Improving Healthlite Yogurt Company with
Information Systems Technology
Chris Davis, Michael Jorgensen, Sean Roach
Business 310: Information Systems Technology
December 14, 2006
Objectives of this Report
Our group will be acting as consultants to Healthlite Yogurt Company to help them to redesign their business processes for sales, marketing, and order processing using information systems technology in an effort to make the company more competitive. Our report includes • An overview of the organization
• Analysis of the company’s key problems
• An overall management plan for improving Healthlite’s business processes and system • A listing of major changes required to achieve our plan • Examples of what our plan will enable the company to do in the form of data entry and reports • Description of how the company should transition between the old and new systems • Quality Assurance Measures
• Analysis of organizational impacts of our solution including, human interface issues, possible risks, and effects on jobs and interest groups Through our analysis and consultation, we believe that Healthlite Yogurt Company will greatly improve their efficiency and profits.
Overview of Healthlite Yogurt Company
Healthlite Yogurt Company is a fast growing producer of yogurt based-products including low-fat yogurt, frozen desserts, dressings, and other related health products. The company has its corporate headquarters in Danbury, Connecticut with processing plants across the United States in New Jersey, Massachusetts, Tennessee, Illinois, Colorado, Washington, and California. It operates in 20 sales regions, each with its own regional sales manager and roughly 30 sales representatives. At its corporate headquarters, a team of 12 employees make up the company’s marketing team.
Healthlite Yogurt Company has experienced tremendous growth recently with their sales having tripled in the last 5 years. However, they are currently threatened by a rise in local competitors who are able to offer lower prices and faster delivery to distributors through the use of local production centers. Michael Porter’s Five Forces Model helps to illustrate their situation: [pic]
Analysis of Problems Facing Healthlite Yogurt Company
Healthlite Yogurt’s 4 main challenges are
• Inability to Access and Share Information
• Archaic and Inefficient Ordering Process
• Inability to Assess Performance of Sales Force and Products • Website is not Useful for Clients of Company
Currently, Healthlite operates on a central mainframe computer which only holds consolidated, company wide files. This is where customer master files are kept which are used for credit verification or rejection. Through the use of a single terminal within each regional office, salespersons are able to input and access information for their assigned customer accounts. Information regarding promotions, sales and advertising, and the customer shelf space dedicated to their products is held here. However, in order for these representatives and the sales offices to receive reports on customer account inquiries, rejection notices, or printouts for orders, etc., they must wait for them to be printed and mailed to them from the regional offices. In addition, regional sales managers are forced to use mail to inform salespersons of current announcements, pricing discounts, and promotional campaigns. Salespersons also mail to send written copies of their monthly reports of sales calls to the regional headquarters. All of the information received by mail must then be inputted into the system. The inefficiencies of this system are shown in the following flow chart: [pic]
This chaotic and convoluted system for storing and sharing data is dwarfed by the muddled order processing system at Healthlite. In order for salespersons to place an order for their clients, they must write 1 hard-ticket and 2 or more forms...
References: Laudon, K., & Laudon, J. (2006). Management Information Systems.Upper Saddle River:
Pearson Prentice Hall.
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