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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Mareli de Lange
NetID mdel885
Group Number: 43
Website Link: http://infosys1102014fcgroup043.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Claris Chung Monday 01pm
Time Spent on
Assignment:
36 Hours Word Count: 1642

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BUSINESS PROPOSAL
INTRODUCTION
Aviation began with Sir George Cayleys presentation of the first fixed-wing design of an
aircraft in the eighteenth century. Today, aviation is synonymous with technological
advancement. Unfortunately, aviation is not flawless as aircrafts are subject to mechanical
defects. More specifically, the design of the aircrafts along with their technologies, in many
instances, proven to be insufficient. These shortcomings can, however, be addressed by
implementing a fully functioning GPS system in co- ordinance with a big data system.
3. BUSINESS SECTION
3.1 Vision
Our vision is to be a forerunner of innovation, a global icon in every market we serve,
providing products of superior quality and unparalleled reliability, while nurturing our
customers with the highest level of service.
3.2 Industry Anal ysis: Airline GPS Navigation Industry
Industry: Airline GPS Navigation Industry. This industry directly serves the global Airline
Industry with GPS products and services, regardless of the type of aircraft.
Force: High/Low: Justification:
Buyer power: Low Buyers have few options: the airline supply
business is mainly dominated by Boeing and
Airbus (Singh, 2011).
Supplier power: Low Many suppliers to choose from: There are over 100
companies that offer big data solutions. In fact,
CRN have compiled the CRN Big Data 100
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.

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(Whiting, 2013)

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Threat of new
entrants:
Low Available evidence suggests that the U.S Air Force,
who is fully committed to continuing its operation
and use of GPS in the future
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is, solely, working on
entering the market.
Threat of substitutes: Low Buyers have a few alternatives from GPS: currently
the world's air traffic control network is still almost
entirely radar-based (BBC Asia, 2014).
Rivalry among
competitors:
High Powerful competition: the U.S. Federal Aviation
Administration awarded ITT the contract to build a
GPS based system for aircrafts
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. This proves to be
rivalry, as the competition for market share in this
industry will be competitive.
Overall attractiveness of the industry: Overall, it is an attractive industry with great
opportunities as described by Porters industry analysis of the Five Forces. Most of Porters
forces are low, barring rivalry among competitors, for the Airline GPS Navigation Industry.
3.3 Customers and Their Needs
This industry exclusively serves the Airline Industry with a large focus on air carriers which
operate over regions with little or no radar coverage. Currently, the airline industry is still
largely reliant on radar-based navigation
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. Nonetheless, there has been an increase in the
need to shift a GPS system that will vastly upgrade the [industrys] air traffic control
systems (Boulden, 2010) as radar technologies prove to be insufficient. The
disappearance of Air France Flight 477 and its 228 passengers over the Atlantic Ocean in
2009 led critics of radar-based air traffic control to call for a move to GPS-based networks
that can precisely track all planes
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.
Our customers need a system that will not only relay accurate positioning in real time, but
also a big data system to support the GPS system. Our customers need a product that will

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(National Coordination Office for Space-Based Positioning, Navigation, and Timing, 2014)
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(Boulden, 2010)
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(BBC Asia, 2014)
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(Boulden, 2010)

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add value and provide a return of investment; they need a product that will provide
information accurately, reliably with real-time precision.
3.4 The Product and Service
One component of the product is a fully functional GPS system for aircrafts. Another
component is the big data system that will capture and distribute flight information to the
right people, at the right time.
The employment of this product provides numerous benefits, including the reduction of fuel
consumption, reduced carbon-dioxide emissions and better-controlled ascents and
descents. The system will allow aircrafts to fly closer together, and cut down on delays and
unnecessary detours.
Consequently, our product will satisfy our customers needs of having accurate information
that is reliable, timely and precise. Subsequently, value will be added on an industry-wide
scale with the complete two-component implementation of this product. The product
supports flight safety and customer reassurance as inconsistencies and abnormalities are
detected by air traffic control in real-time.
3.5 Suppliers and Partners
Partnerships are key in order to make this venture possible and enable us to focus on our
core competency: innovation. One of our partnerships will include outsourcing the big data
component of our product to IBM as IBM is uniquely positioned to help clients design,
develop and execute a big data strategy that will enhance and complement existing
systems and processes
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. Also, we will partner-up with Garmin to define the GPS
component. Garmin is renowned for its user-friendly system interface and high-quality
system that capture the elegance and simplicity of a modern GPS.
In addition to partnerships, we also need to source suppliers including NAVTEQ, the
world's leading supplier of map-related products and services

(Decker, 2014). This is
imperative as our product is based on global positioning. A second supplier will be Walker
Logistics, a New Zealand-owned international and domestic freight-forwarding and courier

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(IBM, 2014)

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company
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. Walker Logistics is a key supplier of logistics: goods need to be in full at the
right place, at the right time.
3.6 Strategy: Focused High Cost
The Airline GPS Navigation Industry aims at serving the Airline Industry exclusively, thus,
the industrys competitive scope is focused. What is more is that the product follows a high
cost strategy as it is a highly-specialized, industry-specific product. Moreover, the industry
forces identified support the focused high cost strategy of the product. We have a large
buyer base, thereby, reducing buyers power to negotiate prices as they are subject to few
suppliers as well as few alternatives. Also, this specialized product protects us against
substitutes; GPS is a largely unexplored technology in aviation which will be a colossal leap
forward for the Airline Industry.
The overall strategy is, therefore, Focused High Cost.
3.7 Value Chain Acti vity: Technology Development
The most important value chain activity for this business is Technology Development.
Technology development is a support value chain activity which enables us to provide our
customers with unique, technological products. We will not outsource this value chain
activity as it forms part of our core competency. Technology development allows us to work
towards our vision to be a forerunner of innovation, a global icon in every market and a
provider of products with superior quality and unparalleled reliability: it is key that we keep
our vision firmly in place, working towards it daily. This offers us growth opportunities and
the ability to remain focused. Moreover, it allows us to develop and justify our focused high
cost strategy our product is highly specialized and technological. In conclusion, our vision
as well as our strategy support the value chain activity of technology development.




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(Walker Logistics, 2013)

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3.8 Business Processes
3. 8.1. ORDER FULFILLMENT PROCESS This is a key process with regards to our SCM
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,
and works hand-in-hand with the inventory management system. The customer sets the
process in motion with an order. Once the order is received, the customers credit is
checked; we want to minimize our risk due to insolvent customers and so forth. Once the
credit is approved, the order process is able to continue. An invoice is then generated by
the billing department and part payment is requested before the product is seamlessly
installed. Final payment is now due.
This process involves more than just filling orders in full, on time, in specification (IFOTUS).
It is about designing a network and a process that permits a firm to meet customer
requests while minimizing the total delivered cost
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.
(Please refer to page 7 for the business process model)











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Supply Chain Management (SCM)
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(Croxton, 2014)

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ORDER FULFILLMENT BUSINESS PROCESS MODEL



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3. 8.2. CUSTOMER SERVICE FOR MAINTENANCE PROCESS - A Customer Service Process
is a fundamental process in CRM
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. In this instance, the customer service is specific to
maintenance. Once the customer makes contact with the Customer Service team, the
customer has to be identified for security purposes. The team must find out whether the
customer is interested in having a routine maintenance or not. Given that the relevant
services and resources are available using inventory and workforce management systems,
the maintenance is scheduled, by which time the customer is notified.
The customer service team is dedicated to efficiency and speedy reactions to meet our
customers requirements, which, in turn, gains their trust and build a good reputation for our
company.
(Please refer to page 9 for the business process model)













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Customer Relationship Management (CRM)

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CUSTOMER SERVICE FOR MAINTENANCE BUSINESS PROCESS MODEL


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3.9 Functional iti es
3.9.1. ORDER FULFLILMENT PROCESS
Credit Check Functionality
Resource Availability Functionality
3.9.2. CUSTOMER SERVICE FOR MAINTENANCE PROCESS
Confirmation of Customer Identification Functionality
Maintenance History Functionality
3.10 Systems

3. 10.1. INVENTORY MANAGEMENT SYSTEM This system ensure customers always have
enough of what they want. Simultaneously, it manages our need to maintain as little stock
as possible; we do not want to mismanage our inventory. This system must synchronize
sales and available inventory. It must also have the ability to communicate with suppliers in
near real-time and utilize a resource availability functionality that tells us when we need to
restock. This contributes to our vision of being forerunners of innovation; an icon in the
market we serve.
3. 10.2. WORKFORCE MANAGEMENT SYSTEM - This system simplifies the task of
scheduling and forecasting our workforce; the system is designed to work as a subsystem
of EPR
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, and provides accurate forecasts. Moreover, it is used with its resource availability
functionality, helping to optimize our workforce schedule. At the same time, it supports our
vision of producing and providing a product of superior quality, and unparalleled customer
service.
3. 10.3. CUSTOMER PROFILING SYSTEM This system is key under CRM; it is designed to
nurture our customers with the highest level of service whilst allowing us to gain a complete
and accurate customer profile. Once the customer sets the customer service process in
motion, this system needs to run a security check on the customers identification using a
Confirmation of Customer Identification Functionality. It is crucial that this functionality is in
place as our customers information is sensitive and needs to be protected.

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Enterprise Resource Planning (ERP)

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3.11. Summary Table: Value Chai n to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Technology
Development
1. Order Fulfillment
Process
1. Credit Check Functionality


2. Resource Availability
Functionality
1. Inventory
Management System

2. Workforce
Management System
1. Supply Chain
Management

2. Enterprise
Resource Planning
2. Customer Service
for Maintenance
Process
1. Confirmation of Customer
Identification Functionality

2. Maintenance History
Functionality.
1. Customer Profiling
System


1. Customer
Relationship
Management



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CONCLUSION
Despite having large capital outlay initially, the Airline GPS Navigation Industry is an
attractive industry overall. With our focused high cost strategy, partners, and suppliers in
place, we are able concentrate on technology development. More importantly, we are able
to emphasis or vision to be a forerunner of innovation, a global icon in every market we
serve, providing products of superior quality and unparalleled reliability, while nurturing our
customers with the highest level of service.
REFERENCES
1. Baltzan, P. (2013). Business Driven Information Systems / Paige Baltzan, Kathy Lynch and
Peter Blakey (2nd ed. ed.). North Ryde, New South Wales, Australia: McGraw-Hill.
2. BBC Asia. (2014, March 17). How do you track a plane? Retrieved May 6, 2014, from BBC
News Asia: http://www.bbc.com/news/world-asia-pacific-26544554
3. Boulden, J. (2010, July 24). GPS tracking to replace 70-year-old radar technology in planes.
Retrieved May 7, 2014, from CNN International:
http://edition.cnn.com/2010/TECH/innovation/07/23/planes.gps.upgrade/
4. Croxton, K. L. (2014, May 22). The Order Fulfillment Process. Retrieved from Emerald
Insight: http://www.emeraldinsight.com/journals.htm?articleid=1527525
5. Decker, F. (2014, May 14). Who Licenses Maps to TomTom & Garmin? Retrieved from
Opposing Views: http://science.opposingviews.com/licenses-maps-tomtom-garmin-
18369.html
6. Garmin. (2014, May 5). About Us. Retrieved May 5, 2014, from Garmin:
www8.garmin.com/aboutGarmin/
7. IBM. (2014, May 15). Big Data. Retrieved from IBM Software: http://www-
01.ibm.com/software/data/bigdata/platform/product.html
8. INC. (2014, May 15). What Big Data Does . Retrieved from COMCAST Business:
http://www.inc.com/comcast/what-big-data-does.html
9. Investopedia. (2014, May 5). The Industry Handbook: The Airline Industry. Retrieved May 5,
2014, from Investopedia: http://www.investopedia.com/features/industryhandbook/airline.asp
10. Massachusetts Institute of Technology. (2008, November 16). Airline Industry Overview.
Retrieved May 5, 2014, from Global Airline Industry Programme:
http://web.mit.edu/airlines/analysis/analysis_airline_industry.html
11. National Coordination Office for Space-Based Positioning, Navigation, and Timing. (2014,
February 11). Official U.S. Government information about the Global Positioning System
(GPS) and Related Topics. Retrieved May 6, 2014, from PS.GOV:
http://www.gps.gov/support/faq/

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12. Singh, P. (2011, June 19). Bargaining Power of Suppliers and Airline Industry. Retrieved
May 6, 2014, from Scribd: http://www.scribd.com/doc/58246013/Bargaining-Power-of-
Suppliers-and-Airline-Industry
13. Walker Logistics. (2013, January 10). Walker Logistcs Home Page. Retrieved May 18, 2014,
from Walker Logistics: javascript:alert(document.lastModified)
14. Whiting, R. (2013, April 11). Big Data 100: Data Management. Retrieved May 6, 2014, from
CRN: News, Analysis, and Perspective for VARS and Technology Integrators:
http://www.crn.com/slide-shows/applications-os/240152660/big-data-100-data-
management.htm
15. Wright Brothers Aeroplane Co. (2014, April 26). A History of the Airplane. Retrieved May 5,
2014, from Wright Brothers Aeroplane Co.: http://www.wright-
brothers.org/History_Wing/History_of_the_Airplane/History_of_the_Airplane_Intro/History_of
_the_Airplane_Intro.htm