BOISE AUTOMATION CANADA LTD.

Case Report by Group 3

Why did Allison fail? 

We could describe a plethora of reasons for the failure. However, conclusive evidence is not available for
anyone of them.
1. The complexity of the System - As stated in the case, with high-resolution graphics and integrated
systems came along the complexity increase. With Northern Paper inc set up 40 years back and Bob
Muma also stating they needed a system that can be easily operated and was uncomplicated with
simple controls.
2. Not understanding their budget constraints - Canadian paper mills were focusing on cost-cutting
and production efficiency. They were facing intense competition from paper mills across the globe.
In upgrading and setting up an automated system, the finance department played a pivotal role. As
stated by Jason Li, they were under immense budget constraints, and the finance department had
to sway this year to pass the budgets.
3. Not understanding customer needs - North paper mill did not send an RFP but RFQ. They knew
what they wanted, what could benefit them, and they were also quite adamant about their
findings. Boise should have understood the customer mindset and presented the solution according
to that.
4. Not providing two solutions - As advised by Jennings, Boise should have given two strategies in
their proposal stating the price and also the improvements the successor technology had over the
older generation one. It would have provided two options to North Paper mills and also a clear
competitive ground in terms of price, productivity, and future vision.
5. Influencing Internal Decision Making - There was undoubtedly a rift between corporate guys and
the people at the plant of North Paper Mill. Allison’s frequent chats and closeness with Jennings did
not go well with Jason Li, and we do believe, same would have been the case with other Plant
Employees. They viewed that Boise was using Jennings to pull strings at the Plant level.

What could he have done differently? 

Some of the things which could have been done by Boise to bag the contract are:
1. Understanding the North Paper Inc requirement - Once they had submitted the RFQ and reiterated
on multiple occasions that they are going to follow the RFQ, Boise should have connected the dots
and should have followed the RFQ diligently and projected costs and technology accordingly.
2. Understanding the Paper Mill Industry - Paper Mills in Canada was facing intense competition from
global firms and were focusing on cost-cutting and product efficiency. Boise should have sensed this
and also that all the key decision-makers emphasized the point of cost leadership. Boise should
have presented a solution keeping all this factor in mind and focusing on reducing the cost to cater
to the specific needs of North Paper Inc.
3. Provided 2 Solutions - As Jennings pointed out rightly, providing two alternatives could have
worked in Boise favor. It would have given the option of choice in the arms of North Paper Inc. It
would have also depicted that Boise is flexible and ready to go to lengths to satisfy their needs.
4. Building Deep Relationships - Allison focused on gaining the confidence of Jennings. Jennings was
already in Boise’s boat. He should have focused on other key decision influencers and tried to bring
them on board.
5. Understanding the critical Decision Makers - The key decision-makers involved the Finance
Department, the Plant Engineer, and also the Manager. It would have benefitted if everyone could
be shown how the new automated system can benefit their area of interest.