Project Management BEN610

BUSINESS PROPOSAL9

Individual Feasibility Study Report Project Management( BEN610)

Submitted by: Submitted to:Harpartap Singh Madhav NepalN8991308

Executive summaryThis feasibility report is prepared for the Smart electronic executives to evaluate the best alternative to increase sales for the company, and thereafter recommend on the feasibility and possible merits of implementing a customized system. Over a couple of years , the company has not changed its way of operation and thus there is need to look for the current techniques to improve different activities .The report also caters for the requirements, background and overview of the proposed system so that the company can doubtfully implement the system. Smart Electronics is a company in the city which deals with a range of electronic products and has two branches in the entire city. The electronic accessories available include; computers, laptops, television, cameras, compact disks among other products. The company supplies its products throughout the city and in addition provides after sale service to the clients such as transport and installation support. This company works in collaboration with other business owners and therefore provides wholesale products to clients and also deals with individual buyers. The customers normally order for products either via telephone or personally visiting any of the branches, although most clients prefer calling in order to save on time and transport.As a result of the challenges faced by the company and also clients, several feasibility studies have been carried out and three options have been proposed for adoption:Alternative 1: It does not advocate for any changes to be implemented.Alternative 2: There is a proposal to implement a customized system to capture inventory and help client to make orders.Alternative 3: There is a proposal to create a company website which will entail most of the details about the company, help clients order for goods and also provide feedback.Alternative 4: Use Facebook page to advertise for the goods.

Table of contentExecutive summary2Table of content4Business proposal5Background of the proposed system5Strategic business objectives8Key project drivers9Different alternatives available10Conclusion and recommendations14REFERENCES15APPENDIX16

Business proposalBackground of the proposed systemAlthough the company has been successful over the years, the current system entails a lot of procedure not only to the company but also the clients. An excel worksheet is used to record all the transactions and an off-the-shelf software which currently is of rare use due to enlargement of the company. The client is required to call the sales people and make an order via the phone. The sales people at times may be very busy and this slows the rate of response. In return, the clients may end up deciding otherwise due to slow service delivery. This system also involves a lot of paper work; it is tedious and not cost effective. At some point saving the work is also not easy and occupies a lot of physical space. As a matter of facts, these documents may be misplaced easily or even destroyed in case of wet condition. Additionally, the distance between the two work stations make store keeping difficult and controlling inventory is therefore not consistent. Therefore, the current system is full of challenges and if any improvement has to be realized within the business a recent technology is required to curb the problems (Asghar, & Umar, 2010).In the city there are several business people dealing with electronics and most of them are just small business setup. Currently there are two great competitors of Smart electronics and thus need to make some crucial changes in the business. Hope electronics serves almost a quarter of the clients whereas Skynet electronics serves a quarter also. Smarts electronics also serves a quarter and the other clients are served by the small businesses. Recent research by (Davenport 1990) shows that change in technology has really helped the small businesses improve their operations .Most of the businesses are using multiple application software to enable them serve their clients promptly. As a result, there is great competition even with the big companies and there is worry that they will outdo Smart electronics .Consequently, the company executives are researching on the best way to deal with the challenges.As Smart Electronics Company undertakes various improvement ideas, the way customers are attended to become paramount to the business because it is the source of revenue. Therefore, a modern system has been suggested to help capture clients details and help settle various problems that are currently experienced by the business such as communication, order taking and stock control. The proposed customized system is a way forward to eliminate some of this difficulties .First and foremost, the system will be designed as per the requirements of the company thus serving the whole purpose of its existence. Several companies prefer customized systems because the system is usually developed according to the companys needs and preferences. This way, the company can have advantages over its competitors in the same business. Thus, this is one of the effective ways of dealing with business competitors.The two major types of software commonly used by the businessmen are off-the-shelf and the tailor-made .The off-the-shelf software is widely developed to cater for the needs of different businesses. It is easily gotten and cheap to acquire. On the other hand, we have the tailor-made software which is widely known for its efficiency. This is a software developed based on the users requirement and is also referred to as the customized software. The customized software has more benefits than the off-the-shelf software.To start with, most off-the shelf software are not made as per the user requirements and therefore no guarantee of the purpose for which it is bought, in contrast to that, the customized system fits the business requirements and the developers can guarantee 100% functionality as per the business needs. The off-the shelf systems are developed in large quantities such that any business can get a system they can incorporate for a certain duration .The system can only help a small portion or solve very minor problems and not complicated issues.Secondly, the off-the self is usually bought to meet need at a particular time and therefore in case of further support ,the developers of the software may not be available to help suit the rising needs of the company, for example if the business has enlarged in size and requires an advanced software ,the developer of the software may not even be available to support users .Customized software is developed and maintained by the developers such that in case of any issues the developer is available and can mold the system as needs arises .The developers work on contractual basis unlike the off-the shelf where the buyer may not even know the developer and in case of need for further development of the software additional costs may be incurred .Thirdly, the off-the -shelf software is prone to attacks by hackers because most of them are familiar with such software hence not complicated to crack the codes and maneuver threatening system security. However, this is not the case with tailor-made because the codes used might be very new to the hackers and thus complicated to interfere with the system. The customized software is also easy to use perfectly fits the user unlike the off-the-shelf system. This serves as perfect way to maintain system security and controlling the overall functionality of the business.Additionally, research by (Phan 2003) proved that the customized system may be integrated with the other software within the business and this makes work easier. This may be experienced by the business where application software is used for different activities. In contrast, this is rarely seen in off-the-shelf systems. They are not compatible with other system already in use by the business. As a result, workers may need more time to familiarize with the system and learn to work as it is designed. In most case, work done using the system may be full of mistakes and takes a lot of time for the users to adopt.Another benefit of the customized system is that the hardware required may be minimal compared to the off-the shelf. This is because any change in the business will require totally new hardware acquisition to suit the installed software. Therefore, the business must be ready to support any change that erupts in the business both physically and financially .Therefore, any intelligent entrepreneur would go for a cost saving technology and which would work better for the entire organization (Kirchmer 1999).On the other hand, (Kiong and Kee 1998) discusses the challenges that businesses using customized systems face as highlighted here. First, funding the project is high because the system is developed solely for your business. Therefore a lot of money may be required in case of a customized system as compared to the off-the-shelf. Next, the programmer required for such a job should be qualified person which in most cases it is very hard to scrutinize unless after the project is complete. Lastly, the company depends fully on the developer for the source code for instance when the user gives instruction, he may not provide sufficient information for the proper development of the system thus the system may still have discrepancies.Strategic business objectivesWhen planning for Smart electronics, the key business agenda can only be scrutinized through use of an analysis tool called SWOT analysis. The four letters stands for Strengths, Weaknesses, Opportunities and Threats. Based on the SWOT analysis, any business has to focus on the principle objectives of the business which includes; improved communication among workers and clients, increased sales, proper use of available resources, invention of new technology and implementation and the market proportionality. Smarts Electronics has really expanded for the recent years due to proper planning and allotment of resources. The means of communication is not fully covered and thus still a challenge for the business. Financially, the business has increased its share capital and every year profit has always increased apart from last year which recorded the lowest profit since the company started its operations. This company is among the most competitive companies but the only drawback is use of an off-the shelf system and some obsolete methods of operations (Valentin 2001).Key project driversThe main objective of Smart Electronics is to increase sales through the most recent technology through minimal costs. Secondly, the company is in great need of reliable services to the customers as a way of attracting them. It is therefore essential to work out the most effective ways of communication not only within the company but also to the clients. The company is also planning on the ways to reduce paper work and improve on the ways of ordering for the good. The company is also facing stiff competition and is looking for ways of coping in the business world by making use of the strengths and opportunities and reducing weaknesses and threats surrounding the business.Project assumptions, constraints and validityDuring the development of the new customized system several assumptions have to be considered;1. All the workers are required to support the software development team with any information required in the course of creating the system.2. The steering committee will be required to describe the kind of system required by the company and clearing define the objectives of developing the new system.3. The current database will be incorporated in the creation of the new system to avoid loss of data.4. Internet connectivity is expected to be able to access data from all the customers from whichever location.5. The business will be in operation as normal for the rest of the time whereby the process is approximated to use two months.6. The system is expected to allow customers to order for goods even without calling and pay via plastic money and then the product will be delivered to the required destination.7. Some of the systems such as manual way of counting products will be eliminated the moment the system is developed.8. The project is approximated to cost $ 1500 and a maintenance fee of $100 every year.After the development process, the hardware and software required will be installed ready for use. The team members will ensure that the system has been configured fully and verify availability of all the parts. Additionally, the two systems have to work concurrently to test the functionality of the new system until when it will be declared perfect to replace the current system. Meanwhile feedback will .be corrected concerning the system and it will be fully analyzed before the system is accepted into the business.Different alternatives availableAccording to the feasibility study, the company may also prefer developing a website as a way of solving its current problems. The website is meant to show all the goods available for sale and collecting feedback about the services offered by the company. In addition, the website may also incorporate a chat option where the buyer and the seller can easily interact by use of instant messaging. The website would also show the prices of different products that are available for sale and the location of the two working stations. The development price plus the maintenance fee for the website is approximated to be $ 1000 whereas the revenue for the year first year is $600 and the following year $700.As a result, the project would take one year and seven months.The initial step of developing a website is identifying the requirements of the company, by defining the goals and the objectives of the company. Secondly, consider information which will be dynamic because the needs of the company can change at any time and this has to be accounted for, identify some of the unique features to include in the websites making the website unique and outstanding. Some of the requirements during website development are; computers, internet, web browser, internet service provider and markup Language for example HTML. Additionally, ensure the process cost can be accounted for even during the planning process. The company should also ensure there is a person to update the website every time. This project is expected to take at least five years for it to be fully successful as indicated in the schedule in figure 1.In the modern world, everything is getting online business been inclusive. Research by (Avison and Fitzgerald 1988) shows that many companies are creating websites and this has raised to more than 200 million by the end of 2010 and this has given growth to internet sales. As a result it is important to have a website for a business.one of the benefits is that a website helps a company advertise its commodities worldwide. Secondly, the clients can easily get business information such as location, products available, prices of different commodities and the contacts. Thirdly, a website which is frequently updated provides fresh information about the products available. In addition, a website can be linked with other social media networks thus making advertising work very easy.In contrast, a website may show a very bad image of a company in case of bad feedback from the client for example if a client has been poorly attended to, there is tendency of posting negative feedback on the website which is seen by everyone. Secondly, it may be very hard to reach the right people. Although most of the people will see the advertisement, they may not be interested with the product and at some point only spam will increase in the inbox which is very discouraging to the business. For international businesses this might be one of the best ways to improve sales but for a local business it will be costly and rarely effective.The last alternative put across during the research was use of Facebook page as a way of advertising commodities thus increases sales. Facebook is a social media network and thus easily accessible worldwide. It is easy to monitor feedback through likes, comments and sharing of information. Another benefit is that Facebook can be linked to other social media such as twitter, LinkedIn among others just like a website can do. In addition, Facebook is free unless the business would like to sponsor an ad on Facebook (Lacho and Marinello 2010). Some of the challenges of using Facebook are lack of the target group, low conversion rate because liking a post does not necessarily mean you will buy the product ,poor business image in case of poor feedback among others.For all the four consideration, use of Facebook is the lowest in terms of cost and also it is the lowest in terms of returns according to the assumption of Smart Electronics. Use of Website need huge capital has low returns compared to the amount invested. The current system is no longer competitive because most of the other companies have similar systems .The system is tedious, involves a lot of manual work, no proper way of recording transaction from the two centers a and no proper way of ordering goods by the clients and also ordering for stock from different vendors. According to the research done by (Shanks, Seddon et al. 2003), the proposed customized system is therefore a good consideration for Smart electronic because of the following benefits:1. It will make work easier.The system will be created to fit the needs of the company thus easy to use and access information. The number of clients attended to within a given duration will increase due to use of an efficient system.2. Accuracy The way inventory is handled from manual to systematic way of accounting for the goods available. It will be easy to note when the stock is low by checking at the reorder level of the system.3. Time savingClients will easily login to the system and order for goods and pay for the same goods. This reduces movement and ensures excellent services are offered.4. Reduction of paper work and physical storageThe system will incorporate a database which will reduce paperwork in the company and also storage space required to save physical documents.5. Improves on communicationAll the other systems will be integrated into one system which will allow communication in all directions within the company.6. Improved servicesWhen communication process is clear, all the services offered will be promptly done by the sales people and this will improve feedback from the clients.7. Increased productivityThe customized system is user friendly and does not require a lot of training, it also eliminate errors thus increasing productivity level of the company.8. Save on costsThe costs incurred while calling the clients so many times will be minimized. Also the cost of calling vendors will be reduced due to the automated order system.If we were to evaluate the proposed system payback period: The approximate amount used to fund the system within a year is $1.6m and the revenue in the first year is $2.8m.Therefore, the project will take less than one year to pay the invested money.Conclusion and recommendationsIn conclusion, I would therefore recommend the customized system to Smart electronics. This is because the system will increase sales for the company and also help in facing the stiff competition by the other business people. This system will also improve the working conditions of the employees thus motivating them. It is therefore paramount to check on all the benefits of this system although it may face some challenges but it outweighs all the other option available for evaluation. I therefore recommend adoption of the customized system as a feasible project based on research and analysis of the feasibility study.

REFERENCES

Asghar, S., & Umar, M. (2010). Requirement engineering challenges in development of software applications and selection of customer-off-the-shelf (COTS) components. International Journal of Software Engineering, 1(1), 32-50.Avison, D. E. and G. Fitzgerald (1988). Information systems development: methodologies, techniques, and tools. Boston; Oxford [England], Blackwell Scientific Publications.Davenport, T. H. (1990). "The New Industrial Engineering: Information Technology and Business Process Redesign." Sloan Management Review 31(4): 11.Kiong, T. C. and Y. P. Kee (1998). "Guanxi Bases, Xinyong and Chinese Business Networks." The British journal of sociology 49(1): 75-96.

Kirchmer, M. (1999). Business process oriented implementation of standard software: how to achieve competitive advantage efficiently and effectively. New York, Springer-Verlag.

Lacho, K. J. and C. Marinello (2010). "How small business owners can use social networking to promote their business." Entrepreneurial Executive 15: 127.

Phan, D. D. (2003). "E-business development for competitive advantages: a case study." Information & Management 40(6): 581-590.Shanks, G., et al. (2003). Second-wave enterprise resource planning systems: implementing for effectiveness. New York; Cambridge, U.K, Cambridge University Press.

Valentin, E. K. (2001). "Swot Analysis from a Resource-Based View." Journal of Marketing Theory and Practice 9(2): 54-69.

APPENDIXFig1: Gannt chant representing tasks and the time required for each activity in creating a website.Task5 years schedule of activities

0.5yr0.5yr0.5yr0.5yr0.5yr0.5yr0.5yr0.5yr0.5yr0.5yr

1.Defining project requirements

2Designing the website user interface

3Research and developing contents

4Incorporating graphic in the website

5Testing of the links

6Uploading content to the server

7Implementation

8Feedback collection

9maintenance