Name Natalie Theron
NetID nthe579
Group Number: 470
Website Link: http://infosys1102014s1group470.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Friday 12pm
Time Spent on
20 hours
Word Count:
cover page


In today’s fast-paced lifestyle, drowsy driving is a factor in over 20% of crashes in NZ (NZTA,
2005), leading to injuries or death. The solution we propose is a device called ‘Alert Alive’.
This device is placed on the dashboard of a car and monitors eye and head movement.
When ‘Alert Alive’ detects a state of drowsiness, an alarm will sound and wake the driver
before any accidents occur, solving the problem.
3.1 Vision
To make the New Zealand’s roads a safer place and improve the wellbeing of all road users,
by creating the best, easy-to use fatigue detection device.
3.2 Industry Analysis: New Zealand Driver Fatigue Detection Industry
Industry: New Zealand Driver Fatigue Detection Industry
Force: High/Low: Justification:
Buyer power: High
There are quite a few alternatives offered in the
industry such as cars with built-in driver
drowsiness detection systems, apps and other
devices (eg head devices) which can detect driver
fatigue so buyers have many options. (Driver
Drowsiness Detection System for Cars, n.d.)
Supplier power: Low The products in the industry consist of standard
compononents (eg infrared camera, speakers,
microchip (Newcomb, 2013)). Suppliers have low
power as standardised parts can be obtained
from many suppliers and the manufacturing

company can choose the best price.
Threat of new entrants: Low A high entry barrier to the industry exists in the
form of technical expertise. Complicated
algorithms and software development are
required to produce such a device which requires
highly specialized knowledge and skills making
the threat of new entrants quite low. (Parmar,
Threat of substitutes: Low The only replacement for fatigue detection
devices/systems are things such as putting music
very loud, caffeine intake or talking to someone
while driving. However, this is only a temporary
solution and not a long-term substitute. (Drowsy
Driving, n.d.)
Rivalry among existing
High High competition exists between existing systems
such as Mercedes-Benz’ Attention Assist (Leipzig,
2008) and Volvo’s Driver Alert Control (Volvo
Group Global Newsroom, 2007). Also, the
tendency to develop mobile applications is
rapidly increasing competion.

Overall attractiveness of the industry: The industry is relatively attractive as supplier power
is quite low and threat of substitutes and new entrants are also low once the industry has
been entered. The only unattractive forces are buyer power being high and rivalry amoungst
existing competitors is high. With a good strategy, marketing techniques, partnerships and a
good reputation, these forces may be overcome and the industry can be attractive.

3.3 Customers and Thei r Needs
The main target group for ‘Alert Alive’ will be ordinary drivers who’s lifestyle may cause
them to be sleep deprived such as parents with young children or people driving long
distances. They need a device which is easy to use and can help them stay awake in order to
arrive at their destination without falling asleep, ensuring safety. (How To Avoid Drowsy
Driving, n.d.)
Other customers can be companies employing long-shift drivers of large vehicles (eg
bulldozers/trucks). These drivers need a device to keep them awake during their long shifts
to avoid accidents. (Solon, 2013)
3.4 The Product and Service
When people purchase ‘Alert Alive’ it will be placed on the dashboard of the car. The device
will be activated simply by pressing a button. When the device detects through image
processing that the driver’s eyes are closed, an alarm will sound to alert the driver. This will
cause the driver to wake up shortly after he has fallen asleep, and avoid an accident.
Customer needs are met as the device ensures their safety, is reliable and easy to use. (A
Companies employing long-shift drivers’ needs are met as they can ensure safety, avoid
accidents, decrease costs and increase productivity to increase profit. (Solon, 2013)
3.5 Suppliers and Partners
The Infrared camera component will be supplied by FLIR. These cameras for ‘Alert Alive’ can
be purchased, imported and collected from FLIR’s local distributor in Auckland (FLIR: Our
Company, n.d.). Attwoods, NZ's most experienced packager will supply 10cmx10cmx15cm
boxes in which ‘Alert Alive’ will packaged after adding the labels. (Attwoods, n.d.) Both
these suppliers will supply quality materials in order to produce a high standard final

‘Alert Alive’ can partner with AA Insurance and the NZ governent. Eg, AA insurance company
can have a package offerering people who have ‘Alert Alive’ installed in their car a lower

insurance premium. (AA Travel Insurance, n.d.) The government may provide funds to
enable ‘Alert Alive’ to be sold at a lower price as this will benefit the whole community and
decrease future medical costs.
‘Alert Alive’ is aimed at all people who have cars and have the need to stay awake on the
road to ensure their own and other’s safety. Thus, the product is aimed at a broad market.
In order to competitively compete in the market where expensive systems are the largest
competitiors, ‘Alert Alive’ will have low cost. They will do this by buying materials for the
device in bulk from suppliers and if the governement agrees to partnership, this will help
further to keep costs down.
The overall strategy is therefore Cost Leadership
3.7 Value Chain Activity: MAKE THE PRODUCT OR SERVICE.
The most important value chain activity for this business is Make the product
It’s important that ‘Alert Alive’ is made to be low cost and reliable. This will be done by
having tight control over the assembly process in this VCA, including buying components in
bulk to ensure low cost, following the cost leadership strategy. Also the product will be
intensively tested to ensure reliability. Making the product is most important as ‘Alert Alive’
will not be successful in the market if this VCA is not correctly controlled, following the cost
leadership strategy in order to achieve the vision of making NZ roads safer.


3.8 Business Processes
3.8.1. PRODUCT ASSEMBLY PROCESS –This process determines what components are needed
for the product, to check Warehouse for available stock and order components if necessary.
These components are brought together at the assebly line to produce the final product.
Without this process, there will exist no product to ‘make the roads safer’ and it is vital that
this process is carried out in an efficient and controlled manner to ensure the product

3.8.2. PRODUCT TESTING PROCESS - This process ensures the quality of the ‘Alert Alive’
before it is sent to be packaged and distributed. It’s important that the product is tested as
part of the making activity to evaluate the product and to send it back to assembly line if it
doesn’t work to ensure product reliability.


3.9 Functionalities
 Assemble all needed components from Warehouse
 Insert assembled components onto device framework
 Test capability of product
 Send products with faulty components back to assembly department
3.10 Systems

3.10. 1. INVENTORY MANAGEMENT SYSTEM – This system ensures that there is always
sufficient stock in the Warehouse to produce ‘Alert Alive’ and supports functionality of
assembling the components. The system tracks component inventory left and sends a
report to the ordering department of low-stock components. This adds value by ensuring
the assebly line never has to wait on out-of-stock components, saving time and keeping the
product cost down, generating value. This system supports the vision as it enables
customers to buy quality products at low cost, on time, in specification, improving
customers’ wellbeing.
3.10. 2. PRODUCT ASSEMBLY SYSTEM – This supports the functionality of assembling all
components onto the device framework. This automated system will be programmed to
insert all assebled components and keep track of how many products are finished and sent
to testing department. This increases efficiency and productivity as it removes human error
to fulfil the vision of creating the best, easy to use fatigue detection device to make NZ
roads safer.
3.10. 3. COMPONENT EVALUATION SYSTEM – The system will test each product, evaluating
whether all components are in good order or whether there is a fault in the product, thus
supporting the functionality of testing the capability of the product. The system will decide
whether to send the product back to assebly line or to clear it for packaging. This is
important to support the vision as it ensures no faulty products are sold to customers and
thus makes NZ roads safer by selling reliable products which will help people stay awake at
the wheel, not faulty ones that don’t work.

3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Make the
product or
1. Product
1. Assemble all needed components
from Warehouse
2. Insert assembled components onto
device framework

Inventory management

Product assembly system

Transaction Processing

Transaction Processing

3. Product Testing
1. Test capability of product
2. Send products with faulty
components back to assembly
Component Evaluation

Decision Support system


In conclusion, there is definitely a market for the ‘Alert Alive’ device as it solves the problem
of drowsy driving by providing a product which is placed on the dashboard of a vehicle to
monitor head and eye movements and prevent accidents. IS is very important, especially
when making the product and using the assembling system, as this will ensure the quality
and efficiency of production. This saves time and creates value for customers by offerering
them a reliable, easy to use, low cost product. Without information systems many functions
(eg. inventory management) would have had to be done by human labour, lengthening the
production processes, increasing costs and ‘Alert Alive’ may not be succesful. Thus, IS is vital
in the organisation as it adds value to automating processes, saving time and creating a
quality product to fulfil the vision of making NZ road a safer place, generating value for both
the organisation and the country.


1. Leipzig. (2008). TecDay Real Life Safety. Retrieved from

2. Volvo Car Group. (2007). Volvo Cars introduces new systems for alerting tired and
distracted drivers. Retrieved from https://www.media.volvocars.com/global/en-

3. Newcomb. (2013). Car-tech spotlight: Ford Fusion Hybrid’s Driver Alert System.
Retrieved from http://editorial.autos.msn.com/blogs/post--car-tech-spotlight-ford-

4. Compass. (n.d.). Driver Drowsiness Detection System for Cars. Retrieved from

5. Narayan. (2014). IIT-M’s wake-up call for tired drivers. . Retrieved from

6. Hu SJ, et al. (2011). Assembly system design and operations for product
variety. CIRP Annals Manufacturing, 60(2), 5-15. doi:10.1016/j.cirp.2011.05.004

7. Attwoods. (n.d.). Quality packaging solutions: Attwoods, the packaging people. .
Retrieved from http://www.attwoods.co.nz

8. FLIR. (n.d.). Our Company. Retrieved from

9. Solon. (2013). Eye-tracking system monitors driver fatigue, prevents sleeping at
wheel. Retrieved from http://www.wired.co.uk/news/archive/2013-05/28/eye-