INFORMATION TECHNOLOGY
By: Madeline Bayliss
While advanced technology had certainly improved capabilities, it had also made them frustratingly difficult to operate.
Miele, the world’s largest family-owned and operated appliance company, whose U.S. operations are based in Princeton, recently used these words to describe its ovens. The same could have been said for its information technology.
For a company committed to innovation and quality, the mission of superior engineering and unparalleled service presents a constant demand to be the best. "This company is cutting edge when it comes to our product vision. We have to support that product with the systems, tools and cost structure to deliver the services to our dealers and customers," stated Fran Miller, IT manager for Miele USA.
That doesn’t always mean cutting edge information technology, he explained. He would rather work with proven technologies. More importantly, he likes to keep it simple.
Again, like the product side. The new MasterChef oven collection was designed with a simple digital control system similar to user-friendly devices like an ATM machine. By observing consumers in test environments, Miele determined what frustrated them and what features made the ovens easy to use.
Mr. Miller has traveled a similar path but lives in Miele’s everyday work environment. He described the frustrations and successes of the ongoing initiative to provide more services to dealers. Started three years ago, the plan called for an Internet-based service that could give dealers real-time information when they needed it, as well as utilize the site for orders.
The design was based on user activity: types of calls for customer service, dealer service and accounts receivables. In essence, the frequently asked questions (FAQs) were converted into readily available information online instead of from the customer service staff.
"The goal was not to reduce any personnel in service areas, but give better and more services with the same staff," said Mr. Miller.
"My situation is different than many others today," he continued. "I’m coping with an annual growth rate of 15 to 20 percent. Dealers need resources and we’re trying to do that expeditiously and economically."
The project began simply enough, but soon ran into challenges. A survey of the dealers revealed that less than 50 percent of the dealers had the capabilities, equipment and Internet connections to take advantage of this service model. Adoption was slower than expected, but Miele stayed committed to the plan.
"Miele is a family business dedicated to the independent retailer. It was just something we have had to work through."
Today about 40 percent of the dealer base uses the Web site, but Mr. Miller is confident that will grow. The United States operations are still only one of two using a B2B strategy; Australia is the other.
"It’s a reflection of the U.S. marketplace," said Mr. Miller.
Miele also learned to approach technology differently than originally planned when it came time to implement an ERP system. A first attempt failed when the company tried to reflect different processes in modifications to a core system. The second time around, under Mr. Miller’s guidance, it took a different tactic.
"We realized that we should not modify the software we should modify the company to take advantage of the inherent processes and information in the system. We saved on a lot of unnecessary expenses and got it operational."
It was a lesson he continues to apply. "You can have the best systems and worst processes, or the opposite," he said. "If you don’t refine them both, you can misuse technology."
It also can be expensive. "There’s a cost of non-compliance when process is not systemized and potentially aided by technology," said Mr. Miller. "Items such as uncollected funds go right to the bottom line as a negative."
Moving to a graphical user interface (GUI) from the "green screens" was also an experience that demonstrated the relationship between technology and process. While GUIs are considered more intuitive and easy to use, employees were used to the older screen. Productivity actually went down the month the new system was put in place, but was back up to original levels and improving in the subsequent month.
Mr. Miller credited education. "We made training a major part of that change to help people become comfortable and skilled."
A recent initiative to review practices in his area was prompted by an IT audit conducted by an outside firm.
"Security is foremost on my mind," said Mr. Miller. He believes the greatest threat for companies is internal and wanted to get independent input on the state of systems and information as well as recommendations on how to detect intrusion from within the company.
It’s a balancing act at Miele. There are spot checks on the network but minimum direct observation of individual employees. "We don’t want to be Big Brother. We’re still a family-owned business and prefer to operate that way," he said.
Mr. Miller also is concerned about maintaining all company operations. A priority task is business continuity planning for both the physical systems and the virtual processes.
"You’re fooling yourself if don’t have a plan," he warned.
"This is not about IT it’s about the business, our customers, our dealers. We don’t operate in a static environment and need to shore ourselves up in changing conditions. Testing is done at least two times a year."
What are the next challenges for Mr. Miller and his team of eight?
"More focus on the business process. I am the 69th employee of Miele here in the United States and we now have 260 employees and growing. In that time, technology has been known as data processing, then EDP, then MIS and IT. With each change it has become more involved in the business.
"Just as with our products, if we first focus on the users and process, we’ll make better use of technology."

