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


Name Owen Jin
NetID ojin338
Group Number: 206
Website Link:
D1:http://infosys1102014s1group206.blogspot.co.nz/p/d1.html
D2: http://infosys1102014s1group206.blogspot.co.nz/p/d2.html
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Wednesday 11am
Time Spent on
Assignment:
16 hours Word Count:
1649 (not
including title
page and
reference list)

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NZ HOUSING DATABASE
INTRODUCTION
Our core problem was a lack of easily accessible and readable information
on housing. This is a relatively large problem due to the leaky homes
scandal, people should avoid living in these houses. Furthermore, with
rising property demand means rising property information demand. Our
solution is a user friendly housing database which is easily accessible to
provide that information.
3. BUSINESS SECTION
3.1 Vision
To improve people‟s wellbeing by providing meaningful, convenient and
readable information to allow for better decisions when it comes to
housing.
3.2 Industry Analysis:
Industry: Housing Database Industry
Force: High/Low: Justification:
Buyer power: High There are some choices for
consumers like Terranet (Terranet,
n.d) and local councils for housing
databases. (Auckland Council, n.d)
Supplier power: Low There are many software developers
to help make the software. (IndexNZ,
2014) (Workhere, n.d) There are
some property surveyors that can

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provide the property information
(IndexNZ, 2014). There are a lot of
photographers too (for photos to
make our 3D models and real life
maps).
Threat of new
entrants:
Low It‟s difficult and expensive to obtain
all the housing information needed to
develop an effective database.
Currently a full leaky homes
assessment report, costs at least
$511.11. (Consumer Build, n.d)
Threat of
substitutes:
High With 34% of houses purchased being
discovered with a real estate agent,
this means for home buyers, the
substitute of open homes are still a
relatively popular choice. (Stone, B,
2013). There are some individual
licensed building surveyors for
obtaining the property information
too. (Westpac, n.d).
Rivalry among
existing
competitors:
Low Mainly just Terranet and council
databases so there‟s only a few
competitors. Also there‟s little
innovation hence competition.
(Terranet, n.d), (Auckland Council,
n.d)

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Overall attractiveness of the industry: It‟s a relatively attractive
industry as it can be profitable and sustainable because of: Low monopoly
power with suppliers since supplier power is low, it‟s difficult to enter
since threat of new entrants is low, and there is little competition within
the industry since there is low rivalry amongst competitors. Even with
high buyer power, there is still relatively little choice so buyer power is
not extremely high and can be reduced by having a competitive
advantage like 3D modelling and real life maps. This means increasing the
switching costs. People have started favouring digital research as
evidenced (Stone, B, 2013) in more people discovering their homes they
purchased on computers, so the threat of substitutes may decrease with
the modern age.
NB. For supplier power, it could be high since home owners are a supplier.
They would „supply‟ permission for inspections, otherwise we cannot issue
inspections. However, although important they‟re not absolutely
necessary as we may already the information from source documents and
so I justified low (since there‟s no medium and would otherwise be too
complicated) based on our other key suppliers.
3.3 Customers and Their Needs
Our target customers are home buyers and real estate agents (REA). For
home buyers, Westpac says that “the house-hunting process can be a
long one… but with such an important decision to make, it pays to check a
place out thoroughly.” (Westpac, n.d). So home buyers should do
research for „house-hunting‟ before making their decision. Part of a REA‟s
job is to “organise building inspections and reports” (CareersNZ, n.d)
from property surveyors. Although they may operate less open homes
because of the NZHD, their main role is an intermediary for buyers and
sellers and as such, they can focus on giving other property services like
price and terms of sales negotiations (Stone, B, 2013) (which they still

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get paid for), hence they need to gather the property information in order
to make decisions on these services (may even benefit from more buyers
asking for these services). For home buyers and REAs these tasks can be
time consuming, costly and complicated.
3.4 The Product and Service
Our product, will provide home buyers and REAs with convenient property
information, since it can be viewed remotely, anytime. This saves time
and money since home buyers won‟t need to visit and REAs won‟t need
surveyors for every house. Also for home buyers, it may provide more
information than visiting the house. For example, wiring and insulation
and wiring in the walls which isn‟t in plain sight. We also provide
simplified reports to reduce complexity (but details are provided if they
are wanted). Our functionalities of 3D modelling and real life maps can
provide meaningful insights to the property, and helps our database be
more convenient and less complicated compared to traditional long
reports.
3.5 Suppliers and Partners
Some of our suppliers are software developers and the government.
Software developers like Datacom, are needed to help make our
application and database. The government (both local and national) can
provide the housing source documents for the database. Our partners are
housing surveyors, photographers and REAs. Housing surveyors like
TheSurveyingCompany and photographers are needed for continuous
housing inspections (inspections can include surveying information and
photos) to add more information to our database. REA companies like
Harcourts, require property information regularly so we can collaborate
with them on what information we should provide.
3.6 Strategy: Differentiation

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Our product is usable for every home buyer and REA since the
information is not complex; hence a broad market.
Premium services like 3D modelling, real life maps and providing constant
updates to our database means our pricing will be high; hence high cost
The overall strategy is therefore Differentiation
3.7 Value Chain Activity: Service after sale
After purchasing our license, we need to retain customers with extra
services like more content and smooth software performance, especially
considering when more content may cause bugs. For our vision, more
content provides more meaningful information for home buyers‟
purchasing decisions and REA‟s servicing decisions. Smooth performance
provides less inconvenience. For our broad market strategy, we want
more information so to be more relevant to more people i.e. Wellington
buyers will not find Christchurch property information relevant so we need
to expand our market to Wellington. With high costs, we want a quality,
bug free database with plenty of content.
3.8 Business Processes
3.8.1. Maintenance management process – This runs tests and checks
customer complaints on our application to figure out problems.
Maintenance can be contacted to resolve these problems. For a high cost
strategy, we should ensure a quality software performance by checking
for issues and making adjustments to resolve them, which is also
important to our vision since it provides convenience. For our VCA,
customers want minimal trouble in the software after their purchase.

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Maintenance checks
software for bugs
and customer
complaints about
the application
Does the current
software need
to be fixed
Leave the software
as it is
No
Decide what
adjustments are
needed based upon
maintenance staff
reports and
customer
complaints
Yes
Test the new
adjustments
Implement
adjustments
Customer complaints management system
Maintenance (IT) department
Maintenance (IT) department







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3.8.2. Inspection data management process– This checks our database for
gaps (missing or outdated information) and determines if we have
permission and whether it‟s worthwhile to fill the gaps based upon
information like property inspection costs. If it‟s worthwhile, an inspection
order is issued. Then it collects the inspection data, categorises and
stores it into the database. For our broad market strategy, it makes more
information available in our database, which makes it relevant to more
people. For our high cost strategy, we have the premium service of an
expanding database. For our vision, more relevance and information
provides more meaning and better decisions. For our VCA, having
constant updates is important as customers want to access more
information after their purchase.

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Check for gaps in
database
Create a housing
inspection order
Send housing
inspection order
Leave that area of
the database as it is
Check if we have
the funds and it
is worthwhile
for an inspection
Yes
No
Yes
Collect the
inspection data
Categorise the data
Store the data into
specific categories
Database analysis system
Database Warehouse
Database Inventory department
Real estate agent communication management system
Do we have
permission?
No
Ask for permission
from owners to
inspect houses
No
Yes
Is there a gap?
Yes
No

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3.9 Functionalities
3.9.1. Maintenance management process
 Detect issues in the software
 Analyse customer complaints
 Resolve any issues in the software
3.9.2. Inspection data management process
 Check for gaps in the database
 Collect data for decisions on filling gaps
 Determine whether gaps should be filled up
3.10 Systems
3.10.1. REA communication management system– The functionality is “collect
data for decisions on filling gaps”. It allows collaboration with REA
companies to see what content they want. Then it sends that information
to our decision makers. For our vision, we want to ensure meaningfulness
in the information, so we need to check with our key customers for what
they want.
3.10.2. Customer complaints management system – The functionalities are
“detect issues in the software” and “analyse customer complaints”. It will
collect customer complaints, categorise and determine the frequency of
that complaint category. The system will help provide recommendations
based upon the complaints for software adjustments. For our vision, we
want to ensure convenience with our product, so we need to address
customer issues and fix our product as such.
3.10.3. Database analysis system – The functionalities are “check for gaps in
the database” and “determine whether gaps should be filled up”. It
analyses the database inventory to find gaps. It then provides
recommendations on whether we should fill them based upon information
like owner‟s permission and REA requests. For our vision, we have to
figure out which gaps are most troublesome to our customers so it‟s most
meaningful when we add content to fill them up.

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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)

Service
after
sale
1. Maintenance
management
process
1. Detect bugs/errors

2. Analyse customer complaints

3. Resolve any issues in the
software
Customer complaints
management system

CRM, TPS and DSS

2. Inspection data
management
process

4. Check for gaps in the database

5. Collect data for decisions on
filling gaps

6. Determine whether gaps in the
database should be filled up


REA communication
management system

Database analysis
system

Collaboration and
CRM


TPS and DSS

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CONCLUSION
Our business idea is to develop a convenient housing database for home
buyers and REA to provide them with quality and convenient information
to make well informed decisions. Information systems helps add value by:
 Customer complaints management system increases productivity
since maintenance will waste less time figuring out the problems
and more time fixing them
 Customer complaints management system increases customer
satisfaction by reducing issues with our software to allow a
smoother software experience
 Database analysis and REA communication management system
increase customer satisfaction by helping provide constant
meaningful/quality updates to the database which customers will
find relevant
REFERENCES

From D1
 Stuff. (15/07/2012) Leaky home obligations 'overlooked'. Retrieved from
http://www.stuff.co.nz/national/7280754/Leaky-home-obligations-overlooked
 Consumer Build. (n.d) Background to the problem. Retrieved from
http://www.consumerbuild.org.nz/publish/leaky/leaky-background.php
 3 News. (22/12/2009). Leaky homes bill estimated at $11.3 billion. Retrieved
from http://www.3news.co.nz/Leaky-homes-bill-estimated-at-113-
billion/tabid/421/articleID/135163/Default.aspx
 Consumer Build. (n.d). The Department of Building and Housing. Retrieved from
http://www.3news.co.nz/Leaky-homes-bill-estimated-at-113-
billion/tabid/421/articleID/135163/Default.aspx
 Consumer Build. (n.d). Case study 3. Retrieved from
http://www.consumerbuild.org.nz/publish/leaky/leaky-case_studies3.php
 Consumer Build. (n.d). Health Risks. Retrieved from
http://www.consumerbuild.org.nz/publish/leaky/leaky-health-risks.php
 Auckland Council. (n.d). Property files and reports. Retrived from
http://www.aucklandcouncil.govt.nz/EN/ratesbuildingproperty/propertyinformatio
n/Pages/PropertyFilesReportshome.aspx

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 Stuff. (30/06/12). New Zealand‟s worst real estate agents. Retrieved from
http://www.aucklandcouncil.govt.nz/EN/ratesbuildingproperty/propertyinformatio
n/Pages/PropertyFilesReportshome.aspx
 Terranet. (n.d). Terranet property information online. Retrieved from
http://www.terranet.co.nz/terranet3/

From D2
 Westpac. (n.d). House hunting, What to look for. Retrieved from
http://www.westpac.co.nz/home-loans/home-buyers-and-sellers-guide/buying-a-
home/house-hunting
 Stone, B. (2013). Why Can't the Internet Replace Real Estate
Brokers?. Bloomberg Businessweek, (4320), 58-63.
 Workhere. (2014). Software Development Companies. Retrieved from
http://www.workhere.co.nz/companies?company_industry=2
 IndexNZ. (2014). Software Firms. Retrieved from
http://www.indexnz.com/Top/Computers-and-Internet/Software/Software-
Firms/1
 IndexNZ. (2014). Surveyors. Retrieved from
http://www.indexnz.com/Top/Business-and-Economy/Real-Estate/Surveyors
 CareersNZ. (n.d). Real estate agent. Retrieved from
http://www.careers.govt.nz/jobs/property-services/real-estate-agent/about-the-
job