POSTGRADUATE DIPLOMA IN BUSINESS

             APMG 8119: DIGITAL ENTERPRISE – 2012

             ASSIGNMENT 2: COMPANY BUSINESS MODEL
             ANALYSIS

              REPORT PREPARED FOR: NZ BUS SERVICES



             ASSOCIATE PROFESSOR: ROBERT DAVIS




ASSIGNMENT PREPARED BY:
                     GARIMA KASHAP
                     1403384
•   Public Transport – Urban
                    •   10,000 buses
                    •   19,00 staff
                    •   Infratil Ltd. took over in 2005
                    •   50 million customers every year

Partners of NZ Bus – NZ Transport Agency , Auckland Transport, Greater Wellington Regional
Council, Northland Regional Council, Bus and Coach Association, Ministry of Transport, ADL
(Alexander Dennis Limited), Snapper




NZ Bus Services- Company Profile
1) Reasons for Buses to take over road
     a) More Cars - Expensive Fuel
     b) Less Space on roads due to every individual with a car

Therefore, Buses are
     a) Low cost
     b) Flexible means
     c) Environmental Factors
     d) Accidental Factors




    Better Ways to Urban Mobility
Risks in Revenue
                                                                                               Generation
Year to 31 March           2012          2011         2010         2009           2008         •Registration of
Passengers North           38,713,136    36,475,026   34,448,919   39,958,541     36,648,393
                                                                                                 vehicle
Passengers South           20,341,102    20,359,263   20,090,368   20,018,724     19,723,961
                                                                                               •Certificate of
Bus distance travelled     46.4m         47.4m        47.0m        44.6m          44.6m          Authority
(million kms)
Bus numbers                1,102         1,068        1,036        1,072          1,084        •Insurance
Passenger income           $127m         $117m        $107m        $130m          $119m
Contract income            $84m          $80m         $83m         $88m           $77m         •Competitors
Earnings EBITDAF           $46m          $40m         $29m         $40m           $39m
                                                                                               •Mechanical
Capital spending             $64m          $17m          $15m         $42m        $44m
                    Fig: 1 – Table showing the Financial Summary of the company
                                                                                                  Check Up



  Revenue analysis of the Company
•Online Costs                                              Offline costs –
           Recurring Cost –        Fixed Costs-                  Expenses incurred to buy new buses
           Domain Name              Software Cost                Staff salary
           Hosting                  Web Designing Cost           Bus Registration and taxation charges
           PayPal Commissions       Company logo                 Fuel Charges
           Affiliate commission     Branding cost                Maintenance charges
           Newsletter costs         Systems           cost       Expenses on Telephone and internet bills
           Online Backup of the     (Computer/ laptops)          Need to study a lot from the sources like books to
           computer data                                         gain knowledge for being competitive in the
                                                                 business




                                  Cost Analysis
Internal Organization Perspective

   Process and Relationships
   Value created by exchange of roles
   and relationships

External Organization Perspective
    Customers
     Intermediaries
    Stakeholders
    Suppliers




Value Creation Analysis of the Company
Computers; Marketing Friendly
Company’s own Site
Secured money Transaction
Inspiration and Motivation- Staff
Present Activities Effecting Online Purchases
Hop Card in Auckland
Snapper Card in Wellington




 Adoption to e-business
Snapper Mobile works with five pieces of technology together they are:
The Snapper applet – it performs the payment and transport functions for Snapper mobile. It is used on all other next generation (Java) Snapper cards.
Touch2PaySim – The Snapper applet needs to be securely issued to a physically secure part of your phone. The best place for that is the Touch2PaySIM.
The Touch2Pay SIM is an NFC compatible USIM.
Industry-standard smart phones – In order for Snapper Mobile to operate with fully functionality (Touch2Pay and the Snapper Mobile application), a
smart phone with the following minimum specification is needed:
                      NFC - to allow the phone to communicate with other contactless devices (Snapper readers, other Snapper cards)
                      Single Wire Protocol - this allows the Snapper applet, issued to the Touch2Pay SIM to respond to NFC requests for
                                                                   payments and reload
                      Open SIM Alliance - the allows the Snapper Mobile Android app to communicate with the Snapper applet on the
                                                                       Touch2Pay SIM
                      Gingerbread or Ice Cream Sandwich - these Android operating systems support NFC and are the minimum required
                                                                     for Snapper Mobile
Snapper payment network - The Snapper payment network supports both native and next generation (Java) based Snapper devices, including Snapper
Mobile. You can use the full range of functionality of the Snapper payment network including all public transport and retail payment terminals. You can
also use the top-up functions including retail and kiosk top-ups, or the Snapper Feeder.
Snapper Server - A number of the functions performed by Snapper Mobile need centralized management. Pass sales, registration, top-ups and transfers
are all managed by the Snapper server which needs your smart phone to connect either via 3G or Wi Fi (Snapper, n. d.)




             Adoption to e-business
Digital
https://mail.google.com/mail/u/0/?shva=1#inbox/13a049a7b8f6
ec6e




                Thanks for your precious time
Ficurma (n.d.) The Good, the Bad and the Ugly About Charter Bus Service Risks
 (reference MDOT, About Chartering a Bus)
Retrieved from http://www.ficurma.org/misc/GOODBADUGLY.pdf
Infratil, (n.d.-a) shareholders Retrieved from http://www.infratil.com/for-investors/shareholder-information/shareholder-faq/
Infratil, (n.d.-b) Retrieved from http://www.infratil.com/our-businesses/public-transport/nz-bus/profile/
Infratil, (n.d.-c) Retrieved from Fig 1 Source: http://www.infratil.com/our-businesses/public-transport/nz-bus/financial-summary/
Snapper, (n.d.) Retrieved from https://www.snapper.co.nz/
Startupdesi (n.d.) How much does it cost to run a website based business? May19, 2010 Chandoo in Money matters Retrieved
fromhttp://startupdesi.com/costs-of-running-web-business/
 The NZ Bus, (n.d.–a) about the company Retrieved from http://www.nzbus.co.nz/our-company
The NZ Bus, (n.d.-c) the associate Partners of the company Retrieved from http://www.nzbus.co.nz/our-partners
The NZ Bus, (n.d.-d) the ADL Retrieved from http://www.nzbus.co.nz/ADL
The NZ Bus, (n.d.-e) the Snapper retrieved from http://www.nzbus.co.nz/Snapper
The NZ Bus, (n.d.-b) the history of the company Retrieved from http://www.nzbus.co.nz/our-history




                         Referencing

Assignment 2 (8119)

  • 1.
    POSTGRADUATE DIPLOMA INBUSINESS APMG 8119: DIGITAL ENTERPRISE – 2012 ASSIGNMENT 2: COMPANY BUSINESS MODEL ANALYSIS REPORT PREPARED FOR: NZ BUS SERVICES ASSOCIATE PROFESSOR: ROBERT DAVIS ASSIGNMENT PREPARED BY: GARIMA KASHAP 1403384
  • 2.
    Public Transport – Urban • 10,000 buses • 19,00 staff • Infratil Ltd. took over in 2005 • 50 million customers every year Partners of NZ Bus – NZ Transport Agency , Auckland Transport, Greater Wellington Regional Council, Northland Regional Council, Bus and Coach Association, Ministry of Transport, ADL (Alexander Dennis Limited), Snapper NZ Bus Services- Company Profile
  • 3.
    1) Reasons forBuses to take over road a) More Cars - Expensive Fuel b) Less Space on roads due to every individual with a car Therefore, Buses are a) Low cost b) Flexible means c) Environmental Factors d) Accidental Factors Better Ways to Urban Mobility
  • 4.
    Risks in Revenue Generation Year to 31 March 2012 2011 2010 2009 2008 •Registration of Passengers North 38,713,136 36,475,026 34,448,919 39,958,541 36,648,393 vehicle Passengers South 20,341,102 20,359,263 20,090,368 20,018,724 19,723,961 •Certificate of Bus distance travelled 46.4m 47.4m 47.0m 44.6m 44.6m Authority (million kms) Bus numbers 1,102 1,068 1,036 1,072 1,084 •Insurance Passenger income $127m $117m $107m $130m $119m Contract income $84m $80m $83m $88m $77m •Competitors Earnings EBITDAF $46m $40m $29m $40m $39m •Mechanical Capital spending $64m $17m $15m $42m $44m Fig: 1 – Table showing the Financial Summary of the company Check Up Revenue analysis of the Company
  • 5.
    •Online Costs Offline costs – Recurring Cost – Fixed Costs- Expenses incurred to buy new buses Domain Name Software Cost Staff salary Hosting Web Designing Cost Bus Registration and taxation charges PayPal Commissions Company logo Fuel Charges Affiliate commission Branding cost Maintenance charges Newsletter costs Systems cost Expenses on Telephone and internet bills Online Backup of the (Computer/ laptops) Need to study a lot from the sources like books to computer data gain knowledge for being competitive in the business Cost Analysis
  • 6.
    Internal Organization Perspective Process and Relationships Value created by exchange of roles and relationships External Organization Perspective Customers Intermediaries Stakeholders Suppliers Value Creation Analysis of the Company
  • 7.
    Computers; Marketing Friendly Company’sown Site Secured money Transaction Inspiration and Motivation- Staff Present Activities Effecting Online Purchases Hop Card in Auckland Snapper Card in Wellington Adoption to e-business
  • 8.
    Snapper Mobile workswith five pieces of technology together they are: The Snapper applet – it performs the payment and transport functions for Snapper mobile. It is used on all other next generation (Java) Snapper cards. Touch2PaySim – The Snapper applet needs to be securely issued to a physically secure part of your phone. The best place for that is the Touch2PaySIM. The Touch2Pay SIM is an NFC compatible USIM. Industry-standard smart phones – In order for Snapper Mobile to operate with fully functionality (Touch2Pay and the Snapper Mobile application), a smart phone with the following minimum specification is needed: NFC - to allow the phone to communicate with other contactless devices (Snapper readers, other Snapper cards) Single Wire Protocol - this allows the Snapper applet, issued to the Touch2Pay SIM to respond to NFC requests for payments and reload Open SIM Alliance - the allows the Snapper Mobile Android app to communicate with the Snapper applet on the Touch2Pay SIM Gingerbread or Ice Cream Sandwich - these Android operating systems support NFC and are the minimum required for Snapper Mobile Snapper payment network - The Snapper payment network supports both native and next generation (Java) based Snapper devices, including Snapper Mobile. You can use the full range of functionality of the Snapper payment network including all public transport and retail payment terminals. You can also use the top-up functions including retail and kiosk top-ups, or the Snapper Feeder. Snapper Server - A number of the functions performed by Snapper Mobile need centralized management. Pass sales, registration, top-ups and transfers are all managed by the Snapper server which needs your smart phone to connect either via 3G or Wi Fi (Snapper, n. d.) Adoption to e-business
  • 9.
  • 10.
    Ficurma (n.d.) TheGood, the Bad and the Ugly About Charter Bus Service Risks (reference MDOT, About Chartering a Bus) Retrieved from http://www.ficurma.org/misc/GOODBADUGLY.pdf Infratil, (n.d.-a) shareholders Retrieved from http://www.infratil.com/for-investors/shareholder-information/shareholder-faq/ Infratil, (n.d.-b) Retrieved from http://www.infratil.com/our-businesses/public-transport/nz-bus/profile/ Infratil, (n.d.-c) Retrieved from Fig 1 Source: http://www.infratil.com/our-businesses/public-transport/nz-bus/financial-summary/ Snapper, (n.d.) Retrieved from https://www.snapper.co.nz/ Startupdesi (n.d.) How much does it cost to run a website based business? May19, 2010 Chandoo in Money matters Retrieved fromhttp://startupdesi.com/costs-of-running-web-business/ The NZ Bus, (n.d.–a) about the company Retrieved from http://www.nzbus.co.nz/our-company The NZ Bus, (n.d.-c) the associate Partners of the company Retrieved from http://www.nzbus.co.nz/our-partners The NZ Bus, (n.d.-d) the ADL Retrieved from http://www.nzbus.co.nz/ADL The NZ Bus, (n.d.-e) the Snapper retrieved from http://www.nzbus.co.nz/Snapper The NZ Bus, (n.d.-b) the history of the company Retrieved from http://www.nzbus.co.nz/our-history Referencing