google.com, pub-5012522416583791, DIRECT, f08c47fec0942fa0 google.com, pub-5012522416583791, DIRECT, f08c47fec0942fa0 Colombo Stock Market Financial Research: Technology Acceptance Model (TAM) with the Sales Force Automation System (SFA) google.com, pub-5012522416583791, DIRECT, f08c47fec0942fa0
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Tuesday, July 10, 2018

Technology Acceptance Model (TAM) with the Sales Force Automation System (SFA)


Technology Acceptance Model (TAM) with the Sales Force Automation System (SFA)

Abstract

      This study has been carried out to explore the application of Technology Acceptance Model (TAM) with the Sales Force Automation System (SFA) of Darley Butler & Co., Limited. Darley Butler mainly being a distribution company island-wide had a system of manual re-distribution tracking via company employed sales force. Due to many limitations with the system it was automated with an introduction of a Personal Digital Assistant (PDA) to the sales force. Along with the selection of proper devices i.e. PDA unit and printing solutions, technology acceptance among the uses had been a major challenge. However, with its usefulness, ease of use and extensive training the company was able to make it a success.  

Advancement in information communication technology (ICT) is an important driver in achieving competitive advantage for organizations in today’s fast moving world. Though it is vital and inevitable the adoption and diffusion of ICT could be seen as a major challenge faced by the nations/organizations.
The user acceptance of technology could be viewed as the demonstrable willingness within a user or a group to employ information technology for the tasks it is designed to be supported. Thus, the concept is not being applied to situations in which users claim they will make use of it without providing evidence of use, or to the use of a technology for the function which is unintended by the designers or procurers (for instance using an internet connection for personal work within a work situation). Obviously there is a degree of uncertainty here since actual usage is always likely to deviate to certain extent from idealized, intended usage, but the essence of acceptance theory is that such deviations are not significant, i.e. the process of user acceptance of any information technology for intended purposes can be modeled and predicted.
Lack of user acceptance is a significant impediment to the success of new information systems. Indeed, users are often reluctant to use information systems which, if used, would result in extraordinary performance gains. Therefore, user acceptance has been viewed as the pivotal factor in determining the success or failure of any information system project.
Thus, this assignment is focused towards evaluating the application of ICT and its acceptance at Darley Butler & Co., Ltd. during the execution of Sales Force Automation System (SFA). Though the system had enormous in built advantages in terms of productivity and accuracy obtaining user acceptance has been a huge challenge.     
Darley Butler & Company Limited is established way back in 1848. Then business activities were diversified, and covered estate agencies, commission agents, imports/exports, ship chartering, etc. In 1920 the partnership was converted to a limited liability company, and continued its business of being a primary exporter of tea and local produce. However with the decline in the export business, the company shifted its focus to imports, local sales and distribution of consumer products. With the acquisition in 1967, the company became a wholly owned subsidiary of E B Creasy & Company PLC, which is listed in the Colombo Stock Exchange.
Today the Company's core business is marketing a range of FMCG categories that are well known brands in the country like, NINJA, DENTA, BIC, COW & GATE, AMRITHA, HACKS, CANDYMAN, LAXAPANA etc. To maximize distribution of these products, the company relies on its key strength which is its current distribution infrastructure consisting of 132 professionally trained Consumer Sales Representatives, and 20 Sales Management and Supervisory staff and the services of 65 long-standing Distributors located throughout the country. In order to successfully market the brands, the company has a team of Brand Managers who have hands-on experience in handling FMCG categories, and are well-versed in the sphere of brand management.
The company which has gone through several phases of evolution has today emerged as an aggressive marketing organization. The medium and long-term strategic goals of the company are to identify opportunities in high growth mass market consumer categories, and enter those markets offering high quality and reasonably priced products.
Darley Butler is the sole distributor of all the products manufactured and imported of the group. Before 2005, the distribution process was based on a manual system. Distributors island-wide collects the goods from head office either on cash or credit. Thereafter the company’s Sales Representatives raise manual invoices to the retailers and wholesalers in order to re-distribute the goods all over the island. All the manual invoices are required to be forwarded to the head office weekly. Then the data entry operators were manually feeding all sales records to the computer system for the purpose of providing management information.
The process of system feeding of sales data and providing management information took 3-4 weeks. Simply the last month’s sales information was provided for the management decision making at the end of the next month. Due to this decision making delay, human errors and late detection of the malfunctions during the selling process, it was decided to automate the re-distribution process island-wide.

Further to the decision of SFA system, selecting the appropriate infrastructure was one of the critical factors. A suitable device i.e. a Personal Digital Assistant (PDA) had to be selected complying with requirement and the budgetary allocations. The main purpose of the PDA is to act as an electronic organizer/tool or day planner that is portable and capable of sharing information in respect of the tasks performed with PC or software in respect of re-distribution. It's considered to be an extension of the PC, not a replacement. Finally the brand PALM was selected initially for a price of Rs. 18, 000/= for the process.  
Battery life (power) of the PDA was another main concern since it required at least 10 hours battery life. The PALM TOP has been able to survive for average 12 hrs, after fully being charged before the beginning of the session.
As the process required a bill or an invoice to be issued to the retailer/wholeseller, decision of selecting a printing solution was required. A dot-matrix printer was selected instead of a thermal printer and the printing was made via Bluetooth.
Finally the training of staff of both the company and the distributors towards the acceptance of technology were to be made. All staff involved was made groups of 10 each and an intensive training was made on the system and handling the PDA. Finally it was executed along with on the job training and monitoring on regional basis.
The system required some prerequisites to be met before starting up the day for sales re-distribution. The IT department of the company forwards the data in respect of the days’ plan to each distribute point, where the Sales Representative require to synchronies the PDA before leaving to the route. Then the Sales Representative carryout his days work as per the plan downloaded and when winding up the day he require to synchronies the PDA again in order to upload the day’s data to the system. Thereafter the IT department is carrying out the necessary data processing to provide management information.    
   Application of TAM with Darley Butler SFA and  its Critical success factors in terms of Ease of use and usefulness    
As indicated above the main challenges faced by the IT department is the selection of the device/PDA with adequate power throughout the process, printing solution and obtaining user acceptance towards the system from members involved. Out of which managing staff resistance towards the system has been the major challenge. The entire field staff from top to bottom was reluctant to accept initially due to the failure of Unileves’ during their automation process by that time. Further the Sales Representatives were quite averse on the system on top of its ease of use and usefulness, as the avenues available to manipulate the selling system will be minimal during process of monthly target achievement. Therefore in order to build the confidence towards its ease of use and usefulness, the IT team had to conduct intensive training to all users including company and distributors. Finally they were able to make it a reality by realizing and being convinced its positive attributes.   
§  Storage of Information
PDA is able to store all the selling information that is required to proceed the re-distribution for the day. When the daily data is being synchronized it gives all information of the route to be covered for the day to achieve its daily target. Sales Representatives does not require to manually go through their route plan, previous visits, last selling records, credit terms, previous credits to be collected, amount of free issues and discounts to be extended to retailers, terms in accepting stock returns, authorized and unauthorized retailers etc. This makes life easy in performing the daily sales and collection.
§  Make to-do lists
PDA contains data that are required from the beginning of the day to end from each point. It makes life easy in re-distribution.
§  Take notes
It allows to note- down remarks and concerns during the day’s process to be referred during the next visit allowing the staff to organize their future plans.
§  Track appointments (date book, calendar) and Remind appointments (clock, alarm functions)
PDA allows tracking the special appointments made to other outlets and drop alerts during the days’ process and acts as a diary/calendar.
§  Perform calculations
PDA allows auto calculations. When the order is feed in to the PDA it automatically calculates the amounts payable, discounts allowed and the free issues to be granted. Representatives do not require to manual calculations or refer any memos on discount structures and free issues. This makes re-distribution faster and free of manual calculation errors.      
§  Quality of work life
PDA carries a personality. Representatives were carrying manual bill books, pens, calculators and carbon copies etc. in performing their duties before. When the PDA is being introduced, it carries only the devise and transactions are made using the stylus. This certainly carries a personality to the company representatives and enhances work quality.   
   Management reports and reviews
When the day’s sales/data are synchronized back to the system at the day end, it allows the management to review the information for decision making by the next day morning. This allows fast decision making and obtaining corrective measures if any deviations or errors were made during the re-distribution process. Further this enhances the data accuracy and making the monthly targets feasible.     
§  Monitoring malfunctions and obtaining corrective measures
As indicated above, the system allows analyzing the previous day’s data and is available in the next day for reviewing. With the previous method, the company couldn’t identify any malfunctions during the re-distribution process unless being visited the retailers and wholesalers personally and by checking the bills raised manually. With the introduction of the PDA as data are available on the next day, it allows the management to review the same and identify errors and take corrective measure immediately.     
§  Easy mentoring by field managers
Other than the management located in head office the Field Managers also given the facility to monitor re-distribution data and this makes further easy monitoring and decision making.
 Easy in reviewing monthly performance
Unlike the previous method, the data on re-distribution will be finalized by the month end, will be processed for the provision of management information by the first week of the next month. Whereas in the previous manual invoicing systems, the information was available for management decision making only at the end of the next month. This could be considered as one of the main advantage of the implementation of the SFA and gaining the user acceptance towards technology.
   
§  Easy of updating information and information circulation
SFA system could be made available with the latest information, decisions or the changes affected towards the re-distribution process. For instance if any prices changes, discount and free issue structure changes could be updated as soon as decisions are made and dispatched to the field staff through the process of synchronizing. This keeps the system live, realistic and accurate to meet the market competition.  
§  Internally developed software
The SFA system software is maintained by the IT department of the company. Therefore any changes could be effected immediately. Also the information requirement and report structures could be always modified and tailor maid as per the specific needs of the management to make the decision making process more effective.
   Top management commitment
The top management commitment offered throughout the process was a blessing. As the perceived usefulness they realized is highly positive, the implementation process was a success.
 Proper selection of tools and devices
Due to the proper selection of the devices the SFA system was perceived as easy to use by the users. Though the users were reluctant toward the new system initially, after being properly trained before to the implementation and on the job they were made positive towards accepting the technology.    
§  Extensive on the job training
Intensive and well organized training given to all the users of the company and the distributors had a high impact toward the perceived usefulness and the ease of use. Whereby they realized that, it is more beneficial to enhance the quality of work life.

§  IT field staff in trouble shooting
Further company deployed its own team in order to the trouble shoot while it is running. This helping hand was able to build more confidence among the users, thus making the technology being accepted by them.   
§  Simplicity of technology
The simplicity of the technology and the easy of handling the devise was a great help. The Sales Forces being employed by the company are mainly G.C.E O/L qualified and also from all over the island. Thus some do not have a proper education of the computer technology. The touch system and handling via stylus made the life easy of the user. As a result the newcomers were trained on the system within 3-5 days before being deployed to the field, thus perceived ease of use in the mind of the user was made positive.         
 To provide a better life and to create competitive during the re-distribution process the Darley Butler & Co., Limited, took the initiative of introducing the Sales Forces Automation System with the unvalued talent and the commitment of its IT team and the rest of the support services. Thus they were able to make it a reality and are well performing since today.  
In light of the TAM model, the main factors that contributed immensely towards its success are discussed in part 3. It is clearly evident that the success of any system implementation is heavily depends on the how the user is accepting the same. Thus in technology acceptance the perceived usefulness and the ease of use acts as main two variables that affects the attitude towards same.    


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