Operations

A key element of ComputerEase’s operations is its Corporate Training Center, located at 987 South Main Street in Vespucci. The Center currently consists of 20 student computer stations, equipped with all the major business software programs, an instructor’s computer station and projection equipment, and state-of-the-art technology enabling the instructor to monitor exactly what each student is doing.

Describes a key aspect of operations.

The Corporate Training Center is vital because most of ComputerEase’s corporate customers have limited, if any, extra computer facilities on their premises appropriate for conducting on-site corporate classes. Thus, ComputerEase can only grow its in-person training courses to an adequate level of income by having well-equipped training facilities of its own to offer.

For its online training courses, ComputerEase decided not to buy and manage its own servers and build its own data center, but to outsource that to a managed hosting vendor who provides a turnkey solution for all hardware/software needs and maintenance, backups, and upgrades.

Corporate Training Centers

On August 1, 2014, ComputerEase opened its first Corporate Training Center, along with its company’s headquarters. This Training Center is equipped with 20 personal computer stations. Prior to the opening of the Training Center, ComputerEase was limited to conducting training programs at the clients’ place of business (referred to as on-site programs).

Cost- and Time-Effective Programs

These on-site programs produce lower profit margins than Training Center classes or online classes. Generally, fewer students attend each on-site training session; instructors spend additional time for travel and setup, and costs arise from the transportation of equipment and materials and subsequent wear and tear. While ComputerEase charges higher fees per student in these on-site classes, the market will not bear prices that truly absorb the increased costs.

Shows method of increasing profitability.

Moreover, the potential customer base for Training Center classes is substantially larger than that for on-site programs. More businesses can afford to send employees to scheduled classes at ComputerEase’s Corporate Training Center — or have a class developed for them at the Center — than can incur the costs and disruption of an on-site program. Online programs offer even greater flexibility.

With the funds now being sought, the company will open a second Corporate Training Center in the city of Whitten Park, where many of its corporate customers are located.

Competitive Advantages

In addition to an offshore technical support center, ComputerEase outsources its data center operations. These centers created several key advantages for ComputerEase. First, these strategic operations decisions allow ComputerEase to focus on what it does best — design classes to efficiently and effectively teach computer software — rather than worry about the nuts and bolts of the underlying supporting technology. ComputerEase doesn’t have to worry about finding and retaining qualified technical staff, or expend large capital investments in hardware and software. Instead, it pays predictable monthly wages and fees to its offshore team and outsourcer respectively, which it can write off on its taxes as an operating expense. The outsourced data center especially gives ComputerEase the flexibility to grow as needed: Rather than having to constantly buy more hardware and software as the business grows, it merely contracts for additional capacity from the outsourcing firm.

Indicates how excess capacity is used profitably.

Regarding ComputerEase’s in-person training, having its own training classroom enables the company to enjoy higher profit margins than its competitors who merely train corporate customers at their place of business.

While maintaining a classroom does incur the additional costs of rent and equipment, training classes held at ComputerEase’s Corporate Training Center produce higher profit margins than classes conducted at customers’ facilities (“on-site classes”) or online.

ComputerEase management chose to lease rather than purchase its Corporate Training Center equipment and negotiated favorable lease terms with Wait’s Electronics Emporium, enabling the company to upgrade its computers every 12 months. This not only significantly reduced the initial capital outlay, which would have exceeded $100,000, but ensures that ComputerEase always has the latest technology for its students — a useful marketing, as well as educational, advantage.

Problems Addressed

A major part of the cost of high-quality corporate training is the teaching materials provided to each student. Although ComputerEase leverages all the development, writing, and updating work that goes into these materials for both its online and on-premises courses, that’s still one of the biggest expense the company incurs. Materials are revised for each new software upgrade, so their average lifespan is less than 12 months.

Details ways to minimize inventory and cost of goods.

To reduce materials costs, we develop all of our training materials, such as course manuals, for online publication only. Instead of receiving printed materials, each student receives a password to access training materials. This also helps the company be more green, by reducing paper use and waste. Although ComputerEase pays more in technical support than it would if course materials were printed, the net result is substantially increased profit margins.

A major operational challenge is staying on the cutting edge of instructional techniques, as technology evolves quickly and users demand richer experiences. This includes adopting updated online courseware platforms and incorporating into the training materials more-costly features such as audio and video.

ComputerEase emphasizes high-quality, productivity-oriented training. To help ensure quality, the company conducts interviews with each corporate client approximately one week after the training session to ascertain that the customer is satisfied. In the case of problems, the company offers free remedial training, preferably at the Training Center. To date, only two students have required remedial training.

The choice of location for the Training Center was key. It had to be within walking distance of a large number of Vespucci target customers (located in a five-block radius in the central downtown business district). It needed to be close to transportation and parking facilities and had to present a professional image. And, of course, rents had to be affordable. For this reason, South Main Street stood out as the best choice. It is downtown, immediately available to the prime office locations, but it offers significantly lower rents than offices on the north side of Main.

Explains choice of location.