FDI enterprises tend to trust and prefer to work with foreign service providers rather local firms in Vietnam. Therefore, the challenge for Systech Technology & Trading as well as other local companies is to build trust and improve their technical support capabilities. In order for the company to gain a competitive edge in the market, the management appointed Consulus to review and transform their business model and organisational structure, so as to enable the company to offer value-added services similar to global competitors instead of competing mainly on price with local competitors.
Reviewing the Business Model
In order to identify a relevant and sustainable business model, Consulus conducted an organisational, customer and supplier value study at the start of the exercise. This fact-based approach enabled management to gain a holistic view of the current state of the organisation, uncovering new areas of opportunity and shaped the development of the strategic roadmap.
With the roadmap in place, the organisation was reorganised: staff were aligned in terms of business direction using the company’s core values as guiding principles, while processes were redesigned to secure more business opportunities.
Insight into challenges
An initial study with internal and external stakeholders by Consulus provided key insights about the values, processes and beliefs within Systech Technology & Trading, as well as its current relationships with customers and partners. The findings highlighted a few things:
Although the top management realised the need to change, the biggest challenge was how to unify different approaches of founding members and gain support of the middle management while defining the strategic direction for the organisation. The lack of consistency in approach led to the situation where employees may or may not be aware of the changes implemented because they were unsure of the priorities of the company. In addition, the core values which were published did not reflect the beliefs which staff hold. Thus, even though the company had a positive work environment, there has been no breakthrough in terms of value-creation and effectiveness.
In the eyes of customers, Systech Technology & Trading was perceived as a provider with sufficient product knowledge yet is often short of technical knowledge and processes for scalability. The research showed that customers were looking for a partner who understands their needs and can scale with them through a strategic alliance network. Customers also desire that product & service suppliers can ensure the consistency of high product and service support quality.
However, the relationship between Systech Technology & Trading and its suppliers was at basic level and no strategic partnership has been established yet.
Overall, in the market, Systech Technology & Trading did not distinguished itself from the rest, thus it was stuck in the “price war zone” with other local competitors.
Organisational Purpose Identification
During the two-day Strategy Workshop for Systech Technology & Trading, Consulus worked closely with the founding members and the middle management to discuss and agree on the new Purpose Model with the following statement: “Elevate Vietnam to a world-class level through better solutions & systems for the manufacturing and support industry and better livelihood for our people.”
The Purpose Model served as a strategic compass for Systech Technology & Trading to go beyond being a contractor and move towards being an enabler, so as to elevate itself through providing better solutions and systems for the manufacturing and support industries.
Elevate Vietnam to a world-class level through better solutions & systems for the manufacturing and support industry and better livelihood for our people.
State of Ability
Provider of cost-effective and quality-assured solutions for production with a scalable sales network system.
State of Influence
Enhance production effectiveness with cross-industry knowledge.
State of Differentiation
Advocate of quality assurance standards
To build a sustainable and scalable business model, one of the top priorities was to restructure the organisation. Before embarking on the project with Consulus, the organisational structure was unclear, which affected the management and the company’s ability to maximise business opportunities and ensure the consistency of customer service standards.
The new structure developed by Consulus defined clearly the position and relationship between departments based on their functions. To help the company become a solution provider, a research and development (R&D) department was established. The new unit is in charge of developing new products and cost-effective and quality-assured technical solutions.
Nurturing leaders through a process
For the Purpose model to be effective, there must be a new generation of leaders who understand and are able to lead the company based on that model. Recognising the importance of this, Consulus worked closely with the management to conduct Leadership workshops known as Alchemy and developed Systech Technology & Trading Leadership Manifesto. This manifesto then served as a guide in terms of framework and evaluation to shape desired behaviours of leaders in Systech Trading, especially for staff at managerial positions.“The common issue with the middle management is that they only care about their own job scope without looking at the big picture and their relationship with their colleagues. The Leadership Workshop, Alchemy by Consulus has helped middle management understand what are the desired knowledge, working attitude and behaviours needed to become Systech’s leaders“, said Accounting Manager, Ms Phan Chau Hue.
Designing a unique B2B service experience for Systech Technology & Trading
To move up the global value chain and transform the relationship with customers, it is critical to change the service experience of Systech Technology & Trading, from being a product distributor towards a solution provider. Therefore, a Business-to-business(B2B) Service Experience Strategy was developed and implemented using the Consulus 4-FramesTM methodology.
Key staff of Systech Technology & Trading were selected and formed into a Special Project Team, in charge of overseeing the implementation of the organisational changes, report issues and propose solutions to the management.
Through a Service Experience Workshop session with staff from different customer touch points, the new service experience was explained and discussed through interactive exercises and sharing sessions in order to develop customer services tools and processes based on Systech Technology & Trading’s unique way.