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Name Jason Chiang
NetID Jchi789
Group Number: 013
Website Link:
Tutorial Details
Tutor: Day: Time:
Claris Monday 1pm
Time Spent on
25 hours Word Count: 1523


Parking in Auckland is inconvenient as there is an uncertainty surrounding parking locations
with few alternatives. Most importantly, existing parking metres are few in number and only
accept coins or credit cards. An absence of convenience has resulted in frustrated drivers,
depletion of resources, illegal parking and an inefficient use of time. An opportunity exists to
meet the needs of the public and cater for an existing demand for convenience. This can be
achieved by developing a network of systems that integrate nationwide parking lots to
deliver a valuable fully automated parking payment solution.
3.1 Vision
To create a superior parking payment information system which provides unparalleled value
to each individual driver of the general public.
3.2 Industry Analysis: Automated Parking Payment Solutions Industry
The Milson NFC parking information card system is an effective and efficient replacement
solution for parking exit booths and roadside meters. It falls within the Automated Parking
Payment Solution Industry.
Force: High/Low: Justification:
Buyer power: Low Buyer power in this industry is low, due to a lack
of substitute for the services provided. Buyers
experience low negotiating leverage as services
are differentiated and provide a lot of value for
users. Buyers are also less price-sensitive, as the
service often only requires minimal costs.


Supplier power: High Supplier power is high because there are only a
few large reliable suppliers that provide and
manufacture the materials and electronic
components that businesses requires for NFC
cards and corresponding systems. Further, it is
possible these suppliers may threaten the
industry by devising these information systems
themselves (Porter, 2008).
Threat of new entrants: Low Breaking into the industry and being able to
develop both the hardware and software requires
a high level of technological expertise and capital.
The low buyer power also means that the
industry is dominated by a couple of major
players in the market such as Global Parking
Solutions (2014).
Threat of substitutes: Low The threats of substitutes for replacing the
current system of parking meters are low, with
the closest being parking wardens in service
booths. This industry’s products are
differentiated and hard to replace.
Rivalry among existing
High The market of capital-driven competitors means
that each must compete for government funding
and contracts with major parking businesses
regarding their parking payment solutions.
Overall attractiveness of the industry: Overall, the automated parking payment solutions
industry is attractive as there are room for further growth and expansion. This industry


benefits from low threats of new entrants, substitute products and buyer power. However
rivalry is high, but there is confidence that our system is sufficiently differentiated to
3.3 Customers and Thei r Needs
The main customers targeted consist of everyday drivers in Auckland. Potentially, this group
may expand as the system moves across New Zealand and as more individuals choose to
drive over using unreliable public transport. Drivers are always seeking options that are
convenient, provide value and efficient in the national parking system. Our Milson NFC
parking card will deliver sophisticated organised payment options from the convenience of a
pocket-sized card.
3.4 The Product and Service
Our product is a NFC parking card that assists everyday drivers in Auckland facing parking
payment frustrations. Its primary goal is to be able to collect and organise parking
information specific to that one customer and their vehicle. The card will identify when the
customer’s vehicle enters a parking lot once swiped on entry via a barcode located on the
card. This is registered to the customer’s private vehicle. Calculations and the correct rate
will be charged once swiping out at the parking lots’ exit. Individuals can easily pre-load and
top-up their NFC balance online. The product also contains additional features such as
discounted parking plans and penalties for customers who attempt to cheat the system.
Essentially, this product fulfils the unmet needs of convenience, organised information and
3.5 Suppliers and Partners
Suppliers include smartcard manufacturers such as Placard (2014). Major parking providers
across Auckland such as Tournament, Auckland Transport and Wilson will need to be
contracted to agree the system installation. The government is a potential partner as it may
provide funding.
3.6 Strategy:


The business adopts a focused strategy with a narrow market and high costs. Currently the
product is only targeted at a narrow market of drivers in Auckland. However, the future
potential market may expand to the whole of New Zealand. Differentiation is crucial as this
project will involve high establishing costs especially for establishing technological areas.
This results in a focused strategy that focuses on differentiation.
The overall strategy is therefore focused strategy.
3.7 Value Chain Activity: Technology and development
The most important value chain activity for this business is Technology and development.
In order to remain competitive, technology and development is essential to ensure our
automated parking payment system is superior to other parking payment systems in terms
of using the most advanced technology. Having unmatched technology will align with our
vision and differentiation strategy.
3.8 Business Processes
3.8.1. SOFTWARE DEVELOPMENT PROCESS – A key objective of the business is to be able to
develop a product with underlying software which provides essential requirements to meet
the customers’ wants. Detailed analysis of the scope of development and methods of
implementation needed is crucial to a business. This process reduces the risks of bugs and
ensures regular technological maintenance and improvements can be made to handle
problems discovered in the future. It enables documentation of software internal design for
the purpose of future maintenance and enhancement expansions as new market demands
occur. For the business to stay competitive, in the automated parking payment system
industry a top quality operating software for the product is required.




3.8.2. PRODUCT RESEARCH PROCESS – This is an essential process to the business as it
provides critical information, which helps to support executive decision making in the
company. It helps the business predict the future as the business is able to gather and
analyse user needs by making various models. The business is then able to plan and consider
strategies that are most beneficial to them and achieve the best results. The product
research process can importantly achieve an innovative product to meet the consumer’s
requirements. This process is core to creating useful implementable knowledge by
transforming it from raw data.





3.9 Functionalities
 Provide software to create new prototypes
 Provide platform to construct software architecture
 Analyse date for patterns and trends
 Process data through different filters
 Store data in data warehouse
3.10 Systems

3.10. 1. RESEARCH AND DEVELOPMENT ERP – This will allow detailed analysis with the storage
of useful data, which can be transformed into knowledge used in product planning and
execution activities. This helps to streamline software development functionalities with
increased efficiency due to the maximisation of resource performance. It will build high-
quality architecture and software prototypes in a cost-effective yet timely manner.
3.10. 2. DATA WAREHOUSE SYSTEM – Information needed for business analysis activities from
operational databases can be collected and stored in a central repository with the help of a
data warehouse. Business research and data mining processes are possible through access
to information required. It provides functionalities including data storage and prepares the
data for processing and analysis. With the data warehouse, the business is able to reach its
vision, as data is available for critical decisions.
3.10. 3. DATABASE MANAGEMENT SYSTEM – Controlled access to various databases with
storage of operational and transactional information is possible. The transactional
processing functionality can be used to prevent the duplication of customer information.
Using a compact and organised manner, it stores and backs up related data but also enables
various users secure access. This supports the information sharing functionality and
complements the business vision by protecting vital competitive information to enable its
technology to stay superior over rivals.


3.11. Summary Table: Value Chain to Systems

Value Chain
Specific Information
Broad Information

1. Software
t process
1. Provide platform to construct software

2. Provide software to create new prototype
Research and development

Enterprise Resource
Planning system

2. Product
1. Analyse data for patterns and trends

2. Store data in the data warehouse

3. Process data through different filters
Data Warehouse System

Database Management
Enterprise Resource
Planning system


Auckland drivers currently face a day-to-day problem as the New Zealand Automated
Parking Payment System currently suffers from a lack of efficiency. The Milson NFC parking
information solution aims to discard this problem by integrating the major parking providers
in New Zealand and using the NFC card to store each individual customer’s parking duration
information as well as the running account balance. Ongoing technology and development
will continue to ensure the business remains competitive in the automated parking payment
industry. To achieve this, product research and software development processes supported
by various systems will be required. The industry has potential growth and is overall an
attractive industry.


1. Baltzan, P., Lynch, K. & Blakey, P. (2013). Business driven information systems (2nd
Australian/New Zealand ed.). Australia : McGraw-Hill Australia Pty Ltd

2. Global Parking Solutions. (2014). Who We Are. Retrieved from:

3. Placard Pty Ltd. (2014). Who We Are. Retrieved from:

4. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard
Business Review, 86(1), 78-93.

5. Transport Blog. (2014). Transport is an increasing burden for New Zealanders.
Retrieved from

6. Wilson Parking: (2014) Book a bay. Retrieved from:

7. Tournament parking made easy. (2012). Book a park. Retrieved from