INTRODUCTION
The Organisation for Economic Co-operation and Development (OECD, 2015) released its report “Environment at a Glance 2015″ and listed New Zealand’s performance on waste as the worst out of the 34 member states. The report says that all municipal waste (the waste from households, towns, and cities) in New Zealand goes to landfill and that our recycling rates are very low. We then developed a fun solution that will motivate people to recycle more. Project: HiTech Bin, is an auto-sorting waste recycling bin which including reward features such as accumulating points to redeem coupons, hence resulting in a higher recycling rate.
2. BUSINESS SECTION
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2.1 Vision
To produce a sustainable and better futures for everyone by providing the most simple, convenient, and best recycling solution.
2.2 Industry Analysis: The recycle bin industry
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Buyer power: High
The competition in the industry is very high because many providers exist in this industry in New Zealand (Nelson environment Centre, 2014). The bargaining power of buyer is high as they can make their own choice.
Supplier power: Low
The number of suppliers able to provide sensor equipment and raw material used in manufacturing automated recycling machine is high. For example, A.E. Tilley Ltd (A.E. Tilley Ltd, 2016), Pioneer Engineering (Pioneer Engineering, 2016), Miltek NZ Ltd (Miltek NZ Ltd, 2016) and etc. Moreover, The quality of supplies being provided is relatively low such as metal, plastic, glass, and etc.
Threat of new entrants: Low
To join this industry you must apply for a license from your area’s council, eg in Auckland you must obtain a license for your business from the Auckland city council. A waste collector license is $440 (this includes one vehicle) and an additional vehicle fee, $88 per vehicle (Auckland Council, 2016). Hence, the barriers to entry in this industry are very high especially cost barriers.
Threat of substitutes: High
“Substitute such as a normal trash bin is priced more cheaper than a recycle bin because recycling operations are more resource-intensive, the customer must be willing to pay a higher price” (Barbara, 2014). “There isn’t any economic incentive for the customer to do recycle when landfill disposal is markedly cheaper” (Barbara, 2014). Threat of substitutes is high due to its relatively low substitutes price.
Rivalry among existing competitors: High
Competition is high in this industry because the number of players in this industry is high (Public Place Recycling Scheme, 2014).
Overall attractiveness of the industry:
Bargaining power of the buyer is high while that of the suppliers are low. Substitutes for the product are low. Barriers to new entry are high due to high investment in equipment and strict regulations. Competition among rivals is high. Hence, the recycle bin industry is overall not attractive.
2.3 Customers and Their Needs
Our target customer is aimed at everyone in all ages in New Zealand. We do not limit our target customer because if more people around the world recycled, it could help minimise the negative impact of pollution, including debris littered across land and water (Laurie, 2015).
Claims that recycling is inconvenient seem to be the top reason why some people do not recycle. It does take effort to recycle items (Green Route Festival, 2013). Moreover, people find it is too hard to recycle as here are so many different facets to recycling that it is hard to decipher what goes where (Care2, 2011). Also, some people do not recycle because they feel they should be paid for it since it does take some work (Green Route Festival, 2013). Therefore, people are looking for a way to make recycling more convenient and simple.
2.4 The Product and Service
Our product: HiTech Bin is a single-stream recycling bin that comes with an auto-sorting feature. This particular feature will make recycling become more convenient and simple.
With single-stream recycling, recyclables go into one bin. The bin will then sort out the rubbish itself through a scan sensor and differentiate them into seven categories (dedicated slots) which are cardboard, paper, glass, hazardous, compost, plastic, metal. People can just simply throw rubbish inside the bin and no longer need to decipher which kinds go where as the bin will do it.
Moreover, HiTech Bin is providing a reward feature. People can accumulate points through using HiTech Bin and hence be able to redeem coupons. It is just a small incentive for recycling. This special feature will encourages people to recycle more.
2.5 Suppliers and Partners
Our first supplier would be A.E. Tilley Ltd (A.E. Tilley Ltd, 2016), which has been a leading contractor and supplier of sheet metal products to a variety of industry sectors in New Zealand. We would buy the raw material from A.E. Tilley Ltd such as perforated metals used in manufacturing HiTech Bin. Besides, OMRON would be our second supplier. From micro-relays to advanced sensors, OMRON (OMRON, 2016) offers the industry's most complete line of advanced, high-quality products. We would buy a scan sensor and build inside the bin in order to sort out the waste.
Our first partner would be Recycle.co.nz (Recycle.co.nz, 2016). Hitech Bin would be sponsored by Recycle.co.nz in order to achieving zero-waste status. Moreover, our second partner would be Countdown (Countdown, 2016), which is New Zealand’s leading supermarket brand. Through providing countdown discount coupon for HiTech’s customer, both of us could get mutual benefit. Countdown will have more sale whereas HiTech Bin will gain more customer.
2.6 Strategy: Broad Differentiation strategy
The competitive scope for HighTech Bin is broad, as we do not focus on a particular group in the market. Overall our product can be used by all ages and genders. This includes restaurants, supermarkets, households, office, universities, and etc.
The source of competitive advantage is differentiation as we have two special features which are auto-sorting feature and reward feature. Those features make recycling more convenient and currently not provided by other competitors in the industry.
The overall strategy is therefore broad differentiation strategy.
2.7 Value Chain Activity: Technology Development
The most important value chain activity for this business is Technology Development.
We have an entire division solely dedicated to exploring new recycling machines using new technologies in creative ways. Project:HighTech Bin will meet its vision by being up to date with the needs of this large market and featuring engaging activities that meet its requirements. This will be done through ongoing research in how new products are developed and designed, and process automation.
HighTech Bin therefore will be invented in order to provide the most simple, convenient, and perfect recycling solution while educating the community on the ease and benefits of recycling.
2.8 Business Processes
2.8.1. New Product Development process - To improve collaboration between various functions related to new product development to shorten the development cycle. It is important because a failure to make a one-dollar change during product design would probably cost $100,000 to fix later in manufacturing.
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2.8.2. Prototype Designing process – To encourage collaboration. It can get everyone involved early in the process. Our clients and employers can have a rough preview of what we are going to build for them, and they can provide us with feedback and decisions before we make big commitments that would take a lot of time to revise later on. Our teammates can offer feedback and share their concerns before the design is finished.
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2.9 Functionalities
2.9.1. New Product Development process
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Highlight the target market
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Check whether the new product will be profitable
2.9.2. Prototype Designing process
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Visualise prototype
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Access need for project
2.10 Systems
System 1: Sisense system
Description:
Provides a complete solution for preparing, analysing and visualising big or disparate datasets.
Business focus:
While developing a new product, we can analyse our business using Sisense system. It supports us in making a detailed marketing strategy which highlighting the target market, product positioning and the marketing mix that will be used. We then can identify whether there is a demand for the product and whether the new product will be profitable. Through these, we could develop the best product for customer.
Technical Focus:
Sisense system puts Big Data analytics on a chip. It provides a variety of dashboard widgets to pinpoint the best visualisation for data, such as: geographical maps, gauges to measure KPIs, line charts to determine trends, scatter plots to see correlations, and pie charts for clear comparisons. It helps business management users to query big data with a natural language interface and allows non-technical users to join and analyse large data sets from multiple sources.
Broad system Type:
This is a Decision Support System (DSS) because business users and analysts should be able to freely explore their data through Sisense system and supports business or organisational decision-making activities.
System 2: Arena PLM system
Description:
Provides a collaborative environment for centralising, controlling, and analysing complex and constantly changing product information.
Business focus:
We could use this collaborative environment to access need for project. Also, by using Arena PLM system, we could share our information and thoughts in order to visualise a correct and valid prototype product. A great prototype would increase probability of success in final product. Therefore, we could develop the best product for customer.
Technical Focus:
Arena PLM system is focus on the Internet of Things. Arena PLM, a single cohesive development-to-production platform which conjoins QMS for high tech products that contain electronic, mechanical, and software components speeds them along their way to collapse their time to market. Also increases speed of prototyping, reduces scrap, and streamlines supply chain management.
Broad system Type:
This is a Collaboration System because it supports the work of teams by facilitating the sharing and flow of Information.
CONCLUSION
HiTech Bin utilises information systems and technology to create substantial value out of wasted resources and waste, while producing a sustainable and positive future for New Zealanders. By introducing Hitech Bin to the recycle bin industry, the market will realise a convenient, simple, and perfect solution to their problems. The system we will be used such as Sisense and Arena PLM will speed up this process and yet still be efficient and reliable.
REFERENCES
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Auckland council. (2016). Solid waste licensing. Retrieved from http://www.aucklandcouncil.govt.nz/EN/AboutCouncil/allfees/Pages/watedisposal.aspx
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A.E. Tilley Ltd. (2016). ABOUT. Retrieved from http://aetilley.co.nz/about/
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Barbara, N. (2014, September 23). Exploring the Economics of Recycling. Waste Advantage. Retrieved from https://wasteadvantagemag.com/exploring-economics-recycling/
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Care2. (2011). 5 Reasons Why People Don’t Recycle and 5 Reasons They Should. Retrieved from http://www.care2.com/greenliving/5-reasons-why-people-dont-recycle-and-5-reasons-they-should.html
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Countdown. (2016). Our company. Retrieved from https://www.countdown.co.nz/about-us/our-company
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Green Route Festival. (2013). Why People Do Not Recycle and the Reasons Why They Should. Retrieved from http://greenroutefestival.com/2013/11/15/why-people-do-not-recycle-and-the-reasons-why-they-should/
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Laurie L. (2015, June 1). What if everyone in the world recycled?. HowStuffWorks.com. Retrieved from http://science.howstuffworks.com/science-vs-myth/what-if/what-if-everyone-in-world-recycled.htm
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Miltek NZ Ltd. (2016). Mil-tek New Zealand - Recycling Balers & Compactors. Retrieved from http://www.miltek.co.nz/
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Nelson environment Centre. (2014, January 15). Waste Education Services Recycling Bin Suppliers. [Brochure]. Retrieved from http://www.nec.org.nz/wp-content/uploads/2014/05/WES-Recycling-Bin-Suppliers-Guide-Jan-2014.pdf
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OECD. (2015). Environment at a Glance 2015: OECD Indicators. OECD. Retrieved from http://www.keepeek.com/Digital-Asset-Management/oecd/environment/environment-at-a-glance-2015_9789264235199-en#.V_ReEfmrhBc#page52
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OMRON. (2016). About Us. Retrieved from http://www.omron-ap.co.nz/about_us/main.asp
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Pioneer Engineering. (2016). ABOUT US. Retrieved from http://www.pioneerengineering.co.nz/about.aspx
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Public Place Recycling Scheme. (2014). LOVE NZ Guide to Selecting and Positioning Recycling Bins. [Brochure]. Retrieved from http://www.recycling.kiwi.nz/files/9814/1333/2814/e-LNZ_recycling_bin_guide_2014.pdf
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Recycle.co.nz. (2016). Why Recycle. Retrieved from http://recycle.co.nz/problemsize.php
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WWF. (2014, September). Living Planet Report 2014 Summary. WWF. Retrieved from http://www.footprintnetwork.org/images/article_uploads/LPR2014_summary_low_res.pdf
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