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# AS-IS

# Study on Theorema Spa

Federica Buccolini,
Federico Buoncompagni,
Gaetano Epiro,
Fabio Stabile

# Identification

The name of the company is Theorema SPA.
The showroom is based in Corso Rosselli 181, where Citroen, Opel and DS auto are sold.
Theorema has an important used car market too.

# Financial and legal information

**Fisical ID**: 08308870016
**NACE code**: G45
**Turn Over year 2018**: 17 MLN

This **NACE** code stands for
**G45** - Wholesale and retail trade and repair of motor vehicles and motorcycles

# Organizational variables

## Size
25 employees

## Products, services

The services offered by Theorema SPA are many.
It is mainly based on the sale and rental of cars, it also offers the possibility of receiving financing, thanks to its partners. Furthermore, following the sale, assistance is provided regarding any problems. Part of the Theorema SpA company deals with repairs and replacements as a dealer.

## Goal, goal type, mission, vision, strategy

The only goal is to achieve full customer satisfaction.
Earnings are closely related to this aspect, also due to a percentage offered by car manufacturers.

CSF 1: increase customer satisfaction
CSF 2: reduce the cost of the process for Theorema

## Culture
This is a retail company. The most important thing is customer satisfaction.
The motto of the Theorema is:

> "There is only one boss: the client. And he can fire everyone in the company. From the employee to the Chief Executive, simply by taking his money somewhere else." -Sam Walton

## Structure

Organizational Chart
<img src="https://i.imgur.com/dcKo6Xp.jpg" width="600" >

- CEO: Catello Esposito. Decide which strategies to implement and make the most important decisions.
- The Brand Manager deals with the management of the offices and the implementation of the strategies chosen by the CEO.
- Back Office: internal management of the company: employees, economic and organizational aspects.
- Front Office: in close contact with the customer before, during and after the sale.
- Warehouse: car management, maintenance and parking.

The structure of the company is functional. The headquarters is located in Corso Rosselli 181 in which we find the sales office, service desk and warehouse.
Theorema has an IT office in Borgaro Torinese.

### IT/IS group / office

IT office's team is made up of 5 computer engineers located in Borgaro Torinese.

## Formalization & Specialization
### Formalization
Formalization is necessary for consistency and control. Theorema is a centralized organization where decisions are taken by the CEO.
The degree of formalization is quite high as the procedure for sales is standard:
after an order has been issued, the car arrives from the car manufacturer and are sold to the clients. After the sale there is a post-sale survey.
There is no room for flexibility but this is not a problem because even the "custom orders" are formalized and can be executed flawlessly.
### Specialization
The departments in Theorema are fixed and each has its own activities.
But there are no real "specialist" inside a department, for example, in sales they all deal with the same set of processes.
There are, though, some small subsets of employees that have more specialized tasks inside their department, for example, the ones in the back office responsable for the update of the main database.
Having said that, Theorema does not rely on work specialization too much.

## Organizational type

This is a mechanical system design. The structure is vertical with fixed roles. The goals are achieved thanks to a competitive strategy.

# Business Model Canvas

The Business Model Canvas describes an organization and assists firms in aligning their activities by illustrating potential trade-offs.
It is a visual chart that analyze many aspects of the company, such as:
- **Key Partners**
Nobis-Assicurazioni, is an insurance firm that covers the needs of the client regarding car insurance.
Thanks to Findomestic, Theorema SpA offers to the customer loans related services.
Certo, the car workshop, covers the repairs and maintenance of the cars.
MotorK, is the designer and developer of the custom-made website of Theorema.
Both Nobis-Assicurazioni are part of the Intergea Group, the same is true for Theorema.
Cars sold by Theorema are Citroen, DS and Opel.

- **Key Activities**
The buying and selling of cars.
Logistics behind the stocking of cars.
Delivery to the client.
- **Key Resources**
There are 25 employees working in an horizontally structured company.
Inventory of more than 500 cars located near the car dealer.
Efficient and functional structures for car maintenance and care are needed in this kind of industry, Theorema covers this needs with Certo and it's spacious parking lot.

- **Value Propositions**
Primary attention is aimed at the customer. The manufacturers only offers a percentage of the gain based on customer satisfaction. This aspect is checked in depth by previous and subsequent sales surveys.

- **Customer Relationships**
Offers great after-sales assistance.
Costly but necessary as pointed out in the Value Proposition.
Assistance is reachable using their website and phone number.

- **Channels**
Present in various communication media, such as web, press and billboards near the dealer.
Communication channels used to keep in touch with the customer as much as possible and to capture his attention, guaranteeing an excellent service.

- **Customer Segment**
Theorema offers many types of services, suitable for all types of customers.

- **Cost Structure**
Mostly variable, due to maintenance of structures and cars.

- **Revenue Streams**
From every type of service: car sales and rentals.

# IS Views

## Functional view, data

<img src="https://i.imgur.com/vOcRfMU.jpg" width="1000" >

## Functional view, processes

| Process name | Description (text) | Input | Output |
| --- | --- | --- | --- |
| Reception of car | Due to the limited number of parking spaces it is not always possible to park all the cars that arrive from the car maker. If a car is delivered and parked, the delivery note must be collected by the valet and given to the office. Then the database is updated and the car is registered. Many cars arrive every day, and it takes time before the delivery note is delivered to the office (even some days) where each car is recorded. This is the key problem, the goal is to avoid a long wait and to make sure that the delivery note arrives immediately in the office and the database updated. | Order Request: check order, ask for the car, wait for the car. When it arrives there must be a free park. Most important aspect number of cars. | Car in the parking and recorded in the data base. Most important aspect number of cars recorded. |
| Park the car | When new cars arrive, they are placed inside a parking lot owned by Theorema SPA of about 500 parking spaces.The large amount of cars present without a more precise subdivision by model or characteristics does not allow an easy localization of each car. It is not possible to assign a specific parking area for each model because the number of cars is variable. | Cars | Position of the car in the parking. Each car must be easily found. |
|Car delivery | If the car requested by the customer is already available in the parking area, the car is retrieved and taken to the workshop where all eventual defects are fixed and the car is ready within a few days | Car requested by the customer | Car ready for delivery|
|Assistance and after-sale survey | A front-office employee would take care about the sale. A few days after the car is delivered, the factory sends a survey to the customer via email, whereas the front-office employee calls him to collect informations about the selling experience | Survey | Informations about the sale experience.|
|Annual inventory| At the end of every year a check of all company assets is done to verify the consistance between the physical goods and the goods registered inside the database. | Goods bought during the year | Goods still in the wharehouse |
|Purchasing of used cars| An employee is assigned to buy cars owned by private users. If the car is in good conditions and most importantly has travelled less than 80k kilometers, is parked purchased and sold as certified pre-owned. Instead if the car has travelled more than the threshold, is sold on a private auction between other car retailers.| Used car | Car for sale, new record in the database |

### BPMN

#### Process Reception of car


#### Process Park the car

To find a park for the new arrived car is a sub-process of the "Delivery Note" process.
As soon as the new car arrives the "piazzalista" searches for the new park and after finding it the car can be accepted and parked.
If there is no park the car is sent to the car manufacturer.
A Business Rule is that a car could not be accepted if there is no an available park in the parking area.

## IT view

### Application portfolio

The website is entrusted to MotorK, which is a Theorema partner.
The application software which handles the databese is Concerto, made by Global and heavly customized since its creation, around 20 years ago.
Later on Global was purchased by Zucchetti, which also owns DataCar DMS so there could be changes in the future.
Database is a key point managed by car manufacturer.

| Application name | Vendor (or internal if made internally) | Main functions |
| --- | --- | --- |
| Concerto | Global | DBMS |
| Web site | MotorK | Web site |

### Technological view
<img src="https://i.imgur.com/16qGLLF.jpg" width="600" >

The "Brain" of the company, the current DBMS, is Concerto. Concerto is developed by Global, it is web-based and it’s the most advanced auotomotive DBMS for the italian market.The DBMS was also custom configured for Theorema. Concerto was recently bought by the Zucchetti Group

### Outsourcing
Various resource must be outsourced in a company as Theorema.
For example, its website was developed and it's currently managed by MotorK.
MotorK is a company that offers web-related products and services in the automotive sector.
We can classify this outsourcing decision in an axis considering Location, Service and Unicity.

**Location**
MotorK offers cloud-based services.
Considering this, the outsource is Off-site. The web server is not inside Theorema.
**Service**
The service MotorK offers to Therema is basically a PaaS (Platform as a service). MotorK offers a web server to Theorema and also provide the software (the website itself) and takes care of it.
**Unicity**
MotorK has different packets for every costumer but essentially provide the same service to everyone. Therefore it's Shared.

# IT strategy

Theorema is part of a bigger company, Intergea Group. It has its own IT group which is in contact only with the CEO. IT Strategy is an iterative process to align IT capability with business requirements, so the Theorema and its IT follow the directives given from Intergea Group. IT strategy should be aligned with corporate and business strategies. In Theorema there are different locations and not the best communication between IT group and headquarter. This aspect should be improved to be more competitive with respect to other companies.

# Indicators

## CSF

| CSF ID | Type (domain, distinguishing, environment, contingency) | Textual description, link to strategy | Related Metric(s) | Current value (if available) |
| --- | --- | --- | --- | --- |
| CSF1 | business domain | Increase customer satisfaction | | |
| CSF2 | business domain | Reduce the cost of the process for Theorema | | |
| CSF3 | | Reduce lost time | | |

## KPI

| KPI name | KPI type (general, service..) | description | Unit of measure | CSF covered (if any) | Current value (if available) |
| --- | --- | --- | --- | --- | --- |
| N_E | General | Number of employees | | | |
| N_C | General | Number of cars per year | | | |
|UC_DN| |Unit cost management of new car arrived| Euro| CSF2||
|UC_P| |Unit cost parking a car| Euro| CSF2||
| EF_P | Efficency | Effort of "piazzalista" to find the first available spot and park the car | Person time | CSF2 | |
| EF_D | Efficency | Effort of "piazzalista" to deliver the delivery note to the back office | Person time | CSF3 | |
| EF_B | Efficency | Effort of back office employee to register each car described into the delivery note into the database | Person time | CSF2 | |
| LT_T | Service | Lead time to deliver delivery note from the parking area to back office | Time | CSF2 | Days |
| EF_C | Efficency | Effort of "piazzalista" to find where the requested car is parked | Person time | CSF2 | |
| LT_C | Service | Time from when the car is ordered to when the customer is contacted: time to make and deliver the car (does not depend by Theorema) + time to park and register the car | Time | CSF1, CSF3 | |
| N_P | Quality | Problems due to lost delivery note, registration errors due to human distraction | % | CSF1, CSF2 | |

# Summary analysis
Given the BPMNs of the two analyzed processes is easy to grasp the critical points of their current implementations.

Regarding the Delivery Note, in a worst case scenario, we have a significant waste of time due to the loss of the note. Sometimes the note is left in the parking lot and it's only taken to the back office after days. All this delays translate to a longer wait for the client and in general a less positive after-sale survey.

The other critical point concerns the way the parking process is handled: whenever a new car arrives the employee has to search for an available spot in the parking area; viceversa when a specific car is requested, he has to search for it only having a rough idea on where it actually is. These two aspects actually lead to a lot of time loss and more effort so the IT area could find a way to easly park and retrieve a car from the parking area.

As previously stated, the IT department is shared between the Intergea group, this leads to a strict alignment with Intergea strategies and goals but this centraliziation is less flexible towards the needs of every company in the Intergea group (such as Theorema).

In the TO-BE we will tackle this issues taking in account what we learned analyzing the company.