Identification of Problem
Various technological elements and resources are combined for developing an information system. The system takes data input form various sources and process those data to create useful information. Information Systems are capable of aligning the internal and external factors of system. The system will be providing various operational support to Cotton On Group staff and assist the management in decision making.
The report consists of suggestions for developing information system within Cotton On Group. The organization will implement the system in two-fold, one for internal operations and other one is for customers. The staff of Cotton On Group will execute their works through the system such as managing inventory, resolving customer issues and many more. The customers of Cotton On Group will access the e-commerce website to order cloths.
Problem Description: Organizations are moving toward digitalization for improving the productivity and managing customer relationship. Cotton On Group on the other hand, is facing numerous operational and other business related issues for having manual processes through whole organization. The customers have to book orders through phone, mail or being present at retail store physically. Cotton On Group’s customers often feel irritated and annoyed as they do not get any proper response from customer service representatives about the status of their orders.
This era is all about marketing. Product promotion and placement is the key of improving the sales. Cotton On Group does not have any proper process to analyze the buying patterns of the customers, thus faces issues and challenges in product promotion. The organization did not introduce any innovative product in market for a very long time. From losing customers to slow operational procedures, Cotton On Group is facing various problems in their current paper and spreadsheet based business model.
System Capabilities: The Cotton On Group’s information system is expected to be capable of following things.
- Real time data flow will be the biggest capability of the proposed system. The system can share the last collected information in no time with the authorized users.
- Holding data for a very long time will be another capability of the system. The database can hold data for at least ten years. The management decision making will be hugely benefitted due to presence of all the information.
Expected Business Benefits:
- The organization will be able to improve the relation with present customers as well as attract new customers
- The management will have accurate information regarding the product availability in inventory
|
WBS |
Task Name |
Duration |
Start |
Finish |
|
0 |
Cotton On Group System Implementation |
138 days |
Thu 8/9/18 |
Mon 2/18/19 |
|
1 |
Planning |
35 days |
Thu 8/9/18 |
Wed 9/26/18 |
|
2 |
Requirement Gathering and Analysis |
19 days |
Fri 9/21/18 |
Wed 10/17/18 |
|
3 |
Design Phase |
28 days |
Thu 10/18/18 |
Mon 11/26/18 |
|
4 |
Implementation Phase |
47 days |
Tue 11/6/18 |
Wed 1/9/19 |
|
5 |
Testing Phase |
62 days |
Fri 11/23/18 |
Mon 2/18/19 |
|
6 |
Deployment Phase |
18 days |
Wed 12/5/18 |
Fri 12/28/18 |
|
7 |
Review Phase |
32 days |
Mon 12/17/18 |
Tue 1/29/19 |
|
Task Name |
Cost |
|
Cotton On Group System Implementation |
AUD 47,912.00 |
|
Planning |
AUD 8,800.00 |
|
Meeting with Management and Decide Project Requirements |
AUD 528.00 |
|
Employee Team Members |
AUD 0.00 |
|
Recognizing Requirements of the Project |
AUD 2,576.00 |
|
Make the Project Cost Estimation |
AUD 880.00 |
|
Generate the Project Schedule |
AUD 880.00 |
|
Verification of Plan |
AUD 1,584.00 |
|
Schedule a Meeting with Stakeholders |
AUD 528.00 |
|
Share the Plan with Stakeholders |
AUD 528.00 |
|
Discuss the Project Requirements and Constraints |
AUD 528.00 |
|
Share Responsibilities |
AUD 880.00 |
|
Schedule a Team Meeting |
AUD 1,472.00 |
|
Planning Phase Complete |
AUD 0.00 |
|
Requirement Gathering and Analysis |
AUD 6,720.00 |
|
Identify the Business Requirements |
AUD 1,344.00 |
|
Analyse the Business Requirements |
AUD 1,728.00 |
|
Generate System Requirements |
AUD 384.00 |
|
System Requirement Selection |
AUD 3,264.00 |
|
Analyse the Feasibility of Identified System Requirements |
AUD 816.00 |
|
Select the Feasible Requirements |
AUD 1,088.00 |
|
Prioritize the Requirements |
AUD 1,360.00 |
|
Requirement Gathering and Analysis Phase Complete |
AUD 0.00 |
|
Design Phase |
AUD 4,152.00 |
|
System Architecture Design |
AUD 256.00 |
|
System UML Diagrams Design |
AUD 576.00 |
|
Designing System Conceptual Database |
AUD 400.00 |
|
User Interaction Design |
AUD 400.00 |
|
User Interface Design |
AUD 640.00 |
|
Logical Database Design |
AUD 320.00 |
|
Converting Logical Model into Physical Model |
AUD 480.00 |
|
Designing Intranet Network |
AUD 1,080.00 |
|
Design Phase Complete |
AUD 0.00 |
|
Implementation Phase |
AUD 11,584.00 |
|
Interface of the Website |
AUD 1,040.00 |
|
Website MVC Architecture Implementation |
AUD 1,568.00 |
|
Code the Units of Internal System |
AUD 1,560.00 |
|
Website Development |
AUD 1,976.00 |
|
Code the Internal System |
AUD 832.00 |
|
Create the Database |
AUD 1,080.00 |
|
Install Network in Cotton On Retail Store and Office Premises |
AUD 2,808.00 |
|
Server Configuration |
AUD 720.00 |
|
Implementation Phase Complete |
AUD 0.00 |
|
Testing Phase |
AUD 12,128.00 |
|
Debug Backend Code |
AUD 2,128.00 |
|
White Box Testing |
AUD 960.00 |
|
System Function Manual Testing |
AUD 2,560.00 |
|
System Security Testing |
AUD 3,360.00 |
|
Testing Security of Server |
AUD 2,352.00 |
|
Testing Intranet Coomunication |
AUD 768.00 |
|
Testing Phase Complete |
AUD 0.00 |
|
Deployment Phase |
AUD 1,960.00 |
|
Internal System Go Live |
AUD 216.00 |
|
Website Go Live |
AUD 216.00 |
|
Deploy Database into Server |
AUD 288.00 |
|
Database and System Connection |
AUD 952.00 |
|
Generate URL of the Website and Internal System |
AUD 288.00 |
|
Deployment Phase Complete |
AUD 0.00 |
|
Review Phase |
AUD 2,568.00 |
|
Website Access Speed Check |
AUD 1,032.00 |
|
Data Validation Check |
AUD 1,088.00 |
|
Check Website Interaction |
AUD 448.00 |
|
Review Phase Complete |
AUD 0.00 |
|
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|
Overall savings |
$0 |
$50,000 |
$30,000 |
$35,000 |
$40,000 |
$30,000 |
|
Development cost |
($47,912) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Maintenance Cost |
($12,000) |
($6,000) |
($3,900) |
($5,000) |
($3,500) |
($3,500) |
|
Net benefit/costs |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
|
Net cash flow |
($41,912) |
$ 44,000.00 |
$26,100 |
$30,000 |
$36,500 |
$26,500 |
- Cotton On Group will not see financial profits immediately after deployment of the system. Recollecting the project expenses takes at least two years. As the organization is facing customer and marketing issues, it will take time to get hold on the market. The financial profits will happen abruptly based on the market condition.
- The management of predictive and detective internal control is considered to be the biggest tangible benefit. The data storing mechanism of the IS will be configured in a way that it can share data organization wide. The centralized distributed database will allow the authorized users to access the information.
- The system will allow Cotton On Group to have better access to customer needs and market situations. The organization will be more competitive and customer friendly. Better promotion of products will result in more sales. All of the above factors will directly improve the revenue of the system.
- The employees of Cotton On Group will concentrate on core work rather than paper management. The do not have worry about the accuracy and authenticity of the data.
|
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|
Overall savings |
$0 |
$50,000 |
$30,000 |
$35,000 |
$40,000 |
$30,000 |
|
Development cost |
($47,912) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Maintenance Cost |
($12,000) |
($6,000) |
($3,900) |
($5,000) |
($3,500) |
($3,500) |
|
Net benefit/costs |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
|
Net cash flow |
($41,912) |
$ 44,000.00 |
$26,100 |
$30,000 |
$36,500 |
$26,500 |
|
Discount factors |
||||||
|
Discount rate |
10% |
|||||
|
Year Index |
0 |
1 |
2 |
3 |
4 |
5 |
|
Discount factor |
1 |
0.91 |
0.83 |
0.75 |
0.68 |
0.62 |
|
Discounted flows |
||||||
|
Cost |
($47,912) |
($5,455) |
($3,223) |
($3,757) |
($2,391) |
($2,173) |
|
Benefit |
$25,000 |
$28,000 |
$17,000 |
$15,000 |
$25,000 |
$25,000 |
|
Net |
($22,912) |
$22,545 |
$13,777 |
$11,243 |
$22,609 |
$22,827 |
|
Cumulative |
($22,912) |
($367) |
$13,410 |
$24,654 |
$47,263 |
$70,090 |
|
Cost benefit analysis for Global Business System |
||||||
|
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|
Overall savings |
$0 |
$50,000 |
$30,000 |
$35,000 |
$40,000 |
$30,000 |
|
Development cost |
($47,912) |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Maintenance Cost |
($12,000) |
($6,000) |
($3,900) |
($5,000) |
($3,500) |
($3,500) |
|
Net benefit/costs |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
$18,000 |
|
Net cash flow |
($41,912) |
$ 44,000.00 |
$26,100 |
$30,000 |
$36,500 |
$26,500 |
|
Discount factors |
||||||
|
Discount rate |
10% |
|||||
|
Year Index |
0 |
1 |
2 |
3 |
4 |
5 |
|
Discount factor |
1 |
0.91 |
0.83 |
0.75 |
0.68 |
0.62 |
|
Discounted flows |
||||||
|
Cost |
($47,912) |
($5,455) |
($3,223) |
($3,757) |
($2,391) |
($2,173) |
|
Benefit |
$25,000 |
$28,000 |
$17,000 |
$15,000 |
$25,000 |
$25,000 |
|
Net |
($22,912) |
$22,545 |
$13,777 |
$11,243 |
$22,609 |
$22,827 |
|
Cumulative |
($22,912) |
($367) |
$13,410 |
$24,654 |
$47,263 |
$70,090 |
|
Net present value |
$70,090 |
|||||
|
ROI |
68% |
|||||
|
Payback Analysis |
||||||
|
Years |
Months |
|||||
|
1 |
0 |
|||||
|
Payback Period in Years |
1.03 |
Organizational Risk: If the system development project fails, Cotton On Group has to face various organizational issues. The organization will lose its capital invested in the project along with the chance of being competitive. The system may malfunction after deployment. The customer orders may be altered or not even stored even after successful payment. Showing wrong availability of products will result into customer dissatisfaction or even losing customers.
Technical Risks: Information Systems are developed organization wide and covers almost all the business processes. Such large-scale systems often suffer from malfunctioning and even hardware issues. The selection of development tools are very crucial, if the tool is not able to cope with the system requirement then project may face several technical issues. The improper coding, irrelevant system structuring, inefficient data flow and many others are potential technical risks of the project.
Resource Risk: Two types of resources are used within a project. The elements required to setup project and human resources. The hardware resource risk always a crucial thing to focus on. The system implementation process can get badly affected by the faulty hardware. Moreover, if a project team member leaves a project before completion, the issues get much bigger. Recruiting new employee and making him understand the project requirements and characteristics is a time consuming and costly process. If the existing team members are not as skillful as required, the possibility risk occurrence becomes high.
System Capabilities
Schedule Risk: Completing an information system development project within deadline is very rare. Software development are risk prone and full of challenges. Constant pressure from stakeholders and improper skills of team members increases the possibility of unwanted risk occurrence thus makes the chance of schedule risk higher. It is because, the occurred risks are shared with the stakeholders so that additional capital and time required to mitigate the unwanted risk obtained.
Organization Feasibility: The organization is in serious need of taking good grip on the market to survive. An automatic data collecting, processing and sharing system is the only solution to the organization. The management of Cotton On Group needs a system that can produce reports based on available data as well as generate future buying patters of the customers.
Technical Feasibility: Converting the manual process into automation will allow the organization to be technologically advanced. The system will collect the order, inventory, internal processing and many other data automatically. These data will be stored in the database, from which the data can be retrieved any time. The remote access to the system will allow the organization employee to be more productive.
Resource Feasibility: The employees of Cotton On Group will be able to get the required information through some click. Their working data will be secured as the system will have authentication method (login). The system will be consisting of all the required functions, the employees will easily understand their roles and responsibility.
|
Phase |
Types of methods |
Types of tools |
|
Planning |
Sending mail Schedule Documentation Cost estimation Cost benefit analysis |
Email, MS Project, Excel and MS Word |
|
Requirement Gathering and Analysis |
Sending mail Documentation Feasibility Analysis |
Email, Excel and MS Word |
|
Design |
Wireframe Design User Interface Design Database Logical and Conceptual Design Network Design |
Adobe XD, MS Visio, Cisco Packet tracer |
|
Implementation Phase |
Website Development Internal System Development Database Development Network Development |
Adobe Dreamweaver, XAMPP, Visual Studio, SQL Server, Cisco |
|
Testing Phase |
Internal System Testing Website testing |
JUnit Testing Tool |
|
Deployment |
Server Hosting |
Cloud Based Server |
Work Environment: The project team will be working with the premises of Headquarter of Cotton On GroupCotton On Group. The whole team will work in the same floor for better communication.
Process and Procedures: Project manager will send mails to the stakeholder if urgent meeting is needed. As the team will be working in the head office, the meeting is supposed to be held on the same day. The team members will contact project manager for communicating about any issue.
Work Break Down Structure:
|
WBS |
Task Name |
|
0 |
Cotton On Group System Implementation |
|
1 |
Planning |
|
1.1 |
Meeting with Management and Decide Project Requirements |
|
1.2 |
Employee Team Members |
|
1.3 |
Recognizing Requirements of the Project |
|
1.4 |
Make the Project Cost Estimation |
|
1.5 |
Generate the Project Schedule |
|
1.6 |
Verification of Plan |
|
1.6.1 |
Schedule a Meeting with Stakeholders |
|
1.6.2 |
Share the Plan with Stakeholders |
|
1.6.3 |
Discuss the Project Requirements and Constraints |
|
1.7 |
Share Responsibilities |
|
1.8 |
Schedule a Team Meeting |
|
1.9 |
Planning Phase Complete |
|
2 |
Requirement Gathering and Analysis |
|
2.1 |
Identify the Business Requirements |
|
2.2 |
Analyse the Business Requirements |
|
2.3 |
Generate System Requirements |
|
2.4 |
System Requirement Selection |
|
2.4.1 |
Analyse the Feasibility of Identified System Requirements |
|
2.4.2 |
Select the Feasible Requirements |
|
2.4.3 |
Prioritize the Requirements |
|
2.5 |
Requirement Gathering and Analysis Phase Complete |
|
3 |
Design Phase |
|
3.1 |
System Architecture Design |
|
3.2 |
System UML Diagrams Design |
|
3.3 |
Designing System Conceptual Database |
|
3.4 |
User Interaction Design |
|
3.5 |
User Interface Design |
|
3.6 |
Logical Database Design |
|
3.7 |
Converting Logical Model into Physical Model |
|
3.8 |
Designing Intranet Network |
|
3.9 |
Design Phase Complete |
|
4 |
Implementation Phase |
|
4.1 |
Interface of the Website |
|
4.2 |
Website MVC Architecture Implementation |
|
4.3 |
Code the Units of Internal System |
|
4.4 |
Website Development |
|
4.5 |
Code the Internal System |
|
4.6 |
Create the Database |
|
4.7 |
Install Network in Cotton On Retail Store and Office Premises |
|
4.8 |
Server Configuration |
|
4.9 |
Implementation Phase Complete |
|
5 |
Testing Phase |
|
5.1 |
Debug Backend Code |
|
5.2 |
White Box Testing |
|
5.3 |
System Function Manual Testing |
|
5.4 |
System Security Testing |
|
5.5 |
Testing Security of Server |
|
5.6 |
Testing Intranet Coomunication |
|
5.7 |
Testing Phase Complete |
|
6 |
Deployment Phase |
|
6.1 |
Internal System Go Live |
|
6.2 |
Website Go Live |
|
6.3 |
Deploy Database into Server |
|
6.4 |
Database and System Connection |
|
6.5 |
Generate URL of the Website and Internal System |
|
6.6 |
Deployment Phase Complete |
|
7 |
Review Phase |
|
7.1 |
Website Access Speed Check |
|
7.2 |
Data Validation Check |
|
7.3 |
Check Website Interaction |
|
7.4 |
Review Phase Complete |
Conclusion:
The report concludes that Cotton On Group is in need of digitalizing the business processes. The organization needs to have all the data regarding the internal and external operations. The system will collect data from various sources and create reports for management. The customer representatives of Cotton On Group will be able to track the orders of individual customers. Thus, the time of response to the customer issues will get reduced significantly. The management of products in the inventory will get better, the organization will not face the issue of product unavailability due to poor management. The report has provided all the schedule, work breakdown and cost benefit related analysis and findings. The potential risks of the project have been an indemnified, however the report did not suggest any solution to mitigate those risks. The feasibility analysis has verified that the project is suitable for organization needs and available resources.
References
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