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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Sukhpreet Mann
NetID Sman944
Group Number: 145
Website Link: http://2014s2group145.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Wednesday 1pm
Time Spent on
Assignment:
16 hours Word Count: 1631

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MY FOOD
INTRODUCTION
The 2012/13 NZ health survey found that 1 in 3 adults were obese (31%) and a further 34% were
overweight, making NZ 3rd highest in obesity on the OECD. The number of diagnosed diabetes
cases had increased in 2013 to 243,125 (Diabetes NZ). These impacts on health and diseases
have been influenced by diet problems. If unaddressed, disease rates are likely to continue to
increase, as our fast paced lives make it hard to give careful consideration to the food we eat.
My FOOD is a mobile application that helps resolve this problem.
3. BUSINESS SECTION
3.1 Vision
Providing a personalised, easy to use mobile application offering unique food suggestions to
strive for a healthier population.
3.2 Industry Analysis: Food Reccomendation Mobile Application Industry
Industry: Food Recommendation Mobile Application Industry.
Force: High/Low: Justification:
Buyer power: Low
There are only a few alternatives available on the
market. This includes gym memberships (average
yearly price of $448- NZ health and Fitness centre
industry Survey 2001) or personalised nutrition
plans but this is limited to the prosperous segment
of our target market.
Supplier power: Low
There are many app developers in the market,
consisting of domestic (Sush mobile NZ, Mobile
apps NZ) and international companies. There is also
a large range of internet providers. Therefore
supplier power is low.
Threat of new entrants: High Even for considerably low cost applications, the
development requires precise knowledge of
technology. Therefore it Involves some research
and development but overall start-up costs are not
too major. So the entry barriers are quite low,

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making the overall threat of new entrants high.
Threat of substitutes: Low
Alternatives include nutrition plans from specialists
or gym instructors, which are extremely expensive
in comparison. Other substitutes include
researching and self- choosing food, which could be
time consuming. Websites, such as
choosemyplate.gov (2011) made by the United
States, are also emerging. However NZ has not yet
introduced this.
Rivalry among existing
competitors:
High Currently, competition is brewing as various types
of devices and websites are being introduced to
assist people in eating the right types of food. The
rivalry is emphasised by the large amount of apps in
the industry available for free or very low prices.
Overall attractiveness of the industry: It is a relatively attractive industry with low threat of
substitutes and buyer power due to convenience and reasonable pricing. The rivalry among
existing competitors can be altered given the scope for innovation and effectiveness once the
application is put to use, which My FOOD will strive for. The only risk is the high threat of new
entrants, as this initiates the difficulty of making a high profit, but this could be commutated by
successful positioning in the industry.
3.3 Customers and Thei r Needs
We target people trying to achieve a healthy weight or overcome diseases such as cholesterol
and diabetes. These people lack knowledge about whether they are eating the right food. They
require someone to recommend food choices to them consistent with their health goals and
medical backgrounds.

People like workers and students are exposed to fast paced lifestyles which result in them
lacking awareness of whether they are eating enough of the right foods. They require a device
to keep track of what nutrients they have eaten and what they're body lacks.

Both customers have identified the need to have a food recommendation system that works, is
easy to use and convenient in order to maintain a healthy living.
3.4 The Product and Service
My FOOD is easy to use and starts with a questionnaire. The questionnaire takes into account a
range of factors affecting a personals diet, including users' medical background, health goals
and weekly budgets. After completion, the mobile application will provide users with a
personalized set of food recommendations at different times of the day. It will also take into

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scrutiny food locations, so food will be within distance for busy workers. This also makes it more
convenient for our health conscious customers to keep on track with their goals.

Customers are provided with a mechanism to offer them personalized food recommendations,
offering a mix of the right amounts of nutrients. They are satisfied by the convenience offered
by My FOOD as it is a mobile application, which is downloadable on any smartphone.
3.5 Suppliers and Partners
Companies that supply the required inputs to launch My FOOD and facilitate its operation are
our suppliers. For example, Mobile Apps NZ will supply us with the service of developing our app
and Spark NZ will provide us internet services. We are confident to source these components
from the following suppliers given their reputation for reliability and quality.

My Food will be affiliated with PayPal and the government. PayPal will take a percentage of sale
plus a flat fees per transaction, but give us assurance that online payments are conducted in a
secure, efficient and easy manner. The government is influential in promoting our application
by endorsing it as a mechanism to invest in, for a better health.
3.6 Strategy: Differenti ation
Our cost strategy is high cost as we use high quality inputs to make our personalized and user
friendly mobile application, providing users with a multifunctioning app. By purchasing My
FOOD, people will be able to safeguard a healthy body and a healthy living for themselves.

The competitive scope is very broad given the number of people that face difficulty making the
right food choices. My FOOD is aimed at anyone who is willing to take measures to invest in a
healthy life, to avoid the emerging problems of obesity and diabetes facing NZ.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Market and sell the product
The most important value chain activity for this business is Market and sell the product.
We need to ensure My FOOD is carefully marketed in order to reach the broad market and
effectively position itself. The features of the app being a multifunctional application and
offering a personalized and valuable experience for users, is unique to My FOOD. It is significant
to clearly communicate this to potential customers. It is also vital to establish our app as an
effective means to show improvements in customers health, within customer minds. By selling
more downloads of our app, we will be getting closer to our ultimate aim of achieving a
healthier population.
3.8 Business Processes

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3.8.1. PAYMENT RECEIVI NG PROCESS - This process starts with the purchaser's decision to
purchase the app. PayPal secure socket layer will recognize the payment, information regarding
the purchase is then passed onto our business, payment then proceeds to payment gateway,
resulting in payment being received. A higher value is created for customers by this purchasing
process as they are assured of their purchasing details remaining confidential.


3.8.2. PRODUCT MARKETING PROCESS - This ensures that our message is
successfully communicated to potential customers. Market research will help identify the
segments of the market, the firm wishes to target. A strategic strategy is then developed

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and approved by the executives before it can be implemented. The steps are integrated
to deliver a quality and successful marketing campaign.



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3.9 Functionalities
3.9.1. PAYMENT RECEIVI NG PROCESS
Keeps payment details of customers confidential
Ensures payment for the download of our application

3.9.2. THE PRODUCT MARKETING PROCESS
Communicates the business's message to potential customers strategically
Threats and opportunities present in the business environment are identified
3.10 Systems

3.10. 1. CUSTOMER COMMUNICATI ON MANAGEMENT SYSTEM - This system is used to manage
the businesss communications with its customers. This involves developing the marketing
strategy, as well as taking into account customer feedback. By strategically marketing to
potential customers, we will be able to increase purchases of My FOOD and ultimately get closer
to our aim of a healthier population.
3.10. 2. PAYMENT DETECTI ON SYSTEM - Once payment has been received by the payment
gateway, this system will detect the message of a successful payment. Automatic authorisation
will be sent to allow the download of our app by the customer, ensuring reliability and efficiency
in our service. Customer confidentiality is maintained, whilst abiding to our business vision of
providing an easy to use application.
3.10. 3. BUSINESS ENVIRONMENT ANALYSI S SYSTEM - This system detects changes in the
business environment. After taking into account researched information, new opportunities and
threats in the external environment are identified. We can use this knowledge in conjunction
with our strengths and weaknesses to design a promising marketing strategy. These measures
ensure that My FOOD operates in consistency with new market trends.

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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)

Market and
sell the
product
1. Payment
Receiving
Process
1. Keeps payment details of customers
confidential

2. Ensures payment for the download of our
application
Payment Detection System Transaction Processing
System

2. Product
Marketing
Process
1. Communicates the businesss message to
potential customers strategically

2. Threats and opportunities present in the
business environment are identified

Customer Communication
Management System

Business Environamnet
Analysis System
Customer Relationship
Management System

Decision Support System

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CONCLUSION
My FOOD is a food recommendation mobile application addressing the increasing health
problems facing New Zealand. It looks at the different aspects that affect an individual's diet and
recommends accordingly, with the ultimate purpose of achieving healthier population. IS and IT
have been implemented in stages such as the processing of payments (Payment Detection
System) and the marketing of our application (Customer Communication Management System
and Business Environment Analysis System). This creates a competitive advantage by assuring
the quality of our mobile application and increased effectiveness of our marketing strategy. This
will increase levels of customer satisfaction, proving the value added by IT and IS, enabling us to
make a profit whilst also making the world a better place by achieving a healthier population
with My FOOD.
REFERENCES

1. Kyla Boyse. (2011, August). Obesity and Overweight. University of Michigen Health
System. Retrieved from http://www.med.umich.edu/yourchild/topics/obesity.htm

2. Government of Prince Edward Island. (n.d.). Selling Online Using Your Own Website-
Setting up An Online Store. E-Commerce Purchasing and Selling Online. Retrieved
from http://www.gov.pe.ca/photos/original/IPEI_ebiz_ecomm.pdf
3. Statistics New Zealand (2001). Statistics on the NZ Health and Fitness Centre Industry.
Retrieved from http://www.fitnessnz.co.nz/stats.asp

4. Ministry of Health NZ. (2013, December, 12). Obesity data and stats. Retrieved from
http://www.health.govt.nz/nz-health-statistics/health-statistics-and-data-sets/obesity-
data-and-stats

5. Diabetes NZ. Estimated diagnosed cases of diabetes by DHB as at December 2013.
Retrieved from http://www.diabetes.org.nz/resource/facts_and_figures