Case Study 4 Homework The Three Primary Strategic Priorities Behind The

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Teaching Note on Case Study IV-6

The Challenges of Local System Design for

Multinationals: The MaxFli Sales Force Automation

System at BAT

Objectives

This case demonstrates the opportunities for, but complexities of, developing information systems

for multiple countries. Large multinational corporations are designed to leverage economies of

scale and scope across geographic regions, but these corporate goals can be challenged when

local market needs render a one-size-fits-all solution suboptimal. These issues are illustrated by a

[Note: This teaching note was prepared by the case authors: Michael L. Williams and Bradley C.

Wheeler.]

Overview

Large multinational corporations are designed to leverage economic efficiencies in economy of

scale and economy of scope across geographic regions. These efficiencies are challenged when

local market tastes, business processes, or regulations render a one-size-fits-all solution

suboptimal. In contrast, locally-tailored solutions may fail to leverage best practice, cost

The case illustrates these issues by focusing on a custom systems development project

for a sales force automation system that is needed in a number of local countries (end

markets) of a large multinational company (BAT). It is part of a business change initiative for

implementing best practice among a field sales force and gathering decision-making data. The

The central question of this case study forces students to consider what factors favor end-market

or centralized development in multinationals. Students are also forced to reconcile how the same

set of technology and best practices yielded vastly different results in different countries. The

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lack of obvious answers to these questions provides an instructor with a rich context for a case discussion.

Epilogue

Questions for Discussion

1. What business problem was MaxFli trying to solve? How would you rate its effectiveness at

addressing that problem?

business problems: 1) structuring the sales visit for BAT sales reps to maximize sales performance and 2)

2. Assess the specific choices made in launching and building the MaxFli project. Which decisions

(if any) proved wise and which ones created challenges for the current project or later?

The three primary strategic priorities behind the design of MaxFli were 1) a common, reusable and

scalable technology platform, 2) shared data between sales, accounting, and marketing, and 3) the

appropriate use of packaged software. While the wisdom of each of these priorities is difficult to argue

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3. What organizational factors explain the outcomes of the MaxFli project? (Some factors may

differ by end market; others may be common across the three end markets.)

4. What lessons can be drawn from the MaxFli experience? Is there a single best approach for

developing systems for use across a multinational firm?

There are several valuable lessons to draw from this experience. First is that there may not be a single

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75-Minute Teaching Plan

[Note: For this plan, the previous questions are assigned as pre-class thought questions.]

1. Begin class by asking one student to provide a 1-2 minute summary of the facts of the case and ask a

2. Ask the students if project MaxFli was a technology initiative or a business initiative, or both? What

evidence supports their conclusion? Does this differ by country?

3. If BAT has documented that a sales force automation system with handhelds is a common need in

many end markets, what factors should favor a centralized project managed from corporate

headquarters and what factors should favor a decentralized project? What are the risks of each

approach?

5. Many students will fail to recognize that not all end markets have the same needs at the same time.

6. At the time of the case, Central America was having great difficulties with the system

implementation. Why did this happen? How could these problems have been avoided?