7S framework of effective Strategy Implementation (Retail Strategy 15.06.2021)

7S framework of effective Strategy Implementation

The 7 factors are divided into two groups:

The Hard S (strategy, structure and systems) and

The Soft S (style, shared values, staff and skills)

1. Strategy

The strategy – or the plan of the business to achieve competitive advantage and sustainable growth – must be long-term and clearly defined. It must indicate a direction that leads to the attainment of objectives. When you take the organization’s mission and core values, the strategy should also be in line with them.

2. Structure

The organizational structure must be visible to everyone, and clearly identify how the departments, divisions, units and sections are organized, with the lines of authority and accountability clearly established.

 

3. Systems

There should be a clear indication and guide on how the main activities or operations of the business are carried out. The processes, procedures, tasks, and flow of work make up the systems of the organization.

4. Style

This addresses the management or leadership style in force within the organization, from top management to the team leaders and managers in the smaller units. Strategy implementation advocates participative leadership styles, and so this is really more about defining and describing the interactions among the leaders in the organization and, to some extent, how they are perceived by those that they lead or manage.

 

5. Staff

Organizations will always have to deal with matters regarding staffing. Human resources, after all, is one of the most important assets or resources of an organization. Thus, much attention is given to human resource processes, specifically hiring, recruitment, selection and training.

 

6. Skills

Employees without skills are worthless resources to the organization. In order to aid the organization on the road towards its goals, the employees must have the skills, competencies and capabilities required in the implementation of strategies.

 

7. Shared Values

This refers to the standards, norms and generally accepted attitudes that ultimately spur members of the organization to act or react in a certain manner. Employee behaviour will be influenced by these standards and norms, and their shared values will become one of the driving forces of the organization as it moves forward.

 

Usually, organizations may take a look at each of these key success factors for individual analysis. All seven prerequisites are interconnected, which means all seven must be present, and they must be effectively aligned with each other, in order to ensure effective strategy implementation, and overall organizational effectiveness.

What are the Factors to Consider When choosing ERP Software? (MIS 15.06.2021)

What are the Factors to Consider When choosing ERP Software?

Suppose you already weighed the cost-benefit ratio of getting an ERP, and you’re convinced it’ll drive overall profitability. You now need to consider these key factors to ensure you optimize your ROI.

 

1. Upgrade vs. Replacement.

Evaluate first if you need to get a new ERP system or just an upgrade. Many ERP solutions today are modularized. You can simply integrate a module, for instance, payroll, with your current applications. This way, you minimize disruption and costs. But if your ERP system is ten years or older, it may be wise to replace it. You can leverage today’s ERP solutions for mobility, integration, scalability, and deployment options. Similarly, machine learning, predictive analysis, and advanced reporting are pushing ERP to the next level.

 

2. Training and Setup.

On-premise ERP solutions need to be installed by someone with technical know-how. If you lack a tech team, make sure you understand your service level agreement. Installation is often charged separately from the license, but some vendors offer all-in bundled plans. For SaaS ERP, setup is as easy as activating an account to access the vendor’s server. Likewise, ERP is more complex than most business solutions, so it requires user training. Does your vendor provide this service? Whether bundled in or exclusive to the plan, the kind of training you’ll receive should serve for average users to adopt the system.

 

3. Reporting and Dashboards.

Go beyond spreadsheets and PDF exports. ERP solutions today feature advanced reporting that can generate compliant financial statements based on your region. The latest ERP reporting tools also allow in-system queries and smart filters, coupled with real-time data. Likewise, look for agile and ad hoc reporting to quickly adjust to evolving business needs and disruptions. Dashboards, on the other hand, should let you mash up quantitative vs. qualitative data at user, role, and department levels. Look for the standard dashboard function of displaying KPIs (Key Performance Indicator) with drill-down links.

 

4. Integration.

ERP should work seamlessly with your existing business applications. There are several integrations points you need to consider from top to bottom. These include system-to-system (example, ERP to your existing CRM or HRMS), module-to-system (example, ERP payroll to your existing HRMS), and file transfer capabilities (example, exporting/importing PDF, JPG, DOC, CSV files). An ERP with flexible integration can work with existing infrastructure, expand its functionalities or, in fact, replace it while ensuring smooth records and file migration.

 

5. Customization.

Aside from ensuring the ERP processes match your key business workflows, look closely at your departments. They may have different priorities and cultures, which may even be contradictory. For example, marketing spends, while accounting saves, or production lives by daily output, while sales live by monthly quota. All these lead to uncountable workflows that won’t fit into a one-size solution. Look for an ERP solution with customization tools, localized dashboards, and configurable workflows, among others, that allow departments to define their goals and set the ERP based on their parameters.

Why does a business need an after-sales process in place? (Service Marketing 15.06.2021)

Why does a business need an after-sales process in place?

After-sales service is an important part of modern-day businesses and it is important for both the buyer and the seller. 

A. For a buyer, after-sales service plays an important role to ensure the maintenance of the product. It also strengthens the buyer’s trust in the business. 

 

B. For a seller, after-sales service brings in a sense of satisfaction and helps them make sure that they stay at par or ahead of their competitors

 

Here are a few reasons to understand why should a business have a proper after-sales strategy in place:

1. Good start to customer retention

As soon as your customers make a purchase, they enter this loop of retention. Remember, a happy customer is the best marketing asset you can have. Be by your customer’s side at each step like installing a device, setting up the furniture, getting the car road-ready and so on. 

 

2. Boosts customer’s trust and loyalty

Imagine you run a business that sells a device to measure your blood pressure and pulse rate. After a customer buys the device, how about calling them within a week and asking them if they have successfully set up the device or need some help. If not, helping them in-person or over a call for this. Usually, the older age group finds this difficult. Just a soft nudge can do a lot for your business here. 

 

3. Increases chances of referral

If you let your customer leave with a wide smile from your store or your website and let that smile last long, that customer can at some point be labelled as an unofficial brand ambassador of your brand. Even after all the advancement and success in digital marketing, nothing beats the power of word-of-mouth. One satisfied customer can bring you 10 or more customers with zero money spent from your end.

 

4. Adds to the brand value

Humans are seen to get emotional with brands. An experience worth remembering can not only help you get a brand evangelist but also make them keep you on top of their mind. They will increase a connection with your brand and will keep them coming back to you.

 

5. Thanking your Clients Immediately After their Purchase

If your customer has just made a purchase then they deserve a thank you, whether by sending an automated email after their purchase or a thank you note added to the invoice (especially if it’s written by hand). You make your customer’s experience more attractive and you show that he chose well by doing business with you. In addition, with the name of a person to contact in case of questions, you reassure the buyer that your company is doing everything they can.

 

6. Contact your Customer After 1-2 Weeks

One or two weeks after the purchase, it is advantageous to contact your customer to ask them if they are satisfied, received good service or if they have any questions. This contact serves only as a mark of attention, not to sell them more. The goal is to know his appreciation of the product or service sold.

 

7. Maintain Communication

You can continuously maintain communication with your client by sending an e-newsletter to inform them about topics that affect them, or by offering information through articles, videos, guides and webinars to help advise them on needs. You will show, by maintaining communication, your professionalism and expertise. If you give them all the information they need, they will be much less likely to go elsewhere.

 

8. Suggest a Second Sale

Now that your customer has confidence in you, it’s the time to offer another sale. Offering them a new product, service or something related to their previous purchase.

 

9. Ask for Recommendations

If your client appreciates you, there is no reason not to recommend you. Happy customers will be eager to help you offer your services or products to those around them. Their opinion will be more taken into consideration than an advertisement.

On the web, there are several ways to provide after-sales services to your customers, including newsletters and email marketing. With an automated sequence of personalized emails, you can easily follow-up with your customers and will give you the best chance to retain them and make other sales.

FACTORS THAT SUPPORT STRATEGY IMPLEMENTATION (Retail Strategy 14.06.2021)

FACTORS THAT SUPPORT STRATEGY IMPLEMENTATION

Effective execution of strategies is supported by five key components or factors. All five must be present in order for the organization to be able to carry out the strategies as planned.

 

1. People

There are two questions that must be answered: “Do we have enough people to implement the strategies?” and “Do we have the right people in the organization to implement the strategies?”

 

The number of people in workforce is an issue that is easier to address, because we can hire additional manpower. The tougher part of this is seeing to it that we have the right people, looking into whether they have the skills, knowledge, and competencies required in carrying out the tasks that will implement the strategy.

 

If it appears that the current employees lack the required skills and competencies, they should be made to undergo the necessary trainings, seminars and workshops so that they will be better equipped and ready when it’s time to put the strategic plan into action.

 

In addition, the commitment of the people is also something that must be secured by management. Since they are the implementers, they have to be fully involved and committed in the achievement of the organization’s objectives.

 

2. Resources

One of the basic activities in strategy implementation is the allocation of resources. These refer to both financial and non-financial resources that

(a) are available to the organization and

(b) are lacking but required for strategy implementation.

 

Of course, the first thing that comes to mind is the amount of funding that will support implementation, covering the costs and expenses that must be incurred in the execution of the strategies.

 

Another important resource is time. Is there more than enough time to see the strategy throughout its implementation?

 

3. Structure

The organizational structure must be clear-cut, with the lines of authority and responsibility defined and underlined in the hierarchy or “chain of command”. Each member of the organization must know who he is accountable to, and who he is responsible for.

 

Management should also define the lines of communication throughout the organization. Employees, even those on the lowest tier of the organizational hierarchy, must be able to communicate with their supervisors and top management, and vice versa. Ensuring an open and clear communication network will facilitate the implementation process.

 

4. Systems

What systems, tools, and capabilities are in place to facilitate the implementation of the strategies? What are the specific functions of these systems? How will these systems aid in the succeeding steps of the strategic management process, after implementation?

 

5. Culture

This is the organizational culture, or the overall atmosphere within the company, particularly with respect to its members. The organization should make its employees feel important and comfortable in their respective roles by ensuring that they are involved in the strategic management process, and that they have a very important role.

 

A culture of being responsible and accountable for one’s actions, with corresponding incentives and sanctions for good and poor performance, will also create an atmosphere where everyone will feel more motivated to contribute to the implementation of strategies.

These factors are generally in agreement with the key success factors or prerequisites for effective implementation of strategy. These success factors are a tool made to provide answers for any question regarding organizational design.

 

The emphasis of the framework is “coordination over structure”, which also supports how strategy implementation is described to involve the entire organization and not just select departments or divisions.

 

 

What Does ERP Software Do? (MIS 14.06.2021)

What Does ERP Software Do?

ERP can be fully integrated or customized to specific processes. A typical ERP system covers key business processes and consists of the following modules:

 

1. HRM (Human Resource Management)

This module features standard HRMS tools like time tracker, timesheet, and database for employee records, job profiles, and skills matrix. HRM modules may also include performance reviews and payroll systems. The HRM is closely integrated with the financial management module to manage wages, travel expenses, and reimbursements. Some ERP solutions also feature a training or LMS (Learning Management System) function under HRM.

 

2. Financial management.

This module manages organisation’s capital inflow and outflow. It covers standard accounting and finance transactions like expenditures, general ledger, balance sheet, bank reconciliation, tax management, and payments. This also generates financial reports for different departments and business units.

 

3. Sales and Marketing.

This module handles sales workflows like sales inquiries, quotations, sales orders, and sales invoices. The more advanced ERP also features taxation rules and shipping tracker. The Sales and CRM modules work together to speed up the sales cycle and earn the company more profits.

 

4. CRM (Customer Relationship Management)

The CRM module helps us to boost customer service and, eventually, profit per capita. It manages leads, opportunities, and customer issues. Likewise, it provides a 360-degree profile of our customers by consolidating data like their social media activities, purchase history, and past interactions with support reps. In an ERP setup, CRM is closely integrated with the Sales module to fast-track conversions.

 

5. Manufacturing.

Sometimes referred to as engineering or production, this module helps businesses make manufacturing more efficient in areas such as product planning, materials sourcing, daily production monitoring, and product forecasting. Some of the key functionalities in this module are the bill of material, production scheduling, shop floor control, and distribution planning. The module is tightly integrated with SCM and inventory modules, especially in areas like product planning and inventory control.

 

6. SCM (Supply Chain Management)

This module covers key aspects of your supply chain, including purchase order management. It manages product flow from production to consumer and, occasionally, vice-versa for returns or recalls. A key feature of the SCM module is process automation, which streamlines your entire supply chain and makes it adaptive to sudden market shifts.

 

7. Inventory

Also called material management module, it helps you measure stock targets, standardize replenishments, and other inventory goals. It uses product serial numbers to track and locate items in your organization. This module is closely integrated with the Purchase module.

 

8. Purchasing

This module manages the processes involved in materials procurement. These include supplier listings, quotation requests and analysis, purchase orders, Good Receipt Notes, and stock updates. As such, it functions closely with SCM or Inventory modules.

 

In addition to these basic functions, there are more advanced ERP platforms that also include business intelligence, asset management, and ecommerce.

 

Moreover, ERP can be vertical with industry-specific features for, among others, retail, healthcare, government, and non-profits.

How to identify opportunities on after-sales services (Service Marketing 14.06.2021)

How to identify opportunities on after-sales services

After–sales service is a key element for many companies. Every time a sale takes place, we have the opportunity – or the obligation, depending on how we look at it – to offer customers a service. By taking advantage of this opportunity, we gain a better understanding of our customers’ needs and motivations.

 

The objective of after-sales service is to build a relationship of mutual trust and knowledge with our customers in order to ensure their continued satisfaction. At the same time, generate new sales opportunities.

 

In fact, from this perspective, a sale is a process that never ends.

 

After-sales strategies can be divided into two types.

The first are activities focused on the product, which we call technical services.

The second type are activities that focus directly on the customer, which are purely sales-oriented.

(A) Product-focused opportunities

Some examples of opportunities focused on the product or on technical support are:

 

1. Product installation: operations required for product setup are often the first point of contact with our customers and therefore can define their first impression of us. These can also be a way to identify new sales opportunities.

 

2. Repairs: these services may or may not be included in the initial price. In terms of opportunities, here we can establish different types of contracts with different levels of coverage or options in order to meet the needs of customers in various market segments.

 

3. Periodic maintenance: periodic visits to keep the product in good working condition give us an excellent opportunity to continue improving our relationship with the customer. These can include for example systematic inspections, cleaning, or part replacement. Through these visits, we can continuously demonstrate the quality of our service and the added value we offer the customer. They are also another excellent chance for us to identify new sales opportunities.

 

We can see then that technical services offer us an excellent opportunity to develop and improve our relationship with our customers.

 

(B) Customer-focused opportunities

Among the customer-focused opportunities or business services opportunities, here are some examples:

 

1. Complaint management: this can be a decisive point, as customer satisfaction is at stake when we are dealing with any complaint about the product or service. Sometimes this can be the difference between keeping a customer and losing one.

 

2. Training in the use of products: in this case the service must be simple and personalized in order for the customer to get the most out of our product.

 

3. Promotional campaigns: these include strategies such as discounts, offers, events, or mailings. These are campaigns tailored to our customers, with an emphasis on segmentation. The opportunity in these cases is to be able to relate them to the rest of examples already analysed.

 

4. Loyalty: finally, and perhaps most importantly, all actions aimed at customer loyalty are the key to making the customer aware of our interest in them and to finding out how we can improve. We have a number of tools available for this purpose, such as surveys, applications for further information, or periodic visits.

 

We can see then that by using strategies focused on the customer as well as those focused on the product we can increase the effectiveness of the after-sales area, maximize its strategic position within the company, and generate more profits.

After Sales Service Examples (Service Marketing 12.06.2021)

After Sales Service Examples

The rise of competition in every industry has resulted in the rise of various types of after-sales services that are both customer and niche specific. Here are some examples of the best after-sales services offered by top brands.

 

1. After Sales Support – Lenovo Vantage

Lenovo is a famous computer and laptop brand that offers after-sales support in the form of Lenovo Vantage – an application pre-installed in Lenovo devices to help users update their drivers, run device diagnostics, request support and discover apps.

 

The application makes it easy for the users to diagnose the problem with their system and even connect with the Lenovo help centre from the same application if they face any difficulties.

 

2. Guarantee and Warranty – CamelBak

Camelbak deals in adventure products like backpacks, bottles and accessories. The company boasts the quality of its products and to prove this, provides after-sales support in the form of The Got Your Bak™ Lifetime Guarantee scheme.

 

3. User Training – GetResponse Courses

GetResponse is an online platform providing solutions for email marketing, landing page, webinars hosting and more. As a part of its after-sales service, the company provides its customers with specialised courses that help them learn the importance and intricacies of the online marketing techniques and how they can use the company’s offering for the same.

 

4. Free Installation – Air Conditioner Retailers

Air conditioner brands and retailers often offer a free installation service to customers. This service is usually charged for when ordered otherwise.

 

5. Return & Replacement – Amazon

Amazon, to enhance customer satisfaction and boost online sales, offers a free return and replacement service where the customers can return and/or replace the products if they don’t meet their expectations. This after-sales service strategy has really helped Amazon in tapping new markets that were devoid of ecommerce.

 

6. After sales service

After sales service refers to the treatment of customers in the aftermath of a sale. For example, after being sold a bike, after sales service may involve free bike maintenance for a number of weeks.

 

After sales service is an important part of non-price competition often found in oligopoly. After sales service can be a way to encourage people to buy the product in the first place; it can be used to justify a higher price for the good. It also influences the long-term reputation of the firm and can influence future sales. However, it also imposes costs on firms.

 

Examples of after sales service

a) Warranty. A common example of after sales service is the provision of a warranty for the good. A warranty allows the good to be repaired or replaced if it breaks down within a certain period of time after purchase.

 

b) Free service after six months (e.g., car/bike)

 

c) Advice on how to use the product (Apple care)

 

d) Firms following up with a phone call to the customer asking how the product is working out.

 

EXAMPLES OR TYPES OF AFTER-SALES SERVICES

 

1. Warranty and Guarantee

A warranty expressed in a written document is a promise or guarantee made by a business to its customer that certain conditions, such as the quality and lifespan of the product, would be met. Depending on the provisions in the document, a product can be returned, repaired, or replaced if it fails to meet any of the promised conditions. Note that the difference between a warranty and guarantee is only a question of word choice.

2. Customer Support

Customer support is another type of after-sales service that collectively represents a range of services aimed at assisting customers. These services can include maintenance, troubleshooting, responding to feedback and inquiries, and assistance regarding proper product disposal. Customer support can be coursed through phone, the Internet, email, chat, social media, or on-site. The services can be provided through direct human interaction or automation.

 

3. Mailing List Inclusion

Somehow similar to customer support, a mailing list intends to keep communication and maintain a relationship with the customers. It involves a business sending customers regular messages to customers about new products, discounts, and other special offers via traditional mail, email, or other communication channels.

Note that a mailing list is not only a type of an after-sales service but also a specific example sales promotion, and part of marketing promotion through email marketing.

 

4. Loyalty Program

Although considered as an example of sales promotion,  a customer loyalty program can also be considered another type of after-sales service because it can help maintain a relationship with the customers and foster loyalty.

To be specific, a loyalty program features privileges, discounts, and special offers, among others given to customers beyond the point of sales. It is typically coursed through membership using a loyalty or reward card or via a mailing list subscription.

 

5. Freebies

Freebies can include free product samples or services related to a particular purchased product. Providing such overlaps with other examples or types of after-sales services such as warranty and guarantee, customer support, mailing list inclusion, and loyalty program. Specific examples include free repair within a specified period, cost-less delivery charge, insurance, product information such as manuals, and free complementary products, among others.