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Xerox (Hong Kong): Sales Activity Management Process
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  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” • 8:30am Team sales meeting / Answer client calls • 10:30am Driving time • 11:00am CLIENT VISIT • 12:00pm Lunch • 1:00pm CLIENT VISIT • 2:00pm CLIENT VISIT • 2:30pm CLIENT VISIT • 4:15pm CLIENT VISIT • 5:30pm Meetings / Client calls / Reports / Preparation for next day • 7:30pm Client notes / Entries in planner & client profile • 8:30pm 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

  8. 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 wasn’t 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

  9. IT/IS Impact on Information Aspect of Problem • AIS managed information systems for Xerox worldwide • AISHK was responsible for managing all XHK’s 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 AIS’s 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

  11. 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

  12. 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 / Information / IT/IS impact / Alternatives / Pros/Cons / Solution / Messages

  13. 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 / Information / IT/IS impact / Alternatives / Pros/Cons / Solution / Messages

  14. 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 / Information / IT/IS impact / Alternatives / 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 / Information / IT/IS impact / Alternatives / Pros/Cons / Solution / Messages

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

  17. Q & A • Questions?