Name Wei TangNetID Wtan660Group Number: 307Website Link: http://infosys110groupxxx.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