IT/IS PROPOSAL
PREPARED FOR JANICE DRAKE, DIRECTOR OF IT
EXECUTIVE SUMMARY:
Advanced IT services provide the essential needs for the three-year strategic growth of Rock Solid Industrial Parts, Inc. Based on the analysis of the company’s needs, the best approachable direction of choice in IT/IS decision is to enhance its network communication systems and introduce better business solutions for sales and inventory departments. It is necessary to utilize NetSuite CRM+ for sales management to improve the company’s workforce efficiency and performance, and implementation of NetSuite for the inventory department will improve productivity. These necessary upgrading requirements are a must to meet Rock Solid Industrial Parts’ three-year expansion goal.
INTRODUCTION:
Rock Solid Industrial Parts, Inc. plans to grow the company from its current sales of $33M per year to $72M per year within three years by expanding into southern California and the Mountain states. The company goes through a tough overview of deciding whether to change its business productivity with IT or keep its business process completely the same. The CEO is eager to drive IT improvements for the company, but the CFO has reservations about any ongoing changes to the business. In addition, most of the workers are conservatives that are about the age of 55 who will likely be resistant to change. Majority of the company’s employees opposed to the IT/IS changes.
WHY CONCERNING IT/IS
There are three area of concerns that needs attention while approaching towards IT improvements for the company. The two areas are the main focuses to implement solutions that will support the company’s sales function and inventory management. The other area of concern is the hardware and software solutions of the company’s communication networks.
Main Area of Concerns
IT services are the essential backbone for enterprisewide digital transformation. Having IT helps deliver many possible business outcomes that can enhance workforce performance. CRM systems are the only solution that can properly help business communicate to its customers. For any CRM application, primary goal is to enable an organization to understand customers’ need and behavior and provide better quality of service.
The best approach of CRM solution to implement is NetSuite CRM+ for the company’s sales department. NetSuite CRM+ offers powerful sales performance management, order management, and partner management all in a single cloud CRM solution. Rock Solid Industrial Parts’ sales reps are always on the road meeting up and talking with clients. These sales reps need this type of software so the team can provide improvements on sales efficiency, manage opportunities status, provide real-time access, and mobility. Traveling sales representatives can access NetSuite with its mobile application anywhere. If any sales representative need tech support, NetSuite has its team ready for any technical assistance 24/7.
Besides CRM system, NetSuite also offers its warehouse management system for the company’s inventory department. Inventory management is about knowing what item is available in the warehouse and where the stock is located. NetSuite’s warehouse management system provides many unique features to synchronize with the company’s inventory tools such as auto replenishment, cycle counting, traceability, and bin tracking. While in used, the inventory scans the barcode information and uploads in the warehouse computer where everyone in the company can access the availability of the item. NetSuite’s cross functional software for its CRM and warehouse management allows easier access for any employee to obtain.
Other Area of Concerns
IT improvements are needed to increase efficiency and effectiveness in the company’s network communication system. Rock Solid Industrial Parts’ current communication devices are outdated and inadequate enough to compete with industry standards. Everything is run on obsolete software versions of Microsoft Office and QuickBook. The best solution is to upgrade all company’s hardware and software to increase productivity.
The company’s current phone and Internet system are not up to industry level standards and needs to be updated to a more effective and efficient communication system. To fix this problem, the best approach is to upgrade these services by investing a new upgraded service provider by AT&T called, AT&T Business Fiber. AT&T Business Fiber provides internet speeds of up to 1000Mbps (equivalent to 1Gbps) so all employees can work simultaneously. The benefits of AT&T fiber deal are extremely fast internet speed, offer up to six lines of local and long-distance Voice over IP, online data backup, and unlimited data cap. These benefits will allow employees faster engaging response to the clients and vendors as well as being involve with new potential investors. Investing in AT&T Business Fibers will provide effective and competitive advantages for Rock Solid Industrial Parts in the industry standards.
Relying on outdated server puts business at greater risk of downtime, simply because obsolete equipment is more likely to fail. The company’s accounting and administrative departments are currently using various outdated versions of Microsoft Office and Quickbooks. Updated versions can provide mobile device integration, email improvements, easier remote access, reduce downtime, and manage costs. These software needs to be updated to the newest versions so it can be compatible to the other software systems like NetSuite.
AUTOMATE
Implementing automation for Rock Solid Industrial Parts improves the development process of software systems. Automation provide users with cross-functional transparency of software system usage. Sales representatives can obtain information from its inventory department to ensure its clients that the stock items are available for purchase. Inventory management can replenish stock from its vendors because of the notification from the sales transaction with the client. Both sales and inventory information reports to the executives to review and determine the next decision for the company’s long-term strategic expansion plan. Obtaining and processing shared information from system compatibility is the key to the company’s expansion success. Rock Solid Industrial Parts must automate its business.
LEAVITT’S DIAMOND MODEL
Process
Transitioning the proposed IT solutions requires the company taking initiate steps to set up a structured process for the changes involved. To begin the smooth transition in the new IT implementations, the business must have a properly well-established updated Internet connection because all of Rock Solid Industrial Parts’ proposed business solutions requires Internet access.
The company will have a Local Area Network (LAN) connection which utilize AT&T Business Fiber high-speed Internet. With the utilization of the company’s high-speed internet, a wireless network will be created to support the business activities. The two necessary essential pieces of networking equipment are switches and routers. Wireless Access Points (WAP) are also needed for wireless internet connection to multiple devices. The devices Rock Solid Industrial Parts will be using are: 3 Cisco Small Business RV340W Wireless Router at $469.99 each, 2 Cisco Small Business Smart SG200-26 Switch at $249.99 each, and 4 Cisco Small Business WAP551 PoE Access Point at $150 each. The installation of the routers will support the main office, warehouse, and the planned expansion for repair operations. The routers have an internet connection range of approximately 300 ft, along with the wireless access point will double the connection to the range of 600 ft. The switches are in the main office and warehouse connected to multiple hardware devices which will allow users sending information to other devices in a smooth, efficient, and transparent manner. The network set up will bring the company up to networking industrial standards.
After the installation network setup, the next step will be upgrading all hardware computer devices. The obsolete computers the employees had been using are going to be scrapped. These computers are being replaced with more modern laptops for business purposes. Company laptops are a boon in today’s business world as employees are allow to work remotely outside of normal working hours. Since majority of employees are working remotely away from the main office, it best to provide everyone a company modern laptop. The best laptop in this proposal will be the Dell Precision 5510 Mobile Workstation Laptop. Its features are an Intel Core i5-6300HQ, with 8GB DDR4 ram, 500GB hard drive, and with the latest Windows 10 at the price of $1,129.57 each. The company will need to invest in 182 of these laptops. These laptops will require to install software programs of 2016 Microsoft Office and 6 laptops must install QuickBooks 2017 for accounting. Besides the replacement with the modern laptops, the company must invest in an updated printer with scanning capabilities. The best printer for Rock Solid Industrial Parts will be the HP PageWide Pro 577dw Multifunction Printer at $899.99 each. The features of this printer are its wireless, come with a scanner, and can print double sided. The company needs to invest in 2 of this printer, one for the main office and one in the warehouse. Upgrading all the company’s hardware computer devices will enhance the employee productivity and efficiency.
Structure
The new implementations of the IT proposal don’t mean the company must undergo restructuring business organization. All IT improvements will be overseen by Senior Director of IT, Janice Drake. The IT senior director and potential IT staff will be responsible for maintaining and updating the company’s systems. All other C-level executives will have the same job position and duties.
Technology
The CRM and warehouse management systems supported by NetSuite is the best solution for the company. Since both systems are compatible with easy access, the functionality of the NetSuite provide employees to increase performance and enhance productivity which will eventually generate promising revenue. With the IT network communication improvements, this provides sales reps faster communication response with the clients and vendors. Notification updates will be accurate for inventory management to monitor. C-level executives can review the reports of its sales and inventory progress. This company will reach its three-year expansion goal with these IT/IS improvements.
People
Its about people. People use information technology to work with information. Employees are the main priority of these business solutions while using the IT improvements to manage sales, inventory, and accounting effectively. The company’s employees are gradually being introduce to the new IT improvement devices and software. The IT staffs will provide guidance and training to assist the employees as much as needed for a smoother workflow to process. Since employees meet up weekly on Mondays, there should be training seminars for employees to transition to the new IT improvements. The duration of the training should take roughly around 3 months. Growing a business often requires developing people.
The most important thing about the training employees is to inspire the workforce by allowing the people learning these tools to solve many solutions in an effective and efficient manner. Most of Rock Solid Industrial Parts’ employment staff are around the age of 50 and are resistant to change. The IT staffs must provide engaging demonstrations to motivate employees that using the new improvements will provide beneficial solutions through work productivity. As a trainer, coaching the team with encouragement, inspiration, and affirmation will allow everyone to embrace growth.
RISK MANAGEMENT
Main Risk Involve
The main risk in this proposal is people. It’s difficult for non-tech savvy employees around the age of 50 adapting to change without any frustration. Since the employees are used to using the old system, accommodations are made to support everyone during the training. To reduce this risk, all employees are gradually assimilated enough to the new improve systems environment. Rushing change to these conservatives will cause frustration and discouragement, and that will cause serious delay of progress for this IT/IS proposal. The importance is to move the IT changes at steady pace so employees are at ease to the new adjustments.
Other Risk Involve
The other risk involve are cybersecurity breaches. Cybersecurity is the body of technologies, processes and practices designed to protect networks, computers, programs and data from attack, damage or unauthorized access. Cyber-criminal activities must be prevented always. These cyber-attacks can cause leaked company’s private information stolen or viewed by hackers, disrupt the whole system with any type of computer virus, or even cause the company’s network to completely shut down. The IT department must be alert and constantly monitor all systems.
FINANCIAL ANALYSIS
Investment Type Equipment/Software Quantity Cost Total Cost
Sales Solution NetSuite CRM+ 17 $16,983.00 $101,898.00
35 $34,965.00
50 $49,950.00
Inventory Solution NetSuite 5 $4,995.00 $4,995.00
Accounting Solution QuickBooks 2017 6 $1,200.00 $1,200.00
Overall Hardware/Software Solution Cisco S.B. RV340 Router 3
$1,409.97
$282,689.85
Cisco S.B.S SG200-26 Switch 2
$499.98
Cisco S.B. WAP551 PoE Access Point 4
$600.00
Dell Precision 5510 Mobile Workstation Laptop
182
$205,581.74
MS Office 2016 182 $72,798.18
HP PageWide Pro 577dw Multifunctional Printer
2
$1,799.98
Internet AT&T Business Fiber 1 $85.00 $85.00
Overall Total $390,867.85
Budget is $250,000 to $750,000
CONCLUSION
IT is continuously growing by providing enhance systems for users to become much more productive. Rock Solid Industrial Parts, Inc. must be well equipped with the latest technology to solve any oncoming business problems. The company must stay competitive against its competitors by keeping up with the latest technology. With updated IT systems, this will meet and possibly exceed the company’s three-year expansion goal by providing efficient sales workforce performance, productive inventory management, effective communication, and accurate accounting reports.