Case Study: Direct Enterprises, Inc. (DEI);
Using Technology to Facilitate Business Growth
Case Study: Direct Enterprises, Inc. (DEI), Using Technology to
Facilitate Business Growth, Expand Technology Infrastructure, Automate
Business Processes
"We look at technology as an investment, not an expense. Crossroads continually helps us invest in new solutions that automate our business today while enabling our ongoing growth."
Dennis Tauchen
Owner and Chief Operating Officer
Direct Enterprises, Inc.
Direct Enterprises, Inc. (DEI), a company that provides sales, marketing and product distribution to more than 300 customers in the seed industry, has enjoyed steady growth since its inception in 1996.
In 2002, DEI realized that it needed to expand its technology infrastructure to accommodate its unlimited growth potential.
Problems / Risks: Upgrading From Paper to
Prepare for Future Growth
At this point the company utilized a series of paper-based, phone and fax communications to interact with customers, vendors and its field sales force.
In addition to the inefficiencies of these business processes,
the company was also vulnerable to considerable risk (both human and technical) because one employee was entirely responsible for entering, managing, distributing and storing all business data, and for routing all e-mail communications from a single computer.
DEI was faced with multiple challenges if it was going to prepare itself for large-scale future growth:
- Automate business processes such as order entry, inventory management and invoicing to speed up the sales cycle
- Support its field staff with remote access to critical business information such as real-time inventory levels and current pricing
- Protect data from outside technical threats such as viruses and internal threats such as human error and system failures
- Centralize all data storage and regularly back up valuable company information to create secure archives
- Reduce the administrative burden on the corporate office
- Increase the efficiency and effectiveness of all employees
- Improve communications with customers, vendors and employees
Without an in-house technical expert, DEI sought a reliable and trusted technology advisor to upgrade its current network and provide ongoing counsel as the company grows.
Solution: A Strong Technology Partnership Supports DEI Today and Prepares It for Tomorrow
After evaluating proposals from several IT firms, DEI selected Crossroads Business Solutions in 2002. DEI chose Crossroads because of its:
- Consultative approach
- Understanding of DEI’s business needs
- Clear explanations of recommended technology-based solutions
- Careful consideration of DEI’s budgetary requirements
To initiate the technology partnership, Crossroads helped select all technology and purchased and installed it. Crossroads also assessed DEI’s immediate network and communications needs and recommended the installation of a Microsoft Small Business Server to centralize files, back up data regularly, network the company’s independent workstations and serve as a platform for the company’s future Website.
Additionally, Crossroads helped DEI transition from dial-up Internet access to broadband to improve its ability to quickly communicate with vendors, customers and its remote sales team.
To support DEI’s field sales staff and provide access to the company network,
Crossroads recommended and
installed a Microsoft Terminal Server. This allows DEI employees to
access real-time company data, e-mail communications and corporate
applications, a key data security feature that ensures DEI retains data ownership should one of its employees lose a laptop or leave the company. The company now uses wireless Internet broadband and an automated data backup system.
During each phase of the technology upgrade, DEI experienced little to no downtime.
Partnership Results in Tangible Business Benefits, Revenue Opportunities and Cost-Savings
"Crossroads goes beyond delivering technology services. We trust them with critical company information and they play an integral part in the planning and implementation of our company’s future. We see Crossroads as a business partner in the truest sense."
Dennis Tauchen
Direct Enterprises, Inc.
While Crossroads was retained to improve DEI’s technology infrastructure,
the by-products of these IT upgrades and Crossroads’ counsel provided a
series of tangible bottom-line benefits:
- Reduced administrative costs
- Improved communications with customers, vendors and employees
- A formal disaster recovery plan
- And most importantly, the ability to do more with existing resources
To DEI, these benefits mean easier scalability and growth, and higher profitability.
DEI is now more resilient against internal and external threats because
vital company information is no longer entered, stored and managed on a single computer. Data is now securely maintained on a centralized and protected server.
DEI has digitized its paper-based communications and can now scale its operations to support a much larger staff without additional overhead. Now that each employee has his or her own workstation and e-mail address, the administrative staff no longer has to fax or hand-deliver e-mails, saving hours every day.
With employee-wide access to the corporate network, data entry costs have been reduced by half and employee phone requests into the corporate office have decreased by 80%. DEI employees are now communicating more efficiently with each other as well as with vendors, partners and customers.
As part of its ongoing relationship, Crossroads provides on-call technical support, onsite maintenance and monthly status reports. Plus, both companies meet on a regular basis to ensure that DEI’s technology strategy stays in line with its current business objectives.
The Bottom-Line Business Benefits
- The ability to grow revenue and serve more customers with current resources.
- 80% reduction in phone requests from sales reps to the admin team due to self-service capabilities
- 50% savings in data entry time
- 100% elimination of communication redundancies
- 15% improved communication with customers, vendors and field employees
- Minimized business risk via a formal data backup and recovery plan.
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