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Name Kishen Purushotham
NetID kpur294
Group Number: 209
Website Link:
Tutorial Details
Tutor: Day: Time:
Johnny Shubert Wednesday 11am
Time Spent on
15 hours Word Count: 1609


Natural calamities can cause complete havoc in a city or country. The problem we addressed is that, people
are slow to receive warnings/instructions when natural disasters are imminent, because the current systems in
place are ineffective. Our solution is a modified smoke alarm (NDIHA – Natural Disaster In House Alarm), which
is directly connected to the Civil Defence Headquarters of the particular city/region/state. Therefore, when a
disaster is approaching the Civil Defence HQ (CDQ) send out a signal that is picked up by our device, warning
all who own this device.
3.1 Vision
To understand the fear that every household may have and give protection like no other device on the face
of this planet.
3.2 Industry Analysis:
The industry in which we operate in: Civil defence safety industry.
Force: High/Low: Justification:
Buyer power: High
The buyer power is quite high in our industry as there are
many choices to buy from. Our industry includes
applications on the android/apple market which provides
information on disasters, such as the “Disaster Alert” app,
(Disaster Alert, 2014). This app operates in both
android/apple market and is a famous one.
Supplier power: Low
The supplier power is quite low as the industry is small.
There are very few buyers in terms of parts needed for
smoke alarms. Hence, the suppliers don’t have much
Threat of new entrants: Low
The threat of new entrants in our industry is low as there
are many competitors in the market. The entry barrier is
increasing with the advancing technology and the unlimited
access off apps.
Threat of substitutes: High
The threat of substitute products is high as the alternatives
are quite high. Instead of our product, there are many
others in the app market which provide instantaneous
information on disasters. Searching on the google store I
had found 15-20 apps directly relating to the industry in
which we operate.
Rivalry among existing
Due to the large amount of competitiors in the industry, the
rivalry among existing customers is high. Most of these
apps are free of cost and work very well. Some of these
apps include Geohazard, Disaster Alert, and many more.


Overall attractiveness of the industry: The attractiveness of an industry is based on the use of its products for
the customers. The use for safety devices is quite attractive to customers as it ensures their safety, hence, the
industry is quite attractive.
3.3 Customers and Thei r Needs
Our product would appeal to all customers in general, as our product is a safety device which can be used by
anyone. However, our target customers would include family households, small businesses, and even big
industries. In the Christchurch earthquake which occurred in February 2011, (Ian Mclean and Co., 2012), there
were more demands for services than the government could attend to. Therefore, during a disaster people are
in need instantaneously and are in search of information/help ASAP.
3.4 The Product and Service
The NDIHA is a modified smoke alarm device with an antenna, which is directly linked up to the CDQ in a
nearby region. The NDIHA receives information instantaneously when a disaster is approaching or has hit. The
direct connection between the CDQ and the NDIHA is via a radio frequency transmitter. This gives our
customers the satisfaction of receiving information quickly, and it keeps them updated via a live feed from the
CDQ. After the purchase of the NDIHA, the service is always active and directly connected up to the CDQ via.
3.5 Suppliers and Partners
Global Sources manufactures and supplies many parts/products, including smoke alarms. They are a company
located in China and sell various types of smoke alarms, and would be our main supplier as they provide us
with the product, i.e. the smoke alarm.
Antenna Systems and Solutions is company located in North America, and they supply antenna related
hardware. These antennas will be used in the NDIHA, so they can pick up the frequencies in which the CDQ
send information through.
The CDQ of NZ is a partner. The NZ CDQ is what our NDIHA’s will be directly connected to, and our company
will work side by side with them. The CDQ of NZ would be able to use our product to communicate with
people quickly and efficiently.
Natural Hazards Research Platform (NHRP), is another partner located in Lower Hutt, NZ. The NHRP work on
avoiding, organising, and controlling as much as they can in relation to risks that could occur in a natural
disaster. Working as a partner with them would help our company grow as they will promote our product and
is helping them in terms of their research/goals.
3.6 Strategy:
Our organisation would follow the the differentiation method, as our product is both of high cost and in a
broad market. In terms of the cost strategy, the NDIHA is fairly costly to manufacture as we are paying our
suppliers a fair price to buy the parts/goods. Therefore, when sold it is likely to be a bit more expensive than
many competitor apps, which are free. However, our product is a lot more efficient than the others. Market
wise, the market is very broad and there are many apps which indicate disasters.

3.7 Value Chain Activity: Make the product/service


The most important value chain activity in our business would be, making the product, i.e. the NDIHA. Or
company manufactures the goods we receive from suppliers, i.e we put together the smoke alarms and
antennas purchased from suppliers. Making the product, is the activity in Porter’s Value Chain model which
adds value to our company. The link between the value chain activity and the strategy is that, they go hand in
hand. The strategy is based on the most important value chain activity. It is of a high cost due to our business
also having to pay for labour costs to assemble the NDIHA, hence, the cost strategy is a high cost.
3.8 Business Processes
The first business process that takes place within our value chain activity (make the product) is the materials
ordering process. In the making of our product, the first step is to recognise and order the correct raw
materials to be able to make the product. For us to make the NDIHA, we must order the correct materials, in
order for us to make the product. The model can be illustrated as such:


My second business process follows on from the previous one, and is the manufacturing process. After
gathering the correct materials and storing inventory, we must assemble the parts together to make the
NDIHA. The model can be illustrated as such:


3.9 Functionalities
Two functionalities of the materials ordering process’s are:
 Keeping track of how much inventory is in the company at any particular time. This would be useful in
order for our company to make estimates on the amount of products we can actually make at a given
 To understand the materials needed and to be able to coordinate with suppliers to ensure materials
are supplied. If we are able to understand the materials needed, it would help in the process of
making the right orders to suppliers.
Two functionalities of the manufacturing process:
 To assemble and manufacture the products. This is the main functionality of this process, as it is the
actual creation of the NDIHA.
 To see the ratio of the amount of materials needed to produce one product. This will help in being
able to see how much the company needs to order to make one product.
3.10 Systems

The inventory management system would be useful in terms of keeping track of the amount of inventory
in the company at any given time. This system will quantify the inventory levels, hence, making it easier
to understand how much inventory is held and what type of inventory it is.
The production management system will help to see the amount of products assembled/manufatured and
the rate at which it’s being done, which helps in seeing the parts to product ratio. This system will keep a
clear record of each product that is made and when they are made.
The customer management system supports the manufacturing process, as the customers are able to give
us feedback on the product, NDIHA, we provide. Most of this feedback, will be based on the way in which
we manufacture the product. Therefore, it is foundation system, and helps in understanding the
customers needs and adapting to those needs.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information
Make the
product or

ordering process
- Keeping track of inventory levels at any given time.
- Understanding the materials needed and making
correct choices.

Inventory management system Transaction processing system
- Assembling the parts together to make the product
- Ratio of parts needed to the amount of products
Production management system
Customer management system
Transaction processing system
Executive information system


This business is out there to save the lives of many. The latest technology has been integrated in making the
NDIHA, and amongst the competitors it’s a new and very useful device to have in your house/business. It’s
direct connection to the CDQ ensures that people will always be connected, putting the scared hearts of many
at ease. Our strategy is strong and this concept is a groundbreaking idea which really changes everything. In an
unexpected occurrence of a disaster, this is the device that will help you. The business operating system is well
planned out and is concise, yet includes every bit of detail.
Layer 8. (October 2010). IBM says software helps predict natural disasters. Retrieved from:
Auckland Civil defence. Auckland Civil Defence Home. Retrieved from:
Arianne Cohen. 14 Disaster Kit essentials. Retrieved from:
Ian McLean, David Oughton, Stuart Ellis, BasilWakelin, Claire B Rubin. (29 June 2012). Retrieved from:$file
Google Store. (29 April 2014). Retrieved from
App store. (10 February 2014). Retrieved from:
Google store. Google store. Retrieved from:
Global Sources.
Antenna Systems and solutions. Retrieved from:
Natural Hazards Research Platform. (September 2009). Retrieved from: