Fragile businessTHE RELATIONSHIP BETWEEN STERLING, TECH DATA, AND ORACLE

Overview

The situation that I am going to investigate and search for insufficiencies is in a new account that could potentially be my focus account for Tech Data. This account has brought over business to Tech Data that has never been handled through Tech Data. This business is that of Oracle renewals. Oracle is a hardware/software manufacture dealing in data bases and storage

This is a situation where Tech Data has recently acquired the Oracle business from a large reseller Sterling. Sterling has stated we are not meeting the needed response time for quotes/ invoicing. They have stated if this isn’t fixed we will lose the 15 million dollar business to another distributor.

Introduction If this situation can be made right, we have the opportunity to continue

receiving this business as well as grow this business with Sterling. Turning 15 million from last year into a possible 16+ this year with Tech Data. The below shows the projected revenue we are tracking for in green, where the red shows where we could take this business, if we can have the same success we have had with their other vendors.

Category 1 Category 20%

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100%

Chart Title

Series 1 Series 2 Series 3

Current Situation

We are in a fragile situation between Sterling and Tech Data. The internal Oracle Team has assured us they will be able to support and sustain this business, mean while thus far this is the farthest from the truth.

Sterling has been stating the areas we are lacking’

Oracle has no response for fixing this issue in the short term

Key Factors To Success

Response time

Helping to grow their business

Keeping the promises that were made during the transition process

Improving the previous methods they were used to with the previous distribution center

Adding more support to this business

Minimizing mistakes to earn their trust in this business

Analysis of Alternatives

Taking the business back to the previous distribution center

Moving these deals to Oracle directly rather than through a distributor

Sticking with Tech Data and keeping patient while we figure this out

Strategic Option

Learning the renewal business and begin taking it on with the dedicated sales champion

This will allow a competent person who is similar with Sterling to help the business while Oracle hires and trains additional help

Increasing the proactive quotes from 90 days to 150 days thus adding more value to Tech Data then the previous distributor

“First, do not lay off people. Remember that customer (client, guest) service begins with excellent support staff Income is linear with support staff, so decreasing staff poses a danger” (Rieger, M. H. (2009). 12 key elements of a successful business plan)

Benefits

Tech Data keeps the 15 million dollar a year Oracle business Sterling has to offer

The inside sales team is overachieve since this is new business, thus rewarding us for figuring out this dilemma

Earning recognition from the higher ups in Tech Data for solving this problem

Potentially better job offers could come with this experience

Risks

Losing Sterling’s Oracle business

Losing Sterling’s trust for their other business since we failed after promising this is something we could support

Having to explain in numerous meetings with the higher ups what went wrong

Coming up short on future goals that would stem for the short term business we recieved

Audience Analyses

Sterling- is a very large reseller who deals in mostly federal/ government deals as end users.

Tech Data as a Company- is a large IT distribution center who has numerous resellers.

Tech Data Sales Team- The internal sales team who is both responsible for and paid off of this relationship.

Oracle as a Company- is a software/hardware vendor who specializes in data bases and storage

Oracle Internal Team- This team is goaled off all Oracle business coming through Tech Data and what business is lost

Stakeholders

Our audience in this situation includes Sterling, Tech Data, Tech Data Sales Team, Oracle, Oracle Internal Team and the end user.

We need to find a mix of what needs to be done both on giving and receiving to make this business work for all parties involved.

Sterling’s business has thrived in other vendors since coming over to our Team, and we are hopefully we can not only sustain but grow this new Oracle business as well.

Final Recommendation/Call to Action

My final recommendation is to dedicate myself to the Oracle business for the near future while Oracle hires and trains new employees to support this business

While doing this I will help maintain Sterling’s trust while having the control to implement the extended proactive quote system from 90 days to 150 days

And remember “Intuition is considered an important tool in business when it comes to ensuring that business remains competitive” (Bernabei, P. (2006). Business intuition)

References

Bernabei, P. (2006). Business intuition. Neuropsychoeconomics Conference Proceedings, 1(1), 28.

Rieger, M. H. (2009). 12 key elements of a successful business plan. DVM: The Newsmagazine Of Veterinary Medicine, 40(1), 48-51.