INFOSYS 100; DELIVERABLE 2

Aston O'Keeffe 6760692
Introduction
People are becoming increasingly lazy due to their dependence on technology to do simple, everyday
tasks, having detrimental impacts on the populations health. Decreased levels of fitness have been proven to
contribute to the obesity epidemic, coronary heart disease, diabetes, cancer, sleep apnea, depression and
many more (C. Hillman). I believe that generally people are unaware of the importance of exercise,
predominantly using weight as a measurement of health rather than fitness levels. This can be a truly
inaccurate representation. Together with my partner, we have created new train and bus ticket machines that
reward exercise for a free transport ticket. By collaborating with Nintendo, for their Wii Fit technology, and
social media, sites to help raise support and awareness, we believe this technology with help achieve our
vision.
3. Business Section
3.1. Your Vision.
We want to provide the forum to raise awareness, provide incentive and the opportunity to increase the level
of exercise in New Zealand in a fun and accessible manner.
3.2. Your Industry Analysis.
The industry that our business operates within is the community sector in New Zealand focused on
benefiting the social and health aspects. We believe our business is philanthropic. As our business in non-for
profit, it is designed to benefit the population and in turn, the economy through lowering spending on
healthcare.
Porters Five Forces is the framework that I am going to use to analyze the attractiveness of this industry and
the business strategy development. The five Forces are bargaining power of suppliers, bargaining power of
consumers, threat of new entrants, threat of substitute products and the intensity of competitive rivalry. It is
slightly applying this framework to a non-for profit organisation. Porters Five Forces can be used by non-
profit organisations as a tool to investigate competition for donors and consumers, and to make sure that
future influences can be addressed and planned for.
Force High/low Justification
Buyer power Low
For non-profit organizations, “buyers” refer
broadly to include consumers, government,
philanthropic funders, donors and corporate
sponsors/partners. Buyers have the power to
apply considerable pressures on the community
sector and may form the situation whereby there
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is increased competition for the same group of
funding. The way that buyer satisfaction is
measured could be through satisfaction surveys
and routinely communication with stakeholders.
I believe that the buyer power is high as donors
have all the power in relation to funding.
However I believe from the consumer point of
view, supplier power could be perceived as low
in this industry. This is because there are many
substitutes. In saying this, our product is pretty
unique on comparison with other products in the
industry.
Supplier power High
Suppliers depend on the type of non-for profit
organisation. They may include government,
other profit or non-for profit organisations.
Suppliers may include government
organisations and other non-profit
organizations. Nintendo Wii and social media
sites such as Facebook, Twitter and Instagram
fund our organisation. Nintendo have made the
machines, paying for initial, one off set up costs.
It would not be too costly or difficult, as they
have already developed a lot of the technology.
The incentive for this is that Nintendo get
positive publicity. The social media sites get
increased exposure, which gives them more
information to use for advertising. I think that
there is high supplier power as such businesses
heavily reply on donors to operate. Additionally,
I do think that it is dependent on the economy.
For example, if there is a recession, it is less
likely that money will be spent on non-for-
profits.
Threat of new entrants Low
In terms of non-profit organisations, new
entrants may mean that there is increased
competition for memberships and donations,
which may decrease the amount of money
raised by the non-profit organization. In non-
profit organizations providing human welfare
services, additional entrants in the market may
provide greater choice for government tenders
and health insurance providers; which may
result in the non-profit organization being
forced into providing additional services for the
same level of funding. As this is a low profit
industry, the threat of new entrants is low.
Threat of substitutes High
The threat of substitute is the potential threat of
another good or service, which can limit the
profitability of an organisation. In a non-for
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profit industry, the threat of substitute refers to
the money lost when suppliers fund a different
organisation. There are many charity
organisation and non-for profits out in the
market so the threat of substitutes is high. Its
important to market our product as unique and
worth funding, which we believe is true.
Rivalry among existing
competitors
Medium
As with any industry, there is competition
between not-for-profit organizations for
benefactors, sponsorships, government grants as
well as consumers share. To analyse rivalry, it is
essential to review a number of competitors
offering similar goods or services in comparison
with the number of consumers in the respective
market. It can also be measured by comparing
the number of non-for-profit orgs. in the
community and compare them with the number
of donators or money given. This can show how
concentrated, and therefore how competitive a
market is for attracting money. Like with all
businesses, profitability is still a significant
consideration for businesses in the community
sector. They need to evaluate the fluctuations in
society and industry that may impact on their
ability to deliver their services. Specifically for
our company, we have powerful level of market
due to the social media aspect of our design and
also the competitive advantage that there are not
many products like ours on the market.
However, there are plenty of other charity‟s that
funded making it more the market more
competitive.
Operating within a non-for-profit market, the overall attractiveness of this industry is low, as I believe the
main feature of attractiveness is profitability.
3.3. Your Customer and their needs.
Our customer include the general public, but more specifically, the commuters who use public transport due
to their increased likely who that they will use the machines and also people who use social media. Our
product is supposed to benefit the population, on the widest demographic as possible in order to reach as
many people with our message. People who use social media, which is highly prevalent in our society, are
also our customers, as photos of people using our machines are shared on platforms like Facebook, Twitter
and Instagram. This means that the social media aspect has to be user friendly; simple, quick and functional,
in order for people to have ease of use. The needs of the people who use our machines will be making the
experience fun and easy to do. This ensures positive feedback and customer satisfaction, which is necessary
for our product to be successful. There also has to be enough room for people to perform the exercises,
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Aston O'Keeffe 6760692
instructions on how to use the machines, and also the machines need to be marketed in the proper way so
that people want to use them.
3.4. How your Product/Service fulfills the customer needs identified above.
Our product fulfills these needs. Our machines are aesthetically pleasing, using bright colours and lights to
attract attention and stand out from the regular ticket machines. Thy have a large, high quality touch screen
and come with an instructional video in multiple languages to ensure a wide variety of people can access
them. The exercises are clearly performed in the video in order to make sure that the users know how to
complete the task. The machine itself also has verbal cues, to make it At the end of the exercise, the
machines inbuilt camera takes a picture of the user, and gives them the option to upload it to their preferred
social media sight. This is very easy, as the user simply has to put their user name and password using the
touch screen and at the end of the session, you are automatically logged out. This is done by the session
„timing out‟ after the allotted 2 minutes. If they do not want to do this at the time, they can simply go home
later when they have time and visit our Facebook page to see their photo, which they can easily share. To
make sure the user leaves happy and encourage, the machine gives them verbal feedback and and thanks
them for using the machine, returning their exercise for the free train/bus ticket. There is also an optional
and brief survey on the whole experience. If the customer chooses to proceed and fill out the questionnaire,
they select their preferred answer to a multiple choice question such as „did you enjoy this experience‟,
„would you use this machine again‟, „does this promote exercise in a way that is fun and interactive‟, „are
you aware of the importance of exercise?‟. This is ideal for us as it gives us really important feedback.
3.5. Your Suppliers and Partners.
Our partners include Wii Fit, which is developed by Nintendo. They have sponsored us as a charity to help
our message and promote themselves in the process. There are collaborations with other health related
business that want to contribute and raise awareness of the importance of exercise such as Les Mills. Their
incentive is the publicity they get in return, as the machines have adverts promoting them. The government
have agreed to help set up the initial costs of the machines along with Wii fit, using the New Zealand
Transport agencies and their part of their health budget. They have agreed to this as it is a good way for
them to promote a healthier lifestyle, which is one of the aims of the government health plan. This reduces
costs in the long run. Additionally, as Nintendo already have the technology developed, there will be lower
R&D costs making set up easier.


INFOSYS 100; DELIVERABLE 2
Aston O'Keeffe 6760692
3.6. Your Strategy.
Seeing as our business is a non-for-profit, the strategy would be different to a business whose primary goal
is profit. A business strategy should articulate the focus and goals of a business, and further an action plan.
Therefore, I have chosen the SWOT and PEST analyses‟ to help define the strategy.
Strengths

 Unique way of promoting exercise
 Social media aspect reaches a large
demographic of people
 Promotes good incentive for people
to take public transport
 Low R&D costs
 In favour of social, economic trends
 Easy to use
Political

 Funding is largely reliant on the
political body
 Low tax for non-for-profits
 Level of corruption in New Zealand
is realitively low, increasing the
level of realiability
 As it promotes public transport, it
also aids environmental issues in
society (lowers carbon footprint)
Weaknesses

 Many charity organisations in the
industry, so potentially difficult to
get funding
 Physically, it may take a long period
of time to get the correct clearance
from the transportation industry for
this to go ahead
 Must have the room to do the
exercises
 Many different businesses are
collaborating, so it may be difficult
to communicate
Economic

 At this stage, the New Zealand
economy is bouncing back from the
recession in 2008, so funding a
charity like this would also promote
jobs, health and promote public
transport in society
 Low tax rates for charity‟s
 Low research and development
costs
 High initial costs
Opportunities

 Well established demographic as
lots of people already use trains and
buses
 Funding sources would be easier to
get as there is an advertising aspect
of our design
 Social media; good for advertising
 It is a societal norm to take trains
and buses as a form of transport
 Economically, it is also cheaper for
Technological

 Embraces new technology (i.e.
keeping up with social trends) using
social media
 Technology is already developed
and therefore, less money will be
spent on research and development
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Aston O'Keeffe 6760692
people to use public transport,
improving the size of the target
market reached
 Non for profits pay lower tax
Threats

 Economic conditions are very
important to our business.
Economic downturns may
negatively impact funding and
economic booms may mean less
people taking public transport.
 A change in customer needs (i.e.
less people taking public transport)
Social

 Lifestyle trend: Increased
importance on health in our society
 Lifestyle trend: Increased
importance on the environment
 Public media aspect
 Consumers would have an open
mind as they get a free ticket in the
end
 Promoting health in society is
percieved as positive
The overall strategy is therefore broad market, low cost as we don‟t aim for a profit.
3.7. Identify the MOST important Value Chain Activity for your business.
The value chain is the process or activities performed by an organisation that adds value such as
marketing and customer service. I believe that the most importance value chain activity for our business is to
promote and fulfill our vision of encouraging fitness in society. This is done most efficiently through the
important social media aspect of our product/service as it is a good marketing tool, reaches a wide
demographic of people and is the social norm for businesses in present day society. If more people are
targeting, the more the message spreads which is what we find most important. It also embraces new
technologies. This is why I believe that the social media design creates the most value to our business.





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3.8. Identify and model TWO Key Business Processes that take place within the Value Chain Activity you
identified above














I have selected to show this process as it shows the social media aspect. This is clearly important to our
organisation because our service is about promoting health and fitness on the widest scale possible. It is a
form of marketing as social media is the social norm these days of promoting businesses. It is proven to
reach a broad market as millions of people rely on it on a day-to-day basis and it also captures marketing
research.



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I have selected this process as it shows the complete experience that the customer goes through. It is a
consumer based service, which means it is exceptionally important that we attend to the consumers needs.
Through this business process, loyalty will be established as well as the promotion of our service as
customers will talk about this through word of mouth. Our fun and interactive way of promoting exercise
will help our vision.


INFOSYS 100; DELIVERABLE 2
Aston O'Keeffe 6760692
3.9. Identify at least TWO Functionalities per process that would be needed to support the Key Business
Processes identified above.
1. Social Media: This functionality is required as it fulfills our social media aspect of the
design. The inbuilt computer captures and uploads photos onto social media sites like
Facebook, Twitter or Instagram. This further promotes our service in a way that is
accessible to a large demographic of people. It is additionally important to have our
business promoted online as we can capture demographic and marketing research.
2. Customer Satisfaction: This is an important functionality as our product/service is
based around educating the consumers as well as their overall experience. As identified
earlier, there is an optional survey that is quick and easy to fill in using the touch
screen. This identifies our target group and also their knowledge and satisfaction of the
experience. Also, the consumer gets a free ticket in return for exercise (proven to
release endorphins).
3.10. Identify THREE specific Systems that you will need to support the functionalities identified above.
1. Social Media System (SMS)
Our Social media System uses Content Management System (CMS) and also Customer Relationship
Management (CRM). CRM helps to organize our data and support the functionalities, as this
computer program allows ease of editing, publishing and modifying content, which is very important
for social media and data research. It is imperative that we keep up with the trends and CMS would
help us achieve this. It is also especially useful to manage workflow for collaborative teams. C

2. Customer Satisfaction System (CSS);
Our Social Media System is supported by CRM. This is an important system used to support the
functionalities listed above for many reasons. It helps understand our current and future customers.
This technology helps manage content to help things such as customer service. It is imperative that
the customer relationship is strong because our whole idea is based on impacting the consumer in a
positive way. This is supported through surveys, the free ticket in return for exercise and the
opportunity to have this unique experience in the first place. To ensure good customer service, we
have a web-based self-service system in built into our ticket machines. The touch, LED screen is
easy to use, fun and efficent. It allows for feedback of the experience, making sure the customer is
happy, which is really important to us. It also helps track fund-raisings, sponsors, target market
research and communication. It is also a type of tailored marketing as consumers can upload their
pictures onto their individual social sites.

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Aston O'Keeffe 6760692
3. Supply Chain Management Systems (SCM);
Involves managing information flows between and among stages in a supply chain to maximize
effectiveness. It is important that our communication between all of the collaborative teams is done
efficiently. Our suppliers are the New Zealand Transport agency, which is a government chain,
Nintendo and various health operations such as Les Mills gym. Most of this communication can be
done online though email, intranets, online banking etc. This makes it accessible across businesses
and even over countries and time zones. It also includes the design, physical set up of the machines
in the train and bus stations, the excecution and control of the project.
3.11. Summarize sections 3.7 – 3.10 in a table.
Value Chain Activity Processes Functionalities
Specific Information
System(s)
Broad Information
System(s)
Promoting health and
fitness in society
The use of social media
to promote our vision
 Take photos
 Upload via web to
social media
Social Media System
CMS
CRM
Ensuring customer‟s
are content and loyal
 Fun, interactive
experience, in return
for free ticket
 Optional surveys
and feedback
Customer Satisfaction
System
SCM
ERP

Conclusion
Our non-for-profit business uses a low cost, broad market strategy supported by the PEST and SWOT
analyses‟. Our vision is to promoting fitness using incentive and providing the opportunity, sustained
through the use information systems such as CMS, CRM, SCM and ERP. Our Social Media System sets us
apart and embraces new technologies, adhering to social norms. Based in the community sector of the
economy, funding is essential. Also, customer experience is extremely important to our business as it is
based around the customer. Through CRM, we are able to edit, maintain and control customer feedback.



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Aston O'Keeffe 6760692
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