Information identifying system

Broad Information System(s) Customer relationship management Transaction processing system Decision support system

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CONCLUSION

To sum up, the problem of bankcard insecurity and inconvenience can be solved by pass coin. First, from the analysis above, the overall attractiveness of an integrated payment industry is high. The business targets a broad market, which means anyone with a bankcard is a potential customer. The suppliers for this business are chip and coin manufacturers; and partners are banks, casinos, airline companies, and scanning machine manufactorers. The business strategy is differentiation. Firstly, a main value chain activity in technology development is identified. Secondly, the two key business processes are customer information management process and payment transaction process, which are linked with value chain activities. Finally, customer information selection, payment processing, and information identifying systems are provided to support the functions in each process. Pass- coin can be used in all daily and financial activites. This makes our life safer and much more conveninent.
REFERENCES

1. BBC News. (2008). Plastic card fraud goes back up. Retrieved from http://news.bbc.co.uk/2/hi/business/7289856.stm 2. Cetorelli, N. (2004). Real effects of bank competition. Journal of Money, Credit, and Banking, 36(3), 543558. Retrieved from http://fic.wharton.upenn.edu/fic/papers/03/0322.pdf 3. Djellal, F., Francoz, D., Gallouj, C., Gallouj, F., & Jacquin, Y. (2003). Revising the definition of research and development in the light of the specificities of services. Science and Public Policy, 30(6), 415429. doi:10.3152/147154303781780227 4. Electonics weekly. (2012). Top Ten Chip Manufacturers. Retrieved from http://www.electronicsweekly.com/mannerisms/ten-best/top-ten-chipmanufacturers-2012-04/ 5. Francisco, S. (n.d.). Coin. Retrieved from https://onlycoin.com 6. Jones, G.R. (2013). Organizational theory, design, and change (7th ed). Essex, England: Pearson. 7. Porter, M. E. (1998). Competitive strategy. New York, NY: Free Press.

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8. Reserve bank of New Zealand. (2013). Register of registered banks in New Zealand. Retrieved from http://www.rbnz.govt.nz/regulation_and_supervision/banks/register/

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