Introduction to Dirt Bikes USA
Dirt Bikes USA is an independent Off-Road Motorcycle manufacturer based in
Carbondale, Colorado. Founded in 1991 by two engineers and motorcycle enthusiasts, Dirt Bikes
USA since its inception has sought to create the best possible motorcycles using innovative
design techniques and combining the top components from manufacturers all over the world.
Dirt Bikes USA has been producing high quality race and recreational off-road motorcycles for
over a decade, with thousands of satisfied customers and impressive trophy case from dirt bike
races from all over the United States as evidence to our continuing excellence. Dirt Bikes USA
strives to continue to grow as a company and to always offer products that will consistently
perform at the top levels of competition for years to come.
Company Goals and Culture
When the Dirt Bike’s founders realized that the most popular bikes on the market were
foreign ones. Their goal was to create bikes that preformed and looked better than their foreign
competition. Their culture comes from many different factors. They were both very young when
they started out with the company. They are still a privately owned company and maintain their
values of family, teamwork, exceptional quality, and attention to detail.
Services Provided
Dirt Bike’s offers four different models of bikes: the Enduro 250, the Enduro 550, the
Moto 300 and the Moto 450. They also sell parts and provide repair services for customers. Dirt
Bikes does not directly sell its products to their customers. It uses a network made up of 40
distributors, mainly located in the Midwest and Western United States. Also there is a small
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percentage sold in Europe using independent distributors that also sell other brands of dirt bikes
and motorcycles. They also heavily promote their business at racing events.
Hierarchy
Around 120 employees work for Dirt Bikes in design, engineering, and production. They
have 4 people in the parts department and 10 people on the service department to service
warrantees and help customers with problems. Five people work in the shipping and receiving
department. They also have a marketing manager and 5 sales representatives. The corporate
administrative staff has a total of 10 employees. The company’s organizational structure is quite
flat. All they have is a CEO and a COO with three managers under them. After that are just all of
the workers.
Department
Total Employees
Parts Department
Service Department
Shipping/receiving
Marketing/Sales
Administration
Corporate
Basic Employees
Number of Employees
120
4
10
5
6
10
5
80
Technology
The kinds of information technologies that would be the most important for Dirt Bikes
would be something to track their sales and prices. They should also have something to track
exactly how many of each bike they sell so they will be able to tell which ones are the best
selling and which ones need to be improved upon. They will also need something to keep track
of their employees and how much they make so they will be able to accurately do payroll.
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Financial Statements
For the period from 1999 to 2002, sales at Dirt Bikes USA have grown steadily; an
increase of 1.2 million dollars from 1999 to 2000, 1.7 million dollars from 2000 to 2001, and 6
hundred thousand dollars from 2001 to 2002. However, from 2002 to 2003, Dirt Bikes USA
suffered a drop in sales of 5 hundred thousand dollars. The best selling product from that time
period was the Enduro 550. And although it was the worst selling product overall, the Moto 450
was the only product that did not drop in sales in 2003.
Over the five year period, the ratio between Domestic and International Sales has hovered
between 8 and 10 percent. Domestic and International sales both increased from 1999 to 2000,
and 2000 to 2001. Both decreased from 2002 to 2003. However, from 2001 to 2002, Domestic
sales increased, while International sales decreased.
Sales increased from 2001 to 2002 by 3.5 million dollars, but decreased from 2002 to
2003 by 4 million dollars. In 2001 and 2002, the cost of goods sold were 66 percent of the
revenue, while in 2003 the goods were 75 percent of the revenue. The operating expenses for the
company have increased every year. The firm is in debt 30 million dollars, almost half of its total
assets.
TOTAL
1999
1201
2832
1755
463
6251
Sales by Model
2000
2001
1663
2291
3290
3759
1932
2454
598
661
7483
9165
Domestic
International
TOTAL
% International
1999
5723
528
6251
8.4%
Domestic vs. International Sales
2000
2001
2002
6843
8254
8889
640
911
889
7483
9165
9778
8.6%
9.9%
9.1%
Model
Enduro 250
Enduro 550
Moto 300
Moto 450
2002
2312
4078
2615
773
9778
2003
2195
3647
2627
823
9292
2003
8530
762
9292
8.2%
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Consolidated Statements of
Income
2003
2002
Revenue
Net sales
Cost of goods sold
Gross profit/(loss)
Gross margin
Operating expenses
Sales and marketing
Engineering and product development
General and administrative
Total operating expenses
Operating income/loss
Other income/expense
Interest income/expense
Other income/(expense)
Income before provision for income taxes
Income taxes
Net income/(loss)
Net margin
2001
60,144
45,835
14,309
64,063
43,155
20,908
61,529
41,072
20,457
4,733
3,141
1,913
9,787
4,522
4,537
2,992
1,601
9,130
11,778
3,944
2,339
1,392
7,675
12,782
1,747
(6,254)
15
1,459
(1,444)
175
(2,914)
9,039
1,729
7,310
80
(3,080)
9,782
535
9,247
Summary Balance Sheet Data
At December 31
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Total current assets
2,003
2,002
2,001
6,994
13,083
6,315
26,392
7,197
12,981
5,931
26,109
6,891
12,872
5,843
25,606
Property plant, and equipment
Other assets
Total assets
36,920
1,765
65,077
34,515
1,903
62,527
32,002
1,834
59,442
Current liabilities
Accounts payable
Accrued expenses and other liabilities
Total current liabilities
8,943
10,877
19,820
8,694
9,382
18,076
7,592
8,654
16,246
Long-term debt
Total liabilities
9,772
29,592
9,338
27,414
8,890
25,136
Shareholders' equity
Total liabilities + shareholders' equity
35485
65,077
35113
62,527
34306
59,442
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Expansion into International Markets
There are several countries that can be expanded into. The larger ones include England,
France, Spain, Italy, Germany, Portugal, Austria, China, Japan, and Brazil. Other potential
locations are Taiwan as well as some of the smaller countries in Europe and South America.
Enduro Racing is very popular in Europe, and similar sports are gaining popularity in Asia and
South American also. These dirt bikes could also serve as a mode of general transportation in
countries with less developed roadways, instead of use exclusively for entertainment. Sponsoring
a racing team or individuals is an option to expanding the bikes into other markets.
International Website
The website would have the same general design, but the primary language would vary
by location; this would be done by having users choose their language when first entering the
site. The site would offer videos of all of the bikes in use, pictures and computer generated 3D
models of the bikes, along with their individual specifications. Accomplishments of any racing
team and profiles for the individuals would be included within the site. A public message board
would be included for any visitors that wished to converse with other users of the bikes on a
global scale.
Value of the bikes
Producing dirt bikes as a whole product to distribute are the activities at Dirt Bikes USA
that make the most value. One example of how Dirt Bikes USA provides value to its customers
would be the manufacturing of the four contemporary models of Dirt Bikes with kick and
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electric starters, steering stabilizers, and liquid coolers. Another example of Dirt Bikes USA
providing value to its customers would be the designing of various styles that are suitable for
different types of terrains.
Competitor Comparison
Kawasaki, Suzuki, Yamaha, Honda and KTM are other companies that are major
competitors of Dirt Bikes USA. The competitor’s bikes are so much more expensive because you
are paying for the name brand also.
Min Price
Max Price
Dirt Bikes USA
$1,200.00
$2,200.00
Kawasaki
$4,900.00
$7,000.00
Suzuki
$3,100.00
$6,600.00
Yamaha
$2,500.00
$7,100.00
Honda
$3,150.00
$7,200.00
KTM
$6,500.00
$7,800.00
Competitive Sales
Sales, product advancement and advertising strategies are the competitive forces that can
affect the Dirt Bike USA industry. Trying to create the best product to sell at a reasonable price
in order to maximize the profits for the company is the competitive strategy that Dirt Bikes USA
should pursue.
Benefits of a Website
Dirt Bikes can benefit from e-commerce because it will be able to expand its business to
a broader group. Many people may not have heard of their company before and by creating an
online business it will be available to more people. Dirt Bikes should sell both motorcycles and
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parts over the web. If they offer were to only sell motorcycles then people who need just parts
would not be able to but anything from them over the web. By selling both they will get more
customers and therefore more sales. Dirt Bikes should use its site to advertise and for customer
service. This way people who cannot make it to a distributor right away can get more
information and be able to communicate with the company.
Cost of a Website
A web site would add value to Dirt Bikes because they will be able to make more of a
profit with the new customers that they will gain from having the site. At yahoo.com they have
an option to create an e-commerce site. For the first two months it will cost $25.97 plus a 1.5%
transaction fee. After that the cost of the site will vary depending on each month’s sales. It would
be a worthwhile investment for Dirk Bikes if they were expecting to make at least $5000.
Anything below that and the cost of the site is not really worth it.
Functions of a Website
Dirt Bikes home page should be a colorful site showing people racing on their bikes and
having a good time. Above these pictures should be a menu that will take you to the various
pages on the site. These options should include: Different styles of bikes they offer, parts that
they offer, contact information, distributor and store locations, their terms of use, and their
privacy policy. After you click on each option you should then be able to navigate around and
find the product or service that you are looking for. A good example of this is the Honda site.
http://powersports.honda.com/motorcycles/off-road/index.asp?bhcp=1
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Website Privacy Policy
It is important to collect certain data on our customers and potential customers to ensure
marketing efficiency and to increase targeted service to our customers. We need to collect
regional and demographic data on potential customers to develop targeted advertising to increase
sales. For existing customers, we need to collect personal and contact data to ensure a high
quality of service for our products. The use of cookies on the Dirt Bikes USA website will
provide advantages to both the company and the customer. The tracking information gathered by
the cookies will help develop a demographically sound marketing plan and provide a streamlined
web experience for the customer that is detailed to their preferences. Dirt Bikes USA would be
faced with some privacy issues; like that customers may be unaware of information collected by
the cookies, consent would be needed from the individuals if that information were to be shared,
and they are accountable for the protection of the information gathered by the cookie. Internet
organizations, like TRUSTe, exist to assure customers of a companies’ dedication to information
security; Dirt Bikes USA would join such a group. Since some customers won’t read the privacy
policy on the website, the symbol of the internet organization can be found on the website,
assuring the customers that their private information will be kept safe; this provides a clear
advantage over companies that don’t join an internet organization. Dirt Bikes USA’s site would
conform to the standards made by P3P, thus taking another step to remove the uncertainty of the
protection offered that some customers may have. Having an “opt-in” policy for personal
information will give the customers control over sharing their own information, just reducing
some of the liability of Dirt Bikes USA.
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Dirt Bikes U.S.A. Online Privacy Policy
Thank you for visiting the Privacy Policy page of Dirt Bikes U.S.A.'s ("DBUSA") website. DBUSA values your right of privacy, and wants
you to feel comfortable using its website. This page describes our privacy policy for the Website, and informs you of certain uses and
potential disclosures of your personally identifiable information.
1. Your Acceptance
By using and/or visiting the DBUSA Website, you signify your assent to both the content of this Privacy Policy and are incorporated
herein by reference. If you do not agree to any of these terms, you should not use the Website. Should DBUSA make any substantial
change to this Privacy Policy, we will publish an amendment, or we may email you if you have opted in for email notifications.
2. Dirt Bikes USA Website
This Privacy Policy applies solely to the DBUSA Website, which may contain links to third party websites that are not owned or
controlled by DBUSA. DBUSA has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any
third party website, which may collect both passive and personally identifiable information. In addition, DBUSA will not and cannot
censor or edit the content of any third party site. By using the Website, your expressly relieve DBUSA from any and all liability arising
from your use of any third party website. Accordingly, we encourage you to be aware when you leave the DBUSA Website, and to read
the terms and conditions and privacy policy of each other website that you visit.
3. What Type of Information Do We Collect and Use?
When you visit the DBUSA Website, we may collect passive information about your visit. Passive information is any form of aggregate
data, navigational data, tracking data, click-stream data, or historical data, which does not on its own personally identify you. Passive
Information includes information collected through cookies. When you register a product, apply for extended service through our
service program, send us an email, subscribe to one of our newsletters, or otherwise submit any data through and/or to the DBUSA
Website, we may also obtain and collect personally identifiable information. Personally identifiable information is information collected
online that personally identifies you, such as by name, email address, or mailing address. DBUSA provides you with the ability to "optout" of certain uses of such personally identifiable information.
4. Maintenance & Opt-Out of Information
If you wish to opt-out of our use and disclosure of your personally identifiable information, other than as expressly permitted in this
Privacy Policy, you will have the option to do so when you first submit your personally identifiable information via the DBUSA Website.
Simply state your desire to opt-out where indicated. If you wish to amend or delete any personally identifiable information that you
have previously provided without opt-out, please send us a message at privacy@dirtbikesusa.com. We will endeavor to provide a
simple way to review, correct, update or remove personally identifiable information you have given us. If you wish to stop receiving a
DBUSA newsletter or other circulation, please follow the "unsubscribe" instructions contained in each newsletter.
5. How Do We Use Personally Identifiable Information?
If you have not opted in for our general use of personally identifiable information, DBUSA will not use or disclose such information
except as follows:
-
to
to
to
to
to
to
to
communicate directly with you in connection with your specific requests;
validate credit card numbers;
permit our website designers to develop features and services that meet your needs;
tailor your experience on our Website, showing you individually tailored content;
comply with a lawful subpoena or court order;
remedy any violation or breach of an agreement between you and DBUSA; and
prevent harm to the property or rights of DBUSA or its customers.
If you have opted in of our use and disclosure of your personally identifiable information, DBUSA may also use such information for its
own marketing and survey purposes, and DBUSA may appoint third party agents in connection with such marketing and survey efforts,
subject to a confidentiality agreement concerning the information. DBUSA will not, however, disclose any personally identifiable
information for use in connection with a third party's marketing efforts.
6. Aggregate Information
DBUSA may share aggregate statistical information with business partners, sponsors or other third parties, but none of them receive
personally identifiable information. For example, we may tell an advertiser that X number of visitors visited a certain area on a website,
or that Y number of men and Z number of women applied for extended service, but we would not disclose anything that uniquely
identifies those individuals.
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7. Unsolicited Emails Received by You
DBUSA does not send unsolicited bulk emails to anyone who has requested that we do not contact them. We send newsletters only to
those who have taken affirmative steps to subscribe. If you have inadvertently received one of our newsletters, or if you simply wish to
stop receiving them, please follow the "Unsubscribe" instructions contained in each newsletter or send a request to be unsubscribed to
privacy@dirtbikesusa.com.
8. Cookies
Your browser software includes a feature called "cookies." We may use "cookies" to enhance your experience with our site. If enabled,
cookies may store small amounts of data on your computer about your visit to the DBUSA Website, including your page preferences.
Cookies tell us nothing about you personally, unless you specifically give us additional information. DBUSA does not merge or associate
our cookie information with any personally identifiable information obtained by us or from third parties. Cookies simply assist us in
tracking which of our features you like best and what content you may have viewed during past visits. When you re-visit the DBUSA
Website, cookies can enable us to customize our content according to your preferences. We may use cookies to: (i) keep count of your
return visits to the Website; (ii) accumulate anonymous, aggregate, statistical information on website usage; (iii) deliver content
specific to your interests or past viewing history; and (iv) save your password so you don't have to re-enter it each time you visit our
sites. You can also disable cookies. By modifying your browser preferences, you can accept or reject all cookies, or request a
notification when a cookie is set.
9. P3P (Platform for Privacy Preference) Conformance
Our cookies conform to the emerging P3P privacy standard, developed by the World Wide Web Consortium. P3P provides a simple,
automated way for users to control the use of personal information. Browsers like Microsoft Internet Explorer 6.0 conform to the P3P
standard. At its most basic level, P3P is a standardized set of multiple-choice questions, covering all the major aspects of a website's
privacy policy. Taken together, they present a clear snapshot of how a site handles personal information. P3P-enabled browsers can
"read" this snapshot automatically and compare it to the consumer's own set of privacy preferences. P3P places privacy policies where
users can find them, in a form users can understand, and, most importantly, enables users to act on what they see.
10. IP Addresses
An Internet Protocol ("IP") address is a number assigned to your computer whenever you access the Internet. An Internet Service
Provider ("ISP") typically assigns a random dynamic IP address at the time of your dial-up. For local area network ("LAN"), DSL, or
cable modem users, a static IP address may be permanently assigned to a particular computer. DBUSA may record the IP addresses of
visitors to its Website. While an IP address may reveal your ISP or geographic area, we cannot determine your identity solely based
upon your IP address. Other websites you visit have IP addresses, and we may collect the IP addresses of those websites and their
pages, but these IP addresses are never associated with Internet users.
11. Web Beacons
The Website may contain web beacons, which are electronic images (sometimes called "single-pixel gifs") that allow us to count page
views, or to access cookies. We may also include web beacons in HTML-formatted newsletters containing graphics that we may send to
opt-in subscribers, to count the number of newsletters that have been opened and read. Our web beacons do not collect, gather,
monitor, or share any personal information about our website visitors. They are used only to compile our anonymous, aggregate
statistics about website usage.
12. Computer Profiles
DBUSA may also collect and accumulate other anonymous data that helps us understand and analyze the Internet experience of our
visitors. For example, we may accumulate visitor data relating to referring domain names, the type of browsers used, operating system
software, screen resolutions, color capabilities, browser plug-ins, language settings, cookie preferences, search engine keywords and
JavaScript enablement. None of this information is personally identifiable and we only share this information in the aggregate, reflecting
overall website or Internet usage trends, as outlined in this Privacy Policy.
13. Chat Rooms and Forums
The DBUSA Website may in the future include chat rooms, forums, message boards, and/or news groups. If so, DBUSA as a passive
conduit will not be liable for any of the transmitted information. Any information that is disclosed in these areas becomes public
information. You should exercise caution before disclosing your personal information via these public venues, which you do at your own
risk. If you do so, you may receive unsolicited emails or "spam." DBUSA cannot safeguard the privacy of personally identifiable
information that is disclosed and can be viewed or accessed online in this manner.
14. Security
Some pages of the DBUSA Website use security measures to protect the loss, misuse and alteration of information that is transmitted
through the Website. These pages use Secure Socket Layer ("SSL") connections with 128-bit encryption for certain transactions and
confidential data. When you use a secure browser, all information you submit comes to us over the Internet in an encrypted form, with
a digital certificate issued by a third-party certification authority such as TrustE®. To view this certificate, click on the image of the
10
closed lock or the solid key on the bottom bar of your browser window. We also maintain our servers in locked facilities with secure
access. Unfortunately, no data transmission over the Internet or any wireless network can be guaranteed to be 100% secure. As a
result, while we strive to protect your personally identifiable information, we cannot ensure or warrant the security of any information
you transmit, and you do so at your own risk. Once we receive your transmission, we make our best effort to ensure its security on our
systems. You can report network abuse and any risk of security violations to us by emailing privacy@dirtbikesusa.com.
15. Children's Online Privacy Protection
The DBUSA Website complies with the Children's Online Privacy Protection Act of 1998 (COPPA). COPPA and its accompanying FTC
regulation protects the privacy of children using the Internet. DBUSA does not knowingly collect contact or personally identifiable
information from children under 13. The DBUSA Website is not intended to solicit information of any kind from children under 13, and is
designed to block our knowing acceptance of any such information, wherever age related information is requested. It is possible that by
fraud or deception we may receive information pertaining to children under 13. If we are notified of this, as soon as we verify the
information, we will immediately obtain parental consent or otherwise delete the information from our servers. If you want to notify us
of our receipt of information by children under 13, please do so by emailing us at privacy@dirtbikesusa.com.
Cost of Software Ownership
Word Processor
Spreadsheet
Database
Electronic Presentation
E-mail software
Publish Web pages
Price
MS Office 2007
Word
Excel
Access
PowerPoint
Outlook
FrontPage
$400
Sun StarOffice
Writer
Calc
Base
Impress
$70
Although Sun StarOffice has a lower cost, the products offered do not fill all of Dirt
Bikes USA’s requirements. The better choice, at a higher price, is Microsoft Office. Microsoft
Office also has the ability for the system to be upgraded later, whereas Sun StarOffice does not
have that capability.
Software Cost
Installation fee
Training fee
Cost Per User
Total Users
Subtotal
Annual Tech Support
Annual Downtime
Annual Cost
(Annual) Cost over 3 years
Grand Total
$400.00
$100.00
$25.00
$525.00
$8.00
$4,200.00
$1,260.00
$630.00
$1,890.00
$5,670.00
$9,870.00
11
12
13
14
Telecommunications Reducing Expenses
Since the Senior Managers of Dirt Bikes USA are concerned about the increase in travel
expenses, they believe that the use of telecommunications should be practiced more. Commercial
online services, e-mailing, and video-conferencing on interactive TVs are examples of modern
telecommunication applications that would be most useful to help Dirt Bikes cut down on travel
and communication costs. Exchanging data information on a product is a specific work activity
that could benefit from the telecommunication application of emailing. Teleconferencing
between conference locations of corporations during meetings is a specific work activity that
could benefit from the telecommunication application of videoconferencing on interactive TVs.
For video-conferencing, large-screen monitors to use for video-conferencing purposes cost
roughly $1000 or over, and the web-cams that would be used to capture the images would cost
roughly $900.
Internet Tools
The various Internet tools could help the employees at Dirt Bikes because they could start
communicating through e-mail rather than on the phone. This will save Dirt Bikes money
because all of their employees are equipped with internet service already, so e-mail will not have
any extra charges attached to it.
E-mail
Search engines
All Employees
Free communication
Marketing Personnel
Look up information on competitors for free
All of these departments could benefit from intranets because each department could be
broken down so everything can be more focused and have more direct information. The sales and
marketing department would greatly benefit from the creation of an intranet. The type of
15
information that could be provided by an intranet for that department would be information about
how their marketing campaigns are working out. It will also allow them to have accurate
information on how many bikes they are selling and what kinds are the most popular. By
receiving this information the people that are in that department will have more information
about what is working and what is not working. This will help them to develop new campaigns
that will be successful. It will also allow them to see what bikes are selling and which ones are
not as popular. This will allow them to decide if they should change anything on any of their
models or what bikes they should advertise more. All of this will allow the sales and marketing
department work to a higher capacity and make more accurate decisions.
Fuel Tank Suppliers
RidingGear.com sells a variety of fuel tanks. For a single fuel tank, ground shipping is
free; it can be shipped in two days for $48.99, or overnight for $86.99. There is a handling fee of
$15.99. For each additional fuel tank, the shipping fee; except ground which remains free,
increases slightly. Their average cost for fuel tanks is $380.00. Ground shipping, which takes 3-5
business days, has a total cost of $396; two day shipping is $445 total, and overnight shipping is
$483 total.
Orange County Choppers sell a few fuel tanks. The average cost for a fuel tank is
$600.00. All shipping, however, is free; from 2-7 day ground delivery from UPS, to overnight
UPS air delivery. There is also no handling fee. Therefore, the total cost is just that of the fuel
tank itself.
Although orange County Choppers offer a better deal when it comes to shipping, Dirt
Bikes should consider using RidingGear.com for their fuel tank needs. Riding Gear offers a
16
larger selection of fuel tanks at a significantly lower cost. Riding Gear also offers more methods
for shipping.
Supply Chain
Logility’s Voyager provides solutions for supply and demand planning, manufacturing
planning, and management of both warehouses and transportation. The demand planning
software will give Dirt Bikes the ability to increase their gross profit margins, reduce their
inventory costs while increasing the inventory turnover, and allow new products to reach the
market faster through more efficient planning. Supply planning will help reduce costs when it
comes to shipping products, reducing costs by effectively distributing resources, and identify
orders that can’t currently be met, so changes can be made to meet the orders. The supply
execution portion of the program will increase perfect orders, profitability, and inventory and
shipping accuracy to almost 100%. The efficiency of shipping can be drastically improved, while
the shipping cost is cut.
Cadre’s Supply Chain Execution Software brings together several aspects and does
everything with a single program. It allows the user to control just about everything at the same
time, in real-time; products in the warehouse, those being shipped, and everything that is located
for sale on the Internet.
Logility provides a better system that will suit Dirt Bike’s needs more completely as the
company continues to grow. The Logility system works with more then just supply chains, so
Dirt Bikes won’t need to purchase another system for other departments. Having a single system
will also allow the information to be shared between departments very easily since all of the file
types will be the same.
17
Knowledge Management
As we continue to rely on technology for efficiency, it is important to incorporate
technology that will protect and enhance our competitive advantage, primarily our unique
products and business procedures. Our most important knowledge assets are our engineering
designs, our customer relations management, and our sales/marketing processes. We can
document much of this knowledge, as the engineers can draft their designs, and our customer and
sales personnel can develop SOP documents. However, a good deal will remain tacit. Our
engineers will continue to develop new ideas, and many techniques for dealing with people,
techniques that will be employed by our customer service representatives and sales personnel
cannot be recorded in any traditional fashion, the “tricks of the trade” as they may be known as.
There also elements of knowledge outside the company that will not only enhance our
productivity, but are required to even be functional. Since Dirt Bikes USA uses outside engine
manufacturers, we must be knowledgeable about what engine products and advancements are
being developed at our engine suppliers. Also, as the dirt bike market continues to expand, our
marketing staff can use outside media to increase its knowledge of current trends. Any company
requires knowledge on economic trends; this could range from interest rates for borrowing
money for expansion, to ensuring adequate compensation and benefits for employees.
Knowledge management systems can provide benefits to all the functional areas of the
organization. Our engineers, design technicians, and product developers can use Knowledge
Work Systems to assist in turning their ideas into actual products. They may use computer aided
design to create a new motorcycle frame to work with a new motor from our engine supplier.
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Our marketing and sales teams can use Intelligent Techniques and Structured Knowledge
Systems to analyze patterns in their functional areas. Marketing can use internal and external
data to develop targeted advertising campaigns based on trends extracted from data analysis. Our
sales team can analyze annual sales figures to determine periods when extra incentives or
specific financing plans may be necessary.
Our managers, for both the functional areas and the executives would employ an
Enterprise Knowledge Management System. This system would contain as much information as
possible that can be documented and organized, from raw data to data studies. This will allow
our managers to make the most informed decisions possible. At our current personnel level, a
Knowledge Network is possible, but would be excessive as managers can personally interface
with the small number of employees for an opinion or other form or tacit knowledge.
By using the internet, Dirt Bikes USA can find large sources for knowledge acquisition.
By maintaining a visible internet presence, we can acquire information for marketing purposes
through our website and third party advertising services. Our design team can link into
knowledge networks of our overseas engine suppliers to work out design issues. The company as
a whole will benefit from using dirt bike enthusiast sites, message boards, and forums because
the entire organization needs to be in touch with the current trends in the market and the needs
and wants of the customer.
Enterprise Information Portals are a new tool that we can use to provide knowledge
resources to our employees to aid them in completing their objectives. For example, a portal
designed for our sales team would link to in depth sales information. This would include the
database of raw sales data for the past and present, and forecasting for the future. Sales trends
and analysis would also be available. Sales team members would be able to post to a message
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board to provide semi structured documentation for tacit knowledge. This portal would resemble
a typical internet interface. It would require a secure login to protect our sensitive financial data.
The homepage would have a constantly updated news section from both the dirt bike and
financial worlds, and links to all of the information previously mentioned.
In conclusion, knowledge management is an important aspect of ensuring our company’s
success for the future. We are continually seeking to employ the best technology to exploit our
competitive advantages and knowledge management systems are an integral part of creating,
storing, and protecting the knowledge that will allow us to accomplish that.
Final Word on Dirt Bikes USA
Dirt Bikes USA has great potential as a company to continue to grow and flourish. All of
these suggestions will assist Dirt Bikes in becoming the best company that it can be. The future
of Dirt Bikes is in their hands and only time will see what happens to this company.
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