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

Name Victoria Holyoake
NetID vhol726
Group Number: 238
Website Link: http://infosys1102014s1group238.blogspot.co.nz/p/d1.html
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Wednesday 1pm
Time Spent on
Assignment:
19 hours Word Count: 1648

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DEHYDRATION
INTRODUCTION
“Almost all diseases can be linked to dehydration” (Heimlich, 2012). The main causes of this
problem are a lack of knowledge and desire regarding water and the symptoms are
potentially fatal. To help solve this issue we have designed a drink bottle, which measures
individual’s saliva levels to calculate and display the required amount of water to consume
for adequate hydration. This will address the root causes of the problem and encourage the
consumption of water. It’s effectivness will be anaylised by the numerical change in people
admitted to hospital with dehydration as a symptom.
3. BUSINESS SECTION
3.1 Vision
To improve worldwide health by making a technologically advanced, easy to use product
that will effectively monitor water consumption to aid humanity.
3.2 Industry Analysis
Industry: Portable hydration monitoring industry.
This industry encompasses all methods of monitoring individuals hydration levels portably
such as water bottles, apps and watches.
Force: High/Low: Justification:
Buyer power: High Buyers have many choices when buying portable
hydration monitors. There is an large yet
homogenous range sold online and products are
being developed such as BluFit and Cantimer who
are soon releasing new products to the market.
There are also a lot of substitutes available so

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buyers have very high power.
Supplier power: Low There is a significant number of suppliers for this
industry because the necessary component are
not unique until the product is created. This is the
case for the LCD screens, exemplified by the news
article “LG, Samsung Display feel heat from little-
known Chinese LCD makers.” (Kim, 2013). This
shows anyone can manufacture the components
so suppliers have low power.
Threat of new entrants: Low “Measuring dehydration quickly and non-
invasively has been a difficult task due to
variation between individuals and lack of easily
targetable indicators.“ (Gibbs, R. et al, 2013). For
a competitor to enter the market with a new
product they must conduct substantial R&D to
gain a competitive advantage. This is likely to
become high threat in the future but in the
current market is low.
Threat of substitutes: High “Many methods exist for hydration status
measurement; however only a few methods are
valid and reliable for clinical measurements.”
(Niemann, 2012). There are numerous substitutes
for this industry but these can often be unreliable
and/or inconvenient. Substitutes include methods
such as online tests, apps and urine sampling.
Rivalry among existing High There are many competing products such as

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competitors: BluFit who “set out to create the first smart water
bottle!” (Indiegogo, 2014) and Cantimer who
“intends to introduce a family of hand-held
devices…that provide…feedback on changes
in…hydration.” (Cantimer, 2009) Each competitor
tries to establish their own completive edge by
being the ‘first.’
Overall attractiveness of the industry: This industry is relatively unattractive and will only
become more so in the future as more competitors will be able to enter. This means speed of
entry and competitive advantage are a necessity.
3.3 Customers and Thei r Needs
Our potential customers are males and females between the ages of 5 – 75, as people older
and younger are unlikely to use drink bottles. More specifically this encompasses students,
as a large proportion are dehydrated, establishing this as a priority target market. Kids are
another target as “Children have higher risks of dehydration because their thirst
mechanisms are immature”. (Good Hydration, 2014). Our customers must have access to
clean water and are likely to be a moderate to high-income earner, as our product has a
high quality focus. Athletes are also a large proportion of our market because “Dehydration
influences several aspects of exercise in a negative way” (Decker, 2014).
3.4 The Product and Service
Our water bottle will be an effective solution for these groups as it is accurate, easy to use
and durable. When the user takes a drink of water a built in cap sensor measures their saliva
and displays it’s recording on the screen with the amount of water to consume for optimal
hydration. This allows our customers to easily see their hydration level and will know their
individualised amount of water to consume. This satisfies the needs of our users and
addresses the core causes. Our product will be one of the best on the market as “Existing
bioimpedance devices are inconvenient as they are bulky and do not allow for easy off-

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loading and display of data.” (Gibbs, R. et al, 2013). This will ensure we gain a competitive
edge as our drink bottle counteracts these issues.
3.5 Suppliers and Partners
One potential suppliers would be Midas who aim "To provide fast, reliable service, supported by
a high level of technical and commercial skills, delivered with the personal touch.” (Midas,
2014). They sell a wide range of customised, high quality LCD screens necessary for our product.
Another supplier could be Aotea Plastics Industries Limited who state that “The diversity of our
manufacturing processes has led us…to better serve our customers.” (Aotea Plastics Industries
Ltd, 2014). They focus on making custom drink bottles of high quality, which is perfect for our
product. We would receive our necessary materials off these suppliers in exchange for cash.
A potential partner is the American College of Sports Medicine who are heavily involved in
researching hydration measures. This would be mutually beneficial we will have access to
advanced hydration monitoring methods and helps ACSM receive recognition of their work.
Another potential partner is the New Zealand health board as our product would benefit
such a large proportion of society it would be highly beneficial to receive their endorsement
and in doing so would raise awareness for them.
3.6 Strategy
Our drink bottle will have a very broad market due to our extensive customer range as our
product is suited to most people. Our product would benefit a vast majority of society and due
to it’s ease and effectiveness this customer range is highly likely to purchase our product,
therefore has a broad competitive scope.
Our drink bottle will be more expensive than existing ones on the market due to the high quality
and effectiveness of technology incorporated, giving us a high cost strategy. This will be suitable
for our target market as their income bracket would fit this cost structure.
The overall strategy is therefore Differentiation.

3.7 Value Chain Activity

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The most important value chain activity for this business is Procurement.
To ensure our product achieves our vision sourcing high quality materials will be a main
priority for our company. This will ensure our product is easy to use, durable and equipped
with the most advanced technology to guarantee it’s effectiveness..
3.8 Business Processes
3.8.1. SUPPLIER SELECTION PROCESS - To ensure we order high quality materials, selecting
suitable suppliers will be a very structured process so we can accomplish our vision. Once
management has established the material requirements and identified potential suppliers
we will order a sample product which quality assurance will evaluate to confirm it meets our
specifications. If it does not we will reject the supplier. If it does meet quality specifications
we will attain a quote, to determine the best supplier for our business.


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3.8.2. INVENTORY PAYMENT PROCESS - Due our high quality focus the majority of our
materials are high cost so any significant or repetitive excess payments could have
potentially devastating effects on our businesses finances, so we have established a
preventative route in our payment process. If there is an error in the invoice we will contact
the supplier for compensation, either of materials or money to counteract this issue. We will
decided whether or not to change suppliers based on how they handle this compensation
process.


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3.9 Functionalities
3.9.1. SUPPLIER SELECTION PROCESS
 Establish Material Requirement
 Receive and Evaluate Samples
3.9.2. INVENTORY PAYMENT PROCESS
 Receive and Check Invoice
 Contact supplier with complaint
3.10 Systems

3.10. 1. MATERI ALS ANALYSIS SYSTEM - To begin production of our product, this DSS analyses
what the specific materials needed for production are, which is essential as it is the
foundation step for product creation. This system supports establishing what materials are
required to create a product that will achieve our vision.
3.10. 2. QUALI TY ANALYSI S SYSTEM - To accomplish our vision, creating a high quality product
is essential. Our quality analysis system will evaluate samples from potential suppliers to
assess if they meet our specifications. This system will guarantee we only purchase high
quality materials. This system also supports managers when they contact suppliers with
complaints. Managers decided whether or not to continue purchasing from a supplier by
analysing the quality of the outcome, notably the compensation. This system will support
both higher levelled management and the supply chain make decisions as to the quality of
both the product and supplier relationship.
3.10. 3. INVENTORY MANAGEMENT SYSTEM - Our expenses are relatively high due to our high
quality focus so any discrepancy in the inventory order needs to be highlighted. If inventory
is not managed effectively, especially in the start up of the business by receiving and
checking the invoices in the supply chain it could result in huge losses and inability to create
our product and fulfill our vision.

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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)

Procurement
1. Supplier
Selection
process
1. Establish material requirement

2. Receive and evaluate samples
Materials Analysis system

Quality Analysis system
Decision Support System

Supply Chain Management
System
2. Inventory
Payment
process
1. Receive and check invoices

2. Contact suppliers with complaint
Inventory Management
System


Quality Analysis system
Supply Chain Management
System

Executive Information
System

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CONCLUSION
Our drink bottle is an effective solution to portably monitor dehydration. To create a high
quality product we will implement a range of systems and processes with a substantial focus
on procurement so our product achieves differentiation, which will ensure we gain a
competitive advantage in our industry. The use of information systems will add value to the
business and guarantee the needs of our customers and suppliers are met to achieve our
vision.

REFERENCES

1. Heimlich, Dr. (2012). Dehydration Can Causes Disease. Retrieved from
http://www.askdrheimlich.com/blog/dehydration-can-causes-disease/

2. Kim, M (2013, September 16). LG, Samsung Display feel heat from little-known Chinese
LCD makers. Reuters. Retrieved from:http://www.reuters.com/article/2013/09/16/us-
lcd-china-idUSBRE98F0XW20130916

3. Gibbs, R., Hall, D., Haws, S., Scott, M., & Welker, C. (2013). Capstone Senior Design
Project Non-­Invasive Hydration Monitor. Vanderbilt University Department of
Biomedical Engineering. Retrieved from:
https://my.vanderbilt.edu/dehydrationmonitor/files/2013/10/NCIIAGrant_02_06_141.
pdf

4. Niemann, A. (2012). The Effect of Instrument Type on the Measure of Hydration Status.
Indiana: Indiana State University, Applied Medicine and Rehabilitation. Retrieved from:
http://www.indstate.edu/amr/pdfs/research-project-
forms/andrwniemannthesischapters2012.pdf

5. Indiegogo. (2014). BluFit Bottle. Retrieved from:
https://www.indiegogo.com/projects/blufit-bottle

6. Cantimer. (2009). Hydration Measurement and Monitoring. Retrieved from:
http://www.cantimer.com/markets/hydration/

7. Good Hydration. (2014). The wonders of water: Refresh, refuel and revitalise. Retrieved
from: http://relaj.com/good-hydration/2012/11/dehydration-may-hurt-students-grades/

8. Decker, M. (2014). The Effects of Hydration on Athletic Performance. California: California
University of Pennsylvania, Undergraduate Research Community. Retrieved from:

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http://www.kon.org/urc/v10/athletic-training/decker.html

9. Aotea Plastics Industries Ltd. (2014). The specialist plastics moulders. Retrieved from:
http://www.aoteaplas.co.nz/home/home_intro
10. Midas. (2014). Midas Components Ltd. Retrieved from: http://www.midasdisplays.com