This document provides details about a business proposal for developing an advanced speed detecting chip. It includes a vision statement aiming to improve road safety. An analysis of the speed detection industry finds it has low competition and barriers to entry. The chip would provide police with a car's speed, destination, owner details and location to safely track speeding vehicles. Suppliers of chip components and potential partners like the government are identified. The business processes of inventory ordering and management are described along with the importance of procurement in the value chain.
This document provides details about a business proposal for developing an advanced speed detecting chip. It includes a vision statement aiming to improve road safety. An analysis of the speed detection industry finds it has low competition and barriers to entry. The chip would provide police with a car's speed, destination, owner details and location to safely track speeding vehicles. Suppliers of chip components and potential partners like the government are identified. The business processes of inventory ordering and management are described along with the importance of procurement in the value chain.
This document provides details about a business proposal for developing an advanced speed detecting chip. It includes a vision statement aiming to improve road safety. An analysis of the speed detection industry finds it has low competition and barriers to entry. The chip would provide police with a car's speed, destination, owner details and location to safely track speeding vehicles. Suppliers of chip components and potential partners like the government are identified. The business processes of inventory ordering and management are described along with the importance of procurement in the value chain.
This document provides details about a business proposal for developing an advanced speed detecting chip. It includes a vision statement aiming to improve road safety. An analysis of the speed detection industry finds it has low competition and barriers to entry. The chip would provide police with a car's speed, destination, owner details and location to safely track speeding vehicles. Suppliers of chip components and potential partners like the government are identified. The business processes of inventory ordering and management are described along with the importance of procurement in the value chain.
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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION 2014
Name Vaisue. Ioane NetID vioa466 Group Number: 339 Website Link: http://infosys1102014fcgroup339.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Mira Lee Friday 12p.m Time Spent on Assignment: 120 hours Word Count: 1638
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2 THE ULTIMATE SPEED DETECTING CHIP INTRODUCTION Though speeding is an extremely well known problem worlwide due to its widespread consequences of life loss, fatal/serious injuries, road crashes and more, we cant afford to ignore speeding on our roads. Speeding is a major problem because not only it consists social and monetary cost to the government and society, it also involves environmental costs. There have been many solutions to try and solve speeding as it has been around for a long time. In order for speeding to be resolve, its best to start from sovling its most common underlying cause of bad driving habits of the drivers. But of course we cant control their brain in order to stop their bad driving habits, however, we can enforce more on the consequences from speeding to remind the drivers about how hazardous and expensive speeding is at all levels. This solution will convince the drivers to at least minimise their bad driving habits which will lead to a decrease in speeding rate and therefore has a positive flow on effect on the different costs of speeding to the government, society and environment. 3. BUSINESS SECTION 3.1 Vision Improving road safety by providing the ultimate speed detecting chip. 3.2 Industry Analysis: Speed Detection Industry Industry: Speed Detection Industry.
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3 Buyer power: High Buyer power would be relatively high because there are also other products available for buyers to choose from, such as Dash Mounted radar (aka moving radar) set up in police cars, Hand-held laser (aka lidar), Mobile Speed Cameras and Fixed Speed Cameras. http://www.delonixradar.com.au/new-zealand/#camera Supplier power: Low Supplier power would be low because there are quite a lot of suppliers around the world that supplies speed detecting components such as Global Sources, Alibab.com, Indiamart and etc. http://www.globalsources.com/manufacturers/Computer- Chip.html http://www.alibaba.com/showroom/vehicle-speed-monitor.html http://www.indiamart.com/ Threat of new entrants: Low Threat of new entrants would be low because its very hard to enter the market as it requires a lot of set up costs (e.g technology), knowledge and time. http://www.delonixradar.com.au/new-zealand/ Threat of substitutes: Low Threat of substitutes would be fairly low because there are only very few subtitutes available, such as offering speeding tickets. Rivalry among existing competitors: Low Rivalry among existing competitors will therefore be low because there arent many competitors in the Industry in N.Z. Overall attractiveness of the industry: Very attractive. Huge potential of becoming a business.
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4 3.3 Customers and Thei r Needs The targeted customers will most likely be the police and racer speed detertors, because it is such a high-quality product and is only suitable for them and their different situations. This is because the chip will satisfy their needs by improving road safety issues for N.Z police and improving the speed for the racer detectors in order to solve the problems of why the car isnt fast to win the race. From research, it has proven that speed cameras decreased the amount of road crahers, but there is still a significant amount of drivers that needs serious treatments. However, by using this particular high-quality chip that captures high-quality information for the police to chase secretly and safely after the speeding car. This technology will further improves road safety as it is more efficient than the existing speed camera detectors. For racer detectors, the chip which will be attached to their hand-held cameras will satisfy their needs by providing information such as what is the current speed and to see whether there is a potential to increase this speed as the chip also indicates the maximum speed the car can go.
3.4 The Product By using the chip, it will bring a range of advances to the police. Firstly, it is tiny and easy to hide and fit behind all of the existing cameras. It doesnt only capture the speed of the car but also all the information regarding the destination, profile of the car owner (registered under the number plate) and the direct location where the car is heading. All of this information is sent to the police station and a police officer will deal with it. By using the chip, it gives them the satisfaction that they dont have to chase the car down in order to track them because they didnt have the information about the destination of the car. Therefore, using the chip will bring satisfaction to the police and making the process of catching the speeding car less pressured and more efficient.
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3.5 Suppliers and Partners Supplier 1: Global Sources is a Computer Chip Manufacturer & Computer Chip Supplier which could be a potential supplier for the aditional materials needed for example the silicon to complete the chip. Supplier 2: Alibab.com is a Global trade supplier of chip components which can be a potential supplier for the business. This is because most of the materials needed fo the production of an advance chip is hard/expensive to fund in N.Z therefore its cheap to import from overseas suppliers. Partner 1: The Government would be a potential partner for the business because the government is one of the parties that is quite severely affected by the consequences of speeding such as social cost. Therefore, theyd like to get involve and minimise the problem which will decrease the social cost associated. Partner 2: Ministry of Transport would be a potential partner because they are always inrerested in improving road safety. 3.6 Strategy: Focused High Cost Speed detecting industry is at a focused market scale, focusing on speed detection firms. High Cost Speed detecting chip. The overall strategy is therefore Focused High Cost 3.7 Value Chain Activity: Procurement The most important value chain activity for this business is Procurement. Procurement is absolutely crucial to the Industry because everything is revolved around this activity such as ensuring that the chip is efficient that will improve the process of catching speeding cars by providing enough information of the destination of the driver. Furthermore, procurement is mpotant because it delivers more value than other existing
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6 activities. Businesses that are religiously importing, procurement becomes a very strategic function to improve their profitability. Procurement is seen as helping to streamline processes, reduce raw material prices and costs, and identifying better sources of supply. 3.8 Business Processes 3.8.1. INVENTORY ORDERING PROCESS This is a crucial process of the business because it deals with ordering the parts of the chip that is needed. It helps to identify the right amount of materials we need to order, the right quality material that meets the business quality standards and how much the materials cost.
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7 START Identifying what materials we need Identify how many different types of materials we need More than one different type of materials. Place two separate orders for two different types of materials Place only one simple order for one particular material Only one type of material needed Create a Purchase requisition Hoe many materials do we need Create and send a purchase order Check if the received materials match the order Create a purchase return Create an invoice NO YES Warehouse Department Ordering System Create an invoice Receive an invoice END
3.8.2. INVENTORY MANAGEMENT PROCESS Inventory Management system is also crucial to the business because it focuses on managing our materials. This helps the business identifies any missing or needed materials.
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8 START How much inventory do we have Do we have all the materials we need? Order the materials needed NO Assemble all the materials YES Proceed with making the product Materials Management System Warehouse Department How long is it going to take to make the product Extend working hours Exceed the time planned Less than time planned Go back and re- visit the steps How many products can we make with the given materials END
3.9 Functionalities 3.9.1. INVENTORY ORDERING PROCESS Identifying what parts of the chip we need. Create a purcahse requisition. 3.9.2. INVENTORY MANAGEMENT PROCESS Labeling where the materials are stored. Counting how many products we can make.
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9 3.10 Systems
3.10. 1. MATERI AL ORDERI NG SYSTEM This system helps support the inventory ordering process by identifying clearly what components of the chip is needed. After identifying the components, the order then can be placed forward, which is why this system is very important to the material ordering process. This system is also importanat because if order the wrong component, then the chip wont be as efficient as it should be because we wont have the rigth componentd hence our vision of providing the ultimate speed detection chip. 3.10. 2. MATERI AL MANAGEMENT SYSTEM Having this system is absolutely crucial to the business because it supports both inventory ordering process and in inventory management process. It incorporates the funtionalities of idetifying the amount and different types of components we need to order. Also, it incorporates the identity (quality) of the components if they meet the business standards, therefore, it is crucial to have this system because it impacts on producing the ultimate speed detection chip. 3.10. 3. MATERI AL LABELLING SYSTEM This system is crucial because it supports inventory management process. It incorporates the funtionalities of labelling where the materials are stored which will affect the identfication of how many materials we have in order to determine which components we need . Therefore, this system is important because it helps improve on the quality of the chip and to ensure that we are providing the ultimate speed detection chip.
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10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Procurement 1. Inventory Ordering Process 2. Identifying what parts of the chip we need.
3. Create a purcahse requisition. Material ordering system.
Material management system. Collaboration System.
Transaction Process System. 4. Inventory Management Process 1. Labeling where the materials are stored.
2. Counting how many products we can make. Material labeling system.
Material management system.
Supply Chain Management System.
Enterprise Resource Planning System.
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11 CONCLUSION To conclude, the vision of the business is to provide the ultimate speed detection chip to improve road safety in N.Z. By using information system such as material management system, material ordering system etc, it has helped deliver value by purchasing the right amount and type of component needed to complete the production of the chip under the Procurement value chain activity. This adds value by ensuring that the chip is efficient and capable of providing extra information such as the distination of the driver speeding that speed cameras and razors dont provide. REFERENCES
1. The World Bank Group (2002) Roads and Highways: Road Safety. Retrieved from http://www.worldbank.org/transport/roads/safety.htm
2. BarcodesInc (2014) What is Inventory Management. Retrieved from http://www.barcodesinc.com/articles/what-is-inventory-management.htm
3. Ministry of Transport. (2014). Speed crash facts. Retrieved from http://www.transport.govt.nz/research/crashfacts/speed/
4. Ministry of Transport. (2014). Down with speed. Retrived from http://www.transport.govt.nz/assets/Import/Documents/_versions/3863/ACC672- Down-with-speed.1.pdf