Xerox (Hong Kong): Sales Activity Management Process

1
Xerox (Hong Kong) Sales Activity Management
Process

• Case 6
• Tanya Derksen Chris Loewen

2
Organization History-Xerox

• History of Xerox
• Xerox Corporation History
• 1906-1930s
• The Photography Paper Company
• 1940s-1990
• The Photocopier company
• 1990s
• The Document Company

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
3
Organization History-Xerox Hong Kong

• Xerox Hong Kong
• Around since 1960s
• By 1997 had 500 employees (200 direct sales,
• 200 service and 100 admin)
• In the 1990s the primary competition were Ricoh,
  Panasonic, Konica and Canon
• 17 market share
• Key personnel
• Joseph Yu Sales Director, moved from Ricoh,
  arrived at same time as Banio Mok (senior
  director) and Edmond Chow (Key Accounts II)
• Allan Lin moved from Rank Xerox Sweden, named
  Managing Director in 1995
• Became Fuji Xerox in 2000

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
4
Organization Structure Xerox HK
Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
5
A Day in the Field

• 830am Team sales meeting / Answer client calls
• 1030am Driving time
• 1100am CLIENT VISIT
• 1200pm Lunch
• 100pm CLIENT VISIT
• 200pm CLIENT VISIT
• 230pm CLIENT VISIT
• 415pm CLIENT VISIT
• 530pm Meetings / Client calls / Reports /
• Preparation for next day
• 730pm Client notes / Entries in planner client
  profile
• 830pm Day finished

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
6
A Day in the Field

• Inefficiencies
• Lack of integration
• No reliable client follow-up
• No real-time daily activity reports
• Need for up-to-date information on current
  products
• Delay in client database updates

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
7
Organizational Problem

• Xerox Hong Kong had a paper-based sales activity
  management process that was inefficient

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
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Information Aspect of Problem

• Marketing Database
• Centralized customer database was OSCARR on
  mainframe shared with Xerox Australia
• 25 of information in OSCARR was estimated to be
  obsolete or inaccurate
• Other Databases
• Direct Sales Operations had been using an
  electronic client profile (ECP)
• Finance maintained a database that wasnt
  accessible to the sales organization, even though
  it contained identical service and billing
  information

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
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IT/IS Impact on Information Aspect of Problem

• AIS managed information systems for Xerox
  worldwide
• AISHK was responsible for managing all XHKs IT
  requirements
• Xerox execs had concerns about the quality of AIS
  service, and had recently expressed
  dissatisfaction with AIS publicly
• Under the agreement, no hardware/software change
  could be initiated without AISs consent
• XHK Marketing database manager had expressed
  interest in developing a company wide database
  which would be installed on all PCs, independent
  from AIS

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
10
Alternatives for Sales Activity Management
Process

• Option 1 Paper-based system
• Option 2 Paperless system
• Critical Business Information (CBI)

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
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Option 1 Paper-based system

• Pros
• Lower cost
• Staff are knowledgeable and familiar with system
• Market competitors not using digital management

• Cons
• Potential lost sales in long-term
• Dissatisfied customers
• Diminished competitive advantage
• Support for team selling

Organization / Organizational Problem /
Information / IT/IS impact / Alternatives /
Pros/Cons / Solution / Messages
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Option 2 Paperless system

• Pros
• Better fit for corporate direction
• Enhanced productivity
• Integrated team work
• Leaner organization
• Improved customer and market focus
• Reduced cost

• Cons
• Employee lack of knowledge and skills
• Org. culture is not ready
• Management inexperience with IT applications
• Perceived threat to jobs
• High cost

Organization / Organizational Problem /
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Recommended Solution

• Move to digital SAMP
• Advantages
• Improved quality and reliability
• Improved planning and reporting
• Competitive advantage
• Increase customer satisfaction
• Customizable for XHK needs
• Information follows user

Organization / Organizational Problem /
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Xerox HK Part B

• By 1999
• Implemented two IT projects
• Chrisles
• Critical Business Information (CBI)
• Improvements
• Better quality of information
• Useful in planning and reporting
• Concerns
• Systems not interconnected
• Inaccurate and outdated information
• Further training and support needed
• Security

Organization / Organizational Problem /
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Pros/Cons / Solution / Messages
15
SAMP / Distributed System

• Distributed System
• A network of systems that enable data and
  information to be maintained by data custodians
  at a range of locations to a specified standard
  and administrative arrangements.
• Benefits
• Information is with the user (ie. salespeople)
• Interoperability
• Reliability
• No data duplication

Organization / Organizational Problem /
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Key Messages for Leaders

• Need for a robust and thorough change management
  process
• Need for adequate technical support to implement
  system and processes
• Emphatically communicate the reason for the
  change and the anticipated benefits
• Sensitivity to company culture is important

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Q A

• Questions?