End of Module Assignment Autumn Term 2010 Managing e-projects and Change Using the Deductive Technology Case

Study you will be expected to hand in a report of around 5000 words that contains 4 sections:
1.

A management overview of how you see the project being managed and implemented. A discussion of potential risks to successful implementation and how they may be mitigated. (30%) A project plan or Gantt chart, entered into a software package, showing the major tasks, sub-tasks, resources required, deliverables, their relationship and expected completion times. If there is no real start date please use Nov 8th 2010. Also show any additional project management tasks. (30%) A revised financial plan taking into account discounted cash flows, with your assumptions and an explanation of your financial plan. (10%) A briefing paper to your management team on issues around change management and changing established working practices. (30%)

2.

3.

4.

Hand in Date on or before December 2, 2010 You should hand in copy on disk or similar to Reception in The Business School and upload a copy of your report onto Turnitin via Blackboard before 3.00pm on before December 2, 2010. Work handed in up to one week late will be graded to a maximum pass mark of 40%. Work handed in a week after an agreed hand in date will not be graded.
Pete Wraith

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Deductive Technology Case Study for M.Sc e-Business The project idea described in the attached pages was originally drawn up by Steve Pilchard an employee of Deductive Technology in close collaboration with Helen Ford the companys Finance Director. He had expected to do most of the work himself and had planned it out to be a two year project. For various reasons Steve is no longer with the company but the ideas he and Helen worked out are still relevant. Rather than replace Steve Pilchard with someone of a similar background the company have employed a junior web developer, Jacqui Jones and a recent graduate, Billie Bond to keep the existing business systems up-and-running. Both these two new employees will be able to work on aspects of the project under your guidance and that of the Senior Management Team. The CEO and major shareholder Martin Large wants the project to go ahead but says the company cant wait two years and wants all work completing by end of July 2010. This will mean running activities in parallel and bringing in some project management experience into the company (your role) to help deliver results on budget and on time. You may make assumptions (your best guess) about information you feel you need to know but which is not available to you. In such cases please state your assumption. For example you may need to know the cost of borrowing money. Your assumption might be that an unsecured business loan will cost around 8% per annum from Deductives High Street Bank. You may work in a group to discuss ideas but you should submit an individual piece of work the majority of which has been done by you rather than the group.

Pete Wraith 04/10/2010

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Project Background Deductive Technology Deductive Technology provides assistive technology; hardware and software for children and adults with special educational needs, including access devices which enable those with physical or sensory difficulties to use a computer or communicate. Deductives software helps develop skills such as understanding cause and effect, making choices, literacy and numeracy. Special Needs Market : 2% of children in the UK are educated in special schools and an additional 17% of children have special needs but are educated in mainstream education. The total ICT spend in this area per annum in the UK is 30m excluding PCs, networks, communications and consumables. There are additional opportunities in English speaking countries. Deductive Technology has set up a subsidiary company in the US where the market is considered to be six times that of the UK. Australasia and Canada are smaller but lucrative markets. Additionally, the adult and aged population special needs sector is a market we have yet to penetrate. We estimate this to be a market worth 50m. Deductive Technology is the largest provider of Special Needs educational software and hardware devices in the UK. It is also the second largest independent supplier of ICT equipment to Education in the United Kingdom. Deductive holds a unique position in the market as not only a supplier but also as an information and training organisation. The company has several competitors who offer elements of service provided by Deductive, many of these are small owner managed enterprises, but only one offers a comparable range of products and services. This company is Semerc, a division of Granada Learning plc. Deductive holds a 25% share of this market. The company has a small share of the US market but little in the Commonwealth and Adult Special Needs markets Basic Company Financial Information : The Companys annual turnover last year was Net profit pre-tax as stated in its last audited accounts was Value of exports as stated in its last audited accounts The balance sheet total was Number of Employees 29 Some Problems Currently home grown business systems are in place. These enabled the company to grow to its current size but further business development requires a radical restructuring and integration of the companys information systems. There can be no further growth in sales till these issues are resolved. The company is seeking year on year growth of 10% from the end of next financial year Oct. 2010. This will be facilitated by improved
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7,238,160. 693,539. 243,225. 776,798.

marketing activities and the use of more robust and integrated business systems capable of supporting entry into US and other English speaking markets. Implementing an integrated suite of software applications and consequent internal reorganisation will streamline business processes and increase the ability to process more orders. A new marketing strategy will widen access to markets as will an e-shop, integrated with back end systems. The core of any new IT developments will be an integrated back-to-back, tele-sales order processing, stock control and purchase order processing system directly linked to an accounting package working over a Virtual Private Network (VPN). An analysis of customer behaviour, current marketing activities and market research will generate plans for developing new products and routes to new markets. These developments will improve internal efficiency and growth in markets across English speaking countries. A set of integrated activities are required to review business processes, marketing and operational procedures, implementation of software to integrate business systems across the company and its overseas operations over the VPN. This will develop methods for the semi-automatic generation of an electronic shop and paper catalogue from its enterprise systems and feed orders from the electronic shop back to its core enterprise systems. The major aim being to increase profitability and market share through increased efficiency and improved marketing activities. The company may require some assistance with: ICT strategy development, Business Process Modelling and Software Requirements Specification, but they are competent at building web based applications and integrating them with enterprise systems. They also have experience in market research, marketing communications, customer relationship management, catalogue operations, financial management and developing software products for the special needs community. There is a budget of 10,000 for project support in the figures at the end of the case study this equates to a notional 30 days at 300 per day and 1,000 for travel and expenses. Project objectives To improve internal efficiency and increase market penetration the project will : Develop ICT and Marketing strategies capable of supporting a business strategy of growth. Document requirements for and manage the purchasing and implementation of a new integrated suite of enterprise software applications. Devise a change management programme to enable internal re-organisation after a business process re-engineering exercise. Develop an electronic shop integrated with enterprise systems. Manage the integration of telephone and computer applications. Develop technology driven marketing activities to make better use of improved customer information and its management. Develop an application for semi-automatic generation of the product catalogue Specify requirements for and manage the implementation of a virtual private network linking UK and US operations.
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Project Deliverables, Savings and Gains Task No. 4 & 11 Deliverables

Efficiency gains/ growth and Improved Management Information available. 244k. ( Savings by not outsourcing IT support, redesigned work flows requiring 2 less staff, better planning information. Growth: able to process more orders) Savings in Operational Efficiency worth 79k (reduction of 5 visits per year to USA = 60K over 4 years, Staff time gained by not travelling 19K Access to new markets via e-shop 287k (Efficieny savings in Telesales = 1 staff member over 3.5 years 87k, new market sales in other English speaking countries = 200k) Increased information and visitor tracking from web site statistics 29k (Direct targeting of sales effort to existing customers and site visitors) Automated Generation of catalogue 39k (Reduction in staff time equal to 0.5 of staff member over 3 years) Marketing strategy developed. Documentation complete and staff trained. Improved marketing activities 125k (Generation of new sales)

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22 25 23

Task 4& 11 11 13

Description
Savings by not outsourcing IT support, redesigned work flows requiring 2 less staff. Growth: able to process more orders Improved management information better planning information and inventory control Efficiency in operation of group reduction of 5 visits per year to USA = 60K over 4 years, Staff time gained by not travelling 19K via implementation of VPN Access to new markets via e-shop in other English speaking countries = 200k Efficiency savings in Telesales = 1.5 staff member over 3.5 years 87k, Increased information and tracking from website (Savings on targeting of sales effort to existing customers and site visitors) Automated generation of catalogue, reduction in staff time equal to 0.5 of staff member over 3.5 years Improved marketing activities generating new sales. Total

Total k
144

Yr1 k
15

Yr2 k
30

Yr3 k
32

Yr4 k
33

Yr5 k
35

100 79

10 3

20 18

20 18

25 20

25 20

21

287

37

50

100

100

22

29

25 23

39

11

11

11

125 803

0 28

0 116

25 164

50 247

50 249

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The Original list of tasks that sequentially would take two years to deliver benefits Effort (in person weeks) 4 Deliverables (in terms of contribution to the operation of the Company Partner or decision points)

Task no. 1

Task description (where appropriate, please state how the task will be carried out) Induction and Review Companys Strategic Direction Induction to Company and work shadowing of team to get a complete overview of methods of working. Interview the 3 senior directors to establish their view on Opportunities, Threats, Strengths and Weaknesses. Collate findings in SWOT document Use SWOT document and previous iteration of Company Strategy Document to confirm / revise Company Strategy Meeting with the 3 senior directors to establish that the project, IS and IT plans address the issues identified in the SWOT analysis.

SWOT Analysis Document IT Strategy Workshop facilitated by Your Company Draft 1 of company IT Strategy Document

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Modelling Business Processes Visit some customer sites, attend Exhibition and / or Trade Show Shadow key staff to gain understanding of and document sales order processing procedures. Shadow key staff to gain understanding of and document current nominal, sales and purchase ledgers procedures Shadow dispatch / warehouse staff to gain understanding of current product range and document, stock movement procedures. Seek agreement from Key staff that documentation is correct Marketing Audits Internal and External Internal Audit Undertake an in-depth assessment and analysis of Deductive Technologys marketing related resources and activities by primary (interviews) and secondary research (internal documentation): Analyse: Sales cycle Customer information (previous, existing and potential) Internal marketing information flows Current marketing activity
Existing corporate marketing image/approach

4 Documented sales order processing procedures Documented current nominal, sales and purchase ledgers procedures Documented warehouse and stock movement procedures. Accuracy of documentation agreed

2 Report on sales cycles, internal information flows, current marketing activities and existing corporate marketing image/approach.

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IT strategy development and IT management. Through interviews and review of existing documentation Document current web-site and company catalogue generation procedures. Gather requirements for a virtual private network (UK & US) Review current IT system management procedures Oversee Implementation of remedial actions required maintain current systems as a secure and maintain business continuity. From products of task 2 produce an integrated business systems model of current operations plus problem areas. Identify with senior management team redundant procedures, outline new operating procedures and expected re-organisation Produce outline design of new proposed integrated set of business systems Set KPIs expected from new Business systems

4 Documented current website and company catalogue generation procedures VPN requirements list IT Procedures Report Updated IT management procedures communicated to IT based staff Integrated business systems model of current operations Identification of efficiency gains Required Business Systems over view document. KPIs defined

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Completing the Requirements Specification Through interviews and working from products of task 2 , the partially completed specification documents covering SOP, Stock, POP, Accounting requirements, web shop and catalogue generation. Establish additional data and functional requirements (Interviewing senior staff) Establish non functional requirements, support, training etc. Establish and document the acceptance and evaluation criteria. (Interviewing senior staff) Research pool of potential software provides Produce version 1 of proposed IT strategy document including software, hardware and IT management plans. Selecting the software application

Requirements Specification Document Acceptance Criteria Document

Company IT strategy and plans documented and presented to relevant staff

suite Issue invitation to tender and organise demonstrations and evaluation process Presentation to key staff on Tendering procedure. Visit vendor customer sites. Manage software selection and vendor in conjunction with senior Company partners and Academic Supervisors Draw up Implementation plan with chosen software vendor.

4 Invitation to Tender Document

Milestone: Software selected Implementation plan communicated to staff

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Business Process Restructuring 3 Attend product configuration training Establish and document work flow procedures for SOP, POP and stock control modules of the selected application, using process flow software. (Interviews with product vendor and Senior management) Compare new procedures with integrated business systems model of current operations (Task 4) and establish scope & impact of change and propose Change Management Plan

New work flow procedures identified and documented Change Management Plan agreed with senior staff new procedures documented.

Preparation for Phase 1 ( SOP , POP and Financial applications) Implementation Review Change Management Plan Review Implementation Plan Prepare all staff for implementation process (meetings / briefing sessions) Organise and/or deliver product training for staff Establish and document Nominal Ledger requirements. (From existing package and Interviewing senior staff) Establish and document management reporting and management information requirements. (Interviewing senior staff) Establish and document additional software requirements

Updated Implementation & Change Management Plans presented to staff Staff trained in new application Documented Nominals Documented MIS requirements Documented additional requirements

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Phase 1 Restructuring Work Flows Review and communicate Change Management Plan and new procedures to staff via team meetings and workshops. Review and communicate Implementation Plan to staff via team meetings. Using ODBC links and SQL write programmes to extract data from :Stock files , Customer files , Sales ledger files and Purchase ledger files and reconfigure in preparation for input into Test database tables. Implement new applications in test mode Carry out go live simulation A day in the life of Deductive Technology using new procedures Agree plans with senior managers and Vendors to resolve system problems and people issues

New procedures documented Revised implementation plan for Phase 1.

Documented structure of data tables for new application

Document system problems and people issues arising from simulation

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10

Phase 1 Implementation Working with software vendors review implementation plan & manage the implementation of : The core financial applications (nominal, sales and purchase ledgers) Sales order processing module Stock control module Purchase order processing module. Check data formats from Task 8 and reproduce current data for live operation Collect and copy all user documentation and store Implement Management Information and reporting modules The additional software requirements Cross check accuracy of financials. Review information management / backup procedures. Phase 1 Implementation review and fine tuning Carr out User Satisfaction survey and document all : reported configuration difficulties user errors & training needs Software errors With management accountant check production of : month end routines Management reporting task and develop other management information reports as required Review and amend overall IT strategy document and phase 2 plan Organise meeting to discuss and present revised plans

Communicate revised implementation plan to all relevant staff

User documentation reviewed and additional staff training needs identified

Updated information management documentation communicated to key staff.

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4 Implement remedial action as required

Staff trained and using new systems Milestone : Implemented Sytsem Efficiency gains/ growth and Improved Management Information available. 244k Updated information management documentation and . revised Implementation plan communicated to affected staff
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Specification of a Virtual Private Network (Phase 2) Identify potential VPN hardware suppliers (Trade Journals) Through interviews with management team, University staff and Vendors document Business Needs ,Technical Needs and Security Needs for The Deductive Virtual Private Network. Submit specification document to potential vendors Evaluate potential solutions and choose Vendor Draw up VPN implementation plan Implemtation of a Virtual Private Network Purchase components Install Test security Test applications running over VPN Document normal operation and recovery procedures Communicate new procedures to staff who will use applications over VPN

VPN Requirements Document

VPN implementation plan

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Application running in UK and US over VPN Updated IT management plans Staff trained in using applications over VPN Savings in Operational Efficiency worth 79k

14

Build in vacation time

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External Audit : Undertake a detailed audit into Deductive Technologys market. Through the development of a questionnaire, interview a sample of existing and potential customers to establish 1. the level of customer satisfaction. 2. CSFs by market segments. 3. market requirements with respect to Buying behaviour and the decision making process Attitudes to purchasing Market size and shares Technological requirements After sales service Undertake research into Deductive Technology competitors

Report on existing customer profiles and buying behaviour, and create a customer satisfaction survey report. Report on market perception and position of Deductive Technology SWOT and PEST analysis (The better understanding of customers will improve Deductive Technology ability to operate efficiently which will in turn increase turnover and/or profits)

Produce a market analysis report. Competitor analysis and present report to Management Team Proposal and plan including methodology, aims and objectives. Include budget figures and expenditure justification.

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Market Research and Information Prepare a research proposal to carry out market research to identify market opportunities. Undertake research and facilitate in house brain-storming, gap analysis to identify potential new markets / products for. Grade potentials based barriers to entry, suitability of existing product/technology, strength of the economy, political stability, size of market etc. Investigate opportunities for online, overseas, adult and early years markets for special needs products. Based on the information from tasks 3 and 15 co-ordinate and present findings to the Management team. Include a review of any resources for product / market development, identification of critical success factors and identification of target market sectors.

3 Report on recommendations for targeting new markets / products and potential customers. Opportunities for business in areas identified to increase turnover. 1 Establish key performance indicators
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Marketing Strategy based on tasks 15 and 16 Develop communications and promotional strategy. Develop marketing sub-strategy to achieve the target growth in sales / profits Develop a marketing sub-strategy to achieve the development of identified markets / products to achieve target growth in sales. Develop outline a marketing programme, plans for the implementation of strategy and sub strategies, resources, timescales and budget implications, expenditure justification. (To be implemented during Task 23.) 2

Marketing strategy report recommending company approach to communications and promotions. Report approved by senior management

Marketing development programme report, and presentation for approval by the Board. Production of planned new procedures and implementation plan. (Marketing programmes approved by senior management.)

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Check quarterly reporting routines Review output from main financial and Management Information applications implemented in phase 1 adjust if necessary. Preparation for Phase 3 (Electronic Shop) Implementation Gathering and documenting technical, functional and business requirements. (Interview key staff, ISP, review existing site and competitor sites) Tools selection. Devise phase 3 implementation plan with key staff and communicate it to staff involved Undertake any required training

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Electronic Shop requirements specification document. Phase 3 Implementation plan communicated to affected staff

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Phase 3 Implementation Visual Using the product(s) selected in 15 (e.g. Shop Creator tools , Java, VB, HTML) build the shop templates. With ISP manage implementation of web hosting requirements. Document web hosting information and communicate procedures to operational staff Phase 3 Implementation Procedural Write programmes to produce input and output linkages to main financial and SOP applications using ODBC and SQL. Upload shop and test Write operational procedures for shop generation and new order processing. Train staff Launch new trading site Review information management / backup and system operation procedures. Phase 3 Implementation review and fine tuning Use tools and write programmes for capturing and interpreting web site visiting statistics, particularly non-purchasers, using tools provided by ISP to download into Access database. Develop automatic web traffic reports using Access database macros. Train users to produce reports With key staff and marketing department (task 23) review web site promotion and search engine placement strategy and carry out any necessary remedial action.

4
Templates developed and tested User department staff trained to manage hosted application

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Integrated electronic shop generateded from enterprise systems. Staff trained to generate eshop and process orders Updated information management documentation. Milestone New E-shop launched Access to new markets via eshop 287k

22

Traffic reporting system produced Staff able to generate visitor statistics Revised website promotion strategy and information management documentation. Increased information and visitor tracking from web site statistics 29k

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Manage the implementation of the approved marketing programme. Development of promotional material for the website and brochures as required by the marketing strategy (task 17), to meet needs identified in tasks 15 and 16. Obtain feedback on companys products and marketing activity. Establish and co-ordinate marketing/PR activity through external liaison with: Customers, Agents, advertising agencies, technical journals and press. Implement market development elements of the marketing programme for current and proposed markets by undertaking surveys of customers establish feedback system to inform web team of findings on perceived market direction and potential new products. (task 22) Preparation for Phase 4 (Semi automatic production of Catalogues) Implementation Gathering and documenting technical, functional and business requirements, through interviews with key staff and print supplier. Produce and issue Invitation to Tender Product and vendor selection. Devise and communicate implementation plan to key staff Undertake any required training 1

Promotional material produced. Promotional activities undertaken and feedback obtained. Marketing plan for identified market / product implemented. Produce procedures manual.

1 Summary report and presentation on future market development for approval. Customer surveys report. Feedback system to inform technical personnel. Improved marketing activities 125k

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Requirements Report and Tender Documents

Phase 4 implementation plan delivered to key staff

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Phase 4 Implementation 25 Install software and generate catalogue and product display templates. Write VB scripts using ODBC and SQL to populate product templates. Write programmes to generate despatch list from customer database Produce technical documentation Write procedures and train staff to use new system Liase with printer and manage catalogue distribution Phase 4 review Update system documentation and user instructions. Vacation Time Monitoring, Evaluation and Procedures Identify success criteria based on strategic objectives in each market for on-going monitoring, evaluation and updating of marketing plan, including develop monitoring and evaluation procedures undertake on-going monitoring of market performance. Establish marketing planning procedures to update marketing plan based on results of monitoring, evaluation and updated marketing information. Produce procedures manual and hold marketing team workshops to develop skills to revisit tasks 3, 16, 17 and 23 and communicate procedures

Updated IT documentation User staff trained using new method Milestone : Paper and CD catalogues generated from stock system Automated Generation of catalogue savings potential of 39k

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1 4

Updated information management documentation.

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Proposals for monitoring and evaluation criteria. Monitoring and evaluation manual. Updates to marketing information.

Marketing planning procedures manual written. Staff trained

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Estimates of Cost to deliver the project

Additional Company Costs Description Estimate of costs ()

Project management fees Staff training in software use Software purchases Software server and E-Commerce / Web server Fixed link Telecommunications Connectivity Total

10,000 5,600 40,000 10,000 6,000 71,600

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