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Optima Business Group Leveraging Information Technology For Salesforce Enablement Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 1991 | 684 Words (4 Pages) | Ritu Mehta, Debabrata Ghosh | Ivey Publishing : W15139 |
A Word File
The major issues in sales and distribution are slow procedures and manual handling of orders. Lack of transparency, dutifulness, and errors was also common. Because their systems were manual, they were unable to keep a record of their inventories. The stockist was particular annoyed by the objection settling system, which had no transparency. Multiple incentivizing schemes were another reason for confusion. Stockist had no idea about the procedure and amount of reimbursement. The sales force lacked in knowledge and skills required to deal with these issues.
Following questions are answered in this case study solution
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Analyze the major issues in the sales and distribution system of OBG prior to sales force automation implementation?
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What are some of the unique challenges of operating in emerging economies with unorganized retail penetration from a consumer goods company perspective? What strategies can companies adopt to overcome such challenges?
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Conduct a cost-benefit analysis to showcase the measurable benefits arising from SFA implementation at OBG. What could be the other possible benefits of SFA?
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From the SFA project implementation plan, discuss how IT projects get implemented. Did the OBG IT implementation plan seem overly cautious or reflect aggressive planning?
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What should be the future plans of Mitra and his team? Would the model of sharing the costs of IT implementation with stockists be prudent, considering that OBG might have to give extra incentives to rural stockists? How should OBG implement IT in rural areas? How should OBG go about building its future IT strategy?
Case Analysis for Optima Business Group Leveraging Information Technology For Salesforce Enablement
2. What are some of the unique challenges of operating in emerging economies with unorganized retail penetration from a consumer goods company perspective? What strategies can companies adopt to overcome such challenges?
The most challenging part of operating in an emerging economy is the lack of a proper distribution channel. The markets are usually unorganized with few large and many small players. Basic infrastructure facilities like proper roads to remote areas are mostly not present, and the transportation of goods is an issue. Manual procedures are preferred over an automated one, and since the internet is not present in all areas, it is difficult to adapt to automation. In order to build a strong network, companies should coordinate with retailers in all areas.
3. Conduct a cost-benefit analysis to showcase the measurable benefits arising from SFA implementation at OBG. What could be the other possible benefits of SFA?
The overall cost of implementing SFA is 4.2 Million USD (Exhibit 7) while the increase in net income in one year is 209 Million USD (Exhibit 6) the benefit has outnumbered the cost of implementation. Further, he reported a satisfaction level of stockiest has increased by 33% (Exhibit 8), which can lead to a further increase in sales. If the plan is extended to rural markets as well, the net increase in sales would be enough to cover the costs. Other advantages include a reduction in time to service a store, efficient management of inventory, and less chances of error.
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