Business Recipes for Success

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When I started my Now What, Cat? website, I blogged about almost everything under the sun until I noticed that readers would like me to stick to my original theme, that is humor and about life. The other side of me as a Certified Public Accountant and business consultant desire to write about business and accountancy So I came up with this blog, Business Recipes for Success.

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7.21.2006

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Outsourcing and Ana

I received two no-reply e-mails from DELL informing me that my account
was credited with the invoice value of the laptop that I ordered for my friend. What...?
I got no Dell account. So I exhausted all means to talk to a live person and not to
an automated answering system which redirects you to several options then at the end, nothing.

I got hold of one guy from Dell Preferred Account. Indian accent but with a non-Indian name. I started asking questions as to why is my account credited when I do not have one and I was not the purchaser, blahblah. I heard something like dialing up. I found out that he hung up on me when I kept on repeating my questions because he could not shed light on the issues, I brought up.I dialed again and this time, I got hold of Ana, so that's what she told me but her accent doesn't match with her given name since the people with that accent do not carry Christian names. This is the third time, I talked to A CSR whose names sounded like Filipino or Hispanic but their accents will tell you where they are really based.

Thank BPO for that. Business Processes Outsourcing for you.

For the last twelve years, offshore outsourcing contracts were awarded to two countries, China and India because the educated professionals in these two countries are willing to accept much lower wages than that of their counterparts in the US.

This was a hotly debated issue when alarmists attributed the increase of unemployment rate to the offshoring of the jobs to the less developed countries.
Many of those who are against outsourcing claimed that this business practice is depriving the locals the much needed jobs. Unemployment cause people to lose their purchasing power as consumers and therefore demand for non-basic products are
significantly affected.

Pro-outsourcing business processes however believe that it helps buoy up economy since it countributed to the GDP of the country. Industries can operate more efficiently at lower cost and therefore can flow back whatever savings are generated from offshoring businesses.

The savings are in the form of:

1. payroll and taxes not only for staff whose duties but also for administrative personnel whose functions are no longer needed
2. capital investments since companies in the developing economies take care of the necessary equipment and working capital to get the contracts.
3. reduce operating costs in the form of rent and other maintenance costs

Some reasons for offshoring business processes are:
1. gain access to the resources that are not available internally e.g.
professional ITs.

2. Transfer responsibility of functions that needed detailed attention and yet difficult to manage without needing a bigger number of employees.

3. Allow the company to focus on its main line of business.

4. Gain access to global market.

5. Share risks

5. Capital infusion

The cost- benefit analysis will only reveal the benefits quantified and qualified.
The success of the offshoring in terms of meeting the company's goal however depends on the evaluation of its effectiveness and efficiency as to the delivery of the services contracted.

As to Dell, there may be a need to evaluate the performance of the people who are handling the offshored activities. Giving them global sounding names would not help when customers would desperately demand for more efficient services via good communication.


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posted by cathy at 3:03 PM 0 comments

7.11.2006

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The Broken Window Theory and the On-line Ordering with Dell

The broken window theory when applied to business is anything about the power of perception of the customer, what they see, what they experience and what conclusions they draw from it.

The way the customer perceives the business is a crucial element in the success or failure of a business or simply a broken window for a big business that when left unattended would invite more broken windows that may lead to the collapse of the whole building.

The first time I ordered a computer from Dell online for a friend, it went smoothly from the processing of the order to the delivery. Thus, I recommended to another friend to buy one herself and I would help her out.

I did the ordering online and made a phone call to customize the basic components of the desktop by adding a floppy disc drive. Since the order was made using my phone, I requested the CSR to change it in their record to reflect the phone number of my friend.

The desktop was delivered and instead of a floppy disc drive, we found a hole in the tower where it should have been attached. So I called the technical support to complain. I was losing my patience when the techie insisted that there should be one.
Hey, I was already in my third pc unit and I should know how a floppy drive looks like. After having an ear fatigue for waiting for somebody to assist me, a CSR informed me that a floppy disc drive is going to be sent and with the further instruction to call Dell Tech Support for assistance in its installation.

When it indeed was delivered, I had to go to my friend's house to install it for her. So much time wasted for me. With the instruction from a techie, I opened the tower to install the drive. To my surprise, there was really a floppy disc drive inside but it
was detached with tangled wires. Talking about QUALITY INSPECTION. Hah

After a month of using the printer that went with the unit as a special promo for the month, it got broken. So, I got to call Dell again and they promised to deliver a new unit which got broken too after a few more months. My friend bought an HP printer.

My request for changing the phone was never done so, follow-up calls from Dell were always coursed thru my phone. Talking about inefficiency or miscommunication?

Last month, my friend wanted to buy a laptop. She was attracted by the low price for a laptop as sales promo for the month. I do not want to do the ordering anymore but I guided her in the website and the customization.

She printed the specific item that she ordered in order for her to be sure what she was ordering. In all that time, she was the one talking to the CSR. She gave her e-mail address and mine so I can check it out for confirmation.

An e-mail had been dispatched to my e-mail address. Did not bother to open since I knew it was just a cc for me. Later, I learned that she did not get the e-mail herself.

The laptop was delivered. I checked the packing the list. That item was never the good that was ordered. Instead of a pentium, it was a Celeron. For pc users, they know the difference between a pentium and a celeron. The monitor was not what it should. The capacity of the processor is just half of the unit ordered. Practically, it was cheaper than the unit that was bought.

So I made the call to have it replaced and the instruction was just mindblowing and crazy.

The CSR instructed me to write the authorization number for pick-up by the UPS
in the next 24 to 48 business hours. No one came to pick it up. So I asked my friend to choose the other option, that is to drop it at the nearest UPS center.

The UPS did not accept so she has to bring it home again. After a series of e-mails, to Dell, another pick-up schedule was made, this time in her office because there's nobody home to wait for the UPS guy.

After two weeks of waiting, finally it was picked up. The next problem, is the removal of the item from her account and that has to be checked again. Another headache. Oh Dell. And there had been reports of similar problem. The company has grown so big that one dissatisfied customer may not matter.

Let us remember the broken window theory.

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posted by cathy at 5:12 AM 0 comments