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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Blair Rankin
NetID Bran079
Group Number: 030
Website Link: http://infosys1102014fcgroup30.blogspot.co.nz/p/d2.html
Tutorial Details
Tutor: Day: Time:
Kayur Ramson Saturday 10am
Time Spent on
Assignment:
8 Hours Word Count: 1042

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SUNSCREEN VENDING MACHINE
INTRODUCTION
2200 people die every year in New Zealand as a direct result of skin cancer. To combat this
issue we have developed a fun and interactive way of providing greater quantites of
sunscreen to Kiwis. How? Through a vending machine that dispenses sunscreen. A smart
phone will scan a QR code opening a website with sun safety related questions. Answering
these will then despense a 50ML container, normal purchasing is also avaliable at $2.00
each. From this development we hope to reduce the number of fatalities by providing a
proven aid at helping stop the development of Skin Cancers.
3. BUSINESS SECTION
3.1 Vision
The Reduction of New Zealand Skin Cancer Fatalities through fun and interactive
technologies.
3.2 Industry Analysis: high tech application industry
Industry: high tech application industry
Force: High/Low: Justification:
Buyer power: High Buyer power is high as there are many different
companies and independent developers that can offer
high tech applications. With the sheer number of
suppliers, consumers can pick and choose between
aplications that suit them best (analytic network
process,2008)

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Supplier power: Low Supplier power is low due to the vast number of outlets
for high tech applications more than 1 million apps are
in the App Store (Ingraham 2013)with the assumption
that even 10% of these are high tech applications there
are a least 100,000 suppliers.
Threat of new entrants: High Threat of new enterance is high as there are very few
barriers to entrance in the High tech application industry
Apple iOS, Windows Phone, Android; paid plans start at $9
per month plus a $199 one-time fee for self-publishing
capabilities(Clancy 2014)
Threat of substitutes: High Threat of substitutes is high as
Rivalry among existing
competitors:
High Rivalry among competitors is high due to the vast
number of suppliers in only three major distibuting
markets (apple store, android market place, independent
distribution) With only a few major distributors
companies are forced to stand in order to be seen (Jain
& Bansal,2011)
Overall attractiveness of the industry:
The overall attractiveness of the industry is high. Even thought there is high buyer
power,low supplier power and high threat of new enterance.
This is due to the barriers of entry being very low and very high
BIBLIOGRAPHY
Process, A. N. (2008). Evaluating buyer-supplier relationships in high-tech industry. (pp. 2677 - 2682). Beijing :
IEEE.


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future usage of high tech applications in every day life both commercial and recreational
ensuring a constant demand for these products.
3.3 Customers and Thei r Needs
The target demographic of customers for our sun screen vending machine are the 81% of
kiwis that dont wear sun screen everyday (Wade, 2012) This covers the majority of the
population so a crucial aspect of this product is accesibility. Another feature that is vital to
success is time. In todays day and age where time is money people will not stand around for
something. A study conducted shows that adult attention spans are ever decreasing The
study looked at how consumers used over 500 news apps across 100 million iPhone,
Android and Windows smartphones between July 2012 and July 2013.It found that
consumers spent on average 26 per cent less time interacting with the apps during each
session (Bakwr 2013). Failing to deliver the product quickly will causes losses in potential
customers.
3.4 The Product and Service
The Sunscreen Vending machine meets the need for accessibility as it can be placed into
areas of high traffic with little to no disturbance eg. Public transport (Bus stops, ferry
terminals, Train stations), Shopping centres and dairies by the beach. Accessibility also
means the ability to use. This is why our vending machine doesnt differe from a standard
vending machine. Similar to standrad vending machines ours will take no longer to dispense
sunscreen allowing for quick turnover.
3.5 Suppliers and Partners
Nivea could be a potential supplier of the sunscreen with Vending Direct supplying the
vending Machine Hardware. Two partners could be The cancer society to help advertise
awareness and Coca Cola in conjunction with their Open Happiness summer beach
orientated campaign/vending machines.
3.6 Strategy: Cost Leadership

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Cost leadership is used as we will be targeting a large portion of the NZ population (81%)
and will be using price (free/$2) as a bargaining factor to enitic customers.
3.7 Value Chain Activity: Market and sell the product/service
Market and sell the product/service is a key VCA as this products success will be directly
related to the number of people aware to it. With the free/cheap product it offers, once
people are aware of it chances they will use it are very high. The more people using this
sunscreen will then hopefully reduce the fatalities from skin cancer acompllishing ourvision.
3.8 Business Processes
Dispensing of product













This process is important to the organisations as it lets the storage warehouse know where
and how much stock to dispatch to certain machines. Without this process it there would
also be no product sold ending in the company failing.

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Marketing the product
Marketing the product is important to the organisation as without consumer knowledge
they wont know the product exists and wont buy due to not knowing about it.

3.9 Functionalities
3.9.1. Stock levels and Payment
3.9.2.
3.10 Systems

3.10. 1. Stock Management system: This system allows HQ to identify where the most
products are being sold and in what areas. This information can then be used to emulate in
other regions
3.10. 2. Payment method system: This system allows HQ to monitor which method of
payment is more popular and in what regions each method is more effective .
3.10. 3.

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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)
Marketing and
selling the
product

1. 1.
2. 1.

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CONCLUSION
The sunscreen vending machine is a positive product that could help benefit society in a
very real way. With the payment system being both cheap and educational it will help curve
the number of skin cancer cases within New Zealand. The IT systems in the vending
machine is what will set it apart from other sources as it is these that make it quick and
convieniant for the evryday customer.
REFERENCES
Analytic Network Process. (2008). Evaluating buyer-supplier relationships in high-tech industry. (pp. 2677 -
2682). Beijing: IEEE.
BAKER, N. (2013, August 21). With apps consumers have short attention spans. Retrieved May 24, 2014, from
Stuff.co.nz: http://www.stuff.co.nz/technology/digital-living/9069974/With-apps-consumers-have-
short-attention-spans
Clancy, H. (2014, May 18). Handy code-free mobile app development resources for small businesses. Retrieved
May 24, 2014, from ZDNET: http://www.zdnet.com/blog/small-business-matters/14-diy-mobile-app-
development-resources-for-small-businesses/2288
Ingraham, N. (2013, October 22). Apple announces 1 million apps in the App Store, more than 1 billion songs
played on iTunes radio. Retrieved May 24, 2014, from The Verge:
http://www.theverge.com/2013/10/22/4866302/apple-announces-1-million-apps-in-the-app-store
Shweta Jain, N. B. (2011). Mobile Aplications:A consulting report that defines the entry stratagey for client
company. Kharagpur: E-Bonds.
Wade, A. (2012, September 6). Kiwis blas over sun's deadly rays. Retrieved May 24, 2014, from New Zealand
Herald: http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10832000