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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Victoria HolyoakeNetID vhol726Group Number: 238Website Link: http://infosys1102014s1group238.blogspot.co.nz/p/d1.html

Tutorial DetailsTutor: Day: Time:Kit-Wah Huang Wednesday 1pm

Time Spent on Assignment: 19 hours Word Count: 1648

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DEHYDRATIONINTRODUCTION

“Almost all diseases can be linked to dehydration” (Heimlich, 2012). The main causes of this

problem are a lack of knowledge and desire regarding water and the symptoms are

potentially fatal. To help solve this issue we have designed a drink bottle, which measures

individual’s saliva levels to calculate and display the required amount of water to consume

for adequate hydration. This will address the root causes of the problem and encourage the

consumption of water. It’s effectivness will be anaylised by the numerical change in people

admitted to hospital with dehydration as a symptom.

3. BUSINESS SECTION

3.1 Vision

To improve worldwide health by making a technologically advanced, easy to use product

that will effectively monitor water consumption to aid humanity.

3.2 Industry Analysis

Industry: Portable hydration monitoring industry.

This industry encompasses all methods of monitoring individuals hydration levels portably

such as water bottles, apps and watches.

Force: High/Low: Justification:

Buyer power: High Buyers have many choices when buying portable

hydration monitors. There is an large yet

homogenous range sold online and products are

being developed such as BluFit and Cantimer who

are soon releasing new products to the market.

There are also a lot of substitutes available so

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buyers have very high power.

Supplier power: Low There is a significant number of suppliers for this

industry because the necessary component are

not unique until the product is created. This is the

case for the LCD screens, exemplified by the news

article “LG, Samsung Display feel heat from little-

known Chinese LCD makers.” (Kim, 2013). This

shows anyone can manufacture the components

so suppliers have low power.

Threat of new entrants: Low “Measuring dehydration quickly and non-

invasively has been a difficult task due to

variation between individuals and lack of easily

targetable indicators.“ (Gibbs, R. et al, 2013). For

a competitor to enter the market with a new

product they must conduct substantial R&D to

gain a competitive advantage. This is likely to

become high threat in the future but in the

current market is low.

Threat of substitutes: High “Many methods exist for hydration status

measurement; however only a few methods are

valid and reliable for clinical measurements.”

(Niemann, 2012). There are numerous substitutes

for this industry but these can often be unreliable

and/or inconvenient. Substitutes include methods

such as online tests, apps and urine sampling.

Rivalry among existing

competitors:

High There are many competing products such as

BluFit who “set out to create the first smart water 3

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bottle!” (Indiegogo, 2014) and Cantimer who

“intends to introduce a family of hand-held

devices…that provide…feedback on changes in…

hydration.” (Cantimer, 2009) Each competitor

tries to establish their own completive edge by

being the ‘first.’

Overall attractiveness of the industry: This industry is relatively unattractive and will only

become more so in the future as more competitors will be able to enter. This means speed of

entry and competitive advantage are a necessity.

3.3 Customers and Their Needs

Our potential customers are males and females between the ages of 5 – 75, as people older

and younger are unlikely to use drink bottles. More specifically this encompasses students,

as a large proportion are dehydrated, establishing this as a priority target market. Kids are

another target as “Children have higher risks of dehydration because their thirst

mechanisms are immature”. (Good Hydration, 2014). Our customers must have access to

clean water and are likely to be a moderate to high-income earner, as our product has a

high quality focus. Athletes are also a large proportion of our market because “Dehydration

influences several aspects of exercise in a negative way” (Decker, 2014).

3.4 The Product and Service

Our water bottle will be an effective solution for these groups as it is accurate, easy to use

and durable. When the user takes a drink of water a built in cap sensor measures their saliva

and displays it’s recording on the screen with the amount of water to consume for optimal

hydration. This allows our customers to easily see their hydration level and will know their

individualised amount of water to consume. This satisfies the needs of our users and

addresses the core causes. Our product will be one of the best on the market as “Existing

bioimpedance devices are inconvenient as they are bulky and do not allow for easy off-

loading and display of data.” (Gibbs, R. et al, 2013). This will ensure we gain a competitive

edge as our drink bottle counteracts these issues.

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3.5 Suppliers and Partners

One potential suppliers would be Midas who aim "To provide fast, reliable service, supported by

a high level of technical and commercial skills, delivered with the personal touch.” (Midas,

2014). They sell a wide range of customised, high quality LCD screens necessary for our product.

Another supplier could be Aotea Plastics Industries Limited who state that “The diversity of our

manufacturing processes has led us…to better serve our customers.” (Aotea Plastics Industries

Ltd, 2014). They focus on making custom drink bottles of high quality, which is perfect for our

product. We would receive our necessary materials off these suppliers in exchange for cash.

A potential partner is the American College of Sports Medicine who are heavily involved in

researching hydration measures. This would be mutually beneficial we will have access to

advanced hydration monitoring methods and helps ACSM receive recognition of their work.

Another potential partner is the New Zealand health board as our product would benefit

such a large proportion of society it would be highly beneficial to receive their endorsement

and in doing so would raise awareness for them.

3.6 Strategy

Our drink bottle will have a very broad market due to our extensive customer range as our

product is suited to most people. Our product would benefit a vast majority of society and due

to it’s ease and effectiveness this customer range is highly likely to purchase our product,

therefore has a broad competitive scope.

Our drink bottle will be more expensive than existing ones on the market due to the high quality

and effectiveness of technology incorporated, giving us a high cost strategy. This will be suitable

for our target market as their income bracket would fit this cost structure.

The overall strategy is therefore Differentiation.

3.7 Value Chain Activity

The most important value chain activity for this business is Procurement.

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To ensure our product achieves our vision sourcing high quality materials will be a main

priority for our company. This will ensure our product is easy to use, durable and equipped

with the most advanced technology to guarantee it’s effectiveness..

3.8 Business Processes

3.8.1. SUPPLIER SELECTION PROCESS - To ensure we order high quality materials, selecting

suitable suppliers will be a very structured process so we can accomplish our vision. Once

management has established the material requirements and identified potential suppliers

we will order a sample product which quality assurance will evaluate to confirm it meets our

specifications. If it does not we will reject the supplier. If it does meet quality specifications

we will attain a quote, to determine the best supplier for our business.

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3.8.2. INVENTORY PAYMENT PROCESS - Due our high quality focus the majority of our

materials are high cost so any significant or repetitive excess payments could have

potentially devastating effects on our businesses finances, so we have established a

preventative route in our payment process. If there is an error in the invoice we will contact

the supplier for compensation, either of materials or money to counteract this issue. We will

decided whether or not to change suppliers based on how they handle this compensation

process.

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3.9 Functionalities

3.9.1. SUPPLIER SELECTION PROCESS

Establish Material Requirement Receive and Evaluate Samples

3.9.2. INVENTORY PAYMENT PROCESS

Receive and Check Invoice Contact supplier with complaint

3.10 Systems

3.10.1. MATERIALS ANALYSIS SYSTEM - To begin production of our product, this DSS analyses

what the specific materials needed for production are, which is essential as it is the

foundation step for product creation. This system supports establishing what materials are

required to create a product that will achieve our vision.

3.10.2. QUALITY ANALYSIS SYSTEM - To accomplish our vision, creating a high quality product

is essential. Our quality analysis system will evaluate samples from potential suppliers to

assess if they meet our specifications. This system will guarantee we only purchase high

quality materials. This system also supports managers when they contact suppliers with

complaints. Managers decided whether or not to continue purchasing from a supplier by

analysing the quality of the outcome, notably the compensation. This system will support

both higher levelled management and the supply chain make decisions as to the quality of

both the product and supplier relationship.

3.10.3. INVENTORY MANAGEMENT SYSTEM - Our expenses are relatively high due to our high

quality focus so any discrepancy in the inventory order needs to be highlighted. If inventory

is not managed effectively, especially in the start up of the business by receiving and

checking the invoices in the supply chain it could result in huge losses and inability to create

our product and fulfill our vision.

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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)

Procuremen

t

1. Supplier Selection process

1. Establish material requirement

2. Receive and evaluate samples

Materials Analysis system

Quality Analysis system

Decision Support System

Supply Chain Management System

2. Inventory

Payment

process

1. Receive and check invoices

2. Contact suppliers with complaint

Inventory Management System

Quality Analysis system

Supply Chain Management System

Executive Information System

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CONCLUSION

Our drink bottle is an effective solution to portably monitor dehydration. To create a high

quality product we will implement a range of systems and processes with a substantial focus

on procurement so our product achieves differentiation, which will ensure we gain a

competitive advantage in our industry. The use of information systems will add value to the

business and guarantee the needs of our customers and suppliers are met to achieve our

vision.

REFERENCES

1. Heimlich, Dr. (2012). Dehydration Can Causes Disease. Retrieved from http://www.askdrheimlich.com/blog/dehydration-can-causes-disease/

2. Kim, M (2013, September 16). LG, Samsung Display feel heat from little-known Chinese LCD makers. Reuters. Retrieved from:http://www.reuters.com/article/2013/09/16/us-lcd-china-idUSBRE98F0XW20130916

3. Gibbs, R., Hall, D., Haws, S., Scott, M., & Welker, C. (2013). Capstone Senior Design Project Non-Invasive Hydration Monitor. Vanderbilt University Department of Biomedical Engineering. Retrieved from: https://my.vanderbilt.edu/dehydrationmonitor/files/2013/10/NCIIAGrant_02_06_141.pdf

4. Niemann, A. (2012). The Effect of Instrument Type on the Measure of Hydration Status. Indiana: Indiana State University, Applied Medicine and Rehabilitation. Retrieved from: http://www.indstate.edu/amr/pdfs/research-project-forms/andrwniemannthesischapters2012.pdf

5. Indiegogo. (2014). BluFit Bottle. Retrieved from: https://www.indiegogo.com/projects/blufit-bottle

6. Cantimer. (2009). Hydration Measurement and Monitoring. Retrieved from: http://www.cantimer.com/markets/hydration/

7. Good Hydration. (2014). The wonders of water: Refresh, refuel and revitalise. Retrieved from: http://relaj.com/good-hydration/2012/11/dehydration-may-hurt-students-grades/

8. Decker, M. (2014). The Effects of Hydration on Athletic Performance. California: California University of Pennsylvania, Undergraduate Research Community. Retrieved from:

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http://www.kon.org/urc/v10/athletic-training/decker.html

9. Aotea Plastics Industries Ltd. (2014). The specialist plastics moulders. Retrieved from: http://www.aoteaplas.co.nz/home/home_intro

10. Midas. (2014). Midas Components Ltd. Retrieved from: http://www.midasdisplays.com

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