1-888-JUNK-VAN

Problem/Issue Statement

·         Marcus Kingo entered the junk removal business in 2008 and maintains a simple, virtual business model. The company has been growing rapidly since inception. Currently, Kingo and the company are facing major IT issues that are causing information handling errors and ultimately losing customers. Kingo needs to find an affordable IT system that meets his operation requirements and allows the business to grow.

·         The main issue Kingo and 1-888-JUNK-VAN is facing is a lack of a centralized software system/database that multiple users can access remotely. The symptoms of the problem are forgotten emails, manual calculations on spreadsheets, lost information, mistakes with customer contact information, errors in job information, and billing mistakes.  The billing mistakes originated by the data clerk were causing the most serious issues for the company.  On several occasions the data clerk sent the wrong version of the database to the morning clerk and as a result some jobs that were already booked were not showing in the database.

·         Kingo needed to find and implement an IT system that could be implemented quickly since he was losing customers to his competition. Since waste collection was viewed as a commodity, competition was high and prices were driven down. Most Canadian waste collection businesses were small models, typically operating with one truck.  Customers tended to have many options of who they could use for their waste collection. 

Situation Assessment

·         The context of the problem is that the drivers relied on instructions delivered through an email system, and when this information was incomplete or incorrect, customers suffered the consequences. As a result customers were becoming dissatisfied with the company’s service. In addition, since the company doubled its sales from $300k to $600k in such a short period of time, it outgrew the email system and database. It proved to no longer be an effective means of conducting the virtual business.  Kingo believed in his virtual model, however having a database that was emailed back and forth without the ability to be used by multiple employees at a time was causing issues. 

The decision criteria for the new IT system were as follows:

• A centralized database that is accessible remotely since all employees would be working on it simultaneously from different locations. 
• A system that would email customers automatically in order to avoid mistakes and resulting delays.  
• The solution needs to be easy to implement and operate since Kingo did not have an IT background and the business was too small to justify hiring a dedicated IT worker.
• Ease of use was also critical since Kingo’s staff did not possess very high IT skills but would rely heavily on the system.
• The system needs to be flexible and robust enough to handle evolutionary changes in the market or the business.
• Vendor support was essential; Kingo wants to be able to rely on someone for support for as long as his company was using the system.
• Time to implement was critical.  The new system needs to be up and running as soon as possible.
• The system needs to be affordable.

 List of Plausible Alternative Courses of Action

Five options have been identified:

Microsoft Access Database
Pros	Cons
Implemented in a relatively short time Small budget required Access could be installed locally on multiple Could be installed on a centralized server for remote access through Internet or a secure virtual private network (VPN) Kingo could install on computers Licenses were priced at $179 per computer	New database needed to be created Significant amount of technical information required to install on a shared server for remote access Number of licenses required Costs of hosting a shared server Costs of required professional development assistance No remote access, so each instance of the database would have to be updated manually, every day
Custom Application
Pros	Cons
Custom-made for specific company Could grow with company If developers followed specifications, it would be user friendly Web-based, which would be a central database and provide remote access	Initial build time estimated to be 4 weeks Upfront price was about $2,000 and did not include changes or adjustments Maintenance was charged at $60 per hour per developer No way to predict how much maintenance would be needed Data migration charges Custom-made software could not be seen or tested beforehand
Google Docs
Pros	Cons
Free online applications Create text documents, spreadsheets, slide-based presentations and forms Form could be created quickly and shared with employees Users could work simultaneously on the same file, in a collaborative system environment Different user profiles Email distribution was supported (customers could be sent an email with a link to a form) Free for up to 10 user accounts Small business fee $5 per user per month or $50 per user per year Implemented quickly Easy to use Remote access for employees	All data would be input into an online spreadsheet and could not be cross-referenced (one large form was not ideal) Lack of formal customer support Only available assistance was through online blogs and forums Hesitant to rely on cloud computing Concerned about storing sensitive company data, confidentiality issues Concerned if Google decided to suspend or even cancel the service
Platform as a Service
Pros	Cons
Users could utilize common applications and build their own unique applications, using a shared platform that was provided and hosted by a third party After a trial by a PaaS provider, Kingo felt he would be able to build forms and connect tables himself Implementation and data migration would take 3 days Long term contracts were not required Could scale up or down at any point Cancel the service with one month’s notice Remote access for employees	Delivered on a cloud-computing infrastructure Service package costs ranged from $300 to $600 per month depending on storage space, user licenses and applications Customization was available on an hourly basis at $180 Proprietary software issues Vendor IT Support (not specified or detailed) Automatic emails generated (not specified or detailed)
Enterprise Resource Planning (ERP) System
Pros	Cons
Built around a central database Designed to be accessible remotely and integrated business processes in every aspect of the company	Small firm implementation expected to have 20-25 users Costs for licenses would be about $2,500 per user per year High upfront costs Four licenses were priced at $12,000 Estimated included modules not necessary System appeared static and focused on production and finance modules

 Evaluation of Alternatives

·        When evaluating the five alternatives, it is important to analyze which option covers all or most of the decision criteria.  The new IT system needs to have remote access, be a centralized database where users can simultaneously input information, offer email capabilities, be implemented in a short time and affordable. The pros and cons of each system should be evaluated and reviewed to decide which offers the most capabilities. The alternatives can be ranked and from that list a decision can then be made.

·         Kingo needs to be realistic in the decision making process.   He should chose the alternative that addresses the majority of the issues. Kingo also needs to look at the long-run and future, not just the present situation.

Recommendation

·         After reviewing the pros and cons of each option, I believe the PaaS system would satisfy most needs for the company. The system offers remote access and a centralized database which is key for eradicating customer errors and keeping the virtual business model. The system can be implemented within 3 days including data migration. The company will have access to software and applications that would otherwise be expensive to purchase. Kingo can create the company’s own applications and forms.  The system is also hosted by a third party, so Kingo does not need to install a server. After the trial, Kingo felt the system was easy to use which will be beneficial since the employees are not tech savvy. It is also beneficial to Kingo that there is no long term contract required.  If he felt after implementation that the system was not as straightforward to use he could cancel with only one month’s notice and try to find a different solution. The system could cost between $300- $600 per month based upon storage space, user licenses and applications. The PaaS system allows Kingo and the company to scale up or down. In addition, if Kingo feels the company needs a customized program, it will cost about $180.00 per hour.

 

 Presentation

·         If I were presenting as a consultant to the class, I would state that I have been commissioned to identify strategies for improving the current IT system and database.  I would discuss the problems that arise from the current IT system.

·         I would detail the decisions criteria and the needs of the company. I would also discuss the pros and cons of the five options.

·         Visual aids to be used in presentation:

o   PowerPoint presentation for the major issues occurring at 1-888-JUNK-VAN;

o   Decision criteria for the new IT system; and

o   The pros and cons of the five alternatives.
 

·         I would “sell” the PaaS to 1-888-JUNK-VAN and Kingo by stressing the system’s remote access and centralized database which is key for eradicating customer errors and keeping the virtual business model. I would state that it can implemented within 3 days including data migration. The company will have access to software and applications that would otherwise be expensive to purchase. Kingo can create the company’s own applications and forms.  The system is also hosted by a third party, so Kingo does not need to install a server. I would also stress it is user friendly which will be beneficial since the employees are not tech savvy. I would state that there are no long term contracts required and can be canceled with only one month’s notice.  The system could cost between $300- $600 per month based upon storage space, user licenses and applications. The PaaS system allows the company to scale up or down.

·         Other Delivery Consideration to Keep in Mind:

o   Pros and cons of all alternatives;

o   Obstacles with the PaaS system including learning curve, cloud computing and confidentiality issues, etc.; and

o   Concise explanation of PaaS system to reduce questions and concerns.