Celcon Axiata Berhad (cb) Case Study

1. Explain the problem detailed in this case encountered by CAB.

Celcon Axiata Berhad or (CAB), Malaysia’s oldest and largest telecommunication organization, struggled to maintain its competitive edge.  As CAB grew, it failed to support its growth, remain competitive, and integrate technology and business processes.  CAB needed to profile its customers better to offer to individualize marketing plan based on usage to stabilize retention and increase market share.

CAB had several legacy software systems designed for their old model which could not interact with each other making it difficult for business functions to know what was going on in different functional areas resulting in inefficient operations, waning sales, and frustration with customer service for existing customers.  The business had insufficient data to forecast, research, or develop new products and services  

1. Summarize the organizational, management, and technology components that added to this problem.

1. Management

Management’s job is to formulate action plans for staff and make sense of organizational decisions to solve organizational problems. (Laudon 2018, p. 21)  Customer data from one system were not readily available to other systems. (Laudon 2018, p. 357)  Customer agents toggled between two to five screens resulting in long call-handling times frustrating customers.  (Laudon 2018, p. 358)  To fix this problem, CAB relied on manual processes which were outdated such as paperwork during activation to bridge the technology gap.  Customers were also frustrated as their multiple mobile phones were not a single record.  The information appeared in different databases by device, plan, or type creating frustrations for both customers and employees.  CAB’s inadequate distribution model caused poor inventory control, lost customers and revenue.  As a result, service representative wasted valuable company and customer time making sense of a customer’s scattered various records in the system (Laudon 2018, p. 357) Thus, making it difficult to plan operations or accurately forecast demand, sales, procurement, and distribution.

1. Organizational

An organization is a collection of routines and procedures that create a proper work environment to connect the work and staff.  It is the foundation devoted to efficiently accomplishing the firm’s objectives. (Cognitel Training Services)  The business process at CAB could not provide a complete view of customers.  CAB’s operations relied on outdated methods which hindered management.   Adding new software was their solution to the changes caused by rapid growth.  The software provided the functionality required but failed to connect with existing software.  So, the organization relied on dated reports which were unable to give them point in time information necessary for efficient, effective business operations.