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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTIONSUMMER 2014

Name Leah FindlayNetID Lfin030Group Number: 16Website Link: http://infosys110group16.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Claris Tue 2pm

Time Spent on Assignment:

27 hours Word Count: 1646

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ELECTRONIC RECEIPTSINTRODUCTION

Every year, billions of paper receipts are printed. It is unsustainable for the environment to

print this much paper. Not only is printing receipts bad for the environment, it is also

detrimental to companies. Businesses waste thousands of dollars on printing receipts when

a simple solution could resolve this. Turning receipts from paper to electronic is the way of

the future.

3. BUSINESS SECTION

3.1 Vision

To create and implement a high quality, cost effective Electronic Receipt System that

benefits retailers, consumers and the environment.

3.2 Industry Analysis: Electronic Receipts Industry

Industry: Electronic Receipts Industry. Electronic receipts as a result of transactions

between retailers and customers after a purchase has been made using EFTPOS.

Force: High/Low: Justification:

Buyer power: Low Consumers have limited control over the

transaction receipts offered, unless they were to

only purchase from shops with a specific type of

receipt process. However, this would limit their

shopping ability too much to be worthwhile for

the consumer. (U.S. Patent No. 5,739,512, 1998).

Supplier power: High Providers of the technology to retailers are

limited as it requires highly skilled professionals,

therefore suppliers have more control over

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supplies. (Porter, 1985).

Threat of new entrants: HighEntry barriers such as infrastructure and sign up costs are low. (Lee, Ju & Jeong, 2006)

Threat of substitutes: HighThe paper receipt system is the dominant system

in place at the moment. Some retailers also

prefer to hand write receipts upon request. (U.S.

Patent No. 5,590,038, 1996)

Rivalry among existing

competitors:

HighMost retailers have paper receipt systems

implemented currently, meaning paper receipts

dominate the industry at present. (U.S. Patent

No. 6,397,194, 2002)

Overall attractiveness of the industry: It is not a very attractive industry as only one of

Porter’s Five Forces is low. However, there is a high element of First-Mover Advantage as

once the initial transition is made to electronic receipts system, all retailers will move giving

companies with an electronic system a much better competitive advantage than companies

which only offer a paper system. Because of the supreme benefits of cost-efficiency and

general efficacy of the electronic receipts system, once the transition has been made to

paperless receipts, most if not all, competition of companies which supply paper receipts

will be expunged.

3.3 Customers and Their Needs

Retailers such as supermarkets, clothing stores and gift shops are customers. Retailers use

transaction processing systems to fulfill a purchase and give proof of receipt to a consumer.

Retailers need a transaction processing system that is easy for both consumers and retail

staff to use. It needs to be quick, reliable and effective. Retailers need a cost-effective

transaction processing system in place. Retailers also need to be able to keep track of

consumer purchases to help with re-stocking of items so that they can taylor their shop to

fit their consumers needs and therefore maximise consumer buying. Retailers need to

satisfy their consumers needs which include being able to easily make returns and keep

track of their own spending.3

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3.4 The Product and Service

The electronic receipts system is very user-friendly. With the innovative software installed

on the EFTPOS machine and integration with banks, all the work is done for both the staff

and customer. The retailer simply has to scan items and enter the transaction as per normal

while the consumer simply has to swipe or insert their card and put in their pin or sign as

per normal. The software does all the processing and sends the information to the retailers

database and to the consumers bank statement. For both the retailer and consumer, there

is nothing new to learn as all that is replaced is the technology being used. It is quick as the

information shows up in the required places as soon as the purchase has been processed. It

is reliable as the technology is just an upgraded, smarter version of what is already reliably

installed in most retailer outlets. It is effective as it eliminates the need for paper receipts

which costs the retailer money and time for both the consumer and retailer when the

consumer has lost their receipt and is wanting to return an item. As the technology can hold

more information it can help retailers make smarter, more informed decision about what

items to stock. This is because all details about the purchase are held in one place making it

easier to assess what consumers buy and how often.

3.5 Suppliers and Partners

A Software Engineer is a supplier as they write the software needed to implement the

electronic receipts system. A Computer Machine Components Provider is a supplier as they

provide the parts of the machine that will be put together to facilitate the transactions.

A bank such as ASB is a partner as the EFTPOS technology is integrated with the bank to

enable the receipt to show up on the statement. EFTPOS is a partner as the electronic

receipts system needs to be integrated with their system to update it. EFTPOS is also a well-

established company giving my start-up company a head-start by establishing ourselves as

partners, thus getting credability.

3.6 Strategy: Differentiation

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The cost strategy is high cost as the electronic receipts system is an excellent quality,

innovative system that is expensive to install but saves the retailer money by implementing

it.

The competitive scope is broad market as all retailers are targeted to implement the

electronic receipt system.

The overall strategy is therefore Differentiation.

3.7 Value Chain Activity: Technology Development (and R&D)

The most important value chain activity for this business is Technology Development (and

R&D)

The most up-to-date and innovative technology is needed to create and implement a high

quality, cost effective electronic receipt system. This is the most important activity as

technology is the foundation of the electronic transaction process. Without innovative

technology the process would not be able to be successfully implemented. To maintain a

high level of research and development is essential to maintaining a competitive advantage

over competitors. This VC activity is more important than Marketing and Selling the product

as because EFTPOS is a partner, all retailers with EFTPOS machines will be customers

automatically when they upgrade their EFTPOS machine.

3.8 Business Processes

3.8.1. TECHNOLOGY RESEARCH PROCESS – It is important for the company to be at the

leading edge of technology. This process ensures the company is constantly looking for ways

to better their products to ensure a high quality product with the best technology is always

offered. This is necessary as technology is very quick paced and constantly changing. This is

beneficial for the retailer, consumer and environment. This process researches ideas in how

the product can be faster, use less resources and be more automated with the use of

enhanced technology. This process is necessary in laying the foundation for the Product

Development Process.

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3.8.2. PRODUCT DEVELOPMENT PROCESS – This is the succeeding process from the

Technology Research Process. Once new technology has been found, new ideas are created

in order to develop new software. This is vital to the company’s success as maintaining a

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competitive advantage over competitors by offering a high quality product is key. The

competitive advantage of Electronic Receipts system is being at the leading edge of new

technology. This means always advancing and enhancing current concepts to offer the best

product available in the market.

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3.9 Functionalities

3.9.1. TECHNOLOGY RESEARCH PROCESS

Analyse EFTPOS data Integrate old data with new data

3.9.2. PRODUCT DEVELOPMENT PROCESS

Suggest new product based on data integration Analyse value of new idea for new product

3.10 Systems

3.10.1. DATABASE ANALYSIS SYSTEM – This system anaylses EFTPOS data and produces a

report of the current EFTPOS data. This allows for the research department to make more

informed decisions by having the data automatically gathered and analysed to form

valuable information.

3.10.2. DATA INTEGRATION SYSTEM – This system integrates old data with new data to

produce a report showing areas in which the business can improve. This is an important step

as the company can see explicit areas in which the company lacks a competitive advantage.

This integration of data lays the foundation for creating new high quality, cost effective

products with the best software and computer components.

3.10.3. INFORMATION MANAGEMENT SYSTEM - This system suggests new products based on

data integration performed in the Technology Research Process. This automated process

makes it easier and more efficient for the organisation to create new products. The system

analyses the integrated data efficiently and interprets the data to make informed

suggestions on which new products could be valuable. The information management system

reduces data, analysis and decision latency for the company by increasing the business

intelligence.

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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)

Technology

Developmen

t (and R&D)

1. Technology Research Process

1. Analyse EFTPOS data

2. Integrate old with new data

Database Analysis System

Data Integration System

Transaction Processing System

Transaction Processing System

2. Product

Development

Process

1. Suggest new product based on data integration

2. Analyse value of new idea for new product

Information Management System

Idea Value Analysis System

Decision Support System

Decision Support System

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CONCLUSION

The Electronic Receipt System benefits retailers, consumers and the environment by

offering a high quality, cost-effective product. It means receipts are more accessible to

retailers and consumers making it possible to keep track of spending which is beneficial to

both. The environment is also under less harm with the Electronic Receipt System in place

as it reduces the amount of paper printed. The use of TPS and DSS is essential in the

automation and efficiency of the Electronic Receipt System. Without the use of information

systems, the product would not be of the high quality it needs to be to achieve the

company’s vision. Elimination of unnecessary steps in processes and automation of

processes are two key factors in the success of the Electronic Receipt System.

REFERENCES

1. Houvener, R. C., & Hoenisch, I. P. (2002). U.S. Patent No. 6,397,194. Washington, DC: U.S. Patent and Trademark Office.

2. Lee, K. J., Ju, J. I., & Jeong, J. M. (2006, August). A payment & receipt business model in U-commerce environment. In Proceedings of the 8th international conference on Electronic commerce: The new e-commerce: innovations for conquering current barriers, obstacles and limitations to conducting successful business on the internet (pp. 319-324). ACM.

3. Pitroda, S. G. (1996). U.S. Patent No. 5,590,038. Washington, DC: U.S. Patent and Trademark Office.

4. Porter, M. E. (1985). Technology and competitive advantage. Journal of Business Strategy, 5(3), 60-78.

5. Tognazzini, B. (1998). U.S. Patent No. 5,739,512. Washington, DC: U.S. Patent and Trademark Office.

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