Consultative selling Essay Example

delivery depending on the supplier.

The purchase order form does not contribute to inventory control or forecasting. Inventory levels are evaluated at monthly meetings, but the company has always struggled with forecasting. The company relies on historical data from the past 2-3 years to make forecasts on which items and quantities will be sold. It is difficult to identify turning points when sales shift from increasing to decreasing, which has led to obsolete products and discounted prices to clear out overstocked items. The current processes involve purchase orders, inventory management, accounting, purchasing, suppliers, forecasting, data flow diagrams, advertising, merchandising/pricing at Kudler Fine Foods. The high level diagram of processes includes inventory management, merchandising/pricing, purchasing, advertising, and forecasting. The statement of scope and goals states that the frequent shopper loyalty program aims to increase customer loyalty and revenue by tailoring marketing strategies based on discovered shopping patterns.

Kudler plans to implement a customer purchase tracking system that will integrate with the marketing and sales departments. The objective is to gain understanding of customer behavior, which can be utilized to manage inventory levels and enhance marketing strategies. The primary aim of this program is to improve customer satisfaction by ensuring availability of desired items at all times. Furthermore, the system aims to successfully implement the project within the allocated time frame and budget. Effective communication among stakeholders, including employees and managers, will be vital in accomplishing these project goals.

Supporting Measures for Success - The success or failure of the project will be determined by both tangible and intangible methods. Intangible measurements include customer opinions of the program and their satisfaction with their rewards. Additionally, an increase in customer loyalty

will indicate project success. The factors that impact project success rely on the time spent on the project and the allocated budget. Attracting new customers is also a secondary objective, which can be assessed through an increase in customer loyalty accounts. Ultimately, the assessment of the project's success will be based on the return on investment (ROI), which is the profit earned after covering its cost.

Kudler aims to generate profits quickly through repeat customers and increased sales, which would also result in cost savings on advertisements. By focusing marketing efforts on small groups of customers based on their preferences, Kudler can capitalize on the fact that selling to existing customers is more cost-effective than acquiring new ones. This strategy will enable Kudler to gather data on customer product preferences, track purchase information, and utilize affordable communication channels such as email to send promotions to customers.

Kudler's sales strategy will be significantly improved by eliminating the requirement for mass mailings, which can be overwhelming. This will result in higher revenue and customer loyalty, ultimately guaranteeing the company's long-term success. By conducting email surveys, Kudler will acquire valuable insights about their main customer base, enabling them to constantly adjust and enhance based on customer preferences. This individualized approach will further reinforce customer loyalty. To summarize, the project's feasibility will be assessed from three standpoints: economic, operational, and technical.

The total cost of the project includes the development, project administration, implementation, and financing functions. The development cost includes expenses related to IT system design, process planning, and feasibility analysis. The implementation cost includes hardware upgrades, software development, and infrastructure improvements. The administration expenditures cover costs such as training, furniture, network

infrastructure, utilities, and insurance. Additionally, the cost of the life cycle will need to be calculated as the system is expected to be used for a prolonged period of time. The economic feasibility analysis will also include the calculation of benefits from worker productivity gains, expenditure decreases, and employee utilization gains.

Once the project's initial cost is established, the feasibility on an economic level can be determined. The article "Implementation: The operational feasibility perspective" outlines the necessary steps to achieve operational feasibility. Step 1 involves openly addressing managers' and employees' negative perceptions of change. Step 2 involves reinforcing positive factors for change.

Step 3, the highest stress should be addressed as a priority. Additionally, Step 4 emphasizes the need for change to be initiated at the top level of the organization. To ensure effective communication, Step 5 emphasizes the importance of utilizing both informal and formal channels. It is crucial for all managers and workers to participate or be represented in the decision-making process.
Furthermore, there are five critical success factors that determine operational feasibility according to Corbitt (1991). These include client commitment to change, trust from management and workers, open communication, a shared understanding of implementation strategy, and management commitment. The technical feasibility relies on meeting the necessary hardware and software requirements.

The project entails the creation of a searchable customer information database that has the capability to remove customers from the program and generate reports for various departments. Additionally, it should gather real-time purchase data from point of sale systems. Kudler is currently contemplating whether to outsource its security system and server. The suggested system will collect purchase information through a loyalty card, reward customers, and

deliver targeted advertisements based on their buying history. Given the sensitive nature of the data, thoughtful decision-making is crucial.

The system must have a level of security that is comparable to that of a bank. It should also be capable of generating and organizing standardized and custom reports. To assess the effectiveness of the organization's current system, an analyst is tasked with gathering feedback from employees.

The process of compiling necessary information involves various techniques. Creating a clear overall picture of an organization's needs requires the use of several methodologies. Direct observation is a technique where the analyst observes a user performing their daily tasks. This method is particularly effective when the observed employee has a role that involves movement and short task durations.

Direct observation is a method that enables the analyst to obtain firsthand knowledge. The analyst should aim to be as unobtrusive as possible during the observation. If the employee is consciously aware of being observed, it might impact their normal behavior at work. However, this method is not effective for employees in roles that involve lengthy mental concentration. Interviewing is another individualized approach to collect information. Successful implementation of this technique depends on the analyst's mastery of interpersonal skills.

If someone struggles with communication, it can make tasks more difficult. While some people naturally have good social skills and find it easy to interact with others, those who are less skilled can learn techniques to improve. To have a successful interview, creating a positive atmosphere and allowing the interviewee uninterrupted time to respond is crucial. Also, providing thoughtful and meaningful answers when asked questions by the interviewer is beneficial.

Periodically emphasize key points during the interview

to establish the point of view. Use body language as an indicator to gauge employee response. Building rapport is crucial, so always be honest with the interview subject. Take time to prepare and research before the interview, and clearly communicate expectations. Ask pre-interview questions to gather information. Documentation is a way to collect already obtained information.

The documentation process should include a list of the current system issues, an assessment of the organization's direction that could affect information system requirements, and key stakeholders' information. These stakeholders can help identify relevant individuals with a vested interest in the new system. Reviewing documents establishing project priorities and ensuring profitability can assess the organization's value throughout the process. Furthermore, the documentation may offer insights into the rationale behind the design of the existing system.

This information can assist in progressing without repeating past errors. Questionnaires, whether in written or online format, can serve as a form of documentation initiated by the analyst. It is crucial to distinguish between formal and informal documentation of a company's system. Formal documentation represents the system as it should operate, while informal documentation reflects the actual process that occurs, which may not always align with the formal system.

Joint Application Development (JAD) is a crucial tool used during the analytical phase of the SDLC. JAD involves combining various sources of information to reach a single conclusion. In order to gather information, the analyst conducts one-on-one interviews with employees of the organization, which can be quite time-consuming. During the design of the frequent shopper program for Kudler Fine Foods, certain tradeoffs needed to be considered in terms of cost, schedule, and performance. Kudler is willing to sacrifice

some performance in order to maintain their existing hardware, software, and networking system.

Kudler has chosen to keep their current architecture, which will result in cost and time savings when implementing the new system. Our company also recommends this decision to Kudler because their current system is adequate, and we can develop a program that seamlessly integrates with it. In the future, Kudler plans to build an ecommerce site and expand their organization. Their current system is scalable and can accommodate more upgrades before it becomes obsolete. The logical design (figure 1.0) represents the flow of information in the frequent shopper program.

The design outlines the essential participants in the design as customers, cashiers, and the rewards vendor. It demonstrates the flow of data from these key role players through Kudlers network. The data will be directed to the database and can be retrieved from there. Kudlers customers have two alternatives for enrolling in the program: either through the website or by filling out forms in the store.

Customers earn points when they purchase items through the POS terminals, and this information is stored in the database. Customers can use their reward points to place orders online, and the award vendor accesses this information through an extranet with Kudler. The award vendor is responsible for producing the customer's award cards and managing point redemption. Kudler keeps track of and updates customer rewards online, allowing customers to access their accounts (see figure 1).

Kudler Fine Foods' current network architecture involves the use of NCR RealPOS 82XRT terminals. These terminals, which are considered NCR's most advanced computers, come equipped with scanners, cash drawers, touch screens, and printers (Kudler, 2008). Notably, these

terminals are scalable and designed to facilitate easy upgrades for both software and hardware. The current point-of-sale (POS) software utilized generates various reports including inventory, marketing, and financial reports. Furthermore, inventory updates occur in real-time as products are being sold (Kudler, 2008).

Marketing reports reveal the buying patterns of customers, while financial reports contain all the financial information. Each of the three stores has its own local area network (LAN) connected to the company's wide area network (WAN). The WAN is established through a secure T3 leased dedicated line, which uses fiber optic cables for transmission. This line effectively connects all three stores, forming their WAN. The T3 line is connected to an optical router, which further connects to the LANs of the stores.

Each store LAN is equipped with a fast Ethernet connection that operates at a speed of 100 t-base, and is also fiber optic in nature (Kudler, 2008). Fiber optic cables are known for their higher data transmission speeds compared to copper cables, and the T3 line ensures rapid data transfer. The store configuration includes a c3000 blade server, which is a compact version of a rack server system designed to save space without compromising on performance. This blade system accommodates various functionalities such as web hosting, storage, communication, email services, file management, corporate SAP ERP system, all running on the UNIX operating system.

Their backup storage is a 10 TB server and the power supply has a backup UPS system. This current network and hardware setup is suitable for implementing the frequent shopper program with minimal upgrades needed for the hardware and an upgrade planned for the POS software. Figure 2.0 displays the current

network architecture of Kudler Fine Foods. Regarding the physical design, the suggested layout can be seen in figure 3.

0) Demonstrates the data flow within the specified architecture. The existing POS system will be seamlessly integrated with the frequent shopper program software. Some minor hardware upgrades will be required. The POS server needs upgrades, including additional hard drives to accommodate the increased data volume generated by the frequent shopper program. Additionally, the current card scanners must be replaced with new scanners capable of reading rewards cards.

Kudler can easily implement the required changes by purchasing new scanners and connecting them to the POS terminals via the USB port, as the terminals support scalability. Additionally, the new software needs to be installed on the terminals, POS server, and c3000 blade server at all locations. The software will include features for generating marketing reports, tracking buyer spending patterns, creating financial reports, and updating inventory data. These reports will be produced by the POS server. The graphical user interface (GUI) will be user-friendly, with a focus on making it easy for even inexperienced users to navigate.

This includes various systems such as POS terminals, customer Internet, intranet, and extranet. An extranet will be established with the rewards card vendor to allow access to customer's card accounts. Additionally, a website will be set up for customers to register, manage their card accounts, and redeem their points for gifts. To ensure security, the extranet will utilize a virtual private network (VPN) to establish a secure connection with the award card vendor. The award card vendor is responsible for card production and shipping of gifts when customers decide to redeem their points.

As Kudler expands,

their hardware will be upgraded to accommodate the company's growth. Figure 3.0 summarizes the testing process, installation, documentation, and maintenance that are involved in the final phase of system development. The success of the project significantly relies on thorough testing. This phase mainly focuses on testing the overall functionality of the hardware and software systems. The testing plan encompasses:

1. Checking the functionality of hardware
2. Checking the functionality of software
3. Processing test data through the system
4. Correcting any errors

The initial step in this process involves verifying the functionality of the hardware.

To achieve this, it is necessary to have all the hardware in place. The network and terminals can be set up by hiring a third party, who will ensure that all terminals, servers, and network connections are functioning correctly. The next step involves testing the software's functionality. To do this, the software needs to be installed on all terminals and servers using the designated software. After installation, the third party team can check the integrity of the software.

The first step is to ensure connectivity to the server and communication with other terminals. Then, Kudler needs to process test data by creating a fake customer account on the main server. This account will be used to make fake purchases. After the purchases are made, a third party will verify that all points are received for the rewards system and that customer data is stored correctly.

The final step in the testing process involves addressing any errors that were identified during testing. Various issues, such as defective hardware, software problems, and network complications, may arise. Prior to the system being installed in all Kudler stores, these issues must be resolved. Once all

testing is finished, Kudler will proceed with the installation process and adhere to the established timeline for implementation of the new system.

The installation process is crucial due to the downtime required to make the system operational and adhere to time constraints. Training on the new system is equally important for all system users. Here is a timeline of the installation process:

- Kudler Foods closes for the night
- All terminals are installed in the store
- The terminals are booted and the system becomes functional
- Employees will arrive one hour early to their respective shifts for training
- The training for the new system will be relatively simple
- Employees need to be trained on inputting new customer data and ensuring its acceptance.

Customers will be trained on how to use the reward card, and this training can be done with the help of an assisted checklist at all terminals. Documentation on the maintenance schedule and any system errors or problems will be kept on file in all stores. These documents should be stored and kept for a 3-year period. The system documentation will help the company address issues based on past recorded problems through documentation.

The documentation plan is essential in saving time and money for resolving issues that have previously been resolved. It is crucial to have a record of technical problems and their solutions to prevent any hindrance to the new system in case a problem arises and employees need answers. Therefore, requiring the recording and filing of all technical problems for future use is the best course of action. Moreover, the support and maintenance plan is critical for maintaining the proper functioning of the system.