You are on page 1of 12

1

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

Name Wing Hong Fu
NetID 2867935
Group Number: 302
Website Link: http://infosys1102014s1group302.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Sunday 10am
Time Spent on
Assignment:
40 hours Word Count: 1649

2


2
BUFFLES-THE INNOVATIVE WAY TO TAKE
PUBLIC TRANSPORT
INTRODUCTION
Buffles is the new way for transport around Auckland, solving many issues related to traffic
jams such as psychologicals stress, health issues, and pollution. These are the symptoms of
Aucklands traffic jams which are worsening over time. The average now kiwi spends over
100 hours stuck in traffic jams per yer(Tan, 2013). Currently, huge pressure is on the New
Zealand government with pollution in Auckland being the direct cause of $273 million in
social costs annually(Quinn, 2012). In addition, workers are becoming burnt out from
driving(Coz, 2009), spending 47 minutes stationery for every hour driven(Tan, 2013). This
reduces productivity and hinders New Zealand’s ability to grow as an economy.
Buffles solves this problem through an interative smartphone app that enables public
transport commuters to see in real time the location of their ride which allows them to plan
perfectly when to leave the house. Additionally, users go into the draw to win prizes daily
when they use the app. This will be supported by the government as it will relieve
congestion in Auckland and thus the symptoms of congestion will be minimised.
3. BUSINESS SECTION
3.1 Vision
To protect the environment by convincing commuters to use public transport whenever
possible by making it convenient and fun.
3.2 Industry Analysis: Traffic Jam Solutions Industry
Industry: Aucklands Traffic Solutions Industry
Force: High/Low: Justification:

3


3
Buyer power: Low Public transport is regulated by AT. With the
increase in severity of congestion there is no
shortage of solutions. However, ‘Buffles’ is the
only app available at the moment that builds on
existing infrastructure.
(AT, 2014)
Supplier power: High Currently there are more demand for software
designers than software designers themselves.
They have a stronger power when it comes to
negotiating salaries. Therefore the costs to hire
software designers are relatively high and thus
one of the reasons why technology development
costs so much.
(Samson, 2012)
Threat of new entrants: Low Public transport is highly regulated and so new
systems would take a lot of money and
implememnt.
(AT, 2014)
Threat of substitutes: High Auckland Transport may choose from a variety of
solutions such as building more park+ride
terminals or incentivising the use of car-pooling
as these will help reduce the number of cars on
the road and hence the threat of substitutes are
high.
(Transit Solutions)

4


4
Rivalry among existing
competitors:
Low There are currently no app incentivised solutions
being offerend and so Buffles would have a first
mover advantage.
(Auckland Transport, 2012).
Overall attractiveness of the industry: This market is a relatively good market to get into
due to the low forces seen in the Porter’s analysis above. However this is a highly regulated
market and so entering the market would be difficult due to the high barriers to entry.
3.3 Customers and Thei r Needs
Buffles will be targeting the Government(AT) as traffic jams in New Zealands main centre of
economic development is a major concern for its ability to grow(Cox, 2009). Reduced
productivity and effeciency levels by wasting time on roads and increasing costs of
transport(Dearnaley, 2010) lead to reduced profitability for businesses and less tax revenue
for the government. Vehicle emmissions already account for over 80% of air pollution in
Auckland alone(Bluett et al., 2010) and this is set to increase with congestion levels on the
rise(Cox, 2009)
Therefore they need a solution to reduce the number of cars on the road and ‘Buffles’ is the
solution.
3.4 The Product and Service
Public transport services in conjuction with Buffles serves as a benchmark for the future
travel needs of Auckland. With the population currently sitting at 1.42 million and set to
increase rapidly in the future(estimated to account for 75% of total national population
growth), the road networks are already over burdened and causing a lot of pollution and
costing the economy hundreds of millions of dollars per year.
Buffles fixes this problem by making public transport more convenient and interactive which
would incentivise Aucklanders to use public transport as a main form of commuting and
thus remove the need for them to use cars.

5


5
Buffles is a interactive smartphone app that allows users(end-users) to see in real time
where the location of their bus is as well placing them into the draw to win prizes everytime
they use public transport. This increases efficiency and the chance to win prizes will
encourage the use of buses/ferries/trains.
3.5 Suppliers and Partners
Suppliers of Buffles would be software designers and communication equipment suppliers
as they are crucial in creating an app that is user friendly and can communicate with
individual buses as to know the locations of them and estimate the amount of time for the
bus to get to a certain location based on historical data, driver, etc.
Partners would be Apple’s App store and Google’s Play store as they provide the platform
for which smartphone users can access the Buffle’s app. These would be partners because
they offer benefits to buffles by allowing the end-users to access the app and the companies
get the benefit of revenues through advertising.
3.6 Strategy: Focused High Cost
‘Buffles’ is a solution to change the cummuting habits of Aucklanders and relies heavily on
technology to influence their decisions. Therefore a very user-friendly and highly reliable
premium product must be developed. This would involve vigorous product testing and many
stages of reviews and adjustments before the product can be introduced to the public and
hence a lot of capital is required for research and development.
The customer would be the government however the end-users would be the general
public. The government will benefit in that congestion levels would decrease and so would
the social costs associated with it.
The overall strategy is therefore focused high cost.
3.7 Value Chain Activity: Technology Development(R&D)
The most important value chain activity for this business is Technology Development

6


6
Intensive research and development is required to ensure that all systems communicate
effectively so that end-users grow confidence in the ‘Buffles’ technology and change the
way that they commute around Auckland. Intensive research and testing must be done to
prevent system crashes from overloading in the future which would decrease end-user
confidence and ultimately the use of public transport.
This is where the most value would be created as Buffles is an app and therefore is
technology intensive.
Technology is required to make public transport fun and convenient(vison) and therefore
technology development is the most important value chain activity. This also aligns with our
strategy because a lot of research must be conducted to ensure a flawless product that can
change the future of the World.
3.8 Business Processes
3.8.1. SOFTWARE UPDATE PROCESS – This process is important to the organisation because
the whole system relies on the app to create value for the customer (government) by
reducing congestion. Our vision it to encourage public transport use by making it fun and
convenient. Value is created through convenience by having an error free and easy to use
app that motivates commuters to use public transport more frequently.


7


7

3.8.2. TECHNOLOGY ADVANCEMENT PROCESS – Technology is ‘Buffles’ most important value
chain activity as we rely heavily on technology to make public transport fun and
convenient(vision). Exhaustive work is required in developing both the software and
hardware components of our product. We require a user-friendly app for end-users but also
effective hardware components to ensure efficient communcation within the system.

8


8



9


9
3.9 Functionalities
3.9.1. SOFTWARE UPDATI NG PROCESS
 Identify problems with current sotware through crash reports
 Collecting, sorting and analysing feedback from end-users to improve
usability
3.9.2. TECHNOLOGY ADVANCEMENT PROCESS
 Identify which design plans meet a certain criteria
 Check to see if software is communicating correctly with hardware
3.10 Systems

3.10. 1. CONTENT MANAGEMENT SYSTEM – This system is used for collecting and storing
imformation about crash reports and user reviews. This enables the fast sorting and
organising of information which enables Buffles to make adjustments and solutions to
problems faster.
3.10. 2. DATABASE SYSTEM – This system stores information about individual commuters and
the amount of public transport they use when they use the app. This system can then
accumulate information of all users to present reports such as busiest routes and average
distance travelled.
3.10. 3. ERROR I DENTIFICATION SYSTEM – This system finds errors and identifies the locations
of where problems occur and alerts technicians of problems immediately so that the
problem can be resolved.

10


10
3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Technology
Development
1. Software Updating
Process
2. Identify problems with current
sotware through crash reports

3. Collecting, sorting and analysing
feedback from end-users to improve
usability
Content Management
System

Database System
Decision Support
System


Customer Relationship
Management
2. Technology
Advancement
Process
1. Identify which design plans
meet a certain criteria

2. Check to see if software is
communicating correctly with
hardware
Content Management
System

Error Identification
System
Decision Support
System


Collaboration System

11

11
CONCLUSION
With the information systems and techonologies identied in the proposal, our company will
be on its way to achieve its vision of providing a reliable public transport system for
Auckland that is convenient and fun. The introduction of our new technology, ‘Buffles’ will
improve our customers(government) satifaction by relieving congestion levels around
Auckland which in turn reduces vehicle emmissions that contribute up to 86% of Auckland’s
air pollution. This creates enormous value as traffic problems in Auckland alone cost the
government and excess of $273 million annually.
‘Buffles’ is the first company to offer such an innovative solution to incentivise public
transport in New Zealand and so we have a first-mover advantage. This technology must be
extremely reliable to gain the trust of the public to use it and so significant research,
development and testing must be done to ensure the highest quality product available for
end-users. The product is being sold to the government which makes this a niche market
and hence why our business strategy is focused high-cost.
REFERENCES

1. Auckland Council. (2014). Auckland’s transport(The Auckland Plan). Retrieved from
http://theplan.theaucklandplan.govt.nz/aucklands-transport/

2. Auckland Transport. (2014). Auckland Transport. Retrieved from
http://www.transport.govt.nz/ourwork/land/aucklandtransportagency/

3. Bluett, J., & Dey, K., & Kuschel, G. (2010). Auckland Vehicle Fleet Emission
Measurements. New Zealand: Auckland Regional Council. Retrieved from
http://www.aucklandcouncil.govt.nz/SiteCollectionDocuments/aboutcouncil/plansp
oliciespublications/technicalpublications/tr2010028aucklandvehiclefleetemissionme
asurements2005.pdf

4. Cox, W. (2009). Traffic Congestion, Time, Money & Productivity. New Geography.
Retrieved from http://www.newgeography.com/content/001044-traffic-congestion-
time-money-productivity

5. Davison, I. (October, 2012). Census 2013: Auckland leads growth but rural areas
decline. Retrieved from
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11140635

6. Dearnaley, M. (June, 2005). Big rise forecast in Auckland car pollution. Retrieved
from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10331616

12

12

7. Dearnaley, M. (September, 2010). Governor General slams Aucklands Traffic
Congestion. Retrieved from
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10675949

8. Headache Looms for ageing car fleet. (February,2010). Retrieved from
http://www.stuff.co.nz/taranaki-daily-news/business/3357073/Headache-looms-
with-ageing-car-fleet

9. Ministry of Transport. (February 2014). The new Zealand Vehicle Fleet. Retrieved
from http://www.transport.govt.nz/assets/Uploads/Research/Documents/2013-
Fleet-report-final.pdf

10. Quinn, T. (July, 2012). Air pollution killing hundreds in Auckland – report. Retrieved
from http://www.stuff.co.nz/auckland/local-news/7378267/Air-pollution-killing-
hundreds-in-Auckland-report

11. Samson, T. (2012). Demand for software engineers keeps climbing, and so do the
salaries. Retrieved from http://www.infoworld.com/t/it-jobs/demand-software-
engineers-keeps-climbing-and-so-do-the-salaries-205254

12. Tan, L. (November, 2013). Auckland Traffic Jams create City of Snails. The
Aucklander. Retrieved from
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11152630

13. TomTom International BV. (2013). TomTom Australia & New Zealand Congestion
Index. TomTom Congestion Index, Volume 1, page 1-17. Retrieved from
http://www.tomtom.com/lib/doc/congestionindex/2013-0322-TomTom-
CongestionIndex-2012-Annual-AUNZ-mi.pdf

14. Transit Solutions. (2014). Sustainability. Retireved from
http://www.transitsolutions.org/Sustainability.aspx

15. TVNZ. (2013). Auckland has the fastest growing population. Retrieved from
http://tvnz.co.nz/national-news/auckland-has-fastest-growing-population-5648323