IT Operations Management.

IT Operations Management 1
IT Operations Management
Assignment 2
PROPOSAL - CAPACITY PLANNING &
CONFIGURATION MANAGEMENT
By (Name)
(Course)
(Professor’s Name)
(University)
(City)
(Country/State)
(Date)

IT Operations Management 2
Management Summary
Under Milkwood is a large company that comprises of approximately 400 employees. This
company entails many departments. Capacity Planning department is required to help Under
Milkwood gaming company to meet its goals. To achieve this, this department will play vital
roles in forecasting demand. Hence, enabling the management to employ sufficient staff
personnel who will be able to carry out the given tasks. However, the initial and ongoing costs
are too high. A lot of money will be used for purchasing necessary hardware and software which
are very expensive. On the other hand, establishing configuration management department will
ensure that the new systems have been configured properly. Other than technologies deployment,
this department will also enhance documentation of games software. Hence, enabling developers
to fix errors very easily. The benefits of these two departments will be long term.

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Table of Contents
Contents
Management Summary.............................................................................................................................2
Table of Contents.......................................................................................................................................3
Introduction...............................................................................................................................................5
Scope...........................................................................................................................................................5
Objectives...................................................................................................................................................5
Proposal......................................................................................................................................................6
Division Section..........................................................................................................................................7
Games Development...............................................................................................................................7
Games Production Support......................................................................................................................7
BTOPP Analysis – Capacity Planning.....................................................................................................8
Business...................................................................................................................................................8
Technology..............................................................................................................................................8
Organization............................................................................................................................................8
Process.....................................................................................................................................................8
People......................................................................................................................................................9
BTOPP Analysis – Configuration Management.....................................................................................9
Business...................................................................................................................................................9
Technology............................................................................................................................................10
Organization..........................................................................................................................................10
Process...................................................................................................................................................10
People....................................................................................................................................................11
Costs of capacity planning and configuration management.................................................................11
The Benefits of Capacity Planning Department....................................................................................12
Business.................................................................................................................................................12
Technology............................................................................................................................................12
Organization..........................................................................................................................................13
Process...................................................................................................................................................13
People....................................................................................................................................................13
The Benefits of Configuration Management Department....................................................................14
Business.................................................................................................................................................14
Technology............................................................................................................................................14

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Organization..........................................................................................................................................15
Process...................................................................................................................................................15
People....................................................................................................................................................15
Capacity Planning Risks.........................................................................................................................15
Configuration Management Risks..........................................................................................................16
Steps of Implementing Capacity Planning and Configuration management departments................17
Recommendations...................................................................................................................................19
References.................................................................................................................................................20

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Introduction
Under Milkwood Pty Ltd is a company that writes games which can run on all major platforms.
Currently, the company has several divisions such as administration, marketing and sales.
However, the company does not have capacity planning and configuration management
departments. The main aim of this report is to discuss benefits and costs of these two
departments and recommend company’s management on whether to establish these departments
or not.
Scope
The scope of this report entails the following:
 To discuss pros and cons of establishing Capacity Planning and Configuration
Management departments.
 To advise management on the way forward that is whether to establish these two
departments or not.
Objectives
The objectives of this report comprises of the following:
To determine the benefits of establishing the following departments; Capacity Planning
and Configuration Management.
To determine costs associated with capacity planning and configuration management
departments.
To determine the impacts of establishing capacity planning and configuration
management departments to business operations in Under Milkwood company.

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Proposal
The following are some of the operations that are carried out in Under Milkwood Gaming Pty
Ltd; writing and selling games, website for upgrading games and keeping in touch with
customers. It is very difficult to manage all these processes without a well-designed
organizational structure which incorporates capacity planning and configuration management
(Lawlor, 2010, p.76). Also, it is very difficult for management to determine the number of games
that should be produced at a given time. Moreover, it is also hard to keep track of any changes
that are made to the computer systems, thus leading to insecurity issues. Therefore, it becomes
important to establish these two departments. The following are some of the business values that
can be created by these two departments:
 Change management: The configuration management department will facilitate change in
Under Milkwood. This can be achieved by ensuring that the new technology is
compatible with the old technology. Hence, the new technology will be integrated
properly to ensure that existing processes are running well (Nenonen and Storbacka,
2010, p.44).
 Availability management: The configuration management will ensure that the systems are
not prone to malfunctions since they will be updated regularly as well as problems fixed.
Similarly, the capacity planning department will ensure that the information that is
required by different departments is available anytime when the need arises. It is
concerned mostly with production, hence it will facilitate completion of projects in a
specified time and also within estimated costs. Thus, enhancing smooth running of
business operations (Lopes, Brasileiro and Maciel, 2010, p.7).

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 Forecasting demand: The capacity planning department will be responsible for
estimating the number of customers who require games in a given season or time period.
Other than requiring games, it will also be responsible for estimating the number of
games that will require upgrades in a given time. Hence, enabling the management of
Under Milkwood to employ sufficient staff personnel who will be able to carry out the
given tasks appropriately. Forecasting demand will play some important roles such as
resource allocation. This will enable Under Milkwood to generate a lot of profits as
resources will be managed effectively (Luan, Sharp and Lancashire, 2010, p.2).
Division Section
Games Development
The games development division is very important in Under Milkwood as it will be responsible
for designing games. Through this division, the roles of designers, artists, programmers, testers
among others will be explained explicitly to reduce misunderstanding. It will enhance effective
communication among game developers, thus ensuring that different processes are running
smoothly (Watts, 2011).
Games Production Support
This division is equally important as it will ensure that systems that are used by different users
are running efficiently. Other than systems, it will also ensure that applications are updated
regularly to improve running of operations within Under Milkwood. Other responsibilities
include the following; maintaining stability and daily routines (Watts, 2011).

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BTOPP Analysis – Capacity Planning
Business
The new technologies that will be incorporated into capacity planning in Under Milkwood will
focus on the available market opportunities. Capacity Planning department is required to help
Under Milkwood gaming company to meet its goals. To achieve this, this department will play
vital roles in forecasting demand. Hence, enabling the management to employ sufficient staff
personnel who will be able to carry out the given tasks appropriately. However, the initial and
ongoing costs are too high. A lot of money will be used for purchasing necessary hardware and
software which are very expensive (Hvolby and Steger-Jensen, 2010, p.847).
Technology
Technology entails operations of the software that has been deployed in Under Milkwood Pty
Ltd departments. Other than software, the hardware must be installed properly. Hence, the
capacity planning department will ensure that operations are running efficiently by deploying
better technologies basing on performance analyses. This will help the company to gain
competitive advantage over its competitors (Zhang et al., 2012, p.249).
Organization
The Under Milkwood Pty Ltd comprises of many departments. Hence, the capacity planning
department will ensure that these departments are coordinating well. To achieve this, it will
enhance centralization of information. Hence, each department will be able to access information
very easily. Effective communication will also be achieved in Under Milkwood (Mestry,
Damodaran and Chen, 2011, p.481).
Process

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Different processes that take place in Under Milkwood will be dynamic rather than static. This is
because business conditions keep on changing day in day out. Therefore, capacity planning
department will aid systems’ capacity planning. For instance, the number of system’s users is
expected to increase as the number of customers increase. Hence, these systems will be able to
function properly as the load increases. However, capacity planning involves analysis of
historical information to predict trends and patterns. Hence, a lot of time is wasted that would
have been used to perform some important tasks (Gerstel et al., 2014, p.45).
People
People consists of customers, employees as well as business partners. The new information
systems will enable employees to carry out their activities very comfortable without straining.
The employees will be able to understand their roles and responsibilities within Milkwood, hence
reducing misunderstanding. However, the new department will lead to reassignment of duties.
Hence, time consuming as employees will be required to undergo further training (Jiang et al.,
2012, p.74).
BTOPP Analysis – Configuration Management
Business
Under Milkwood is a large company that comprises of approximately 400 employees. This
company entails many departments. There are many computer software that have been deployed
to facilitate smooth running of operations within Under Milkwood Pty Ltd. Thus, establishing
configuration management department will ensure that the new systems have been configured
properly. Also, it will ensure that the new systems have been incorporated well with existing
systems, hence ensuring that business operations are running smoothly. Other than technologies

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deployment, this department will also enhance documentation of games software. Hence,
enabling developers to fix errors very easily (Schonwalder, Bjorklund and Shafer, 2010, p.168).
Technology
Under Milkwood company has many systems, which require to be integrated rather than working
independently, hence indispensable. Proper integration ensures that Under Milkwood employees
have accessed the right information. Other than the right information, it also ensures that the
information has reached concerned parties at the appropriate time. Moreover, it will ensure that
problems have been fixed easily. This will be achieved by proper documentation, hence keeping
track of any changes (Schroeter et al., 2012, p.172).
Organization
The configuration department will improve organization generally. Although, it has little effects
on physical structures. However, the most important thing is to have skilled personnel for
managing documentation effectively. Under Milkwood will require to set up several offices that
will facilitate meetings related to configuration management. However, implementation of
configuration management requires restructuring of organizational structure. Hence, it will
interfere smooth running of operations in Under Milkwood. The systems of other departments
also require to be integrated with these new department (Bovell et al., 2012, p.180).
Process
Configuration Management department will impact positively on different processes that take
place within Under Milkwood Pty Ltd. To maintain customers, consistency is a very important
aspect. This department will facilitate proper re-configuration of components. Therefore, the
company will be able to mitigate risks that it has encountered before. Moreover, it will help in

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monitoring server configuration details. It will provide a procedure that needs to be followed to
restore faulty components within Under Milkwood Pty Ltd. To achieve this, documentation will
be updated regularly (Voutilainen et al., 2010, p.644).
People
Establishment of configuration management department will enhance workflow. This is because
the technical writer will provide documentation that will be easily understood by employees.
This well-organized information will enable network administrator to detect any intrusion into
the system, thus improving security. Moreover, he will also be able to understand configuration
issues with existing systems. Also, employees will be able to apply effective corrective
mechanisms to restore systems once an error has been encountered. However, Under Milkwood
can find some difficulties to finding a technical writer. The configuration management tools
require trained personnel. Hence, it will become difficult to meet Under Milkwood needs.
Inflexible operational personnel may halt processes in Under Milkwood (Watts, 2011).
Costs of capacity planning and configuration management.
 The initial cost for purchasing the capacity planning and configuration management
software is required. Other than software, necessary hardware alongside other materials
are also required. Therefore, Under Milkwood Pty Ltd will incur these costs (Lin, Chen
and Chu, 2014, p.22).
 Regarding ongoing costs, regular upgrading of the software is necessary. Also, a lot of
money is paid to the system operators and overall maintenance of these systems.
 The process of setting up configuration management system requires skilled IT
personnel. Therefore, a lot of money is spent to hire the skilled staff or outsourcing
services (Zanjani, Nourelfath and Ait-Kadi, 2010, p.4701).

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The Benefits of Capacity Planning Department
Business
 Reliability. The configuration management department will ensure that the problems
associated with the system are solved on a real-time basis, hence limiting unnecessary
malfunctions. Unreliable systems can halt daily operations. Hence, this department will
also enable other departments to carry out their activities properly.
 Help Under Milkwood to achieve its objectives. Centralization enables different units
within the organization to work towards achieving a common goal, hence maximizing its
progress towards achieving its goals.
 Monitor costs. The capacity planning enables the management to keep truck of
production. The company can be able to determine the amount of money that was
allocated on a given project. Also, the company can be able to determine the amount of
money that has been used up. In addition, the capacity planning also plays some
important roles in future budgets. Hence, enabling the company to plan for the upcoming
changes (Gmach et al., 2010, p.96).
Technology
 Effective control of technologies efficiency. The capacity planning department can
enable the management of Under Milkwood Gaming Pty Ltd to maintain the production
level. This can be achieved by taking historical records into consideration. For example,
the number of customers who require games in a specific season or month can be higher
as compared to other months. Therefore, the management will be able to estimate the
number of games that should be produced at the given time. Subsequently, incorporating

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scalable software technologies which can be used efficiently without failure (Dai, Li and
Huang, 2012, p.38).
Organization
 The capacity planning department will ensure that all departments are coordinating well.
To achieve this, it will enhance centralization of information. Hence, each department
will be able to access information very easily. Effective communication will be attained
in Under Milkwood (Gu, McCalley and Ni, 2012, p.652).
Process
 This department will enhance smooth running of operations due to information
availability. The important of capacity planning department is not only production, but
also ensuring that the important information is always available when the need arises.
The Under Milkwood Gaming Pty Ltd collects digital information daily from its
customers. Therefore, the important information is recorded and stored for future use
(Georgiadis and Athanasiou, 2010, p.420).
People
 Bringing about globalization. The Under Milkwood Gaming Pty Ltd keeps on growing
from time to time, hence there is a need to identify the new locations. The needs of the
people living around those areas and beyond can be identified from capacity planning
information.
 It also ensures that employees in different levels have clear understanding of their duties
and responsibilities within Under Milkwood. Moreover, it also ensures that there is
mutual understanding among employees. This is attained by enhancing effective
communication (Stephan, Gschwind and Minner, 2010, p.144).

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The Benefits of Configuration Management Department
Business
 The configuration management department will reduce errors in computer systems that
facilitate operations within Under Milkwood. This will save time that would have been
used to fix the errors. Hence, ensuring smooth running of business operations. Under
Milkwood will also gain competitive advantage (Geipel et al., 2010, p.644).
 Costs and risks reduction. The configuration management department will provide
regular system maintenance. Under Milkwood spends a lot of money to fix bugs
associated with the system from time to time. However, creation of this department will
reduce these costs as the bugs are fixed properly from time to time unless the new bugs
arises. Also, lack of configuration management results in insecurity issues. This is
because the systems are not checked regularly. Hence, this department is very important
(Geipel et al., 2010, p.644).
Technology
 Configuration management department will enable operational personnel to reconfigure
the computer systems correctly in case there are some problems. This department will
integrate bug reporting software that will keep track of all the problems that have been
reported. Therefore, easy to locate restore points of the compromised systems.
 The computer systems within Under Milkwood will be arranged in an orderly manner.
Hence, enabling system users to see previous changes on these system and identify some
of the issues and problems encountered. Thus, necessary measures can be undertaken to
enhance smooth running of day-to-day business activities (Cain et al., 2010, p.530).

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Organization
 The configuration department will improve organization generally. Although, it has little
effects on physical structures. However, the most important thing is to have skilled
personnel for managing documentation effectively (Prafullchandra et al., 2012, p.166).
Process
 The configuration management department will facilitate backups, hence processes will
be recovered on a real-time basis once a problem has been detected. This will enhance
smooth running of different processes.
 Reduction of risks as recovery policies will be formulated and implemented. This will
also enhance security (Peters, Elazary, and Sakata, 2015, p.277).
People
 Technical writer will provide documentation that will be easily understood by employees.
This will enable them to carry their duties and responsibilities effectively
(Ramachandran, 2014, p.973).
Capacity Planning Risks
BTOPP Risk Area Risk Description
Business  The ongoing costs are too high, hence Under Milkwood Pty Ltd
will spent a lot of money.
 Budget overruns. The budget of establishing capacity planning
can be underestimated. Hence, unsuccessful implementation
(Hees and Reinhart, 2015, p.71).
Technology  The technological resources such as hardware and software are
very expensive, thus leading to investment risks.
Organization  Capacity planning department requires some space, hence leading

IT Operations Management 16
to a possible conflicts among employees (Georgiadis, 2013,
p.116).
Process  Sometimes it becomes difficult to balance workloads. This leads
to poor business planning.
People  This department requires skilled personnel which may be
unavailable. Training staff will be time consuming and also not a
guarantee that they will work effectively (Hees and Reinhart,
2015, p.71).
Configuration Management Risks
BTOPP Risk Area Risk Description
Business  Wasted resources. The resources of Under Milkwood may be
wasted if the project will not be successful. The management may
provide best resources for the establishment of configuration
management department hoping that it will bear fruits, only to
realize that deliverables have not yet been achieved later on.
 Schedule overruns. Some of the deliverables may not be
completed on the given time. Hence, leading to budget
constraints. Also, the software project development teams may
take longer time than expected, thus resulting in inconveniences.
 Missed objective. The objectives of the configuration
management may not be met. This can be as a result of lower
morale from concerned individuals, hence cost and quality among
other factors are sacrificed (Chen et al., 2010, p.6).
Technology  Quality deficiencies. This department may be established
inefficiently. For instance, the low quality software can be
developed for running day-to-day business activities.
 Substandard resources can also be used, hence lowering
performance of the configuration management department.
 Failing to update games software or testing incorrect software is

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also an issue (Chen et al., 2010, p.6).
Organization  The management of Under Milkwood is expected to set up
different offices to facilitate meetings related to configuration
management (Hallerbach, Bauer and Reichert, 2010, p.237).
Process  The process of updating software regularly may consume a lot of
time that could have been used to carry out some important tasks.
People  Incompetent staff may be hired, hence leading to a lot of issues.
 Team burnout. Although this area is very important, but it has
been undervalued by most of the organizations. Burnout impacts
negatively on department’s establishment. This is because it
lowers interest of concerned individuals, hence losing motivation
(Hallerbach, Bauer and Reichert, 2010, p.240).
Steps of Implementing Capacity Planning and Configuration management departments
 Review Under Milkwood’s strategic plan: The strategic plan enables a company to gain
competitive advantage over related companies. Apart from competitive advantage, it also
entails how company resources can be allocated (Alvesson and Sveningsson, 2015).
 Analyze Under Milkwood customers. This involves the process of identifying specific
needs that are required by customers of Milkwood gaming Pty Ltd. Afterwards, these
needs are prioritized, hence improving customer satisfaction.
 Analyze Under Milkwood’s competitors. This involves the process of carrying out a
research to understand how some of the activities are carried out in related companies.
This enables Under Milkwood management to predict their market positions effectively.
 Analyze Under Milkwood departments. This involves the practice of analyzing existing
departments to identify some of the core competencies. Apart from competencies, it is
also useful to identify strengths of these departments (Alvesson and Sveningsson, 2015).

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 Brainstorm initiatives. This is achieved by using the information that has been collected.
This can help to describe some of the projects that can initiated in coming years through
the new departments that would be created (Alvesson and Sveningsson, 2015).
 Select an appropriate process owner: An appropriate process owner should be selected
who will be responsible for spearheading the entire process from the start till the end.
The process owner of each department should have the following skills:
i. Good communication skills.
ii. Adequate knowledge regarding the software that should be used.
iii. Accountability. The process owner should give details regarding each activity
that has taken place clearly.
iv. Honesty. The process owner should always tell the truth.
 Identify resources that are needed. The process owner is responsible for identifying
necessary components not limited to hardware and software that are required for
successful establishment of these departments (Whyte, Stasis and Lindkvist, 2016,
p.339). Other than software and hardware requirements, the project owner should also be
responsible for identifying the staff with necessary skills who will be operating these
systems within the department. The staff should have basic knowledge on data analysis.
This is because the information will be collected from historical records (Whyte, Stasis
and Lindkvist, 2016, p.339). Apart from data analysis, they should also have good
communication skills. In addition, they should have basic computer maintenance skills.
This will enable them to repair desktops that they will be using.
 Review tactical plan. This process is done by the process owner. He is expected to
consult his bosses regularly. He should explain to the Under Milkwood management

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regarding the process progress. Afterwards, the management can request for some
changes, hence reducing the need of making changes after establishment of the
departments (Alvesson and Sveningsson, 2015).
 Launching new departments. This is the last step of establishing these two departments.
Here, the departments are put into use. The duties and responsibilities are assigned to the
concerned staff (Alvesson and Sveningsson, 2015).
Recommendations
I would recommend the senior management of Under Milkwood Gaming Pty Ltd to establish
capacity planning and configuration management departments as part of the IT operations
department. The benefits associated with these departments surpass their limitations, hence they
will play some vital roles in Under Milkwood. The following are some of their benefits; effective
control of the production cycle, information availability, reliability, bringing about globalization,
costs and risks reduction. Hence, a lot of profits will be generated as a result. Also, Under
Milkwood will gain more competitive advantage as there will be information to plan for the
future. Moreover, the configuration management department will enhance smooth running of
operations as there will be no system malfunctions due to regular maintenance and upgrades.
However, I advise the senior management to ensure that the steps for establishment of these
departments have been followed strictly. This will lead to effective implementation of hardware
and software required by these departments. It will also enhance integration of new systems with
existing ones. The following steps should be followed when establishing these departments;
review Under Milkwood’s strategic plan, Analyze Under Milkwood customers, competitors and
departments, brainstorm initiatives, select an appropriate process owner, identify resources that

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are needed, review tactical plan and launch capacity planning and configuration management
departments.

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