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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Andrew Ede
NetID Aede059
Group Number: 317
Website Link: http://infosys1102014fcgroup317.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 2pm
Time Spent on
Assignment:
21 hours Word Count: 1649

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INSTAWATER
INTRODUCTION
Instawater is addressing the problem of the decreasing quality of drinking water in New
Zealand. Instawater provides an innovative IT-based solution that monitors the quality of
water in a treatment tank, detects any contaminants and purifies the water by releasing the
correct treatment. All of these processes are controlled by an automated central command
centre, so the user doesnt have to worry about anything.






3. BUSINESS SECTION
3.1 Vision
To produce an automated purifying system that provides instant water at an affordable
price.
3.2 Industry Analysis: Water Purification Industry
Industry: Water Purification Industry.
Force: High/Low: Justification:
Buyer power: Low Currently; there are very few alternatives to
Instawater. The majority of existing purification

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solutions are a point of use system(POU), where
the water is cleaned at the point of consumption.
There are few Point of Entry systems, which clean
the water at its source, Instawater is one of these.
(The Public Health and Safety Organization, 2014)
Supplier power: Low Instawater uses widely available inputs working
together to produce the filtration system. For
example, the main component is the treatment
tank, which can be any commmercial grade water
tank. There are a plethora of suppliers of the
components of instawater. Further consideration
needs to be given to the supply of water to
households. Water is the key factor in this
industry, without water there would be no
demand for instawater. However, Regional
Councils provide water as a public service, so
there is no threat of the price of water increasing.
(Watercare, 2014)
Threat of new entrants: Moderate The barriers to entry are moderately high. The
capital required to start up a company that
provides water treatment services isnt too high.
However, what makes the industry difficult to
enter is the strict health and safety standards
new companies must adhere to. (Watercare,
2014)
Threat of substitutes: Low There are not many point of entry water
purification systems commercially available in

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New Zealand, much less systems that use organic
automated solutions. Basic Market research
yields roughly three whole-house systems. (NZ
Filter Warehouse, 2013)
Rivalry among existing
competitors:
Low Customer Lock in is high in the industry as the
cost of installing an entire house system is
expensive. This means the high switching costs
for customers makes it uneconomic to switch
systems. The competition in the industry is low.
Overall attractiveness of the industry: The water purification industry is still in its infancy, it
has only been in the past decade that the systems have become commercially available.
There are a wide variety of point of consumption systems available, but Instawater
differentiates itself by being a whole-house system. This is a niche market, which is
appealing under Porters five forces model, with low supplier and buyer power, and a low
threat of new substitutes and new entrants. Moving forward the industry looks to be
offering the potential of strong sustainable profits.
3.3 Customers and Thei r Needs
The entire population requires clean drinking water, thus Instawater has a vast target group
of customers. But in particular, Instawater is aimed at rural customers who are supplied by
their own water catchment. Their need for water treatment is higher than urban customers,
as their supply doesnt receive the basic treatment provided by the regional council. This is
shown by the outbreaks of waterborne contaminants being more frequent in rural areas.
(New Zealand Public Health, 2012).
Instawaters customers demand a user friendly, clean and healthy, hassle free, and safe
supply of drinking water at every source in their households.
3.4 The Product and Service

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Our customers demand high quality, instant water to all of the outlets in their households.
Instawater meets these needs by treating the water at the point of entry for the household,
this ensures that every water source in the house provides clean water. This meets the
needs of our consumers who demand safe drinking water.
Instawater provides a computerised service where any contaminants at the source of the
water are automatically treated by the correct compound. The user doesnt have to worry
about self monitoring the water quality, as the control centre runs these processes itself.
This meets the needs of the customer as they arent required to do anything to receive the
purified water they desire.
3.5 Suppliers and Partners
The regional council of the area in question would benefit from the information gathered by
the contamination warning system[CWS] (a key component of the Instawater project). If the
CWS was to communicate with a database at the regional council and relay live action
reports, the council would gather information about contamination outbreaks. The council
could use this information to fix current outbreaks at the source, and prevent future ones
based on feedback and trends provided by the CWS. (American Water Works, 2005)
A plumbers job involves the fitting of the water system in all new households. Every time
plumbers are fitting out a new house, they could install the Instawater system at an added
cost to the consumer. This would be a mutually beneficial relationship; Instawater would
increase their sales, and the plumbers would now have differentiated themselves from their
competitors. This point of difference would come from the plumbing firm being the
exclusive supplier of instawater in the region.
One of the major components in the Instawater system is the treatment tank. An obvious
supplier would be Aquatanks. Aquatanks are New Zealands largest supplier of water tanks
in New Zealand. They sell highly accredited chemical tanks which would be suitable to use
with the treatment chemicals Instawater uses. (Aquatanks, 2013)
Intellitect Water are a company that produces water quality measuring instruments. The
nucleus of the Instawater is the control centre, and one part of this is the water quality

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monitoring. The products that Intellitect Water produce perfectly fit the requirements of
the Instawater system. Intellitect Water are a potential supplier for Instawater. (Intellitect
Water, 2013).
3.6 Strategy: Focused Low Cost
Instawater is tailored to meet the specific needs of one group of consumers in a narrow
market. There is no stratification for different demographics, Instawater is a one-size-fits-all
product. There arent any models to suit different requirements. The competitive scope of
Instawater is that of a narrow market. One element of our vision is to make Instawater
available to any consumer who requires its services. Part of this involves making our product
affordable for most consumers. The cost strategy being employed is low cost. Thus the
overall strategy is therefore Focused Low Cost.
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 key component in the Instawater system is the control centre that has to monitor a
number of processes. There is the initial monitoring of the incoming water quality, the
detection of contaminants in the water, and the control of the chemicals released to treat
impurities. The control centre allows the entire system to be computerised which coincides
with the vision to be a fully automated system. Having an automated system also lowers
the cost of running the system, which corresponds to the cost strategy mentioned earlier.
There is the initial monitoring of the incoming water quality, the detection of contaminants
in the water, and the control of the chemicals released to treat impurities. Without the
correct technology in place the system would fail to function and not meet the needs of the
consumer.
3.8 Business Processes
3.8.1. TECHNOLOGY DEVELOPMENT PROCESS This part of the creation of the product is a
critical component of the Technology development (and R&D) value chain activity. It is
important that the technology that Instawater uses is fully automated and cheap to

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build/run so that it will coincide with Instawaters vision and focused low cost strategy. If
this component isnt functional, it will prevent the rest of the system from working.

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3.8.2. ORDER PLACEMENT AND FULLFILMENT PROCESS- It is important to fulfil the customers
orders and keep them satisfied, this involves adhering to Instawaters strategy. To meet the
requirements of a Focused Low Cost strategy, it is important that the product is produced
and installed to the specific requirements of the customer and that it meets the needs of
the narrow market. If the product isnt installed on time and in specification, it wont be
fulfilling the companys strategy.





















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3.9 Functionalities
3.9.1. TECHNOLOGY DEVELOPMENT PROCESS
Creation of correctly functioning code/programming
Implementation of code into the manufacturing process of the control centre
3.9.2. ORDER PLACEMENT AND FULLFILMENT PROCESS
Receive and place customers order with the warehouse
Correct installation of Instawater at the customers dwelling
3.10 Systems

3.10. 1. TECHNOLOGY DEVELOPMENT SYSTEM This system supports our vision as it is
providing an automated product that is hassle-free. The technology created in this process is
the foundations of the automated process. It specifically supports the code creating
functionality.
3.10. 2. INSTALLATION SYSTEM For our product to work efficiently and meet our vision of
providing clean healthy water, it needs to be installed correctly. This specifically covers the
installation functionality.
3.10. 3. CODE IMPLEMENTATION SYSTEM Even if we have functioning code, itll be pointless
unless the control centre is programmed with it. This is a key step as it links together
development with manufacturing, this ties everything in together and achieves our vision
and the functionality of implementing code.
-

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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
TECHNOLOGY
DEVELOPMENT
PROCESS
1. Creating functioning code.
2. Testing code to ensure it works.
TECHNOLOGY DEVELOPMENT
SYSTEM
Enterprise Resource
Planning

ORDER
PLACEMENT
AND
FULLFILMENT
PROCESS

1. Source Product.

2. Install product to desired standard.
AVAILABI LTY CHECKING
SYSTEM

INSTALLATI ON SYSTEM
Supply Chain Management

Transaction Processing
Systems


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CONCLUSION
Instawater is an automated water purifying system that provides clean and healthy water to
a wide range of consumers at affordable prices. It will help solve the issue of water
contamination in New Zealand improving the countrys overall level of Health.
REFERENCES

1. The Public Health and Safety Organization. (2014). Selecting a Home Water
Treatment System. Retrieved from http://www.nsf.org/consumer-
resources/what-is-nsf-certification/water-filters-treatment-
certification/selecting-a-water-treatment-system

2. Watercare. (2014). Water and Wastewater Network Responsibilities. Retrieved from
http://www.watercare.co.nz/common-content/water-network-
responsibilities/Pages/default.aspx

3. Watercare. (2014). Engineering Standards. Retrieved from
http://www.watercare.co.nz/common-content/development-and-
connections/engineering-standards/Pages/default.aspx

4. NZ Filter Warehouse. (2013). Our Products. Retrieved from
http://www.nzfilterwarehouse.com/100287/shopping/shopping-plusB.html
5. New Zealand Public Health Service. (2012). New Zealand Public Health Service
Surveillance Report. Wellington. Retrieved from
https://surv.esr.cri.nz/PDF_surveillance/NZPHSR/2012/NZPHSR2012Dec.pdf
6. Halton Region. (2011). Possible Health Effects of Drinking Contaminated Well Water.
Retrieved from http://www.halton.ca/cms/One.aspx?pageId=15092\
7. Aquatanks. (2013). Aquatanks. Retrieved from http://www.aquatanks.co.nz/
8. American Water Works. (2005). Contamination Warning Systems for Water. Denver:
Roberson, A., Morley, P., Morley, K. Retreived from
http://www.awwa.org/Portals/0/files/legreg/security/ContaminationWarningSyste
ms.pdf