XIV. Performance Measures The purpose of this section is to let the decision-makers know how they can determine whether they are receiving the expected benefits from the system, beyond whether they are receiving the return on investment, as calculated in Section VIII. If the system proposed in the business case is approved and implemented, the organization will, at some point, need to assess whether it is receiving the expected benefits. To assist in determining this, performance measures are used. These measures refer to the impact the system is having on the business, not IT system performance measures used to determine how well the system itself is performing. The performance measures are derived from the business problems and/or opportunities and the expected benefits documented in the business case. The team should identify four performance measures and complete the table below: Problem or Expected Improvement Metric – used to measure Source of Data Baseline Target Timeframe 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 by Jerry, with his limited technical understanding. It is to be written as a proposal to Jerry that explains and defends the solution your team is putting forward. Your team will develop the Business Case, section by section, as we proceed through the class. The Business Case will be done as a series of documents prepared by your team that together form the full Business Case. The specifics for each section are in the weekly group project assignments, beginning with the Week 1 Group Assignment. The complete business case assignment is in the "Building the Business Case" document posted in the classroom. Rev 6 8/20/2018 3 Table of Contents Executive Summary .................................................................................................................................. 5 I. II. Background and Environmental Analysis .................................................................................. 6 A. Background ....................................................................................................................... 6 B. Environmental Analysis ................................................................................................... 6 1. Opportunity of Business Vision, Strategy, and Objectives ............................... 7 2. Inefficient Processes and Technology.................................................................. 7 3. Competitor Products ............................................................................................ 8 4. New Technology Trends ....................................................................................... 8 5. Commercial and Operational Trends ................................................................. 9 6. Statutory and Legislative Trends ........................................................................ 9 Opportunity Analysis.................................................................................................................. 10 A. Summary of the Opportunity ........................................................................................ 10 B. Identification of the Opportunity .................................................................................. 10 C. Alignment with Business Strategy ................................................................................. 12 D. Supporting Evidence of the Opportunity ..................................................................... 12 E. Expected Timeframe for Implementing the Opportunity ........................................... 13 F. Positive Impact of the Opportunity ............................................................................... 13 G. Reason for Selection ........................................................................................................ 14 III. Proposed Solution ....................................................................................................................... 14 IV. Expected Improvements ............................................................................................................. 15 A. How the Proposed Solution Will Take Advantage of the Opportunity ..................... 15 B. IT Solution Aligns with Business Strategy ................................................................... 15 C. Benefits from IT Solution ............................................................................................... 16 D. V. 1. Financial Benefits ................................................................................................ 16 2. Non-Financial Benefits ....................................................................................... 17 Other Values of Solution ................................................................................................ 18 Alternatives Analysis .................................................................................................................. 18 A. Business Alternatives Considered ................................................................................. 18 1. Maintaining the Status Quo of the Business ..................................................... 18 2. Proposed Solution for the Business ................................................................... 20 3. Alternative IT Solution ....................................................................................... 22 4. Improving the Business Processes ..................................................................... 25 2 VI. VII. B. Comparison of Alternative Solutions Table ................................................................. 27 C. Justification of Proposed System ................................................................................... 28 Feasibility Analysis ..................................................................................................................... 28 A. Economic/Financial Feasibility ...................................................................................... 28 B. Organizational/Operational Feasibility ........................................................................ 29 C. Technical Feasibility ....................................................................................................... 32 Requirements Checklist for the Proposed System ................................................................... 33 A. Functional Requirements ............................................................................................... 33 B. Data Requirements ......................................................................................................... 33 C. Technical Requirements ................................................................................................. 34 D. Security Requirements ................................................................................................... 34 VIII. System Users Context Diagram ................................................................................................. 35 IX. Project Management ................................................................................................................... 35 A. X. XI. XII. Aspects of the Project to be Managed ........................................................................... 35 1. Project Scope ....................................................................................................... 35 2. Time/Schedule ..................................................................................................... 36 3. Cost ....................................................................................................................... 36 4. Quality.................................................................................................................. 37 5. Communications ................................................................................................. 37 6. Stakeholders ........................................................................................................ 38 B. List of Project Team Members by Role ........................................................................ 38 C. Major Task Project Schedule ........................................................................................ 39 Acquisition Strategy.................................................................................................................... 40 A. Scope of What to Buy ..................................................................................................... 41 B. Infrastructure to be Acquired........................................................................................ 41 C. What Type of Contract(s) Should be Used ................................................................... 43 Risk Management ....................................................................................................................... 43 A. Approach to Managing Risks ........................................................................................ 43 B. Risk Matrix ...................................................................................................................... 44 C. Most Significant Risks .................................................................................................... 44 Security ........................................................................................................................................ 45 A. Data .................................................................................................................................. 45 3 B. Application Software ...................................................................................................... 45 C. Systems ............................................................................................................................. 46 D. Networks .......................................................................................................................... 46 E. Physical Facilities Related to IT .................................................................................... 47 XIII. Additional Implementation Issues ............................................................................................. 47 A. Remote Training Issues .................................................................................................. 47 B. Timeline Issues ................................................................................................................ 47 C. Impact on the Workplace ............................................................................................... 48 XIV. Performance Measures ............................................................................................................... 48 XV. Conclusion ................................................................................................................................... 49 References ................................................................................................................................................ 50 Appendix A. Trusty Carpets ERP Context Diagram .......................................................................... 52 Appendix B. Proposed Solution Risk Matrix ....................................................................................... 53 4 Executive Summary With the recent acquisition and planned merger of a competing flooring business, Trusty Carpets has not only an opportunity, but a requirement to fundamentally transform its IT infrastructure. With this large-scale modification, not only will changes in the method of information flow occur, but entire business processes will be modified. This document will outline the current problem that Trusty Carpets faces, the opportunity for improvements to IT and business processes, specifics regarding a proposed solution, and the benefits that will materialize with its implementation. Problem The current IT infrastructure and business processes of Trusty Carpets is somewhat rudimentary, with much room for improvement. User systems are fairly basic, and some business processes are inefficient and wasteful. In addition to this issue, a recent merger with a competing carpet sales and installation business calls for a substantial upgrade of IT infrastructure to meet the new demand. Because the newly acquired business has almost no infrastructure, an overhaul is even more crucial. Opportunity With a proposed overhaul of IT infrastructure, Trusty Carpets has the opportunity to modernize the majority of its business processes, creating a more competitive business that match similar industry leaders. With a new IT solution, Trusty Carpets can automate many manual processes, increasing efficiency, as well as create additional functionality to allow Trusty Carpets to realize its current vision, and meet the stated objectives. In addition to these benefits, Trusty Carpets can bolster Information Security within the organization allowing for increased confidence from current and prospective customers. Proposed Solution To solve the current problem and realize the clear opportunity that Trusty Carpets has, implementing an all-in-one ERP solution is the best way forward to meet the stated goals. The proposed product, QFloors software, is a comprehensive flooring industry software that can cover all business areas including accounting and inventory. Implementing QFloors into Trusty Carpets current business model will not only help meet the current goals of increasing revenue and efficiency, but also assist in merging the two separate businesses and standardizing processes across the board. Expected Improvements If the proposed solution is chosen, the short- and long-term benefits will be significant. Possibly the most considerable benefit to the new solution will be the increase of efficiency of business processes, as well as the implementation of new business processes. Increased efficiency will allow Trusty Carpets to meet desired business goals through reduction in the use of resources, which can be better allocated elsewhere. In the realm of new business processes, QFloors offers many additions that can be individually purchased. Cloud storage SaaS can be used to allow for mobile sales personnel to make in-home sales call, as well as input and retrieve data from anywhere. Additionally, business processes such as inventory, accounting, and installation scheduling are offered. 5 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 includes the sole proprietor, two sales personnel, an accountant, and subcontracting of a local installation business. Trusty Carpets currently utilize basic information technology (IT) infrastructure to manage its current operations. The basic IT infrastructure includes an existing internet connection, a computer, two tablets, a 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 the 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 the 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 staffed by 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. 6 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. The basic IT infrastructure provided by Ben is minimal and lacking security. With a basic IT infrastructure, Trusty Carpets runs the risk of 7 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, are critical to the company's success. 3. 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 on the day-to-day. Technology trends are making business processes more practical, cost-efficient, and, most importantly, profitable. 8 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 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 9 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 its 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 are changing and would like to use more environmentally friendly materials that 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 of 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 secure 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 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 10 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 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. 11 Trusty Carpets investment in software as a service (SaaS) and ERP Technologies provides the opportunity to improve the current infrastructure. 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 allows Trusty Carpets 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 more extensive on-hand 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 proven capable 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 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). 12 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. 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. 13 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 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.). Ongoing unlimited training and support are offered twelve months after the transition. 14 IV. Expected Improvements This section is planned to cover the way that Trusty Carpets could potentially use this opportunity to their advancement. Also, 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 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, 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 15 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 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. 16 The top goal of an organization is to increase the productivity and speed of booking sales of clients to 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 management, advanced reporting, to quickly respond to changes, customer proposals, commercial floor modules, and customer relations management (QFloors, n,d). 17 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 accurate, 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, significant benefits, costs, general feasibility, risks, and significant defining issues. 1. Maintaining the Status Quo of the Business a. 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 newspaper. The business will continue to operate under their average conditions and the processes they are all familiar with. b. 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 18 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. c. 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. d. 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 will not 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. e. 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 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 19 • 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 problematic 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 is 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. f. 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 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 20 organizing their operations and finances (QFloors, n.d.). QFloors features include customer proposals and invoices, instant job costing, product catalog/Floor Covering Business to Business (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 moderate 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 more extensive 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 human-made or natural risk. c. Major Costs of the Solution 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 for $120. The following represents individual costs broken down. • Initial cost of QFloors Software = $1,400 per user 21 • • 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 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. Extensive 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 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 different solutions, ultimately enabling them to make the best decision. A realistic alternative would be creating an in-house IT solution that would be installed, configured, and managed onsite. This solution would require the purchase and maintenance of storage, networking, and end-user devices. This equipment would be fully 22 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. Key stakeholders would determine the level of security that would be implemented, 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 onsite service that can give Trusty Carpets undivided support by a technician who is intimate with the in-house system. An onsite 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 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 onsite 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 23 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 primary 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 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 reasonably 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 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 24 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 Trusty Carpets will own the equipment that will be used. Therefore, 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 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 able to decide what processes are essential in the carpet industry and what processes could be removed. The last option for improving the workflow through process improvement includes removing bottlenecks and handing off unnecessary tasks. 25 b. Major Benefits of the Solution The benefits of improving processes are a result of increasing the efficiency of business tasks within an organization. This efficiency is achieved by 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 the 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 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 the 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, some tasks could improve without using too many resources. The problem is that several processes will already be improved by using ERP software. So, while some of the processes are feasible to improve, other options could be considered. e. Top Three Risks of the Solution The top three risks that relate to improved processes related to the 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 26 • 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. 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, Price can increase based on quick transition time, scalable and expansion; limited onsite training customizable, offers cloud support. requires network services to operate. Alternative Solution Increased security, improved IT service and support, and already Higher initial and reoccurring costs, employing unskilled technicians, and 27 Improved Processes allocated space being sufficiently used. receiving a possible negative return on the initial investment. 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. Table 1: Analyses of Individual Alternatives 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 manage how they conduct businesses both internally and externally effectively. 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 manage internal and external business resources effectively. 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 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 REVIEWERS: you don’t go from subheading “VI.A.” to bullets. Follow the same schema as you have throughout…”1.” Follows A. as a next level subheading. Review the rest of 28 your sections to ensure you are following the same formatting thought. Notice I have turned your bullets into 1.2.3. Make sure this carries through here and the remainder for your Final.] 1. 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. 2. The financial analysis of the proposed IT solution shows that the primary entity has been profitable for years. The second and target entity have 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 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 and time to recover implementation costs and reap profits. 3. 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. B. 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 29 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. 1. Improving Operations via Relationship Building 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 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 businesscustomer and can support the complex needs of the business, like segmented database, and create targeted communications. This transition of recurring to a new software platform SaaS will be an excellent investment for the business. 2. Ease of Implementation into Existing Operations 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. 3. Operational Processes Feasibility 30 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 for 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. The solutions are feasible, as they will allow the current small staff at Trusty Carpets being capable of manage two locations simultaneously while 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 primary 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). 4. Organizational and Training Feasibility 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 cost-efficient strategy for small businesses. Cloud-based ERP implementation usually requires fewer resources and personnel to 31 manage the systems. A favorable opportunity is that cloud-based technology offers improved scalability to the business. [so where are we with respect to subheadings? Are there two thoughts here? If so, would not this be an a. and b. subheading? ] 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 to 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 primary 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. 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. No matter how many features a software solution has, if it is not easy to use, it is useless to a company. The company needs to consider the cost and time savings. The project team has confirmed QFloors after evaluating the software solution is expansive with the fcB2B initiative. 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 is fcB2B. The project team 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 steps Trusty Carpets performed to determine QFloors Technical Feasibility are as following. • • Trusty Carpets performed an inventory of the computer hardware. Trusty Carpets computer infrastructure is not extensive. Trusty Carpets estimated the current and projected workload of the system. The company determined that QFloors can manage current and future workloads. 32 • The company checked the time required for average transactions, the total volume processing power of the system, and the memory size provided. After evaluation, the project team has determined that 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 robust 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. 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 system must provide a unified system amongst all operations of Trusty Carpets. The system must automate current manual accounting processes such as invoices, payroll, accounts receivable, and accounts payable. The system must provide a secure database for all of Trusty Carpets data that can be readily accessed via the cloud. The system must be able to track and manage inventory in real time. The system 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. Below are five essential data requirements for the proposed system QFloors: • • The system must be able to manage input and output data regarding Trusty Carpets inventory, including the product ID and quantity on hand. The system must be able to manage input and output data regarding Trusty Carpets customers, including customer name, address, payment information, and contact information. 33 • • • C. The system must be able to manage input and output data regarding Trusty Carpets orders, including order numbers, products to fulfill orders, order dates, and customer associated. The system must be able to manage input and output data regarding Trusty Carpets financial information, including invoices, accounts payable, accounts receivable, and payroll. [within what time frame? REPEAT comment for all 20 requirements as relevant. Address for Final] The system must be able to streamline accessible data amongst all operations of Trusty Carpets. 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 must 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 modeled for the system that is to be installed. • • • The system must be capable of storing all data online to include encryption while being kept in secure storage servers. The system must …[you finish the proper statement, to include addressing time frame.Same for below. REPEAT comments] System services must be made readily available to remote users shall be limited to email, file transfer, ERP, and cloud access. All unauthorized activity on devices must be monitored, recorded, and reported. The system must report activity on all devices with a provisioned monitoring system, only allowing staff to email (business appropriate), transfer files, ERP, and access to the cloud. 34 • • Transactional data must be only transmitted in an encrypted format. The system will produce an encrypted format on all transactional data The system must provide password protection for access to webpages that are used only by employees. VIII. System Users Context Diagram A context diagram is located below in Appendix A to provide a better relational understanding of how the proposed solution will work within the Trusty Carpets environment. This diagram 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 an 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 the system as it develops. The QFloors software system will be central to all processes involved with the proposed solution. Extending from there will be nine key business areas, including Accounting, Sales, and Installation. The context diagram shows what data is processed by each of these systems, and where it flows. As a simple example, the warehouse and delivery portion show that booked orders that can come from numerous other business areas flow into this portion of the system. With this data, updates to the inventory system are facilitated, which will flow to Customer Orders and Purchases. This will allow staff to have an up-to-date inventory when booking sales. All data in this system will be critical to its success, as well as understanding how it flows and how it is used. IX. Project Management This section provides the essential tasks and processes to manage implementation phases and successfully integrate QFloors with Trusty Carpets existing infrastructure. The project management plan is a formal document that will define how to execute, monitor, and control the overall project. It is a detailed summary of the baselines, subsidiary management plans, and other planning documents to deliver the intended project management scope of the project. Performance measures will work against the baseline as the work is being conducted and efficiently controlling the project and ensuring project deliverables are on time and accurate. A. Aspects of the Project to be Managed 1. Project Scope The scope of this project is to provide Trusty Carpets with an advanced IT infrastructure by implementing the proposed system solution, QFloors. To ensure the project directly aligns with Trusty Carpets objectives, planning and evaluation will oversee the necessities to implement QFloors efficiently. This will include the time and schedule of project processes, 35 as well as tasks and the aligning cost to successfully execute. Also, the scope will address stakeholders and participants to be included for critical tasks to provide clear and concise communication during the implementation of the proposed solution, QFloors. Meetings with the aligning stakehol...
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