Business Case

AtoZ Pharmaceuticals
November 1, 2015
Business Case
For Sales Force Automation
By: Pallavi Vachaspati

Businesscase forSalesForce Automation
2
Contents
Introduction.................................................................................................................................4
Executive Summary...................................................................................................................5
Database.....................................................................................................................................5
Hardware....................................................................................................................................5
Background...............................................................................................................................5
Benefits......................................................................................................................................5
Conclusions...............................................................................................................................6
Assumptions.................................................................................................................................7
Data Sources.................................................................................................................................7
Current Situation........................................................................................................................8
Competitors with automated systems..............................................................................8
Revenue Generation Comparison.......................................................................................8
Comparison of Order Cancellation by Customers..........................................................8
Projected Profit if Status Quo is Maintained..................................................................8
Scope ..............................................................................................................................................9
Project Scope Description ....................................................................................................9
Project Date ..............................................................................................................................9
Project Budget..........................................................................................................................9
Allocations...............................................................................................................................10
Project Charter.......................................................................................................................10
Project Deliverables..............................................................................................................10
In Scope ...................................................................................................................................12
Product Acceptance Criteria - Summary........................................................................12
Cost-Benefit Analysis...............................................................................................................12
Revenue earnings per year over the next five years...................................................13
Cost Benefit Analysis on the basis of options..................................................................14
Maintaining status quo........................................................................................................14
Automation through tablets...............................................................................................14
Automation using laptop computers...............................................................................15
Cost Benefit Analysis on the basis of implementation period ....................................16
Weighted Scoring......................................................................................................................17
Risks and Constraints .............................................................................................................17

3
1.) Non-Acquisition of New Automation Materials ......................................................17
2.) Acquisition of Tablets or Mobile Hardware..............................................................18
3.) Acquisition of Laptops and Printers..........................................................................18
Implementation Plan (Milestones).......................................................................................19
Recommendation and Conclusion.......................................................................................19
Closing..........................................................................................................................................19

4
Introduction
This is a business plan to discuss sales force automation for AtoZ Pharmaceuticals Ltd.
It is proposed that the company’s 280 strong sales force be equipped with appropriate
technical devicesand the capability of accessing a centralized database of information
which will reside in the cloud and be available through a secure server.The
implementation of this plan is expected to improve efficiency and save time for the
sales force, whichwill also helpin streamlining the production and procurement side
of the company.
Based on available researchdata, competitor information and analysis of the last
year's overall performance, threepossible scenarios have been compared in this plan.
These are – maintaining the statusquo, equipping the sales force with tabletsor
laptop computers resulting significant increase in quality, productivity, time
management and more due to the resulting cost effectiveness.
Although the huge effort and expense that an enterprise of this magnitude entails is
fully recognized and acknowledged, it is not only justified but imperative due to the
detrimental effects of the present system. This fact will be clearly evident through the
figures and analysis presented in this plan. It is therefore hoped that this plan will
serve as an eye-opener and be instrumental in procuring the necessary resources for
making it a reality.

5
Executive Summary
This plan proposes full automation for the company’s sales force of 280 people, by
creating a cloud based database and equipping all salespersons with laptop computers
to access it.
Database
 The database created will be accessible through a secure server and will contain
all the elements required by the salespeople to fulfill their obligations.
 It will include up-to-date product inventory, information about products in the
pipeline and their tentative launchdates, promotional materials, learning
management system,performance tools, newsfeed and updates, sales forms,
contracts and agreements.
 Order submission, order statusinformation,shipment tracking and payment
information will all be available through that database.
Hardware
 Each salesperson to receive a laptop computer
 Each salesperson to receive a wireless inkjet printer compatible with the laptop
Background
 Compared to last year, revenue remained static over the same period even
though the number of customers increased.
 The number of canceled ordershas increased by 20% over the previous year
 Major competitors have moved to automation due to which their goodwill has
increased
 The declining trend in profit, due to revenue being staticagainst increasing
costs, is expected to worsen.
Benefits
 A 12% decrease in order cancellation is estimated if sales people have access to
real time informationabout product availability.
 Potential businessgrowth of approximately 27% (+/- 4%) can be expected with
increased salesand more streamlined production, through speedy order
fulfillment possible with automation.
 Reputation in the industry will improve with the company being perceived as
more professional.
 It is estimated that the expense of implementing the project will be less than the
loss of profit over the next 4 years if nothing is done.
 It will increase the value of the company’s sharesand shareholders' dividends,
and thus the financial value of AtoZ Pharmaceuticals Ltd.

6
Conclusions
 On comparing 3 possible scenarios – Keeping things as they are, equipping the
sales force with tablets, or equipping them with laptop computers, it was found
that computers would be the best possible option.
 The revenue benefits of sales force automation will be enough to annul the
expense within4 years.
 The improvement in goodwill and reputation will be immense but currently not
quantifiable.

7
Assumptions
It is assumed that:
 The entire project can be assigned to a single vendor and coordinating various
parts of the project with more than one vendor will not be required.
 All materials, such as the laptops and the software licenses required for
installation, can be delivered on time and without need for repairs, replacement,
or initial support upon receipt.
 The vendor will accept liability for any problems on their end during deployment
and will compensate the project accordingly should any of the above issues
occur.
 The budget allocated for the project will attract bids from enough competent
vendors for the company to review multiple selections and make an informed
choice based on the requirements, quality of vendor service and overall cost.
 All costs by the vendor will be made apparent at the point of proposal and that
no additional costs will be incurred during the ordering, shipping, and end
deployment of the laptop units.
 The software and training materialsrequired by the company are either already
available or can be easily customized to be applied to the specific needsof the
company.
 The vendor will provide server and technical services at least for 4 years without
any service interruptions.
Data Sources
Performance Analysis(2014 -2015) byKnow Your StandingLtd.
Pharma IndustryResearchService
Industrytrends Guru– 2015

8
Current Situation
Competitors with automated systems
Company
name
Year of
Automation
Current share
price
As of October
28, 2015
Rise in share
price since
automation
Market
segment in
Canada
Panceron 2008 $28.19 28.19% 3%, rise of 10%
Remedy Plus
Inc.
2011 $23.79 39.85% 1.6%, rise of
13%
Doctrine Inc. 2012 $17.12 47.65% 2.1%, rise of 9%
Getwel
Pharma
2014 $34.19 52.34% 2.4, rise of 11%
AtoZ Ltd. 2015 $14.12 Projected rise
33%
Projected
segment 2.1%,
rise of 14.1%
Please note: This index is as per current stock market trend.
Revenue Generation Comparison
Period Number of
Customers
Total Sales
Revenue
Average sale per
customer
Jan. to Oct. 2014 287 $5275600 $18382
Jan. to Oct. 2015 312 $5282100 $16930
Comparison of Order Cancellation by Customers
Period Total number of
orders
Cancelled orders Percentage
cancelled
Jan. to Oct. 2014 1259 93 7.39
Jan. to Oct. 2015 1356 120 8.84
Projected Profit if Status Quo is Maintained
Based on projected costs and revenues, the followingchart has been prepared to
display expected trends if the company continues doing business using the present
processes.

9
From the chart above, it is obvious that costs are expected to rise faster than revenue
which will have a direct impact on profits. In fact, the total loss of profit in 2016, 2017
and 2018 will be approximately $357,100 which is marginally less than the total cost
of implementing the automation project. By the end of 2019, the total loss in profit will
amount to approximately $1,065,600, which will be only a little lessthan twice the
cost of this project.
Furthermore, the company’s market segment will shrink from current 1.5% to 0.95%
in the industry over the years. Its shares in the stock market will drop significantly.
Based on these factors, it is vitally important to implement automation for the sales
force. Not doing so may actually cause operations of the company to become unviable
beyond the next 5 years.
Scope
Project Scope Description
This project will provide automation to a salesforce of 280 across the country. Hence,
requires the purchase of 280 laptops and desk-top printers. Employee training will be
in every provincial and territorial office meeting the training deadline. For product
distribution countrywide, a vendor with cross-country logistical capacity is needed.
Project Date
November 15, 2015 – December 14, 2015.
Project Budget
$584,000.00

10
Allocations
Cost of 280 laptops $280,000.00
Cost of 280 printers $84,000.00
Distribution and Installation $30,000.00
Bidding for Server Contracts $12,000.00
Employee Training $64,000.00
Test and Trial Cost $15,000.00
Other Computer Accessories $60,000.00
Salary Cost and Travel Allowance $28,000.00
Others $11,000.00
Total budget $584,000.00
Project Charter
 Maintain cost effectiveness and high quality of products and services
 Ensure deadlines are met and everything is completed ahead of deadline
 In case of budget increase,Mohammed Helal will propose to the vice president,
Finance.
 The automation should be employee friendly regardless of their background,
education and knowledge
 The project members will maintainclose contact with each other to ensure the
project runs smoothly
 If there is any conflict opinion and decisions, more options will be sought and
analyzed and the best one will be accepted.
 Maintain loyalty, commitment and integrity to add value to the project and the
organization.
Project Deliverables
Laptop Specifications
 1.45 GHZ Intel PentiumProcessor
 8 GB RAM
 1 TB memory
 17” monitor 1080
 Battery length 6 hrs.
 Weight 12 lbs. maximum
 In-built MS Office Professional
 Color: Black
 Mouse: Wireless
 Keyboard: Standard Windows
Printer Specifications
 Print, copy, scan, fax, photo
 First page out (ready): Black:As fast as 19 sec & Color: As fast as 24 sec
 Print speed black: Draft: Up to 21 ppm. Print speed color: Draft: Up to 17 ppm

11
 Print quality black (best): Up to 1200 x 600 rendered dpi
 Display: 5 cm (2.0") Hi-Res Mono LCD
 Copying / Max Copying Resolution B/W:300 x 300 dpi
 Processor / Clock Speed:360 MHz
 RAM / Total Installed Size:64 MB
 Printer Type: Multifunction
 Printer Technology: Thermal Inkjet
 Duplex Printout: Automatic
 Duty Cycle: Up to 1000 pages
 Printer Speed: black: ISO Laser comparable: Upto 8.8 ppm, Draft: Up to 21
ppm; color: ISO Laser comparable: Upto 5.2 ppm, Draft: Up to 17 ppm
 Header / Model: HP Office jet 4630
 Printer / Max Resolution ( B&W ):1200 dpi x 600 dpi
 Printer / Max Resolution ( Color ):Up to 4800 x 1200 optimized dpi
 Scan Area:8.5 x 11.7 in
 Scan Depth:24-bit
 Printer / Media Type: Paper (plain, inkjet,photo), envelopes, transparencies,
labels, cards, Printer Media Size (Standard):Letter, legal, 4 x 6 in, 5 x 7 in, 8 x
10 in, envelopes (No. 10)
 Service & Support Type: One-year limited hardware warranty
 Scanner Type: Automatic Document Feeder Flatbed Scanner
 Copying Speed (Color):Upto 4 cpm
Server and Technical Service
 Server for auto-dialing and servicing for the company’s sales force.Vendors
bidding must be located in Ontario.
 The bidding company must have five year record of no service interruption
 Must have technical department on 24/7 environment. Technical assistance
includes:
- Password setting
- Debugging
- Rebooting
- Software and hardware management
 Must have technology against any virus attack and auto-recovery system
 Must sign the company’s Privacy Policy guidelines
 Maximum bidding for tandem service and auto-dialing $50,000.00 per year
maximum. Only the lowest bid will be acceptable
 Maximum bidding for technical service providing $60,000.00 per year
maximum. Only the lowest bid will be acceptable
 Contract is valid for 4 years.Subject to extension upon successful completionof
the contract
 Auto-dialing period from 9:00 a.m. to 8:00 p.m. EST.

12
 The procurement of a central storage service such as a central server or cloud
service which is usable by said software.
In Scope
 Purchasing the specified hardware and configuring it to perform the required
functions
 Installing of the required software and verification of its function
 Procuring of a central storage service such as a central server or cloud service
which is usable by the installed software
 Connecting to that central server or cloud service
 Testing to ensure that the software and its connectivity works
 Settingup an efficient virus safeguard and auto-recovery system
 Shipping the finished units to the designated members of the sales force
 Providing training assistance and documentationto the sales force
 Formulating and having the vendor sign the company’s privacy policy and a
post sales service and support agreement for 3 years
Out of Scope
 Changing purchase quantities due to joining or leaving of sales persons
 Building software in case available options are not found suitable by the
management
 Providing support to non-computer-literate salespersons
 Any other activities not specifically stated within the project's scope
Product Acceptance Criteria - Summary
 Signed statement from the leader of the company’s technical team stating that
the laptops are according to specifications
 Signed statement from the leader of the company’s technical team stating that
the software installed has been tested and confirmed as working satisfactorily
a. Signed statement from the company’s Director of Sales confirming that
support serviceshave been tested and found satisfactory
b. Electronicproof of password set up by all the salespersonsor satisfactory
proof that the functionality was available but not used.
c. Every undelivered laptop sent to the company's head office with proof
that delivery to the appropriate salesperson was attempted
d. At least 80% of the salespersons pass the post-training test that they will
be required to complete.
Cost-Benefit Analysis
Total cost of the project: $584,000.00

13
Equal depreciation over the next 5 years:$116800.00
Other expenses like papers, printers’ ink cartridges per year $60,000.00
Sales increase per sales person per year $3,000 (minimum)
Savings in information and data management, and accounting and payroll
management per year $40,000.00
Revenue earnings per year over the next five years
Revenue increase (280 x 3,000) = 840,000.00
Cost savings (data and accounting) =40,000.00
-------------------------------------------------------------------------------
Total revenue increase = 880,000.00
Minus depreciation per year = 116,800.00
Minus other expenses(inks and papers) = 60,000.00
----------------------------------------------------------------------------
Net revenue increase per year =$703,200.00
Additionally,this automation opens the door for the smooth introduction of new
products and services for AtoZ pharmaceutical company.

14
Cost Benefit Analysis on the basis of options
Given below is a comparison of costs versus benefits for each of the three options
chosen.
Maintaining status quo
The cost of doing this will be zero right now and can only be studied on the basis of
the loss that it will cause in the form of reduced profits. It can be further assumed
that the dollar will decrease in value by approximately 3% per year which will further
reduce the real value of the profit that gets generated.
The table bellow provides the estimate of the projected profit at the present value over
the next 4 years.
Year Profit Loss due to
$ value
Present value
2015 2556800 N/A 2556800
2016 2528200 75846 2452354
2017 2472900 146148.39 2326752
2018 2199700 192093 2007607
2019 1491200 171051 1320149
On the basis of this data it can be seen that profit can be expected to decrease by over
48% in real terms over the next 4 years if this course of action is followed.
Automation through tablets
Using tablets instead of laptop computers requires a foray into unchartered territory
as listed below
 It is realized that the tablets will cost less than laptops and allow much higher
portability. This will result in higher employee satisfaction but that may be
offset by the fact that the keyboard and the screen may be too small for most
people to work comfortably on it.
 A lot of research will have to be done to determine if compatible versionsof all
the software required existsfor tablets. This is not only with regards to
company specific software but also common applications like Microsoft Office
which the employees will need on a regular basis for making presentations,
compiling information and fulfilling their other responsibilitiesin the most
efficient manner.
 This option will entail a very comprehensive examination of the hardware
market to determine which printersare compatible withwhich tablets and at
what price. This information is not readily available because tabletsare
generally viewed as convenience commoditiesrather than professional
equipment.

15
 The research into all these factors is likely to take several weeks and the cost of
doing that may actually exceed the estimated savings that may potentially be
realized through opting for tablets rather than computers.
 The time required for doing this research may actually cause the project to be
delayed beyond the optimal timeframe.
Due to the unavailability of any reliable data with regards to tablets, it is not possible
to do a Cost Benefit Analysis for going with this option. In view of this situation,it
would be best not to consider tabletsas a viable option for this proje ct.
Automation using laptop computers
Given below is the estimated profit over the next 3 years if salesforce automation is
implemented by equipping the employees with laptop computers. The profit has been
derived on the basis of adding the savings in payroll and accounting to a very modest
increase of $3000 in revenue, per sales person, per year to the presently projected
figures,and reducing the cost of depreciation and other expenses from that revenue
for each year.
The profit for 2015 has been reduced by $584000 which is the estimated cost of the
project.
Year Profit Loss due to
$ value
Present value
2015 1972800 N/A 1972800
2016 3191400 95742 3095658
2017 3799300 224539 3574761
2018 4189300 365839 3823461
On the basis of this table, it can be clearly seen that profits are going to trend upwards
even after the declining value of the dollar is factored in.

16
Cost Benefit Analysis on the basis of implementation
period
Upon review of several factors it has been determined that the time period selected for
automation is the optimal one and most favorable in terms of costs versus returns.
The reasons for this opinion are:
 The cost of hardware has been decreasing marginally over the last few years.
 The software needed by the company has been in the market for almost 7 years.
It has been used and tested by other companies resulting in most bugs being
removed. Therefore it can be procured in a reasonably perfected state.
Implementing this project sooner could have caused increased expenseson
account of bugs.
 The market currently has vendors who are able to bid for completing the entire
project which will result in savings due to low cost of co-ordination and
planning.
 Competition among vendors is likely to ensure the procurement of quality
products and services at a reasonable cost.
 There are still several competitorsthat have not moved to automation, so at
present the company is in a healthy financial state.
 Automation at this point will ensure the continuation of the company's financial
healthand also provide opportunity to increase its market share by procuring
business from less agile competitors.
 Waiting to implement this project may cause any savings on the basis of lower
hardware and software costs to be annulled due to the corresponding loss in
revenue.
The table below shows why this is the best time to implement sales force automation,
based on estimated costs adjusted on the basis of the present value of the dollar,
estimating a decline of 3% per year.
Year Project cost Change due to
$ value
Present value
2013 655000 39890 694890
2014 620000 18600 638600
2015 584000 N/A 584000
2016 550000 16500 533500
It can be seen from this table that if the company had implemented automation in
2013, it would have spent almost $111000 more at the dollar's present value. On the
other hand if it waits until 2016 to implement this project,it will spend about $50500
less at the dollar's present value but will also have to contend with a loss of profit of
$643304, since this is the difference between $3095658 (estimated profit in 2016 at
the present value if automation is implemented now) and $2452354 (estimated profit

17
in 2016 at the present value if nothing is done). It is very obvious that the cost of
waiting far outweighsthe savings.
Weighted Scoring
The table below shows how each of the three options score against the other two on
the basis of various parameters.
Score
Categories:
Scoring
(/100)
No Changes Tablet /
Mobile Option
Computers &
Printers
Financial
Cost
15 15 8 5
Training
Cost
10 10 5 5
Ongoing
Support
Costs
10 9 4 5
Mobility 5 1 5 4
Paper Use
Reduction
5 0 5 4
Sales
Processing
Time
30 10 25 30
Client
Relations
Efficiency
20 5 15 20
Adaptability 5 2 3 5
( 100 ) 52 69 78
Risks and Constraints
The greatest constraint involved with the project is its budget. While time is critical in
addressing the needs of the sales team in a quick and efficient fashion,the primary
difference between the available options is the per-unit cost and training cost
associated with each option.
1.) Non-Acquisition of New Automation Materials
The greatest risk involved with not acquiring a new automation method would
primarily fall into the category of lost opportunity cost. While it would conserve budget
in the short term, and would save time in needing to retrainthe salesstaff in the use
and functions of their hardware and software, the trend towards electronic salesand
client-management systemsmeansthat AtoZ Pharmaceuticalswould run the very real
risk of lagging behind its competitors in terms of sales capacity and in terms of overall
attractiveness to clients.
In addition, while the cost of new hardware may seemhigh in the short-term, there is
also the risk that a project of this scale will become more expensive and time -

18
consuming as time goes on. If the company continues to grow at the rate it has, it may
need to outfit and train a larger sales force, whichcould result in longer overall
deployment and training times.
2.) Acquisition of Tablets or Mobile Hardware
The prospect of choosing a more moderate option (in terms of budget) and going with a
more compact (and arguably, stylistically attractive) option of tablets or other mobile
hardware,causes concernsregarding the overall limitations and suitability of the
hardware,combined with a fundamental lack of knowledge of the inner workings of
tablets. Most tablets currently produced are highly proprietary both in terms of their
design and their operating systems,and accordingly,there is less transparency
between the hardware's operation and AtoZ Pharmaceutical's overall purview.
This root issue raises a few associated concerns. To begin with, should any issues
arise withthe hardware or software,it will be significantly more difficult to affect
repairs in the field. Most tablets require consultation with (or shipping to) the original
manufacturer for repairs, while laptops are by nature more modular and can be dealt
with by independent support parties should the need arise.
As well, the hardware and software limitations of the tablet option are of particular
concern. It must be guaranteed that the tablet in question must have sufficient
memory, processing capacity, and storage space to be able to handle the necessary
ordering and client management software, as well as being able to communicate with
the company’s central system as securely as possible (to avoid breach of privacy
issues). The ability to connect to and use a printer is also of primary importance –
while the overall goal is to minimize the amount of paper used and transition as many
functions as necessary into automation, documents such as receipts and optional
paper invoices will still need to be printed.
3.) Acquisition of Laptops and Printers
The risk with this option is considered to be minimal compared to the other two: This
falls primarily into the categoryof overall implementation cost, both in terms of
finance and in terms of complexity.
There is no question that out of the three options available, the acquisition of full-scale
laptops and portable printing equipment entails the highest immediate cost. However,
the power of the individual units and their versatility in the field would cause the
lowest possible risk in terms of lost opportunities, as the laptops will be able to fulfill
all the presented requirements. As well,they are more easily updated / upgraded than
the tablet option in the event more powerful hardware or software is needed.The
company must, however,ensure that investment in this option does not hurt its
budget to such an extent that other elementsof the company are hindered by a lack of
funds. This information,and the risks associated with them are dependent upon input
from Finance.

19
The other risk is that those within the sales department will have difficulty growing
acclimatized to the new equipment. While the training is not unduly intensive
compared to other software suites,moving to an entirely new system may prove an
intimidatingand complex task to those on the salesteamwho are not typically
technically-inclined. This could cause delaysgetting the sales agent effective in the
field and may harm their image of professionalismif they're sufficiently uncomfortable
with the new equipment. However, this will be largely mitigated by making ongoing
support more available to them, and ensuring that they feel comfortable enough with
that availability and get reassured about using the new equipment.
Implementation Plan (Milestones)
 Purchase deadline - December 5, 2015.
 Installation deadline - December 19.
 Bidding for Server and Technical Service completion date - December 20,
 Test and trial deadline - January 5,
 Employee training completion deadline - January 29.
 Project Closing - February 14, 2016.
NOTE: Every Friday, there will be a meeting with Project Manager John Anderson and
Vice President Carol Winston, to discuss project implementation,milestones,control
and management.
Recommendation and Conclusion
In conclusion, the project team highly recommends the immediate completionof this
project. It is emphasized that the successful implementation of this project will
substantially increase the company’s revenue, profit, earnings, and market share.
Employee satisfactionrate will go up, as will customer satisfaction. In the end, the
value of AtoZ Pharmaceuticals will rise in the market as its automation will allow it to
be more flexible and process salesmore quickly and conveniently. This automation
will add a new dimension to the work and culture in this organization.
Closing
After closing this project,Pallavi Vachaspati is going to send an executive summary to
the management, stakeholdersand SMEs.

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