Development of Cloud-Based ERP System for Blach Construction Company

The paper reflects on the development of cloud-based ERP system for Blach construction company in Australia. It discusses the expected business benefits, project approval factors, and cost-benefit analysis. The estimated time for project completion, development cost, and estimated annual operating costs are also provided. The benefits achieved from the cloud-based ERP system deployment are listed. The subject is project management and the course code is not mentioned. The course name and university are also not mentioned.

Running head: PROJECT MANAGEMENT
Development of cloud-based ERP system for Blach construction company
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Identification of the problem..................................................................................................2
1.1 Description of the problem...............................................................................................2
1.2 System capabilities...........................................................................................................2
1.3 Expected business benefits...............................................................................................2
2. Quantify project approval factors...........................................................................................3
2.1 Estimated time for project completion.............................................................................3
2.2 Development cost of the project......................................................................................6
2.3 Estimated annual operating costs...................................................................................10
2.4 Cost benefit analysis......................................................................................................10
2.4.1 Anticipated benefits................................................................................................10
2.4.2 Table for estimated annual benefits........................................................................11
3. Perform a risk and feasibility analysis.................................................................................11
3.1 Determine organizational risks and feasibility...............................................................11
3.2 Evaluating technological risks and feasibility................................................................12
3.3 Asses resource risks and feasibility................................................................................12
3.4 Identify schedule feasibility and project risks................................................................13
4. Establish project environment..............................................................................................13
4.1 Table outlining the information.....................................................................................13
4.2 Describe the work environment.....................................................................................14
4.3 Description of the procedures and processes that will be utilized.................................14
5. Schedule the work................................................................................................................15

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5.1 Work breakdown structure.............................................................................................15
5.2 Gantt chart......................................................................................................................17
Bibliography.............................................................................................................................18

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1. Identification of the problem
1.1 Description of the problem
The paper mainly reflects on the development of cloud ERP system within the
organization “Blach construction company” which is one of the construction company of
Australia that has its offices in Silicon Valley and Central coast. It is identified that the
organization uses ERP system in order to manage its operations. However, the use of ERP
system creates number of challenges as well as issues including expensive installation,
resistance in sharing data, difficulty in using the system as well as problem is accessing
information outside the office. In order to resolve the problem, the organization wants to
move its ERP system within cloud so that the operations of the organization can be managed
quite effectively.
1.2 System capabilities
The system capabilities of the cloud-based ERP system mainly include:
 Customization of work
 Migrating the data and information into cloud
 Transferring knowledge as well as technology
 Checking the infrastructure of cloud
1.3 Expected business benefits
The benefits that are expected from the development of cloud-based ERP system are
elaborated below:
Access from anywhere: It is found that important information and data of the
organization can be accessed from anywhere, anytime by the staffs as well as customers of
the organization.

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No staff time: No staff time is mainly needed for maintaining or upgrading the
hardware the organization grows.
Current functionality: Current functionality is always present as the cloud vendor
maintains as well as updates the software.
Backup: Data can be quite easily backed up with the help of proper disaster recovery
plan of the organization.
2. Quantify project approval factors
2.1 Time that is estimated for completion of project
The time that is generally required for the cloud ERP system development is generally
given in the below table.
WBS Task Name Duration Start Finish
0
Development of cloud-based ERP
system in Blach construction
company, Australia
85 days Thu 22-11-18 Wed 20-03-19
1 Initiation phase 15 days Thu 22-11-18 Wed 12-12-18
1.1
Development of project business
plan
3 days Thu 22-11-18 Mon 26-11-18
1.2 Cost benefit analysis 3 days Tue 27-11-18 Thu 29-11-18
1.3
Establishing the charter for the
project
4 days Fri 30-11-18 Wed 05-12-18
1.4 Recruiting the staffs 5 days Thu 06-12-18 Wed 12-12-18
1.5
Milestone 1: Completion of
initiation phase
0 days Wed 12-12-18 Wed 12-12-18

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2 Planning phase 24 days Thu 06-12-18 Tue 08-01-19
2.1
Developing the plan for the
project
3 days Thu 06-12-18 Mon 10-12-18
2.2
Developing plan for project
resources
2 days Tue 11-12-18 Wed 12-12-18
2.3 Development of financial plan 4 days Thu 13-12-18 Tue 18-12-18
2.4 Developing project quality plan 3 days Wed 19-12-18 Fri 21-12-18
2.5 Planning for risk management 2 days Mon 24-12-18 Tue 25-12-18
2.6 Project acceptance planning 3 days Wed 26-12-18 Fri 28-12-18
2.7 Project communication plan 4 days Mon 31-12-18 Thu 03-01-19
2.8
Developing plan for project
procurement
3 days Fri 04-01-19 Tue 08-01-19
2.9
Milestone 2: Completion of
planning phase
0 days Tue 08-01-19 Tue 08-01-19
3 Execution phase 41 days
Wed 09-01-
19
Wed 06-03-19
3.1
Identifying the requirements for
the business
5 days Wed 09-01-19 Tue 15-01-19
3.2 Cloud based ERP system 4 days Wed 16-01-19 Mon 21-01-19
3.3 Customization of work 4 days Tue 22-01-19 Fri 25-01-19
3.4 Data migration 5 days Mon 28-01-19 Fri 01-02-19
3.5 Checking of infrastructure 4 days Mon 04-02-19 Thu 07-02-19
3.6 Customization 3 days Fri 08-02-19 Tue 12-02-19
3.7 Managing change 4 days Wed 13-02-19 Mon 18-02-19

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3.8
Transfer of knowledge and
technology
4 days Tue 19-02-19 Fri 22-02-19
3.9 Testing of project management 3 days Mon 25-02-19 Wed 27-02-19
3.10 Testing system integration 2 days Thu 28-02-19 Fri 01-03-19
3.11 Testing user-acceptance 3 days Mon 04-03-19 Wed 06-03-19
3.12
Milestone 3: Completion of
execution phase
0 days Wed 06-03-19 Wed 06-03-19
4 Closing phase 10 days Thu 07-03-19 Wed 20-03-19
4.1 Reviewing the project 4 days Thu 07-03-19 Tue 12-03-19
4.2 Sign off the project stakeholders 4 days Wed 13-03-19 Mon 18-03-19
4.3 Post go-live support 2 days Tue 19-03-19 Wed 20-03-19
4.4
Milestone 4: Completion of
closure phase
0 days Wed 20-03-19 Wed 20-03-19

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2.2 Development cost of the project
The budget that is generally needed in order to develop the cloud-based ERP system
are provided below.
WBS Task Name Duration Resource Names Cost
0
Development of cloud-based
ERP system in Blach
construction company,
Australia
85 days AUD49,440.00
1 Initiation phase 15 days AUD3,800.00
1.1
Development of project
business plan
3 days
Project planner,
Project manager
AUD1,320.00
1.2 Cost benefit analysis 3 days Financial manager AUD480.00
1.3
Establishing the charter
for the project
4 days Project planner AUD800.00
1.4 Recruiting the staffs 5 days Project manager AUD1,200.00
1.5
Milestone 1:
Completion of initiation
phase
0 days AUD0.00
2 Planning phase 24 days AUD9,960.00
2.1
Developing the plan for
the project
3 days
Project planner,
Supervisor
AUD1,128.00
2.2 Developing plan for
project resources
2 days Project planner,
Financial
manager, Human
AUD1,040.00

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resource manager
2.3
Development of financial
plan
4 days
Project planner,
Financial manager
AUD1,440.00
2.4
Developing project quality
plan
3 days
Supervisor,
Financial
manager, Risk
analyst
AUD1,488.00
2.5
Planning for risk
management
2 days
Risk analyst,
Tester
AUD624.00
2.6
Project acceptance
planning
3 days
Project planner,
Supervisor
AUD1,128.00
2.7
Project communication
plan
4 days
Project planner,
Supervisor
AUD1,504.00
2.8
Developing plan for
project procurement
3 days
Project planner,
Supervisor,
Financial manager
AUD1,608.00
2.9
Milestone 2:
Completion of planning
phase
0 days AUD0.00
3 Execution phase 41 days AUD33,520.00
3.1
Identifying the
requirements for the business
5 days
Supervisor,
Database
manager, Human
resource manager
AUD2,480.00

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3.2 Cloud based ERP system 4 days
Supervisor,
Technical
engineer
AUD1,344.00
3.3 Customization of work 4 days
Risk analyst,
Technical
engineer, Project
planner,
Additional cost[1]
AUD14,080.00
3.4 Data migration 5 days
Database
manager,
Technical
engineer, Tester
AUD2,360.00
3.5 Checking of infrastructure 4 days
Supervisor, Risk
analyst, Technical
engineer, Tester
AUD2,592.00
3.6 Customization 3 days
Database
manager, Project
manager,
Technical
engineer
AUD1,680.00
3.7 Managing change 4 days Project planner,
Supervisor,
Database
manager, Risk
analyst, Technical
AUD3,424.00

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engineer
3.8
Transfer of knowledge
and technology
4 days
Supervisor,
Database
manager, Risk
analyst, Technical
engineer
AUD2,624.00
3.9
Testing of project
management
3 days
Risk analyst,
Tester
AUD936.00
3.10 Testing system integration 2 days
Supervisor,
Database
manager,
Technical
engineer
AUD992.00
3.11 Testing user-acceptance 3 days
Supervisor,
Technical
engineer
AUD1,008.00
3.12
Milestone 3:
Completion of execution
phase
0 days AUD0.00
4 Closing phase 10 days AUD2,160.00
4.1 Reviewing the project 4 days Project planner AUD800.00
4.2
Sign off the project
stakeholders
4 days Project manager AUD960.00
4.3 Post go-live support 2 days Project planner AUD400.00

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4.4
Milestone 4:
Completion of closure phase
0 days AUD0.00
2.3 Estimated annual operating costs
The operating cost that is generally needed by the cloud-based ERP system are
provided below.
Recurring expenses Amount
Hosting in the server $6,000
Internet connection $3,000
Training $3,000
Renewal (Equipment) $3,000
Total Costs $15,000
2.4 Cost benefit analysis
2.4.1 Anticipated benefits
The benefits that are achieved from the cloud-based ERP system deployment are
given below. It is found that the anticipated benefits generally include both tangible as well as
intangible benefits.
Tangible benefits: The tangible benefits that are achieved from the cloud-based ERP
system development are listed below.
 Provide access of information from anywhere irrespective of the location
 Reduces staff employment
 Reduces extra expenses on various technological needs
Intangible benefits: The intangible benefits which are generally achieved from the
cloud-based ERP system development are provided below:

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 Enhancing satisfaction level among the staffs as they can get access of
information even from their home
 Keep the inconsistencies as well as glitches away
2.4.2 Table for estimated annual benefits
The benefits that are generally achieved annually due to the cloud-based ERP
development is showcased in the below table.
Benefit Amount
Faster implementation $5,000
Fast performance $7,000
Minimizing technological expenses $6,000
Reduction in the number of staffs $6,00
Total amount $24,000
3. Perform a risk and feasibility analysis
3.1 Determining feasibility and organizational risks
The organizational feasibility and risks which are mainly related with the project are
generally elaborated below:
Data security: This is considered as one of the biggest issues that is related with the
cloud ERP. It is found that when the information is made web accessible then the problem of
data breaches become of the legitimate concern. Thus, the organization faces number of
security related issues.
Cost consideration: It is found that though the overall solution of cloud is considered
to be very much cost effective but the organization faces financial issue when long term cost

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for licencing of cloud ERP system is required. When the organization wants to move to cloud
the organization initially needs to spend certain amount of money for getting the license.
Inability to adapt: In spite of the intention of moving to the cloud, unfamiliarity as
well as inability to adopt the new information system by the organizational staff is seen due
to lack of preparation. Thus, the staffs who generally have very much limited information as
well as knowledge related with technology generally creates difficulties for adopting the
system.
3.2 Evaluating technological risks as well as feasibility
The employees who are mainly associated with the organization are provided with
proper training facility of 2 days if it is quite difficult for the employees of the organization to
manage the operations in cloud. Additionally, both video as well as presentation resources are
generally shared among the staffs so that the employees can get proper idea about how the
organizational operations will be managed for stored. Moreover, the resources also help in
providing proper idea about the process of data recovery in case of any problem.
It is found that for checking the feasibility of the cloud-based ERP system, it is very
much necessary to test the ERP system for making sure that the entire operations as well as
functions of the organizations can be effectively managed.
3.3 Asses resource risks and feasibility
It is analyzed that it is quite necessary for the organizational staffs to properly
understand the roles as well as responsibilities which are mainly needed for executing each of
the project tasks in order to develop the cloud ERP system. If the employees are unable to
analyze the needs as well as requirements for cloud ERP system development there is number
of probabilities of risk occurrences.

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3.4 Identify schedule feasibility and project risks
If the schedule of the project is not properly managed then it is analyzed that there is
a high chance that the project will not get completed within the time that is expected and thus
in order to finish the project, it is quite necessary to extend the completion date of the project.
Extension in the project time generally enhances the cost that is associated with the project
which further creates financial issues. For resolving the issues, it is quite important to
schedule the project activities so that the cloud ERP can be developed within the expected
budget and time.
4. Project environment establishment
4.1 Information outlined in the table.
Information capture
Information capture Electronic tools User accessibility
Project schedule MS-Project Project manager
Annual cost associated with
project operation
MS-Project Project manager
Annual benefits from the
project
MS-Project Project Manager
Project status MS-Project All user
User documentation MS-Word All User
Design specification Microsoft Visio Project manager
4.2 Describe the work environment
The work environment is quite important for completing the project successfully. The
tables that are provided below reflects on the various types of resources which are generally
needed for the work environment of the project

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Hardware and software
Item Description Resource
Server Dell PowerEdge T440
Tower Server
Blach construction company
(Expense)
Computers Dell inspiron 3477 and Dell
inspiron 5000
Blach construction company
(Expense)
MS-Project Microsoft Project 360 License-Owned by author
MS-Word Microsoft Word 360 License-Owned by author
MS-Visio Microsoft Visio 360 License-Owned by author
Support Staff
Item Description Resource
Admin Staff Organizational staff Blach construction company
4.3 Description of the procedures and processes that will be utilized
The procedures as well as processes which are generally needed in the project are
generally elaborated below:
Testing: Testing the performance will be done for making sure that the cloud ERP
system will be capable of managing the organizational operations and functions of the
organization quite effectively. If any case of technical failure is seen, then it is necessary to
make improvements.
Documentation: All the information as well as details that are mainly associated with
the meetings, feedback as well as design specification are generally documented for keeping
record so that the information can be used in the future when needed.
Deliverables: After completion of the project, the Blach construction company can be
able to store the organizational data within cloud and thus if the staffs of the organization

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want to access information can easily access data irrespective of time and location. This
assists in increasing flexibility of the staffs. Moreover, the data and information of the
customers are stored properly on the cloud and additionally the information recovery facility
is also provided with the help of cloud ERP.
5. Schedule the work
5.1 Work breakdown structure
The structure of work breakdown is given below:
WBS Task Name
0
Development of cloud-based ERP system in Blach construction
company, Australia
1 Initiation phase
1.1 Development of project business plan
1.2 Cost benefit analysis
1.3 Establishing the charter for the project
1.4 Recruiting the staffs
1.5 Milestone 1: Completion of initiation phase
2 Planning phase
2.1 Developing the plan for the project
2.2 Developing plan for project resources
2.3 Development of financial plan
2.4 Developing project quality plan
2.5 Planning for risk management
2.6 Project acceptance planning

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2.7 Project communication plan
2.8 Developing plan for project procurement
2.9 Milestone 2: Completion of planning phase
3 Execution phase
3.1 Identifying the requirements for the business
3.2 Cloud based ERP system
3.3 Customization of work
3.4 Data migration
3.5 Checking of infrastructure
3.6 Customization
3.7 Managing change
3.8 Transfer of knowledge and technology
3.9 Testing of project management
3.10 Testing system integration
3.11 Testing user-acceptance
3.12 Milestone 3: Completion of execution phase
4 Closing phase
4.1 Reviewing the project
4.2 Sign off the project stakeholders
4.3 Post go-live support
4.4 Milestone 4: Completion of closure phase

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5.2 Gantt chart
Figure 1: Gantt chart
(Source: Created by Author)

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