The Developing System Network And Implementing Management

Published Date: 02 Nov 2017

The proposed methodology and the approach of developing the IT-strategy of Tech-Record are based on the Team’s multi-year experience and provide the efficient economic and commercial results. The methodology is based on step-by-step approach in implementing IT solutions in client’s company. Our approach will help the company to develop the business strategy which would be based on the IT-strategy and would transform the Client’s business to respond the modern business realities and challenges. As an overall result, the Client would change its business development conception, leading to the increase the capitalisation and the sales rates.

At the heart of methodology is the consultancy stage that defines problems of the Client’s company and determines the IT solution that will give the company best tool to solve business problems. On this stage the Consultant estimates economic effects the IT-solution will give the Client on its successful implementation. This stage is believed to be the roadmap for the whole IT-strategy of the Client throughout the three-year period.

Based on the documents developed during the consultancy stage the implementation team will start the implementation stage. With a high-qualified implementation team, the Consultant can guarantee the overall success of the project. The comprehensive Project Management approach on managing project stages defines the efficiency of the project deliverables and would help to track the project progress with relevant efficiency estimation processes within each stage.

IT systems (hardware and software) are changing very quickly, giving new and most convenient tools for the business. Therefore, on our approach, the implementation of IT is a continuing process and the return of investment on IT should be considered in long-term perspective prism. The consultant assumes that IT should not be considered as a "magic medicine" for the treatment of all diseases of the business. IT is a comprehensive base for the realisation of business strategy and according to this idea; the consultant makes more importance on qualitative effects of IT rather than quantitative ones. Paraphrasing this idea, the Consultant sees its mission on implementation of IT on changing the business vision and company culture, on improvement of customer relations and satisfaction rate, on improvement the company workflow, data-processing and analysing processes.

According to above-stated principles the team believes that the methodology and approach offering within this proposal would respond the needs of the Client and improves its business to be successful in 21st century.

ACRONYMS AND ABBREVIATIONS

Client

‘Tech-Record’ Ltd

Shops

Network of vinyl shops in the UK trading under the name of ‘Tech-Record’

The team

Network-team Consultancy

Project

Implementation of unified corporate information system in ‘Tech-Record’ Ltd

Group

Owners of the ‘Tech-Record’ Ltd

Company

‘Tech-Record’ Ltd

VPN

Virtual Private Network

ERP-system

Enterprise Resource Planning system

CRM-system

Customer Relationship Management System

IPSec

Internet Protocol Security

SSL

Secure Sockets Layer

LAN

Local Area Network

TCP/IP

Transmission Control Protocol/ Internet Protocol

CONTENT

1 Initial Report..................................................................

4

Client background..........................................................

4

Need for the development of IT-strategy and methodology of implementation of IT............................

5

Project deliverables.......................................................

7

The team profile...........................................................

8

2 IT Strategy..........................................................................

9

Is IT necessary or desirable for a business start up..............

9

Strategy for implementing IT during the three-year period........... ……………………………………………

12

Vision of Client’s business and determining problem………

12

Methodology…………………………………………..................

15

3 Project plan..............................................................

25

3.1 Work Breakdown Structure of the project......................................

25

3.2 Comprehensive list and supporting commentary of resources

(For overall IT-strategy) …………………………………...

27

3.3 Project cost (Budget for the six-month project)……………..

29

4 Bibliography and List of references...................................

33

Appendixes.........................................................................

34

Shops structure of Tech-Record Ltd…………………….

34

5.2 Organizational chart of Tech-Record Ltd………………..

35

1. Initial report

Client background

Company name:

‘Tech-Record’ Ltd

Field of operation:

Retail of vinyl records

Location:

Eight shops throughout the UK with Head Office in London

Contacts:

www.tech-records.co.uk

A number of small shops in the UK operating under the name of ‘Groovies’, specialising in the sale of vinyl records, decided to sell the business to the group of investors (Group). The Group plans to capitalise on an upsurge in interest in vinyl records by using IT to bring shops into the 21st century and to explore alternate ways of selling the vinyl records. The new business will trade under the name ‘Tech-Record’ emphasising what the Group sees as a potentially high tech sales business.

Currently, although ostensibly one company, each shop runs almost independently of the others buying in stock locally at record fairs and from members of the public. Enquiries taken at any one shop for particular vinyl records which are not in stock are often passed on by telephone to the other shops in the chain. Some are bought from an independent wholesaler called 'Music Artefacts'. Shop accounts are held locally and come together each month at a general chain meeting of shop managers.

Currently there are a single fixed line telephone (line provided by BT plc), a standalone electronic till and a PC with printer last replaced three years ago used in shops. This is used primarily for local word processing via Word 2003 e.g. the occasional letter to a customer or local organisation and simple posters for inside the shop and the shop window etc.

Each month shops managers meet at the Head Office in London to discuss the problems and opportunities in their business. Sales and financial reporting is also undertaken monthly during these meetings.

The organisational structure of the company and the staff structure are in appendixes.

Need for the development of IT-strategy and methodology of implementation of IT

After the acquisition of shops, the Group plans to change the sales strategy in shops and the overall image of the company to be more modern and to follow the technological trends in business. To survive and prosper in today’s highly competitive and fast changing business environment, the Group should develop its sales and marketing strategy with emphasis on the development of new sales channels (Internet, mobile telephony etc) with the special marketing and promotion initiatives to support this strategy.

The existing condition of IT-infrastructure does not support plans of Group in business development. Along with business development strategy the Group needs to develop the IT-strategy that would support the business initiatives of the Company. So the IT manager of the group proposes to contact a consultancy firm. He can then supervise and direct the path as the project is being developed.

Network-team consultancy offers the professional service on development IT-infrastructure strategy of ‘Tech-Record’ Ltd for the period of three years. This strategy fully supports the vision of the Group and business development strategy for the three-year period (see "2.2. Strategy for implementing IT during the first three years"). Within the vision of the team, the IT-strategy consists of four stages:

Preparation stage.

Consultancy stage.

Implementation stage.

Further support and development stage.

According to the decisions between the group and the team and agreed by the IT manager this document is the blue-print of the project and the Group would like the project completed within a six month period. Within the three-year IT-strategy developed for the customer, the team intends to implement Preparation, Consultancy and first two sub-tasks of Implementation stages (see "2.2. Strategy for implementing IT during the first three years") within the six-month term.

Figure1. Components of the Software Ownership Life Cycle

1.3 Project deliverables

The team suggests that to succeed in 21st century the Company should properly and effectively use IT solutions to organize its business and to respond the challenges of the market. With the rapid development of Internet and exponential increase of Internet users, today companies consider Internet-sales and e-commerce as a significant "add-on" to the traditional "high-street" sales (Internet and e-commerce benefits for start-ups and small business are considered in "2.1. Is IT necessary or desirable for a business start-up?" in more detail). Professional and individual approach in every project, the team of highly qualified the teams and implementation team and flexible project pricing policy are most distinguishing character of the team.

Cooperation within this project will give the Client:

The long-term professional IT-infrastructure development strategy;

The virtual private network (VPN) that will connect all shops in one network;

The web-site with modern and attractive design and with the e-commerce component;

The front-office or Customer Relationship Management (CRM) system that would include such modules as sales force automation, marketing automation, customer support and service and web-site integration component. The CRM-system will help to automate the entire customer lifecycle, allow the sales personnel to take real orders from customers quickly and easily, to track commissions automatically and accurately, without requiring the use spreadsheets, to fully encompass the web and e-mail marketing, to provide better, more accurate sales forecasts, to show the true marketing effectiveness and ROI and, thus, the system will help to accelerate the sales process;

The back-office or Enterprise Resource Planning (ERP) system with one consolidated database. This will include such modules as financial management, inventory and supply chain management, order processing management, human resources management (HRM), business intelligence, purchasing, inventory management, billing and invoicing, payroll, front office and website integration component. The ERP-system will help employees to have up-to-date information about the company business that supports them to move faster and smarter, to serve customers better, filling and tracking orders more quickly and easily, with inventory levels updated in real time, and with full visibility into inventory by the sales personnel for order promising and by planning personnel for purchasing, the company can lower inventory levels, analyse the inventory costs and collaborate with suppliers more effectively. The back-office system would be the powerful tool for the sales support in business development strategy of the company.

Further support and development of IT-infrastructure. Professional implementation and support team of the team will help the group to further develop the IT-infrastructure and implement additional software systems required by the customer.

The team profile

ITS Consultancy Group is the one-stop-shop IT-Consultancy company with the team of highly qualified specialists. With more than 10 years of history and overall 100 years of all staff’s experience, the company can implement the business software and IT-solutions of any complexity within the strict timeframes. The company has established the partnership relations with such hardware and software vendors as HP, Cisco, Linksys, APX, Microsoft, NetSuite. Specialists of the company have certificates from vendor-partners.

Services of the company can be divided into three main directions:

Consultancy: development of feasibility report, contingency plan for the implementation of the IT system with calculations of project economic efficiency;

Implementation of Corporate Information Systems (ERP, CRM, SCM), LAN, WAN and VPN for the small and medium business (SMB), development of the web-site with e-commerce component

Outsourcing of SMB IT-infrastructure.

The team believes that the most effective and efficient way to manage projects and implement IT when budgets are tight and resources are limited is with a streamlined and comprehensive Project Management Approach and highly qualified experts. The team’s certified specialists can help the customer to develop a project management framework proven to help facilitate such efficiency and effectiveness.

2 IT STRATEGY

2.1 Is IT necessary or desirable for a business start-up?

It is recognised that information empowers people to be more involved with the business and that the acquisition, analysis, storage and proper use of information is vital to the survival of businesses in this competitive world. So, we can observe the rapid development of information systems and solutions as for the automation of whole company business processes (ERP-systems), as systems for the certain department in the company (Accounting, Payroll, HR etc). This kind of systems thought to be the prerogative of medium and large companies. But what about small companies and start-ups? According to the statistics 83% of SMBs and start-ups believe that application software improves the efficiency of core operations and business processes, and 80% of SMBs believe that software improves workforce productivity (Figure 1). Additionally, 75% believe that software improves the quality of products and services (Wang, 2006).

Figure 2. "At your company, to what extent does application software currently supports the following?"

(1 – not at all to 4 – to great extent)

Base: 812 software decision-makers at North American SMBs ("not applicable" responses not included)

Source: North American and European Technographics® SMB Software Survey, Q3 2006

SMBs and start-ups have different demands and business processes rather than large companies. With unique requirements that demand full capabilities without complexity these kind of customers seek practical solutions with quick return on investment (ROI). So along with the "horde" of special software solutions for this kind of customers in the market (from self-developed "no name" systems to famous brands like Sage), we can see that traditional large-business software vendors like SAP, Oracle have also responded to these demands with significant product and channel investments. The result is improvement across the spectrum of industry-specific and last-mile capabilities, usability, rapid implementation, Microsoft Office integration, and mobile solution support.

Information Systems (IS) are more than just hardware/software and wires. They are tools which are used to add value to the operations of the organization. Correspondingly the implementation of the IS should be accompanied by the clear understanding of efficiency of the investments on IS. Let’s observe how start-ups and small business can benefit from implementation of IS. Although start-ups can use the IT in a wide areas of their business, we will mainly consider the benefits of IT in financials, sales and marketing spheres.

Financials

Accounting and financial analysis are the most important aspects of starting and operating a business. Without solid understanding and setting-up financial data business will not survive. Over 28% of businesses declaring bankruptcy cite problems with the financial structure of the company as the main cause of failure (Small Business Administration study, 2008). Accounting and financial analysis software systems are of great support to run the financial life of the company smoothly. There are several software systems for the small business and start-ups like Sage Start-Up, Intuit QuickBooks, Microsoft Small Business Accounting as well as the components of ERP-systems (e.g. SAP, Oracle, Epicor) with the customised solutions for small business.

Software systems help the small company and start-up to run the bookkeeping in unified database smoothly, prepare the up-to-date financial reports very quickly, and have good records for taxation and payroll purposes. In general this kind of systems will enable the company to make well informed and support the management to take important business decisions quickly, empower them on working with third parties such as banks, accountants and others.

Sales and Marketing

Internet and e-commerce are powerful tools for small firms and start-ups. Access to the Internet continues to transform the way we live and the way business is conducted. Millions of small firms are using websites to sell products and services. Virtually every product sold in traditional retail outlets is now sold over the Internet (Moore, Gooderl, 2008).

Today’s digital economy makes an e-commerce very beneficial for start-ups. Basically, e-commerce offers the new firm the opportunity to compete with bigger business in a more level playing field. Limited resources frequently restrict the ability of small firms to reach beyond the local markets. Confined to their brick-and-mortar world, small firms typically serve a restricted geographic area. But Internet widens geographic boundaries. E-commerce allows any business access to customers almost anywhere. Internet is providing to be a great equalizer, giving small firms a presence comparable to that of giants in the marketplace.

An e-commerce operation can help the start-up with early cash flow problems by compressing the sales cycle that is, reducing the time between receiving an order and converting the sale to cash. E-commerce systems can be designed to generate an order, authorise a credit card purchase and contact a supplier and shipper in a matter of minutes, all without human resource assistance. The shorter cycle translates into quicker payments from customers and improved cash flows to the business.

The e-commerce also enables small firms to build on one of their greatest strengths – customer relationships. The Internet has brought new life and technology to bear on the old-fashioned notion of customer service. E-CRM is an electronically based system that emphasizes customer relationships. At the heart of e-CRM is a customer-centric data warehouse. A typical e-CRM system allows an e-commerce firm to integrate data from websites, call centers, sales force reports and other customer contact points, with the goal of building customer loyalty.

Strategy for implementing IT during the three-year period

Vision of Client’s business and determining of problems

Tech-Record has reached the next step in its development. When shop chains were under the "Spinner’s" possession the only sales channel was the direct sales in shops. The company was satisfied with the sales and, probably, with the profit it was earning so far. But faced with strict competition in music retail market (as a result of rapid development of CD, DVD and other music and data carriers) and the shrinking of the potential clients volume (as a belief that the main buyers of vinyl records are "old-aged" people), the decided to change its sales structure and business concept.

After the careful study of the coursework briefing and creating the general knowledge on Client’s business, the team determined main problems preventing the development of the company as following:

Absence of clear business plan and strategy of development;

The poor organisational and informational support of sales process;

Unorganised approach in purchase and sales of goods, each shop runs independently of the others buying in stock locally at record fairs and from public;

Absence of corporate network and unified corporate database, as a result each shop stores the fragmentary data;

The lack of business information interchange between shops, as a result not sufficient information about the stock;

The poor Human Resource Management (HRM) policy;

The sales and customer relations are limited within the one sales channel (shops) and lack of coordination in CRM throughout the whole shops chain;

The absence of back-office system supporting the up-to-date financial, business and sales information about the company;

The absence of company web-site;

The Group aims to run the costs down to a minimum commensurate and merchandise the vinyl records by investing on IT, but there is no vision on how IT would help them to achieve these goals.

The team assumes that to survive in modern business reality the client should change its business-model and use IT to support this model. First of all, client should develop the marketing and promotion plan to attract more clients with different age and social status and to keep the existing ones. The Client should shape the image of modern company who uses IT and Internet to develop in 21st century.

IT-strategy developing by the team would support the client’s business strategy; increase the profitability and the control of business operations of the company. The strategy is developed for three years period and within the strategy the team plans to establish the centralized corporate IT-infrastructure, including the building of unified corporate network based on Virtual Private Network (VPN) technology and connecting all shops in one network, developing the company web-site, enabling to sell vinyl records and accessories directly from the web-site, implement the front-office CRM-system, integrating with the company web-site, implementation of back office ERP-system in all branches and integration of front and back-office systems. The conceptual model of corporate IT-infrastructure of Tech-Record Ltd is described in fig. 3.

Figure 3. Conceptual model of IT-infrastructure of Tech-Record Ltd.

CRM

Front-office

MUSIC ARTEFACTS

RECORD FAIRS

PRIVATE COLLECTORS

LONDON

Norwich

Slough

Cardiff

Colchester

London

CLIENTS

TECH-RECORD

SUPPLIERS

WEB-SITE

ERP

The strategy would be carried out according the methodology of the team and would be based on the fractional approach. In other words, the methodology assumes the step-by-step implementation of the strategy stages that would make easier to measure the efficiency of the project within each stage and to track the overall project plan easily.

Methodology

Development of the company IT-strategy is very responsible task and crucial for the further development of the Client’s business. Therefore, this process should be carried out with the deep consideration of the benefits or economic effects and risks related with the project. Main factors of efficient realization of the IT-strategy are the participation of the company top-management within each stage of the project and clear implementation methodology of the strategy (see the Table 1).

Within the methodology, the development of company IT-infrastructure is divided into four stages:

Preparation stage

Consultancy stage

Implementation stage

Further support and development stage

Preparation stage

In this stage the team’s team will make all necessary preparations for the project. This will include confirmation of the terms and conditions of the project, resources that will be used in the project, confirmation of the detailed project plan with timescales and the final budget of the project. This stage wears the administrative hat and outlines the overall success of the whole project.

Workpackage 1. Confirmation of the terms and conditions of the project

Aims of this workpackage are:

Development of the terms and conditions of the collaboration between the team and the client with the list of resources used during the first six months of the project (contract);

Presentation of the contract to the management of the client;

Making necessary corrections according to notes of the client;

Confirmation and signing of the last version of the contract.

As a result we will have the signed contract reflecting terms and conditions of the collaboration between the team and the client.

Workpackage 2. Confirmation of the detailed roadmap of the IT-strategy and time-table of the project for the six-month period

Aims of this workpackage are:

Development of the detailed roadmap of the IT implementation strategy and the detailed plan for the first six months of the strategy

to the management of the client;

Making necessary corrections according to advises of the client;

Confirmation of the last version of the IT-strategy roadmap and detailed implementation plan for the six months.

As a result we will have the matrix of the implementation of the IT-strategy with a sectional view divided into days, weeks, months, quarters and years’ structure and the detailed plan for the first six months.

Workpackage 3. Confirmation the final budget for the six months of the project

Aims of this workpackage are:

Identification of overall resources (human, hardware, software, rooms rent and others) used within the six-month project;

Calculation of project resources and development of the final budget;

Preparation of alternative budget options;

Presentation of the final budget to the management of the client;

Making necessary corrections according to advises of the client;

Confirmation of the final version of the budget.

As a result we will receive the detailed and confirmed budget for the six-month project.

Overall duration of this stage is one month (22 working days).

Consultancy stage

Consultancy stage is the crucial part of the project and this process would help the team to analyze the business-problems of the company for definition of most suitable IT-solution with appropriate calculation of total cost of ownership (TCO), return on investment (ROI) and other economic efficiency parameters of implementation of IT-solution. As a result of this stage the team will develop the project feasibility report and IT-implementation technical plan and requirements for the implementation. These documents would be the ground for the implementation stage.

Workpackage 4. Detailed study of the document workflow and business processes of the company

Aims of this workpackage are:

Detailed study of company business processes, the work of each department and determination problems within these processes

Detailed study of the documents and reports that should be automated within front-office and back-office systems

Development of nomenclature of documents, reports and business algorithms that would be involved in front and back-office system and should be automated;

Confirmation of nomenclature of documents, reports and business algorithms.

As a result we will receive the full nomenclature of documents, reports and business processes that should be automated within CRM and ERP-systems.

Workpackage 5. Formation of the conceptual model of the company IT-infrastructure

Aims of this workpackage are:

Preparation of conceptual model of the company’s IT-infrastructure with a sectional view of each business process in this model;

Using the results of previous task building of the architecture of the company’s front and back-office systems working on the routes and business algorithms;

Development of the structural view of the conceptual model using All Fusion Process Modeller 7 (BPwin);

Development of the necessary regulating documents for the model;

Presentation and confirmation the conceptual model with corresponding documentations and making necessary corrections.

As a result we will receive the graphical and conceptual model of how the front and back-office systems would look like and how they would work. This conceptual model will be accompanied with the regulating documents and the detailed advises on implementation of the system according to special needs and problems of the company and the type of the business processes.

Workpackage 6. Development of the detailed IT-Strategy for the following 3 years and IT-implementation program for the six-month project

Aims of this workpackage are:

Using the results of the results of previous workpackages, developing the strategy of development of the company’s IT-infrastructure for the 3 years period;

Overview of the front and back-office system vendors and choosing the most appropriate IT-solution for the client;

Estimation of economic efficiency of the project and preparation of the technical-and-economic assessment report with the alternative approaches in IT-implementation process;

Development of the total cost of ownership (TCO) and the budget for the 3 years IT-infrastructure establishment strategy;

Development of the IT-implementation program for the six-month project with the detailed time-table and budget within the overall IT-strategy;

Presentation of the IT-strategy for the three years and six-months IT-implementation program for the management of the client;

Making necessary improvements for documents according the recommendations of the client and confirmation of documents.

As a result of the consultancy stage we will have very important documents - IT-Strategy for the following 3 years and detailed IT-implementation plan for the first six-month project. These documents would be the roadmap for the company in development of the IT-infrastructure for the 3 years period and beyond and the basic "guideline" for the implementation team.

Overall duration of consultancy stage is two months (43 working days).

Implementation stage

Implementation stage is a main and most responsible part of the project. The success of this stage directly depends on the harmonious collaboration of the teams, implementation team and the client’s personnel. This stage is based on the consultancy stage and the success of implementation of IT strategy depends on the competent project management and documents developed on consultancy stage.

Workpackage 7. Establishing the virtual private network (VPN) connecting all shop in one network, purchasing and renewal of hardware

Within the IT-strategy it is assumed to launch a research on detailed study on benefits and drawbacks and cost estimation of the optimal VPN technology solution for the client: whether on traditional IPSec (Internet Protocol Security) VPN or Web-based, application layer SSL (Secure Sockets Layer) VPN. Here we will briefly describe the difference between two technologies and make first steps to choose the most appropriate option for the client.

IPSec VPNs use the IPSec protocol to provide secure exchange of IP packets. An IPSec compliant device can be either hardware or software based. Typically, these devices sit between the public and private network at both ends of the communication points. Information sent from the private network passes through the device, where it is encrypted, sent over the public network, and accepted by the remote side. IPSec VPNs are best suited for site-to-site connections that require large, constant data transfers. They are also a good choice for tying remote LANs together over distances where network access is limited to IT-controlled personal computers (PCs). However, when used for distributed users that need access to centralized applications from numerous remote locations, IPSec VPNs present significant drawbacks.

Other then IPSec, SSL is an open-standard Web protocol that provides server authentication, data encryption, and message integrity over TCP/IP connections. Since originally developed by Netscape to secure electronic commerce transactions, SSL has evolved into one of the leading security protocols throughout the Web. The integrated security afforded by SSL ensures confidence in business-critical data transfers. As a result, SSL has become the de facto standard for supporting private transactions such as credit card purchases and online stock trading and banking. All transactions, from passwords and email access to application and file sharing can be secured with SSL, making eavesdropping on communications and stealing user passwords extremely difficult. The main benefit of this technology is that applications for end users access reside not on the remote PC, but rather on the application servers located in the main corporate network. This is an ideal way to provide extranet partners, branch offices, remote facilities, or mobile employees with secure, cost-effective and easy access to virtually any type of business application, without requiring the time and effort of an onsite visit to install client copies of each program.

After the study of the client’s business, on this step of the proposal, we assume that for small businesses like Tech-Record, the most efficient option is SSL VPN, as this technology performs the lower TCO and easier to establish and maintain across the clients’ shops chain.

Within this workpackage:

Final configuration of the VPN architecture, developing the specifications and configuration of the network equipments, sending the specification to the client;

Configuration of the server, PC-Clients and POS-terminals should be installed in shops and in head office, sending the specification to the client;

Installing the network equipment (firewalls, switchers, routers etc) and computer equipment (server, PC-clients, POS-terminals);

Connecting all shops to Internet, establishing VPN via SSL;

Installing VPN management software system and remote control server software;

Technical testing and launching of VPN;

Signing the appropriate documents with client on completion of this part of the project.

The VPN is a transport of data interchange between shops and Head office of Tech-Record Ltd. On successful completion of this workpackage the client will have the secure and flexible VPN solution, which would be the base "polygon" for the implementation of front and back-office systems.

Workpackage 8. Development of the new web-site with e-commerce component

Company web-site is a powerful tool for the enhancement of sales and customer relation processes and the "face" of the client in the virtual world. On how the company effectively uses this tool and makes the effort for its perfection, depends the overall success of the client in 21st century., Referring to the new image of the client and its aspiration to transform the business into potentially high tech sales business, the team offers the service on the development of the new web-site for the client, enabling to sell its products in Internet.

Within this workpackage it is planned to:

Develop the design of the new web-site according the requirements of the client;

Coding, filling the content, setting the billing and ordering components into the web-site;

Confirming the overall web-site design with the client and testing the e-commerce engine;

Launching, registering the domain name and hosting.

This task will finish the first six-month phase of the overall IT-strategy. On successful completion of this part of the project the client will have the attractive web-site with powerful e-commerce component.

Workpackage 9. Implementation of front-office CRM-system, integration with company web-site

Aims of this workpackage are:

Installation of front office CRM-software in PC and POS-clients;

Developing the unified database of the system in central server;

Customisation of components of the system according to the technical requirements and specific needs of the Client;

Training of sales and marketing personnel on effective using of the system;

The commercial launch of the CRM-system.

Workpackage 10. Implementation of back office ERP-system

Aims of this workpackage are:

Installation of the back-office ERP-system in PC-clients of each shop;

Consolidation of the database in Head Office;

Customisation of the components of the system according to the technical requirements, specific needs of the Client and legislation procedures;

Training of financial, commercial and logistics personnel on effective using of the system;

The commercial launch of the ERP-system.

Workpackage 11. Integration of front-office with back-office system

Aims of this workpackage are:

According to the business logics developing the front and back-office integration algorithm;

Integration of components of front and back-office systems;

Functional and logical testing the integrated system;

Making necessary correction to the system code and launching.

Further support and development stage

During the support and development stage, the team will help the Client effectively use the system and further develop it according the development of the business. This stage consists of technical support according to the contract between the team and Client and further update and development of the system.

Workpackage 12. Technical support according to the contract

Aims of this workpackage are:

Technical support of the front and back-office systems according to the contract;

Further support of the Client’s staff on effective work on the systems;

Other maintenance work.

Workpackage 13. Further update and development of the system

Aims of this workpackage are:

Updating the front and back-office systems according new releases of the vendor;

Developing the certain components of systems and adding additional functionalities to systems within the development and changing of business-processes of the Client.

Table 1. The methodology of the development of the IT-infrastructure within the strategy

â„–

Stages

Years

1

2

3

I qtr

II qtr

III qtr

IV qtr

I

Preparation stage

1.1.

Confirmation of the terms and conditions of the project (organisational issues);

1.2.

Confirmation of the detailed roadmap of the IT-strategy and timescale for the six- month project;

1.3.

Confirmation the final budget for the six-month project;

II

Consultancy stage

2.1.

Detailed study of the document workflow and business processes of the company

2.2.

Formation of the conceptual model of the company IT-infrastructure

22.3.

Development of the detailed IT-Strategy for the following 3 years and IT-implementation program for the six-month project

III

Implementation stage

3.1.

Establishing the virtual private network (VPN) connecting all shop in one network, purchasing and renewal of hardware

3.2.

Development of the new web-site with e-commerce component

3.3.

Implementation of front-office CRM-system, integration with company web-site

3.4.

Implementation of back office ERP-system

33.5.

Integration of front-office with back-office system

IV

Further support and development stage

4.1.

Technical support according to the contract

4.2.

Further update and development of the system

PROJECT PLAN

3.1 Work Breakdown Structure of the project

1.1. Confirmation of terms and conditions of the project (organisational issues)

Development of terms and conditions;

Development project contract for 6 months;

Presentation of terms and conditions and contract;

Confirmation

1.2. Confirmation of IT-strategy roadmap and six- month project plan

Development of the IT-strategy roadmap and project plan;

Presentation of roadmap and plan

Correction and confirmation

1.3. Confirmation the final budget for the six-month project

Identification of overall project resources

Calculation of the final budget

Preparation the alternative budget options

Presentation and confirmation

1. Preparation stage

2. Consultancy stage

2.1. Study of the document workflow and business processes

Study of company business processes;

Study of documents and reports for automation;

Development of the nomenclature of documents, reports and business processes for automation

Confirmation of the nomenclature

Cont’d from last page

2.2. Formation of the conceptual model of the company IT-infrastructure

Preparation of conceptual model;

Building of the architecture of the company’s front and back-office systems;

Building a structural view of the conceptual model using AllFusion Process Modeler 7;

Presentation and confirmation

2.3. Development of IT-Strategy for 3 years and program for the six-month project

Development of IT-Strategy for 3 years

Overview of front and back-office system vendors and choosing IT-solutions

Estimation of economic efficiency and technical-and-economic assessment report

Implementation program for the six-month project

3. Implementation stage

3.1. Establishing the virtual private network (VPN)

Configuration of the VPN architecture, developing specifications for network equipment

Configuration the server, PC-Clients and POS-terminals

Installation of the network and computer equipment

Connecting all shops to Internet, establishing VPN via SSL

Testing and launching of VPN

3.2. Development of the new web-site

Development of the design of the new web-site

Coding, filling the content, setting the billing and ordering components

Confirming the overall web-site design with the client

Launching, registering the domain name and hosting

Comprehensive list and supporting commentary of resources (for overall IT-strategy)

ResourcesUnit of measureQuantity

Source

Human resources

Project managerSpecialist1

Tech-Records

IT ConsultantSpecialist2

Network-team consultancy

IT implementation specialistsSpecialist5

Network-team consultancy

Network engineerSpecialist3

Network-team consultancy

Web-developerSpecialist1

Network-team consultancy

Client management and staff

Tech-Record

Hardware

Network

Firebox Edge X55eFirewallPcs8

academy-networks.co.uk

ProCurve 3500yl Switch (J8692A)Pcs1

HP UK

ProCurve 800 Network Access Controller (J9065A)Pcs1

HP UK

ProCurve 7000dl Secure Router (J8752A)Pcs1

HP UK

Linksys EtherFast Cable/DSL VPN Router (BEFVP41)Pcs7

Amazon.co.uk

BOOTED RJ45 Patch LeadsMeter2000

comms-express.com

RJ45 UTP Cat5e 8 Way PlugPack2

comms-express.com

Excel Split-R Pair - 1 RJ45 Data Port/2 Voice Ports Pcs15

comms-express.com

Excel Split-R 1u RJ45 25 Port Patch PanelPcs1

comms-express.com

Server

HP ProLiant ML370 G5 Server (P/N: 458341-031)Pcs1

HP UK

HP 146GB 10K rpm Hot Plug SAS 2.5 Dual Port Hard Drive (P/N: 418367-B21)Pcs3

HP UK

HP StorageWorks D2D100 Backup System (P/N: EH884A) Pcs1

HP UK

HP ProLiant ML370/350 G5 Parallel/Serial Port Option Kit (P/N: 401222-B21)Pcs2

HP UK

HP 8 Internal Port SAS HBA with RAID (P/N: 347786-B21)Pcs1

HP UK

HP ProLiant W2K Server Keyboard (P/N: AC110A)Pcs1

HP UK

HP Optical Scroll Mouse, USB (P/N: DC172B)Pcs1

HP UK

HP T750 G2 T1000 G3 and T1500 G3 Uninterruptible Power System (P/N: F451A)Pcs1

HP UK

HP L1710 Flat Panel Monitor (GS917AT)Pcs1

HP UK

Office hardware and POS-terminals

HP Compaq dx2400 Microtower PC (P/N: KV354ET)Pcs25

HP UK

HP L1710 Flat Panel Monitor (GS917AT)Pcs25

HP UK

Pcs1HP LaserJet M2727nf Multifunction Printer

(CB532A)

HP UK

HP LaserJet M1120 Multifunction Printer (CB537A)Pcs7

HP UK

APX Essentials POS-terminalPcs25

accupos.co.uk

Software

NetSuite Accounting / ERPLicense25

NetSuite Inc

NetSuite CRM+License25

NetSuite Inc

ProCurve Mobility Manager Software (J9291A)License1

HP UK

Microsoft Office 2007 Small Business EditionLicense25

Amazon.co.uk

HP Integrated Lights Out (ILO) Advanced Pack No Media Tracking License (452143-B21)License1

HP UK

Special software (BPwin, Adobe Dream viewer, CSS, PHP)

Network-team consultancy

Other

Transportation

Network-team consultancy

Office stationery and binding

Network-team consultancy, Tech-Record

Office space

Network-team consultancy, Tech-Record

Chairs and tables

Network-team consultancy, Tech-Record

Internet

Network-team consultancy

Telephone (mobile and landline)

Network-team consultancy, Tech-Record

PC and laptops for specialists

Network-team consultancy

Domain name registration

net2.co.uk

Hosting

HostPapa UK

The comprehensive list of resources is for the implementation of the entire IT-strategy of the client during the 3-year period. The consultant has the partnership relations with the main hardware and software vendors and is able to arrange ordering and shipment services for the client.

Project cost (Budget for the six-month project)

Name of the cost

Cost per unit

Unit of measure

Quantity

TOTAL, £

Staff

Project manager (1)

£18.94

Person-hours

1032

£19 546.08

IT Consultants (2)

£18.76

Person-hours

688

£12 906.88

Network engineers (3)

£16.57

Person-hours

816

£13 521.12

Web-developer (1)

£17.70

Person-hours

240

£4 248.00

Total Directly Incurred Staff (A)

£50 222.08

Non-Staff

Hardware

£40 683.78

Network

£12 175.78

Firebox Edge X55eFirewall

£545.00

Pcs

8

£4 360.00

ProCurve 3500yl Switch (J8692A)

£2 852.00

Pcs

1

£2 852.00

ProCurve 800 Network Access Controller (J9065A)

£2 321.00

Pcs

1

£2 321.00

ProCurve 7000dl Secure Router (J8752A)

£944.00

Pcs

1

£944.00

Linksys EtherFast Cable/DSL VPN Router (BEFVP41)

£103.94

Pcs

7

£727.58

BOOTED RJ45 Patch Leads

£0.32

Meter

2000

£640.00

RJ45 UTP Cat5e 8 Way Plug

£10.35

Pack

2

£20.70

Excel Split-R Pair - 1 RJ45 Data Port/2 Voice Ports

£16.10

Pcs

15

£241.50

Excel Split-R 1u RJ45 25 Port Patch Panel

£69.00

Pcs

1

£69.00

Server

£6 596.00

HP ProLiant ML370 G5 Server (P/N: 458341-031)

£3 665.00

Pcs

1

£3 665.00

HP 146GB 10K rpm Hot Plug SAS 2.5 Dual Port Hard Drive (P/N: 418367-B21)

£219.00

Pcs

3

£657.00

HP StorageWorks D2D100 Backup System (P/N: EH884A)

£1 759.00

Pcs

1

£1 759.00

HP ProLiant ML370/350 G5 Parallel/Serial Port Option Kit (P/N: 401222-B21)

£15.00

Pcs

2

£30.00

HP 8 Internal Port SAS HBA with RAID (P/N: 347786-B21)

£69.00

Pcs

1

£69.00

HP ProLiant W2K Server Keyboard (P/N: AC110A)

£15.00

Pcs

1

£15.00

HP Optical Scroll Mouse, USB (P/N: DC172B)

£15.00

Pcs

1

£15.00

HP T750 G2 T1000 G3 and T1500 G3 Uninterruptible Power System (P/N: F451A)

£289.00

Pcs

1

£289.00

HP L1710 Flat Panel Monitor (GS917AT)

£97.00

Pcs

1

£97.00

Office hardware and POS-terminals

£21 912.00

HP Compaq dx2400 Microtower PC (P/N: KV354ET)

£228.00

Pcs

25

£5 700.00

HP L1710 Flat Panel Monitor (GS917AT)

£97.00

Pcs

25

£2 425.00

HP LaserJet M2727nf Multifunction Printer

(CB532A)

£409.00

Pcs

1

£409.00

HP LaserJet M1120 Multifunction Printer (CB537A)

£129.00

Pcs

7

£903.00

APX Essentials POS-terminal

£499.00

Pcs

25

£12 475.00

Software

£6 864.00

ProCurve Mobility Manager Software (J9291A)

£1 145.00

License

1

£1 145.00

Microsoft Office 2007 Small Business Edition

£220.00

License

25

£5 500.00

HP Integrated Lights Out (ILO) Advanced Pack No Media Tracking License (452143-B21)

£219.00

License

1

£219.00

Total Directly Incurred Non-Staff

Hardware and Software (B)

£47 547.78

Other Expenses

Transportation

£28.00

Days

129

£3 612.00

Office stationery and binding

£831.00

Internet/mobile telephone

£7.2

Days

129

£928.80

Domain name registration

£9.99

Yrs

2

£19.98

Hosting

£2.99

Months

12

£35.88

Total Directly Incurred Non-Staff

Other Expenses (C)

£5 426.86

Total Project Cost (A+B+C)

£103 196.72

4. BIBLIOGRAPHY AND LIST OF REFERENCES

A functional and Cost Comparison of VPN solution: SSL vs. IPSec. (2002) Netilla Networks, Inc.

Carlos W. Moore, Justin Gooderl.(2001) Managing Small Business: An Entrepreneurial Emphasis. Cengage Learning EMEA,

Coombes H. (2001). Research Using IT (Palgrave)

CUP135C Business Start up Flexible Learning Material, weblearn.londonmet.ac.uk, (2009)[accessed on 23/01/10 ]

Freedman R. (2003). Building IT Consulting Practice (Jossey-Bass/Pfeiffer)

Greenfield T. (2002). Research Methods for Postgraduates, 2nd edition (Arnold-Bristows)

HostPapa Company, http://www.hostpapa.co.uk/bogof_offer.shtml,[ last accessed 24/01/2010]

IT Jobs Watch. Paradigm Software (UK) Limited, http://www.itjobswatch.co.uk,[ last accessed on 24/01/2010]

Managed VPN. Customer’s guide to how it works version 1.2. Orange Business Services, 2009

NetSuite Inc., http://www.netsuite.com,[ last accessed 24/01/2010]

North American and European Technographics® SMB Software Survey, Q3 2006

Paul Graham. How to Start a Startup. March 2005. http://www.paulgraham.com/start.html, [last accessed 23/01/2010].

Phillips J. (2002). IT Project Management: On Track from Start to Finish (McGraw-Hill/Osborne)

R "Ray" Wang and Paul D. Hamerman. Topic Overview: ERP Applications 2008. Forrester Research. June 24, 2008

R "Ray" Wang. Competition Intensifies For The SMB ERP Customer. Forrester Business Technographics® data. August 13, 2007

Reiss G. (2007). Project Management Demystified (Taylor & Francis)

Sage Start-Up: Features, http://www.sage.co.uk/software_and_services/finances/sage_start-up/features.aspx, [last accessed 24/01/2010]

Top 10 Small Businesses CRM. Vendors Revealed – 2009. Profiles of the Leading CRM Vendors. Business-Software.com, [Last accessed0n 25/01/10]

Top 12 ERP Software Vendors – 2009. Profiles of the Leading Vendors. Business-Software.com,[Last accessed0n 25/01/10]

5 APPENDIXES

Shops structure of Tech-Record Ltd

Organizational chart of Tech-Record Ltd