Xerox Hong Kong: Sales Activity Management Process(SAMP)

1. Xerox Hong Kong: Sales Activity Management Process(SAMP) Thursday May21st, 2009 Sunny Chohan Marc Duprat Jen Gustafson Tiffany Koberstein Dustin Springett Robert Tetrault

2. Outline Xerox – The Organization XHK Organizational Problems Information Aspect of Problems (cont’d) Alternatives Analysis Solution Messages for Modern Leader

3. 1. Xerox: The Organization

4. Xerox: The OrganizationBusiness 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

5. Xerox: The Organization C’tdMarket 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

6. Xerox: The Organization C’tdOrganizational 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

7. 2. XHK Organizational Problems

8. 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

9. 3-4. Information Aspect of Problems

10. 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Shared with Xerox Australia and located in Australia 25% of information was obsolete (data not recorded/mishandled/outdated/duplicated inconsistently) Reps, engineers and managers were not allowed to modify customer information directly – was read only Only one person could enter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

11. 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 in-house 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

12. 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

13. 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

14. 5. Alternatives

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

16. 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

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

18. 6. Analysis

19. 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

20. 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 – 8am – 9pm. Office is full until 7pm 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

21. 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

22. 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

23. 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 Analysis

24. 7. Solution and Advantages

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

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

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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 8. Messages for the Modern Leader

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

35. References www.xerox.com

36. Questions!?