BMIS/BACC 2410/2411 Class 1



Business Area Analysis for

Katz Klassic Kars Marketing

Date: April 9, 1998

Introduction

The purpose of this document is to capture the results of the analysis of a business area. This information is a critical prerequisite to the establishment of a strategy for a business area that defines requirements and articulates the means for implementing a business solution that meets those requirements.

The Business Area Analysis Document consists of the following sections:

• Business Overview

• Project Definition

• Objectives

• Context

• Process

• Data/Subject Areas

• Issues & Considerations

• Terminology

Date(s) of BAA:

Location:

Participants:

|Name |Department |Role |

| | | |

Business Overview

Using outline format as much as possible, describe the current situation in the business area, highlighting the problems and/or opportunities this project is to address.

The Business:

Katz Klassic Kars sells antique, exotic, and other collectible used automobiles. No new cars are sold; they sell high-performance collectibles such as Porsche, Ferrari, Lamborghini, luxury collectibles such as Rolls Royce, Bentley, Mercedes, American classics from the 50's such as 55 - 57 Chevies & Thunderbirds, and muscle cars from the 60's such as GTO, Road Runner, and Z28. Cars are displayed in a showroom where they are sold by a small sales force. Katz Klassic Kars also maintains a service department to service and repair the vehicles they sell. The service department also services vehicles of this type that were not sold at the dealership.

Growth Opportunities:

The very strong economy, which has lasted for many years, has led to a steady increase in sales as the number of individuals with the necessary disposable income to buy a classic car has increased. It has also increased the number of people who can afford to own more than one classic car. The Internet has also meant that it is possible to reach a larger number of potential clients.

Customer Service Challenges:

The new customers in this market have generally not owned a classic vehicle before, and have little patience for the traditional inconveniences associated with obtaining and owning a classic car. They expect to see a vehicle in a spotless showroom, not a run-down garage. They are not home-mechanics, and usually have no interest in restoration. Finally, and most challenging of all, this new group of well-do-do potential customers has come to expect Lexus or Mercedes levels of reliability in their vehicles. Most older cars were never that reliable to begin with, and as they age, durability is a problem.

The Vision:

The experience of buying and owning a classic car should be as pleasant, easy, and hassle-free an experience as for a new car.

A New Marketing and Service Strategy:

In line with the new vision, Katz Klassic Kars wants to completely revamp its approach to marketing to take full advantage of information technology. This includes:

• Get more leverage from customer information. Based on customer profiles, contact those individuals we believe would be interested when a particular vehicle comes in (and perhaps even steer a customer away from a vehicle they might not enjoy owning)

• Sell more vehicles on consignment and to people not in the local area

• Establish a pro-active service program similar to those used in new-car dealerships, where customers are contacted on a regular basis to advise them that some particular service should be performed

Project Definition

1 Project Name: Katz Klassic Kars in the New Millenium

Within the scope of the business area under analysis, the mission statement should clearly set an overall direction. In order to accomplish the mission, a number of specific objectives (defined in the next section) will have to be met. The format of the mission statement should be of the form "verb phrase - noun phrase" e.g. "Develop and maintain a customer service operation that is the most efficient and responsive in the industry."

2 Project Mission: Dramatically increase top-line revenue growth in sales and service while maintaining a high level of personalized customer service.

Objectives

Objectives are statements of desired outcomes. As with the mission statement, they should be of the form "verb phrase - noun phrase" e.g. "Reduce the number of customer call-backs to less than ten percent of total call volume." If possible, it is preferable to use verbs to which metrics can be applied (such as "increase" or "reduce") and to avoid generalized verbs with too broad a meaning (such as "manage" or "monitor").

Objectives should focus on "what," not "how."

1 Business Objectives

1 Increase repeat sales to existing customers by 25%

1 Notify customers when we get a vehicle they’d be interested in

2 Maintain “want lists” for customers

3

2 Provide twice-annual scheduled maintenance service for 85% all vehicles we sell that remain in the local area

1 Pro-actively notify customers & schedule service appointments when their vehicles are due for scheduled maintenance

3 Increase the relative compensation of top-performing sales people

2 System Objectives

1 Maintain current and highly accurate (99%) records on all

1 Customers

2 Vehicles they own

3 Vehicle service histories

4 Sales people

5 Vehicles in inventory

Context

Understanding a business area's environment is critical to understanding their processes. This understanding is captured via the context. Agents supply information inputs (inflows) to the business area, while the business area supplies output information (outflows) to the Agents. There are two types of agents - those outside the company (such as a customer or supplier) and those within (such as another division or department).

1 Agents Outside the Company

1 Customer

1 Inflows

1 Purchase

1 description:

2 media:

3 volume/frequency: irregular

2 Inquiry about a vehicle in stock

1 description:

2 media:

3 volume/frequency: irregular

3 “Want list”

1 description:

2 media:

3 volume/frequency: irregular

4 Appointment for service

1 description:

2 media:

3 volume/frequency: a few times a year

5 Brings vehicle in for service

1 description:

2 media:

3 volume/frequency: a few times a year

6 Referals

1 description:

2 media:

3 volume/frequency: irregular

2 Outflows

1 delivered vehicle & paperwork

1 description:

2 media:

3 volume/frequency:

2 information about in-stock vehicle

1 description:

2 media:

3 volume/frequency:

3 service appointment confirmation

1 description:

2 media:

3 volume/frequency:

4 completed service documentation

1 description:

2 media:

3 volume/frequency:

2 People we get cars from

1 Inflows

1 information about vehicles

1 description:

2 media:

3 volume/frequency:

2 invoices

1 description:

2 media:

3 volume/frequency:

3 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

2 Outflows

1 purchase vehicle

1 description:

2 media:

3 volume/frequency:

2 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

3 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

2 Agents Inside the Company

1 Service Department

1 Inflows

1 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

2 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

3 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

2 Outflows

1 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

2 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

3 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

2 Business Office

1 Inflows

1 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

2 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

3 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter inflow here

1 description:

2 media:

3 volume/frequency:

2 Outflows

1 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

2 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

3 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

4 select and enter outflow here

1 description:

2 media:

3 volume/frequency:

Process

1 Primary Business Functions

A business area typically performs a small number of business functions. A business function is a group of activities and decisions which collectively contribute to one aspect of running a business. Business functions consist of one or more processes. A process is the basic unit that is examined and redesigned during reengineering. Business functions and processes identify and describe what is done, not how it is done.

1 Sell cars

1 Showroom service

2 Proactive contact

2 Sell service

2 Events/Triggers

A business event is an occurrence which causes the business area to take some action. External agents trigger actions by inbound events. Outbound events leave the business area destined for an external agent. Transactions are named business events that typically involve structured processing.

The inbound and outbound events identified below should correlate to the External Agents and their accompanying inflows and outflows identified in the Context Analysis as well as with

1 Inbound Events

1 Customer buys a vehicle

2 Customer requests service appointment

3 Customer brings in vehicle for service

4 Customer requests information

1 in stock

2 wish list

2 Outbound Events

1 Deliver vehicle

2 Deliver service

3 Contact customer to inform about vehicle availability

4 Contact customer to schedule service appointment

5 Provide customer with information about vehicles

1 in stock

2 wish list

3 Transactions

1 select and enter event here

2 select and enter event here

3 select and enter event here

3 Roles/Functions

This section identifies the roles that are involved in the above-identified processes. These roles may or may not correspond to job titles, although that is a useful way to start. The goal in this section is to identify what the roles are and what functions they perform.

1 Sales Manager

1 function: supervise sales area

2 function: approve deal terms

2 Salesman

1 function: sell vehicle to customer

2 function: prospect

3 function:

3 Service Marketing Manager

1 function: supervise marketing of service

2 function:

3 function:

4 Service sales

1 function: schedule appointments

2 function: write up service

3 function:

Data/Subject Areas

A business area needs information in order to function. Much of this information is saved -- either formally or informally -- in one way or another, whether in paper files, computer databases, or mounds of paper on someone's desk.. This section seeks to identify the major areas about which the business area gathers and maintains information. Subject areas are the "things" or "objects" in which the business area is interested.

Many business areas maintain information about such things as customers, products, vendors, contacts, orders, invoices, payments, etc. It can be useful to take advantage of the outline to capture information about important data elements, or other types of classifications.

1 Customer

1 Name

2 Address

3 EMAIL

4 Phones

2 Vehicle

1 VIN

2 Make

3 Model

4 Year

5 Condition

6 Assessed Value

7 Owned by

3 Service menu

1 Service Description

2 Service Price

4 Vehicle Service History

1 Date

2 Service Performed

5 Sales

1 Vehicle

2 Date Sold

3 Sold to

4 Sold By

5 Dealer Cost

6 Selling Price

6 Sales Person

1 Name

2 SSN

3 Date of Hire

4 Commission Rate

Issues and Considerations

Use this section to capture items that cause persistent disagreement, or that the team cannot otherwise resolve, perhaps due to insufficient information.

1 select and enter issue here

2 select and enter issue here

3 select and enter issue here

4 select and enter issue here

Terminology

Use this section to define terms or acronyms the meaning of which would not be obvious or apparent.

1 select and enter definition here

2 select and enter definition here

3 select and enter definition here

4 select and enter definition here

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