Yvonne. M.

Turner 6881005 1


INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
2014

Name Yvonne M Turner
NetID Ytur068
Group Number: 141
Website Link: http://infosys1102014fcgroup141.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Thursday 2pm
Time Spent on
Assignment:
23 hours Word Count: 1568

















Yvonne. M. Turner 6881005 2



The Ultimate All in One Loyalty Card
INTRODUCTION
Image a world were all you need to put in your wallet or purse is your ID, Effops and an all in
one Loyalty card. People find it a hassle carrying around to many cards and in turn, retailers
spend a lot of money implementing loyalty schemes, hoping to find out about their
customers behaviour. These individaule schemes fail to capture enough customer
intelligence to properly analyses their customers wants and needs. This is because
customers will not always have their loyalty cards on them. The result from this is that each
side misses the benefits that accurate information could produce.
By introducing a simple, easy to use card system, that encompasses all loyalty cards in to
one. GreenDog want to ensure that everyone will be able to enjoy the benefits from using
loyalty cards.
3. BUSINESS SECTION
3.1 VISION
An opportunity for all loyal New Zealand customers and business, to enjoy the benefits and
make savings through hassle free information sharing.







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3.2 INDUSTRY ANALYSIS: LOYALTY CARD INDUSTRY IN NEW ZEALAND
Industry: The Loyalty card industry is a combination of specialist marketing and supported data collection
which helps New Zealand business know more about their customers wants from them (Marketing
Association NZ (2014))
Force: High/Low: Justification:
Buyer power: High
Businesses wanting to learn more about their
customers have a number of marketing and data
collection specialists who will provide them with
a solution. For example Loyalty NZ (Flybuys),
LoyaltySolutions

Supplier power: Low
The key suppliers for this industry are businesses
that can provide supporting data
collection/analytical reporting programmes and
the makers of magnetic strip cards. There are a
number of suppliers, who can provide these
components. This gives businesses within the
industry a number of suppliers to choose from.
For example: Preferred Patron, River Cities, Belly,
Ecards, Zotei, Plasticcardnz

Threat of new entrants: High
Chris Lamers from LoyaltyNZ in an interview (June
2013) said smartphones will play an increasingly
bigger role in targeting deals to scheme
members
With the increase in smartphone users, the threat
of new entrants is high, as more people develop
loyalty/membership applications and move away
from using cards.
For example Smart coffee card created by
Hendrink van Blerk who just got frustrated with
a bulky wallet loaded with 30+ loyalty cards and
has created an application and management
system for coffee shop owners.


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Threat of substitutes: Low
A number of small businesses might manually
keep track of their regulars by using paper cards
or an excel sheets. By using these methods,
however businesses would not be receiving the
full picture on their customers buying habits.
Rivalry among existing
competitors:
High
Rebecca Stevenson (27.01.11) wrote that the
loyalty big boys in New Zealand. From the top are
Fly Buys, AA Rewards, One Card, Farmers Beauty
Card. These traditional rewards providers are
now moving into data and analytical platforms.
For example LoyaltyNZ (Flybuys) has just launch
LAB360
Overall attractiveness of the industry: At first glance, this industry is not overly attractive
to get into. With strong old time players like Flybuys who have partnerships with 45 leaning
brands; are in 75% of households and some consumers feeling that loyalty programmes
have truly reached saturation point (Muller, 2012) it could seem too hard to break into
this industry.
Looking forward however, this industry is rapidly changing to meet the needs of its
customer and their consumers, which is appealing.
3.3 CUSTOMERS AND THEIR NEEDS
GreenDogs aim is to make life easier for New Zealand consumers, by making our scheme
attractive but GreenDog sees retailers and high street stores as our customers. Retailers
wish to increase their profits and to do this they need to build a relationship with their
customers. F.P Reichheld (1996) advices in his book, that by retaining 5% of your customers
a company can gain a 100% profit but how do small retailers achieve this. By getting to
know their customers real needs. Only by thoroughly understanding their customer day-to-
day lives (Jim Haselmaier) can a retailer make changes and boost profits.





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3.4 THE PRODUCT AND SERVICE
GreenDog want to offer retailers the opportunity to see their customers daily purchasing
habits, through our data transaction-sharing platform. GreenDogs platform management
interface will be an umbrella over existing in-house business systems, enabling retailers to
keep their individual rewards schemes and consumers databases.
Through the transactional data feed from each retailer GreenDog will clean, match and
analyse. Then report a clear picture of the customers trends and patterns of behaviour to
the retailers.
3.5 SUPPLIERS AND PARTNERS
To create and maintain our service GreenDog would need a software supplier who is
capable in supporting a large customer relations management system. For this reason, one
of our key suppliers might be Medallia who are used to processing high volumes of data
using cloud-based platforms. Our second key supplier would be My Loyalty who designs,
creates, and makes cards to international loyalty standards.
There are two key partnerships for GreenDogs all in one Loyalty card. NZ Retailers
association and Westfields shopping centres. NZ Retailers association partnership is to
enable the business to connect with small independent business owners and truly find out
retailers day-to-day needs. In turn, GreenDog would offer a discounted rate to their
members. Westfields have nine centres the length and breadth of New Zealand some of
which house some big high-end brands. By working with Westfields GreenDog would ask
the worlds largest shopping centre group to implement our system into each of their
centres stores. GreenDog in return could provide them with the knowledge about the
consumers who visit their centres.



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3.6 STRATEGY: COST LEADERSHIP
GreenDogs competitive advantage is to provide a complete picture of a consumer via our
retailer platform management interface (RPMI). For GreenDog to achieve this, the service
needs to be affordable to all retailers of any size. If our service is too costly to implement
and maintain then retailers will not be attracted to our programme. This means our focus
must be on low cost and broad market.
The overall strategy is therefore Cost Leadership
3.7 VALUE CHAIN ACTIVITY: DELIEVERY OF THE SERVICE OR PRODUCT
To make sure our service adds value and delivers benefits to our retailers. GreenDogs focus
is to smoothly implement our RPMI over each retailers point of sales and reward scheme
systems. In addition, offering constant data security management and providing the
retailers with timely, usable knowledge.
This makes Delivery of the service or product the most important value chain activity for
GreenDog.
3.8 Business Processes
3.8.1. CONSUMER ONLINE REGI STRATION PROCESS - This online front office process
is the first connected consumers have with GreenDog and is the most important. The data
we capture here is the foundation of GreenDogs analysis. Within this process, we need to
put in place steps to confirm the accuracy of the data given and balance this by not make
the questions to personal. Otherwise, consumers might hesitate to tell the truth as they feel
it invades their privacy.

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3.8.2. DATA CONVERSRION PROCESS This process takes the transactional data from
the retailer. Converts the format and makes it compatible. Before uploading to the data
cleansing system, the data is checked for any dirty data before being cross-referenced and
uploaded to consumers profiles. This information is then automatically analysed overnight
to capture a full day. The retailer then receives the results the following morning.




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3.9 Functionalities
3.9.1. CONSUMER ONLINE REGI STRATION PROCESS
Creating a consumer profile account
Send an e-mail confirming registration
3.9.2. DATA CONVERSION PROCESS
Cleanse retailer transactional data
Reading consumer card details
3.10 Systems

3.10.1. CONSUMER PROFILE MANAGEMENT SYSTEM (CPMS) The essential job of
this system is to automatically create, update, and store consumer profile information. To
ensure all business processes run smoothly, it must constantly talk with other key systems.
This CRM base system is the backbone to the business.
3.10.2. DATA CLEANSING SYSTEM (DCS) This systems role is to cleanse, highlight, and
fix dirty data. Whilst still keeping it close the original retailer transactional data uploaded. In
addition, measure and control the quality of data in the data warehouse.
3.10. PROFILE CROSS-REFERENCING MANAGEMENT SYSTEM (PCMS) The function
of this system is to read the membership number from the clean data and upload the
purchasing information to the correct profile in CPMS. If this is not performed correctly,
GreenDog is unable to share accrete information.

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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)

Delivery of
the product
and service
1. Consumer
online
registration
process
1. Send an e-mail confirming registration

2. Creating a consumer profile account
Communication
management system
Consumer Profile
management system
Collaboration System
Customer relationship
management system
2. Retailer
platform
management
process
3. Cleanse retailer transactional data

4. Reading consumer card details
Data cleansing System
Profile cross-referencing
management system
Enterprise Information
system
Customer relationship
management system
11

CONCLUSION
GreenDogs report will give retailers clear direction from market-basket anaysis. Through
informaton sharing the retailers will gain vaulable knowledge on what their customers want
to buy and guide retailers on which items to stock. This will give them the benefit of not
having to put, slow moving stock items on sale. In turn, helping to increase revenue and
reduce costs. With retailers having this competitive advantage it will aid the retailer to
generate growth through new revenue streams. Passing these benefits to the consumer. All
from swiping The Ultimate All in One Loyalty Card.
REFERENCES

1. Marketing Association (2014). About Loyalty New Zeland
http://www.marketing.org.nz/Section?Action=View&Section_id=220

2. Rogers, C (01.06.2013). The lowdown on loyalty schemes, (Quote from Chris Lamers,
Head of customer enagagment for loyalty NZ). Business Day
http://www.stuff.co.nz/business/money/8740676/The-lowdown-on-loyalty-schemes

3. Hendrick van Blerk, (CEO of Smart Coffee) Company website
http://www.smartcoffeecard.co.nz/public/AboutUs.aspx.
4. Stevenson R, (27.01.11) The attraction of loyalty cards, Business Day
http://www.stuff.co.nz/business/money/4584168/The-attraction-of-loyalty-cards

5. Muller T, (July 212) Can customer loyalty be bought?, MM Research
http://www.mm-research.com/Can+Customer+Loyalty+be+Bought
6. Reichheld F.P, (1996). The Hidden Force Behind Growth, Profits and Lasting Value.
Harvard Business School Press
7. Haselmaier J, (unknown) Think You Know How To Meet Customer Needs? (Published
Eassy) Pragmatic Marketing.
http://www.pragmaticmarketing.com//resources/think-you-know-how-to-meet-
customer-needs?p=1

Acknowledgments
I would like to thank my deliverable one collaborator Fang Jun Tok for her contribution to
this business concept and her ideas.