Xerox Hong Kong Sales Activity Management Process SAMP Thursday

Xerox Hong Kong: Sales Activity Management Process(SAMP) Thursday May 21 st, 2009 Sunny Chohan Marc Duprat Jen Gustafson Tiffany Koberstein Dustin Springett Robert Tetrault

Outline 1. 2. 3. 4. 5. 6. 7. 8. Xerox – The Organization XHK Organizational Problems Information Aspect of Problems (cont’d) Alternatives Analysis Solution Messages for Modern Leader

1. Xerox: The Organization 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

Xerox: The Organization Business Type • 1938 – Charles Chester created first xerographic image • 1947 – The Haloid Company acquired rights eventually resulting in “Xerox” machines • 1960’s – Xerox Hong Kong (XHK) established • 2008 – Profits of ~17. 6 billion • Products include publishing systems, copiers, printers, scanners, fax machines, document management software, etc

Xerox: The Organization C’td Market Position • By 1980, market share was <50% • By 1997, losses reversed by implementing total quality management • Strong focus on customer care • Heavy investment in R&D • XHK: leader in local market, with 17% market share • Better service, flexible financing, and total satisfaction guaranteed

Xerox: The Organization C’td Organizational Design • Currently 57, 100 Xerox employees worldwide • By 1997, XHK employed 500 people • Sales department organized into 3 major groups: • (1) Systems • (2) Key Accounts • (3) General Accounts • Telemarketing, Nominated Accounts, Major Accounts, & Educational Accounts

2. XHK Organizational Problems 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

XHK Organizational Problems • Operational Problems • Poor internal communications strategy • Management over-involved • Reports and meetings consume ~1/3 of each sales reps’ time • Paper documentation inefficient • Equipment inefficiencies • 1 computer per 2 sales reps • 3 printers • Untimely access to new hardware/software • Human resource inefficiencies • Accounts moved amongst staff yearly • Began to fill positions on NA and MA teams with inexperienced workers

3 -4. Information Aspect of Problems 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

OSCARR customer database • Shared with Xerox Australia and located in Australia • 25% of information was obsolete (data not recorded/mishandled/outdated/duplicated inconsistently) • Reps, engineers and managers were not allowed to modify customer information directly – was read only • Only one person could enter the data, and there was 1 -year backlog for changes to be made • When a sales Rep left the company, the information was lost

IS/IT Aspect of Problem Information Management • XHK used other databases (Electronic Client Profile) but it was not accessible or linked to OSCARR • Communication between databases relied on paper • IT responsibilities were outsourced to AIS (only 2 inhouse IT employees), which presented numerous problems: -no hardware/software changes without AIS consent -lengthy delays to get simple things done (new phone) -IT projects were behind schedule -AIS does not understand the needs of XHK

IS/IT Aspect of Problem Resulting IT/IS Problems -Problems often occur when scheduling meetings/service calls/client follow-ups -Only sales reps get access to client profiles -Lack of efficient day planner system made reps miss important deadlines -Hierarchy of XHK was not flat -Reps were not using email and were weary of technology

IS/IT Aspect of Problem Resulting IT/IS Problems Poor systems support to distributing business -Off-site sales reps did not have access to timely info -Managers could not monitor sales reps’ activity in real -Wrong machines get sent to wrong clients -Clients not able to check in during day with manager

5. Alternatives 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

Alternatives Alternative 1: • Do nothing – Keep the current SAMP

Alternatives Alternative 2: • Implement full digital SAMP system • Paperless system • Develop in-house without help of AIS (Automated Information Systems) • Develop in cooperation with AIS • Pay to license existing SAMP from Xerox Corporate Office for software only available in English

Alternatives Alternative 3: • Hybrid model • Implement digital SAMP system while keeping part of the process done by the old method

6. Analysis 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

Analysis Pros and cons for each alternative: • Alternative 1 (Do nothing) – Pros • No large investment • Saves time and money (short-term) • No competitors have full digital SAMP

Analysis • Alternative 1 (Do nothing) – Cons • Current OSCARR system has 1 year backlog for updating customer information • Management time not spent on value added activities – much is spend on monitoring sales associates • Worker morale – 8 am – 9 pm. Office is full until 7 pm usually in part due to lack of efficiency in sales process • Customer service quality – difficult for sales staff to keep track of customer details on paper based system • Security issues

Analysis • Alternative 2 (Implement Digital SAMP) – Pros • Improved customer service quality • Enhanced productivity • Improved Security • Management can focus on value added activities • Flatter, lean organization • Increased level of distribution in sales staff and IS • Host-based hierarchy or hybrid enterprisewise system

Analysis • Alternative 2 (Implement Digital SAMP) – Cons • Designing system • Lack of management support • Expensive • Lack of computer literacy among sales staff • Organizational culture and business culture in Hong Kong doesn’t support implementation • Large IT projects are risky

Analysis • Alternative 3 (Implement Hybrid Digital SAMP) Pros & Cons • Many pros and cons the same as two other options • Pros • Eases staff into IS change • Less initial cost (less training and IT implementation) • Cons • Mixed signal to staff • Could create design problems

7. Solution and Advantages 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

Solution and Advantages External Factors: Internal Factors: • Improved technology • Increased competition • Inexperienced salespeople • Hands-on management Full paperless SAMP

Solution and Advantages Key advantages: • Increased efficiency, effectiveness, accuracy • Reduced costs • Integrated teamwork • Good fit with Xerox corporate direction

XHK’s Chosen Solution In 1999, Xerox implemented: Chrisles 1. I. II. III. Oracle – Inventory, order entry, general ledger, A/R Tesserac- Managing service information Abacus- Billing and customer information Critical Business Information 1. I. Marketing Database

CBI - Pros Sales agents are able to track their work Managerial analysis of the entire database is quick and cheap The data entry process has been standardized to allow for minimum use of the keyboard

CBI - Cons Lack of integration between the Chrisles modules and CBI Reps still have to remember what happens all day if they are on sales visits Standardization of entry leaves no room for flexibility

How to Improve CBI Improve the integration between all electronic systems Make it mandatory for all Reps to input their sales information to ensure rich data available for managerial analysis Provide training in proper data entry

Where are they now? Quality Improvements: • QIT’s • 1/3 of employees in improvement projects • 6 sigma concepts since 2001 • Heavy investments in training and development

Where are they now? Customer Access Improvements: • 24/7/365 online support • Drivers downloadable online • Meter readings, contact information online • Machine maintenance forms • Auto Pay services

8. Messages for the Modern Leader 1. Describe the Organization 5. Define IT/IS based alternatives for solving information/organiz ational problem 2. Define Organizational Problem 3. Define Information Aspect of the problem 6. Analyze pros/cons to alternatives Is it electronic IT/IS involved 4. Analyze how IT/IS impacts on information aspect of the problem 7. Select your solution and analyze advantages 8. Derive messages for modern leader

8. Messages for the Modern Leader 1. Be proactive, not reactive 2. Look at where you want to be, not where you are 3. Use IT/IS as a tool to meet your strategic objectives

References www. xerox. com

Questions!?