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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Kelvin Ta
NetID kta336
Group Number: 320
Website Link: http://infosys1102014s1group320.blogspot.co.nz/p/d1.html
Tutorial Details
Tutor: Day: Time:
KitWah Wednesday 12pm
Time Spent on
Assignment:
101 hours Word Count: 1328

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INFOSYS.110 2014 DELIVERABLE 02
INTRODUCTION
In summary of D1, the problem statement is that the obesity rates in New Zealand are too
high. The solution to solving this problem is to try to increase the amount of people
exercising by enhancing the gym expereince using IS and IT. The enchancements include a
contactless smart card that the individual waves on to the machine to scan his/her body
which then assigns the recommended tasks to do. After, the individual waves the same
card on to a nearby machine(similar to the ones for the athop cards) to record the amount
of reps and sets he/she has done by the collaboration of the smart cameras. Then, after the
assigned tasks have been done, points will be rewarded on to the card by automation which
can be redeemed for fruits, vegies and supplements located in the store inside the gym.
Overall, this integrates to a fun expereince which is a powerful motivator.
3. BUSINESS SECTION
3.1 Vision
To provide a premium video-game-like gym expereince supported by cutting edge
technology, to convey our main goal of reducing the obesity rates by getting the whole of
New Zealand simultaneously fit and having fun.
3.2 Industry Analysis: Fitness Industry
Industry: Fitness Industry.
Force: High/Low: Justification:
Buyer power: High This is because there are an approximate of 400-
600 Health and Fitness centres in New Zealand
meaning Buyers have many services to choose
from (Information on New Zealand Fitness

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Industry, 2012).
Supplier power: Low This is because there are 27 preferred main
suppliers meaning it is easy to switch suppliers to
receive a lower cost (Official Preferred Supplier
Directory 2013/14 Edition, 2013). Also, because
most of the equipments are generic.
Threat of new entrants: High This is because generally fitness centers are easy
to set up as they have low barriers to entry such
as operators finding it easy to finance from a
range of sources sugesting low start up costs
(Poitras,2011).
Threat of substitutes: High This is because there are many other ways of
being fit such as buying home equipment or
weight-loss books from retailers for example The
Warehouse. Also there are other sources such as
pharmacies, hypnotists, nutritionilists, sports
clubs, and online and tv promotions (A profile of
the New Zealand Fitness Industry, 2009).
Rivalry among existing
competitors:
High This is because there is fierce competition
between the main fitness centres which are Les
Mills, Jetts, cityfitness and Contours (Gyms,
2013).
Overall attractiveness of the industry: Overall, the attractiveness of the Fitness industry is
risky as 4 out of 5 forces are strong/high.
3.3 Customers and Thei r Needs

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The target group of customers is mainly obese young to middle-aged New Zealand adults as
they make up the largest sector of gym memberships. Their needs are to lose weight but
they are not motivated to do so. As experts believe that this is due to the environment we
live in where opportunities for physical activity are limited (Ministry of Health NZ, 2014).
3.4 The Product and Service
The product and service will satisfy the potential customers needs by using fun as an
opportunity and incentive to exercise thus losing weight. The fun aspect of it is from the
vision, to transform the gym experience into a video-game like expereince. This is by
assigning missions/tasks to do, and once completed, the individual (player) earn
rewards/points and levels up. This also creates the motivation to be the best by competing
against people to reach the higher level.
3.5 Suppliers and Partners
The potential suppliers are Cardlogix supplying the contactless smart cards and Technogym
supplying commercial gym equipment. Partners are Skills Active which help train staff and
The Exercise Association of New Zealand which is a non-profit association with a principal
objective to get more New Zealanders physically active at exercise facilities in NZ (Exercise
Association of NZ,2014). The clear distinction between suppliers and partners is that
suppliers supply the goods with only revenue in mind while partners are involved in a long-
term relationship between the organisation to equally help each pursue mutual interests
such as societal goals.
3.6 Strategy: Differentiation
The cost strategy is high cost because the service is of premium content and is able to
initially maintain the high cost due to its competitive advantage being the first in the
market, gaining a first-mover advantage.
The competitive scope is broad market because most of the customers (potential gym
members who are obese) range from approximately 18-40, and the vision states the whole

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of NZ due to the goal of reducing the obesity rates by trying to target everybody to get and
stay fit.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Technology Development
The most important value chain activity for this organisation is Technology Development.
This is because it links to the vision to create a video-game-like gym expereince. To achieve
this, Technology Development plays a vital role in capturing the interests of the customers
(New Zealanders) and convinces them why the extra high cost leads to a better gym
experience which overall links and supports Porters generic strategy of Differentiation to
take place.
3.8 Business Processes
3.8.1. QUALI TY MAINTENANCE OF PROTOTYPE PROCESS This is an important business
process to the organisation because it ensures that the prototype is up to quality
perfomance standards, as the whole concept of the solution relates to the technology,
quality maintenance at frequent times is needed to bring to life the perfect expereince for
the customers. This will provide a premium gym expereince and overall maximise the
potential of customers which is the whole of NZ as stated in the vision.










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3.8.2. RELEASING NEW FEATURES PROCESS - This is an important business process to the
organisation because it delivers value by releasing new features that is derived from
customer feedback. This results in increased customer satisfaction leading to more
customers obtained and maintained by customer loyalty thus delivering on the vision to
involve the whole of New Zealand.




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3.9 Functionalities
3.9.1. QUALI TY MAINTENANCE OF PROTOTYPE PROCESS
Identify if the technology is funtioning properly.
Forecasts and compares costs.
3.9.2. RELEASING NEW FEATURES PROCESS
Capture feedback from customer.
Provide solutions to customer complaints.
3.10 Systems

3.10. 1. COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM The system supports the
vision of the organisation by identifying if the prototypes are up to quality performance
standards, in order to provide a premium video-game-like gym expereince and maximise
the potential of customers which closely reflects the whole of NZ.
3.10. 2. CUSTOMER FEEDBACK SYSTEM - The system supports the vision of the organisation by
capturing feedback from the customers as input for the process of releasing new features
thus increasing customer satisfaction leading to obtaining and maintaining more customers
which will closely reflect the whole of NZ.
3.10. 3. FORECASTING ANALYSI S SYSTEM - The system supports the vision of the organisation
by maximising the potential customers to better reflect the whole of NZ. It does this by
forecasting and comparing costs thus lowering costs of production, meaning the
organisation is able to lower the gym membership costs to the customers, increasing
demand of memberships. Also, the system forecasts many solutions to customer
complaints, to increase and maintain customer growth.

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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
Development
1. Quality
Maintenance
of Prototype
process
1. Identify if the technology is functioning
properly.

2. Forecasts and compares costs.
Computerized maintenance
management system

Forecasting analysis system
Decision Support System

Decision Support System
2. Releasing
new features
process
1. Capture feedback from customer.

2. Provide solutions to customer complaints.
Customer Feedback system


Forecasting analysis system
Customer Relationship
Management System

Decision Support System

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CONCLUSION
In conclusion, the overall business idea is to reduce the high obesity rates in New Zealand by
encompassing fun as an incentive to exercise thus reducing weight. To do this, the solution
is to create a video-game-like gym expereince supported by Information Technology (IT) and
Information Systems (IS). This is the reason why IS/IT provides extreme value to the
organisation, as it helps make the vision of a premium gym experience possible.
REFERENCES

A profile of the New Zealand Fitness Industry. (2009, May 1). A profile of the New Zealand
Fitness Industry [article] - NZIHF. Retrieved April 19, 2014, from http://www.nzihf.co.nz/media-
resources-1/articles/a-profile-of-the-new-zealand-fitness-industry
Exercise Association of New Zealand. (2014, January 1). . Retrieved April 20, 2014, from
http://exercisenz.org.nz/
Gyms. (2013, July 21). Canstar Blue New Zealand. Retrieved April 19, 2014, from
http://www.canstarblue.co.nz/health-beauty/gyms/
Information on the New Zealand Fitness Industry. (2012, April 1).http://site.fitnessnz.co.nz/wp-
content/uploads/2012/04/2012-Industry-Info-Students.pdf. Retrieved April 19, 2014, from
http://site.fitnessnz.co.nz/wp-content/uploads/2012/04/2012-Industry-Info-Students.pdf
Official Preferred Supplier Directory 2013/14 Edition (2013/14 ed.). (2013).
Obesity questions and answers. (2014, January 13). Ministry of Health NZ. Retrieved May 4,
2014, from http://www.health.govt.nz/our-work/diseases-and-conditions/obesity/obesity-
questions-and-answers
Poitras, A. (2011, February 1). Fitness Clubs: Flexibility Key to Expansion. . Retrieved May 20,
2014, from http://www.accuval.net/insights/industryinsights/detail.php?ID=153