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Name Wei TangNetID Wtan660Group Number: 307Website Link: http://infosys110group307.blogspot.co.nz/Tutorial Details Tutor: Day: Time:
Nicholl Oblitas Costa Friday 9amTime Spent on Assignment: 12 hours Word Count: 1325
The Microchip Generates Value
Introduction:
In New Zealand, the agriculture makes a large contribution to the economy.
There has been a attention on agricultural productivity. However, there is a core
problem that productivity is inefficient in farming due to the lack of technology
and quickly spreading disease, which causes the death of livestock and high food
cost. With the rapid development of science and technology, people come up a
solution to use microchip of blood testing to ensure safety of livestock, which
improve the productivity in farming.
Business section
3.1 Vision
The company offers the microchip for farmers. The microchip can check the
blood of livestock and obtain the information of physical condition of livestock,
which helps the farmers to manage and improve the efficiency in productivity.
Thus the microchip is the good way to promote the development of agriculture,
which solves the shortage of food in the world and improve development of
economy.
3.2 Industry analysis
Force High/ Low justification
Buyer power low The microchip blooding-
test is technological the
product. “A computer
numerical control-
machined plexiglas-
based microchip module
was designed and
constructed for the
integration of blood
sample preparation and
nucleic acid amplification
reactions”(Yuen, Kricka,
Fortina, Panaro,
Sakazume& Wilding,
2001,p405). Thus the
choice is few.
Supplier power high “A simple microchip
device for DNA
extraction was
constructed based on
electrostatic interactions
between surface amine
groups and
DNA”(Nakagawa, Tanaka,
Niwa, Osaka, Takeyama
&Matsunaga ,2005,p.105
). The microchip of
blood-test involves some
techniques, which causes
the few choice for
organization, so the
supplier power is high.
Threat of new entrants high The industry of
microchip is not
completed and it is easy
for new competitors to
enter a market.
Threat of substitutes high The microchip of
blood test can be
alternated, since there
are many methods to test
blood. For example, “an
insightful evaluation of
the overall attractiveness
of the industry is
provided”(McAleer,
Alvarez-Icaza, Hall,
Plotkin, ,Scott & Davies,
2001).
Rivalry among existing
competitors
low The development of
microchip of blood test is
slow and the competition
is low. The microchip is
mainly use to test human
blood. “Doctors could
soon be able to test
patients for 100 different
conditions at once using
a disposable microchip
under development in
the UK”(Harris, 2012).
3.3 Customer and their needs
The company focuses on farming sector. So the farmers are our main customers.
The disease in farm animals cause direct the loss of economy. For example, “the
cost of the BSE epidemic in the United Kingdom has been high, both for control
measures and through lost trade£740 million in 1997”(Vourc’h, Bridges ,
Gibbens , De Groot, McIntyre & Poland,2006,p.22). Due to disease and death of
livestock, the farmers want to avoid and reduce these problems. Thus they need
a product to help them control and ensure safety of livestock. Furthermore, the
farmers also need to acquire good service after they buy the products.
3.4 The product and service
The company produces the microchips. The microchip is placed in the interstitial
tissue and it comes in contact with fluids in the body, which analyzes
concentrations of substances in the blood and is capable to send information to
computer. This method helps farmers to check the physical condition of
livestock. If the animals get diseases, the farmers quickly receive the information
and make measures to cure the animals, which reduce the death of farm animals.
In addition, the company provides the teaching service and repair service. The
employees will teach the farmers how to use the microchip and how to use the
computer to receive the date and analyze the consequence. If there is a problem
in microchip, the company also assigns the relevant maintenance staff to help
you solve the problem.
3.5 Suppliers and Partners
The equipment manufacturer and Vodafone are suppliers. The equipment
manufacture provides the device that the company can add their technique and
software into it. The Vodafone offers the internet service with the information
reception.
The IT Company and hospital are partners. The IT Company helps them to design
the software and update data. For example, the microchip is connected with the
computer and sends information to computer. There is software to analyze the
date and give accurate outcome. Thus the firm needs to cooperate with the IT
Company. The hospital will provide the data medicine. When farm animals are
found to have diseases, the hospital could treat the diseases, which avoid the
spreading and reduce the deaths.
3.6 Porter’s generic strategy
The company focuses on the narrow market. Since the microchip is used for test
blood of livestock, which is generally sold to farmers. Moreover, the price of
microchip is cheap. For farmers, they have many animals. If the price is high, they
will not afford. So the company needs to offer a flexible and reasonable price.
Thus the Porter’s generic strategy is focused low cost.
3.7 Value chain activity
The making the product and service is important. The microchip is invented to
check blood and help farmers to reduce the death of livestock, which improve
efficiency in productivity and promote the development of agriculture.
Furthermore, due to narrow market, the good product and service are
significant, which generates value for customers.
3.8 Business processes
There is a service process in business. For company, making a good service can
attract customers and has a positive effect on reputation. For example, the
company provides the teaching service for farmer, which helps farmers how to
use the microchip and save time of farmers. During the service process, farmers
feel comfortable because of friendly and positive attitude of staff. As a result,
farmers are willing to buy our products.
There is also a customer order process. According to order, the company can
analyze to produce how many products. If the order is less, the company needs
to consider to make new products or improve the quality of products. Thus this
process is essential for the company making the products.
3.9 Functionalities
The service process: Offer helps for customer
Satisfy the need of customer
The customer order process: Display the products for sale
Display the price
Calculate order total
3.10 Systems
There is a customer service system. The microchip is the technological product.
Farmer could not know how to use it and have some questions about products.
This system can provide guides and answer the questions, which improve the
customer satisfaction. For example, the microchip cannot run. The customer can
ask customer service system. Then there is a professional staff to help you to
solve the problem.
There is a customer order system. When customers want to order the products,
this system will introduce the function and price of products, which helps
customer make correct decision. In addition, this system can record the order
total, which shows the value and market demand. If the order is very large, it can
prove that the microchip can reduce the death of livestock and promote the
development of agriculture.
There is an inventory management system. When the company makes the
products, this system can easily store and manage the products, which do not
causes damages on the products. As a result, the company can reduce the cost
and improve the productivity.
3.11 Summary table
Value chain
activity
Key processes functionalities Specific
information
system
Broad
information
system
Make the
product and
service
The service
process
1.Offer helps
for customer
2.Satisfy
the need of
customer
customer
service system
Customer
relationship
management
customer
order process
1.Display the
products for
sale
2.Display the
price
3.Calculate
order total
customer
order system
Transaction
process
system
Conclusion
The company produces the microchip to help farmers to test blood of livestock,
which reduce the disease and death of livestock. During the producing and sale,
the information system helps the company to analyze the data and provide the
good process. It is beneficial method to manage and control organization to
deliver value.
Reference
Harris, S.(2012). Disposable microchip could simplify disease diagnosis.
Engineer(Online Edition),15.Retrieved from: http://www.theengineer.co.uk/medical-and-healthcare/news/disposab le-
microchip-could-simplify-disease-diagnosis/1014073.article
McAleer, J. F., Alvarez-Icaza, M., Hall, G., Plotkin, E. V., Scott, D., & Davies, O. W.
(2001). U.S. Patent No. 6,241,862. Washington, DC: U.S. Patent and
Trademark Office. Retrieved from: http://www.google.com/patents/US6241862
Nakagawa, T., Tanaka, T., Niwa, D., Osaka, T., Takeyama, H., & Matsunaga, T.
(2005). Fabrication of amino silane-coated microchip for DNA extraction
from whole blood. Journal of biotechnology, 116(2), 105-111. Retrieved
from: http://www.sciencedirect.com/science/article/pii/S0168165604005188
Yuen, P. K., Kricka, L. J., Fortina, P., Panaro, N. J., Sakazume, T., & Wilding, P.
(2001). Microchip module for blood sample preparation and nucleic acid
amplification reactions. Genome Research, 11(3), 405-412. Retrieved from: http://genome.cshlp.org/content/11/3/405.short
Vourc’h G, Bridges VE, Gibbens J, De Groot BD, McIntyre L & Poland R.(2002).
Clinical observations in detecting emerging diseases in farm animals.
Perspective, Volume 12 Number 2, 22-40.Retrieved from: http://dx.doi.org/10.3201/eid1202.050498