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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Michelle (Fu-Yun) Wang
NetID Mwan475
Group Number: 511
Website Link: http://group511d2.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kirsten Thursday 12am
Time Spent on
Assignment:
30hours+ Word Count: 1647


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U-BIKE PUBLIC BIKE RENTAL SYSTEM
INTRODUCTION
Our problem statement: The current efficiency of the bus transportation system around Auckland City and
North Shore.
Our solution was: The implementation of a public bike rental system called U-bikes, used in conjunction
with the current bus transportation system. It will encourage public transportation usage rather than
personal vehicles. Since the cause of the current inefficiency of bus transportation system is mainly due to
congestion, reducing personal vehicles off the roads, buses wouldnt be hindered by traffic. Hence, our
current bus transportation system can be more efficient.
3.1 Vision
To deliver a convenient, reliable and leading service in the public transportation industry that exceeds the
expectations of our customers while also providing physical health benefits to the individual.
3.2 Industry Analysis: Public transportation industry
Forces High/Low Justification
Buyer
power
HIGH Research shows buses are the most common form of public transport followed by
trains. Buyers ultimately hold the power to drive prices down for new companies
entering the industry as the change in customers preference of public
transportation will not change immediately.
Supplier
power
LOW Suppliers are easily interchangeable because suppliers are unable to differentiate
raw materials required for the manufacture of public transportation vehicles. Steel
represents one of the most essential raw material required for public
transportation vehicles. As the industry has a wide range of possible suppliers, the
power of suppliers to drive up the prices of inputs is low.
Threat of
new
entrants
LOW Implementing a new public transportation system requires a lot of start-up costs
which is considered risky for companies. Profits to be made from public
transportation would require a long time because start-up costs would need to be
covered and the public would have to be able to accept and adjust to this new
form of public transportation. Approximately $0.6 billion has been spent on NZ
public transportation to date and its constantly increasing.
Threat of
substitutes
HIGH Only 2.5% of New Zealanders make use of public transport because public
transportation isnt cheap. (Hon Pete, 2005, pg7) $1.90 for 1 stage of bus ride for
adults. Major threat of substitutes is personal vehicles.


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Rivalry
among
existing
competitors
HIGH In this industry, the two game players are buses and trains. Buses and trains make
up a large percentage of New Zealands total public transportation revenue. As
competition is already fierce in the industry, in order for new companies to survive
and generate profit, they must have an innovative competitive advantage or
something that appeals to the target market.
Overall attractiveness of the industry: The public transportation industry isnt attractive as 3/5 forces are
high. Buyer power is high as buses and trains are the main game players in the industry. Threat of
sustitutes is high as public transportation isnt cheap, only 2.5% of New Zealand population uses it. Rivalry
among existing competitors is high as a large proportion of New Zealands public transportation revenue is
earnt by buses and trains.
3.3 Customers and Thei r Needs: University Students, Workers
North Shore students face weekly fare rises of $10 or more with the removal of the Northern Pass. Bus and
train transportation fees arent cheap even with school concessions. (Mathew, 2013)
From transportblog.co.nz, it was mentioned that buses disappear at random. New Zealanders are often
faced with inconveniences by the system and it affects people that have a set time to be at a destination.
(Matt, 2014)
In a 2013 survey, almost 31% NZ adults were obese whereas 1/9 children were obese. This shows the need
for New Zealanders to exercise. (Ministry of Health, 2013)
Evidence shows our target market demands a cheap and reliable public transportation system.
3.4 The Product and Service
Customers face expensive and rising bus fares. U-bike targets at users on low budget. The first 30 minutes
use of the bike is free and for every 5 minutes afterwards, 30 cents is automatically charged on your AT
Hop card. The 30 minutes free usage is an incentive for U-bike users to have a fast turnover rate.
Through longer travelling times, users can benefit physically by exercising and toning up their bodies.
U-bikes will be located at bus stops so people can always rely on U-bikes to help them reach their
destinations. U-bike is designed to improve the efficiency of bus transportation systems as it minimizes
vehicles on the road and is a life saviour when buses are delayed.






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3.5 Suppliers and Partners
Supplier 1 U-bike would source their supply of bicycles from Giant bicycles. They are renowned for its
high quality guaranteed bicycles and have pioneered advancements.
Supplier 2 Mercury Energy. Many functions of U-bike requires the usage of electricity. Electricity is
required to keep track of the usage of bicycles and to provide users with a control panel which instructs
the user how to use the U-bike.
Partner 1 Auckland Council. U-bikes would work with the AT Hop card system which the Auckland
Council has reinforced for travel on public transportation in terms of universal payment through the
prepaid smart card.
Partner 2 Tourism Industry Association NZ. Through collaboration, U-bikes can receive international
awareness and publicity. Tourism industry can schedule tours around NZ and use U-bikes as the main
source of transportation.
3.6 Strategy: Cost Leadership strategy
U-bikes follow a low cost strategy as its competing with other public transportation systems offered
prices so the first 30 minutes use of the U-bike is free.
U-bike follows a broad market competitive scope as its targeting to be one of the most frequently used
transportation system in NZ. Although U-bike targets at customers that are students and workers, it forms
a partnership with Tourism Industry Association NZ to make sure that there is publicity internationally and
nationally. The U-bike aims at markets beyond NZ as well.
3.7 Value Chain Activity: The market and sell of U-bikes
U-bike needs to investigate on an effective marketing strategy for customers to switch to use U-bikes to
achieve its vision statement of delivering a low cost and convenient service. A strategy would be to
advertise the price competitive U-bikes as students would be able to cut back their transportation
spending.
Marketing strategies are essential in order to achieve international and national publicity. Revenue from U-
bikes would be generated through the increased usage of U-bikes and it would give an indication of how
successful the marketing for U-bikes are.








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3.8 Busi ness Processes
Business Process 1: Marketing Campaign
Management Process
Justification: By managing market campaigns for
U-bikes, it will gain publicity both internationally
and nationally. Marketing campaigns will be
focused on targeting customer demands through
obtaining the right information from the
assistance of the customer feedback business
process. This ensures the accuracy in
determining the needs of customers in a public
transportation system therefore the marketing
campaign management process can improve
efficiencies.
Business Process 2: Payment management business process
Justification: By controlling the payment management
business process, U-bikes can be easily retrieved by a swipe
of the AT Hop card and the transaction would be
immediately acknowledged. Payments are automatically
charged on the Hop card. This technology incorporated
payment process improves efficiencies and allows the
smooth flow of the bike rental cycle. Without it, humans


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have to physically record the rental and return of bicycles.

3.9 Functi onal i ti es
- Marketing Campaign Management Business Process
Functionality 1: Advertising U-bikes
Functionality 2: Develop marketing strategy
- Payment Management Business Process
Functionality 1: Integration of the U-bike payment system with the AT Hop card system
Functionality 2: Automatic updates on the U-bike payment systems
3.10 Systems

Specific Information systems 1: Marketing Management Systems
U-bikes need to be advertised and an effective marketing strategy needs to be constructed in order to fulfil
the vision statement of to deliver a convenient, reliable, leading service . U-bikes need to gain publicity
and this can be through advertisements and flyers etc. Market places need to be analysed, targeting at
potential users and market through what will potentially appeal to the users.

Specific Information systems 2: Customer feedback systems
Filling in the customer feedback form online and asking for assistance at the kiosk machines are
incorporated within the customer feedback system. This achieves the vision of providing a leading service
that exceeds the expectations of the customers. Input of customers responses to the U-bike system will
enhance the value of the service to the customer and improve customer satisfaction and expectations.

Specific Information systems 3: Bike rental information systems
Integration of the U-bike payment system with the AT Hop card system and automatic updates on the U-
bike payment are incorporated under the bike rental information systems. In order to deliver a convenient
service, U-bikes transaction processes have been integrated with the AT Hop card system so users can
enjoy the benefits of convenient payment process. U-bikes transaction processes through AT Hop cards
have to be updated regularly to remove bugs or technical glitches.






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3.10 Summary Tabl e

Value Chain Activity Business
Processes
Functionalities Specific Information Systems Broad Information Systems


Market
and sell the
product
Marketing
Campaign
Management
Business
Process
1. Advertising
U-bikes

2. Develop a
marketing
strategy
1. Marketing
Management Systems

2. Marketing
Management Systems

1. Transaction Processing
Systems

2. Transaction Processing
System
Payment
Management
Business
Process

1. Integration of
the U-bike
payment system
with the AT Hop
card system

2. Automatic
updates on the
U-bike payment
systems
1. Technology improvement
systems


2. Customer feedback
Systems
1. Transaction Processing
System
2. Customer Relationship
Management Systems

CONCLUSION
Our public bike rental system called U-bikes that aims to deliver a convenient, reliable and leading service
in the public transportation industry is supported by bike rental information systems, customer feedback
systems and marketing management systems. The systems incorporated the various functionalities within
the marketing campaign management and payment management business process to provide an
intricately designed U-bike rental system. Through the guidance of information systems and information
technology, value is created and captured through the marketing and usage of U-bikes.
REFERENCES
1. Dearnaley, Mathew. (2013, September 5). Some comfort for bus passengers facing massive fare rises.
Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11120146
2. Ministry of Health. (2014, January 13). Obesity Key facts and Statistics. Retrieved May 19 2014 from
http://www.health.govt.nz/our-work/diseases-and-conditions/obesity/obesity-key-facts-and-statistics
3. Baltzan, Paige. Lynch Kathy. Blakely, Peter. (2008) Business Driven Information Systems. Second Edition.
New York. McGraw-Hill/Irwin
4. Auckland Transport. (2014). Bus Fares. Retrieved from http://www.maxx.co.nz/info/pricing-passes/bus-
fares.aspx


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5. Giant. (2014). About Giant. Retrieved from http://www.giant-bicycles.com/en-nz/aboutgiant/
6. Mercury Energy. (2014). About us. Retrieved from http://www.mercury.co.nz/About-Us.aspx
7. Hodgson, Hon Pete. (2005). Getting there on foot, by cycle. New Zealand. pp7. Retrieved from
http://www.beehive.govt.nz/Documents/Files/Getting%20there.pdf. Access date: 23
rd
May
8. L, Matt. (2014, March 26
th
). Bus route frustration. Retrieved from http://transportblog.co.nz/2014/05/