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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION

2014

Name Laura MerchantNetID lmer431Group Number: 143Website Link: http://infosys110group143.blogspot.co.nz/

Tutorial Details Tutor: Day: Time:Helen Tuesday 2pm

Time Spent on Assignment: 25 Word

Count: 1580

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RECEIPT SAVERINTRODUCTIONThe use of receipts is an unnecessary form of purchase information as the age of

technological advancement that we are in today provides a simple solution to the

problem: an I.S system that sends purchase data to an app and/or computer

program. Receipts are responsible for over 3.156 million tonnes of waste sent to

landfills (RecycleNZ, 2013) and contain BPA linked to various forms of cancer

(Huffington Post, 2013). Therefore receipts are contributing to both environmental

and health problems which is a huge concern for our global society. By replacing the

use of traditional paper receipts with a simple I.S system – Receipt Saver (RS), we

are able to reduce both of these problems dramatically and also improve productivity

of businesses implementing this service. 3. BUSINESS SECTION

3.1 Vision

Contribute in the reduction of global environmental problems by identifying

innovative technological solutions.

3.2 Industry Analysis: Electronic Receipts Industry

Industry: Electronic Receipts Industry

Force: High/Low:

Justification:

Buyer power: LowCurrently no electronic receipt businesses operating in New Zealand, only known operators using e-receipts is Apple Inc (New Zealand Herald, 2011). Therefore buyer power is low as just one business where customer can opt for an e-receipt.

Supplier power: HighSupplier power is high, there are many providers that RS can source services from ie. internet providers, banks.

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Threat of new entrants:

High/Low

Threat of new entrants is likely to become high as the environmental effects of consumerism increases. More people and businesses are looking into technological solutions to the problem of paper receipts. Dahukey (2012) states that “consumers are becoming more accustomed to digital formats and… looking for ways to cut down on the size of their…wallets.” However currently no e-receipt businesses operating so threat of new entrants is low.

Threat of substitutes:

LowThreat of substitutes is low. The only known substitute is paper receipts but due to technology “that little scrap of paper is headed toward extinction,” (Weisbaum, 2014).

Rivalry among existing competitors:

LowThere are few businesses offering electronic receipts instead of paper receipts in the industry therefore low competition.

Overall attractiveness of the industry: The overall attractiveness of the electronic

receipts industry is high. The analysis of Porters Five Forces model shows that most

forces in the industry are low. Therefore a business operating in this industry is likely

to succeed with low competition of rivalry and substitute products.

3.3 Customers and Their Needs

This product appeals to a large customer base targeting both businesses and

consumers alike: they are both “eagerly taking advantage of digital technologies to

save time, money and cut down on the use of paper” (allEtronic, 2007).

Businesses would benefit from implementing this product. According to Bensonoff

(2014) businesses already using a technological alternative are “realising the many

benefits that come with eliminating as much thermal paper as possible.” This product

complies with business needs by eliminating the cost of generating paper receipts,

and increases productivity through minimising queue wait times leading to customer

satisfaction. It also benefits businesses by increasing productivity without increasing

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costs by automatically sending receipt data to your database instead of having to

input data personally which is very time consuming.

Consumers are increasingly being influenced by environmental concerns and 71% of

US consumers consider the environment when they shop, (Sheamen, 2013).

Therefore the usability and spread of RS is very important to reduce the amount of

waste receipts create. Electronic receipts also appeal to those concerned with the

health risks of receipts containing BPA, linked to various forms of cancer (Huffington

Post, 2013).

3.4 The Product and Service

RS offers an alternative to paper receipts using information systems that sends data

from the suppliers database to the customers. It works by the customer registering

their RS card, scanning the card at the checkout which recognises the customer and

sends the purchase information to their personal database. The customer can view

monthly, weekly and daily statements and payment and product information can be

reviewed like a regular receipt on the smartphone app or computer program. The

product minimises queue wait times, increasing customer satisfaction and business

productivity. This digital alternative has less harmful effects to the environment

through less paper needing to be sourced. Force Change (2013) stated “9.6 million

trees are cut down each year so people can get receipts.” Businesses and

consumers are beginning to recognise that this is unsustainable making it

increasingly important for companies to start offering e-receipts. In addition, the use

of electronic receipts eliminates the possibility of contamination from BPA. Receipt

Saver provides businesses and consumers with a simple way of accessing purchase

records without being exposed to poisons, ruining the environment or storing

receipts inconveniently.

3.5 Suppliers and Partners

A possible supplier of RS is Vodafone internet provider. For data to be sent between

databases and for customers to access their accounts an internet connection is

required. Vodafone have been supplying New Zealand customers since 1998 so are

a trusted brand. Another potential supplier is Smudge - New Zealand IOS and

Android Development to build the RS mobile app. For our product to be successful it

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needs to be easily accessible for our “Generation Y” customers that “have been

raised with...constant access to technology” (Gibson, 2013). Smudge is an ideal

business to build our app as their website states they ‘build software that people love

to use,’ which is paramount to attracting and retaining customers.

A partner of RS is BNZ enabling purchase information to be sent between databases

using a swipe card. To maintain our commitment to our vision, by partnering with

BNZ customers are able to use their pre-existing bank cards. It is beneficial for BNZ

to partner with RS as they are committed to helping the environment. Another

potential partner is Xero which would increase the amount of businesses signing up

to RS. RS sends purchase information straight to your Xero account, automatically

separating GST. This allows a seamless integration with accounting software, your

bank and your business meaning no more accumulation of receipts to be entered

and stored, saving you time and money.

3.6 Strategy: Cost Leadership

The competitive scope of RS is broad market. The product is designed for

businesses and consumers, which is a large majority of the country’s population.

Although the product will primarily be targeting the population of New Zealand, if the

product is successful we will attempt to enter the global market, which will still be

adopting broad market competitive scope.

The cost strategy of RS is low cost and it is important to follow this strategy because

implementing RS needs to be cheaper than using paper receipts or we will quickly

lose our place in the market. Following a low cost strategy also appeals to a large

target market and helps us to abide by our vision.

Our strategy is therefore Cost Leadership.

3.7 Value Chain Activity: Service after sale

The most important value chain activity for RS is service after the sale. Due to

targeting a broad market we predict a high quantity of customers with questions

regarding the setup of RS. We aim to get as many customers transfering from paper

receipts to follow our vision hence it is of utmost importance to guarantee service

after sale help for an easy transition.

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3.8 Business Processes

3.8.1. CUSTOMER SUPPORT PROCESS – This process is important for ensuring that

each customer query is handled in the same manner. Checking that the customers

problem has been solved is necessary for the satisfaction that customers get from

using RS.

3.8.2. PRODUCT UPGRADE PROCESS – This process is important for customers

wishing to upgrade from the RS mobile app. Recognising different customer needs

(business or consumer) is crucial for this process because there are two different

programs.

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3.9 Functionalities

3.9.1. CUSTOMER SUPPORT PROCESS

· receive customer query

· check query is solved

3.9.2. PRODUCT UPGRADE PROCESS

· identify upgrade required

· receive payment

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3.10 Systems

3.10.1. CUSTOMER SUPPORT PROCESSING SYSTEM – This system is important for

receiving queries, complaints and feedback. By replacing a system primarily

undertaken through email or letters, we can reduce our impact on the environment

and improve business processes. It provides customer details allowing a quick

personalised response. Implementing this system will aid us “in keeping your most

valuable customers and…bring in others,” (Read, 2009). Therefore this is an

extremely important system for attracting and retaining customers to RS.

3.10.2. ORDER PROCESSING SYSTEM – This is necessary for the Product Upgrade

Process by providing a system for employee use to ensure the correct product is

sent to the customer. It shows when each order is complete and the customers order

history. The system automatically notifies Xero when a customer has upgraded his

RS app to the Xero-RS package and creates an automated process otherwise

undertaken over the phone to improve productivity for the business.

3.10.3. PAYMENT PROCESSING SYSTEM – This system notifies the Accounting

Department when a customer payment is received, automatically sending the receipt

to their RS database. This system streamlines business processes of receiving

payments by automatically updating the Order Processing System. This increased

visibility between different departments decreases production time and a rise in

customer satisfaction. This system increases business productivity while reducing

our impact on the environment.

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3.11. SUMMARY TABLE: VALUE CHAIN TO SYSTEMSValue Chain

Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Service after

sale

1. Customer Support Process

1. Receive customer query

2. Check query is solved

Sales Customer Relationship Management System

Customer Support Processing System

Customer Relationship Management

1. Product Upgrade Process

1. Identify upgrade required

2. Receive payment

Order Processing System

Payment Processing System

Transaction Processing System

CONCLUSION

A simple I.S system can eliminate the use of paper receipts, dramatically reducing

our impact on the environment. Receipts are not only an unnecessary form of

purchase information, but they contribute hugely to our landfill waste, and due to

BPA found in them have harmful effects on our health. Through the implementation

of Receipt Saver we are able to reduce these affects dramatically and help in

increasing business productivity at the same time.

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REFERENCES

1. RecycleNZ. (2013). Waste Starts with Us and Ends with Us. Retrieved from

http://recycle.co.nz/problemsize.php

2. The End of the Roll for Shopping Receipts? (2011, December 6). The New

Zealand Herald

3. Dahukey, S. (2012). Receipts, Another Step into the Digital Age. Retrieved

from http://gapintelligence.com/blog/2012/11/09/receipts-%E2%80%93-

another-step-into-the-digital-age/

4. Weisbaum, H. (2014). Paper or Email? Pros, cons of digital receipts. 

Retrieved from http://www.today.com/money/paper-or-email-pros-cons-digital-

receipts-2D11968037

5.Hines, W. (2013). Going Paperless: The Hidden Cost of a Receipt. Retrieved

from http://www.huffingtonpost.com/will-hines/going-paperless-the-

hidde_b_3008587.html

6.allEtronic. (2007). Digital Paperless Receipts. Retrieved from

http://smartb2bmarcom.com/wp-content/uploads/WhitePaper_DigitalReceipts

_KHeaden

7.Bensonoff, K. (2014). Are E-receipts the Best Solution for Your Retail

Business? Retrieved from http://www.computersupport.com/blog/e-receipts-

solution-retail-business/

8.Sheaman, S. (2013, April 2). Consumers getting more environmentally

conscious. PR Week.

9.Force Change. (2013). Stop Wasting Paper on Receipts. Retrieved from

http://forcechange.com/51699/stop-wasting-paper-on-receipts/

10.Gibson, R. (2013). Definition of Generation Y. Retrieved from

http://www.generationy.com/definition/

11.Read, B. (2009). Top Tips to Build and Keep Customer Loyalty with CRM.

Customer Interaction Solutions, 27(9).

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