Details

Case

UDL Distribution (C): IT - Enabling A Sales Force

Shazib Ehsan Shaikh

INDUSTRY : Hospital

AREA : Management Information Systems

ORGANIZATION : UDL Distribution

LENGTH : 3

LUMS No : 18-435-2010-1

PUBLICATION YEAR : 2010

KEYWORDS:

UDL Distribution,Information Technology,Sales Force,Pharmaceuticals Distributor,Family Business,Credibility,Pakistani Market,Operations

DESCRIPTION:

The Sales Director of a nationwide, family owned, Rs 4.6 billion pharmaceuticals distributor, UDL Distribution, is faced with the decision of replacing the sales forces manual order-booking with one using handheld devices. Being amongst the Big 5 in the Pakistani market, the prime motivation is to catch up with the rest of the players and not lose credibility with their principals, the pharmaceutical companies. While some of the major players had done this more than a decade ago, the recent project survey report submitted by the Operations and IT Director reveals that even smaller local distributors have adopted the technology and the nationwide top player has already done so. The report presents the protagonist with choices to make about the set of software features, the software vendor and the handheld device. However, in justifying the project expense (between Rs 3.7 and Rs 6.4 million, depending on the choices made) to the Executive Director (also his elder brother) the issue of precisely how much productivity improvement is expected becomes a bone of contention. The IT hardware budget has traditionally been Rs 0.5 million annually. Competitive pressures on margins and cash flows also feature greatly. Ultimately, it is the Executive Director¿s style of managing the business by thrift and tight efficiency targets that wields the greatest pressure on the Sales Director. In Case (A), the focus is on the three choices in the report and how to sell the project to the Executive Director faced with a why fix what ain¿t broken concern. In Case (B), the decision shifts to a pilot project that promises 20% reduction in sales headcount (not increase in outlet coverage). The initial pilot fails. Case (C) then describes how UDL persists with the project and achieves success in other major cities.

LEARNING OBJECTIVES:

The case is originally meant to be positioned a bit late in the second year MBA level Information Systems Management or Technology Management course after students have become familiar with basic business applications, such as ERP. It has also been developed with Change Management courses in mind that have an IT-enabled change module. It would work well after any case where the concept of big-bang IT implementations have already been introduced as novices usually already favour pilot-based roll outs.

SUBJECTS COVERED:

Management Information Systems