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
|
|
|
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.
