XenoTec (A)
Industry:
XenoTec is current market leader ($75 million in 1996, up 30% from 1993
5 firms dominate the industry. XenoTec, one with $57 million, three between $30 & $50
miillion
Competition is based on price, product quality, and personal relationship with customer (may be changing)
XenoTec CSFs
Control Mfg. Costs
Exploit Market Potential of Existing Products
Expand R & D for new product development
Stakeholders:
Sales staff 46 located in 6 regions in US and Canada. Average age-49, not well educated, paid on commission, only 3 or 4 used PCs which they bought themselves.
Customers: Historically, anesthesiologists, now shifting to pharmacists with shift to health care cost control
Executive Mgmt: Wanninger is wishy-washy. Lets both Mkt have its way and pacifies IT by letting them do what they want. Not a strong project supporter. Had concerns about relationship between PSP and firm’s strategy.
Line Mgmt: Duffy a strong champion. Anderson a sponsor and willing to help with $$.
IT: Very technology focused. Migration to RS/6000, NCs, Oracle. Johnson quite negative and does not want to be involved
What about: Firm founders, Other business functions, et. al. ??
Problem in Sales: Demonstrating true cost of products and their effectiveness
IT:
Major conversion project underway
Product tracking system
Data warehouse (for corporate analysts)
Cost/Benefit?
Total Cost for PSS would be $1 million over 2 yrs
Benefits listed by unquantified
Generally increase sales by $1.5 million/yr by 1999
What Are Key Project Risks?
Implementation:
Major change in way of operating, low level of PC skill and education on part of sales staff
Technology:
Getting applications produced. Not clear who does this, not IT
Leadership:
Looks good in function (Mkt), but what about from Wanninger?
Potential Assassins:
IT in particular, but Wanninger and other functions could easily jump ship
There are several others, what might they be? (See XenoTec (B))