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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Ingi Shim
NetID Ishi126
Group Number: 130
Website Link: http://infosys1102014group130.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 1pm
Time Spent on
Assignment:
21hours Word Count: 1635

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T-CHECKOUT SYSTEM
INTRODUCTION
Everyone of us has felt that queuing in the supermarket is the most boring experience ever
at least once in our life. Sometimes we sigh before we even queue, due to its endless
looking line. However, we have come up with T-Checkout, which is the combination of a
mini self-check out machine and a cart. Our product offers instant payments anywhere,
anytime, once the shopping is done.
3. BUSINESS SECTION
3.1 Vision
Minimize the checkout processes to maximize the customer satisfaction.
3.2 Industry Analysis: Self-Checkout machine Industry
Industry: Self-Checkout machine Industry. Industry consists of firms supplying self-checkout
machines to the retailer shops.
Force: High/Low: Justification:
Buyer power: High Many firms provide POS(Point of Sales) service; in
other words, self-checkout system, to retailer
shops. For instance, ECRS, IBM,NCR, 3M, Utopia
and Fujitsu. Therefore the buyer power is
considered to be high as many sellers offer POS
service.
Supplier power: Low Due to the high competition between the firms
within the industry, each firm tends to have their
own supply chain which allows them to focus on
developing their differentiated products. For

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example, IBM manufactures the IBM Self
Checkout System 170 Full-Lane Wide and IBM
also manufactures the Security Module 6.
Moreover, the 3M corporation not only sells the
self-checkout machines but also manufactures
the self-checkout machines. (ROSEMARY
NOTOLLI, 2001)
Threat of new entrants: Low Supplying the self-checkout machine is a
complicated procedure, where the firm needs to
manufacture hard-wares, develop the soft-ware
systems and also be aware of installation
techniques. All three factors are required to
become a supplier of POS to retailer shops.
Moreover, considering that the companies
providing POS service were originally big firms, it
suggests that sufficient funds are required to start
up the business in this industry. For example,
NCRs main business service is helping transaction
processes.
Threat of substitutes: Low There are no other substitutes to replace self-
checkout machines. Unless the retailer shops
decide to hire more cashiers, nothing can replace
the self-checkout machines. Therefore the threat
of substitutes is regarded to be very low.
Rivalry among existing
competitors:
High Several manufacturers are already providing
different types of self-checkout counters as it
became conventional and multi-functional for

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retail owners. These companies are offering a
wide array of store fixtures and display cases plus
they also provide free installation, preventive
maintenance, software monitoring and support
and many more. (deesonarnibal, 2013).Due to
the generalization and popularity of self-checkout
machines now, the companies are offering
differentiated products to their customers to gain
a competitive advantage in the industry. These
attempts reflect the high rivalry within the
industry.
Overall attractiveness of the industry: There are a number of large firms in the self-check
out machine industry. Threat of substitutes is considered to be very low which could be
appealing for the new entrants. However, high rivaly among the existing companies and the
high standard of technology needed keeps the new entrants away from entering the
industry.
3.3 Customers and Thei r Needs
Retailer shops having problems with slow circulation of customer in & out flows are the
potential customers. Shops failing to manage stretching lines are likely to discourage some
customers from shopping in those places. For example, a survery undertaken by Barclays
and Barclaycard discovered that two fifths of customers refuse to queue for longer than
two minutes and fifty-one per cent of shoppers refuse to even enter a store if they spy a
queue. Therefore, if the firms want to provide sufficient space and attract more
customers, they are the potential customers of T-checkout system. (Harry Wallop,2010)




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3.4 The Product and Service
One of the biggest advantages of T-Checkout is that there is literally no waiting time.
Customers using T-Checkout will make the payment straight away once their shopping is
done. They will pay through the mini self-checkout machine attached on their carts, and the
machine will proceed all the transaction processes that used to happen at the counter. This
reduction of steps in the payment process will satisfy lots of customers with its ease and
speed.
Trivial steps such as queuing and moving the goods from the cart to plastic bags throughout
the checkout process are the fundamental reasons for queues being created. Our T-
Checkout system has crossed out all of these trifling steps, thus it is very unlikely that
queues will be formed.
3.5 Suppliers and Partners
As mentioned above, T-Checkout system is the combination of a mini self-checkout machine
and a cart. Therefore, one main supplier is the self-checkout machine software producers,
such as NCR. NCR offers their customers various types of systems such as NCR selfserv
60,70,71 and 72 in New Zealand. On the other hand, another main supplier would be a cart
supplier. In NZ, Metaltech Industries 2002 Limited supplies various types of shopping trollies.
From the products supplied by these two different suppliers, T-Checkout will be produced.

Partners would be the credit card companies such as Mastercard, Visa or Eftpos. T-Checkout
will have to build partnerships with them, as the customers will make their transactions with
cards using the mini-machine. Moreover, to prevent thievery of unscanned products, the
assistance of EAS gates is essential. TAG company provides the installation and maintenance
of the EAS gates where the unscanned products are scanned and alerted.



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3.6 Strategy: focused high cost
T-Checkout aims for the narrow market. T-Checkout system is made for supermarkets with a
slow rate of customer circulation. Retailer shops ,with high customer-density and slow rate
of customer outflow, are the targeted customers for this service.
Installation of T-checkout is costly, as it uses high technology and has to be installed into
every cart at the supermarket. Therefore, this is a high cost cost strategy.
The overall strategy is therefore focused high cost.
3.7 Value Chain Activity: manufacturing of the service
The most important value chain activity for this business is manufacturing of the service.
The timeless payment process is the most powerful strength of T-Checkout. The ultimate
purpose of the service is minimizing the checkout process to maximize customer satisfaction.
Therefore our business mainly focuses on how our service can possibly fulfill the customers
demand. Moreover, we provide differentiated products which is the only option available to
reduce time-consuming checkout process in the market.










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3.8 Business Processes
3.8.1. CREDI T CARD PAYMENT PROCESS Regarding that all the payments through T-
Checkout system are going to be made in card transactions, credit card payment process is a
crucial business process for our service. First the requested payments by the customers will
go through the merchant and reach the pay gateway where the payment is authorized.
When the request passes gateway, it reaches the department of information to verify the
customer details, transaction types and amounts. After the verification procedures, credit
card companies access the customer information system and authorize the available funds
in the customers credit cards. Once the request is approved, payment is confirmed on the
machine.

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3.8.2. INVENTORY MANAGEMENT AND DELIVERY PROCESS Inventory managemet system is
used so the firm can respond to customer orders promptly. When the order is placed, the
management team will check the customer information from the database system and
check the warehouse circumstance as the same time. However, if the stocks are in short,
the system will let production department for more production. Whereas in case of
sufficient stocks in the warehouse, delivery process will begin once the payment has been
confirmed.




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3.9 Functionalities
3.9.1. CREDI T CARD PAYMENT PROCESS
Search customer information in the database
Store customer information in the database
3.9.2. INVENTORY MANAGEMENT AND DELI VERY PROCESS
Communication between the inventory management department and the
production department
Receive orders and responding to them
3.10 Systems

3.10. 1. INVENTORY MANAGEMENT SYSTEM This system controls the amount of inventory.
The system allows the management team to quickly check the availability of stocks so it
responds to customers demand in time. It also constructs a smooth communication line
between the production team and the inventory management team by allowing them to
access the same database. Thus both of them can respond to customer enquries efficiently.
3.10. 2. TRANSACTI ON PROCESSING SYSTEM Fast and secure transaction processing system
is required to minimize the payment steps and maximize customer satisfaction. Because of a
fast and simple payment method, this system is frequently used between suppliers and
buyers. It supports the transaction process for their convenience.
3.10. 3. MANAGI NG INFORMATI ON SYSTEM This system is for organizing customers
information in the database systematically. For example, when consumers are requesting
credit cards transactions, their information can not be checked every single time. Therefore
systematic information system is needed to proceed the transaction processes effectively.
Fast transaction processes will contribute to the time reduction in the checkout process and
increase customer satisfaction.

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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)

Manufacturing
of the service
1. Credit Card
Payment
Process
1. Search customer information from database

2. Store customer information in database
Customer information
management system
Transaction process system
2. Inventory
Management
Process
1. Communication between the production teams
and the inventory management team.

2. Receiving orders and responding to them
Information integration system

Order processing system
Inventory management
system

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CONCLUSION
Our business will continue improving our T-Checkout system to meet the consumer
satisfaction and exceed the consumer expectation. We will improve on developing more
efficient information system and advanced technology to keep our customers satisfied.
REFERENCES

NCR. About NCR. Retrieved May 23, 2014, from http://www.ncr.com/about-ncr

Metal Tech, About Metal Tech, Retrieved May 20,2014, from HTTP://WWW.METALTECH.CO.NZ/
NCR, Self-Service Solutions, Retrieved May 20, 2014, from http://www.ncr.com/products/gm/self-checkout-
systems
TAG company, EAS Solutions, Retrieved May 21, 2014 from http://www.tagcompany.com/products/all-
solutions.aspx