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Visionary Design Systems

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Analysis of Visionary Design Systems

An analysis of the PDM problem at Visionary Design Systems reveals multiple challenges that all ultimately result in the failure of the company to significantly grow its PDM segment of business.
The founding fathers of the company recognized that PDM was a critical market for their company and the long term goal of their company was in systems integration, so that their customers would properly implement CAD hardware and software systems. The Missions, Goals and Tactics were not developed until the company had been in business for three years. Though the founders communicated with the employees, their Mission, goals and tactics didn’t support their long term objective. Both their compensation system and their ratio of sales representatives to applications engineers and service specialists reflect the fact that the founders desired business growth more than support and integration, even though the greater profit margins were in consulting and training. Because of the complexity of PDM, two product specialists were hired, but they were unable to increase revenue because PDM required customer support that VDS was unable to provide because neither the sales force,nor the application engineers understood PDM well enough to support it.
In order to increase its PDM segment of business, VDS must reestablish a business plan that reflects its long term objectives. The leaders of the company must obtain operating capital to allow for the training of its sales force and applications engineers, in PDM. The specialists should train the personnel to be extensions of them. The implementation of this tactic would increase revenue capabilities in VDS highest profit margin segment of business, and would prepare the company for future growth. It would also provide the company with an enhanced reputation of properly servicing what it

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