PSF Draft A. Project Title: Investigation into Sales Force Automation and Mobile Usability for the Development of Mobile Based Application for Fonterra Brands. B. Brief description of company background and structure. (i.e. description of the company for which the BIT system is for) 1.0 Company overview Fonterra sells and distributes to a large retailer base in Sri Lanka within 109 territories via 79 consignment agent’s distribution network serviced through 123 Sales Representatives. As stated by Abegunawardane (2010) on average, 1 Sales Representative will call on 47 Customers /Retailers per day, achieving on average 40 productive calls. 25 years have passed by since Fonterra brands first made entry to the Sri Lankan market. This land mark achievement of completing 25 years in Sri Lanka as the leader in dairy. From 80 MT in 1983 to over 23000 MT in 2009, Anchor has grown to be an icon in the market. From 2400 accounts serviced in 1984, today the distribution and geographical coverage Anchor is available over 75000 Outlets Island wide. Fonterra Brands Lanka has a strong commitment to our country. They employ more than 600 workers in the factory and also dealing with 3,000 local dairy farmers to help the farmers and development of the local dairy farming in Sri Lanka.
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PSF Draft
A. Project Title: Investigation into Sales Force Automation and Mobile Usability for the Development of Mobile Based Application
for Fonterra Brands.
B.Brief description of company background and structure.(i.e. description of the company for which the BIT system is for)
1.0 Company overview
Fonterra sells and distributes to a large retailer base in Sri Lanka within 109 territories via 79 consignment agent’s distribution
network serviced through 123 Sales Representatives. As stated by Abegunawardane (2010) on average, 1 Sales Representative will
call on 47 Customers /Retailers per day, achieving on average 40 productive calls.
25 years have passed by since Fonterra brands first made entry to the Sri Lankan market. This land mark achievement of completing
25 years in Sri Lanka as the leader in dairy. From 80 MT in 1983 to over 23000 MT in 2009, Anchor has grown to be an icon in the
market. From 2400 accounts serviced in 1984, today the distribution and geographical coverage Anchor is available over 75000
Outlets Island wide.
Fonterra Brands Lanka has a strong commitment to our country. They employ more than 600 workers in the factory and also dealing
with 3,000 local dairy farmers to help the farmers and development of the local dairy farming in Sri Lanka.
When Fonterra started as a joint venture between the Jones Overseas limited, a subsidiary of the maharaja organization and New
Zealand dairy board, at that time anchor share was only 5% where competitors enjoyed a commanding position of over 80% market
share. Currently in Fonterra Brands dominates the growing up milk category owning 54% of Sri Lankan market share.
Competitors include nespray, mailiban, highland, lakspary and milgro in the powdered milk industry.
Delight consumer through dairy products that are nutritious, innovative and taste great.
1.3 Behaviours
Fast, energetic, speed to market and innovative
Focused, consumer, customer and brand centred
Forward thinking, building a stronger business for the future
Abegunawardane, M. Evaluating the current business process of Fonterra brands. [Interview] Fonterra with B.I.Ali. 08th October 2010
2.0 Value Chain Analysis for Fonterra
2.1 Primary Activities
2.1.1 Inbound Logistics
The main input for the company can be identified as;
Receiving the raw materials (milk powder arrives in 25 kg bulk packets)
Handling local purchase of fresh milk ( milk from dairy farmers for the production of fresh milk)
Store the raw materials in the warehouse. (Biyagama), they use stock control system to manage the stock.
Handling receiving raw materials is an important activity for the company in order to produce their product to the market smoothly.
Therefore the company should pay much attention on these activities, because of that they have built a system to integrate with
suppliers to communicate their operations.
2.1.2 Operations
Fonterra brands operations include;
Converting fresh milk into milk powder with the use of new technology and using advance machines.
Quality assurance and testing of products.
Operation is the core part of the all processes of the company. Fonterra’s interest in providing attention on milk powder quality and
opening advance manufacturing units with latest technology shows the company is stable, and its long term benefits are secure.
2.1.3 Outbound logistics
Distribution of the final products to the consignment agents.
Distribution of the final products to retail shops.
Today Fonterra Brands are available in over 75,000 Outlets Island wide.
2.1.3 Sales and Marketing (the identification of customer needs and the generation of sales)
The key areas being analyzed in this project will be from this section because the project is mainly focused on sales. The sales channel
is handled using a push strategy. Marketing new products is also done at the point of when sales are conducted. The products are
promoted at this stage giving them clear guidelines on how beneficial products are and how they compare with similar products.
The organization has introduced their products to the customer through the following means;
Advertising campaigns
Promotions for end-users (Eg: Rathi Kiri Sarai Sarusarai 2008, Newdale Pressure Hunt 2009, Go while 2009 and Cleopatra
2010, these are the promotions from Fonterra for end-users.)
Promotion campaign for agents and sales representatives (Eg: Smile of victory 2009, Blue star2010)
Market research: Information systems would be able to analyze the market research of the company.
Because of the perfect strategy of sales and marketing Anchor dominates the growing up milk category with over 54% market share
and has became the leading product in the market today.
2.2 Secondary Activities
2.2.1 Firm Infrastructure Fonterra has many departments in there company such as, HRM, Sales, Operation, Finance and Marketing.
The organization uses software’s such as FINAC to support their daily transactions.
They have customized their operating system to protect the system from inside hackers.
Company uses dual firewall architecture to protect from outside hackers.
They use encryption decryption method for their data transferring.
The Company uses VPN to connect the head office which is in New Zealand.
2.2.2 HR Management
Fonterra believes that developing skills of the employees is a vital strength for the company. the following have been implemented in
terms of HR, within the organization;
Conduct training sessions for employees to develop their skills.
Competition among the field staff and the winners were offered Air tickets.
They have a separate database for employees to enter their records. Eg: Attendance, Performances and etc.
Finger print analysis has also been implemented to account for staff attendance.
2.2.3 Technology Development
For the first time in Sri Lanka, Fonterra introduced the FFS technology. FFS is a Form-Fill-Seal machine that will do bagging, filling,
sealing and encoding which are all completed within the same process. Furthermore, the powder plant implements machinery using
advanced technology which claims to create a critical hygienic area to protect produc6t quality. Fonterra invests in research and
development to introduce new products to Sri Lanka using the latest technology to mainly gain competitive advantage. Anlene UHT,
Anmum Lacta and Anmum Essential were all results of research carried out by the development teams.
The company has identified IT involvement to be operation critical. Therefore integration of systems and stepping into ERP
(Enterprise resource planning) solutions have been identified as additional support to increase the productivity of the company.
2.2.4 Procurement
Fonterra also uses procurement system to manage their works.
Gather information and feedbacks given by consumers, employees and consignment agents related to procurement activities For an effective production they will upgrade new machinery with new technology.
3.0 Proposed Value Chain Activities
The proposed value chain activities in order to achieve the above mentioned objectives
Inbound Logistics – It will be efficient and accurate for preparation and planning of costing.
Operations - Production will be efficient, therefore it will, help to increase the production. And also tracking the order is not
an issue anymore.
Outbound Logistics – retrieving information is not an issue anymore because the system will have an effective inventory
system.
Marketing and sales- This will improve widely the quality of the service provided.
3.1 Highlighted Value Additions
From the proposed system it will mainly improve Marketing and sales as shown above. It will cut down the costs such as paper,
storage and etc. Basically this system will improve the value chain activities and also improve the efficiency and accuracy of the sales
force.
C.Brief description of the BIT system objectives.(i.e. How is the BIT system going to add value? Efficiency, customer lock in, extension of business services?)
1.0 Current manual Process
The sales representatives send out e-mail orders to the head office when stocks are needed to be filled. The order is then approved and
the goods are delivered to the respective agent. The agent then supplies the items to the sales representatives to distribute and deliver
to the shops in a particular route of the city. The routes vary depending on popularity of product, development of city and many other
factors. Depending on the factors the representatives are to visit the routes once in 14 days, once in 10 days and once in 7 days. They
must each have a working time of 22 days per month. Each agent owns 2 delivery trucks which will be sent to each route with a sales
representative.
From there onwards the sales representative plays a huge role in the distribution and sales process. When the sales representative visits
a shop to conduct sales he must manually bill the products. There are 3 carbon copies in each bill-for the agent, sales representative
and the customer. At the end of the day the sales rep; finishes his duty and has to recheck the bills to correct the errors that might have
occurred.
A record must be maintained for all the shops that purchased the goods. To fulfil this purpose and to track loyalty of customers to
better improve CRM, a “master card” is used. With information of each shop visited within that route.
The sales reps; must maintain a daily call sheet which records the daily summary of the sales.
This call sheet is then sent to the head office via postal mail. It takes an estimated time of 3 days for the office to receive it. Once the
head office receives the sales summary for the particular route, it is then entered to their systems manually.
2.0 Key problems identified in current manual process
The sales reps; face a higher work load because they have to bill each shop , then check for errors in all the bills, make the sales
summary and fill in the master cards.
High amount of manual documents are being used. E.g. each bill contains 3 copies-for the agent, sales rep and the customer .
Therefore storage is a sizeable issue in this process due to the bills being produced and used.
The sales representative has to place the order via email for stock re-ordering. This process can be effectively reduced if the main
head office also has a concurrent mechanism to identify the stock levels under each agent.
On average manually a sales representative can only visit 7 shops per hour. This delay occurs due to the time waste in the billing
process.
In the traditional process, the manual work is more. The head office must manually enter each routes sales amount in to the
system. This can result in human errors and inefficient use of time.
Currently the summaries are being sent through postal mail. This can cause late decision making on behalf of the company. E.g.: If
a sales summary sheet is sent out on the 30th of this month, the company will receive it on the 3rd of the next month.
As stated by Liyanage(2010)The distribution management application was implemented in early 2008 to facilitate the consignment
agent’s activities. The secondary sales invoicing process at retailer end was not in scope for the implementation and continues to be a
manual process administered by the sales representatives using manual invoicing local support partner resulting in the following
issues.
As a result of the disconnect between the current system and manual sales invoicing process, the sales representatives cannot make
use of the system to provide them the required information at the point of sale and therefore perceive the system to be a non value
adding activity resulting in a lack of user initiative to ensure the system is updated on a timely and accurate manner.
The inevitable data entry errors caused by the volume of manual transactions generated by the 123 sales representatives which
exceeds approx 1.4 million sales transactions a month which need to be keyed in to system by the 94 agents computer operators.
Best practices are not consistently demonstrated / executed in the field.
E.Brief description of the research issues critical to the project and how you are going to find out about them.(e.g. literature and other sources of information etc.)
1.0 Research areas and Justifications
The main research areas that this project will be focusing on will be Sales force automation, personal digital assistants and mobile
usability. Sale force automation will be researched on because it is evident that an automation process is required to better
communicate with themselves and with customers to improve the efficiency of the current ordering and distributing process. The
mobile usability and PDA areas of research will help identify a more efficient approach and will go hand-in-hand will the SFA
research being conducted.
2.0 Resources
Kanwal N at el, 2009. Sales Force Automation And Organization Profitability. Sales Force Automation And Organization
Profitability: The Case of Unilever And Dalda Companies, Vol 5, 365‐373.
Cascio.R at el, 2010. adoption of sales force automation technologies. The impact of management commitment alignment on
salespersons' adoption of sales force automation technologies: An empirical investigation, Vol 1, 1088-1094.
Eun Park.J at el, 2009. How does sales force automation influence relationship quality and performance?.How does sales force
automation influence relationship quality and performance? The mediating roles of learning and selling behaviors, Vol 1, 1128-1136.
Honeycutt Jr.D at el, 2005. Impediments to sales force automation. Impediments to sales force automation, Vol1 , 1-9.
Koivula.L, 2006. Sales Force Automation. Sales Force Automation Systems - Critical Success Factors in Implementation and
Operation, Vol 1, 1-74.
Buttle.F at el, 2006. Sales force automation. Sales force automation: review, critique, research agenda, Volume 8 Issue 4, p.g 1-19
Gohmann.S at el, 2005. perceived information accuracy and user satisfaction. Salesforce automation, perceived information accuracy
and user satisfaction, Volume 20 · Number 1 , p.g 23–32.
Barker.R.M. et al., 2008. User acceptance of technology. Why is my sales force automation system failing, Vol 1, p.g 233-240.
Bush. A.J. et al, 2005. sales force automation outcomes. Understanding sales force automation outcomes: A managerial perspective,
Vol 34, 369–377.
Wright.G et al, 2008. Analysis of factors underpinning the sophistication of deployed systems. Sales force automation systems: An
analysis of factors underpinning the sophistication of deployed systems in the UK financial services industry, issue 37 , 992–1004.
Rangarajan.D et al, 2005. Effect of technology on end-user. Impact of sales force automation on technology-related stress, effort, and
technology usage among salespeople, Vol 34, 345–354 347.
Buehrer.R.E et al, 2005. Sales force automation (SFA); Customer relationship management (CRM). Sales force technology usage—
reasons, barriers, and support: An exploratory investigation, Vol 34, 389–398.
Morgan.A.J et al, 2001. Increasing Acceptance of Sales Force Automation. Technology and the Sales Force, Vol 34, 463–472.
Buttle.Francis, Ang.Lawrence, Iriana.Reiny, 2006. Sales force automation. Sales force automation: review, critique, research agenda,
Volume 4, Pages 231.
Gohmann, Stephan F.; Jian Guan; Robert M. Barker and David J. Faulds. Perceptions of sales force automation: Differences between sales
force and management. Industrial Marketing Management, Volume 34, Issue 4, May 2005, Pages 337-343
Honeycutt, Earl D. Jr; Tanya Thelen; Shawn T. Thelen and Sharon K. Hodge Impediments to sales force automation. Industrial Marketing
Management, Volume 34, Issue 4, May 2005, Pages 313-322
Schillewaert, Niels; Michael J. Ahearne, Ruud T. Frambach and Rudy K. Moenaert.The adoption of information technology in the sales
force. Industrial Marketing
F.Brief description of the business tools used and the functionality of the system being implemented.(i.e. which business tools will be used for analyzing the BIT system and why. Also what functions are you implementing in the prototype and what functions are you leaving out.)
1.0 Business tools
Business tools help identify organization strategies and analyze important factors in the external and internal environments of the
company. The main tools that will help the requirements stage of this project are shown below;
1. Porters five force model will be used to identify the external environments and to better understand the competitors tit he
organization
2. PEST analysis will help to identify and understand the potential opportunities and threat from the macro environment of the
business.
3. SWOT analysis will help identify the weakness and threats to have a clearer picture of the requirements of the company.
4. A Stakeholder analysis is important to apply to an organization of this nature, due to its tall structure and diversity of power
within different management personals. Opinions of the most powerful stakeholders can help shape the project and improve
quality of the resulting output.
5. Value chain model will help understand the current process for the primary research. the project will mainly focus on the sales
and marketing aspects of the primary activities in the value chain.
Business Resource Software, Inc. (2010) Michael Porter Five Forces Model. [Online]. Available from - http://www.brs-inc.com/porter.asp . [03.01.2011]
12Manage.(Sep 2,2010).Explanation of Porters five forces of Michael porters.[Online]. Available from -http://www.12manage.com/methods_porter_five_forces.html.[04.01.2011]
Functional requirements are the basic functionalities of the system.
The Sales Representatives should be able to enter the data (sales) into the PDA device.
The Sales Representatives should be able to sync the data to the main server located in the head office.
The PDA should be able to provide customer order details to the Sales Representatives
the Sales Representative should be able to enter and update call sheet details in to the PDA
the Management should be able to view summary reports and sheet reports on the system
The Management should be able to view sales information at any given time
2.2 Non-functional requirements
Graphical interface of the system should be user friendly and attracting
The security aspect of data exchange must be confidential and high.
Chances of failure should be minimized to ensure stability of system.
Quick response for the requests
Able to store large amount of records
3.0 Commercial version requirements
3.1 Functional requirements
Inventory management should be available
Scheduling of distribution for the sales representative
Demand forecasting should be available through obtaining data and allowing management to use them.
3.2 Non-functional requirements
Risk management plan for the system should be implemented
User manual to understand the system should be available
database backups should be automatic
G.What are the tasks you are intending to carry out and how are you going to ensure that your system and process re-engineering is complete and accurate?
Work breakdown structure
1.0 Inception (6 Weeks)
1.1 Introduction
1.1.1 Project Overview (3 days)
1.1.2 Company Overview (2 days)
1.1.3 Company Structure (2 days)
1.1.4 Company Hierarchy (1 day)
1.2 Problem Statement (7 days)
1.2.1 Problem Overview (4 days)
1.2.2 Project Scope (3 days)
1.2.2.1 Constraints (1 day)
1.2.2.2 Limitation (1 day)
1.3 Project Plan (5 days)
1.3.1 Resource Allocation (3 days)
1.3.1.1 Hardware resources (1 day)
1.3.1.2 Software resources (1 day)
1.4 Requirement analysis (2 Weeks)
1.4.1 Primary Research (14 days)
1.4.1.1 Conducting Interviews (6 days)
1.4.1.2 Carrying out Questionnaires (10 days)
1.4.1.3 Conducting Observations (4 days)
1.4.1.4 Document Review (2 days)
1.4.1.5 Justification for the methods selected (3 days)
1.4.1.6 Identifying the proposed system requirements (4 days)
1.5 Submission of the Project Specification Form (PPF)
1.6 Approval of the Project Specification Form
2.0 Elaboration Phase (5 Weeks )
2.1 Conducting the Secondary Research.( 3 Weeks )
2.1.1 Researching about Sales Force Automation (14 days)
2.1.2 Researching about Personal digital assistants (7 days)
2.1.3 Researching about Mobile usability (7 days)
2.2 Business Analysis (1 week)
2.2.1.1 PESTEL Analysis (4 days)
2.2.1.2 SWOT Analysis (3 days)
2.2.1.3 Value Chain Analysis (2 days)
2.2.1.4 Porters Five Force Analysis (2 days)
2.2.1.5 Stakeholder Analysis (3 days)
2.3 Technology Research (1 week)
2.3.1.1 Selecting the Development tools selection (2 days)
2.3.1.2 Selecting the Development language(2 days)
2.3.1.3 Selecting the Development methodology(2 days)
2.3.1.4 Selecting the suitable Database selection(2 days)
2.3.1.5 Identifying hardware and software requirements(2 days)
2.4 Proposed System (2 weeks)
2.4.1 Objectives (7 days)
2.4.2 Requirements specification (7 days)
2.4.2.1 Functional requirements
2.4.2.2 Non-functional requirements
2.5 Midpoint Submission
2.6 Design ( 1 Week)
2.6.1 UML Diagrams (2 days)
2.6.1.1 Use Case Diagrams
2.6.1.2 Activity Diagrams
2.6.1.3 Sequence Diagrams
2.6.1.4 Class Diagrams
2.6.1.5 Screen Interface Designs
3.0 Construction (10 weeks)
3.1 First Iteration (6 Weeks)
3.1.1 Initial Coding
3.1.2 Initial Testing and compiling
3.1.3 Identifying errors
3.2 Second Iteration (2 Weeks)
3.2.1 Changing the Initial prototype
3.2.2 Coding and Compiling
3.2.3 Testing and identifying errors
3.3 Third Iteration (2 Weeks)
3.3.1 Refining the prototype a second iteration
3.3.2 Coding and Compiling
3.3.3 Testing
3.3.3.1 Unit test plan
3.3.3.2 System testing
3.3.3.3 User acceptance testing
3.4 Finalizing the construction ( 7 days )
4.0 Transition phase (3 Weeks )
4.1 Final Documentation preparation (20 days)
4.2 Finalizing the final documentation (2 days)
4.3 Final documentation submission
4.4 Final Submission
4.5 Final Presentation
System and model Testing
Testing
Unit testing – The system is tested in individual component. After unit testing all the components can be integrated to the final
system.
System Testing – Test whether the system is producing accurate result for each function.
User acceptance testing – Verify the level of user acceptance by checking whether the system meets the specified requirements
of the user of the system.
Testing Objectives
Identify the errors and correct them before the final product.
Ensure the user friendliness to obtain the result as expected by the user.
System meets the requirements of the users and produce accurate results according to the functions performed.