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

Name Daryl Wan He Chang
NetID Wcha676
Group Number: 147
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Tuesday 3PM
Time Spent on
Assignment:
32 hours Word Count: 1649

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JUST GIVE CONGESTION “E-PASS”
INTRODUCTION
In the airline industry today, there are two things at the forefront of customers’ minds:
Safety and Speed. Airlines have spent the last decade trying to find the fine line between
these two factors. As a result, increased security measures have led to some of the worst
congested airports in the world leading to much dissatisfaction. 26 million passengers in
New Zealand airports alone were affected by congestion (Anna.aero, 2014). The solution to
this is the E-pass, a simple device that addresses the problem of congestion without
compromising safety standards by using a magical mix of biometrics, scanning technology,
and cloud storage to speed away congestion.
3. BUSINESS SECTION
3.1 Vision
To ensure the swift and secure delivery of weary travellers through the hassles of airport
customs into their warm, cozy beds.
3.2 Industry Analysis: Airline Immigration Security Industry

Force: High/Low: Justification:
Buyer
power:

Low Different countries have their own implicated standards for
airport security, which regulate which type of security systems
and hardware are required by the standards in their respective
countries, such as CAPPS-II in the U.S.A. (Benham, 2004).
Supplier
power:
High Most airports’ security devices and systems are dictated by
standards in their country. Airports in New Zealand for example
follow standards imposed on them by the International Civil

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Aviation Organization (ICAO). (AVSEC, 2014).


Threat of
new
entrants:
Low It costs a lot of time and money to set up an entire security
system, hardware and software inclusive. Security systems also
require experts to set up, use and maintain them, thus there is
also a high knowledge barrier as well. The International Air
Transport Association (IAA) reported an annual figure of $7.4
billion USD spent by airlines on security in 2011 alone.
(McCartney, 2011 )
Threat of
substitut
es:
Low The only time security systems are changed are when
technological advancements or specific events (such as the 9/11
terrorist attack in the United States) justify changes to the
security system. Passports and legal papers are the only
(Benham, 2004).
Rivalry
among
existing
competit
ors:
High In what few competitors exist in this industry, they must
constantly keep upgrading their security systems along with
improving technology to keep up with the governments’
requirements in order not to get replaced.


Overall attractiveness of the industry: This is an unattractive business to be in. The high
cost and knowledge barriers for entry as well as large expenses on future maintenance
deters many upstarts, and even those already in the industry must continually improve their
systems to meet government standards creates pressure for constant success, or companies
risk being replaced.

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3.3 Customers and Thei r Needs
The primary customers of the industry are passengers of airlines who are travelling both
overseas and within New Zealand. According to a study carried out by Bandung State
Polytechnic, the primary needs that passengers want fulfilled are lower prices, the service
of quality, adequate security of the indivudual and their belongings, and the timeliness in
which it is carried out (Suhartanto & Noor, 2012)

3.4 The Product and Service: The E-Pass
The “E-Pass”, is an electronic version of passports that consolidates all of its uses into single
device. It will store the relevant information for identification of a passenger, as well as their
flight details by usage of a cloud system, which is accessed physically at airport terminals by
a biometrics fingerprint scan that acts as a “biological password” which links relevant
information of individual passengers to the e-pass. We are aiming to please the passengers’
need for promptness and accuracy of service as mentioned above by cutting out delays and
eliminating congestion in queues during their transition through the airport security
screening process. The entire process will be streamlined the as the e-pass eliminates the
human element of manual passport and boarding pass checks and thereby increase its time-
efficiency.
3.5 Suppliers and Partners
Supplier 1: Ayonix Inc.
Ayonix is a Japanese biometrics company that has branches in New Zealand. We will
purchase the biometric fingerprint scanners required for the identification procedure in the
E-pass.
Supplier 2: Security E-Cards Specialists (SES)
SES is a New-Zealand based plasitc smartcard manufacturer. They will supply the microchip
technology used in smartcards that we will program and incorporate into the E-pass.

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Partner 1: Auckland Airport
A partnership with Auckland Airport will enable us to, under terms and conditions accepted
by both parties, set up our systems in their airports. Their benefits are the usage of a more
efficient immigration system that speeds up the whole airport transitioning process,
whereas we gain exposure and business with customers who use the E-pass.

Partner 2: IBM
A partnership with IBM in using their Cloud system will allow us to collaborate closely with
IBM to ensure the secure handling of private information of customers. We will gain the
benefit of having a powerful storage system to empower our business, whereas IBM will
gain a share of our royalties.

3.6 Strategy: Differentiation
The aim of the E-pass is to provide customers of the airport with a more efficient method
for transitioning through immigration. The competitive scope is the broad market, as there
are many potential customers in the airline industry who would pay to save time
(Suhartanto, 2012). The competitive advantage the E-pass provides greater speed without
compromising the security in the airports, which would fulfil one of the customers’ primary
needs and add value to the E-pass. With this advantage, we can charge a premium price to
those who want to use the E-pass.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Firm Infrastructure
The most important value chain activity for this business is Firm Infrastructure. This is
because the nature of the business is the handling of private information received from E-
pass holders, which represents their trust in the company. As such, it is a requirement that
the company’s hardware and systems are constantly operating at a high level of quality, and

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that extra precautions are taken in the event of failures in the system (such as having
physical back-up memory should the cloud system fail for whatever reason).

3.8 Business Processes
3.8.1. PASSENGER IMMI GRATI ON PROCESS – This process is important to the business
because it is the primary process which enables the E-pass to perform its service of
immigration identification. Its key purpose is to ensure that correct information is received,
processed through the system, and allow/deny customers through immigration who meet
the verification criteria. Another purpose is to continually monitor the performance of the
system by keeping a record of successful and failed transitions which can provide higher-
level management information that they can use to improve the E-Pass.


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3.8.2. INFORMATI ON BACKUP PROCCESS – To ensure the integrity and security of the
information entrusted to us, a backup process is crucial. It is important to have a physical
storehouse of backed-up information in the event that an incident damages the information
on the cloud. If the database were erased, the business would suffer extreme losses as the
E-pass would be unable to function. It ensures the digital integrity of our information cache
is safe and secure.


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3.9 FUNCTIONALITIES
3.9.1. PASSENGER IMMI GRATI ON PROCESS
 Check if received customer information matches database information
 Obtain information for critical analysis of product for improvement
3.9.2. INFORMATI ON BACKUP PROCESS
 Store information crucial to operations in a safe location
 Organize decision useful information and filter out mistakes.
3.10 Systems

3.10. 1. INFORMATION ANALYSI S SYSTEM - This allows us to assess information obtained from
operational systems of the E-pass. The system will discover trends and patterns in the
information which will highlight key issues to higher level management. It provides
information that allows higher level management to develop action plans to address any
problems in the E-pass as they arise, as well as its future development, such as for increases
in speed.
3.10. 2. DATABASE MANAGEMENT SYSTEM – It is essential in maintaining the security and
viability of the data kept by the company for use in operations and planning, both in the
cloud and on the ground. It ensures easy access to information for employees by
categorizing information into distinct categories so that the different users can find
information relevant to their tasks. It also ensures that the databases are protected by
security programs like firewalls.
3.10. 3. CUSTOMER I DENTIFI CATI ON PROCESS SYSTEM – This is a crucial system for identifying
customers and ensuring that their “biometric password” matches their database
information. This system is ensures the safety of passengers on the flight by barring entry
from possible criminals.

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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)

Firm
Infrastructure
Passenger
Immigration
Identification
Process
1. Check if received customer
information matches database
information
2. Obtain information for critical analysis
of product for improvement
Customer Identification
Process system

Information Analysis system


Decision Support Systems


Transaction Processing
Systems
Information Backup
Process
1. Store information crucial to
operations in a safe location

2. Organize decision useful information
and filter out mistakes.

Database Management
System
Information storage system
Decision Support Systems

Decision Support Systems

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CONCLUSION
By mixing together existing technology and connecting them with IT and IS, the E-pass
brings forth a new solution for dealing with airport congestion. By streamlining the
immigration process, the E-pass delivers the value of time to customers who choose to use
it. Following the Differentiation strategy, we aim to make the E-Pass available to the broad
market at a higher, but reasonable price point. The focus on the value chain activity Firm
Infrastructure makes us focus on delivering a product that is supported by a structured and
robust information systems that will protect and speed along the immigration process. The
business processes reflect this – the Passenger Immigration Identification Process and its systems
provides constant feedback that allows the improvement and maintenance of E-pass systems, and
the Information Backup Process ensures that sensitive information is stored securely. The use of
structured support sytems are integral to the success of the E-Pass.
REFERENCES

1. Anna.aero. (2014). New Zealand’s big three airports handled 26 million passengers
in 2013; Auckland, Christchurch and Wellington all growing. Retrieved from
http://www.anna.aero/2014/03/13/new-zealands-big-three-airportshandled-
26-million-passengers-in-2013/

2. Aviation Security Service. (2014). ICAO SUB-REGIONAL AVIATION SECURITY
TRAINING CENTER.Retrieved from http://www.avsec.govt.nz/Industry-Related-
Documents/ICAO- Sub-regional-Aviation-Security-Training-Centre/
3. Benham, Barbara. (2004). GLOBAL AIRPORT SECURITY. Retrieved from
http://www.travelandleisure.com/articles/global-airport-security
4. McCartney, Scott. (2011). Airport security costs are up, but weak spots remain.
Retrieved from
http://online.wsj.com/news/articles/SB10001424053111903596904576516332299
459122
5. Suhartanto, Dwi., & Noor, Any. (2012). CUSTOMER SERVICE SATISFACTION IN THE
AIRLINE INDUSTRY: THE ROLE OF SERVICE QUALITY AND PRICE. Indonesia:
Bandung State Polytehnic, Department of Business.