Analysis
Planet Skin's successful implementation of the technology shows the potential for a small business to use technology successfully, even in an industry that has traditionally been viewed as "low technology". Indeed, the implementation of Hair Ware 2000 at Planet Skin has not only grown that business, but in an unexpected way, has resulted in the spin-off of another business. Having been involved in the implementation of the system in Sue's business, and being impressed with the possibilities of the product, Ian bought the franchise for selling and supporting the software in New Zealand from its Australian creators.
The success of Planet Skin's use of technology has not been an accident. It is the result of a carefully planned strategy for the business. Prior to purchasing the system, Sue had a clear strategic vision for what she wanted to do with both the business and the technology. She also had a clear understanding of the nature of her business and the state of the industry in New Zealand. The technology has been a tool in assisting her to achieve this. Rather than buying a system and implementing the capabilities just because they are there, Sue has selectively prioritised the implementation of the various modules according to her plan. Her plan was derived, and priorities established, from a value chain analysis of the business and the industry. From this, Sue had identified the key points of vulnerability that she faced.
Sue's value chain analysis was technology-independent. Indeed, it was essentially the same one she used when entering the business twelve years previously. This analysis had driven her initial emphasis on marketing and the first purchase of a PC for compiling brochures, as she was keenly aware that without customers and customer loyalty, there would have been no business. She was also aware that to grow the business, she had to address both transaction volume growth and the growing staff loyalty problem. Ian says that not all of the clients that he sells the system to have this clarity of vision for their businesses. Many just want something to handle appointments and cash. Whilst these clients get some benefits from these applications, there is often untapped potential simply because the owners are focused internally and see "their business" as hairdressing, beauty therapy or nail treatments, rather than as a commercial venture.
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