Report On Trusty Carpets | Enhancing The Profit Margin

Added on - 30 Sep 2019

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Executive SummaryThe report is based on the case study on Trusty Carpets, which is a small firm selling carpetsfrom past two decades. Different technologies used in the firm are router, printer, internet but noinformation system is being utilized. Trusty carpets have Metro Carpets, and aims to makeoptimum use of the space of the showroom and warehouse. In order to provide a better outlook,environmental analysis have been done, which have highlighted the opportunities and threats forthe Trusty Carpets.Trusty Carpets wants to efficiently merge all consumer and sales components into uniformbusiness operations. The aim of the report is to recommend appropriate technologies forenhancing the profit margin, so that the organization can expand and grow. It have beenidentified after analyzing the business operations of the organization that problem lies in thenetworks of communication, infrastructure related to IT is weak, there is more requirement ofpersonnel for maintenance, suppliers relations need to be enhanced and the overall businessstrategy should be in line with the business operations.Solutions have been suggested for the problems of Trusty carpets in the report. The organizationneeds to implement customer relationship software named SalesfroceIQ, which will help theorganization to combine all the business operations under one. The implementation of the CRMsoftware will enhance sales and customer service and will enhance overall business outcomes.Besides this the software will also be helpful in the unification of the business, increasedemployee motivation and smooth functioning of the business. It have been analyzed that theimplementation of the CRM software is feasible and will also utilize the various resourcesoptimally. Annual cost of implementation of the CRM software in the Trusty Carpets will cometo $900.
The report also suggests alternative solution to the organization for the improvement of thebusiness processes without any IT solution. Proposed alternative solution for Trusty Carpets isthat it needs to improve its vision statement and all the significant parts of the business needed tobe defined well and appropriate time should be given to effectively merge the newly acquiredMetro Carpets. It have been analyzed the alternative solution for the organization is feasible butis not as optimal as CRM software.For making the implementation of the software successful the organization needs to providetraining to the staff. Besides this all the technical requirements such as internet, deviceconfigurations, operating system, control on access, security in terms of network and transactionsshould be ensured for making the implementation successful. All the stakeholders like such asemployees, managers and clients should be made aware and included in the development of theproject. At the end of the report, it have been suggested to the organization that it should managechange efficiently, should integrate the business process requirements with effective training.
Table of ContentsExecutive Summary.....................................................................................................................................0I. Background and Environmental Analysis..................................................................................................6Background:.............................................................................................................................................6Environmental Analysis:.......................................................................................................................7Opportunities:......................................................................................................................................7Factors:................................................................................................................................................8Threats:................................................................................................................................................8II. Business Problem....................................................................................................................................9III. Proposed Solution:...............................................................................................................................11IV. Expected Improvements......................................................................................................................12V. Alternatives Analysis.............................................................................................................................14Analysis: Status Quo..............................................................................................................................14Analysis: Proposed System....................................................................................................................15Solution Description..........................................................................................................................15Major Benefits...................................................................................................................................16Cost Elements....................................................................................................................................17Feasibility...........................................................................................................................................17Risks...................................................................................................................................................18Major Issues.......................................................................................................................................18Analysis: Alternative Solution................................................................................................................19Solution Description..........................................................................................................................19Major Benefits...................................................................................................................................19Cost Elements....................................................................................................................................20Feasibility...........................................................................................................................................20Risks...................................................................................................................................................20Major Issues.......................................................................................................................................21Analysis: Improve Business Processes without an IT Solution...............................................................22Solution Description..........................................................................................................................22Major Benefits...................................................................................................................................22
Cost Elements....................................................................................................................................23Feasibility...........................................................................................................................................24Risks...................................................................................................................................................24Major Issues.......................................................................................................................................24Solutions Comparison Chart..................................................................................................................25Justification of Proposed System...........................................................................................................26VI. Feasibility Analysis................................................................................................................................27Economic/Financial Feasibility...............................................................................................................27Organizational/Operational Feasibility..................................................................................................27Advantage of the proposed system in solving problems...................................................................27Easy integration of the proposed strategy.........................................................................................28Necessity for additional staffing........................................................................................................28Necessity for reducing staff...............................................................................................................28Requirement of Staff reorganization.................................................................................................29Feasibility of retraining......................................................................................................................29Technical Feasibility...............................................................................................................................29Assurance of Expected Functions......................................................................................................29Solution Integration...........................................................................................................................30Implementation.................................................................................................................................30Training..............................................................................................................................................31Management.....................................................................................................................................31VII. Requirements Checklist.......................................................................................................................31Introduction...........................................................................................................................................32Data Requirements................................................................................................................................32Functional Requirements.......................................................................................................................33Technical Requirements........................................................................................................................33Internet Connection...........................................................................................................................33Browsers............................................................................................................................................34Outlook..............................................................................................................................................34Operating System..............................................................................................................................35Device Configurations.......................................................................................................................35Security Requirements...........................................................................................................................35
Authentication and Access Control....................................................................................................35Network Security...............................................................................................................................35Secure Communications & Reporting...............................................................................................36Transactional Security.......................................................................................................................36Information Security..........................................................................................................................36VIII. Context Diagram.................................................................................................................................37Section IX: Project Management...............................................................................................................37Project Scope.........................................................................................................................................37Time/Schedule.......................................................................................................................................38Cost........................................................................................................................................................38Quality...................................................................................................................................................39Communications....................................................................................................................................39Stakeholders..........................................................................................................................................40Project manger.......................................................................................................................................40Project board..........................................................................................................................................40Project team members...........................................................................................................................41Other......................................................................................................................................................41Major tasks and timeframe...................................................................................................................41Section X. Acquisition Strategy..................................................................................................................42Scope of what to buy:............................................................................................................................42Product Hardware and Service Software...........................................................................................42Commercial-off-the-shelf products....................................................................................................43Support for Custom Development.....................................................................................................43Required Infrastructure..........................................................................................................................44How will system hosting services be needed?...................................................................................44How will connectivity be made available?........................................................................................45What security considerations should be included in the contracts? Will any specific hardware orsoftware need to be acquired to provide security?.............................................................................45Will business Continuity requirements need to be included in the contract(s)? Will separate BusinessContinuity solutions or components need to be acquired?.................................................................46Are there any data management considerations to be included in the acquisition(s)?........................47What type of contract(s) should be used?..........................................................................................47
Section XI: Risk Management...................................................................................................................48Section XII. Security.................................................................................................................................48Data.......................................................................................................................................................48Application Software.............................................................................................................................49Systems.................................................................................................................................................49Networks...............................................................................................................................................50Physical facilities related to IT..............................................................................................................50Mechanisms (Policy, Procedure, Technology Solutions, etc.) to protect against each of the issues......50Section XIII: Additional Implementation Issues.........................................................................................52Culture Change......................................................................................................................................52Salesforce Application Development.....................................................................................................52Insufficient Training...............................................................................................................................53Conclusion.................................................................................................................................................53Appendix...................................................................................................................................................55References.................................................................................................................................................63
I. Background and Environmental AnalysisBackground:Trusty Carpets (TC) has been a successful small-business organization in selling carpets for 20years with a potential to become a bigger corporation in the future. TC has small number ofemployees including the owner, Jerry Montgomery and his daughter who would like to take overthe business once Jerry retires. Currently, TC has a healthy profit of $100,000 by selling250,000 square feet of carpet in a year. TC’s monetary transactions such as paying bills, sendinginvoices, collecting payment and payroll are handled by an accountant.Technologies used at TC are basics such as printer, router, internet, tablet computers and so on.There is no commercial software or information system where all the employees are connected.All the employees have Gmail account from which they carry the business processes such aschecking the availability of the selected carpet and the current price. Currently, there is nodesignated IT employee, however, one of the salesperson, Ben handles the IT-related queries atTC.Recently, Mr. Montgomery has acquired Metro Carpets (MT) which is on the other side of thetown. Bigger than TC, Mr. Montgomery plans to utilize the large space of Metro Carpets in thebest feasible way. The MT’s annual revenue of $3 million is very lucrative for Mr. Montgomeryas he aims to expand his carpet business. In addition, he has also decided to partner with Mike’scarpet installation business. Mr. Montgomery wants to contribute to the environment byemphasizing on recycling carpets when he merges with the installation business. To gaincompetitive edge, Mr. Montgomery needs a good planning and implementation to run all threebusinesses successfully.
Environmental Analysis:Mr. Montgomery has two facilities; Trusty Carpets and Metro Carpets. His well-establishedprimary facility, Trusty Carpets, is located within a busy strip mall and it generates $1.2 millionin annual revenue. This facility is small in both space and employees, as only Mr. Montgomeryand 2 sales people work there at any given time. He also employs a single accountant to monitorhis finances, pay bills, send invoices, collect payment, and do payroll. Trust Carpets has a verybasic IT system used for essential business tasks. The system is comprised of a multi-purposeprinter connected to a router which provides a private wireless network. Furthermore, the 2 salespeople each have tablet computers which utilize the Google cloud to create and check customerorders.The second facility is Metro Carpets and is a recent acquisition. This facility is significantlylarge than Trusty Carpets as it is a standalone store with an adjoining 20,000 square footwarehouse and large showroom. The warehouse is currently at half-full capacity. Metro has 3sales and 2 warehouse staff. Metro currently generates about $3 million in annual revenue.Mr. Montgomery also intends to merge his business with his brother-in-law’s carpet installationbusiness. He plans to do this after they have reviewed the EPA’s WARM program. Mike’s (Mr.Montgomery’s brother-in-law) wife Carol does the bookkeeping for his company and she is veryorganized.Opportunities:With the large warehouse acquired through the purchase of Metro Carpets, products can bestored on site allowing for much faster transactions.
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