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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION 2014
Name Connor Beu
NetID 5660577
Group Number: 504
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details Tutor: Day: Time:
Yvonne Thursday 11am
Time Spent on Assignment:
29 hours Word Count: 1595
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SMART BINS
INTRODUCTION
New Zealand has one of the highest food wastage levels per capita, with over 730,000
tons of consumable, energy rich food in landfills. This large statistic is largely due to
businesses that supply fresh foods and have high food wastage due to lack of sales or
customer involvement. Smart Bins is an automated food waste management system
which targets causes of food wastage by businesses such as; high costs, the hassle of
waste management and a lack of specific food waste management systems. Smart
Bins use machine to machine communication and automate the process of collection.
The resources are then processed and the materials are extrapolated into biodiesel
and other substitutions e.g. animal feed.
3. BUSINESS SECTION
3.1 Vision
To provide human and environemental synergy through the use of food wastage
management and improved sustainabilty education.
3.2 Industry Analysis: Food waste removal
Industry: Food waste removal. The distribution of food wastage controls that are used to be
repurposed in the way of productive use.
Force: High/Low: Justification:
Buyer power: High The customer/buyers have very little need to use
any company involved in the industry. This results
in the buyer power being extremely high because
customers can simply allocate or decide whether
or not to engage invest and services from the
food wastage industry.
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Supplier power: Low There are many New Zealand plastic providers
with capability to provide the large bins necessary
for the smart bins so supplier power will be low
because it will be hard for suppliers to increase
price without remaining competitive with other
suppliers. (TCI, 2014) (Plasticraft, 2014) (Plastics
New Zealand, 2014)
Threat of new entrants: Low Cost of new entrant is low due to the fact of high
startup costs and infrastrucutre networks. The
other reason is that the industry itself is quite
small and this would mean that large captial
would be required in order for the business to
become a threat.
Threat of substitutes: High In relation to threat of substituion the market is
quite restricting. However, the major substite
would be disposing of food wastage using already
engaged food systems. This is shown by the
figures on waste management that show that
10.7% of commercial wastage in christchurch
alone is reusable organics such as kitchen waste.
(Christchurch City Council, 2014)
Rivalry among existing
competitors:
High The market is limited and large partnerships with
council’s and local govenrments is intensly sought
after. However, with the use of innovative
technologies employed, competitive advantage
would be easily achieved.
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Overall attractiveness of the industry:
Although the limitaions of the industry/market are clear, high capital investment and earlier
partnerships with local government enterprises would determine the success of the
company in both long and short term environments.
3.3 Customers and Their Needs
The Recycle and Disposal industry has a considerable customer base. The customer’s are a
wide demographic of residence and non-residence that use the Auckland wastage
management systems e.g. bins. In the greater Auckland region 98.9% of the population use
some form of recycling or disposal service (Reclaim Recycling Corporation, 2013). Auckland
residents require the same standards of cleanliness that is provided in most western
societies. Their needs include; Clean and green disposable solutions to waste, as seen in the
2013 census of New Zealand and Auckland. People in Auckland view green practises of
disposal as number two for needs relating to effective wastage management (New Zealand
Census, 2013). Other needs include, effective disposal of waste and innovative uses for
wastage, e.g. storage and renewable energies. This is one of the main reasons for why the
smart bins would be an approprate and successful idea to be implemented into the Greater
Auckland region.
3.4 The Product and Service
The smart bins that we offer is recombinant or synthetic innovation. Where in turn a
pervious idea or ideas e.g. recycling and compost are expanded from the existing
parameters of this area. The reason this idea is innovative is simple, it has never been
created before. It targets a niche market that has great potential to expand and develop.
Innovation in simple terms is the conversion of knowledge and ideas into new or improved
products, processes or services, which may be for commercial use or for the public good.
The smart bins provide all these features and more. The sensory systems and GPS systems
invoked in this product have never been used in this style before. They are also cost
effective and environmentally friendly in the way they run. The cylinder uses a vacuum to
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pressurize the area in which the rubbish is held, this in turn is then used to power the bin
itself and also avoid the issue of smell and danger to public health. The smart bins or “Bars”
(Bin, Automated, Recycling, System) is are also emptied when the sensory systems activate
the GPS, this informs a collection team in that particular district to come and empty the
bins. The waste is then taken to the processing plant where it is processed into bio fuels and
heating which can be sold to commercial and public use, thus improving or carbon foot print
and decreasing our wastage. The bio waste that is left after this process is then sold to
farming industries as feed. This would decrease cost strain on farmers as well as improving
3.5 Suppliers and Partners
The suppliers that assist smart bins include; the intial companies that supply resouces or
technologies used in the process of making the smart bins. It also includes placement and
installment suppliers, that assist in establishment of GPS connection and effective
placement for the user. The customer also acts as a supplier as they are using our service
and supplying us with a resource that can be processed into a profit.
The Partners include; The Auckland city council which will be using our services to improve
and encourage effective green waste management. They will also act as a media outlet,
encourage businesses and companies to use the smart bins in their workplace.
3.6 Strategy: Red Leicester Chalk and Cheese
COMPETITIVE SCOPE:
The Smart Bins only directly target the narrow market of food businesses that
have direct and indirect wastage of large quantities of food, as opposed to
other all wholesalers and producers of food waste. Economically the Smart Bin
would be expensive and unattainable for small producers, therefore large
producers would be seen as the most viable and direct target market or
demographic.
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COST STRATEGY:
The Smart bin price strategy is low. The reasons for this is to supply a service
to match a cost competitive industry and client. This is only achieved by
charging the user with the direct costs of the bins e.g. cost of pickup and
installation. In order to remain competitive other costs including research,
maintance and processing of waste are paid for through Biodiesel sales.
STRATEGY:
The overall strategy for Smart Bins is Focused low cost.
3.7 Value Chain Activity: Receiving and Storing Raw materials
Receiving and storing raw materials is an important value chain activity for our
business. The activity engaged in the Smart Bin process aims to provide a streamline
and automated alignment, from our machine to the other machine communication.
This process of automaton enables the pickup teams to effectively select the most
effective route and thus improving customer service and relations. In doing so, costs
are substantially reduced and processing of food wastage is more effective.
3.8 Business Processes
Bin Pickup process: The smart bins use a cloud system that allows them to communicate
with central communications. This information is then sent to the appropriate truck drivers
who empty and smart bins and collect the food wastage. This is related to our Value chain
activity by receiving the organic materials
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FOOD CONVERSION PROCESS:
This involves the conversion from the raw input materials (food wastage) into productive measures
such as methane, compost or animal feed. The complicated process is simplified in the diagram to
demonstrate the food conversion process. It is sorted into the suitable areas and then processed in
the appropriate many to produce the outputs named.
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3.9 Functionalities
3.9.1. BIN PICKUP PROCESS
Indentify when the bin is near capacity
Organise a route for the driver to take
Send a driver on the route
Empty the bins into the truck
Transport the contents to the conversion centre
Empty the contents into the main holding container
3.9.2. FOOD CONVERSION PROCESS
Identify the food wastage’s intended purpose (compost, feed etc)
Take the food waste to the relevant processing areas
Process the food as needed for each purpose
3.10 Systems
3.10.1. FOOD PROCESSING SYSTEM- The process of food wastage being extrampelated into
animal feed or biodiesel substituions. This in turn has parallels to the functionality “Process
the food as needed for each pupose”, bringig our vision of an green, reduced emission
future into a relalistic perspective.
3.10.2. DRIVER MANAGEMENT SYSTEM – The link between driver and communication is
imperative. The reliablity and effectiveness of the company relates directly to how effective
the technologies put in place are for route management. Digital communication with the
drivers and direction for them to go to collect the bins and empty them is imperative. This is
where the driver plays a key part in many of the functionalities through his collection and
transporting of the bins contents.
3.10.3. BIN MANAGEMENT SYSTEM – This system involves GPS signalling and communication
to the central computer system to organise the removal of waste. This relates directly to the
functionalities “Identify when the Bin is near capacity”. This supports the vision of using our
smart bin technology in order to help reduce the organic waste ending up in landfills.
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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)
Receiving
and storing
raw
material
Bin Pickup process
Indentify when bin is near capacity
Organise a route for driver to take
Send a driver to route
DRIVER MANAGEMENT SYSTEM BIN MANAGEMENT SYSTEM
Supply chain management Decision support systems
FOOD
CONVERSION
PROCESS
Identify the food wastages purpose (compost, feed etc)
Take the food waste to the relevant processing areas
Process the food as needed for each purpose
FOOD PROCESSING SYSTEM Supply chain management
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CONCLUSION
In conclusion this business expresses all the valid traits of a successful entity. The product
and industry are well suited to today’s business environment as it is cost effective and has a
large target market which can be easily reached with the right networking. Organisation is
key for a successful green and sustainable world. As New Zealand is seen a eco-friendly
country it is imperative that goals are set and opportunities such as the Smart Bins are
invested in to ensure a bright and healthy world for future generations.
Improving Customer Satisfaction: By analysing the market, and collecting information
about customer demands the product can constantly improve to satisfy customer’s needs.
Creating Competitive Advantages: the process of developing campaigns creates a
competitive advantage, as it increases publicity and awareness of the benefit customers can
enjoy from the product. In a rapidly changing and highly competitive industry, as the Food
wastage industry, differentiating the product is vital to attract potential customers.
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REFERENCES
WORKS CITED
Christchurch City Council. (2014, March 21). Home and living. From Christchurch city council:
http://www.ccc.govt.nz/homeliving/rubbish/wastestatistics.aspx
New Zealand Census. (2013, 11 04). http://www.stats.govt.nz/census/2013-census.aspx. From
http://www.stats.govt.nz: http://www.stats.govt.nz
Plasticraft. (2014). Plasticraft. From Plastic manufacture: http://www.plasticraft.co.nz/
Plastics New Zealand. (2014). Plastics New Zealand. From Plastics: http://www.plastics.org.nz/
Reclaim Recycling Corporation. (2013, 10 14). http://www.reclaim.co.nz/page.php?ref=vision. From
http://www.reclaim.co.nz: http://www.reclaim.co.nz
Statistics NZ. (2008). Statistics New Zealand. From Statistics nz website:
http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/Measuring-NZ-progress-sustainable-dev-
%20approach/sustainable-development/waste.aspx
TCI. (2014). Custom moulding. From tcinz: http://www.tcinz.co.nz/custom_moulding.htm
Vodafone. (2014). Vodafone New Zealand. From Vodafone transform your business:
http://www.vodafone.co.nz/corporate-and-government/products-and-solutions/cloud/
Waste management NZ. (2014, May). Waste management. Retrieved May 25, 2014 from Waste management:
https://www.wastemanagement.co.nz
We compost. (2014). wecompost. From Wecompost: http://www.wecompost.co.nz
