Sections 9-10: System Requirements and Context Diagram
Trusty Carpets
Team Delta
I.
II.
Table of Contents
Background and Environmental Analysis .................................................................................. 4
A.
Background ....................................................................................................................... 4
B.
Environmental Analysis ................................................................................................... 4
1.
Opportunity of Business Vision, Strategy, and Objectives ............................... 5
2.
Inefficient Processes and Technology.................................................................. 5
3.
Competitor Products ............................................................................................ 6
4.
New Technology Trends ....................................................................................... 6
5.
Commercial and Operational Trends ................................................................. 7
6.
Statutory and Legislative Trends ........................................................................ 7
Opportunity Analysis.................................................................................................................... 8
A.
Summary of the Opportunity .......................................................................................... 8
B.
Identification of the Opportunity .................................................................................... 8
C.
Alignment with Business Strategy ................................................................................. 10
D.
Supporting Evidence of the Opportunity ..................................................................... 10
E.
Expected Timeframe for Implementing the Opportunity ........................................... 11
F.
Positive Impact of the Opportunity ............................................................................... 11
G.
Reason for Selection ........................................................................................................ 12
III.
Proposed Solution ....................................................................................................................... 12
IV.
Expected Improvements ............................................................................................................. 13
A.
How the Proposed Solution Will Take Advantage of the Opportunity ..................... 13
B.
IT Solution Aligns with Business Strategy ................................................................... 13
C.
Benefits from IT Solution ............................................................................................... 14
D.
V.
1.
Financial Benefits ................................................................................................ 14
2.
Non-Financial Benefits ....................................................................................... 15
Other Values of Solution ................................................................................................ 16
Alternatives Analysis .................................................................................................................. 16
A.
B.
Business Alternatives Considered ................................................................................. 16
1.
Maintaining the Status Quo of the Business ..................................................... 16
2.
Proposed Solution for the Business ................................................................... 19
3.
Alternative IT Solution ....................................................................................... 21
4.
Improving the Business Processes ..................................................................... 24
Comparison of Alternative Solutions Table ................................................................. 26
2
C.
VI.
VII.
Justification of Proposed System ................................................................................... 27
Feasibility Analysis ..................................................................................................................... 27
A.
Economic/Financial Feasibility ...................................................................................... 27
B.
Organizational/Operational Feasibility ........................................................................ 28
C.
Technical Feasibility ....................................................................................................... 31
Requirements Checklist for the Proposed System ................................................................... 31
A.
Functional Requirements ............................................................................................... 32
B.
Data Requirements ......................................................................................................... 32
C.
Technical Requirements ................................................................................................. 33
D.
Security Requirements ................................................................................................... 33
VIII. System Users Context Diagram ................................................................................................. 33
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I.
Background and Environmental Analysis
The following paragraphs cover the background and current operations of Trusty Carpets.
General information is provided to have a clear understanding of the type of business that
is being operated. Also covered within this section are the current operations that include
the employees, locations, and financial profits. A brief timeline is covered because the
business is currently going through significant changes.
A.
Background
Trusty Carpets is a small retail carpet store located in a strip mall that has been
owned by the current proprietor for over 20 years. Current operational staff
include the sole proprietor, two sales personnel, an accountant and subcontracting
of a local installation business. Trusty Carpets currently utilize a basic
information technology (IT) infrastructure to manage its current operations. The
basic IT infrastructure includes an existing internet connection, computer, two
tablets, multi-purpose printer, and a router. Customer credentials and orders are
currently managed with simple Google documents stored and shared amongst
employees, the accountant, and installer utilizing the Google cloud.
Trusty Carpets primary objective is to expand. To pursue this objective Trusty
Carpets is acquiring the property Metro Carpets that provides a large showroom
and an adjoining 20,000 square foot warehouse. Furthermore, Trusty Carpets is
fully merging with the installation business. With acquisition of Metro Carpets,
the proprietor decided to keep the three sales staff and two warehouse employees
that were already on board. The carpet installation business operations are all
conducted internally to include an outside employee handling the finances. Trusty
Carpets employs two carpet installation teams that are manned with two personnel
to each team. The carpet installation business includes Trusty Carpet
management, external accountant, and six personnel for staff. The acquisition of
the new larger space and the decision to merge with an installation company
provides the foundation Trusty Carpet needs to permit future growth.
Due to a lack of IT infrastructure Trusty Carpet requires an upgraded IT solution
that is capable of efficiently managing all operations. This document will provide
a business case that identifies an IT solution that facilitates the growth of Trusty
Carpets.
B.
Environmental Analysis
Most profitable businesses adapt to their environment and the needs of their
consumers in all aspects of policies, technological, and operational processes. An
environmental analysis is conducted for utilizing industry-standard tools to
identify internal and externals factors that could affect the organization's
performance. Not only were threats determined within this analysis, but
opportunities have also been recognized. This section will highlight the
business's current challenges, potential problems, and possible opportunities.
4
1.
Opportunity of Business Vision, Strategy, and Objectives
To achieve the vision and objectives that Trusty Carpets has presented,
implementing a wide range of technology solutions that best serve
customers and employees alike would be the best solution moving
forward. A cost-efficient but practical option would be utilizing a tailored
ERP software solution that could help Trusty Carpets produce the results
they are expecting. An ERP solution can easily be implemented into
existing processes and be tailored to fit the needs of current and future
demands. In addition to ERP software, mobile applications and hardware
can help Trusty Carpets expand their operations without the need for
costly infrastructure. These strategies are an agile but practical solution
that can help Trusty Carpets take their operations to the next level, without
exhausting excessive and precious resources.
Trusty Carpets is very behind in their technical business processes
regarding its competitors. The business is currently running a basic IT
infrastructure that has a connection to the internet. With a proper IT
infrastructure, Trusty Carpets will be able to manage both its locations and
its customer base. By utilizing these new technological solutions to reach
out, a new potential customer base for advertising promotions and sales
Trusty Carpets will be able to customize this technology to increase profit
margins, manage business objectives and strategies.
2.
Inefficient Processes and Technology
Trusty Carpets can develop a new IT infrastructure, and new business
processes to replace the current inefficient processes and technology. This
new infrastructure will offer better capabilities for the employees and with
the new customers that Trusty Carpets will be able to reach. This new IT
infrastructure, IT strategies, and business practices will better align with
the vision Trusty Carpet desires.
•
•
•
Paper-based records of the business currently being used are not able
to merge the information between the two locations. This prevents
employees from directly accessing customer information and records
between the two locations minimizing workflow between the two
operating carpet locations.
Trusty Carpets are lacking software such as an invoice system,
inventory management system, and a payroll system. Implementing
such essential software will eliminate the need for an accountant,
ultimately being more cost-efficient.
Trusty Carpets pays for advertisements and promotions in the local
newspaper. Adjustments to the marketing strategy to promote the
online aspect will enable Trusty Carpets to reach a broader market.
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•
3.
The basic IT infrastructure provided by Ben is minimal and lacking
security. With a basic IT infrastructure, Trusty Carpets runs the risk of
exposing confidential information to malicious attackers, which could
create a breach of confidential information, tarnishing the reputation
for the customers of the company. Lastly, there is a lack of connection
regarding the network with the new location, formerly known as Metro
Carpets. Merging information, such as customer information, sales,
inventory, and invoices is critical to the company's success.
Competitor Products
The use of engineered flooring, more commonly known as carpet tile, has
been growing in popularity over the years. The “Global Carpet Tile
Market Industry Analysis and Outlook (2016-202)" published by Koncept
Analytics describes carpet tile as an integral part of the soft flooring
segment. Carpet tile is widespread, especially in corporate sectors like
offices and hotels. Koncept Analytics predicts that the carpet tile market
will grow significantly in the next years in the housing market due to
rising construction costs and increased home remodels. A particular
interest of Trusty Carpets is to move forward as an environmentally
friendly business utilizing recyclable carpet tiles.
Carpet tiles installations are limited, with no adhesive backing, which is
environmentally and recycling friendly, not to mention the carpet tiles
concept is mostly "do it yourself." Additionally, consumers like carpet
tiles because they can replace sections of worn or damaged carpet without
having to replace large carpet areas. The features and choices in carpet
tiles are growing, which will drive increased growth in this market, which
would later be a market issue for the carpet sales and installation
businesses.
Sisal carpet is another competitor's product causing concern for this carpet
business. Sisal carpet is natural and sustainable. Green flooring is a
growing trend. Homeowners preferring carpet made of natural materials
are buying sisal carpeting. Sisal is woven from extracted succulent plant
fibers derived from Agave sisalana. Sisal offers carpet that is sustainable
and biodegradable with options such as a fire-retardant and stain-resistant
great for high traffic areas. Sisal carpet is not as soft as other carpets.
Depending on the weave, it can be considered scratchy. Still, Sisal has
gained popularity because it is eco-friendly (Sullivan, 2019).
4.
New Technology Trends
Today, we are amongst a society that is making leaps in technical
advancements, which have inevitably leaked into how companies operate
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on the day-to-day. Technology trends are making business processes
more practical, cost-efficient, and, most importantly, profitable.
Trusty Carpets is currently undergoing expansion and acquired Metro
Carpets as the sister store to Trusty Carpets. Before the expansion Trusty
Carpets lacked inventory space only storing samples making it
manageable to track inventory directly through manufacturers. Metro
Carpets is a much larger property offering a 20,000 square foot warehouse
alleviating the lack of storage for inventory. The flaw of Metro Carpets is
that they utilized handwritten ledgers to store customer records as well as
carpet inventory. Tracking of finances, bill distributions, invoices,
payment collection, and payroll are done by an outsourced accountant that
does not prioritize Trusty Carpets and the newly acquired Metro Carpets.
Enterprise Resource Planning (ERP) would rectify these manual processes
by offering a readily accessed overview of essential attributes within a
single mobile database that is in sync with both Trusty Carpets and Metro
Carpets. An example of a scalable ERP that directly aligns with the
Trusty Carpets needs is QFloors, which is an ERP that tailors specifically
to small, midsized, and large flooring businesses. Eliminating manual
processes and implementing QFloors would efficiently manage,
streamline, and track inventory, purchase orders, sales, customers,
accounting, job costing, checkbook, business labor reports, product
probability reports, CRM, and integrated estimation software (QFloors,
n.d.).
5.
Commercial and Operational Trends
Operational trends, such as business growth and expansion, should be
expected for the company. Economic trends such as inflation rate changes
in prices from one year to the next, or year-over-year. It is the
organization's primary focus to understand that the market will continue to
result in new risks and challenges throughout the way. Trusty Carpets
needs to select the best team suitable who will be responsible for
evaluating and developing risk management strategies. Critical evaluation
of a risk management plan at every stage is vital, especially at an early
stage. It will allow companies to discover the flaws before it gets into the
action.
6.
Statutory and Legislative Trends
Government authorities have been known to change rules and policies
regulating how businesses perform their activities. The government will
always prefer to add something to an existing policy to ensure that they
are not termed outdated. It is Trusty Carpets responsibility to stay current
with environmental laws, policies, and regulations as they pertain to his
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business. Trusty Carpets should implement a Compliance Management
System (CMS). A CMS helps manage risks associated with changing
product and service offerings and new legislation enacted to address
developments in the Marketplace. This will allow the organization to
understand its responsibilities, incorporate requirements into business
processes.
II.
Opportunity Analysis
The purpose of the opportunity analysis is to identify the potential improvements that can
be made within the business. It does not cover the solution that will be covered later on.
It is merely identifying the possible areas of improvement that are applicable to Trusty
Carpets. A general overview is first provided with a summary and an identification of the
opportunity that is present. It also includes the alignment with business strategy, a
timeframe expectation, the impact, and reason for selection.
A.
Summary of the Opportunity
Trusty Carpets has an opportunity to expand their carpet sales and installation
businesses by increasing IT infrastructure to similar systems that other industry
leaders are currently using. Implementing QFloors ERP will help reduce the
manual business processes to help increase productivity. Trusty Carpets will be
able to utilize QFloors by managing all of the customer and inventory data of both
business locations. Utilizing vacant space at the new location to store carpet to be
recycled will ensure Trusty Carpets will stay current with environmental
regulations. Lastly, the local government and community is changing and would
like to use more environmentally friendly materials which could attract a new
customer base.
The overview of the opportunity is as follows
•
•
•
•
B.
The new IT infrastructure will provide a consolidated database for all business
operations.
Implementing a new IT infrastructure will provide new online marketing
strategies for Trusty Carpets enabling expansion their existing clientele.
Utilizing the new warehouse for higher inventory at hand providing faster
order processes and installations while keeping prices low to stay competitive.
The new IT infrastructure will provide a more secured storage place for Trusty
Carpets data.
Identification of the Opportunity
An opportunity has been identified for Trusty Carpets to gain a competitive
advantage. The expansion of Trusty Carpets with the purchase of the second store
creates a business opportunity. With Trusty Carpets taking on a new business
partner with the merger of Carpet installers will furthermore enhance the
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opportunity. The carpet sales team believes in keeping his prices reasonable. The
company is planning to expand sales by providing internet purchase options.
Trusty Carpets is planning to send salespeople out to customer's homes to take
measurements and orders. The company wants to remain environmentally
conscious. Trusty Carpet is setting the tone for a roadmap to success. Trusty
Carpets is developing strategies to build a competitive advantage. There are five
things Trusty Carpets has done to build a competitive advantage.
•
Cost Leadership Strategy
Trusty Carpets are believers in fair market pricing. Trusty Carpets will
continue to offer lower pricing options.
•
Differentiation Strategy
Trusty Carpets plans to differentiate the company from other carpet businesses
by offering a one-stop-shop. Trusty Carpets sells and installs carpets
presently. The company will offer interior decorating in the future.
•
Innovative Strategy
Trusty Carpets has new ideas such as salespeople making home visits to take
measurements and orders. The interior decorating addition and the one shop
home services are innovative ideas.
•
Operational Effectiveness Strategy
The additional services will not affect the business’ superior customer service
Trusty Carpet has provided over the years. The new additions will make the
business more efficient.
•
Technology-Based Competitive Strategy
The new technology will make processes more efficient and allow the
company to reach more customers. The technology will help the company
continue to grow (Forbes, 2016).
Trusty Carpets will create an opportunity by continuing to provide lower prices
for customers. Trusty Carpets is setting a standard of Cost Leadership Strategy.
The company’s purchase of a second store provides them with more substantial
inventory allowing them to purchase in bulk for more significant savings to be
passed down to customers.
Trusty Carpets plans to expand, creating a one-stop-shop for carpeting. The
company has an opportunity to set the company apart from other businesses.
Trusty Carpets plans to establish relationships with new home builders and
provide in home sales. The company salespeople plan to visit customers' homes
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to take measurements and sales orders. Trusty Carpets plans include reaching out
to interior decorators to expand sales also. The current and planned services are
opportunities to differentiate their business from other carpet retailers.
Trusty Carpets new ideas such as salespeople making home visits to take
measurements and orders. The interior decorating addition and idea of creating a
one stop home service are innovative ideas. Trusty Carpets wants to be
environmentally responsible by allocating warehouse space for recyclable carpet.
Trusty Carpets investment in software as a service (SaaS) and ERP Technologies
opportunities to improve the current infrastructure. The ERP software allows the
company to integrate functions such as accounting, supply chain, operations,
reporting, and human resources. Trusty Carpets infrastructure deployments are
upgrades to create a technology based competitive strategy (Microsoft, 2019).
C.
Alignment with Business Strategy
With the recent acquisition of a new and much larger location, a shift in business
operations is critical. The new location gives Trusty Carpets the opportunity to
implement a new technology system that will usher in a new wave of sales, via
the internet. Additionally, the new system can allow Trusty Carpets to create a
mobile sales force that does in-home sales calls, as well as remain
environmentally compliant. The surplus of new space allows a much larger onhand inventory to complete installations faster. With a new state-of-the-art
system, customer data can be maintained off-site in the hands of a capable proven
organization.
D.
Supporting Evidence of the Opportunity
Trusty Carpets objective is to bring their carpet business to the next level; the
requirement for additional space and resources is apparent. With the acquisition
of Metro Carpets, the warehouse can be utilized for space and resources. This
will allow Trusty Carpets to allocate warehouse space for recycled carpet for EPA
regulations. Trusty Carpets can drastically increase sales and revenue by
providing clients faster estimates to book sales. Merging the two businesses and
utilizing the IT solution will reach full revenue potential that aligns with Trusty
Carpets business strategy.
Another piece of evidence that an opportunity is present is the possible
implementation of online marketing versus the current model of print advertising.
As Trusty Carpets possible customer base grows, the need for their advertising to
reach farther, on a limited budget, will present itself. Online advertising can
allow a business to set a precise spending limit on advertisements while reaching
a large pool of potential customers (Hamel, 2016).
The most prominent piece of evidence is the lack of current IT infrastructure. By
implementing an agile, predominantly cloud-based, infrastructure can help Trusty
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Carpets grow while remaining efficient on IT costs. Adopting a robust, industryspecific ERP software will allow Trusty Carpets to purchase different functions
while increasing sales and information power incrementally. Industry evidence
trends show that the use of IT in business almost always produces immediate
positive results, and with Trusty Carpets having a "clean slate," the
implementation should be relatively painless and effective (Blasingame, 2017).
E.
Expected Timeframe for Implementing the Opportunity
The first opportunity would be to merge sensitive company information between
Trusty Carpets and the newly obtained company Metro Carpets. The timeframe
for this opportunity should be realized in about six months, ensuring that all
customers are informed about the merging companies along with the new carpet
installation service provided. Utilizing this opportunity will help ensure healthy
relationships with both customer bases.
The next opportunity to utilizing the new warehouse for recycling carpet should
be realized in a timeframe of about five months. This will attract new customers
for the business, because they are environmentally responsible. If this realized
before the customer information has been merged, this could also be explained to
the existing customer base when informed of the merging companies. This
opportunity should be realized before the website is completed so the company
can advertise its environmental initiative on its website. Lastly, having the
opportunity for recycling done earlier will also protect his businesses from and
local ordinances that the town council is considering.
The third opportunity of building relationships with new home builders will have
a more limited timeframe to be realized. Since the new homes are in the process
of being built, Trusty Carpets will want to secure this opportunity. Depending on
the size of the housing developments, this could take several months or years
before the carpet is ready to be installed in all of the homes. The timeframe for
this should be realized within the first few months to ensure stock is ready and
available. This will also create a schedule of dates for the installation team when
jobs should be started and completed by for the new home builders.
The last opportunity to be realized is to reach out to the interior decorating
community, having a website for internet sales, and in-home sales. This
opportunity will have a longer timeframe to be realized to ensure that the
company will first be able to manage the two separate locations along with
installation operations for the whole business. The timeframe for this opportunity
should be realized in about eight months to a year.
F.
Positive Impact of the Opportunity
As noted above, taking advantage of standardizing and more importantly,
improving current processes will better align the IT strategies for the company
with its main business goals and continued growth of its profit margins.
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Improving the processes will also allow the staff to be more efficient and
productive. Having a universal system between the two storefronts will also
allow employees to seamlessly transition between locations and work from either
location when necessary, without needing additional training. The ultimate
realization is that this business opportunity for the carpet sales company will now
give him the chance to reach new heights and gain a financial advantage above his
competitors.
With the increase in profits, Trusty Carpets will help increase sales, thus
increasing profits. Successfully building relationships with home builders will
also increase the positive reputation of Trusty Carpets and result in more sales
leads. Recycling carpet will also help build the reputation of an ethical and
environmentally friendly business. It is one aspect that will set the Trusty Carpets
business apart from competitors and helps attract like-minded customers (Keegan,
2013). These opportunities lead to sustainable revenue growth and positive
customer relationships. These are both win-win opportunities for a business that
requires little investment beyond the changes that have already been made.
G.
Reason for Selection
In recognizing this opportunity over other results, the benefits that could be
gained from making changes to the business can be solved by just one solution.
The carpet sales and installation businesses are going to become merged shortly,
and they will need a way to manage all of their resources. The business can
continue to expand by efficiently using resources such as inventory, sales,
technology at retail locations, and mobile devices for in-home purchases. By
investing in a solution that takes advantage of all these opportunities, the
businesses can be successfully merged while preparing for the future of inventory
management, sales, and working from multiple locations.
III.
Proposed Solution
Though Trusty Carpets has seen previous success utilizing a basic IT infrastructure, the
need to adopt an ERP software has never been more evident. The primary objective is to
continue to increase profit margins and is aligned with doing so, resulting from the recent
expansion. The proposal to implement QFloors Software will offer the essential
technical advancements for all of the staff needs at Trusty Carpets. QFloors is designed
to cater specifically to existing flooring companies to efficiently streamline processes
such as tracking and managing inventory, orders, customer details, as well as cost and
profit margins. QFloors is cloud compatible, allowing for an easy merging and
accessibility of Trusty Carpets and Metro Carpets data. QFloors features QCloud is an
easily scalable online database that provides automatic backups, protection from theft,
virus, and corruption.
Additionally, QCloud is monitored and maintained on a 24/7 basis by skilled staff.
Computers, hard drives, and software are all maintained and upgraded or replaced as
12
needed (QFloors, n.d.). The transition period is seamless and time-efficient also.
QFloors' 4-Day Onsite Conversion and Training option is a great way to minimize
downtime and help the entire team quickly come up to speed. We travel to the location,
and in just four days, train the entire staff and convert the business from what was
previously used to QFloors (QFloors, n.d.). An ongoing unlimited training and support
are offered twelve months after the transition.
IV.
Expected Improvements
This section is planned to cover the way that Trusty Carpets could potentially use this
opportunity to their own advancement. In addition, it shows how the IT solution will
align with the business strategy. Both financial and non-financial benefits are discussed
at length. Lastly, are other values that may not have been considered.
A.
How the Proposed Solution Will Take Advantage of the Opportunity
The improvements to both of the carpet sales businesses utilized by QFloors will
allow them to track inventory in real-time between both locations, and in-home
salespeople. This aspect will allow Trusty Carpets to best utilize their warehouse
space, along with informed decisions on what they should be ordering. It will
also allow them to merge customer and business information from the cloud
services provided. Customer invoices will be utilized to organize orders and to
allow customers to make simple payments online. The QFloors solution offers
and supports MeasureSquare; a flooring estimation software to help give
customers with a mobile-friendly service and experience (QFloors, n,d).
This SaaS will also offer integrated CRM along with lead tracking to label tasks
such as installation jobs that can be accessed from all aspects of the company.
QFloors solution will be simple to implement and will scale to meet the
expanding demand of Trusty Carpets. QFloors will help meet the business
strategy that Trusty Carpets is looking to follow and will offer customer support
and maintenance.
B.
IT Solution Aligns with Business Strategy
The reasons for applying an IT infrastructure are evident. IT provides cost
reduction, better communication, improvement of financial management,
improvement of public relations, time-saving, and it will help a company to stay
ahead of the competition (Reference, 2019). A business will have a better chance
of expanding their business by using IT to reach a broader market.
Trusty Carpets can add value to a product or service by improving the packaging
or the design to advertise to their customer. They can increase profits by making
purchasing convenience and providing their product or service digitally. IT will
help to find ways to sell higher volumes of products and services to more people
at a lower price. IT increases the speed that you deliver your product or service,
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improving the quality, adding value at every stage of production, increasing the
convenience for your customers, providing better customer service, catering to
changing lifestyles and trends and finding ways to reduce the actual cost (Tracey,
2016)."
At the end of the day, using IT will help a business offer a better-quality product
than its competitors at the same price. IT will also help the internal processes of
Trusty Carpets such as maintaining bookkeeping, warehouse inventory
management and accounting. With this IT solution in place bookkeeping will be
able to automate customer records and invoices to the system to be accessible
from both business locations. Warehouse inventory will be confirmed upon
shipment by the warehouse staff and updates in real time to give an accurate
measurement of current stock. The accountant will be able to access needed
information from the IT system to keep track of Trusty Carpets finances, accounts
payable and payroll of the staff members.
Trusty Carpets established the following objectives for technology to increase
profit margins, reach out to interior decorators, and to move to a more
environmentally conscious business model. QFloors flooring software automates
and tracks inventory, sales, accounting, payroll, ordering, scheduling, job costing,
billing, taxes, and other operations. This solution will allow the sales team to use
the system to place orders and schedule installations for customers. The business
can benefit from the opportunity to get in touch with additional clientele over the
internet in an ongoing domain. Also, by moving to a paperless system, this would
give the sales team more time to focus on selling. In addition, it would speed up
delivery and installation times.
C.
Benefits from IT Solution
1.
Financial Benefits
There are benefits SaaS Technology will bring to Trusty Carpets. The
technology will provide the company with financial gains. Technology is
an investment that provides a positive return over time. SaaS solutions
give the company improved infrastructure and allow operations to run
efficiently.
Technology provides the sales representatives, technicians, and installers
remote access to documents and forms. Technology allows company
personal to download and transmit documents across the internet rather
than using overnight courier away from the store. It makes business
transactions out of the office more efficient.
Trusty Carpets investment in an ERP can produce long term financial
gains. QFloors is an ERP that allows the company to operate efficiently.
The ERP supplies the sales team with easy access to documents for
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acquiring new customers. QFloors provides integrated estimation
software, CRM solutions, and tracks customer leads to increase sales
productivity. The ERP proposal provides accounting, purchase orders, job
cost, sales, and inventory solutions. An ERP allows an organization to
implement Key Performance Indicators (KPIs) for the sales team aligning
with the business goals.
The top goal of an organization is to increase productivity and speed of
booking sales of clients maximize revenue. IT investments have more of
an impact on business profits than advertising. IT investments provide
creativity and innovation that, in turn, increases revenue. Studies have
proven investments in IT spending resulted in as much larger profits for
salespeople. The ERP will improve processes, reduce costs, and support
sales growth in the long run. The financial effect is positive for revenue
and aligns with the business strategy (Mithas, 2012).
2.
Non-Financial Benefits
While the financial benefits of adopting a more robust infrastructure are
well apparent, non-financial benefits present themselves as well, and can
ultimately lead to higher revenue. The following benefits will support
Trusty Carpets non-financial objectives.
Organization - Under the current system, Trusty Carpets is relatively
small, and operations can be handled with little need for an extensive IT
infrastructure. With the acquisition of Metro Carpets, which has no
infrastructure, the need for better organization is apparent. Adopting
software that can meet current and future needs will prove to be beneficial
in terms of organization.
QoS/Customer Satisfaction - One of the many benefits that IT can bring to
small business is the ability to track and manage customer satisfaction and
quality of service, whether it be via online surveys, reviews, and customer
portals that allow customers to have real-time communication with an
organization, helping ensure customer satisfaction.
Employee engagement – With the adaptation of new ERP software, Trusty
Carpets employees will have the ability to easily communicate with each
other, as well as keep the necessary data up to date. This will allow
current and future employees to deliver better customer experience, as
well as enjoy the benefits of increased communication. This would
resolve the issue of centralizing data among the two store locations and the
subcontractor. The most suitable ERP software for Trusty Carpets would
be QFloors ERP software. QFloors would enable Trusty Carpets to
increase profits, improve productivity, create new opportunities for
growth, collaborate on processes and operations, and keep up with
regulatory requirements. QFloors ERP has features such as business
15
management, advanced reporting, to quickly respond to changes, customer
proposals, commercial floor modules, and customer relations management
(QFloors, n,d).
D.
Other Values of Solution
There is added value throughout the company with the use of CRM. Through date
and time-stamp technology, it is not difficult to find and fix issues throughout the
sales process. For example, when Pegasus Airwave implemented CRM, the
practice of finger-pointing blame to other departments or employees when an
issue occurred had nearly vanished (Weinberger, 2004). This greatly improved
morale and employee’s work environments. Through the time-stamp technology,
it was discovered that there was an inability to communicate true, live information
(Weinberger, 2004). The ability to pinpoint precisely where the problem was
assisted in improving the overall processes within the company. Sales personnel
will also gain value and insight through CRM. Through CRM, all pieces of the
sales puzzle are kept in one centralized location. This will give the sales
personnel the ability to see how a customer is billed, how much a customer
ordered, and provide valuable customer information to the salesperson when
performing sales calls.
V.
Alternatives Analysis
This analysis covers the alternatives that are choices the business could decide to use
instead of the proposed solution. Another IT solution is provided that could possibly
solve these issues. In addition, the status quo is provided for a general understanding of
the current system. Process improvements are also discussed that could be used to cut
down on time of tasks. The last part that is included in this section is general feasibility
and a comparison of the four choices.
A.
Business Alternatives Considered
The following are four different options of system solutions that can be
implemented into Trusty Carpets. Aligning with their descriptions, major
benefits, costs, general feasibility, risks, and major defining issues.
1.
Maintaining the Status Quo of the Business
•
Description of the Solution
The status quo for Trusty Carpets will mean all the current risks and
how they would be reduced would not change. This means Trusty
Carpets would implement no additional processes, and no cost would
be associated by continuing the status quo. Trusty Carpets would not
be implementing any new IT infrastructure, new software, continue to
use paper-based records and advertise promotions in their local
16
newspaper. The business will continue to operate under their normal
conditions and the processes they are all familiar with.
•
Major Benefits of the Solution
The benefits of carrying on with the status quo will be that there is no
cost implemented besides the use of the accountant. Business
management will have no changes, and the company, along with its
employees, can continue to work the same business practices they are
familiar with. The option of choosing the status quo will eventually
produce the desired results of opportunity Trusty Carpets wants to
achieve but at a much slower pace. If Trusty Carpets decides to
continue current business operations, its new location with the use of
its warehouse can help increase profit revenue.
•
Major Costs of the Solution
There will be minimal to none for an additional cost with the status
quo besides the service of the accountant. Trusty Carpets will also
have to train the previous employees of Metro Carpets of its current
business operations. Depending on how the Trusty Carpets perform
the integration of both companies will help reduce the cost of
remaining in the status quo of business operations. Trusty Carpets will
also have to find a way to merge customer information during the
merger, which can cost a lot of employee time with paper-based
records.
•
General Feasibility of the Solution
The status quo of Trusty Carpets is feasible but will create confusion
in communication between the employees of the two locations. With
the increased size of employee’s managing from both locations will
prove to be a challenge. Maintaining customer information in both
locations won’t establish a proper customer relationship. Without
proper customer relationship management, it will be harder to reach
out to new customers and help retain their current customer base.
•
Top Three Risks of the Solution
There are several risks involved by continuing with the status quo of
Trusty Carpets, the top three risks that will affect the business are
listed below.
•
Company information will be lacking in several areas from its
current customer information, along with no customer feedback
without a customer relationship management system. Without
17
•
•
•
a proper inventory system, the employees will have to call the
other location to get an inventory count, which can increase the
time needed for current business practices. Customers will not
be able to access company information such as the products
they have to offer online and pay their invoices more
conveniently.
Company operations will struggle in many aspects, such as
communication, sales, and establishing customer relationships
without the implementation of a proper information system
utilizing newer business strategies to support them. Trusty
Carpets will not be able to utilize tools to improve business
operations to improve communications and sales. Without a
proper IT system, Trusty Carpets will not be able to utilize the
online retail aspect they desired fully. Installation scheduling
will also be a difficult aspect between the two locations.
Employees may end up scheduling two installations at the
same time, causing an inconvenience for the installers and
customers.
The financial aspect will also be one of the factors of risk from
the status quo. There are a chance Trusty Carpets will not be
able to reach its profit revenue goal because of poor marketing
strategies between both locations. In order to remain on the
competitive edge of its local competitors, it must operate
efficiently and be convenient for its customer base. With the
current marketing strategy of its local newspaper, it will not be
seen by many new customers. Trusty Carpets will mainly have
only a new customer base from its merger with Metro Carpets
with the cost of maintaining that location. Choosing the status
quo could lead to profit revenues to plain or even decrease,
which could lead to layoffs of some employees.
Major Defining Issues of the Solution
Trusty Carpets could fall behind without initiating a new IT
infrastructure and marketing strategy to help give them the tools to
operate efficiently. Implementing a new IT infrastructure can help
them utilize their website, invoice system, customer relationship
management, installation scheduling, and customer information
database. A new marketing strategy will help reach out to a larger
customer base that will utilize the MeasureSquare technology that
QFloors supplies for the customers. Customers will be able to make
payments more conveniently, and Trusty Carpets will be able to
generate higher profit revenue from these methods. This will also
make business operations smoother for its employees to deliver a more
quality experience for its customers. The status quo could prove to
create a financial strain, communication strain, and information
18
management for Trusty Carpets. Trusty Carpets 12% profit margin
would only increase slightly given its current business strategies
before they start to see a decrease in the years to come.
2.
Proposed Solution for the Business
a. Description of the Proposed Solution
QFloors Software is a user-friendly SaaS designed uniquely for
flooring companies that will provide an ERP solution that is necessary
for the recent expansion and projected growth by enabling Trusty
Carpets to manage and automate technical processes efficiently.
QFloors is committed in its efforts to help flooring suppliers increase
their company’s profitability, productivity, and efficiency by better
organizing their operations and finances (QFloors, n.d.). QFloors
features include customer proposals and invoices, instant job costing,
product catalog/fcB2B, inventory management, fully integrated
accounting, vendor invoicing, and built-in CRM. QFloors is also
cloud compatible with the add-on extension of QCloud.
b. Major Benefits of the Solution
Trusty Carpets currently relies on a basic IT infrastructure that has
provided small businesses with fair success. Aspirations of growth
will require a more advanced IT solution to accommodate the recent
expansion. Acquisition of Metro Carpets will provide the foundation
and space needed to grow, but an advanced IT solution needs to be in
place to support that foundation. Currently, Trusty Carpets inventory
has been limited to overstock, end pieces from installations, and
samples. Metro Carpets is accompanied by a large showroom and
20,000 square foot warehouse, which provides plenty of newly
equipped space to store a larger inventory. By implementing QFloors
software, Trusty Carpets will be able to seamlessly track the ins and
outs of their inventory at both locations. Manual processes such as
storing customer records in hand-written ledgers are a time-consuming
unorganized task. Most importantly, this method will prevent a full
merge of the two companies. QFloors in sync with QCloud will safely
store customer credentials, orders, and invoices that can be readily
accessed from any location where they can access the web. Additional
QCloud features will enable an overview of the company that is
backed up within the cloud eliminating the cost of expensive hardware
and upgrades. Maintaining data within the cloud will also inhibit
risks, such as data loss due to servers in the fault of any man-made or
natural risk.
c. Major Costs of the Solution
19
QFloors Software is offered at an annual cost of $1,400. This will
include initial setup, training, and maintenance for one year. QFloors
offers an optional maintenance plan that is scalable based on its users
that ranges from $60 for one user to $260 for ten users. The
maintenance plan will allow Trusty Carpets to “continue to receive the
following services on an annual basis continued unlimited software
training and support by telephone and remote connection software; all
QFloors software updates; fcB2B and other third-party connectivity,
unlimited attendance to free training seminars; continuing
development and research (QFloors, n.d.). QCloud, which is an addon capability to the QFloors interface, is offered on a monthly basis of
$120. The following represents individual costs broken down.
•
•
•
Initial cost of QFloors Software = $1,400 per user
Optional maintenance plan = ranges from $60-$260 per user
QCloud add-on = $120 per month
d. General Feasibility of the Solution
An objective of QFloors is to implement their software with minimum
downtime, which will allow Trusty Carpets to maintain operationally
and quickly transition within a four-day time frame. Members of
QFloors will provide onsite training and conversion of the new system
following an additional twelve months of unlimited support and
training or ongoing depending if Trusty Carpets opts for the
maintenance plan.
e. Top Three Risks of the Solution
There are several risks involved by implementing the proposed
solution; QFloors Software. The top three risks that will affect the
business are listed below.
•
•
•
Financial QFloors offers a scalable software. Based on the number
of users and additional services provided, the cost can fluctuate
and increase.
Training QFloors offers four-day onsite training. Unlimited
training is offered for free after initial purchase but remotely
limited. Additional training is offered after twelve months but
requires the paid subscription of the maintenance plan.
Availability QFloors requires a network connection. Under the
condition of networking services, going down a business
continuity plan should be in place.
f. Major Defining Issues of the Solution
20
The implementation of QFloors will provide Trusty Carpets an ERP
solution that will eliminate timely and costly processes. QFloors is
scalable, enabling it to grow with the business. QCloud offers a webbased solution that is cost-efficient by removing the need for extensive
hardware and maintenance.
3.
Alternative IT Solution
a. Description of the Proposed Solution
Although a cloud solution may be the most pragmatic way forward,
offering an alternative can help Trusty Carpets evaluate and weigh the
pros and cons of contrasting solutions, ultimately enabling them to
make the best decision. A realistic alternative would be creating an inhouse IT solution that would be installed, configured, and managed
on-site. This solution would require the purchase and maintenance of
storage, networking, and end-user devices. This equipment would be
fully owned by Trusty Carpets, and therefore their responsibility to
ensure its proper operation.
b. Major Benefits of the Solution
Because Trusty Carpets has an abundance of unused space with the
recent acquisition of Metro Carpets, adequate space is available to
install an in-house IT solution that will have the option and space for
growth as the business grows. This could potentially save Trusty
Carpets earned revenue by not requiring the need for additional space.
Another benefit of an in-house IT system is the ability to implement a
higher level of security, rather than a cloud solution. The level of
security that would be implemented would be determined by key
stakeholders, this being a benefit in itself, versus an already
determined level of security provided by a cloud solution.
Additionally, the physical aspect of security could be increased as
well, depending on the investment that is willing to be made.
Possibly the most evident benefit would be the ability to have
immediate on-site service that can give Trusty Carpets undivided
support by a technician who is intimate with the in-house system. An
on-site technician gives a business advantage over a cloud-based
system in that they are not just considered another customer, but the
sole reason for one’s employment. This benefit can be crucial, should
an IT emergency arise (Rossi, 2016).
c. Major Costs of the Solution
21
The following represents the individual cost of the alternative IT
solution broken down.
•
Storage $10,000
To store company data such as customer and financial information,
a commercial server will need to be installed onsite. The cost of
the equipment will include a 5-10 terabyte server, installation, and
configuration. This will be a one-time cost.
•
Wireless Connection $500 x2
For an on-site connection, a commercial wireless router will be
installed at both locations that will allow employees to connect to
the local server, as well as the outside internet.
•
Data Connection $150 x2
Each location will have a business-grade internet connection that
will be used by all employees that will be working on location.
This will be a monthly cost.
•
Cellular Service $300
A cellular plan will need to be implemented to support an off-site
connection for sales and installation teams. This will be a monthly
fee.
•
Business Tablets $500 x6
Mobile tablets will need to be purchased for sales and management
personnel. These will be the main tool employees will use for
communication and data entry/query.
•
Trained Personnel $50k
Although one employee has some IT knowledge, and is working to
gain more, at least one highly qualified IT professional will need to
be contracted or directly hired to support the initial configuration
and maintenance. Ideally, this position would not need to be
permanent, as another current employee could learn the system.
•
Software (including security suite) $500 annual
Business software that includes security will need to be purchased
that can handle the current and future needs of the business. This
22
will include accounting, invoicing, inventory, VR software for
sales, as well as a website that can also be used for marketing.
d. General Feasibility of the Solution
Although this solution is certainly a possibility, and has been used by
many businesses, it is not likely. Trusty Carpets are still a fairly small
business, and solutions like this one are usually used by much larger
corporations that have plentiful resources, including cash. The upfront
cost of this solution is impractical and could possibly break the
business financially. Additionally, the risk of running an in-house IT
system is high and volatile for a growing business.
e. Top Three Risks of the Solution
There are several risks involved by implementing an alternative IT
solution. The top three risks that will affect the business are listed
below.
•
Hiring an unskilled employee
When hiring personnel to manage IT systems, a business always
runs the risk of the employee’s knowledge not being sufficient for
the desired task. Inadequate IT support could potentially destroy
the business or create a loss of investment, at the very least.
•
Equipment Failure
Because the equipment that will be used will be owned by Trusty
Carpets, they will be responsible for the upkeep and operation.
Equipment failure could cost tens of thousands of dollars as well as
business downtime. This could also create a single point of failure,
depending on the level of redundancy, which will be more
expensive.
•
A negative return on investment
When investing such a substantial amount of money into an area of
business, the risk of a negative return is always present. This could
potentially bankrupt business as small as Trusty Carpets.
f. Major Defining Issues of the Solution
While an in-house solution is possible, it is not likely. The initial
investment, as well as the cost of maintenance, may be considered too
high for a business the size of Trusty Carpets. Additionally, the risk
23
would be too high in such a crucial time in terms of expansion.
Implementing a cloud solution would be much more cost-effective and
would transfer some of the risk associated with an IT system to a third
party.
4.
Improving the Business Processes
a. Description of the Solution
Improving processes is the idea of streamlining business processes,
improving workflow, and assessing each area of operation from top to
bottom for areas of improvement (Leonard, 2017). Otherwise often
referred to as business process reengineering (BPR). Streamlining
processes for Trusty Carpets would mean simplifying tasks such as
contacting installation teams once the carpet has been purchased from
a retail location. The first step of the BPR would be to identify the
requirements and then to compare them with the current processes and
business flows. Trusty Carpets would then be to decide what
processes are important in the carpet industry and what processes
could be removed. The last option for improving the workflow
through process improvement include removing bottlenecks and
handing off unnecessary tasks.
b. Major Benefits of the Solution
Benefits of improving processes are a result of increasing the
efficiency of business tasks within an organization. This efficiency is
achieved through regulating processes that employees use every day.
It is accomplished by saving time spent on tasks, allowing teams to
collaborate, and being able to accomplish more work with less
distraction. All of this adds to the bottom line of the company by
providing an opportunity for more work to be accomplished without
time being spent on repetitive tasks.
c. Major Costs of the Solution
The major costs of improving processes come from the purchases of
systems to track inventory, equipment that is needed for sales teams,
and funds that will be needed to hand off tasks to an outside party.
Inventory management would be one of the primary concerns for
automating repetitive tasks. Implementing a system to handle this
would be a cost that may not be needed. Another issue that was
highlighted earlier is a term called bottlenecking. One example of this
at Trusty Carpets is the need for sales teams to travel to customer's
houses to take measurements. This would improve the carpet sales,
but it would include costs such as company vehicles, measurement
24
tools, and training for sales personnel. Another cost would be handing
off tasks such as marketing, which is currently done through the local
paper. There are much better options than using just the local paper
for advertising, but they will cost to implement them.
d. General Feasibility of the Solution
Deciding the feasibility of improving processes involves determining
possibilities of the several solutions that are available. Some of the
solutions to improving business processes are much more easily
accomplished than others. Also, some of the solutions are much more
costly than others. However, there are tasks that could be simply
improved without using too many resources. The problem is that there
are several processes that will already be improved by using ERP
software. So, while some of the processes are feasible to improve,
there are other options that could be considered.
e. Top Three Risks of the Solution
The top three risks that relate to improved processes related to waste of
resources. Specifically, the resources of time management and funds
that could be spent in others that would generate higher returns.
•
•
•
The first risk is money being spent on advertising that does not end
up gaining any new customers.
The second risk would be using funds to acquire equipment to
make sales at homes of customers. This could make more profits
for the carpet business, but it could also be a failure to produce any
extra income.
The last concern would be spending the funding on an inventory
management system that does not simplify the task proficiently.
Maybe the paper receipts are not that large of a concern for the
business.
f. Major Defining Issues of the Solution
Considerations that should be made about improving processes stem
from the numerous avenues that can be taken to accomplish this feat.
In addition, they all have their own individual costs, benefits, and risks
that are associated with each task improvement. A potential concern
for the current business is that Trusty Carpets is looking to centralize
operations. By placing some of these tasks outside the organization, it
may further the decentralization of the business. These are all viable
concerns that point to the ERP solution being a better solution for the
direction the business is looking to go.
25
B.
Comparison of Alternative Solutions Table
Below is an overview of the four alternative solutions and their aligning positive
and negative aspects.
Comparison of Alternatives
Name of Alternative
Positive Aspects
Negative Aspects
Status Quo
No associated cost will be
implemented, and employees will
be familiar with current business
operations.
Communication of employees and
customers will be lacking, creating
a strain. Profit margins will only
see a minimal increase, and the
business will not grow as the
opportunity Trusty Carpets seeks to
accomplish.
Proposed Solution
Automation of manual processes,
quick transition time, scalable
and customizable, offers cloud
support.
Price can increase based on
expansion; limited onsite training
requires network services to
operate.
Alternative Solution
Increased security, improved IT
service and support, and already
allocated space being sufficiently
used.
Higher initial and reoccurring cost,
employing unskilled technicians
and receiving a possible negative
return on the initial investment.
Improved Processes
Increased efficiency as a direct
result of automating tasks,
handing off unnecessary tasks,
and removing processes that slow
the operations down.
Potential negatives of improving
processes include high costs for a
few of the solutions, minimal return
on investment, and automating
tasks that will already be
accomplished by an ERP.
Analyses of Individual Alternatives
26
C.
Justification of Proposed System
Trusty Carpets objective is to continue to increase its profits margins, while
keeping up with the competition. With the implementations of QFloors software,
Trusty Carpets will be able to effectively manage how they conduct businesses
both internally and externally. The QFloors suite offers more flexibility and
allows the staff instant access to the organization’s information. The QFloors
solution lowers operating and material costs, while still giving the customer
satisfaction of easier third party integration, enhanced security, and redundancy
(QFloors, n.d.).
QFloors software solution is an ERP resource. With Trusty Carpets merging with
Metro Carpets as well as the carpet installation business, it will need a system that
can combine all three business aspects to effectively manage internal and external
business resources. Trusty Carpets expansion has not only led to an expansion in
business profits, but also an expansion within the geographical region as well.
QFloors software allows Trusty Carpets to use the same system across the
geographical expansion. That alone is valuable to the operations of Trusty
Carpets because it provides each of the staff members as well as the proprietor
with a real time update of everything stored within the company’s business
processes.
VI.
Feasibility Analysis
This section considers additional information about the feasibility of a solution. In the
previous section was only the general feasibility. In this part, is included financial,
organizational, and technical feasibility. Its purpose is to add to the idea that a potential
solution is feasible for Trusty Carpets.
A.
Economic/Financial Feasibility
▪
▪
After looking at the current status of the business, it is worth noting that
various challenges can limit the abilities of the entity to achieve maximum
benefits. For instance, the business today operates in an environment
comprising multiple players and rivals. The force presented by rivals in
the industry is increasing each day (Gupta, 2013). For instance,
competitors have adopted measures to guarantee the efficient delivery of
services. Also, rivals have adopted ways of delivering alternative
products, which may, in the long run, see the business as non-competitive,
out of operations.
The financial analysis of the proposed IT solution shows that the primary
entity has been profitable for years. The second and target entity has a net
income of about $360000 each year. Combining the operations of the two
entities will form a foundation for efficient exploitation of the existing
business opportunities in the industry. With the implementation of the
proposed IT solution, it is essential to note that the benefits which the
solution offers surpass the investment costs. The resulting company can
27
▪
B.
manage the costs of implementation of the solution. The cost of
implementation will include purchase, training, and installation, among
other related tasks. The ability to make profits by the two entities forms a
foundation for the use of Trusty Carpets equity in the purchase and
implementation of the proposed solution. Time to recover implementation
costs and reap profits.
One of the main objectives of the resulting organization is to make profits.
However, to make profits, the organization will need to guarantee
efficiency and the ability to maximize on the available opportunities in the
industry. The initial costs associated with the implementation of the
proposed solution is high. This conclusion is based on the idea that the
company will need to install new IT architectural systems. Furthermore,
the business will need to train the employees based on the proposed
solution. These activities will cost the company a lot. However, after the
implementation of the solution, the company will reap benefits such as
increased insight into a bigger market. Also, the business will reduce
advertising costs since it will utilize online platforms that are more
effective. Assuming that the total time for the implementation of the
proposed solution is the first six months, the business will make profits
after the next six months. The reason for this conclusion is that the
resulting entity will have a combined net income amounting to about
$460000 each year.
Organizational/Operational Feasibility
As explained in previous sections, Trusty Carpets was facing limitations with the
lack of updated information systems integrations in the internal operating systems
in the business. The business wanted to improve sales and marketing, business
processes to work efficiently and have product availability that can satisfice
customer demands. The business is considering new processes that could increase
the company profits, improve production efficiencies and inventory control, with
adequate planning, cost, definition, and recommendations for this project.
The proposed solutions are feasible, as it will increase revenue, satisfice the high
demand of the business products and services offered at Trusty Carpets. The
investment costs of the proposed solutions will have, in return, the double amount
of investment back to the business. The outcomes of this project implementation
will provide the high business revenue, better financial management in the
business departments, and have excellent customer relationship management.
One of the proposed solutions for Trusty Carpets is taking advantage of SaaS or a
Cloud-based system. SaaS has been used in most small businesses and
organizations and brings applications, management software, customer
relationship management (CRM), among other services. The CRM tool will help
build profitable relationships business-customer and can support the complex
needs of the business, like segmented database, and create targeted
28
communications. This transition of recurring to a new software platform SaaS
will be a great investment for the business.
The proposed system solutions can be easily integrated into existing business
processes. For instance, the Point of Sale (POS) System is an inventory software
program that will benefit Trusty Carpets on tracking the sales, monitor changes,
calculate when it is time to reorder products, and analyze inventory levels on an
item. The point-of-sale software system (POS) records each sale when it is
processed; at the same time, the inventory records are up to date. The gathered
information about the products that are sold allows management to make better
decisions about ordering and merchandising (The Entrepreneur, 2017).
The major benefits of implementing this solution are that it will allow the
business to organize and manage the inventory and sales, ordering merchandising,
manage the assets, and business operations. The solutions are scalable, meaning
that they will allow the business to expand in the future. The proposed solutions
will address the current business problems identified in the problem analysis,
addressing the problems, and allowing modernizing the marketing section. This
will result in profits increase and facilitate management to integrate both
locations.
The proposed strategies will allow Trusty Carpets to gain profits from sales by
modernizing its marketing campaign and establishing new retails in reaching out
to the customer demands in flooring products. Implementing the solutions will
generate revenue to the business through marketing, inventory management,
customer relationship management, sales tracking, and monitoring of products.
The solutions will support the business in the current and additional business
locations. Staffing will not be reduced, and it will not impact the organization.
This is due that the proposed solutions that will meet the business requirements
and objectives by increasing staff efficiency in different areas of the business,
including in management. This will result in increased revenue in both locations,
by operating the business on top of other business competitors. In the operational
section, the proposed solutions will satisfy the growing customer demands in the
products.
At this moment, no additional staffing is required, but Trusty Carpets is planning
to open other locations, and this might require additional staff to manage the
business as decided by Trusty Carpets management. When it comes to ERP
system implementation, cloud-based software typically offers the most costefficient strategy for small businesses. Cloud-based ERP implementation usually
requires fewer resources and personnel to manage the systems. A positive
opportunity is that cloud-based technology offers improved scalability to the
business.
The solutions and retraining are feasible, as it will allow the current small staff at
Trusty Carpets being capable of manage two locations simultaneously while
29
providing a customer satisfaction level that is consistent with what is already
associated with the vision, objectives, and goals. The proposed solution
implementations will be given in the following steps
•
•
•
•
•
•
•
Acquire software with all the business processes requirements, as stated.
Software installation, test network security, apply updates, etc.
Inform and provide training to Trusty Carpets staff of the new information
systems that will help more efficiently the business concerning customer
relationships, management, marketing, etc.
Provide training according to the respective duties and responsibilities of
staff at Trusty Carpets, as well as training management as the main
administrator and procedures in the system as the main holders in the
account management.
Perform data conversion in the system; inform employees and
management of the necessary steps for a smooth transition of the new
information systems applications, and security.
Perform and provide a final report in the implementation of the new IT
solution for Trusty Carpets.
Finally, test the new implementations, testing system, and data files, and
make sure backup has been processed correctly (SaaS, 2017).
Retraining is feasible, as the implementation methodology will ensure a quick and
smooth transition for the business and employees. The advantage of using
networking services in a Cloud environment increases the business power and
access to the applications. Proper training will be given to employees at Trusty
Carpets in regards of the new information systems, in procedures such as updating
customer information, inventory, etc. Proper training on how to access the
administrative portal on the software as the main administrator, access to
accounting data, access to payroll, as well security training will be given to staff
and management of Trusty Carpets. Overall, there will be basic training in the
new systems software, such as browsing the web, main page menu, sub-menu, a
booklet of frequently asked questions, troubleshooting guides, etc.
Data migration will be smooth and will efficiently service customer orders, or
installations requests, current services, and prices. The data migration transition
will backup data at incremental times and help with customer support when it is
needed. The proposed software solutions for Trusty Carpets will be performing
an update of the system patches to provide security to business transactions.
The system's applications will allow easy upgrades, maintenance, inputs, and
outputs, and processes will be tested continually to maximize the flexibility of the
system. Also, the software vendor will maintain the payroll management and
accounting system in the software by updating and applying necessary patches,
this will assure sensitive data, and customers.
30
C.
Technical Feasibility
Technical Feasibility will assess the architecture and design of this IT solution.
The proposed software QFloors appears to be a good fit for Trusty Carpets. One
of the first considerations is the software easy to use, and QFloors is easy to use.
Even if the software solution has all the features the company needs, if it isn’t
easy to use it creates a problem. It is important for the company to consider the
cost and time savings.
Flooring executives suggest companies should examine if the software is
expansive with the fcB2B initiative. The software should provide different
pathways of automation, such as credit card processing, barcoding, electronic
document storage, cloud-based access and data storage for 24/7 access from all
devices connected to the Internet. Team Delta has confirmed QFloors after
evaluating the software solution is expansive with the fcB2B initiative.
Floor Covering Business to Business (fcB2B) is a major advocate for the
continual development and adoption of a standard language allowing software
management systems utilized in the flooring industry to communicate smoothly
with each other. Companies should determine whether a software company is
interested in expanding its features. Team Delta has determined QFloors is a
software company working on expanding features that will align with the business
goals of Trusty Carpets. Trusty Carpets follows standards set for flooring
companies electronically serving the industry. Trusty Carpets complies with
fcB2B standard specifications defining an accepted method of data interaction
between trading partners. The standard is intended to facilitate a mutual starting
point for manufacturers and their customers to establish electronic data
communications (fcb2b, 2019).
The first step Trusty Carpets performed was an inventory of the computer
hardware. Trusty Carpets computer infrastructure is not large. The next step was
to estimate the current and projected workload of the system. The company
determined QFloors has the capability to manage current and future workloads.
The company checked the time required for average transactions, the total volume
processing power of the system, and the memory size provided. After evaluation,
Team Delta has determined QFloors passed all the requirements. QFloors meets
Trusty Carpets current requirements and is scalable to meet future growth for the
years to come.
VII.
Requirements Checklist for the Proposed System
This section demonstrates the types of requirements that should satisfy a strong solution.
These requirements are assembled into four categories with five requirements per
category. These requirements are functional, data, technical and security which make up
the basis for identifying a technical solution that will benefit Trusty Carpets.
31
A.
Functional Requirements
Functional requirements define product features that provide a diverse set of
functionalities, such as processing, automating, or calculating data that enable
users to accomplish their objectives. These requirements will specify the
necessities of what a system or solution must be capable of providing for Trusty
Carpets. Below are five essential functional requirements for the proposed system
QFloors:
•
•
•
•
•
B.
The solution must provide a unified system amongst all operations of
Trusty Carpet.
The solution must automate current manual accounting processes such as
invoices, payroll, accounts receivable, and accounts payable.
The solution must provide a secure database for all of Trusty Carpets data
that can be readily accessed via the cloud.
The solution must be able to track and manage inventory.
The solution must be capable of handling multiple user access remotely
and onsite from multiple locations.
Data Requirements
Data requirements are used to define what data will be needed for a system, how
and who will put it in, as well as what data will be output after being processed by
the system.
•
•
•
•
•
Inventory management: The user inputs inventory data upon purchase so
that the software automates inventory management by providing data on
the amount of inventory owned, and the amounts in both stores, and their
status, whether on hold, returned, rejected, or damaged.
Customer data: The users are required to input customer data - name and
address - into a customer database upon purchase, integrating customer
information for both carpet outlets.
Online invoices: Customers are required to input a working email and
credit card data for online payment options when making online purchases
and receive electronic invoices and receipts when a successful order is
made.
Accounting: The user is prompted to input any sale or business expenses
such as payroll to the system for automatic generation of sale receipts and
auto-management of the business accounts in both stores hence saving on
an accountant.
Customer Relationship Management: Sales data is integrated with
installation schedules and any other after sale services for sales
productivity with sales expected to grow from acquisition of the second
outlet.
32
C.
Technical Requirements
Somewhat similar to functional requirements, but more in-depth, technical
requirements are used to outline what physical equipment will be used, as well as
its capability in terms of hardware and software. These requirements can be
referred to when looking for requirements for current systems, as well as future
systems, if this proposal is chosen.
•
•
•
•
•
D.
The system must support Windows 7, 8, 10, Window Server 2008 and 2012.
The system must run on 32-bit and 64-bit systems.
The system must be compatible with existing software and scalable .
The system shall provide a website for customers to access information
from the business.
The system must include Customer Relationship Management software.
Security Requirements
The basis of a security requirement is to state a feature that is required by the
system regarding its security. A system must have these in order to define the
trust a user needs to have in the system. In most cases the security requirement
falls underneath the non-functional requirements. Below are the security
requirements that are necessary to be modelled for the system that is to be
installed.
•
•
•
•
•
All data stored online shall be encrypted and kept in secure storage
servers.
Services made available to remote users shall be limited to email, file
transfer, ERP, and cloud access.
Unauthorized activity on all devices shall be monitored, recorded, and
reported.
Transactional data must be only transmitted in encrypted format.
The system shall provide password protection for access to webpages that
are used only by employees.
VIII. System Users Context Diagram
To get a better understanding of how the proposed solution will work, a context diagram
has been created and placed in Appendix A that will show how users will interact with
the system, and how data will flow. Because the new system will cover such a broad
range of business processes such as accounting and invoicing, there are several moving
parts. This diagram can give in-depth insight into what data will be entered into the
system, where it goes, and what output will be shown. Users can reference this diagram
to clear up any confusion regarding the system, as well as update as the system develops.
33
IX.
Project Management
A.
Aspects of the project to be managed
1.
Project Scope
2.
Time/Schedule
As a part of project management, the schedule and time will be handled by
the designated project manager. To create a schedule the goals, objectives,
scope, and limitations must be already defined. Once this has been
completed it is time to define the activities and sequence them in the
proper order. The next logical step would be to estimate the resources
needed for each task and estimate the amount of time it may take to
complete each task. If an ERP is selected as the solution, it will take about
2 to 3 months for the project to be completed. The schedule begins with
the first step being research of requirements and analysis. This would lead
to the next steps of the SDLC being system design, implementation,
testing, deployment, training, and maintenance. In the case of an ERP
solution, the design and implementation phases will be much shorter than
a custom-built system. Leading to a much shorter schedule overall.
3.
Cost
With a recent merger, and plan for business expansion, Trusty Carpets is
in somewhat of a fragile state in terms of finances. The potential and
opportunity for growth is certainly present however, properly allocating
the limited funds available is crucial to the success of Trusty Carpets. To
ensure the projected cost of the proposed IT solution stays within the
limits specified, estimating techniques will be utilized that can keep
stakeholders content, as well as aware of project costs.
•
Plan Cost Management
This portion will describe how a budget will be established, how
changes will be handled, and how certain controls will be used.
•
Cost Estimates
Estimates of costs will be determined by accounting for resources,
labor, materials, and any other areas that will be included in the
project.
•
Determine Budget
All estimates will be combined to come up with an overall budget and
a final number for cost.
34
•
Control Costs
To keep track of control costs, an earned value analysis will be
performed at determined intervals, to ensure costs are on track, and to
avoid going over budget and minimize scope creep (Hartney, 2016).
4.
Quality
5.
Communications
6.
Stakeholders
B.
List of project team members by role.
C.
Major Task Project Schedule
The following task listed below are all major task that need to be completed for
the IT solution implementation to become successful. This plan covers
relationships with new home builders, interior design community and installing
services and software to business locations. Some task can overlap others to
ensure the project is finished before the deadline Team Delta has provided. Team
Delta has estimated these tasks will take no longer than 8 months to complete. If
all implementations don’t exceed their duration estimation Trusty Carpets should
be ahead of schedule on the estimation.
Task
Duration
Leader
Participants
Schedule to have an
2 weeks
internet service
provider (ISP) install
their services at Metro
Carpets.
Project Manager
Team Delta and
business operator.
Evaluate and obtain
2 weeks
QFloors ERP software
to be installed for
users.
Project Manager
Team Delta and
business owner.
Creating relationships 3 weeks
with new home
builders.
Business Operator
Team Delta,
installation team and
sales.
35
Set up company user
accounts for QFloors
ERP service.
1 week
Assistant Project
Manager
Team Delta, sales,
warehouse staff,
bookkeeping,
accountant and
business operator.
Merge Trusty Carpets 1 Month
and Metro Carpets
sensitive information
on QCloud Services.
Project Manager
Team Delta, business
owner, sales,
accountant and
bookkeeping.
Researching and
obtaining domain for
companies’ website.
2 weeks
Project Manager
Team Delta,
Research and find
custom website
designer.
2 weeks
Project Manager
Team Delta,
Reach out to the
interior design
community for inhome sales.
2 weeks
Business Operator
Team Delta, sales and
business operator.
Security software and
other software
installations.
1 week
Project Manager
Team Delta,
Warehouse
1 week
organization to store
to be recycled carpets.
Business Operator
Team Delta and
warehouse staff.
Testing the
1 week
implementations such
as the website
capabilities.
Project Manager
Team Delta, Sales and
business operator.
Any updating or
maintenance for IT
solution hardware.
Assistant Project
Manager
Team Delta.
QFloors administrator 4 days
training
QFloors
Team Delta and
business operator.
QFloors user training. 4 days
QFloors
Team Delta, sales,
warehouse staff,
bookkeeping,
installation team and
accountant.
3 days
36
Full scale testing of
2 weeks
the network
environment and ERP
solution.
Project Manager
Team Delta, business
operator, sales,
warehouse staff,
bookkeeping,
installation team and
accountant.
Project Completed
Project Manager
Team Delta and
business operator.
X.
1 day
Acquisition Strategy
A. Scope of what to buy:
1. Buy as a product or service? (some items may be purchased and others may be
acquired as a service)
2. Commercial-off-the-shelf (including open source) or custom?
3. Will in-house staff or external contractors support custom development,
integration, or sustainment?
B. What infrastructure will need to be acquired?
1. Will system hosting services be needed?
2. How will connectivity be made available?
Connectivity will be made available for both businesses through an ISP such as
Verizon or Comcast. All local ISPs will be under consideration under the
evaluation of monthly cost with the speed and services provided. This will ensure
the both businesses will be able to connect to QCloud services and receive online
orders. In-home sales will require Trusty Carpets to obtain a cellular data plan for
their tablet devices. Cellular providers such as Verizon or AT&T depending on
the cost and data limit per month.
3. What security considerations should be included in the contracts? Will any
specific hardware or software need to be acquired to provide security?
•
Security Software
A premium antivirus and antimalware package will be used to secure
all of the devices at Trusty Carpets. Considering the number of devices
that are being used by the business, a package deal that includes for 10
devices will need to be used. A variety of plans are available from
reputable brands such as Symantec, Avast, MacAfee for around the
same price and have the same features. It will be worthwhile to take an
upgraded package that also includes for ransomware and spyware.
37
Also, all of these antivirus programs can be used on Windows and
Mobile platforms.
•
Security Hardware
The relevant hardware to security is a part of the networking. This
being the firewalls and network intrusion devices. With them being
installed at each location. Another component of the security hardware
will be the routers. Considering that most routers today come with
Wireless Encryption (WEP) and Wi-Fi Protected Access (WPA).
4. Will Business Continuity requirements need to be included in the contract(s)?
Will separate Business Continuity solutions or components need to be acquired?
Because the amount of data and services will drastically increase under the
proposed solution, Business Continuity requirements will be essential in initial
contracts to ensure continuity in such a fragile stage. One of the major benefits of
choosing a cloud-based solution is the ability to transfer risk. Included in the
contract will be a cloud backup addition that ensures access to all services and
data will be managed by Qfloors. This part of the contract can be included in the
initial acquisition and purchase price.
5. Are there any data management considerations to be included in the
acquisition(s)?
C. What type of contract(s) should be used?
References
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https//fcnews.net/
Blasingame, J. (2017). How "The Cloud" Can Empower Your Small Business. Retrieved from
https//www.forbes.com
fcb2b. (2019). fcB2B Standard fcb2b. Retrieved from fcb2b.org http//www.fcb2b.org/
Fdic.gov. (n.d.). Compliance Management Systems (CMS). [online] Available at
https//www.fdic.gov [Accessed 23 October 2019].
Forbes. (2016, June 1). Forbes. Retrieved from Forbes https//www.forbes.com
Global Carpet Tile Market (by Segment and Region) Industry Analysis and Outlook (2016-2020)
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http//www.orbisresearch.com
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Hamel, G. (2016, October 26). Online Advertising vs. Print Advertisements. Retrieved from
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Leonard, K. (2017, September 11). How to streamline work process and improve workflow.
Retrieved from https//smallbusiness.chron.com
Mithas, S. (2012, March 20). Digital IT Strategy MITSloan. Retrieved from MITSloan
https//sloanreview.mit.edu
QFloors. (n.d.). The Best Flooring Software for Flooring Dealers. Retrieved October 23, 2019,
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QFloors. (n.d.). QCloud. Retrieved October 31, 2019, from
https//qfloors.com
QFloors. (n.d.). User-Friendly Floor Covering Software. Retrieved October 31, 2019, from
https//qfloors.com
Sullivan, D. (2019, 7, 10). Carpets & Flooring thespruce. Retrieved from thespruce
https//www.thespruce.com
The Damaging after-effects of a data breach. (2019). Retrieved from
https//www.itgovernance.co.uk
W3computing. (2019). Technical Feasibility W3computing. Retrieved from W3computing.com
https//www.w3computing.com
Weinberger, J. (2004). CRM Supports Internal Customers Too. CRM Magazine, 8(8), 48-49.
WFCA. (2019). World Floor Covering Association WFCA. Retrieved from WFCA
https//wfca.org
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WorkWise Software. (2019, August 29). Benefits of ERP - Top 15 Advantages of ERP
SoftwareWorkWise. Retrieved from https//www.workwisellc.com
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39
40
Appendices
Appendix A
Accounts
Payable
Orders
Owner and Office
Management
Customer
Payments
Overall
Payment
Reports
Inventory
Orders
Carpet Distribution
Companies
Accountant
QFloors ERP
Accounts
Receivable
Reports
Banking
Booked
Orders
Customer
Receipts
Installation Team
The Internet
Customer
Information
Inventory
Information
Inventory
Reports
Bookkeeping
Sales Team
Warehouse Staff
Trusty Carpets ERP Context Diagram
System User Context Diagram
41
Appendix B
42
Trusty Carpets
Background: Jerry Montgomery has been selling carpets for 20 years from his
store, Trusty Carpets, which is located in a strip mall that, over the past few years,
has become a busy shopping center. The location is in what had been a quiet town
near a large city, but recent area growth has resulted in many new homes being built
and the town council has started to consider ordinances to create zones to protect
unique architecture, improve overall property condition, and protect the
environment. Their focus is on creating an up-scale community attracting “clean”
businesses to improve the quality of life and its tax base.
The current business model: Since he opened his Trusty Carpets store, Jerry has
advertised in the local paper and done all of his business in his showroom where he
has carpet samples on display. Jerry employs two sales people to serve customers
in the store. One is his daughter Ann who he would like to take over the business
when he retires. Since he has little storage space, Jerry’s inventory has been limited
to overstock, end pieces from installations, and samples. When a customer makes a
selection from the samples, the salesman checks the manufacturer's information to
determine the availability of the selected carpet and the current price. Jerry’s
brother-in-law, Mike Baker, has a carpet installation business and has been subcontracting the installation of the carpets sold by Trusty Carpets. The sales staff
coordinates installation with the customer and with Mike.
Jerry employs an accountant (who has other customers and does his work at his own
office) to keep track of his finances, pay bills, send invoices, collect payment and do
payroll. Jerry's finances are very straight-forward, and he uses the accountant only
because he does not like to do the paperwork.
Jerry’s company sells about 250,000 square feet of carpet a year (70% of it is midgrade carpet and padding) for sales of about $1.2 million. This results in a net profit
of about $100,000. His current costs are in line with industry averages but his profits
are below the averages. He attributes this to the fact that he keeps his prices low to
be more competitive and grow his business.
Technology support: The Trusty Carpets store has a basic information technology
(IT) infrastructure with an internet connection. There is a computer with a multipurpose printer (scanner/fax/printer) in Jerry's office. It is connected to a router
supplied by the Internet Service Provider. The router also provides a wireless
network within the store, and the 2 salesmen have tablet computers that they use to
check carpet availability and price, and to enter and check orders. Order forms are
simple Google document forms that are stored in the Google cloud and are shared
among the employees and with the installer and the accountant. Jerry and his
salesmen each have a Gmail account. One of the salesmen, Ben (who has been with
Jerry 6 years), is studying IT at the community college. He set up the current
technology in the store just six months ago. Jerry expects Ben to learn about any
new technology that gets installed and help solve minor in-store IT problems.
Rev 6 8/20/2018
1
Recent changes: Jerry has been quite successful and has recently acquired Metro
Carpets, a store on the other side of town. Metro Carpets has a large showroom and
an adjoining 20,000 square foot warehouse. The showroom contains two room
displays, one a living room with their top line carpet and one a family room with midline carpet. The remaining display space is for samples and remnants, including a
small area for closeouts. The warehouse is about 50% utilized. It contains rolls of the
top line carpet in a wide range of popular colors for immediate installation. Although
it is a relatively large business, the previous owner was not well organized, had no
information technology at the store, and kept all of his customer records and carpet
inventory in hand-written ledgers. Jerry plans to retain the three sales staff and two
warehouse people at Metro, and he wants to continue to expand sales in his original
store. Metro generates about $3 million in annual sales at a 12% profit. Costs are in
line with industry averages. Carpet sold at Metro breaks down as follows: 10%
bottom grade, 50% mid-grade and 40% top-of-the-line.
In addition, Jerry and Mike (the installer) have decided to combine their businesses
into one carpet sales and installation business. They will do this after they have
reviewed the impact of an EPA initiative, the WARM Program, to improve the rate of
carpet recycling to lower greenhouse gas emissions. A description of the WARM
Program is posted with the Case Study under Course Resources. Jerry feels
recycling is important and wants to be able to make the appropriate business
accommodations. Mike runs his business out of his home since all of the work is done
in customers’ homes. He has two installation teams (2 people each) and installation
equipment is stored in the trucks. Mike expects to increase the number of installation
teams since Jerry acquired Metro Carpets. Mike’s wife Carol handles the
bookkeeping, and while all of their work is paper-based, they are well organized. He
earns about $1.50/square foot for his services.
The opportunities: With the expansion of his business, Jerry needs a way to be
able to manage the two separate locations and the installation operation as one
business. He is also looking at ways to increase his business through internet sales,
establishing relationships with new home builders, and in-home sales where he
believes that he could reach more customers if his salespeople could go to
customers’ homes, take measurements and obtain orders. Jerry’s daughter Ann is
studying interior decorating in college and he wants to reach out to the interior
decorating community to expand sales as well. Additionally, Jerry wants to be
environmentally responsible. To do this he will need to allocate warehouse space to
accommodate recyclable carpet. The installers would bring the used carpet to the
warehouse, and the carpet would then be picked up by a recycler monthly at no cost.
How your team will help: Jerry's primary business objective is to continue to
increase his profit margins, and he believes appropriate technology can help with
managing his expanding business. He has hired your team to evaluate his needs
and recommend which technologies he should acquire and to develop the Business
Case for those you recommend. He will use the Business Case to decide whether he
should invest in the technology solution your team is proposing. Through the
Business Case, your team must convince Jerry that you have a well thought-out plan
that meets his objectives and has the potential of increasing sales and profitability;
your objective is to get Jerry to hire your team to develop and implement the
solution you are proposing.
The assignment: Your team is to develop and explain a proposed technology
solution for Jerry's business. You will come up with some specific business
Rev 6 8/20/2018
2
objectives that could be supported by technology solutions, and then identify some
IT solutions that could benefit Jerry’s carpet business. As a team, you will decide
which technology or combination of technologies would benefit his business the most
and should be implemented first. Your team will develop a Business Case to explain
the solution and how it would be implemented.
The Business Case must be well written and be able to be understood b...
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