Teltron, Inc – Case Study

Changing economic environment and globalization process has a great impact on the telecommunication market, and compel to specify concepts of management and its fields. The way in which organizations do employ the latest technology can be an important determinant of its competitive advantage. Teletron, Inc, a provider of telecommunications, seeks to improve its operations and market performance using new information technology. It is strongly influenced by resources outside the organization which are an integral part of the chain of activities between the product or service design, through production and marketing to the use of the product or ser­vice by consumers. In this case, detailed resource planning and deployment of new software system are important ingredients in the successful implementation of technology management in Teletron.

Drawbacks and Opportunities in Teletron

The main factors which are holding Teletron back from growth include inefficient customer services, out-of-date technological support and marketing practices. Service quality is closely connected with information technology and concepts and methods it employs. The strategic goal of the Teletron management is to “create firms which are more intelligent and flexible than their competitors” by hiring and developing more talented staff and by extending their skills base. Also, “Most corporate customers did not consider telecommunications expense management to be a core competency” (DeHayes, 2003). The main problem for Teletron was that customers did not have enough time analyze their bills “in-house for accuracy or to investigate money-saving opportunities” (DeHayes, 2003).

Help With Essay On Teltron, Inc

Help With Essay On Teltron, Inc

According to the survey provided by market experts there was an increasing number of errors in bills which led to customers’ dissatisfaction. To some extent, this situation is explained by lack of skills and experience of the staff, but also absence of technological improvements for a particular type of work.

Another disadvantage was Teletron did not use the Internet as the main tool to improve company’s performance.  The structure of service provided was not effective. For instance, “After the initial engagement with the client, Teletron person­nel attempted to build a longer-term relationship with the client, auditing their bills on an ongoing basis. But clients accepted this additional service very rarely” (DeHayes, 2003).

Teletron’s growth opportunities include increase market share and customer’s satisfaction, improved efficiency of work and time reduction. Present day situation in Teletron is marked by two factor – specification, which is to do with the ‘design quality’ of service, and conformity, which is to do with the ‘process’ quality which is achieved are of particular importance to customers. Ultimately they are the two factors which deter­mine the quality levels provided by Teletron to its customers. These two factors however are themselves determined by other factors. Service concepts are based on understanding the unique environment in which Teletron operates. Service concepts include improvement of communication, and the environment composed of all the individual services used for implementation of the group communication primitives. Strengths of Teletron include knowledge, relationships, selling and history. The challenges of the company are based on high quality of products and services (Curley and Curley, 2004).

Planned organizational change is triggered by the need to respond to new challenges presented by the external environment, or in anticipation of the need to cope with potential future problems (Tansey, 2002). The basic underlying objectives can be seen in general terms as: modifying the behavioural patterns of members of Teletron; and improving the ability of Teletron to cope with changes in its environment.

The Virtual Analyzer and the needs of the Market

The Virtual Analyzer proposes great potentials for Teletron Inc. utilizing the most recent and state-of-the-art solutions. With the development of technology and software in particular, the Virtual Analyzer allows to solve a wider range of problems and tasks crucial for Teletron. These tasks include: improved cost management and customer services, focus on outsourcing, Service Offerings, Bill Optimization, Bill Management, Full Service, Inventory/Infrastructure Management, etc. That is why it has become an important area for process managers, who are in a strong position to exert influence in this aspect of people management. The popularity of Information Systems in process management can be explained by the fact that it benefits any process or practice concerning perfor­mance in organizations. Using new software, “We will be linked electronically to the carriers or providers as well as our clients” (DeHayes, 2003).

Also, Data Processing will help in recording, processing and reporting on the day-to-day activities of the organization. Office Support Systems will provide day-to-day assistance with the functions of the office. End User Systems will help to provide management with direct assis­tance with their work. Examples include: Decision Support Systems, Expert Systems, Executive Information Systems.

Such changes often entail blurring of organizational boundaries, both external and internal. This is especially true of telecommunications-based strategic systems. Suppliers and customers must become in­timately linked and may share each other’s responsibilities. With the help of in­formation systems, the supplier actually makes the inventory replenishment deci­sions, based on orders or other data supplied by the cus­tomer (Tansey, 2002). In general, firms with successful strategic information systems have broken down organi­zational barriers that block the sharing of data across functions. Over time, Teletron will be able to redesign its work processes numerous times to continually improve its overall service level and business relationship to cus­tomers.

Additional Information to Consider

For Tim, it is important to take into account the level of service, products and price proposed by their competitors. This process includes consideration of rates of growth of economies, new develop­ments, technical changes that are creating new opportunities to sell and identification of long-term economic and demographic factors that are altering demand patterns.

If there are few, large competitors in the industry, it is likely that this is due to high entry barriers. The nature of competition for teletron differs from other  industries. Competitive rivalry on both a price and a non-price basis is higher in the industry comprising the more, and smaller, competitors.  If the product is mature and the industry is subject to ‘shake-out’, then competition will be more intense (Curley and Curley, 2004).

Also, the main danger is that technology is changing rapidly and there will be constant need to reconstruct and remodel the Virtual Analyzer software to compete on the market. On the other hand, the widespread implementation of IS is caused by computerization and automation of all the processes within business. Accordingly it is necessary to consider these inter-relationships otherwise the system or organization as a whole will not function efficiently and will be slower to adapt to changing conditions, which is a primary requisite to survival. Process management as a part of Information Technology Management should be taken into account by the Board. In this case IS support process management in order to help it achieve objectives, to plan and control the processes and operations, to help deal with uncertainty and to help in adapting to change or, indeed, initiating change(Tansey, 2002).

Financial Analysis

Sensitivity analysis The appraisal of almost any investment project in the real world will involve the making of a great number of estimates. For example, the outlay required to undertake the project, its life, the annual cash inflows and out­flows it will generate, the scrap value it will have, and even the correct rate of discount to reduce the cash flows to present values. Estimates will be made for all these factors and the project will then be appraised by calcu­lating an expected net present value. Taking into account preliminary results highlighted by Teletron management, the project will be successful if company can redesign its processes.

The advice to management is that the decision given by the NPV calculation s insensitive to changes in most of the estimated variables. However, if the revenues were the fall by 10% of their estimated value the original decision advice would turn out to be incorrect. Hence it may be worthwhile to re-examine the estimates of annual revenues to see if the company’s confidence in their accuracy can be improved (Mott, 1993).

Current Changes Required

Accordingly it is important for information system designers to be aware of the various influ­ences on organization design. Maintenance of high standards of service is a key opportunity to maximizing customers satisfaction at the current stage (McNurlin, Sprague 1997). The purpose of maintenance of high standards is to attempt to maximize the performance of service by ensuring that it performs regularly and efficiently. The effective operation of the Virtual Analyzer will depend on the maintenance of all parts of the system, e.g. buildings, services, training of staff. Indeed, company welfare or personnel practice is designed partly as a maintenance activity, e.g. training and retraining to maintain the availability of appropriate skills, facilities to maintain human capacity, counseling to maintain interest and motivation (Curley and Curley, 2004).

The first applications of changes should involved assisting employees perform their tasks more efficiently and effectively. Calculating paychecks and payroll regis­ters, giving bank tellers instant access to customer deposit records, and developing a nationwide network of airline reservation terminals for airline reservation agents are all examples of early automation.

Also, additional research and data collection about competitors and their strategies will help to develop strategic approach to the proposed change and ensure project success.

Report

1. Recent market trends show that there is an urgent need to improve current information technology and implement new solutions. Information Technology will helps Teletron to capture the market. Current performance deficiencies result from technological problems which are connected with lack of skills. To improve this situation Teletron needs to new approach to work performance taking into account rapid environmental changes. The purpose of change is to improve knowledge and skills of employees that can lead to many potential benefits for both individuals and the company.

2. Consequently, significant project resources should be shifted to ear­lier stages in the project cycle. More time should be spent in specifications and systems analysis, decreasing the proportion of programming time, and reducing the need for so much maintenance time.

3. If staff are kept fully informed of proposals, are encouraged to adopt a positive attitude and have personal involvement in the implementation of the change, there is a greater likelihood of their acceptance of the change.

4. If the Virtual Analyzer will be implemented, Teletron will retain its dominant position as the top company on the market, while expanding its operations to encompass server services, development of work-stations and become a global player. Its new technology achievements and overall business strategy, potential and capability to support high performance environments are the key elements for the next five years. In two years, the rate of technological change will be greater than at any time in the past (Hammer, 1997). Also, “ Virtual Analyzer will have six major modules corresponding to the needs we found in the market They are Client Information Management; Move, Add, and Change Processing; Vendor Invoice Processing and Vendor Invoice Payment; Invoice Analyzer; Rate Optimizer; and Industry Information Management” (DeHayes, 2003). It will include advances in information technology automation and robotics. For this reason, it is crucial for Teletron to foreshadow technological change and invest in Information Technology. Also, it will help to improve the quality of services; information and communications; transport and distribution. In order to increase the cost of marketing software, Teletron will use its website.

In sum, there is a growing interdependence between business strategy, rules, and procedures on the one hand, and information systems software, hardware, data-bases, and telecommunications on the other. A change in any of these components often requires changes in other components. This relationship becomes critical when management plans for the future. What a business would like to do in five years is often dependent on what its systems will be able to do. Increasing market share, becoming the high-quality or low-cost producer, developing new products, and in­creasing employee productivity depend more and more on the kinds and quality of information systems in the organization.


References

  1. Curley, M.G., Curley, M. (2004) Managing Information Technology for Business Value: Practical Strategies for IT and Business Managers. Intel Press.
  2. 2. DeHayes, D.W. (2003) Teletron Inc.: Using Information Technology to Transform a Company.
  3. Hammer, M. (1997). Beyond Reengineering: How the Process-Centered Organization Is Changing Our Work and Our Lives. HarperBusiness.
  4. McNurlin B.C. and Sprague R.H. Jnr. (1997). Information Systems Management in Practice 4th edn. Hemel Hempstead: Prentice Hall.
  5. Tansey, S.D. (2002). Business, Information Technology and Society. Routledge.

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