Assignment 2 Introduction to Business Information Systems Carmel Hurley 2018 PDF

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Download Assignment 2 Introduction to Business Information Systems Carmel Hurley 2018 PDF

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INF 10003: Introduction to Business Information Systems Assignment 2: Business Scenario Report Chosen Business: Eco Homes

EXECUTIVE SUMMARY Eco-Homes is a house design company based in Melbourne in the building industry with a strong focus to advocate for energy efficiency and sustainability design through it vision to be one with the environment rather than deplete the environment. This report was based on this business following selecting from four possible business scenarios provided. The purpose was to provide an analysis of the business model utilising tools of both a SWOT and Porters five forces analysis to understand how this business is based competitively in the market place. From the information available and analysis of the information the following was determined: 

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The company personal currently lack the skills to navigate and engage with consumer base due to primarily engagement via technology including internet- based platforms The industry continues to grow with consumer demand with potential to expand to meet the needs The company needs to explore and develop strategic direction of future direction and growth goals

TABLE OF CONTENTS

Executive Summary 1 Table of Contents 2 Introduction 3 PART A Industry background 4 Business model and environment 5 Value Proposition 5 SWOT analysis 6 Porters five forces analysis 7-8 Table creation and discussion 9 Part B Website portal prototype Main Home page 10 Product page 11 Purchase confirmation Page 11 Design review and justification 11 Usability 12 Conclusion 13 Appendix 14-15 References 16

INTRODUCTION Eco-Homes is a Melbourne based sustainable home design business. The business has evolved out of the founder, Steve Jenkins dream to pursue his vision of “Developing Sustainable Environments”. The business maintains a mission statement “To adapt and be one with the environment”. Eco-Homes has been awarded both National and State awards recognising the business in design elements focusing on energy efficiency and sustainable design. This report will provide insight based on the business scenario provided, an industry evolution research as well to support an evaluation of the business. The evaluation will include industry background, an overview of the business model and environment. This report included a value proposition, as well as SWOT analysis of Eco-Homes strengths, weaknesses, opportunities and threats. The report will also identify some of the factors impacting on the company’s performance through the adoption of the Porters five forces analysis tool. The report includes data of the business sales, a prototype of a website focusing further on some of the usability functions as well as some possible customer engagement tools which may enhance future sales.

PART A EVALUATION OF BUSINESS INDUSTRY BACKGROUND The “green building” concept has been around for hundreds of years with building designers using local and raw natural materials in construction of buildings and with consideration of factors including wind, water, sun and ground of how these would affect building structures into the future. However, may not have been considered, was how the building industry footprint would affect the environment. In Australia, during the Sydney Olympics in 2000, the building industry saw worldwide recognition of Australia’s ability to design establish and demonstrate green building development for the event. Soon after this, in 2002, we saw the emerging “Green Building Council of Australia “focused on determining building market green building best practise and standards. Since this time many developers and builders have embraced and advocated for the adoption of more environmentally friendly, sustainable building methods to not only reduce environmental impact but also reduce associated costs in materials and energy cost. Eco -Homes developed out of the company’s, Managing Director vision to develop sustainable environments and minimise the effect on the environment, it is one of multiple companies in Australia also trying to impact and change the way Australians build homes.

BUSINESS MODEL AND ENVIRONMENT Eco- Homes business model is aligned with the category of design in manufacturing that sells directly to the customer aimed at meeting their individual needs, also known as the B2C model. With the emergent of new technology into the market place in the 1990’s, companies like Eco- Homes face the ongoing challenge to keep abreast of the online market. There are five online B2C business models that business use online to target consumers: Direct sellers, online intermediaries, advertising based B2C and community-based model. Eco Homes would be considered as Direct sellers: The most familiar kind of model, where people buy goods from online retail sites. These can include manufacturers or small businesses that sell products from different manufacturers.

VALUE PROPOSITION Eco-Homes markets itself as a leader in the environmental friendly house design in the pursuit of minimising environmental impact in the residential sector. The business focuses on developing a partnership with customers in the design and construction of homes that meet the customer needs. A strong focus is on optimising the customer benefit against water and energy cost increases and resource shortages using a range of rainwater collection, alternative power sources, grey water recycling, solar hot water and water efficient landscaping making their designs meet the energy performance levels of 6 Star Rated design.

SWOT ANALYSIS Strengths  Government increasing recognition of building industry role and need to encourage and regulate for improved building energy efficiency and performance.  The company alignment with Building Code of Australia (BCA) mandatory minimum building energy performance standards  As Australians become more environmentally conscious, demand in market increase  The company portfolio and experience as well a recognised awards industry Opportunities  Expansion in promotion of Excellence in Cost effective Solutions.  Government subsidies for business in sustainable solutions  Further demand based by customer searching for efficiency / sustainable building solutions and decrease operational costs of homes into the future  Addressing the Myth about costs for constructing green buildings  Possibility to expand into a collaborative learning environment for building design, in mentorship / education / trade engineering, building and construction for trade students

Weaknesses  Lack of Individual employee computer experience to interface in modern technology limiting exposure / marketing to potential customers  Reliance on customer preferred builder relationship to progress development of home

Threats  Competition in growing industry market  Potential government industry legislation changes  Reliance of customer focus on company mission statement

Utilising the SWOT above demonstrates both extensive strengths and opportunities to expand the company further with staff skill development needed to maintain a presence in the market modern world of technology and keep up with industry competitors to engage customers to choose Eco-Homes versus competition .It is worth noting that company information provided did not extend to providing future direction or strategic vision for the company to explore in detail .

PORTERS FIVE FORCES ANALYSIS “According to Porter, to be effective the organisation goals, objectives, culture and activities must be consistent with the organisations strategy “(2017 Moore& Vargas)

Force Bargaining power of suppliers

Bargaining power of consumers

Competitive rivalry

Threat of new competitors

Defining the Impact on Business As a small business in growing market Ecohomes does not have buying power of industry links that larger know builder / design companies have Consumer determines builder of house for ecohomes to work with design Consumer has many choices of service including builder/ designer combinations versus reliance on consumer linking Increasing number of “green “focused building designers entering market utilising technology to engage consumer with greater focus on cost savings for the consumer versus environmental impact which may not be consumer driving sales closer Overhead cost relatively low with potential for alternative service entering market likely

Level of influence on the business Med

High

High

High

Threat of substitutes

particularly with increasing focus of efficiency and sustainability Threat of larger companies diversifying into the “green market “and offer more streamlined services for consumer benefit is possible but still unknown

Med

(2017 Moore& Vargas)

Utilisation of the both Porters analysis and the SWOT analysis provides insight into the company’s threats including competition, government rebates, material costs and customer power and reliance on relationships with both customers and industry builders.

TABLE CREATION AND DISCUSSION

The data set provides opportunity to understand trends of most popular designs, including materials preferred and sizing of home designs being sold in a period of twelve months. From the data, of the 79 homes sold, the most sales units were that of the Noosa Grand enviro panel design with six sold during the period.

PART B WEBSITE PORTAL PROTOTYPE Main Home page

Product page

Purchase confirmation Page

Design review and justification The prototype website has been designed with the lay-out, format and font size consistent throughout the pages of the site. The headings contain various selections for the customer including services offered, design options, About Us, Contact us, benefits of renewable energy and previous customer testimonials as well as industry links. The clear headings help the customer to navigate and interface with the web -page Usability Consumers can select from a variety of house construction designs simply by clicking on the “design online purchasing” link. From this point, options of material to be used, styles of home, size, number of bedrooms, number of bathrooms, number of levels is determined. Consumers have access to click back if wanting to alter/ change choices by clicking the “back button “or by simply clicking the “home” icon as this will direct back to main page.

The inter-face of the drop-down links on the left-hand side of the page allows the consumer to seek further information about the company, see virtual tours of design houses as well further information about the benefits of renewable efficient home design. Once the consumer has made selections on the website they proceed to the order stage, the confirmation of the order with details selected is provided including the customer contact details and confirmation that a salesperson will make direct contact with-in 24 hours which provides the customer assurance the order is moving towards their dream energy efficient home becoming a reality

CONCLUSION

APPENDIX: Eco-Homes are leaders in integrated sustainable design with 20 years’ experience and 10 National and State awards for energy efficiency and sustainable design. Let us design you a home that is beautiful, knowing that you will enjoy a degree of independence against present and future water and energy cost increases and shortages. Our speciality is giving you a home that is super comfortable and exceeds the energy performance levels of 6 Star Rated design with the choice of rainwater collection, alternative power sources, grey water recycling, solar hot water and water efficient landscaping. We can also support you during construction by working closely with your builder to maximize a smooth flowing process. We also consult with architects and building designers on integrating energy efficient design and sustainable systems. Company details H Q: Eco-Homes 21 Titan Ave Carrum Downs, 3970 Telephone: (03) 9555 7777 Mobile: 0417 5620984, Facsimile: (03) 9555 7778, Email: [email protected]

About us Steve Jenkins is the managing director of Eco-Homes. He studied at the University of Technology, Launceston, and graduated with a bachelor’s in civil engineering. During his extensive working semesters, Steve was exposed to many design and construction aspects of the commercial, industrial and civil sectors. It was during this 'break-in period' that Steve became disenchanted with the indiscriminate over specifying, overuse and 'over waste' of materials without regard for the consequential impact on the finite resource depletion. This led him to tackle a much needed and praised two-hundred-page thesis on "ECO Homesa current state analysis of the built environment and an ecological alternative". Since his graduation, Steve has undertaken a pro-active role in researching and implementing means of minimising environmental disruption and degradation in the residential sector. In 1996, ECO Homes became the means of pursuing Steve’s vision of Developing Sustainable Environments. Many beautiful Eco homes have now been designed, engineered and built exclusively by Eco Homes. Business details Steve Jenkins: Managing Director - Age: 45 

Owner and founder of “Eco-Homes”.

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Not computer savvy but can use them if necessary.

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No real Internet experience apart from general surfing.

Annabelle Swartz: Client Manager - Age: 41 

Graduate business student.

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Uses computers frequently.

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Has completed customer relations courses.

Charles Chang: Principle Architect - Age: 36 

Qualified Architect (Melba Uni).

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Uses computers frequently.

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Limited knowledge of e–business.

Mia Ridgeway: Land and Environment Advisor - Age: 33 

TAFE graduate –Horticulture.

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TAFE graduate –alternative power.

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Fluent user of computers, currently studying e–business.

Nathan Swanson: Builder - Age: 51 Antonio Gonzalez: Apprentice Builder - Age: 19

Guy Stillwater: Electrician - Age: 27 And various contract employees.

REFERENCES:

Martin, M 2017, 'Porter's five forces: analysing the competition', Business News Daily, . Moore, C & Vargas, N 2017, Introduction to Business Information Systems, Pearson Australia, Sydney, pages 21-23. https://www.gbca.org.au/uploads/170/34474/A_decade_of_green_building_.pdf https://www.investopedia.com/terms/b/btoc.asp https://www.austrade.gov.au/ArticleDocuments/2814/Australian-Green-BuildingOverview.pdf.aspx Images: https://commons.wikimedia.org/wiki/File:Brighton_Earthship.JPG 2015, http://www.eec.org.au/events/webinars#/webinars https://en.wikipedia.org/wiki/Earth_house...