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Smart Phones

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The document discusses how CPS Energy implemented a program called Magellan to distribute smartphones to employees to improve business processes. It provided employees access to corporate systems and information remotely. This allowed inventory levels to be reduced by $8 million, orders to be fulfilled faster through improved supply chain management, and staff and customer satisfaction to increase. The paybacks of increased efficiency and productivity outweighed the risks of failure and disruption of distributing smartphones in the organization.

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Chapter 2 Case Study 2 Elaine K. Mom MGMT500
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed and service. Combines a strategy of promoting business innovations w/ strategy of making major improvements to business processes so that company can become a much stronger & more successful competitor in the marketplace. Paybacks are high, but so are risks of failure and level of disruption to the organizational environment.
DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Who: Texas-based CPS Energy What: The Magellan Program Why: To better mobilize and connect workforce to the people and systems How: Devices distributed to specific groups
DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Inexpensive to hand smartphones on experimental basis Inventory levels were reduced by more than $8 million since implementation.
DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Has or will empower employees to become part of the greater company’s ‘thought process’ Supply chain buyers’ visits to warehouses lead to faster order times & more productive supply chain management.
DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Single worker is needed to visit site & report. Qualified employee can be reached via email/SMS text & dispatched in reasonable amount of time. Employees are connected anywhere with cellular coverage.
DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Employee and customer satisfaction levels were up Staffers have more access to corporate systems & info and feel closer to business.
PAYBACK Sprint’s push-to-talk phones receives better reception then radio New software displays real-time locations of assets RISKS Trouble with technophobic employees (resistance) Employees were watched at all times
Payback outweighs the risks of failure and the level of disruption Data entry and job logging is 1 ½ times faster than paper and radio Efficient routing cut fuel costs about 30% Employees have stopped making unauthorized stops Net improvement in performance of 10-12% Spent $50,000 for complete business, accounting & communications solutions, but received $ 1million on return.

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Smart Phones

  • 1. Chapter 2 Case Study 2 Elaine K. Mom MGMT500
  • 2. Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed and service. Combines a strategy of promoting business innovations w/ strategy of making major improvements to business processes so that company can become a much stronger & more successful competitor in the marketplace. Paybacks are high, but so are risks of failure and level of disruption to the organizational environment.
  • 3. DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Who: Texas-based CPS Energy What: The Magellan Program Why: To better mobilize and connect workforce to the people and systems How: Devices distributed to specific groups
  • 4. DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Inexpensive to hand smartphones on experimental basis Inventory levels were reduced by more than $8 million since implementation.
  • 5. DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Has or will empower employees to become part of the greater company’s ‘thought process’ Supply chain buyers’ visits to warehouses lead to faster order times & more productive supply chain management.
  • 6. DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Single worker is needed to visit site & report. Qualified employee can be reached via email/SMS text & dispatched in reasonable amount of time. Employees are connected anywhere with cellular coverage.
  • 7. DRAMATIC IMPROVEMENTS Cost Quality Speed Service SMARTPHONES CASE STUDY Employee and customer satisfaction levels were up Staffers have more access to corporate systems & info and feel closer to business.
  • 8. PAYBACK Sprint’s push-to-talk phones receives better reception then radio New software displays real-time locations of assets RISKS Trouble with technophobic employees (resistance) Employees were watched at all times
  • 9. Payback outweighs the risks of failure and the level of disruption Data entry and job logging is 1 ½ times faster than paper and radio Efficient routing cut fuel costs about 30% Employees have stopped making unauthorized stops Net improvement in performance of 10-12% Spent $50,000 for complete business, accounting & communications solutions, but received $ 1million on return.