Tuesday, September 4, 2007

The beauty of Synchronized Company

This post will be based on a weekly reading, entitled "Don't Homogenise, Synchronise".

This reading draws a line between product-centric and customer-centric companies. While product-centric companies focus on the individual products, customer-centric companies think beyond their product boundaries by integrating their customers into the equation.

The author also claimed that when companies are moving towards customer-centric approach, they will be able to reap more benefit. This is shown in the example, where 3M company decision to synchronized its company change the way it operates.
previously, the company could not assess how important each customer was to the company and there was also a huge cost penalty (maintaining redundant databases, maintaining separate information systems, Inaccurate database, duplicative tasks which also prone to errors). The problem arose when the company moved onto the WWW technology. Its unsynchronized information was reflected in the design of the database, where a customers who would like to buy separate products from different departments have to log in to different systems and given different ID and Password combinations.
When the company decided to sync its operations through the creation of Data Warehouse, it finally has allowed 3M company to present a unified information to the customers. Not only it minimized or even eliminate penalty costs, such as: maintaining duplicate databases, performing duplicative tasks, and etc, it is also allowed the company to respond to customers' inquiry quickly and seamlessly.

Interestingly, Vodafone (one of the biggest telephone company in Australia) has not consider synchronization as a way to conduct its business. It is reflected in their approach to customers, where it requires customer to talk to different people from different departments and to present the same information to get things done. This is my own experience with Vodafone when I asked them about my billing details.
When I first called Vodafone, I am asked by Lara (a computer generated voice) to key in my 4 digit password. Then, I am transfered to one of the sales representatives. The sales representatives then asked my 4 digit password (again!) and as I'm aware that I'm on a public place disclosing my password out loud wont be the best solution. I talked to her, "I am on a public place and I've keyed in my password when lara asked me to". Then she said, "it is a procedure". I said, "ok" and gave her my password. As my previous billing account was overdue, I am transferred to another sales rep who is from different department. When I talked to her, I am asked whats my 4 digit password (again, for the third times!). I said to her, Ive given the password to the previous sales rep and she replied in an unfriendly way, this is different department I cant proceed without you giving me your password. Avoiding further conflict, I gave her the password and get the information I need. From this experience, I felt terrible, a bit angry and disappointed to the service provided by Vodafone. This is my point of view. How about other customers who are treated the same way that I do..how would they feel?
In my opinion, companies should consider synchronizing all their data so that all departments can relate to their customers better. In the case of Vodafone, if the company synchronize its database, the customer would not need to present the same information to the sales representatives in order to get things done.

Sawhney (2001) added that "the disjunction between how customers think and how companies organize themselves is what leads to inefficiencies and missed opportunities, and that's exactly the problem that synchronization solves".

From the above statement, Top level managers (C - level) must understand the value and benefit that synchronization would bring to the company. It is important that a fully committed top level managers is one of the key factors in ensuring project success.

Feel free to comment on this post. =)

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