Downloads - empirica

empirica.biz

Downloads - empirica

e-Business in the chemical, rubber and plastics industryProduct and customer data migration,Staff training.As planned, on the first of October 2003, Unicorn Chemicals began to use the newsystem. However, in order to guarantee a smooth transition from the legacy system to thenew one, the firm decided to run both applications in parallel until the end of the year.Although employees used those three months to get familiar with the system and itsfunctionalities, it turned out that no unexpected problems emerged and the applicationwas relatively quickly adopted in the day-to-day business practice.Despite the fact that the system became an integral part of the company, Mr Kilpatrickadmits that time and money constitute major barriers to the deployment of ICT. “Ifwe were starting the project today, we would take more time in implementation. This isparticularly important because even today, four years after the system launch, we learn touse more processes of the system. This is a continual development,” says the firm’smanaging director.The initial cost of hardware and software was €32,000. The running costs including ITconsultancy and annual maintenance amount to €29,000. One of the new costs is an ITmanager, employed to maintain the application. Apart from buying a new server, the firmdid not have to make any technological adaptations to match system requirements.5.8.3 Impact and lessons learnedImpactSoon after implementation, the company began to experience positive effects of thisdecision. According to Mr Kilpatrick, “the system had significant impact on the workorganisation. The work has become more organised and controlled. Furthermore,documentation and tracking functionalities proved very important.”The most important outcome of this project is the fact that the application made allinformation relevant for the firm’s sales strategy available immediately. This enabledUnicorn Chemicals to achieve its primary objective defined before the project started, i.e.to effectively use customer information to create cross-selling opportunities. As a result,the firm realised the following benefits:Increased sales efficiency. The firm is able to analyse sales trends and identifysales opportunities that were not seen before.Reduced overall purchasing costs. Having got a greater grip over its salesactivities, the firm can plan its purchases more efficiently, which considerablyimproved its purchasing operations. Furthermore, it gained a new ability to analysesuppliers, which additionally increases the efficiency of purchasing decisions.Reduced inventory by 30%. Accurate and up-to-date overview of company’ssales and purchases improved control and visibility of stock. Furthermore, byimmediately seeing which customers buy which offers, the firm can make specialoffers on redundant stock.By integrating all relevant information on sales activities and allowing managementimmediate access to it, the system gave the firm more control over its operations and,therefore, allowed it to use it in a strategic way. This resulted in more efficient sales,179

More magazines by this user
Similar magazines