Name Daniel Wai Ho Yuen NetID wyue339 Group Number: 185 Website Link: http://infosys1102014s1group185.blogspot.co.nz/p/d2- wyue339.html Tutorial Details Tutor: Day: Time: Olivia Schultz-Duffy Wednesday 9am Time Spent on Assignment: 25 hours Word Count: 1374 words
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2 INSERT AN APPROPRIATE TITLE HERE INTRODUCTION Today most people have too many cards in their wallets including membership cards, bank cards, ID etc. Therefore, people spend too much time trying to find the right card for certain purposes. Our solution is create a new system called Exec Card which combines all of ones card information into this card system and links it to the different servers. That way people dont need to carry a thick wallet around or even more than one. 3. BUSINESS SECTION 3.1 Vision We aim to be the only card in your wallet. 3.2 Industry Analysis: Smart card Industry Industry: Smart Card Industry Force: High/Low: Justification: Buyer power: High The buyer power is high because it has many competitors in the market. Customers have the choice to the company that can fulfil their needs. For example, Coin is a competitor in this industry. (Coin, 2014) Supplier power: Low The supplier power is low because there are many suppliers for card materials, and software supporters for this industry. Therefore, companies have the choice to choose the lowest price supplier. For example, ABnote is a manufacturer campany for making smart cards. (Abnote, 2014)
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3 Threat of new entrants: High The threat of new entrants is high. For example, MIFARE is a NXPs series of chips widely used in smart cards; this is easy and low cost to set up a new smart card system. (NXP, 2014) Threat of substitutes: High The threat of substitutes is high, this is because cash is the substitute for EFTPOS cards, and keys and biometrics are the substitute for doors access control. For example, Accurate Biometrics is a service corporation providing fingerprint-based background checks to agencies and organizations. (Accurate Biometrics, 2014) Rivalry among existing competitors: High The rivalry among existing competitors is high because there are many competitors in the market. They all offer different prices to customers. CardSmart Technologies is an example, they provide identity management and loyalty marketing CRM etc. (CardSmart Technologies, 2013) Overall attractiveness of the industry: Although the supplier power is low, the other forces in this industry are high and this outweigh the low supplier power. Businesses in this industry are at high risk of going under or not being sustainable, thus making this industry unattractive. 3.3 Customers and Thei r Needs Exec Card is for someone who has many cards in their wallet. Too many membership cards, ID cards and EFTPOS cards in a wallet will result in a thick wallet. In the membership loyalty program, points are awarded when the customer makes a purchase. If they forget to bring that particular card, they will miss out on the points. (Thorin Klosowski, 2013) 3.4 The Product and Service The idea of Exec Card is to link all the cards that customers have and replace them with just one card which can enter different servers. This process can reduce the number of cards in peoples wallets and customers can use the membership information while the payment transaction is processing. 3.5 Suppliers and Partners This industrys suppliers are software supporters and card materials. For software supporters, they design the system, do the testing and provide IT support. For card materials, they are doing card design and manufacturing the cards.
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4 This industrys partners are shops and banks. For shops, their membership cards can link to our server. For banks, they have credit cards, debit cards and EFTPOS cards which can link to our server to build up a strong network. 3.6 Strategy: Cost Leadership Exec Card is a concept of linking all the cards into one system to decrease the number of cards and the time of processing. There are similar systems in the market, so it is set in a broad market. Exec Card is a system linking different card servers. All card servers are built already, so it does not cost much to create and run this system, thus making it a low cost strategy. Therefore the overall strategy is Cost Leadership. 3.7 Value Chain Activity: Deliver the product or service The most important value chain activity for this business is Deliver the product or service. The concept of Exec Card is linking all the cards into one system and our vision is to be the only card in peoples wallet. Therefore we try to provide this new system as a choice, where customers can design which solution is the best for their needs. The reason we develop this system to our customers is to make their lives easier. Also, in the broad market the low cost strategy can allow more people to afford this service. 3.8 Business Processes 3.8.1. CUSTOMER ORDER PROCESS - The customer order process shows how we take customers orders. First of all, when we receive the customer order, the information will go to Sales Department and Customer Orders System. Then the business needs to make a decision whether the customer has paid or not. If they have paid we need to ask the next question, Did the customer give an address? If they have then we ship the order, otherwise we need to ask them to provide the address. If the customer has not paid however, we need to ask, Does the customer still want to purchase? Then if the customer is still willing to purchase the product they have to pay the fees, if not, the process will end.
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5 REPLACE WITH BUSINESS PROCESS 1 MODEL
3.8.2. CUSTOMER PAYMENT PROCESS - The customer payment process shows how we receive the monthly payment fees. First of all, we collect the information from Sales Department and Customer Database to identify the customers and send an invoice. Then the business needs to check whether they received the payment or not. If they have
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6 received one, they will keep providing the service. If they have not received one, they need to ask, Does the customer still want to use the service? Then if the customer is still willing to use it then they have to pay the fees, if not, the business will cancel the service. The process will end. REPLACE WITH BUSINESS PROCESS 2 MODEL
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7 3.9 Functionalities 3.9.1. CUSTOMER ORDER PROCESS Receiving the order from customers Sending the product to customers 3.9.2. CUSTOMER PAYMENT PROCESS Sending the invoice to the customers Receiving fees for the service from customers 3.10 Systems
3.10. 1. CUSTOMER ORDER SYSTEM Customer Order System is recording orders from customers, so each time a customer places an order the customer order system records it. That way we know how many Exec cards we need to supply to our customers. 3.10. 2. CUSTOMER PAYMENT SYSTEM Customer Payment System is sending invoices to customers and checking if the business received the fees from customers or not. It also manages fees from customers. 3.10. 3. INVENTORY CHECKING SYSTEM Inventory Checking System is checking the raw material in the business. Each time a customer places an order, the system will check if the business has enough material to make the cards, if not the system will order the material.
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8 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Deliver the Product or Service 1. Customer Order Process 1. Receiving the order from customers.
2. Sending the product to customers.
Customer Order System
Decision Support System 1. Customer Payment Process 1. Sending the invoice to the customers
2.Receiving fees for the service from custome
Customer Payment System
Transaction Process System
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9 CONCLUSION We are using Customer Order System, Customer Payment System and Inventory Checking System to provide the service to our customers. By incorporating all these information systems we will be able to provide our service and product to a wide range of customers more effectively and efficiently, helping us achieve out cost leadership strategy. This will help us fulfill our vision which is to be the only card in peoples wallet. REFERENCES
1. Coin. (2014). CoinUse One Coin for All of Your Cards. Retrieved from https://onlycoin.com/
2. ABnote. (2014). Business profile. Retrieved from http://www.abnote.com/
3. NXP. (2014). MIFARE smart card and ICs. Retrieved from http://www.nxp.com/products/identification_and_security/smart_card_ics/mif are_smart_card_ics/
4. Accurate Biometrics. (2014). Accurate Biometrics. Retrieved from http://www.accuratebiometrics.com/index.asp
5. CardSmart Technologies. (2013). CardSmart Technologies. Retrieved from http://www.yourcardsolution.com/index.php
6. Thorin Klosowski. (2013). How Can U Downsize My Ridiculously Large Wallet?. Retrieved from http://lifehacker.com/5992902/how-can-i-downsize-my- ridiculously-large-wallet