Monday, June 30, 2014

Reflection Report: 1-888-JUNK-VAN

Memorandum
To: Marcus Kingo
From: Nikita Patel
Date: June 30,2014
Subject: Re: Reflective Analysis – 1-888-JUNK-VAN 

Hello Mr Kingo,

As a follow up to the business meeting held last Tuesday with ‘RKR Consulting group' with regards to upgrading our IT system, I believe they provided some thoughtful insights for implementing PaaS as a suggested course of action, which can be utilized in arriving at a final decision to improve the operational efficiency in the current system and make the customers satisfied which will ultimately facilitate the expansion and lead us to a sustainable growth in the future.

As per the preparation we had done before the meeting, we thought of that as one of the solution in spite of considering the cost factor involved in the implementation process. However after the presentation, the key take away from the discussion became quite evident that most of the alternatives were possible solutions to our IT infrastructure problem. However keeping in mind our decision making criteria such as cost, flexibility, implementation time, vendor support, and very importantly minimizing the complexity of the IT system on which we would like base our final decision, it became apparent that PaaS would be the most ideal option in upgrading our IT system. We must consider the fact that although we are looking to grow the franchise, we are still a small business operating in a unique business environment that does not require the implementation of a sophisticated and complex IT system that will need a large infrastructure and understanding to support and operate the application.

The biggest benefit I see for adapting to PaaS is that we can easily franchise the business with this IT system since PaaS can migrate data quickly. It will reduce company costs by saving on the maintenance of the platform and we can get immediate updates and new features as and when available. Another benefit is that it takes only three days to implement the software including data migration and it does not require long term contracts. Last, but not least is to see how the cost of this option will affect our bottom line. As per the consultants the total implementation cost for PaaS will be about $ 36931. Taking into consideration the cost involved in implementation, training the staff members, I analyze the comparison of the old business model with the new business model to understand the future profitability of our company JUNK VAN, and I believe we might see an increase in profit of not only about $ 45,000 (36% of sales) as mentioned in the presentation but may be even more in the future years by taking the compounding effect of this initial investment. 

The above facts and evidence surely makes us take up the suggested route and upgrade our IT system to PaaS before we loose out our important customer base to other companies. Please do not hesitate to contact me for further details on the suggested alternative.


 

Zara: IT for fast Fashion - Case Preparation

Inditex, the owner of Zara is the one of the largest chain retail store with revenues of € 3974 million and a net profit of € 438 million for the year 2002. Their biggest competitors are Gap, H&M, and Benetton.   Zara continuously maintains its mission to provide fast and affordable fashionable items. Unlike these companies, Zara does not predict trends rather its approach to design is more closely related to their customers. The maximum time from conception to distribution center is 3 weeks therefore the vertical integrated supply chain ensured constant introduction of new items with short lead times.
 
Key Problem: 
At Zara stores, the POS terminals used an outdated operating system DOS, that was no longer supported by Microsoft.  Zara has not upgraded its operating system since 10 years and remains to be the only customer still using DOS.  While this system is efficient in all ways and Zara is able to run their POS application, there is no guarantee that their vendors will change their hard drive & decide to upgrade its software.   There are over 550 Zara retail stores worldwide; however, they do not have a centralized network nor are they always connected to headquarters by a modem due to connectivity issues.  The PDAs used by all of the employees are not able to detect whether another store has an item in inventory; this causes employees to become less efficient because instead of having access to look up in their system to see if a store has a particular SKU item, the employee has to call the store to find out if they have a specific item. Zara’s inventory system works on “estimation” not 100% accuracy, which leads to incorrect inventory amounts and have an impact on keeping equilibrium between supply and demand of their products. Values between the systems were incorrect & Zara’s headquarters in La Coruna, have to wait until the end of the business day to find out the total sales for the day.
 
The scope of the problem involves how the 550 Zara stores be moved from an archaic operating system to a new operating system that involves a lot of money, essentially creating a need for an IT division to keep up with constant monitoring, upgrading and training of sales personnel. Though it would be beneficial to the distribution centers who would now have access to the store’s inventory. Therefore the initial investment of money spent on making this change would affect Inditex by incurring these new costs as an advantage in future.
Situation Assessment:
 
Zara’s process has been working fine for all these years and the company is growing at a rapid pace, adding 24 stores from 2001 – 2002 in various different countries. This expansion and growth would not stop Inditex in the coming years and to continue using an archaic system with no vendor support in the future would mean a risk of having more problems later when the company has more stores coming up across the globe.
The decision criteria for Zara should be adding functionality in the business processes, networking capability, sharing information between stores as smoothly as possible, and making the company run more efficiently with ordering and restock the items. It is not necessarily in relation to the cost of the changing to a new operating system in 2003, but what would be the difference in cost if they are stuck by their outdated IT system in the future. The company will need to evaluate where they see the most risk and combine that with the cost of an upgrade.

Alternative Courses of Action & Evaluation of Alternatives:
Zara has two main alternatives – whether to keep their existing DOS operating system for their POS terminals or to replace it with a new, supported operating system i.e. Microsoft, UNIX or Linux.
§  Alternative 1:
By continuing with the existing DOS on their POS terminals and not making any changes, ZARA will be able to eliminate the risks of the IT failure during implementation and changing the IT infrastructure of a company & there will be no need to create an IT department to handle the upgrades. It will save money for not having to replace the operating system in every store & also the training cost for the employees on the new software and functionalities. It will not put the company at risk in regard to the robust and scalable infrastructure that would have to be built. It will allow an easier process of store openings by just uploading two floppy disks into the terminals and being ready to start the store.
Evaluation: While this would cost the company nothing currently, this runs a very high risk of having problems in the future that will need to be taken into consideration. If Zara’s terminal vendor were to make changes to the terminal that would prohibit the use of DOS going forward, this could delay Zara from opening any new stores itself. If the Inditex kept continuing the current expansion, averaging one new store every two weeks, this could end up costing Zara millions of dollars in lost sales in the future due to a temporary or long term halt in its business process.
§  Alternative 2:
By upgrading and adding functionality, Zara will gain access by connecting to the stores across the globe to arrive at the current inventory levels and not having to manually call each store which will make the transmission of current data to the headquarter and the distribution centers, specifically if needing to order an item that is running low in the store. It will eliminate the need to use a PDA, which is time consuming and inconvenient due to its small screens. By having a wireless network, managers would no longer have to rely on floppy disks to compute the total sales from the registers and then transmit. If all the stores were permanently connected to the Internet, every location would know the theoretical inventory of all its SKUs.
 
Evaluation: While choosing a new operating system, the Company will need to evaluate three operating systems - Microsoft, Linux and Unix mainly on cost. These three options will be able to provide the Company with an updated, vendor supported operating system that they can use for all retail stores in the future. They can have networking capabilities, the ability to better monitor inventory and continue to be used for point of sale transactions. The main difference will lie in the upfront and annual costs for all three.


Zara does not have any cost problems to overcome as per the financial statements and does not use cost-benefit analysis for justifying IT decisions, however their decision criteria should be to evaluate the cost of each of the three providers for a new operating system; running that analysis will give management an idea of the costs in front of them at the present time. They will also need to be very realistic about the probability that terminals will not be able to use DOS in the future.

Recommendation:

The logical and quality recommendation is to make a switch from the outdated DOS on the POS terminals to a more stable operating system that is current with technology.  As Zara grew at a rapid pace, it should not only focus on what is working currently across the stores, but should also be thinking from the future perspective of having an obsolete system which is not supported by Microsoft itself & if they decide to upgrade the software leaving them in a dilemma that will halt the operations of the stores.  The current PDAs which look up SKUs are accurate; however, it would be more efficient if all of the company’s stores were on the same network.  Zara is a company in which their employees are very autonomous; managers decide which clothes to order and decide which clothing goes on sale.  There are very tight deadlines in the Operations department.  When supply does not meet demand it is individuals that choose which stores receive the items.  I believe that there would be more accurate accounts for inventory if Zara invested in a new operating system that supported the newer POS application software.  Reports would be run more often to create optimal plans to begin production, stores would be able to check up SKUs from other stores, as well as have a faster system with more functionality.  There are too many potential problems that could come up in the future by not updating the system, our company can be running fine on today’s POS terminal, but we are living in a fast paced world where technologies change frequently.  Store managers will learn how to use the new system, and if they run into any problems that is Zara has an IT team that includes experts in Store Solutions, Logistical Support, and Administrative systems.  It will be a wise decision to keep Zara’s IT infrastructure current with the technology, so that the company grows even more and continues to be Inditex’s largest chain store. 
Presentation
If I were presenting, I would sum up the case by stating how soon Zara is considering the benefits and disadvantages of upgrading Zara’s POS system from DOS to a Windows, Unix, or Linux based. There are many changes (both positive and negative) for making the change and continuing with the current system.
The key visuals I would include in the powerpoint slides will be giving a cost analysis of upgrading to Windowa/UNIX/Linux platform with regard to fulfilling orders and increasing customer convenience functionality. I would also include some screenshots of how the new system would look like and give a demonstration by running a test with few stores after having a discussion with the store managers if that is what they would like their IT infrastructure to work in future.
I would “sell” the recommendation by keeping the focus on Zara being a growing company and showing that their DOS system is working, albeit is outdated. Yet, I would still be just as unbiased in explaining the benefits of upgrading to a newer system.
The other delivery considerations to keep in mind are to always remain unbiased, but to have the understanding that a decision is needed and needed at the earliest. Just like in the clothing industry, styles come and go in a matter of weeks and Zara has to know how important it is to stay ahead of competition, which could cause them to upgrade their OS in the future.
 

Wednesday, June 25, 2014

Ipads for Success

Hello Mr. Armstrong and Mr. Wolfson,
To arrive at a decision if I-Pads can create a positive impact when used by the sales representatives in comparison to the currently used laptops, Newsy & myself evaluated the various benefits based on the below criterions by having an in-depth discussions with the CIO, CFO, VP of Sales & Marketing, CMO, Sales Managers, and Sales representatives about the process workflow & how they would be affected if laptops are replaced with I-Pads for the detailer. Further we also conducted a test individually on both devices for evaluating technical, operational & financial feasibility.
 No doubt, the laptops are providing everything that the detailers need however in today’s day and age of limited time and short attention spans, where doctors and physicians themselves are turning to the new technology, we should proactively take a step&  start embracing the newer technologies before we realize that most of the detailers in our industry have already taken the advantage through the use of I-Pads.
For evaluating the technical feasibility of using I-Pads in comparison to Laptops, the results that we arrived at was a combination of reviewing the available features served by both I-Pads & Laptops in the open market to understand if the task that the sales representatives are currently doing on laptops can be done on I-pads or not. Based on our analyses, below are the observations: 
  • Since the pre-sales call presentation, sales material/manual etc. are prepared virtually anywhere by the sales representatives & also they get assisted by the in-house sales team, we believe that the detailer can do almost all of their work by taking I-Pads to the sales call.
  • After the recent move of changing our medical rep software from proprietary system to the web-based (which offered us good amount of cost savings, keeping in mind the confidential information still be kept within the corporate headquarters), this newer web-based software version can be accessed via I-Pad.
  • One of the issues of using I-Pads is the security concern. However since most of the confidential information will be kept in-house, we do not see a concern unless there was an oversight by the sales representative which can be controlled by adding a  review process by the sales manager, providing the training & having clear communication. Also I-Pads can use a mobile device manager (MDM) system; this technology helps monitor when I-Pads connect with internal systems. Laptops in comparison do not offer that feature.
For evaluating the organizational feasibility the result we arrived at was by understanding if I-pads will work for our organization. Below were the observations:
  • Easy to use: Sales reps would be able to provide marketing materials/manuals from I-Pads itself, thereby avoiding the printing which will create a friendly environment and ultimately lead the detailer to have more time for building rapport with the physicians. They could present themselves without the physical burden of carrying the huge bag and thereby get less stressed & pay attention to the minute details like the photographs on the walls, degrees put up on the wall & have a casual chat to create a personal interest in the sales call meeting.
  • Training: There will be a 2 day meet for introducing the functions of I-Pad which can be done in parts across the different regions. This can be done over a weekend to save the time for the weekdays.
  • Quick access to Information: The visual charts are an important selling point for a sales representative. Detailers need to be updated with all latest information. I-Pads in addition to WIFI provide Hotspots. This technology adds more internet reliability for our sales reps. Laptops in comparison are mostly restricted to WIFI. 
  • Efficiency due to Saving Time:  Amrahp LLC has 2500 sales representatives spread across the country. The current laptops which uses Windows 7 OS which takes about 3-4 minutes to boot up. Based on the limited time to see a doctor we need about 30 seconds to 1 minute per interaction. Though the laptop can be put on sleep mode while waiting for the physician meeting it can still take about 5-8 seconds to resume. It takes approximately 1 seconds to resume. A laptop battery lasts for about 2-3 hours whereas an I-Pad has the ability to last for 10 hours, does not need to be on sleep mode. In addition the I-Pad can run multiple applications at the same time. There are several apps that can be easily downloaded from the app store for organizing their appointments, canceled appointments, search for their region & save time. Sales reps can communicate with the main office through their direct connection feature that includes communicating with their office managers, view provider profiles, etc. All other information, such as daily reports, travel and expense report can be modified through many apps available for pharmaceutical business.
Finally& most importantly the evaluation of financial feasibility of implementing I-pads for our sales representatives, we discussed with the Sales& Marketing head who is going to do the funding and below is the observation: 
  • Costs Savings: Laptop costs ranges from $800 to $1200, with an average of $1,000. An iPad can range from $500 to $800 with an average of $650, considering the expenses for the accessories like case, screen guard etc. Our total approx. investment for our 2500 employees when we opted for laptops was $2.5 million considering it will require an upgrade in 2 years time. As discussed with the CMO, since we have purchased the laptops last quarter, we have to initially arrange to sell these laptops so as to get the best possible price & in the meantime once the contract is received we may buy the I-Pads. Considering we get 60% of the purchase value in the worst case scenario, our total approx. investment for iPads would be about a little more than $100,000 only (assuming we get 60% return i.e. $1.5 million by selling the laptops & purchase I-Pads for $1.63 million).
Based on the above observation, I-pads will serve to create a more efficient & effective work-life for a sales representative. If you have any questions, kindly do not hesitate to contact Newsy or myself.
Regards,
Nikita Patel
References:  

Monday, June 23, 2014

Reflection Report - P&G Data Capture and Clinical Trial Management


Memorandum
To: Ray D'Alonzo
From: Nikita Patel
Date: June 23,2014
Subject: Re: Reflective Analysis – P&G Data Capture and Clinical Trial Management
 
This memorandum is with regard to the meeting held last Tuesday with the consulting team ‘American “A” Experts’. I believe the consulting team provided some thoughtful insights with regard to implementation of Electronic Data Capture, which can be utilized in arriving at our final decision to solve the three issues we are facing - trial preparation process, data collection & verification and data management & review which will ultimately lead us to a sustainable growth in the health care segment.

After careful analysis of the preparatory notes we had prior to the consultant meeting along with the presentation & data provided by consultants, I see that the consultants discussed most of the benefits of EDC which leads me to consider my initial judgment of moving forward to implement EDC into our system. This is based upon the fact that the virtual world is going to change the future of businesses around the world. P&G should use this opportunity for adapting to new technology and embrace the technical tools available in the market to its capabilities. In addition, the EDC trials were highly successful and proved the system reduces the errors and inaccuracies of human data entry and completely eliminates the double-entry system.  During the trial of the EDC, the duration of time from the final patient visit to data-lock improved from eight weeks to a mere four weeks. There was also an improved quality of patient data, since errors were being corrected throughout the process. 

Also as presented by the consultants in the total weight analysis slide, it proves that of the maximum weighted sum of 123 that can be achieved on the various criterion, the EDC alternative provides a sum total weight of 108 whereas the other 2 alternatives gives a weighted sum of only 81 & 90 on the various criterion. The estimated improvement in the clinical trial phases, particularly in phase 3 shows that the number of years could be considerably reduced from 3.5 to 1.5 which will be a significant achievement for our company compared to other firms operating in the healthcare industry. We could save $ 211,600 per trial as shown in the estimated saving slide which surely is a plus point in considering this decision.  The analysis shows that the savings from CRA monitoring visit itself will be $ 180,000 which is considerable as the CRA can then be involved in other productive work thereby reducing the intake of hiring new employees. It is impressive to see the total savings for P&G if EDC is implemented.

Considering the above facts in reducing the length of time in our clinical trials and achieve cost savings in future, I believe it is worth taking the risk to invest in the implementation of EDC. Improving our current paper-based system is worth discussing in greater detail, while we should rule out the alternative of digital imaging due to the massive investment costs of storage space. EDC seems to be an ideal alternative that addresses the problem and the symptoms we face currently; the other two alternatives seem to address only the symptoms. Once the sites and sponsors are well versed in the EDC system, the entire process will be more efficient and effective.

If you have any further questions, please do not hesitate to contact me.
 

1-888-JUNK-VAN Case Preparation


Marcus Kingo, founder of 1-888-JUNK-VAN, started operating its waste collection business in 2008 which rapidly grew in just a year’s time thereby required organizing its business process with a cost-effective IT system that would minimize information handling errors and retain its customer base. He realized the need to implement a fast, simple, reliable & affordable IT system to fit his virtual business model and organize his growing business.

Problem/Issue Statement

The key problem in this case is that as the business grew, the operational complexity, inefficiency & errors became a routine which led to decrease in customer satisfaction. Some of the symptoms negatively impacting the operations were due to the time consuming process of fixing the database errors by data clerk, contacting helpers and money collection, mistakes in customer contact information, forgotten e-mails, manual calculations of staff payroll and billing errors which lead to low customer service quality and loss of customers.
 
The scope of the problem includes every aspect of its business operations considering his virtual business model that does not allow for any physical office space, a flawed IT support system negatively impacts all processes and employees. Due to the company’s poor design of the IT infrastructure system and its inadequacies, personnel cannot efficiently devote their time to their daily tasks.
 
Situations Assessment
The context of the problem is looking at the inefficiencies that are apparent within JUNK VAN’s current virtual business model. Currently, the business runs in a structured manner with two call center operators, one data clerk, three drivers, and three helpers. The customer’s job requests come in via phone and later the information would be entered into a custom-built MS-Works database. From there, information would be communicated via e-mail to the morning and evening operators and ultimately to the drivers. Mr. Kingo wanted to maintain this virtual business and eventually move into franchising and growing. However he would like to have a central database and eliminate the manual process of e-mailing internal information.
 
The decision criteria to consider include the cost of the various alternatives to their current business model with MS-Work & the flexibility and ease of using the new IT infrastructure to be implemented as Kingo & his staff do not possess high level of IT knowledge and are not adaptable to changes within the industry. Other criterions discussed in the case are having vendor support and ability to implement this change at the earliest.

List of Plausible Alternative Courses of Action & Evaluation of Alternatives:

The possible alternatives mentioned in the case along with its evaluation are as follows:

1.  Microsoft Access Database: Upgrading from MS-Works to MS-Access would be affordable with each license costing $179 per computer.  A Microsoft Access platform would create one unified database that would replace the need for a data clerk to send out accurate details to morning operators as well as the task of drivers using templates to send information to the data clerk.  This solution would most likely be cost effective, depending on which option was selected, and could probably be implemented in a short time period. 

If Access was installed locally in several computers, Kingo could complete the installation himself within a few weeks however without allowing any remote access.  It could be installed on a shared server so the database could be accessed remotely, but Kingo would need to study the technical information in detail which would be time consuming or take professional assistance separately which would add a cost element in its operation.  The number of licenses in this situation would depend on the number of users working on the program concurrently. Hence this was not really an ideal solution in the future if the business kept expanding rapidly.

2. Custom application:  This web-based system is built as a completely customized application for the business. It would meet requirements of a central database and provide remote access as well as provide some basic functionality. It could be built within 4 weeks at an upfront cost of $2,000 and maintenance cost of $60 per hour, however with no exact knowledge of how much maintenance would be required.

A customized application would have the benefit of ideally solving all of the company’s IT requirements, such as automating e-mails and provide a central database that could be remotely accessed. However implementation of this option would be time consuming & the total cost would be difficult to estimate due to inability to predict how much maintenance would be required. Also quotes provided to JUNKVAN do not include data migration. Although this web based option would allow for remote access and meet functionality requirements, Kingo would not be able to assess whether the developer understood the business needs and whether the application is user friendly. Since there is a high potential for misalignment of requirements, future rework and support can become costly making this option a questionable choice.
 


3. Google Docs:  The online application allows quick creation and sharing of documents. It allows up to 10 free user accounts to create text documents, spreadsheets, and slide-based presentations.  Many individuals can simultaneously work in one file in a collaborative environment. This option is low in cost, easy to use, supports different user profiles, and could be implemented quickly.

While the implementation of this option is inexpensive and timely (considering if the company opts to use the small business option for $5 a month), and the collaboration and functionality would accommodate most of business requirements, it would not eliminate the problems accompanying management of a large database in a single excel spreadsheet. The database function could not be cross-referenced and all employees would still need to use one large spreadsheet with all data visible to all users.  Additionally, Google Docs does not have a formal customer support structure & has a potential security and sustainability concerns which need to be considered carefully. Hence this option is not that feasible for JUNK-VAN's business needs.

4. Platform as a Service:  This option, very similar to Google Docs, is delivered on a cloud-computing infrastructure and would provide network capacity as well as some basic functionality on demand through the Internet. Users could utilize common applications, build their own unique applications using a shared computing platform that is provided and hosted by a third party. The application is relatively easy to use and requires only three days to implement. Service package ranges from $300 to $600 per month depending on how much storage space and how many user licenses and applications are needed. Long term contracts are not required and service can be canceled or expanded at any time with a one month’s notice.
 
Platform as a Service could most likely meet all of the company’s IT needs and be available to do so within a timeframe as short as under a week. However this solution would require more hands-on IT knowledge to build forms and connect tables, which Kingo himself may not be knowledgeable enough to handle however he could use external IT services to overcome this obstacle. Before making a decision, Kingo needs to understand how much of a platform he wants and how much he is willing to pay. Any further customization to be done in the future to meet the company’s needs could cost $180/hour fee, therefore it is in his benefit to have a very good plan and design the requirements based on the easiness in the trial he observed with the sales representative.

5. Enterprise Resource Planning System: The ERP system is built around a central database that could be accessed remotely and integrate every aspect of the business processes like purchasing, sales, customer service, etc. The implementation cost is extremely high as licenses cost about $2500 per user per year with start-up fees being approximately the same as the complete annual license charge. License fees might even be higher considering that the estimates were for larger firms.
 
This option would potentially address the IT problems suffered by the company through a central database, though it is not completely clear that an ERP system could be applicable to the company itself.  Furthermore, the ERP system had finance & manufacturing modules which may not be useful to JUNK-VAN’s specific business needs as well as any future needs as the company and industry grew. The excessive costs and rigidity of the system indicates that an ERP system would not likely address the company’s key problem.

Recommendation
Based on the above alternatives, a logical and quality recommendation is that JUNK-VAN upgrade from MS-Works to a Platform as a Service as it will help in the best resolution of its current problems in IT system.  Using a Platform as a Service model would allow the company to meet all of Kingo’s desires for a new IT system such as automated e-mailing and a remotely accessible central database.  Although the new system would require more IT knowledge than an already established system like MS Access, Kingo was fairly certain based on the demonstration from one of the vendors that he would be able to perform the requisite setup tasks himself.  The option is slightly more expensive than some of the other alternatives, but its viability in the long run by being fully customizable will save the company any fund needed to update from an outdated system.  Vendor support for PaaS is much better than other options like Google Docs and as the firm expands to other areas through franchising this customer support will be very helpful in accommodating new employees.  The PaaS architecture should minimize errors, mitigate time delays, and allow for the custom needs that the company’s situation demands. 

Presentation
For the purpose of presentation, I would highlight the current problem faced by JUNK-VAN & further provide a balanced perspective of all the alternatives and give equal weight to each of the choices. In this case I would use a tabular format to explain the pros & cons for each of the alternatives along with the weights for the different criterion useful to the company as per Kingo’s ideal IT solution. The consulting group should determine which factor, whether it be cost, ease of implementation, or product flexibility, which is the most important aspect in the decision making process.  Only by choosing one or two variables as the most significant factor can the consulting team evaluate which solution would best meet 1-888-JUNK-VAN’s needs. This type of presentation will ease the decision making process. I would also highlight, when making the IT system choice, that while it is great to have control of one’s business, Mr. Kingo will benefit from relying more on a robust business solution so that he can focus his efforts on applying his entrepreneurial skills and grow the waste collection business.

Monday, June 16, 2014

Business Impact Of Visio

To: Cathy Miller
From: Nikita Patel
Date: June 16, 2014
Subject: Business Impact of Microsoft Visio - Memorandum

Hello Cathy,

This memorandum is regarding the business impact that Microsoft Visio tool can create on our firm. As a reputed financial service company, we are always looking for efficient ways to keep the business operations expand rapidly. As per our discussion last week with regards to increasing efficiency and saving time of employees across the departments, I was exploring the various benefits Microsoft Visio can add to our work environment. After meeting the various department heads in our company, we noticed that a professional visual presentation makes a significant impact in planning, executing, controlling, and organizing a business to grow. It allows company personnel to prepare flow charts, diagrams and tables, which can be incorporated into presentations, training slides or company wide meetings in a simplistic manner.
No doubt we have charts created manually on Excel or Word, however they do not always create a similar look that Visio does. The workflow charts created through Visio makes the process much easier for a new employee to interpret rather than just hearing about the process flow from their fellow colleagues which in turn results in not being able to understand the entire business operation. Understanding a client's flow of information makes Visio a value add for our enterprise & ultimately help to shape a view of how the decision making process might flow through the organization; however keeping track of this detail in different excels & word documents can become quite cumbersome at one point.
The important features that we need for our company is creating live trading dashboards using data-linked diagrams from the spreadsheets connected to Bloomberg terminal. This will help the product analyst in developing effective financial models to evaluate new product on real-time basis.  The benefit of having Visio is a significant increase in return on investment (ROI). We currently require eight hours each to familiarize with the latest version of Visio, and the work that can be completed by Visio Process Template generate an average of 80 hours of billable time, per project. In the first year itself, we can achieve a nine times return on our investment in training, adjusted for inflation.  Another benefit is increase in revenues by letting clients know about refining their business processes. The easier it is for clients to use and collaborate on Visio diagrams, the more likely they are to come back to our firm for further business. It can add value to selling our products because institutional clients can easily collaborate their diagrams after they have been published on SharePoint. This gets the interaction going and soon they will be coming to us for help in process automation and to build additional SharePoint workflows. It is estimated that as each engagement with a Visio component will increase the billable revenue by more than 40 percent.
We have used Visio in the past to create the organizational hierarchy based on a spreadsheet of data pertaining to client contact list, and by doing so we have identified the geographic blocks in the clients decision making process based on the outdated practices and an executive movement due to new assignments. As soon as there was an executive movement, we were able to quickly update the organizational charts and decision making chart based on the changes. The ability to produce real-time charts and better understand the flow of information through the client's decision making process increases not only the number of opportunities that we come across, but also improves our working relationship with client executives because we bring them the information that is applicable to them at the appropriate stage of the process which makes everyone's job easy. Having information like the organizational hierarchy, and or business process diagrams readily available is critical to our firm's ability to effectively sell and position for new opportunities with our clients. After discussing the above benefits with several department heads, the suggested course of action we came up is to buy Visio which will cost us a $500 additional expense, however it will add a professional touch to our presentations and the data available on our company website which cannot be quantified in monetary terms as of now since it will be an ongoing quality benefit a company can have.
Please advise if you would like to discuss on this memorandum in detail; we can set up a meeting at a convenient time this week.
References:


 

P & G Case Preparation

Case Study: P & G – Electronic Data Capture and Clinical Trial Management
 
Problem/Issue Statement
Proctor & Gamble’s Health care division faces significant delays within its clinical trial management process. P&G needs to identify a strategy to its existing paper based process to reduce the length of time it takes to complete clinical trials for prescription drugs. The FDA requirement for clinical trials can take several months to years to complete. The faster the prescription drug can be put on the market, the quicker P&G can begin to earn a profit. It has been mentioned that for each day the drug is delayed, it causes the sponsor about $1 million in lost sales. Therefore, the problem statement for P&G is
How to effectively reduce the time it takes to get the prescription drug through trials while ensuring an accurate data collection process and satisfy all parties involved in the workflow process?
 
The problem is that the existing paper based data collection process is lengthy and the symptoms of the problem is the current process which is time consuming & involves the double entry of data, as well as an additional review of entries if discrepancies are found in original entries by the CDMs, which leads to the significant lag time in sending and receiving the data that is associated with using a paper based approach.
 
The scope of the problem is to find the exact reasons for time lags in clinical trial methodology.  This process needs to be reviewed from start to finish for reducing the length of time and inefficiencies with the data.
 
Situation Assessment
The context of the issue is the paper-based system of clinical trial management, where all the patient information is kept in hard copy format. This current process is slow due to double-entry for each page which costs $6 to $9 per CRF form (consist of 50 pages per patient) & ultimately causing significant delays in the prescription drug before entering the market.  
 
P&G decision criteria is to assess alternatives that reduce the time it takes to enter patient information into the database in the most cost efficient way, so as to avoid double entry and also consider the duration of time from the final patient visit to the data-lock. If there are less inconsistencies and errors, the time would be reduced.  Paper form documents move slowly through the departments which also causes delays. P&G can utilize the Web-enabled electronic data capture (EDC) to address the reduction of data entry time.  However, P&G needs to assess the cost of implementing this process including the long term benefits of a significant learning curve to operate the system and ensure cooperation by the investigator sites where the trials are conducted.
 
List of Plausible Alternative Courses of Action
P&G has three options in addressing the reduction of time to data lock and the inefficiency in its current process:
 
Improving the paper-based process: This option will allow P&G to use express mail shipments from investigator sites which address the time delays in receiving the hard copy forms from the investigator sites.
 
Digital imaging process: It uses the same paper-based system but transmits the data from the sites to sponsors via faxes. The faxes are stored in the system and double-entry clerks, use digital images to prepare the CRFs. This is in addition to maintaining hard copy forms in patient binders. This alternative also reduces the amount of time in receiving the hard copy forms from the sites. However, this is solely dependent on the sites ability to fax the documents to the sponsor in a timely manner.
 
Web-enabled EDC: It allows data to be entered into the data management system directly from the investigator site via the Internet. EDC has pre-defined validation rules in place to immediately identify potential errors. The EDC system is accessible by the sponsor who can view data immediately after it is entered.
 
EDC process addresses most of the problems P&G faces; the paper-based system, the errors and inaccuracy when entering data from hard copy forms, the double-entry process, the movement of physical forms from sites to sponsor and ultimately the reduction in time needed to enter the data-lock phase.
 
Evaluation of Alternatives
The three options have advantages as well as potential costs that need to be evaluated.
 
To improve the paper-based process by using express mail on a daily basis, it will increase the head count for site monitoring and source-data verification, thereby increasing the cost to the company.   These costs need to be considered because the sites can be in geographically located across the globe; hence employee costs like salary, benefits and overtime will increase for the company. There is no learning curve associated with this alternative as everyone is familiar with the paper-based system. However, this process still does not address the human errors and data entry inaccuracy.
 
The digital imaging process will require additional storage space on servers for over 10,000 patients digital forms, which can lead to increasing the amount of memory and capacity & in turn additional cost on a regular basis. This process is only as efficient as the sites ability to transmit the digital images to P&G. If the site is experiencing delays, P&G will be delayed. The only learning curve will be for the sites’ employees to transmit the data via fax.
 
The EDC system would aid in expediting the data verification process to the data-lock phase & enables a significant learning curve by both P&G employees and the sites employees. The employees will need to be well accustomed in operating a computer and navigating the Internet. The data gets filtered by pre-defined validation rules thereby eliminating the double entry system & alleviating errors. However an additional issue with EDC implementation is slow connectivity when entering the data. The immediate accuracy checks in place will slow the process since they need to be addressed prior to moving on. CRA's were able to reduce the number of physical visits to the sites as they could access information from EDC and inform the errors at investigator sites.  

P&G can be imaginative in its decision making process however it needs to be realistic of the situation. P&G should not choose an alternative that addresses one issue within the clinical data management process; the alternative should address the majority of the issues or all of them. P&G should look at the long-run and future, not just the present situation.
 
Recommendation
A logical recommendation would be to choose the alternative that would cut the most time since that is the biggest problem here, but the quality recommendation would also include the actual costs associated with each alternative.
 
Based upon the facts of the case study, the recommendation for P&G would be to implement the EDC system. This is the only system that addresses the problem and the symptoms; the other two alternatives only address symptoms. Once the sites and sponsors are well accustomed to the EDC system, the entire process will be more efficient and effective.
 
As described in the trial, the EDC system greatly reduces the errors and inaccuracies of human data entry and completely eliminates the double-entry system.  During the first few trial of the EDC, the duration of time from the final patient visit to data-lock improved from eight weeks to a mere four weeks. There was also an improved quality of patient data, since errors were being addressed throughout the process.
  
P&G also could reduce the frequency of site visits by CRAs which will significantly reduce travel costs.  In addition, the CRAs and CDMs responsibilities made them more interactive, which helped P&G employees have a better understanding of the EDC functions.
  
Presentation
The best way to present the case is to go through the clinical trial process and why it was taking P&G so long to complete a trial.  Some good visual aids may show the actual millions of dollars that are being lost during the process.  Selling the recommendation will rely on proving the best alternative that saves time and does not add significant costs to the process, as for every day the drug is not available on the market, it is estimated to cost the sponsor $1 million per day. The process is not only faster and cheaper in the long term, but it is also very secure and precise. This could be related to the visual aid showing the amount of money being lost with a comparison showing how much more money the company could be earning when cutting time in half.
 
Visual aids to be used in presentation are:
·         PowerPoint presentation explaining the advantages and drawbacks of three alternatives;
·         Cost analysis of the current paper-based system versus the cost analysis of the EDC system.
·         Develop flow charts for each of the alternatives to show how efficient is the web-based EDC.
 
Finally, other delivery consideration to keep in mind is the facts/evidence of using EDC in the initial phase; i.e. obstacles which include employee training, the site’s access to computers, slow connectivity issues etc. and most importantly the cost to implement EDC should be considered along with the calculating the sum of present value of future cash flows to implement the project.