systems thinking - application to a live business problem
DESCRIPTION
We used the systems thinking approach and applied it to a live-business problem, and were surprised with the simulated results. Problem solution can be extended to any problem with known constraints - and hence quite generic in approach!TRANSCRIPT
RR mess is a real life entity. The problem has been identified by us and is in no way a reflection of RR caterer’s views on the issue.
This is strictly an academic exercise.
General :Multiple contractors in IIT CampusCompetition between caterersStudents can complete the
registration through a portal. Administration allots mess membership to a student, if the same is not voluntary.
Problem
How do we increase the
popularity of RR mess ?
Figure 1: RRC Notice Board
Desired State
Figure 2: RRC at peak hour Figure 3: Competitor mess at peak hour*
* Source: Group 1, Class of 2010, STA MS506
Problem Description
IIT Madras
Students
1 semester
~ 3 years
Administration
Food
Competitors(The entire fish bone diagram
will get repeated)
Mess Administrati
on
Infrastructure
Contracts
Resource Allocation
Feedback
Registration
MotivationInventory Control
Physical location
VentilationIT infrastructure
Quality
Quantity
Variety
Seeking ChangePeer
pressure
Mess Popularity
Aesthetics
StudentsExtra Charges
Influence
Problem Structure
CCW
Infrastructure
Food
Students
Competitors
RRC Mess
contracts
caters
generate revenue/popularity
assets
services
provides
competition to
equips
registration
mess allocation
Attributes affect
To help RR Mess realize the various aspects leading to their average performance, and provide inputs to increase their student enrolment.
To transform and sustain RR mess’ position as one of the most valuable caterers in IIT Madras through excellent performance, creating growing value for its stakeholders.
Maximize student enrollmentMaximize revenue Maximize student satisfactionMinimize poor review
Increase student satisfaction index among the student fraternity.
Identify a strategic activity mix for the mess for the next three years to help them achieve higher levels of utilization of physical and human resources, and increase the value addition per employee significantly.
Problem Simulation
Mess Enrolment
Food Quality, Quantity, Variety
Feedback/Ranking
Peer pressure
Influence due to Competitor’s performance
Efficacy of Infrastructure
+ +-
- +
+
--
-
+
+
S.No
Variables(Xi)
Name Explanation Xi(t=0)
1 X1 Mess Enrolment Number of students enrolling for RR Mess
0.2
2 X2 Food Quality, Quantity, Variety
Quality, Quantity and Variety of food served in the mess
0.3
4 X4 Peer pressure The group dynamics among student groups on the choice of mess
0.8
3 X3 Influence due to competitor’s performance
Effect of competitor’s performance on student enrolment
0.9
5 X5 Ranking Feedback/Rankings released on mess performance
0.3
6 X6 Efficacy of Infrastructure
The infrastructure includes building, registration portal etc
0.2
Students enrolment to mess
Food quality Peer pressure
Influence due to competition
Efficacy of infrastructure
Ranking
Students enrolment to mess
0 0.8 -0.5 -0.9 0.2 0.3
Food quality 0.2 0 0.2 -0.3 0 -0.1
Peer pressure
0 -0.2 0 0.7 0.3 -0.2
Influence due to competition
-0.4 -0.5 0.6 0 0 -0.1
Efficacy of infrastructure
0 0 0 0 0 0
Ranking 0.7 0.6 -0.5 -0.5 0.2 0.1
Initial value
s
Students enrolment
Food quality
Peer pressure
Influence due to competition
Efficacy of infrastructure
RankingMarketing
Quality policies
0.2 Students enrolment
0 0.8 -0.5 -0.9 0.2 0.3 0.7 0.3
0.3 Food quality 0.2 0 0.2 -0.3 0 -0.1 0 0.7
0.8 Peer pressure 0 -0.2 0 0.7 0.3 -0.2 -0.6 -0.2
0.9 Influence due to competition
-0.4 -0.5 0.6 0 0 -0.1 -0.7 -0.2
0.2 Efficacy of infrastructure
0 0 0 0 0 0 0 0
0.3 Ranking 0.7 0.6 -0.5 -0.5 0.2 0.1 0.5 0.2
Repositioning- RR mess is second preference for south Indian & north Indian students both because food taste & preparation is neither very south Indian food nor north Indian. So it should reposition itself by addressing food taste & quality needs of one or both of communities.
Attracting niche segments from North students-Providing value added stuff/niche foods. Eg- Bengali food , Punjabi food as extra or regular items
Student relationship management- Regular feedbacks & change implementation to retain enrolled students.
Differentiate (extra food offerings)- Quick & hot/fresh serving of add-on extra food items, Chettinad dishes, fish, juice etc
Differentiate service by leveraging core strengths- 1) Central Location in hostel area 2) Better infrastructure and ambience 3) Better service & catering non –unionized staff
1. Faster turnaround time during peak hours especially lunch
2. Friendly professional staff- Service with a smile
3. Better ambience & furnishing, Better dining experience
Providing Trial-offer to invite students to eat in RR mess & have a first hand feel of “new changed RR mess”
Providing evening snacks as promotional offer which other south Indian messes dont provide
Attracting group enrolments by offering free/bonus plate of add-on extra food items to student groups.
Mess helpline for flexible meal timings
Arranging for music/cricket telecast
Frequent menu changes to attract variety seeking students, circulation of new weekly menu through e-mails/hostel & mess notice boards
Organizing food festivals & announcing it one month in advance
Publicizing students’ testimonials & references about RR mess, Change of student perception through communication campaigns
Institute a Quality Control programme which would include regular and stringent checks on Food quality Hygiene Service
Mess secretaries of all hostels to be included as advisors to this programme
This exercise, concerning the problem at RR caterers in IIT, convinces us that with effective marketing strategies and quality control, students’ enrollment in RRC mess can indeed improve and the problem of popularity of the mess can be solved, over a period of 18 months.
