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Executive Summary Acuscan

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Executive Summary

TO: Cliff O'Connor, CEO

FROM: Pat Lambert

RE: Update - Operation Optimize

This is a summary on the current situation at AcuScan concerning the development of the iScanner for use in the retail industry. It will summarize the situation, discuss key points and recommend actions that can be taken to address the issues described.

The main problem is that we have failed to improve or maintain market share through the development of new products. Because our overall 40% market share is declining, the company faces declining revenues based on the sales of the iScanner. Despite making tremendous cost-cutting efforts, AcuScan is still in a short-term budget crisis. To regain our position as a market leader, AcuScan must develop the software for using the iScanner in retail industry by the year's end. Secur-A Corp is reported to be in the process of developing similar software, so we must act quickly.

Creating a new product, while at the same time making budget cuts, has created an internal crisis among the staff. The Chief Engineer of Product Software is especially adamant about not being able to get the job done in a way that insures quality by the deadline. I have proposed to Kelly that after looking for ways his staff can work more efficiently, we hire contract workers to do the work that his staff is unable to complete in a timely manner. I also proposed that he and his staff decide which tasks need to be completed by the contract workers. I plan to keep in close touch with Kelly to keep him advised about the work, and I will report to you any further problems.

I am rather confident that we will be able to meet our deadline as long as we are responsive of the concerns of department heads and staff and help them with problems as they arise. We also need to emphasize



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