You are on page 1of 12

1

INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
SEMESTER 1 2014

Name Alexandra Williams
NetID awil990
Group Number: 503
Website Link: http://infosys1102014s1group503.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Thursday 11am
Time Spent on
Assignment:
20 hours Word Count: 1649

2


2
CYCLIST EMPOWERMENT
INTRODUCTION
There is a general notion of fear when it comes to cycling as a form of transport. As roads
become more congested this is an issue which needs to be resolved. We seek to remove
the issue of safety by creating a device which cyclists can use to view their speed, retirieve
alerts of upcoming dangerous areas of road by gps and a sonar which gives off a signal to car
drivers. Car drivers would require a device which is installed into their cars to pick up the
signal that a cyclist is in close vicinity.
3. BUSINESS SECTION
3.1 Vision
We strive to empower cyclists who share bustling city roads with cars, to give them the
sense of security they deserve. By promoting a healthier and easier method of transport in
society we aim to take congestion away from our roads.
3.2 Industry Analysis
Industry: Cycling Safety Industry
Force: High/Low: Justification:
Buyer power: Low There are few safety products available to
cyclists. None of which are of electronic
advancement.
Supplier power: Low There are multiple companies that could supply
technology required to develop our product.
Threat of new entrants: High Howard (2013) showed that BSD technology
already exists and so it would be easy to adapt

3


3
our products safety features using this.
Threat of substitutes: High
The transport industry constitutes of many
different alternatives such as using cars, busses,
ferries and motorcycles, most of which are
already better established and give customers a
perceived higher level of safety than cycling.
(Telegraph Reporters, 2012)
Rivalry among existing
competitors:
Low
There are no products such as ours in the market.
Other safety products e.g. helmets and high-
visibility vests do not impose a threat as they
have been inplace for years and yet the notion of
cycling being unsafe still exists. Bluejay (2013)
suggests that helmets don’t provide any safety
value as the problems with their use counteract
the benefits.
Overall attractiveness of the industry: The product would have first mover advantage due
to the lack of already established safety products for cyclists. There is low competition and
the business strategy would support reducing the threat of substitutes.
3.3 Customers and Thei r Needs
Currently there are no statistics indicating a particular demographic profile are more
concerned with the safety of cyclists than others. NZ Transport Agency (2011) suggests that
the primary reason against cycling as a form of transport is due safety concerns. This
concern is dependent on varying factors. While one may not be concerned with their
personal safety, their conern may extend towards relatives/friends. Therefore the customer
base could be anyone with a remote interest in cyclist safety, including drivers themselves.
3.4 The Product and Service
The cyclists need for increased personal safety will be satisfied through the use of the
products sonar features. It will assure the cyclist that drivers will be aware that they are in a

4


4
close vincinity to them. A car drivers fear of potentially missing a cyclist due to not checking
their blind spot properly would also be remedied this way. Alerting the cyclist to upcoming
dangerous roads is important to a cyclist with uncertainities about unknown areas.
Inexperience could lead to a poorly judged decision. Having the device GPS pre-warning
alert would eliminate this fear of the unkown.
3.5 Suppliers and Partners
Suppliers:
1. Google
We would look at Google for supplying the device’s GPS system via Google Maps.
Google Maps is well established and is used on devices such as the iPhone
already.

2. Samsung
As the product will be a mini tablet like device we would look to using a major
electronics company such as Samsung who partakes in collobarativce projects to
supply the elctronic side of the device.
Partners:
1. Automotive Companies (such as Volvo)
Blind Spot Detection Technology (BSD technology) would be used to enable the
sonar system between the bicycle and the car to alert the driver that a cyclist is
close by. Volvo developed this technology over a decade ago. The technology is
capable of picking up the mass of a cyclist (Howard, 2013). We would work
alongisde a company such as Volvo in developing our own device sonar
technology for both the bicycle and for cars.

2. New Zealand Transport Agency
Support from a major governmental agency such as the NZ Transport Agency
would be an important partnership for marketing. This would give the product

5


5
validility as well as coming together to create a combined vision for the safety of
New Zealanders on our roads.
3.6 Strategy: Differentiation
 Competitive scope: Broad Market
The product is aimed at cyclists who chose cycling as a form of transport. Cyclists
such as mountain bikers would not find use for the product. However we also would
require car drivers to install the appropriate system into their cars. There is no
limitation on what type of car drivers would require the product as everyone who
choses to drive is almost certainly going to come across a cyclist when driving.
 Cost Strategy: High
It is important that the quality of the technology is not compromised to reduce the
cost of the product as its purpose is to protect valuable lives on the road. Another
driving factor would be the lack of initial demand. As of May 2013 cycling only made
up 2% of total time travelled by New Zealanders (Ministry of Transport, 2013). By
improving safety for cyclists it is hoped that this statistic would dramatically increase.
This in turn could have an effect on the future cost strategy.
3.7 Value Chain Activity: Market & Sell
Our product is built off societies current negative impression of cycling safety. As the aim is
to reverse this mind-set, and to market the product in a way that customers will associate
the device with safety and protection, how it is positioned in the market will be imperative
to it’s success or failure. It could potentially be difficult to convince customers of this
perception as the comfort of established, alternate transport methods may continue to
capture our target markets. If emphasis is placed on marketing, target groups would be
correctly identified and effective ways to appeal to these groups will be enacted. Due to the
relatively new nature of the device concept and that cycling is a slow moving sector of
transport it will be initially difficult to establish our product in the market. Cyclist and vehicle
retailers may initially be hesistant to partner with us to provide a platform for stocking our
product. If already established and respected companies decide to partner with us it will

6


6
also the product validility. Effective marketing and initial self-selling would therefore be
important to capture the interest of not only customers but future partners.
3.8 Business Processes
3.8.1. BUSINESS PROCESS 1 ONLINE PURCHASE PROCESS
The online functionality of this process would give customers from all over the world the
ability to purchase our product. This would be an essential starting platform to establish our
product in the industry. Not every customer would be able to go into the retail shops, which
stocked the device, as there may not be one in their immediate location, they may not have
access to transport and so on. This process removes these limitations. The online presence
in business has become an important trend. New Zealanders partake in this trend with
statistics showing that 95% of adults researching a product online before purchasing. It was
subsequently discovered that this lead to an online purchase 66% of the time (Giles, 2013).
Statistically proving that an online presence and adopting an online purchase process is
critical to the products success.

7


7


3.8.2. TARGET MARKET RESEARCH PROCESS
Identifying the tarket market correctly is critical as the concept is relatively new and
additionally the product stands in defiance of the negative impression that media has

8


8
created in regard to the safety of cyclists in big cities. The influential and widespread nature
of the media means this will be a difficult barrier to overcome. There is no current insight as
to who this group would be. To be sure that appropriate methods were being adopted in
the marketing of the product this would be an important process to conduct.

3.9 Functionalities
3.9.1. BUSINESS PROCESS 1
 Update shopping cart
 Calculate purhcase total
3.9.2. BUSINESS PROCESS 2
 Send online survey
 Collaborate data collected
3.10 Systems

3.10. 1. SPECIFI C I NFORMATION SYSTEMS 1: ONLINE PURHCASE SYSTEM

9


9
Updating a shopping cart and calculating a customers purchase total are required by an
online purchases system to allow customers to purchase the product online rather than
having to physically go into a specific retail store, removing location limitations.
3.10. 2. SPECIFI C I NFORMATION SYSTEMS 2: DATA ANALYSING SYSTEM
Collecting data by an online survey and then proceeding to collaborate this data would
tranform the data into readable information to deliver value to decision makers who would
then have the appropriate knowledge to make business decisions to market the product.
3.10. 3. SPECIFI C I NFORMATION SYSTEMS 3: PROFI LING SYSTEM
Compiling data from customers shopping carts would give decision makers more insight into
who their customers are and what they want. This would be beneficial in future
development of the product by ensuring that customers sfety reuqirements are being meet.

10


10
3.11. Summary Table: Value Chain to Systems

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

Market &
Sell
1. Online Purhcase
Process

1. Update shopping cart a

2. Calculate purhcase total
Online Purchase System

Profiling System
TPS

2. Target Market
Research Process
1. Send Online Survey

2. Collaborate data collected
Data Analysing System

Profiling System
DSS

CRM


11

11
CONCLUSION
In cities where the ability to create infrastructure to support cyclist safty is limited, using a
range of technology is the next logical step. This would create competitive advantages which
would eventually lead to an increase in the use of bicycles as a form of transport to take
away congestion from roads and promote a healthier lifestyle for New Zealanders.
REFERENCES
Bluejay, Michael. (2013). Whats wrong with bicycle helmets? Retrieved from
http://bicyclesafe.com/helmets.html

Howard, Bill. (2013). Blind spot detection: Car tech that watches where you can’t. Retrieved
from http://www.extremetech.com/extreme/165742-blind-spot-detection-car-tech-that-
watches-where-you-cant

Ministry of Transport. (2013). New Zealand Household Travel Survey 2009–2013: Cycling.
Retrieved from http://www.transport.govt.nz/assets/Import/Documents/Cycling-2013.pdf
Giles, Ron. (2013). New Zealand Internet statistics. Retrieved from http://www.website-
consultant.co.nz/Make+Money+Online/New+Zealand+Internet+Statistics.html
New Zealand Transport Agency. (2011). Assessment of the type of cycling infrastructure
required to attract new cyclists. Retrieved from
http://www.nzta.govt.nz/resources/research/reports/449/docs/449.pdf

The Guardian. (2014). Cycling in cities: the search for the worlds most bike friendly
metropolis. Retrieved from http://www.theguardian.com/cities/bike-
blog/2014/mar/04/cycling-cities-search-bike-friendly-metropolis

The Guardian. (2013). UK road deaths at record low but casualities rise. Retrieved from
http://www.theguardian.com/world/2013/jun/27/uk-road-deaths

Telegraph Reporters. (2012). Driving is five times more dangerous than cycling for young
men. Retrieved from
http://www.telegraph.co.uk/finance/newsbysector/transport/9729218/Driving-is-five-
times-more-dangerous-than-cycling-for-young-men.html









12

12