A Typical Case Study
Typical Pty. Ltd. is a medium sized business with around 100 staff, revenue of $20 million and profits of around $2 million, delivering a profit per person $20,000. It makes hats that it sells, both nationally and internationally, to consumers through its website, retailers and to other businesses. It also purchases and rebrands related products.
Typical Pty. Ltd. has a collection of systems that have evolved over time, managed by one onsite technical employee with specialist third parties used to provide other managed solutions.
CEO George Bandia loves his business but has minimal IT knowledge and has always considered it a cost to his business. He knew he needed to update his systems if he wanted to remain competitive, and was keen to make best use of modern technology, but didn’t know where to start.
An initial diagnosis highlighted several areas of concern.
Ageing hardware and software solutions hadn’t kept up with the needs of the business, and poor user training meant that staff were inefficient, spending hours every week dealing with internal issues rather than running the business.
Management information was sketchy at best and slow to arrive. Forecasting was inaccurate with a large amount of capital locked up in products that had been made with no immediate market, and a longer than necessary wait time for some orders.
Customer and partner feedback strongly suggested that service standards were falling short of what is expected from a modern business.
In the short term, we partnered with a training specialist to develop courses tailored to the needs of Typical Pty. Ltd., with an almost immediate improvement in productivity.
We also began the rollout of new hardware for critical employees such as frontline customer service staff, ensuring they had the best opportunity to provide the best possible service.
In the medium and longer term, we worked with the business to specify its requirements for the amalgamation of core systems, partnering with a vendor to deliver a complete solution including hardware, training and data rollover to the new environment.
Longer term projects include the creation of an app and customer portal that will allow customers of all types to better engage with the business.
By improving efficiency, Typical Pty. Ltd. has been able to redeploy staff from reactionary roles to those that help generate more revenue, and has been able to absorb the effect of natural wastage.
New systems now provide up to date management information, reducing production costs, improving cash flow, and help frontline staff provide a superior service, improving customer lifetime value.
Along with a series of other small improvements to practices and procedures, in the first 12 months, Typical Pty. Ltd. has improved its turnover by 2% and reduced its wage bill by around $400,000, generating a profit of $2.8 million and a profit per person of around $30,000, a 50% increase in the first year alone.