Business Case Analysis: Rock Solid Industrial Parts, Inc.

Rock Solid Industrial Parts, Inc. Case Analysis
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Executive Summary
Rock Solid Industrial Parts, Inc. is a family business looking to transform itself in the 21st Century. After crafting a 3-year strategic plan intended to double the profit sales and employees, the top executive is keen to take advantage of digital tools to drive the expansion. The proposed digital transformation will seek to establish IT solutions for the marketing department, sales department, finance and accounting department, and inventory and warehouse management. Some of the essential software that will be acquired to facilitate the digital revolution include Quickbooks, ZohoCRM, and Fishbowl Inventory among others. By leveraging the digital revolution, the organization shall place itself in a situation where it can achieve its strategic goals.
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Introduction
In order to realize the set 3-year strategic plan, it will be necessary for Rock Solid Industrial Parts, Inc. to leverage information technology (IT) solutions. The strategic plan will see the company expand its operation to more areas to cover the whole area of the West Coast and the various Mountain States. Within the strategic period, the company expects to double its sales from the current USD 3 million to USD 70 million, as well as double its employees from the current 36 to over 70.
Digitalization of the company will place it in a unique position where it can achieve sustainable efficiencies that will extend beyond the 3-year strategic timeframe. Of interest is the digital transformation of the marketing department, sales department, finance, and accounting department, and inventory and warehouse management. In addition, there is a need to create an organizational culture that is highly receptive to the various benefits that one can accrue from various IT and information systems (IS) solutions. In this report, the specific approach that Rock Solid Industrial Parts, Inc. should take to digitally transform itself so it can attain sustainable efficiencies and easily pursue its 3-year strategic plan is outlined.
Areas to Consider
Presently, the organization have not established IT and IS solution in various essential department. Thus, the proposed digital transformation will seek to establish IT solutions for the marketing department, sales department, finance, and accounting department, and inventory and warehouse management. To enhance the likelihood of meeting the strategic plan, solutions for C-level executives will be pursued.
Processes to be Redesigned
Marketing
Presently, the organization has a dismal online presence and barely uses social media for marketing purposes. In addition, the organization does not have a system that allows the marketing department to gain essential insights into existing customers to design marketing campaigns intended to facilitate customer retention and reach out to new customers. Given that the organization plans to double the sales figure in a 3-months timeframe, there is a need for the company to establish marketing operations that will facilitate the achievement of the goal. The process redesign in the marketing department will be two done in two key areas.
First, the organization will need to establish a system that effectively collects data on current customers so that it can be leveraged to enhance customer retention and acquisition. An important aspect of the marketing process is data collection on the ideal customers for the organization. An IT system such as a Customer Relationship Manager (CRM) allows the collection of customer contact information that can be used by the marketing department to create marketing campaigns as well as send monthly updates to existing customers.[Michal Pohludka, and Hana Štverková. "The best practice of CRM implementation for small-and medium-sized enterprises." Administrative Sciences 9, no. 1 (2019): 22.]
Second, the organization should redesign the process used to connect with customers. As noted, the organization does not currently have a reliable process through which it maintains a relationship with its customers. Social media and websites are two IT solutions that can help the company maintain an active connection with the customers. Social media allows constant interaction between a business and its customers in a way that deepens the relationship between an organization and its customers. A website offers an organization an online presence that is instrumental to the organization’s ability to ensure that customers are aware of the offering provided by an organization. Leveraging the internet will allow Rock Solid Industrial Parts, Inc. to increase its communication with customers and positively contribute to enhanced customer service, acquisition of new customers, and stable customer loyalty.[Gintare Hermanaviciute, and António Manuel Dinis Ribeiro Marques. "Social networking as tool for global communication for fashion brands." (2016).]
Sales
Doubling sales revenue will require revolutionizing the sales department. The present model employed by the organization is the use of direct and independent sales representatives who are supported by inside sales, whereby the field sales reps are allowed to work remotely or in an office of their choosing. To sustain the model, the sales representatives need to maintain a long-term relationship with their customers. Thus, it is essential to implement IT and IS solutions that augment the model as opposed to one that fully redesigns the process.
It is essential to introduce an IT system that allows the sales representative to enhance their relationship with customers. To this end, a CRM system eases sales representative access to customer data and information. As opposed to frequently referring to the inside sales team to access customer information from excel files, the CRM system will allow sales representatives to access customer data and information regardless of their physical location. Using data analytics, the company can generate and share insights about the customers that the field sales representative can use to improve their interaction with customers.[Eric Gagnon. "The marketer’s action plan (MAP): Six steps to developing effective marketing plans in B2B marketing programs." International Management Review 12, no. 2 (2016): 57] [Ibid, 58]
In addition, there is a need to establish a system that allows salespeople to effectively interact and share insights. To this end, the company has to invest in meeting tool that deepens employee engagement and facilitate the involvement of employees who are in remote areas. In addition to meeting tools, there is a need to invest in communication tools that facilitate communication between the field representatives and the inside salespeople. To this end, the company has to redesign the meeting process by leveraging tools that allow video conferencing and instant messaging.
Inventory and Warehouse Management
Presently, the company handles inventory management using a barcode scanner that is combined with an excel spreadsheet. As such, the information on the available inventory is weekly as opposed to real-time. To achieve the strategic plan within the timeframe, the company has to provide the sales representatives with the information they require to meet clients’ needs. A system that effectively enhances inventory management can be effectively introduced to ensure that the sales representative has up-to-date information on the inventory. An inventory and warehouse management software can also be effectively leveraged to inform order fulfillment and restocking.[Hamdy, W., Mostafa, N. and Elawady, H., 2018. Towards a smart warehouse management system. In Proceedings of the International Conference on Industrial Engineering and Operations Management (Vol. 2018, pp. 2555-2563).] [Ibid]
Finance and Accounting Department
Notably, the Chief Financial Officer is opposed to the potential introduction of IT and IS systems in his department. Currently, the department relies on the outdated model to maintain the accounts but the systems have been effectively working for the organization. Nonetheless, there is a need for an organizational change intended to enhance the efficiency with which finances and accounts are managed at the organization. Even though the system in place has been working, there is a need to introduce a system that will enhance the efficiency of the department and enhance the collaboration between the accounting department and other departments within the organization. In addition, a new system can be leveraged to enhance cost reduction, increase productivity, and improve accuracy within the department. The three objectives are essential in determining the extent to which the organization will be in a position to meet the set objectives within the 3-year strategic plan in place.[Mohammed Aboramadan, and Elio Borgonovi. "Strategic management practices as a key determinant of superior non-governmental organizations performance." Problems of management in the 21st century 11, no. 2 (2016): 71.]
Human Resources
The strategic plan foresees the doubling of employees from the current 36 to 72. With the increased number of employees, there will be a need for a more efficient and effective approach to employee management. To this end, a process design is required to facilitate the management of the employees. Presently, the organization relies on a process that is dependent upon the manual analysis of data. Given the need to adopt a scalable approach to organizational growth, the company has to invest in a system that can allow ease of performance tracking and the recruitment of employees. As noted, the organization does not leverage the online marketplace as a source of the workforce. It will be important to redesign the recruitment process of the organization to include an online aspect of recruitment.[Svetlana Shirokova, and Aleksandr Lepekhin. "IT Solution concept development for tracking and analyzing the labor effectiveness of employees." In E3S web of conferences, vol. 33, p. 03007. EDP Sciences, 2018.]
C-Level
It is essential to enhance the overall communication among members of the organization. The 3-year strategic plan cannot be achieved if the organization is not well-placed to manage communication between the senior members of the organization and their employees. Given the organization's need to maintain the current sales model that allows sales representatives to work remotely, there is a need to implement an effective communication system that will serve to enhance C-level communication within the organization.[Milana Virtanen. "The Impact of Remote Working on Employees’ Work Motivation & Ability to Work." (2020).]
Technology Required to be Implemented
Given the need to redesign most of the organizational processes, there will be technological needs that the company has to meet.
Software
Cloud-Based CRM: The Company has a sales management model that relies on field sales representatives supported by an inside sales team. Given that the organization is keen to maintain the model, a distribution CRM is the best tool for sales management. In addition, the company has realized that maintaining customers remains one of the most essential elements that has sustained sales in the company. Consequently, a customer relationship management (CRM) system remains the most ideal sales management software given its pivotal role in facilitating customer relationship management. With the help of a CRM system, sales representatives will have the information they require to serve clients at their fingertips. Notably, one can use CRM to identify the team members who last contacted the customer, receive an update on the most important issues that the customer would like the representative to address, and assist in the follow-up of clients so that one can effectively nurture leads.[Peterson Rodriguez and Krishnan, V., 2018. Impact of CRM technology on sales process behaviors: empirical results from US, Europe, and Asia. Journal of Business-to-Business Marketing, 25(1), pp.4.] [Ibdi, 5] [Ibid] [Aliyu Nyadzayo (2018). Reducing employee turnover intention: A customer relationship management perspective. Journal of Strategic Marketing, 26(3), 244]
The benefits that the company will accrue from the implementation of a CRM system include enhanced customer satisfaction as the sales representatives will be in a position to effectively track customer interactions as well as their preferences so that they can effectively resolve their needs or any arising issues. The implementation of a CRM can assist in doubling revenue and sales as it can smoothen the process of building a relationship with leads. The resulting automation of some of the sales tasks smoothens sales operationss and increases productivity. With CRM, the company shall automate lead generation and lead management to allow enhanced focus on customer service. In addition, CRM systems generate data that a business can effectively leverage to refine the adopted business strategies. Reports on business aspects such as sales pipeline, marketing campaigns, and customer activities can lay an instrumental role in generating the insight required to develop a sales and marketing strategy.[Emre Erturk and Song He. "Study on A High-integrated Cloud-Based Customer Relationship Management System." arXiv preprint arXiv:1812.09005 (2018).] [Gede Juanamasta et al. "The role of customer service through customer relationship management (Crm) to increase customer loyalty and good image." International Journal of Scientific and Technology Research 8, no. 10 (2019): 2004-2007.] [Ibid]
A cloud-based CRM will allow remote access to data on the client and save on costs significantly. As opposed to expensive cost-up costs, the company will incur the low up-front cost and will receive a guarantee of industry best practices in internet security. Zoho CRM offers the ideal solution due to its simplicity. Presently, the organization does not have a culture that is founded on the application of technology. Consequently, there is a need to source the most affordable and easy-to-use software in the marketplace. ZohoCRM has been identified as one of the easiest software to learn. Thus, the acquisition of the CRM will make it easy to teach the sales representatives how the CRM operates.[Alireza Souri et al. "Software as a service based CRM providers in the cloud computing: challenges and technical issues." Journal of Service Science Research 9, no. 2 (2017): 220] [Ibid, 221] [Ali Shabdar. "Running Your Business on Zoho CRM." In Mastering Zoho CRM, pp. 61-130. Apress, Berkeley, CA, 2017.]
Geekbot Software: Given that the company salespeople mainly work remotely and the pursuit of the 3-year strategic plan will require the establishment of satellite offices for the salespeople. Consequently, the company needs to invest in meeting software that allows employees to take part in meetings even in instances where they are working from remote offices. Geekbot is a tool that integrates with meeting tools such as Microsoft Teams and Slack so that one can be able to hold asynchronous meetings without a high degree of interruptions. Unlike the traditional meeting tools such as Zoom or Google Meet that facilitate a synchronous meeting, Geekbot does not require scheduling as it allows the team members the opportunity to fill in their answers when it is the most opportune time and review responses from other team members while carrying out other duties. With the use of Geekbot, the company will not have to worry about the timing of the staff meeting and differing time zones as the meeting tool will allow team members to join the asynchronous meeting at the most convenient time for them.[Geekbot. "Automate Asynchronous Standups, Retrospectives, and Surveys." Geekbot. Last modified October 21, 2022.] [Ibid] [Ibid]
Quickbooks: The finance and accounting department will significantly benefit from the implementation of Quickbooks in the workplace. Using the software, the company will be able to easily track customer payments and prepare reports with other departments within the organization. Using the software will allow the finance department to settle bills, prepare taxes, send invoices to customers, and prepare financial reports. As opposed to the current system where the employee is forced to develop reports from zero, the use of Quickbook will mean that one will have access to a template that can facilitate the development of financial reports.[Kamal Hingorani, and Bob McNeal. "Using Quickbooks Online Plus for Enhancing Learning Of ERP Concepts: A Case Study." Issues in Information Systems 19, no. 4 (2018): 137] [DeDe Jones, and Michelle Jones. "Using QuickBooks® Accounting Software to Improve Financial and Production Records for Better Decision Making." In 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas, no. 229772. Southern Agricultural Economics Association, 2016.]
ADP Workforce: In addition to Quickbooks, the accounting and financing department needs to adopt the ADP workforce to facilitate payroll management. Currently, the accounting department does not have a software program in place that eases the payroll management process. The use of ADP Workforce allows one to issue paychecks, calculate deductions, and remit payroll taxes. Consequently, the software increase the overall productivity of the accounting and finance department by simplifying the paycheck settlement process and allowing easy remitting of taxes. An electronic payroll system is also advantageous in the sense that the team members have access to salary information so that they can easily plan for their retirement and file taxes as required. ADP Workforce also allows employees to keep track of their daily attendance records as well as receive information about the number of hours that they are supposed to work at any given time. The cloud-based nature of the software implies that workers in the finance and accounting department are in a position where they can handle payroll issues from remote locations as the software allows access to data-driven insights.[ADP Workforce. "Workforce Now® All-In-One HR Software | ADP." Payroll, HR and Tax Services | ADP Official Site. Last modified May 18, 2020. /what-we-offer/products/adp-workforce-now.aspx.] [Ibid]
Microsoft Office: The Company shall provide all employees with access to Microsoft Office Software. To this end, the team members will be provided with access to important Microsoft Office packages such as Outlook, Excel, and Powerpoint among others. Notably, the introduction of the Ms. Office software and its widespread utilization within the organization will serve to increase the overall level of employee productivity in the Company. The cloud-based nature of the software means that the employees will have the possibility of receiving access to their accounts anywhere as well as easily sharing information with other team members.[Louis Martin, and Dave Tapp. "Teaching with Teams: An introduction to teaching an undergraduate law module using Microsoft Teams." Innovative Practice in Higher Education 3, no. 3 (20...