ICT and e-Business Impact in the Furniture Industry - empirica

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ICT and e-business impact in the furniture industryThe project’s main goals are as follows:To improve customer service (points of sale), providing the option of an easier andquicker choice of the products put on saleTo reinforce the positioning of the Danona product at the point of saleTo achieve differentiation as regards competitorsTo facilitate the work of Danona sales representatives.5.1.2 e-Business activityProject descriptionThe project involves developing a software application for the design of made-to-measurefurniture according to the different parts that make up each product, with the option ofchoosing different colours and other product features such as materials.This would mean that both the company’s sales representatives, when presenting thecatalogue to the points of sale, and the actual retail outlets themselves, would have a toolto facilitate their work and improve the way in which products are presented.Product launch: preliminary versionThe process for launching the product was straightforward. This was helped by the freeflowingcontact between Danona and Sofland, as technology adviser and provider.An initial timeframe was established during which Sofland set about preparing a firstversion of the software application to be implemented in 2002. It was a simple version,but it already allowed to create models and it proved to be very useful. This version hadthe following functions:3D display allowing for models of products to be created according to the differentparts involved.Colour choice option.Pre-selection was made of a series of settings/decors in which the product couldbe positioned and seen.It should be noted that this first version allowed for modelling in only one Danona productline.In 2002, Danona’s sales representatives began to present the application to the mainoutlets retailing its products with a view to analysing whether any adjustments needed tobe made to the hardware at these points of sale. It should be stressed that these outletswere extremely diversified in terms of computer types and models, which meant that itwas vital to opt for a simple software tool. Specifically, it was designed using an AccessDatabase, which did not interfere with existing IT systems in the outlets. Accordingly, all aretail outlet needed to do to operate with this software tool was to copy a file onto itscomputer.Throughout 2002 all Danona product lines were included as well as those of its subsidiaryLeroa, in this new software application. It should be stressed that adding a new productline, with an average of 500 references, involved three weeks of work.99
ICT and e-business impact in the furniture industryNew 2005 versionProject costsBetween 2002 and 2005, regular meetings were held between the heads of the Salesand Product Design Departments at Danona and Sofland, the purpose being to regularlymonitor the project’s development and correct any problems that appeared in itsimplementation, mainly at the points of sale. The sales reps played a key role in thismonitoring process, being the ones in direct contact with customers.The meetings led to a series of four-monthly upgrades of the first version, incorporatingnew features and the ironing out of any errors that had been detected. The set-up phasedemonstrated the importance of involving end users for the successful development ofthe initiative.As a result of the work undertaken over the 2002-2005 period, the decision was taken tolaunch a new version of the software at the end of 2005, which would include newfeatures. The following were the main improvements:Allowing different product lines to be combined when creating models.Increasing the range of settings, in order to achieve a better view of the product inthe place where it was to be located.Including the option of designing modules, in other words, being able to cut theparts to build a customised piece of furniture.Option of exporting the models created to other virtual reality software formats inorder to broaden the available solutions.Option of preparing orders and submitting them to the company’s ERP, albeitsolely on an internal basis, that is, by the sales reps.Likewise, work proceeded on incorporating new items in the catalogue to the softwareapplication. This new version is the one currently in use, but work is under way in 2007on an upgrade, which will add new features to those already existing.From the start of the project (2002) through to the present, the costs have amounted toaround 120,000 euros. This figure includes the different versions made since the launch,as well as the work involved in extending the application to include Danona’s variouscatalogues from 2002 to the present.Personnel involvedTechnology usedThe first phase of the project involved the following departments at Danona:Sales DepartmentProduct Design DepartmentIn addition, the launching of the project and the process of upgrading, adjusting andimproving it have involved the 15 sales reps at Danona.The technology used consists of:100
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ICT and e-Business Impact in the Furniture Industry - empirica

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