Study Document
Pages:6 (2284 words)
Sources:1+
Subject:Technology
Topic:Dell Computers
Document Type:Term Paper
Document:#57091883
Company-specific, sales, quote and order processes, customer service, and warranty and returns KPIs all reflect financial performance, over time, for any company. By measuring these KPIs and engraining them into the company culture, Citrus can create a sustainable differentiator in exceptional performance as well. The bottom line is that Citrus must turn accountable and measurable performance into a lasting competitive advantage over the long-term.
Analyzing Industry-Wide KPIs for PC Manufacturers
Areas of Measurement
Baseline: What is Measured
Industry Definition
Company-specific
Project costs and expenses
Use as a baseline for defining ROI
Number of orders per year
Determine configuration's impact on inventory turns
Current inventory and costs
Inventory turn savings
Customer Data
Lifetime cost per customer; avg. deal size by customer
Sales
Order cycle time
Order cycle times reduction of 35% or more recorded with mftrs contacted
Cost of Sales
Days Sales Outstanding reduction from 55 to 23 days on average
Cross-sell and up-sell revenue
Increase of 46% on aggregate
Average sales price per order
Increase from 7% to 29%
Quote and Order
Average costs to complete an order
91% reduction in cost per order
Special Pricing Requests
Over 92% ROI on automating Special Pricing Requests
Bad or incomplete orders
Incomplete order reductions of 30%
Customer Service
Number of customer complaints
89% reduction in cost of simple requests
Revenue lost to churn
69% when cross-selling is used with quote-to-order
Number of calls on order status
Median level of 15,000 per week to 200
Warranty and Returns
Reduction in warranty cost on customized products
14% reduction at a minimum
Labor cost reductions
Decrease order re-work from 18% to 1%
Distribution and Multi-Channel Management Strategy
As the O-Citrus laptop series is primarily sold to enterprise accounts, the primary sales channel will be a direct sales force who will call on CIOs and VPs of it, in addition being able to present to company boards of directors. While a direct sales force is expensive, this specific product and its unique attributes warrant the investment. Further, the unique value proposition of the O-Citrus laptop series centers on highly quantitative MTTF and MTTR calculations in addition to TCO measures, all of which must drive a positive ROI for customers. These are all essential aspects of selling into enterprise accounts and require training and an expertise with financial modeling in addition to in-depth knowledge of how systems work. Second, the direct sales force makes sense as a first phase of considering a reseller channel strategy to gain access into corporate accounts from relationships these resellers have.
Support and Services Strategies
As Citrus is primarily focused on the enterprise market, it is critical that service and support be made part of the essential part of the product launch. Support needs to be tiered with escalation paths for laptop compatibility problems and for break/fix workflows. Second-tier support needs to support Maintenance, Repair and Overhaul (MRO) workflows as well. These process workflows from the customers' standpoint need to be Web-based and accessible on a 24/7 basis.
From a services perspective, there is the need for having a dedicated, non-exclusive manager on each account to get projects completed on time and manage their services. In addition, for larger accounts there needs to be a dedicated, exclusive account manager assigned for both sales and service. The role of this manager on larger accounts is to ensure the largest customers stay with Citrus, and also work to up-sell them additional services. In addition to these two strategies, intensive training on the modularity, upgrades and self-service of the systems will be provided to enterprise accounts prior to product introduction.
References
AMR Research (2005) - the Handbook of Becoming Demand Driven. AMR Research Report October 6, 2006. Accessed with permission from the publisher. Lora Cecere, Roddy Martin, Debra Hofman.
AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retrieved from the Internet on May 4, 2008 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
Askegar and Columbus (2002) - Channel Management Best Practices: It's All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on May 1, 2008:
http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf
Columbus (2001) - Defining Your Direction in Guided Selling. AMR Research Report. October, 2001. Retrieved from the Internet on May 3, 2008:
http://www.lwcresearch.com/filesfordownloads/DefiningYourDirectioninGuidedSellin.pdf
Columbus (2002) - the Sell-Side E-Commerce Market: It's All About Integration. AMR Research Report. Monday April 1, 2002. Retrieved from the Internet on May 5, 2008:
http://lwcresearch.com/filesfordownloads/SellSideECommerceMarketIsAllAboutIntegration.pdf
Columbus (2003) - Squeeze the revenue out of your Special Pricing Requests. AMR Research Alert. Tuesday November 11, 2003. Retrieved from the Internet on May 7, 2008:
http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf
Dell Press Release (2000). Dell Announces "Premier Dell.com. Round Rock, TX: Dell Investor Relations.…
References
AMR Research (2005) - the Handbook of Becoming Demand Driven. AMR Research Report October 6, 2006. Accessed with permission from the publisher. Lora Cecere, Roddy Martin, Debra Hofman.
AMR Research (2003) - Configuration is the Heart of Customer Fulfillment for Complex Product Manufacturers. AMR Research Report. Monday March 31, 2003. Retrieved from the Internet on May 4, 2008 at http://lwcresearch.com/filesfordownloads/ConfigurationIstheHeartofCustomerFulfillmentforComplexProductManufacturers.pdf
Askegar and Columbus (2002) - Channel Management Best Practices: It's All About Orders. AMR Research Report. Monday September 9, 2002. Retrieved from the Internet on May 1, 2008:
http://lwcresearch.com/filesfordownloads/SqueezetheRevenueOutofSPRs.pdf
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