You are on page 1of 9



Name Olivia Tallott
NetID 8469110
Group Number: 073
Website Link:
Tutorial Details
Tutor: Day: Time:
Mira Lee tuesday 9am
Time Spent on
12 hours Word Count: 1421


Public Transport is used globally every single day and is fast, convenient and accessible for
everyone to use. In New Zealand we have recently updated to AT hop cards in order to
improve the transportation system however new problems have come up with these cards.
The AT hop card is a problem because there have been many complaints of passengers
forgetting to tag on and off which results in a fee which could be up to $20 depending on
how far you travelled and the service you used. The solution is it all gets done automatically
with a chip in your phone. A signal is sent out as soon as you hop on the bus and pass the
censors and when you reach your stop and get off the chip sends out a signal to the
computers at the AT company tagging you off.
3.1 Vision
To provide the most simple and convenient option to access and use public transport that is
time efficient and is satisfactory to the customer.
3.2 Industry Analysis: Public transport Industry
Industry: Public Transportaion industry including all busses trains and ferries, all will acsept
the chip.
Force: High/Low: Justification:
Buyer power: High
There are lots of companies out their that can
maufacture the chip we would need. We don’t
need a specific chip maufacturer for our product.

Supplier power: low
There are many companies to choose from that
could maufacture the chip we need. Companies
want to make as much revenue as possible.

Threat of new entrants: low
People are used to something the often don’t like
change. When they get used to a product it is
hard for people to switch. It is also an expensive
industry to get involved in.


Threat of substitutes: low
Public transport is used everyday and the only
alternative is to drive. You either drive your own
car of take one of the pubic transport options.

Rivalry among existing
The only options at the moment are the AT hop
card or paying cash. As these are the only
products the transportation industry is not very
Overall attractiveness of the industry: Despite the recent addition of the AT hop card in the
Auckland transport industry, it has proven to have problems and is not as successful as
planned. With a new simple time efficient option it will be very attractive to the public.
3.3 Customers and Thei r Needs
Public Transport is used globally every single day. Customers want service/product that is
easy to use and time efficient. At the moment with the AT cards you have to stop and tag on
with your card and only one person can go at a time whereas with our solution the censors
on the bus can pick up multiple signals from the chips in peoples phones so many people
can board the bus. Many transactions can occur at the same time. Our target group of
customers are people that use public transport daily and what an eaiser way to use it. Our
product will fulfil customer needs because it cuts down the total travelling time as people
can get on much more easily and this way people can also top up their accounts on their
phone by either texting a number as you would do for a regular phone top up.
3.4 The Product and Service
Our product is a chip that will be placed on your phone that will allow you to just walk on
and off busses and trains without using cards. It will allow people to just walk on the bus
and makes it time efficient. It takes away the stress or anxiety of losing your bus card or
having to get out your AT hop card before the bus arrives.
3.5 Suppliers and Partners
Our first supplier will need to be a company that can manufacture these chips that ill fit into
all phones. We would need a second supplier for the censors that will be placed on the
transport to read the chips.
Partners would be the distributers such as Apple App Store; Samsung Apps etc. partners
would also be the Auckland public transport sector as they have the information for the
fares for different routes.
3.6 Strategy: Cost leadership


We are targeting a broad market with our chip. Anyone can use our product you don’t need
to frequently use public transport to have the chip. Our product makes using public
transportation easier and more pleasant for customers. Our product will be very affordable.
Costs ill just include topping up, which will be just like topping up your phone.
Therefore the strategy would be Cost leadership.
3.7 Value Chain Activity: Operation
As our idea is all based on the chip that will be inserted into phones. The most important
value chain activity will be Operations (making and assembling the product). The
manufacturing of the chips is the most expensive part and the most time consuming.
3.8 Business Processes
3.8.1. BUSINESS FACING PROCESSES – Business facing process invloves startegic planning,
tactical planning, budget forcasting and purchasing raw materials. These are all core parts of
our product.



3.8.2. CUSTOMER FACI NG PROCESS – customer facing proces involves ordering process,
customer services, sales process, customer billing and order shipping.

Strategic Planning
Tactical Planning
Budget Forecasting
Purchasing raw materials



Ordering process
Customer services
Sales process
Customer billing
Order shipping


3.9 Functionalities
 Processing sales
 Attracting customers to use our product over the AT hop card or uing coins
 Ordering inventory.
 Manufacturing our product
3.10 Systems

3.10. 1. TRANSACTION PROCESSI NG SYSTEMS - This is the system that supports the operation
through which our product is designed, marketed, produced and helps to keep
track of our customers and to look at data from our chips.
3.10. 2. CUSTOMER RELATIONHIP MANAGMENT SYSTEM – it is important to keep customers
happy and satisfied with the product. This helps the customer to ensure that everythinng
goes smoothly. It updates the customers on new updates and deals.
3.10. 3. SUPPLY CHAIN MANAGEMENT SYSTEM – helps to manage the flow of goods and to
engage with the supplier. Helps to ensure we keep tabs on our products right from the
beginning and ensure we are on the same page as those supply our company.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

1. Marketing and
1. Processing sales

2. Attracting customers to use our product
over the AT hop card or using coins
Managerial support system

Managerial support system
Customer relationship
management system

Customer relationship
management system

2. Operations
1. Ordering inventory

2. Manufacturing the product
Executive information

Operational support system

Collaboration processing

Enterprise resource
planning system


Our product addresses all underlining problems with the transportation system such as
time, lost cards and creates a more efficient transportation system via buses. Our chip that
will be inserted into phones will mean no more cards or coins or no extra charge for
forgetting to tag off. All you have to do is walk on and off the transport and the censors will
read your chip. The app on your phone allows you to keep tabs on you transport and makes
it easy to top up just like a phone.

1. Local Bulletin. (2014). Hop Card Review: More Stress and Hassles than Savings [Web
blog]. Retrieved from
2. Sergel M. (2013, September 23). Public transports biggest issue for Auckland voters.
Retrieved from