Technology in Sales and Marketing - Essay Example

?Introduction Microcel Ltd. is a software development firm consisting of 45 employees. The stakeholder who was interviewed was a sales manager who had been with the company since its inception eight years ago. The company originally sold personal computers and other related hardware. Subsequently it diversified into software development. Currently it develops human resource management software. The software modules that are developed are tested upon the company’s processes. For example, one of the modules that the company develops is payroll processing. It is used to automate the payroll functions. As a result of this automation, Microcel has been able to reduce the level of paperwork to a substantial level. Another module is attendance which in combination with biometrics automatically tracks employee attendance records. These software modules are tested in-house and therefore the HR processes which are standardized are automated. This saves a considerable level of costs. The company operates in a highly competitive industry and the use of cost-saving technology enables it to develop a competitive advantage. Technology in sales and marketing Because the software development industry is characterized by high competition, Microcel must attempt to provide solutions which deliver a high level of value. By employing information technology, the company improves operational efficiency and therefore is able to provide great customer service. According to the sales manager, the implementation of information technology enables his sales force to stay in constant touch with the customers, thus creating an efficient communications system. Because the company is in the business of providing IT services, it has the infrastructure which can incorporate the latest IT technology. This also serves as a unique selling proposition. The clients can see the software technology function at Microcel and thus make their purchase decisions. Therefore the use of IT enables Microcel not only to improve the efficiency of operational processes within the company but also to demonstrate the products to the clients. In this manner the software products not only generate revenue but also save costs. As mentioned before, the company operates in a competitive industry. There are quite a number of other companies which are developing human resource software. Other companies such as Trinet and Administaff are also developing human resource software. Therefore Microcel has to develop the best products in the industry so that it can continue to win market share away from other competitors. Because competitors like Trinet and Administaff are already well entrenched in the market, it may not be possible for a smaller company like Microcel to compete with them. Therefore the strategic focus of the company has been to focus upon those segments of the market which have not been using software products up to this time. These smaller companies do not have the resources to make massive cash outlays for purchasing software products. For this reason Microcel has focused upon minimizing product development costs. This allows the company to offer products at a relatively lower cost, thus making them affordable to the smaller companies which have not considered installing human resource information systems. Technology in human resource management At Microcel , the employees are considered to be the most important assets. Therefore the management focuses upon maintaining a motivated work force. Since the company operates in a competitive environment, it has to create a sustainable competitive advantage. According to Porter’s framework for competitive strategies, a company can implement the strategies of cost minimization, differentiation and focus to create a competitive advantage. However the competing organizations can also implement these same strategies and therefore none of the companies has a competitive edge any longer. On the other hand, if the organizational culture serves as the source of the competitive edge, then it becomes sustainable because the cultural dimensions of each company are unique. Microcel has an organizational culture of its own, distinct from any of the competing organizations. The fact that the management has decided to focus upon non-traditional segments of the market has also enabled Microcel to develop a unique organizational culture. Because these segments of the market are not targeted by the competitors, Microcel has the flexibility to maintain a lean organizational structure which saves cost by maintaining a niche focus. The implementation of technology has enabled Microcel to save costs and to provide exemplary customer service. The implementation of technology has also enabled the company to address the motivational issues of the employees. The payroll processing software facilitates compensation and benefits management. This software addresses eight aspects: employee assistance and work/life programme, health care, basic and voluntary disability coverage, dental and vision plans, basic and voluntary life insurance and personal accident insurance, credit union, adoption assistance, educational assistance and dependent care spending plan. By addressing these aspects, the compensation and benefits management software becomes a powerful motivational tool which has the added advantage of being flexible and scalable so that a growing complexity in the organizational structure can be accommodated (Hill & Jones, 2007). Technology in managing knowledge workers Microcel has created an organic organization design in which employees can contribute to the decision making process (Pascale & Sternin, 2005). Therefore the organizational structure is highly flexible in terms of incorporating the different suggestions from the employees and acting upon them. However involving the employees in the decision making process means that the employees must be able to perceive how their work relates to the strategic focus of the company. Because the employees at Microcel can make the link between their work and the strategic orientation of the company, they can make meaningful contribution to enhancing the effectiveness of the strategic orientation. This is the learning organization structure which the company maintains. The employees are treated as knowledge workers. To enhance their productivity, the company maintains a knowledge management system which keeps the employees informed about company-wide initiatives (Sundaramurthy & Lewis, 2003). Thus the system enables the employees to maximize their productivity. The implementation of the knowledge management system also improves the quality of customer service. It enables Microcel’s employees to stay in constant touch with the employees. The sales executives carry smartphones which enable them to connect with the company database while they are in the field. Thus they are able to address client queries immediately. However the management recognizes that the most important aspect of providing great customer service is to maintain a motivated workforce. This is where the importance of the human resource information system comes in. The information system is flexible so that its functional specifications can be adapted to the changing organizational structure. The company operates in a dynamic industry. Therefore, in order to remain competitive, the company has to develop dynamic capabilities (Kotter & Schlesinger, 2008). This objective is met through technology implementation. The human resource information system enables the knowledge workers of Microcel to identify with the organizational culture and thus to enhance job satisfaction. In this case, the implementation of technology has reduced turnover intent. Microcel operates in the new economy which is characterized by the growing importance of the knowledge workers (Gottfredson & Aspinall, 2005). Knowledge workers prefer a high level of flexibility in their job descriptions. The management can create this flexibility by implementing information systems. The information systems at Microcel not only enable the employees o enhance their own productivity but also to maintain great customer relations. After-sales service is one of the key success factors in the industry and therefore the sales executives have to stay in contact with the clients even after the sale is made (Gosling & Mintzberg, 2003). Microcel is responsible not only for providing training but also for sending its employees to the client site to address any problems encountered in operating the software. The communications technology facilitates this coordination, thus creating a framework for customer relationship management. The software system that Microcel develops is flexible and scalable so that it is able to provide continuing service to the client organizations as they evolve. This generates repeat customers. The use of web-enabled tools and technology Technology implementation has enabled Microcel to develop dynamic capabilities. It has maximized the productivity of the knowledge workers by addressing the dimensions of job satisfaction (Pearlson & Saunders, 2007). The compensation and benefits management system is continuously updated to serve as a performance management system (Kotter, 1995). The employees of Microcel can see for themselves how the system functions as a performance indicator and thus they can take their own initiatives for performance improvements. The company maintains a knowledge management system which enables them to maintain a learning organization environment. Operating in a dynamic industry, the company has to maintain a continuous learning process in order to develop dynamic capabilities and technology implementation enables the company to meet this objective. Information systems such as compensation and benefits management motivate the employees to undertake performance initiatives in a continuous process. In addition to performance management, technology at Microcel serves as a cost-cutting tool. By taking the repetitive HR functions online, the company reduces paperwork and saves man-hours. Initially these functions had been performed manually by the employees. Currently they have been automated so that the management has moved the same employees to functions of strategic importance. Some of the employees who had been in charge of HR activities have been promoted to sales positions. As a result, the efficiency in the value chain has been enhanced. This has reduced paperwork and cut costs. In the process the company has been able to develop a sustainable competitive advantage. Microcel has based its firm infrastructure on the application of web-enabled tools and technology such as the knowledge management system and the human resource information systems (Ross & Perry, 2002). This technological orientation has been one of the key success factors. For Microcel, access to information is one of the key success factors. The technological orientation has enabled the company to meet this objective. The investments that the company has made in technology have been recouped not only in terms of saving costs but also in terms of continuously improving the software products so that they can deliver greater value to the customers (Stair & Reynolds, 2007). In this manner synergies have been realized. While technology implementation improves operational efficiency, it also facilitates zero defects as the human resource information system is being tested within the company. Employees have always been the most important assets of an organization. However in the new economy, knowledge workers are the most important categories of employees. Addressing job satisfaction dimensions as rated important by the knowledge workers is one of the key success factors. This objective is met at Microcel by technology implementation. The impact of technology upon the business has been that of ensuring job satisfaction for the knowledge workers. In the process dynamic capabilities are developed. Conclusion Facilitating a continuous learning process has been the most important impact of technology at Microcel. The communications technology and the human resource information system have combined to create a firm infrastructure which maximizes the coordination between Microcel and its client organizations. The software products developed by the company are tested in-house so that the company is able to get the value not only from its own products but also to offer error-free products to the client organizations. In this manner technology at Microcel has not only improved operational efficiency but also streamlined the product development process. In the process technology has enhanced the efficiency of its value-chain activities. References Kotter, J. P. (1995). Leading change: why transformation efforts fail. Harvard Business Review, March-April, 59-67. Kotter, J. P., & Schlesinger, L. A. (2008). Choosing strategies for change. Harvard Business Review, vol. 86, 130-139. Sundaramurthy, C., & Lewis, M. (2003). Control and collaboration: paradoxes of governance. Academy of Management Review, 28(3), 397-415. Gosling, J., & Mintzberg, H. (2003). The five minds of a manager. Harvard Business Review, vol. 81, 54-63. Gottfredson, M., & Aspinall, K. (2005). Innovation vs. complexity. Harvard Business Review, vol. 83, 62-71. Hill, C., & Jones, G. (2007). Strategic Management Theory: An Integrated Approach. McGraw Hill/Irwin. Pascale, R. T., & Sternin, J. (2005). Your company’s secret change agents. Harvard Business Review, vol. 83, 72-81. Pearlson, K. E., & Saunders, C. S. (2007). Managing & Using Information Systems. South western college pub. Ross, J. E., & Perry, S. (2002). Total Quality Management: Text, Cases, Readings. Wiley. Stair, R., & Reynolds, G. (2007). Fundamentals of Information Systems. McGraw Hill/Irwin. Appendix: Questionnaire 1. As a software development company, Microcel offers IT services to client organizations. Are these IT services implemented within the company? 2. How has the human resource information system impacted the business? 3. How has the knowledge management system impacted the business? 4. Do you think technology implementation has affected the company’s ability to compete in the market? How? 5. What is the organizational structure of Microcel? How is it affected by technology? 6. Please describe the organizational culture. How is it affected by technology? Read More