IFSM Preliminary Investigation Report: PEP's IT System Proposal

This report presents a preliminary investigation of an IT system proposal for PEP, a company launching a new low-voltage motor in the healthcare industry. The current system faces challenges due to increased sales and a growing product line, straining departments like ordering, shipping, and inventory. The proposal suggests replacing the customer billing and payment system to improve efficiency and scalability. The report analyzes the scope, constraints, and feasibility of the proposal from technical, financial, and organizational perspectives. It discusses the implementation process, potential benefits like cost reduction and improved order management, and the need for software development lifecycle management. The report concludes that while financially and organizationally feasible, technical feasibility might be a concern for a small company like PEP, and a detailed timeline for implementation is required.

IFSM

Preliminary Investigation Report
As PEP launch a new product of more efficient low voltage motor, which is used in the
healthcare industry. The sales and manufacturing department have been enlarging to add a new
line in the industry. All of this is straining the ordering and shipping department and the
inventory management department, which have received no increase in workforce. As PEP sales
and order rises significantly, the finance department faces problems in their invoice, billing and
payment processes. The IT analyst meeting with the CIO provides all IT services to PEP. The
solution for this process is suggested by ITSC is replacing the current customer billing and
payment system and processes. They have other condition as they want a new billing and
payment system and processes can be interfaced with other new IT systems and updated nosiness
processes as needed. PEP was lacking behind in raising funds for replacing or upgrading these
systems; the executives are committed to moving the company forward and improving PEP's
ability to manage its growing business efficiently and effectively.
The proposal is replacing the current customer billing and payment system processes.
The scope of this proposal is efficient from the management point of view as it assigns the
proper task to each and every department as invoicing department and customer department are
handled by the accounts receivable department, and customer payments are handled by the
accounts receivable department, which reports to the CFO. It is efficient from the consumer point
of view as it gathers all the information at one point. It also reduces the cost of the
implementation as no more workers are required for the accounting and keeping of the records,
which include Products Ordered, Product Ordered Date, Products Shipped, Product Ship Date,
Quantity, Product Pricing and Calculated Price.

The constraint of this proposal is limited finances; there is currently no money in the
budget allocated to replacing or upgrading these systems. The IT system proposal takes time to
gather the information and to look forward on how it will be implemented. Even after the
implementation of the software development, there are bugs involved in the system, which has to
be kept in consideration as it is a consistent process after the implementation of the software. IT
will require looking after the software to resolve the consistent lacking in IT and make efficient
changes.
The proposal is replacing the current customer billing and payment system processes.
Proposal state customer billing is handled by the invoicing department, and customer payments
are handled by the accounts receivable department. The ordering & shipping department sends a
monthly report to invoicing where the products ordered and shipped and their codes are entered
into the invoicing module. Installation services are offered as a fixed price fee for small
businesses. Larger installations are billed on the pre-defined hourly rate. The proposal required
the initial lump-sum cost for the implementation of the proposal. But after the implementation,
proposal reduces the cost of workers for keeping track of different element like placing product,
product price, discounts, etc.
Technical feasibility: Although it will provide higher feasibility and able to generate
future revenue but PEP is a small private business. Thus it will be a costly implementation of this
IT proposal, as this proposal need software engineers for maintenance. Thus, it is not very
feasible technically, because if the consumer is not able to access this technical system the
company can face loss in the future.
Financial is feasible as it helps an organization to cut the cost by replacing the tracking
working and complicated channels, records it which will save time as every staff member is able

to access it and get information at the same place. The proposal needs a one-time investment, and
implementation needs time, so revenue earns from the proposal will be realized later.
As the organizational point of view, it sorts the task at one place and makes a hierarchy
between the management, the task is clearly allotted to each staff member and they know to who
they have to report for a specific work. There is proper date allotted for codes and pricing,
invoice generates, customer payments, fees implication on overdue. Thus, for an organization it
is a feasible proposal.
The implementation of software development life cycle needs the required analysis,
designing of the project, implementation, testing project and making further changes or evolution
if required. This proposal is new for a small company like PEP and the company has no idea how
much quantity they have to deliver in nature, may be the system if feasible for small scale or may
be its feasible for very small scale. Thus, after the implementation only can an exact time be
calculated, the loopholes tells organization about the changes. Thus, it requires more than a
medium time span.
The required benefits, the company can maintain a large number of orders and keep its
record at one place; it will increase the efficiency of the organization and quality improvements
in worker performance. It will increase the quantity supplied by the organization as the company
is able to attract large buyers as they found it easy for placing and tracking their order.