Service Operations Management

Case Study - SmartKey

Submitted to: Submitted by:

Prof. Shreekant Vijaykar Samarth Jain
16PGDM109
 SMARTKEY WORKING

Entities and their assumptions for Content Resolution Diagram(CRD)

B: Consolidation of suppliers will

help SmartKey to retain the D: Consolidation of the
business from GoodHealth2U i.e. existing supplier network
which is the largest client in its
portfolio

A: The goal is to make

business to be profitable

C: Concentrate on the other clients

D: Continue with the
and get larger volumes of business
existing network of
by adding more clients to the
suppliers
portfolio of businesses

Possible assumptions for causal relations:

D-D: SmartKey cannot do both at the same time, i.e. consolidating suppliers and
continuing with the existing supplier network at the same time
B-D: Consolidation of suppliers will help SmartKey to retain the business from
GoodHealth2U i.e. retain the largest client in its portfolio of businesses
C-D: Continuing with the existing network of suppliers will help SmartKey to cater
to large volumes of business from other clients
A-B: Retaining GoodHealth2U as a client promises large volume of business even in
future so as to be profitable i.e. it will generate more business from GoodHealth2U
A-C: Focussing on other clients (existing clients, adding new clients) will ensure high
volume of business so as to be profitable

Injections which make some of the assumptions void:

For assumption B-D: Consolidation of suppliers ensures that SmartKey will retain
business from GoodHealth2U, but the client has already found service providers who
can do the same data-entry job at lower costs without further outsourcing (unlike
SmartKey). So, there is a possibility that they can shift to those service providers.
This makes this assumption obsolete.
 For assumption A-B: Retaining GoodHealth2U as a client will generate more business
in future, but with improvements in the OCR technology, the volumes for manual
data-entry have come down, so further improvements in technology can further
reduce the volumes to such an extent that GoodHelath2U doesnt have enough
volume to outsource. They may be better-off doing it in-house. So, there is no
guarantee that SmartKey will continue to get the same amount of business from
GoodHealth2U

To manage the current conflict situation, SmartKey can adopt the

following measures:
Continue with the existing network of suppliers to focus on higher volumes from
other clients rather than sticking with GoodHealth2U
Acquire new clients and keep increasing volumes from existing clients at home
Reduce dependency on individual suppliers to avoid strikes or disruptions to their
business
Consider the future prospects of business from GoodHealth2U and consolidate its
suppliers if GoodHealth2U promises consistent business in future