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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Jia Hua Timothy QiuNetID Jqiu515Group Number: 408Website Link: http://infosys1102014s1group408.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Yvonne Hong Wednesday 11am

Time Spent on Assignment:

8 hours Word Count: 1613

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THE WELFARE CARDINTRODUCTION

With technology rapidly devloping, many of the world’s problems can be solved using

technology. The problem identified was the amount of welfare users who were abusing

their income, ultimately having detrimental effects to the New Zealand society. The solution

was creating a welfare card which could control how welfare users spent income by

restricting acess to demerit goods.

3. BUSINESS SECTION

3.1 Vision

To provide welfare users with an effective tool which restricts the purchases of demerit

goods to help them lead a better life, ultimately shaping New Zealand to become a well

rounded country.

3.2 Industry Analysis: Social Welfare Support Industry

Industry: Social Welfare Support Industry. This industry provides services to people who are

in need of finanicial support.

Force: High/Low: Justification:

Buyer power: Low There are many welfare programmes, buyers

must apply and qualify for these specific

welfare programmes thus buyers have little

power. There are 14 different social welfare

support programmes provided (NZ

Government, 2014)

Supplier power: High Supplier power is high as the money

distributed from welfare support

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programme’s are collected from tax-payer’s

money therefore only a set number of people

can be on a welfare support programme

depending on the budget each year. $21.9bn

is proejcted to be spent on social welfare in

2014/2015 (Craig Simpson, 2014)

Threat of new entrants: Low Threat of new entrants is low as there aren’t

many new social welfare programmes

implemented in NZ. This year there were

15000 fewer people on benefits now than

there were 12 months ago (NZ Treasury,

2014). With less people needing a social

welfare programme, there will be a smaller

demand for new Social Welfare Support firms.

Threat of substitutes: Low There are no substitutes to social welfare

programmes therefore threat of substitues is

low.

Rivalry among existing

competitors:

Low There is low rivalry in this industry as all the

existing social welfare support firms work with

the government in order to achieve a goal, not

necessarily make profits.

Overall attractiveness of the industry: The social welfare support industry is very attractive

as all the forces favor for an attractive industry. Even though the industry is attractive,

profits will not be sustainable. As less people require a welfare programme over time

(implementing the welfare card will decrease the amount of people on welfare income), the

demand for welfare cards will fall therefore profits could be redundant very quickly.

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3.3 Customers and Their Needs

Our customers are welfare users who abuse their welfare income by purchasing demerit

goods. Our product will provide a way to only spend welfare income on merit goods. This

eliminates purchases of demerit goods thus allowing investment of money into positive

aspects of life. In 2013 there were a total of 134,225 people on Jobseeker Support and of

those, 57,544 had been on it for more than a year (Ministry of Social Development, 2013).

By introducing the welfare card, we hope that both these numbers will decrease.

3.4 The Product and Service

The product is a card containing a microchip which will have functionalities including; the

ability to reject purchases of demerit goods, the ability to purchase only merit goods and

the ability to reject cash deposits. With demerit goods removed, it allows welfare users to

focus on beneficial aspects of their life.

3.5 Suppliers and Partners

The first supplier would be a Microchip specialist. They would supply microchips which are

small and capable of performing the above functionalities of the welfare card. Organisations

such as Apple and Samsung could supply small yet effective microchips. The second supplier

would be an IT specialist. They would create the database of goods which can/can’t be

purchased. This data could be stored on a cloud storage system where it can be updated at

any time.

The first partner would be the government. More specifically the Ministry of Social

Development, this would allow us to incorporate the welfare card to all social welfare

programmes thus benefiting more than one social welfare programme. eg. Student

allowances- money can only be spent on books etc. The second partner would be banks. By

partnering with banks, the welfare card’s technology could be implemented into

credit/EFTPOS cards allowing for greater flexibility such as online purchasing and the added

convinience of carrying around one card.

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3.6 Strategy: Focused Low Cost

Our product is targeted towards a niche market. Only users of welfare income will use the

welfare card. As of March 2014 there were 295,320 people receiving main benefits.

(Ministry of Social Development, 2014) This is roughly 7-8% of NZ’s population.

Our product aims to be cheap to produce as welfare users receive the money and don’t pay

for the card therefore it must be cheap enough for the government/welfare support firms to

purchase.

The overall strategy is therefore Focused Low Cost.

3.7 Value Chain Activity: Making the product or service

The most important value chain activity for this business is Making the product or service.

It is vital that we provide a working product to our customers. We ensure that there are no

errors in making the welfare card. Small errors lead to negative consequences such as

allowing purchases of demerit goods. The good must be made while minimizing errors and

costs so our product is functional with our vision and strategy.

3.8 Business Processes

3.8.1. MANUFCATURING PROCESS – The process is triggered when customer orders are

recieved, our manufcaturing management system records this order and information is sent

to the warehouse and manufacturer. The raw materials are manufactured into the welfare

card. From here quality control testing must be undergone to ensure that our product

satisfies the functionalities. If the welfare card passes our quality control tests, they are

packaged and delivered. If not, the good is taken for further quality control to assess for

problems, it is then attempted to be fixed. This business process is important as we cannot

deliver faulty welfare cards where demerit goods can be purchased.

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3.8.2. RAW MATERIAL MANAGEMENT PRCOESS – The process is triggered when we receive

our customer orders, the order is sent to the manufacturer where stock levels are checked,

if enough raw materials are in stock they are shipped off to be manufactured. If not, we

notify our customers of back order giving them an estimated time for the order. We then

record the number of stock needed in our raw material ordering system where it checks for

funds, places the order and sends payments when necessary.

This process ensures that we are producing welfare cards with microchips that allow for the

functionalities. Without this vital process, we would be providing welfare users with faulty

cards thus allowing for demerit purchases. The essence of this process is what makes our

welfare card so valuable, the technology in the microchips is what will add value therefore

making the product with the correct raw materials is important.

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3.9 Functionalities

3.9.1. MANFUCATURING PROCESS

1. ENSURES THE PRODUCT FUNCTIONS PROPERLY

2. DETECTS ANY FAULTY PRODUCTS MANUFCATURED

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3.9.2. RAW MATERIAL ORDERING PROCESS

1. ENSURES STOCK LEVELS ARE SUFFICIENT FOR PRODUCTION

2. RECORDS ALL RAW MATERIALS SENT IN AND OUT OF WAREHOUSE

3.10 Systems

3.10.1. MANFUCATURING MANAGEMENT SYSTEM – Both processes are supported by this

system as it incorporates the functionalities of ensuring there are enough raw materials in

stock to start production. Information is sent to manufacturers and warehouses, it allows

both departments to collaborate so they can start production. This links to our business’

vision as we provide a simple yet effective tool for welfare users to lead a better life through

smart spending.

3.10.2. RAW MATERIAL ORDERING SYSTEM – This system allows for the automation of

transactions in the raw material ordering process. The system automatically creates, reads,

updates and deletes data so we know how many raw materials we receive and send. This

system incorporates the functionalities by showing us the amount of stock we currently

have and the amount that will be sent out when other departments require. This system

supports our vision as we ensure that the technology in our welfare card is viable for

purchases.

3.10.3. QUALITY CONTROL TESTING SYSTEM – This system tests if our final products function

as intended. Our vision is to provide an effective tool to restrict the purchase of demerit

goods, simple tests are run through this system to ensure that customers are receiving a

fully functional product. The quality control testing system incorporates the detection of

faulty products ensuring that customer’s can’t purchase demerit goods.

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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)

Making the

product or

service

1. Manufacturing Process

1. Ensures the product functions properly

2. Detects any faulty products manufactured

Manufacturing Management System

Quality Control Testing System

Collaboration System

Decision Support System

2. Raw Material

Management

Process

1. Ensures there is a sufficient amount of stock for production

2. Records all raw materials sent in and out of warehouse

Raw Material Ordering System

Raw Material Ordering System

Decision Support System

Decision Support System

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CONCLUSION

The rapid growth of technology allows for the creation of the welfare card. The technology

involved within the card is sophisticated yet viable. The utilization of advanced information

systems allows the welfare card to be such a sucessful concept. Through the use of

technology, we are able to make the tedious business processes automated. The welfare

card will ultimately lead welfare users into a greater path of life and shape New Zealand to

become a well rounded society.

REFERENCES

1. NZ Government. (2014). Social Welfare and Support. Retrieved from http://newzealand.govt.nz/browse/social-welfare-support/

2. Craig Simpson. (2014). Budget 2014 – Social Welfare. Retrieved from http://www.interest.co.nz/news/69962/budget-2014-social-welfare

3. NZ Treasury. (2014). Executive Summary: Managing a Growing Economy. Retrieved from http://www.treasury.govt.nz/budget/2014/execsumm/04.htm

4. Ministry of Social Development. (2013). Jobseeker Support – December 2013 quarter. Retrieved from https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/statistics/benefit/post-sep-2013/jobseeker-support/december-2013-quarter.html

5. Ministry of Social Development. (2014). All main benefits - March 2014 quarter. Retrieved from https://www.msd.govt.nz/about-msd-and-our-work/publications-resources/statistics/benefit/post-sep-2013/all-main-benefits/march-2014-quarter.html

6. Statistics New Zealand. (2013). Key facts. Retrieved from http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec13qtr.aspx

7. The Treasury. (2013). Part 1.1 – Overview of the Vote. Retrieved from http://www.treasury.govt.nz/budget/2013/ise/v10/ise13-v10-pia-socdev.pdf

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