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

Name Vitaliy Sudoplatov
NetID Vsud640
Group Number: 307
Website Link: http://infosys1102014fcgroup307.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Friday 9 am
Time Spent on
Assignment:
14 Hours. Word Count: 1641

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MICROCHIP TECHNOLOGY AND FARMING
INTRODUCTION
Farming as a profession dates back thousands of years, and advancements in the field that
aid the job have progressed slowly. Cattle are prone to disease that shows up only when it is
too late, and methods for detecting these are often inadequate. We believe that
microchiping cows with chips that analyze blood samples and transmit the information to
the farmer’s computer is a viable way to maintain a herd. It will save farmers time in the
present and money in the future.
3. BUSINESS SECTION
3.1 Vision
To aid New Zealand’s farmers in maintaining the health of their cattle via easy to use
nanotechnology and software.
3.2 Industry Analysis: Agricultural Nanotechnology Industry
Industry: Agricultural Nanotechnology Industry. The company aims at implementing its
hardware within the agricultural sector and providing farmers with the software to run it.
Force: High/Low: Justification:
Buyer power: Low Farmers have no choice in other providers since
this is a new product, but at the same time our
product is not necessary for their job as they can
perform without it (albeit less efficiently).
Azonano.com reports that GPS and health
tracking via microchip nanotechnology will soon
be implemented in the USA (2005). This source
was last updated in 2013, hence it must still be a
relatively new phenomenon in the agricultural

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industry. There is no satisfactory alternative once
implemented, thus the aid that the microchip
provides will retain buyers.
Supplier power: Low We will require three main suppliers. First,
software programmers to develop a
comprehensive program. This is not a particularly
difficult task as software engineers are expensive
but easily attained. Second, the manufacturing of
the central console that receives and sends
information. This piece of hardware will not be
difficult to attain since the technology is already
used in vehicle cellphone-to-stereo adaptors.
Finally and most troublesome is sourcing a
nanotechnology company that will manufacture
the microchips. Microchip.com features a variety
of blood sampling microchips (2013). Callaghan
Innovation is a Lower Hutt based nanotechnology
engineering firm offering services in New Zealand,
so adjusting the microchips for our purposes can
be done within the country.
Threat of new entrants: Low Callaghan and Watson discuss nanotechnology in
New Zealand, pointing out that it is not yet fully
implemented in the agriculture sector (7) hence
the threat of new entrants will be low.
Threat of substitutes: Low In the agricultural nanotechnology industry there
is no current product that monitors cow’s blood
samples. Hence substitution of the product

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means retracting back to manually checking the
animals. Once the farmer implements the device
the amount of time saved by having the device
monitor the herd will suffice in eliminating any
substitute (if any).
Rivalry among existing
competitors:
Low The difficulty in estimating the impact of
nanotechnology in New Zealand’s agriculture as
discussed by Callaghan and Watson dictates that
there is a lack of it, hence a lack of competitors.
Overall attractiveness of the industry: Nanotechnology is implemented in New Zealand’s
agriculture, but not in the form of cattle monitoring. If we successfully manufacture and
implement such microchips, they will be the first of their kind. The Agricultural
Nanotechnology Industry focusing on cattle is one to run unopposed.
3.3 Customers and Thei r Needs
The target market will be New Zealand’s farmers, specifically cattle farmers. Increasing the
amount of milk and beef that the average cow produces is key to farmers (Macdonald et al.,
225) since this is the key product that yields profitability. Minimization of effort in this area
leads to a benefit for the farmer (Morris & Smeaton, 1).
3.4 The Product and Service
Our product is a microchip implanted in each cow that monitors blood samples for illness,
pregnancy or malnutrition. This information is transferred to the farmer via a central
console, appearing within a database that identifies each cow and its status. From their
computer the farmer makes executive decisions on which cow needs what medicine or
treatment, and can devote specific attention to each animal instead of checking them
individually. Hence each animal’s health is monitored closely leading to prolonged, healthier
lifespans and yielding higher milk production. This increases profitability and decreases the
effort that the farmer has to put in, making them able to manage larger herds.

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3.5 Suppliers and Partners
One supplier will have to be a company that provides the raw materials that manufacture
the microchips. Microchip.com offers these services, where one can purchase components
in bulk.
Second supplier will have to be a company that manufactures the central consoles that are
placed in the milking sheds. LS Research are an engineering company that specialize in radio
frequency devices, so requesting the manufacture of such product would be feasible.
First partner that we will require is a nanotechnology company to develop and work with
microchips that specialize in bovine blood samples. Callaghan Innovation gives us the
opportunity to keep the technology in NZ by developing it here. They offer services that
collaborate with the buyers needs. The reason why they need to be a partner is to research,
develop and maintain the microchip relevant to possible changes in cattle health, such as
new virus strains.
Second partner will have to be a software engineering company to develop a software
program that identifies and groups the information received from the milking shed. Object
Computing, Inc. offers software development and architectural services. With them as
partners, the company will be able to develop an adequate program that farmers will be
able to use and keep updating the software with the farmer’s feedback.
3.6 Strategy: Focused High Cost
The market that we will be aiming for is based in New Zealand’s agriculture sector, but
specifically for cattle farming, since the cows need to be hearded into milking sheds and that
is where our data processing takes place. Thus cattle farmers are our target market, giving
us a Narrow Market competitive scope.
Due to the fact that creating this technology and implementing it requires having software
and nanotechnology engineers as partners, the cost may prove to be rather high in the
beginning. So our Cost Strategy will have to be High Cost.

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The overall strategy is therefore Focused High Cost
3.7 Value Chain Activity: Product and Technol ogy Development.
The most important value chain activity for this business is Product and Technology
Development.
Our aim is to develop a piece of technology that in the long run saves the farmer money and
time, therefore we must ensure that it is indeed worth more in the long run than its
purchase price. This will be done by a detailed development of the product. To ensure that
it remains profitable for the farmer we must keep the software up to date, which will
happen through market testing.
3.8 Business Processes
3.8.1. MI CROCHIP DEVELOPMENT PROCESS – The development of the product is an essential
process as it makes sure that we are able to pick up all possible diseases. The veterinary
department collaborates with the IT department to make sure that all illneses are
accounted for. Once it is updated, we contact the nanotechnology company to develop an
adequate product. This process makes sure that the chip is up to date. If it is not, a new
prototype is developed and once it is adequate we request its manufacture. The process
finishes when we are certain that our current product is up to date. This process supports
the product development and updating systems.

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3.8.2. PRODUCT INSTALLATION PROCESS – The microchip and software will have to be
installed by their respective departments to make sure that the data is arriving from cow to
computer. The veterinarian makes sure that the chip is appropriately placed, and the IT
representative installs the software, checks that all animals are transmitting and makes sure
that the farmer understands how to use the program. This process supports the product
delivery system.



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3.9 Functionalities
3.9.1. MI CROCHIP DEVELOPMENT PROCESS
 Creates the chip.
 Keeps the chip updated.
3.9.2. PRODUCT INSTALLATION PROCESS
 Installs the software and microchip.
 Makes sure that the customer can use the software.
3.10 Systems

3.10. 1. PRODUCT DEVELOPMENT SYSTEM – Manufacturing the chip involves a large amount
of ongoing research to track and define viruses. Creating a product that operates at
maximum efficiency is key to minimizing the customer’s efforts.
3.10. 2. PRODUCT DELIVERY AND INSTALLATION SYSTEM – Since the microchip needs to be
implanted under the cow’s skin, a veterinarian will have to be on site to do so. An IT
representative installs the software and makes sure that the customer can use it, making it
as simple as possible.
3.10. 3. CUSTOMER SUPPORT SYSTEM – If a customer has problems with keeping track on
animals, whether it’s from chip failure or not knowing how to, then both the IT and
veterinary department can return to make sure that all products are in working order. The
customer need not attempt to fix it themselves.

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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)

Product and
Technology
Development
1. Microchip
Development
Process
1. Creates the microchip.

2. Keeps the microchip updated.
Product Development
System


Supply Chain Management
System

Enterprise Resource
Planning cheese system
2. Product
Installation
Process
1. Installs the software and microchip

2. Makes sure that the customer can use the
software.
Product Delivery and
Installation System


Customer Support System

Customer relationship
management system

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CONCLUSION
Microchipping cattle is the most cost and time efficient process for farmers. The benefits of
being able to track a virus down before it spreads will outweight any possible cons. By
implemented nanotechnology and software in such an old profession we reinvent what it
means to be a successful farmer.
REFERENCES

Agriculture, Fishing and Veterinary Medicine – How Nanotechnology Might Impact on These
Industries. (2005). Retrieved from
http://www.azonano.com/article.aspx?ArticleID=1331#_Using_Nanosensor_Networks_to
Track
Callaghan, P., & Watson, I. (2006). A Nanotechnology Initiative for New Zealand. Retrieved
from
http://macdiarmid.live.egressive.com/sites/macdiarmid.live.egressive.com/files/common/fi
nalintro_web.pdf
Contract Services – Research, Engineering, Manufacturing, Testing | Callaghan Innovation
SET Delivery. (2013). Retrived from http://www.irl.cri.nz/contract-services-research-
engineering-manufacturing-testing
MacDonald, K.A., Penno, J. W., Nicholas, P. K., Lile, J. A., Coulter, M. & Lancaster, J. A. S.
Farm Systerms – Impact of Stocking Rate on Dairy Farm Efficiency. (2001). Retrieved from
http://www.grassland.org.nz/publications/nzgrassland_publication_291.pdf
Morris, S. & Smeaton, D. Profitable Farming of Beef Cows. (2009). Retrieved from
http://maxa.maf.govt.nz/sff/about-projects/search/L07-014/profitable-farming-of-beef-
cows.pdf
Object Computing, Inc. | An Open Solutions Company. (2013). Retrieved from
http://www.ociweb.com/
Patient Monitor – Medical | Microchip Technology Inc. (2013). Retrieved from
http://www.microchip.com/pagehandler/en-us/products/medical/patientmonitor.html/

RF Design Engineering Services. (2014). Retrieved from http://www.lsr.com/services/rf-
design-engineering-services