Real World Case 2:
For Companies Both Big and Small: Running a Business on Smartphones
CPS Energy, based in San Antonio, Texas, is the largest municipally owned energy provider in the nation. Acquired by the City of San Antonio in 1942, it serves 717,000 electric customers and 325,000 natural gas customers in and around the 7th largest city in the nation. The company’s VP and CIO compared the company to other major companies like UPS and FedEx, and realized there was a disparity in his business operation – insufficient labor usage due to the lack of adequate communication. From this ...view middle of the document...
The program has without a doubt facilitated empowerment within its employees. Employees feel closer to the business. Employee and customer satisfaction has also improved because employees find the corporate system more accessible, which allows them to resolve more customer issues faster without going through multiple procedures, so customers are happier.
Lloyd’s Construction Services has provided demolition, excavation and waste management services to the construction industry throughout Minnesota for over 20 years. The company consists of 100 employees, 30 trucks, and more than 400 dumpsters. They used paper ledgers, spreadsheets, and radios to coordinate the company. Lloyd’s system for dispatching its drivers and collecting job information was riddled with inefficiencies. Every morning, Lloyd’s dispatchers reviewed customer paperwork, penciled in the first jobs for each driver and called them individually. To move the company in the age of technology, the company acquired the help of eTrace.
The software worked to quickly locate remote workers wirelessly on detailed maps, created custom geographic regions and set up a GPS tracking system that notified when a worker travels in and out of designated routes. It also cut fuel costs by 30%. However, a new system did not come without issues and resistance. Lloyd immediately had trouble with technophobic staff, who did not embrace the change. Staff had to be trained. The company had to phase in the new system, by running the new and old system side by side. They found that company assets were spending too much time at the same lunch spots, which weren’t event on the prescribed routes.
Nevertheless, by deploying eTrace on smartphones, Lloyd was able to mobilize its office accounting system, eliminate paperwork, speed up invoicing and improve overall field worker efficiency and service.
1- In which ways do smartphones help these companies be more profitable? To what extent are improvements in performance coming from revenue increases or cost reductions? Provide several examples from the case.
• Profitability: Smartphones helped reduce the time it takes to close a purchase deal. Reduced inventory levels. Increased customer AND employee satisfaction and reduced service call time and costs.
• Source of improvements: Performance improvements primarily stem from cost savings/reductions. However, it can be inferred that there is a correlation, where an increase in revenue is from satisfied customers and fewer lost opportunities. Satisfied customers + fewer lost opportunities = increased revenue = performance improvements.
- CPS Energy: Better communication enabled improved field support with fewer personnel required to fix a problem and the reduced time it takes to close a service call.
- CPS Energy: Better communications reduced the time it takes to close procurement deals. This has resolved in...