INFOSYS D2

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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION

2014

Name Emma Bowie

NetID ebow403Group Number: 272Website Link: http://infosys110group272.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:

Olivia Thursday 9.00am

Time Spent on Assign-ment: 15 hours Word Count: 1771

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EMISSIONS REWARDS SCHEMEINTRODUCTION

High emissions, caused by the burning of fossil fuels and the wide-spread acceptance of environmentally unfriendly practices, are causing global warming. Through the implementation of ERS, an emissions reward scheme that will operate like a ‘fly-buys’ for the environment, businesses and consumers will be empowered to accept responsibility for this prob-lem. Businesses which are taking steps to produce environmentally sus-tainable products can register for the system, which provides consumers with rewards points based on the products they purchase that can then be exchanged for discounts at participating businesses. Through rewarding businesses and consumers alike, ERS has the potential to transform New Zealand into a world leader for the effective facilitation of a movement to-wards greater environmental awareness.

3. BUSINESS SECTION

3.1 Vision

To empower society to make environmental sustainability their top prior-ity, and in doing so preserve the earth’s environment for future genera-tions.

3.2 Industry Analysis:Nation-wide loyalty programme industry

Industry: the nation-wide loyalty programme industry in New Zealand. This industry includes companies that collaborate with a variety of New Zealand based retailers to provide customers rewards based on their pur-chase choices.

Force: High/Low: Justification:

Buyer power: Low Only Flybuys provides a truly comprehensive re-

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wards scheme across multiple retailers in New

Zealand. Other companies like the Airport Dollars

loyalty programme (a collaboration between Air

New Zealand and Kiwibank) are competitors

of Flybuy’s, but as they only reward customers

with flight related bonuses they are not a perfect

alternative (Air NZ and Kiwibank launch Airpoints

credit cards, 2013). As buyers have little choice in

rewards schemes other than Flybuys, buyer power

is low.

Supplier power: Low As loyalty programmes are not actually supplying

goods themselves, the main suppliers in this in-

dustry would be technology support services used

to help with the implementation and function of

electronic systems processing and tracking pur-

chases. In the 2013 economic development minis-

terial report, it was stated that the ICT sector is in

a period of fast growth, meaning that supplier

power is currently low (Ministry of Business Inno-

vation and Employment, 2013).

Threat of new entrants: High As the creation of a loyalty programme in New

Zealand does not require high investments in in-

frastructure, nor a great amount of specialist

knowledge and resources, there are not many en-

try barriers to this industry (Loyalty Card to Take

on Heavy Weight Flybuys, 2009). As there are few

entry barriers, threat of new entrants is high.

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Threat of substitutes: High There are many alternatives available to con-

sumers. Instead of using a loyalty programme to

save money, it is possible for them to do their own

online research and select products based on re-

tail sales (Do customer loyalty programmes really

work?, 2005). There are also online sites like One

Day Sale Finder which help consumers find the

best deals independently. As greater savings are

sometimes possible through these methods, the

threat of substitutes is high.

Rivalry among existing

competitors:

Low Rivalry is very low because Flybuys almost has a

monopoly in the industry (Loyalty New Zealand,

2013). Flybuys only has a small number of com-

petitors, and most of these companies do not

provide as comprehensive a scheme, targeting a

much narrower portion of the market. Therefore

the little competition that does exist is not very di-

rect/intense.

Overall attractiveness of the industry: As buyer power, supplier power, and ri-valry among existing competitors are low, this industry shows potential. If a company is to be successful in entering this industry they will have to try and overcome the high threat of new entrants and substitute products. Through ensuring their service provides better rewards than indepen-dently driven customer money saving techniques could, the threat of sub-stitute products/services can be minimised. Through the creation of strong partnerships with a wide variety of New Zealand businesses, it is also pos-sible to manage the threat of new entrants into this industry. The riskier elements of this industry can be managed.

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3.3 Customers and Their Needs

ERS is is aiming to fundamentally change the way New Zealand society as a whole views and supports sustainable practices in business. The tar-get group of customers is therefore all individual consumers in New Zea-land who are interested in decreasing their emissions for the benefit of preserving our future environment. They need to have easy access to in-formation about the sustainable products/services available to them through ERS, along with the corresponding rewards they are entitled to for their purchases. There also needs to be an easy way for people to track their purchase habits, the amount of rewards they have accumulated and their own carbon footprint in order to determine how they are doing in comparison with other new zealander’s participating in the scheme.

3.4 The Product and Service

The main interface between ERS and it’s customers will be an app. The app will initially provide a place where people can sign up through a sim-ple registration process, which matches the individual to their EFTPOS card number. Through their personal account, customers will be able to see which businesses are offering particular products and services, track their purchase history and the monetary value of rewards they have earned, and also view the direct impact of their product choice on their household/family carbon footprint. This easy access to information, with everything available in one place and accessible at all times, will make it possible for customers to get out of ERS exactly what they require from it: daily savings and the information and support necessary to make positive sustainable purchase choices.

3.5 Suppliers and Partners

The main partners are the businesses offering sustainable products/ser-vices that sign up to be part of the scheme. The businesses work with ERS to gain a competitive advantage through attracting customers based on their sustainable credentials, while ERS relies on the businesses to provide the sustainable products and services that the customers demand.

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ERS must also work in partnership with banks operating throughout New Zealand. In order to operate a system that uses customer EFTPOS cards to track customer’s purchases to give them rewards, information needs to be shared between the customer’s bank systems and ERS’s system.

As ERS is an app based organisation, with most of the services it provides to customers being electronic, technology support service companies are one of their major suppliers. ERS must invest in support to set up and maintain these systems.

As effective marketing is so important for ERS’s business success they may outsource some of their advertising needs to a marketing specialist. The marketing specialist company would supply ERS with plans for mar-keting campaigns; and potentially create flyers, posters and billboards for the company as well.

3.6 Strategy: Broad market differentiation strategy

ERS is aiming to change society’s purchasing/manufacturing habits to de-crease emissions. To achieve this organisational vision it is necessary for their competitive scope to be very wide. Otherwise, if they only attracted customers from a small subgroup of New Zealanders, it would not be pos-sible to substantially lower New Zealand’s carbon footprint.

As ERS is working with New Zealand businesses to deliver sustainable products and services, the quality of these goods/services will be higher than average. Higher quality goods/services are more expensive to pro-duce, so although ERS is offering discounts to incentivise customers to still purchase these products/services, they are still operating at a higher cost level. ERS would have to enter the market with a high cost strategy.

The overall strategy is therefore: Broad market differentiation strat-egy.

3.7 Value Chain Activity: Market and sell the product/service

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The most important value chain activity for this business is: Market and sell the product/service.

ERS’s vision is to change the environmental values of New Zealander’s and successfully convince them to buy sustainably produced products. For ERS to achieve this it will rely heavily on the quality of it’s marketing. Not only is ERS trying to attract customers to the scheme, but also as many businesses as possible to supply the sustainable goods/products. These businesses will only participate in the scheme if they are assured that ERS will be able to create a brand that is strong and reliable enough to give them a competitive advantage in the marketplace.

3.8 Business Processes

3.8.2. PURCHASE TRACKING PROCESS - This is one of ERS’s main sale processes for the goods/services. The business relies on the information regarding customer purchases being transferred from the participating businesses accounting systems, and then being processed by ERS to assign the ap-propriate reward to the customer.

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Pur- chase Tracking Process:

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3.8.2. MARKETING RESEARCH PROCESS - For ERS to succeed it needs to be mar-keting very effectively to both customers and their potential business

partners. The re-search process is vital

for ERS to create market-ing campaigns that

strengthen the value of their brand.

Marketing Re-search Process:

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3.9 Functionalities

3.9.1. PURCHASE TRACKING PROCESS

• EFTPOS number tracking abilities

• Information syncing with ERS app 3.9.2. MARKETING RESEARCH PROCESS

• Data storaging

• Data mining ability

3.10 Systems

3.10.1. PURCHASE TRACKING MANAGEMENT SYSTEM - This system ensures infor-mation from partnering businesses can be accessed by ERS. The system is able to recognise participating customer’s registered EFTPOS cards allow-ing the tracking of their purchases throughout various stores, and there-fore allocate the correct rewards. The system syncs automatically with the ERS app, so customers are kept constantly updated about their purchase habits, accumulated rewards and emissions ratings.

3.10.2. MARKETING RESEARCH PROCESSING SYSTEM - This system supports all of the tasks required for ERS to carry out effective, targeted marketing cam-paigns. The systems data storaging ability ensures that the collected cus-tomer and industry information is accessible in one place for all employ-ees. The data mining abilities enable analysts to draw strong conclusions on the gathered information, and better refine ERS’s marketing direction.

3.10.3. REGISTRATION MANAGEMENT SYSTEM - In order for the purchase tracking management system to work, customer EFTPOS card details need to be properly registered. The system ensures that each card is allocated a sin-gle number that remains the same across all businesses participating in the ERS scheme. The card is matched with the customers account so that all their purchases are visible to them on the ERS app.

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3.11. Summary Table: Value Chain to Systems

Value Chain

Activity

Processes Functionalities Specific Informa-tion System(s)

Broad Informa-tion System(s)

Market

and

sell the

prod-

uct/

service

1. Pur-chase tracking process

1. EFTPOS number tracking capabili-ties

2. Information sync-ing with ERS app

Purchase tracking management sys-tem

Transaction pro-cessing system

Collaboration system

2. Mar-

keting

re-

search

process

1. Data mining abil-ity

2. Data storaging

Marketing re-search processing system

Registration management sys-tem

Executive in-formation sys-tem

Decision sup-port system

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CONCLUSION

ERS, through partnerships with New Zealand businesses, is aiming to cre-ate a framework for environmental change. Through the use of informa-tion systems the transference of information between ERS, it’s business partners and it’s customers is made possible. This information sharing in turn allows ERS to track New Zealander’s purchasing habits and emissions ratings, and report these findings directly back to customers using it’s app. Through the easy access to information, and the rewards provided through the scheme, New Zealander’s will be empowered to take respon-sibility for their family/household emissions, and help move New Zealand towards a cleaner, greener future.

REFERENCES

1. Air NZ and Kiwibank launch Airpoints credit cards (2013). Retrieved from: http://www.scoop.co.nz/stories/BU1309/S00684/air-nz-and-kiwibank-launch-airpoints-credit-cards.htm

2. Ministry of Business Innovation and Employment, 2013. Information and Communi-cations Technology. Retrieved from: http://www.mbie.govt.nz/pdf-library/what-we-do/business-growth-agenda/sectors-reports-series/sector-report-information-communication-technology.pdf

3. Grahame Dowling, Mark Uncles. Do customer loyalty programmes really work? (2013). Retrieved from: http://sloanreview.mit.edu/article/do-customer-loy-alty-programs-really-work/

4. Loyalty New Zealand (2014). About us. Retrieved from: https://www.loyalty.co.nz

5. Author. Simon Hendery (2009). Loyalty Card to Take on Heavy Weight Flybuys. Retrieved from: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10597753

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