BusinessCase-Example-Doughlicious - Business Case Example...

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Business Case Example Doughlicious Pastry Delivery Opportunity Prepared By: Jeremy Aschenbrenner Date: 02/05/2017 Page 1
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EXECUTIVE SUMMARY Over the course of the previous 6 months, Doughlicious Pastry has lost significant revenue. An analysis revealed much of the revenue lost was due to customer dissatisfaction around a delivery process that was initiated in June of 2016. It is proposed an off-the-shelf, software as a service (SaaS) Delivery Tracking System (DTS) be purchased and configured to capture and automate much of the delivery process. The project is expected to take less than two months and is estimated to bring a Net Present Value of over $50,000 in ten years. PROBLEM STATEMENT Doughlicious Pastry’s revenue and customer satisfaction rating have decreased over the past six months. Through feedback received via customer surveys and comment cards, it has been determined a large cause of the losses were due to the new delivery services which started in July 2016. ANALYSIS In response to new competition with delivery options, back in July of 2016, Doughlicious Pastry added the ability for customers to have orders over $150 to be delivered to any location within 50 miles of the Doughlicious Pastry store for a small fee. This delivery option was something that was expected to increase customer satisfaction and revenue as it would provide convenience for the customer. From July 2016 to January 2017, Doughlicious Pastry lost nearly $22,000 in revenue. Keeping with this trend, losses are expected to be in excess of $40,000 by the end of June 2017 and above $40,000 for each additional year. To identify the issue of the decreased revenue, in December of 2016 Doughlicious Pastry customers were surveyed. It was found that customer satisfaction rating had decreased from 4.7 of 5 (June 2016) to a 4.2 of 5 (January 2017). Over 75% of the surveys indicated the delivery service was the cause of their dissatisfaction. Of the customers unhappy with the delivery services, there were three key reasons that stood out. Delivery was late – 38% Delivery never arrived - 31% Incorrect invoicing – 27% To dig deeper into the root cause, the current delivery processes were scrutinized. It was found that employees have been utilizing the Doughlicious Pastry System to enter the orders (business as usual), but follow a manual, undocumented process to indicate the order for delivery. Once the order has been entered into the system, the current process has them print out the order information, hand write the delivery information (address, date, and time), and pin the paper to the bulletin board outside of the General Manager’s office. Each morning, the General Manager searches through the delivery slips pinned on the board and pulls down the ones for that day. The Manager then puts the delivery slips in order based on the delivery time requested and places them in an inbox outside their office.
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