COMP1647: Information Technology Planning

This exercise concerns the development of information systems for the branch offices of
Reguero-Almandeel-Purohit, a rapidly expanding estate agency in the south of
Anywhereland. The attached information was gathered in an interview with Sergio Reguero,
the Commercial Director of the company.
The first question asked was What are you doing that has enabled you to expand so
rapidly? Sergio Reguero informed me that the name seemed to appeal to people! Possibly
due to operating in such a diverse part of the country. In addition they have set up most of
their offices by buying properties sold off at auction which means that they have frequently
paid below the normal rate these cost savings have been passed onto customers. As a
policy, Reguero-Almandeel-Purohit have set up business partnerships with local solicitors
and well established banks which makes the process of buying/selling properties a lot
easier for our clients.

Currently Reguero-Almandeel-Purohit are considering computerising and interneting the

main part of their business: that carried out in the branch offices; the selling and
marketing of houses. They called this Business Improvement Project (BIP). It is hoped
that this will enable Reguero-Almandeel-Purohit to become the premier estate agent in the
south of Anywhereland. Sergio Reguero also hopes that this will enable houses to be sold
more quickly. Current use of IT is limited to use of a general ledger accounts package, a
payroll package, spreadsheets for financial planning, and some word processing. These
are run on four stand-alone PCs based in the Head Office.

Reguero-Almandeel-Purohit have requested a thorough analysis of their business, reviewing

their business strategy, and to identify opportunities for the use of IT in improving their
profitability and market position.

Their current position has been achieved by the drive of a few dedicated staff and by an
effective and ruthless sales force, and, uniquely, they offer all potential property purchasers
a free pick-up service to view properties. In expanding, they recognise the necessity of
becoming less people and more process driven. There is a tendency for offices to go their
own way. However Ahmed Almandeel, the Sales Director, does recognise there are two
issues that he needs to be aware of Sales staff attrition rates (which he hopes can be
reduced by pushing up their commission rates and there is expectation that BIP will help
here) and the need to operate according to the highest ethical standards; occasionally,
customer surveys reveal that staff sometimes fall short of good customer service.

COMP1647: Information Technology Planning

The register of properties for sale, the list of applicants, the calculation of sales commissions,
the production of certain standard letters for vendors, purchasers, solicitors were all
considered to be activities which could be computerised.

There are currently 16 branch offices; each in a different area and each have between five
and ten sales persons. The larger offices have five administrative staff: a branch manager,
property registrar, sales administrator, adverts clerk, and appointments secretary. In the
smaller offices these roles are sometimes combined together.

The central property register is held in the Head Office in Somewheretown and currently
consists of about 3000 at any one time with about 600 additions per week. Roughly 500
properties are sold per week and 100 cancellations are made, either because the vendor sells
by other means or decides not to sell. At any one time there are about 15000 applicants
(potential purchasers) actively looking for properties - about 3000 new applicants are added
per week and a similar number show no further interest and are removed.

Potential vendors phone up or come in to an office and make an appointment for a sales
person to visit their property. This is entered in the sales person's diary and the sales person is
informed verbally. After the visit a full description of the property with photographs is sent to
applicants; a summary description is used in newspaper advertisements. A list is compiled
each week of all new properties registered, this is then sent to Head Office who use it for
sales forecasting. The processing of new properties is performed by the Property Registrar.

For each applicant a card is made out showing the applicant's details including desired price
range and desired area. The Appointments Secretary also creates an Appointments Sheet
which records the appointment details: the date, time, address, and sales person. If an offer is
made then, the price offered and whether the offer is accepted or not is noted. RegueroAlmandeel-Purohit policy is that applicants visiting properties are always accompanied by a
salesperson they find this the most effective way of selling properties. On receipt of a
request to see a property the Appointments Secretary contacts the vendor to agree a suitable
time, checks the Salespersons Diary, and when a time has been agreed informs the applicant,
vendor, and salesperson. After the visit the salesperson will note any offer made on the
Appointments Sheet.

The adverts clerk is responsible for compiling the property list from the summary
descriptions. Each branch clerk sends the current property list monthly to all applicants
whose details they hold. Applicants who have had no appointments in the last month are sent
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COMP1647: Information Technology Planning

the list with a letter asking them to contact the branch office if they are still interested in
properties; if they don't then at the end of the next month the applicant sheet is thrown away.
Each property is advertised three times in local newspapers. The adverts clerk selects the
properties to be advertised each week and sends copies of their summary descriptions to the
local newspapers. The adverts clerk also responds to requests from applicants for further
details on particular properties by sending them copies of the full descriptions.

The procedure for selling houses in Anywhereland is that, after a period of investigation, the
purchasers and vendors' solicitors exchange legal contracts and a proportion of the money. At
exchange of contracts a date for completion of the whole sale is set. After exchange of
contracts neither party can withdraw without incurring some financial loss. On completion
the money is paid to the vendor and the purchaser becomes the owner of the property.

When initial agreement to buy is reached standard letters are sent to the purchaser and
vendor, and the details of the sale are entered into the sales book. This is held in date order
and shows the vendor name, address sold, price, vendor solicitor details, purchaser name and
address, purchaser solicitor details, mortgage details, and the initials of the sales person
involved in the sale. The date of exchange of contracts, and date of completion are added
when these occur. If the sale is cancelled (usually because the purchaser cannot get a
mortgage) this is also recorded in the sales book. On exchange of contracts the sales
administrator prepares a three-part invoice requesting payment on completion of the sale.
Each branch manager makes up a report from the sales book once per month showing all the
sales and the commission due on each sale to the sales person. The branch manager also
receives a commission on all sales made by the branch. The report is sent to Head Office
who enter the commission details into the payroll package.

Some new requirements have been outlined by Poona Purohit the Finance Director

Mix and match reports which would ensure that applicants only receive details of properties
which interest them or, to hasten the sale of a property, by sending details of that property to
all applicants who might be interested in it.

Work in progress reports detailing all the sales proceeding and their current stage would give
valuable information for budgeting.

COMP1647: Information Technology Planning

Under the Estate Agents Act vendors can now be charged for adverts for their properties.
Current policy is allow vendors three free adverts but in future two basic adverts will be
allowed with the vendor being invoiced for any further advertisement.