JESS WESTERLEY AT KAUFLAUF GMBH
A case analysis
Prof. Ranjeet Nambudiri
Organization Change and Developement
SECTION A - GROUP 2
Ankita Satija 2012PGP046
Kapoor Parth Sunil 2012PGP153
Kavya Amarnath 2012PGP163
Khurana Sonika Jagmohan 2012PGP167
Siddharth Singhal 2012PGP362
Sonakshi Behl 2012PGP366
Swati Verma 2012PGP395
Vivian Paul Gonsalves 2012PGP445
Alok Kumar 2012PGPM002
22ND JUNE, 2013
Kauflauf GmbH was founded in 2002.
First European organisation to offer _' software as a service'_
The product portfolio included Customer Relationship Management and ERP software for - Auto Parts, Computer/ Office Supplies and Medical Devices companies
Product owners worked with design team, sales force to prioritize new features and anticipate customer demands
Their competitive advantage was derived from their successful field consultants who provided consulting and support to customers
Kauflauf had three divisions:
Development and Support services,
They had a strong competitive advantage due to _hands on consulting_ provided by field consultants backed up by the development group. As opposed to competitors who targeted larger firms, Kauflauf targeted middle market (revenues from €100 million to €1 billion) and top-tier smaller customers.
_CLIENT EDUCATION, HAND HOLDING AND CUSTOMIZATION_ were the main areas of focus for the sales force, in order to obtain customer loyalty. The culture of the company was _YOUTH ORIENTED AND ANTI-HIERARCHICAL_ . It was characterized by small company friendliness and deep pride in superior software engineering.
An American woman who had lived with her family in Germany as a child, Jess had developed a love for the country and was fluent in the language. She has been hired as Assistant Product Owner (CRM product) for computer and office supply wholesalers and retailers.
Jess came with a proven track record. She had earlier worked with a rapidly growing CRM software service provider in the United States, where she demonstrated great success in growing market share.
Has high degree of analytical capabilities and keen grasp of market evolution.
Is deeply interested in computers, management and international business.
Able to speak German and form informal relationships with her colleagues.
To understand the market and customers.
To establish product development priorities to serve both existing and future customer needs.
To increase sales volume and enable greater penetration in the global CRM subscription software market
JESS WESTERLY'S PROPOSED CHANGE
Even if the external environment was not changing, the competitive landscape was stable and Kauflauf was doing well in terms of business and revenues, the company still required to bring about a change. The internal environment was changing and demanded for Kauflauf to shake itself up in regard to its strategy, processes and structure.
With its single minded focus to operate in the middle size market segment, the firm was operating in silos. There was a persistent failure to spot new development and opportunities in the market.
Thus, to trigger off innovation, increase sales revenue and build more agility in the company, Jess Westerly proposed a change in the sales call patterns at Kauflauf GmbH, with the field consultants redirecting atleast 30% of their time and focus towards larger, more established potential purchasers of CRM software services in the computer and office supply business.
Based on Jess westerly's own quantitative analysis and simulations, she had identified that:
Only 35 % of the consultant's time went to customers who produced 85% of the revenues, while the remaining time was spent with smaller, less profitable accounts
By reducing the time spent with customers with annual sales volume less...
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