Eproject Management and Change

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End of Module Assignment Autumn Term 2010

Managing e-projects and Change

Using the Deductive Technology Case Study you will be expected to hand in a report of

around 5000 words that contains 4 sections:

1. A management overview of how you see the project being managed and

implemented. A discussion of potential risks to successful implementation and

how they may be mitigated. (30%)

2. A project plan or Gantt chart, entered into a software package, showing the major

tasks, sub-tasks, resources required, deliverables, their relationship and expected

completion times. If there is no real start date please use Nov 8th 2010. Also show

any additional project management tasks. (30%)

3. A revised financial plan taking into account discounted cash flows, with your assumptions and an explanation of your financial plan. (10%)

4. A briefing paper to your management team on issues around change management

and changing established working practices. (30%)

Hand in Date on or before December 2, 2010

You should hand in copy on disk or similar to Reception in The Business School and

upload a copy of your report onto Turnitin via Blackboard before 3.00pm on before

December 2, 2010.

Work handed in up to one week late will be graded to a maximum pass mark of 40%. Work

handed in a week after an agreed hand in date will not be graded.

Pete Wraith

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Deductive Technology Case Study for M.Sc e-Business

The project idea described in the attached pages was originally drawn up by Steve Pilchard

an employee of Deductive Technology in close collaboration with Helen Ford the

company’s Finance Director. He had expected to do most of the work himself and had

planned it out to be a two year project. For various reasons Steve is no longer with the

company but the ideas he and Helen worked out are still relevant. Rather than replace Steve

Pilchard with someone of a similar background the company have employed a junior web

developer, Jacqui Jones and a recent graduate, Billie Bond to keep the existing business

systems “up-and-running”. Both these two new employees will be able to work on aspects

of the project under your guidance and that of the Senior Management Team.

The CEO and major shareholder Martin Large wants the project to go ahead but says the

company can’t wait two years and wants all work completing by end of July 2010. This

will mean running activities in parallel and bringing in some project managementexperience into the company (your role) to help deliver results on budget and on time.

You may make assumptions (your best guess) about information you feel you need to know

but which is not available to you. In such cases please state your assumption. For example

you may need to know the cost of borrowing money. Your assumption might be that an

unsecured business loan will cost around 8% per annum from Deductive’s High Street

Bank.

You may work in a group to discuss ideas but you should submit an individual piece of work the majority of which has been done by you rather than the group.

Pete Wraith

04/10/2010

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Project Background

Deductive Technology

Deductive Technology provides assistive technology; hardware and software for children

and adults with special educational needs, including access devices which enable those with physical or sensory difficulties to use a computer or communicate. Deductive’s software

helps develop skills such as understanding cause and effect, making choices, literacy and

numeracy.

Special Needs Market :

2% of children in the UK are educated in special schools and an additional 17% of children

have special needs but are educated in mainstream education. The total ICT spend in this

area per annum in the UK is £30m excluding PCs, networks, communications and

consumables.

There are additional opportunities in English speaking countries. Deductive Technology

has set up a subsidiary company in the US where the market is considered to be six times

that of the UK. Australasia and Canada are smaller but lucrative markets.

Additionally, the adult and aged population special needs sector is a market we have yet to

penetrate. We estimate this to be a market worth £50m.

Deductive Technology is the largest provider of Special Needs educational software and

hardware devices in the UK. It is also the second largest independent supplier of ICTequipment to Education in the United Kingdom. Deductive holds a unique position in the

market as not only a supplier but also as an information and training organisation. The

company has several competitors who offer elements of service provided by Deductive,

many of these are small owner managed enterprises, but only one offers a comparable

range of products and services. This company is Semerc, a division of Granada Learning

plc. Deductive holds a 25% share of this market. The company has a small share of the US

market but little in the Commonwealth and Adult Special Needs markets

Basic Company Financial Information :

The Company’s annual turnover last year was £7,238,160. Net profit pre-tax as stated in its last audited accounts was £693,539.

Value of exports as stated in its last audited accounts £243,225.

The balance sheet total was £776,798.

Number of Employees 29

Some Problems

Currently “home grown” business systems are in place. These enabled the company to

grow to its current size but further business development requires a radical restructuring

and integration of the company’s information systems. There can be no further growth insales till these issues are resolved. The company is seeking year on year growth of 10%

from the end of next financial year Oct. 2010. This will be facilitated by improved

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marketing activities and the use of more robust and integrated business systems capable of

supporting entry into US and other English speaking markets.

Implementing an integrated suite of software applications and consequent internal re-

organisation will streamline business processes and increase the ability to process more

orders. A new marketing strategy will widen access to markets as will an e-shop, integrated

with back end systems.

The core of any new IT developments will be an integrated back-to-back, “tele-sales” order

processing, stock control and purchase order processing system directly linked to an

accounting package working over a Virtual Private Network (VPN).

An analysis of customer behaviour, current marketing activities and market research will

generate plans for developing new products and routes to new markets.

These developments will improve internal efficiency and growth in markets across English

speaking countries.

A set of integrated activities are required to review business processes, marketing and

operational procedures, implementation of software to integrate business systems across the

company and its overseas operations over the VPN. This will develop methods for the

semi-automatic generation of an electronic shop and paper catalogue from its enterprise

systems and feed orders from the electronic shop back to its core enterprise systems. The

major aim being to increase profitability and market share through increased efficiency and

improved marketing activities.

The company may require some assistance with: ICT strategy development, Business

Process Modelling and Software Requirements Specification, but they are competent at building web based applications and integrating them with enterprise systems. They also

have experience in market research, marketing communications, customer relationship

management, catalogue operations, financial management and developing software

products for the special needs community. There is a budget of £10,000 for project support

in the figures at the end of the case study this equates to a notional 30 days at £300 per day

and £1,000 for travel and expenses.

Project objectives

To improve internal efficiency and increase market penetration the project will :

• Develop ICT and Marketing strategies capable of supporting a business strategy of

growth.

• Document requirements for and manage the purchasing and implementation of a

new integrated suite of enterprise software applications.

• Devise a change management programme to enable internal re-organisation after a

business process re-engineering exercise.

• Develop an electronic shop integrated with enterprise systems.

• Manage the integration of telephone and computer applications.

• Develop technology driven marketing activities to make better use of improved

customer information and its management.

• Develop an application for semi-automatic generation of the product catalogue• Specify requirements for and manage the implementation of a virtual private

network linking UK and US operations.

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Project Deliverables, Savings and Gains

Task No. Deliverables

4 & 11 Efficiency gains/ growth and Improved Management Information

available. £244k. ( Savings by not outsourcing IT support, redesigned work

flows requiring 2 less staff, better planning information. Growth: able to

process more orders)

13 Savings in Operational Efficiency worth £79k (reduction of 5 visits per year

to USA = £60K over 4 years, Staff time gained by not travelling £19K

21 Access to new markets via e-shop £287k (Efficieny savings in Telesales = 1

staff member over 3.5 years £87k, new market sales in other English speaking

countries = £200k)

22 Increased information and visitor tracking from web site statistics £29k

(Direct targeting of sales effort to existing customers and site visitors)

25 Automated Generation of catalogue £39k (Reduction in staff time equal to

0.5 of staff member over 3 years)23 Marketing strategy developed. Documentation complete and staff trained.

Improved marketing activities £125k (Generation of new sales)

Task Description Total

£k

Yr1

£k

Yr2

£k

Yr3

£k

Yr4

£k

Yr5

£k

4 &

11

Savings by not outsourcing IT support,

redesigned work flows requiring 2 less

staff. Growth: able to process more

orders

144 15 30 32 33 35

11 Improved management information better planning information and

inventory control

100 10 20 20 25 25

13 Efficiency in operation of group

reduction of 5 visits per year to USA =

£60K over 4 years, Staff time gained by

not travelling £19K via implementation

of VPN

79 3 18 18 20 20

21 Access to new markets via e-shop in

other English speaking countries =

£200k Efficiency savings in Telesales =

1.5 staff member over 3.5 years £87k,

287 0 37 50 100 100

22 Increased information and tracking from

website (Savings on targeting of sales

effort to existing customers and site

visitors)

29 0 5 8 8 8

25 Automated generation of catalogue,

reduction in staff time equal to 0.5 of

staff member over 3.5 years

39 0 6 11 11 11

23 Improved marketing activities

generating new sales.

125 0 0 25 50 50

Total 803 28 116 164 247 249

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The Original list of tasks that sequentially would take two years to deliver benefits

Task

no.

Task description

(where appropriate, please state how

the task will be carried out)

Effort

(in

person

weeks)

Deliverables

(in terms of contribution to the

operation of the Company

Partner or decision points)

1 Induction and Review Company’s

Strategic Direction

Induction to Company and work

shadowing of team to get a

complete overview of methods

of working.

Interview the 3 senior directors

to establish their view on

Opportunities, Threats,

Strengths and Weaknesses.

Collate findings in SWOT

document

Use SWOT document and

previous iteration of Company

Strategy Document to confirm /

revise Company Strategy

Meeting with the 3 senior

directors to establish that the

project, IS and IT plans address

the issues identified in the

SWOT analysis.

4

SWOT Analysis Document

IT Strategy Workshop

facilitated by Your

Company

Draft 1 of company IT

Strategy Document

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2Modelling Business Processes

Visit some customer sites,

attend Exhibition and / or Trade

Show

Shadow key staff to gainunderstanding of and document

sales order processing

procedures.

Shadow key staff to gain

understanding of and document

current nominal, sales and

purchase ledgers procedures

Shadow dispatch / warehouse

staff to gain understanding of

current product range and

document, stock movement

procedures.

Seek agreement from Key staff

that documentation is correct

4

Documented sales order

processing proceduresDocumented current

nominal, sales and purchase

ledgers procedures

Documented warehouse and

stock movement procedures.

Accuracy of documentation

agreed

3

Marketing Audits – Internal and

External

Internal Audit

Undertake an in-depth assessment and

analysis of Deductive Technology’smarketing related resources and

activities by primary (interviews) and

secondary research (internal

documentation):

Analyse:

Sales cycle

Customer information (previous,

existing and potential)

Internal marketing information

flows

Current marketing activityExisting corporate marketingimage/approach

2

Report on sales cycles,

internal information flows,

current marketing activities

and existing corporate

marketing image/approach.

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4

IT strategy development and IT

management.

Through interviews and review of

existing documentation

Document current web-site and

company catalogue generation procedures.

Gather requirements for a

virtual private network (UK &

US)

Review current IT system

management procedures

Oversee Implementation of

remedial actions required

maintain current systems as a

secure and maintain businesscontinuity.

From products of task 2 produce

an integrated business systems

model of current operations plus

problem areas.

Identify with senior

management team redundant

procedures, outline new

operating procedures and

expected re-organisation Produce outline design of new

proposed integrated set of

business systems

Set KPIs expected from new

Business systems

4

Documented current web-

site and company catalogue

generation procedures

VPN requirements list

IT Procedures Report

Updated IT management

procedures communicated

to IT based staff

Integrated business systems

model of current operations

Identification of efficiency

gains

Required Business Systems

over view document.

KPIs defined

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5

Completing the Requirements

Specification

Through interviews and working from

products of task 2 , the partially

completed specification documents

covering SOP, Stock, POP,Accounting requirements, web shop

and catalogue generation.

Establish additional data and

functional requirements

(Interviewing senior staff)

Establish non functional

requirements, support, training

etc.

Establish and document the

acceptance and evaluationcriteria. (Interviewing senior

staff)

Research pool of potential

software provides

Produce version 1 of proposed

IT strategy document including

software, hardware and IT

management plans.

4

Requirements Specification

Document

Acceptance Criteria

Document

Company IT strategy and

plans documented and

presented to relevant staff

6

Selecting the software application

suite

Issue invitation to tender and

organise demonstrations and

evaluation process

Presentation to key staff on

Tendering procedure.

Visit vendor customer sites. Manage software selection and

vendor in conjunction with

senior Company partners and

Academic Supervisors

Draw up Implementation plan

with chosen software vendor.

4

Invitation to Tender

Document

Milestone: Software selected

Implementation plan

communicated to staff

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7 Business Process Restructuring

Attend product configuration

training

Establish and document work flow procedures for SOP, POP

and stock control modules of

the selected application, using

process flow software.

(Interviews with product vendor

and Senior management)

Compare new procedures with

integrated business systems

model of current operations

(Task 4) and establish scope &impact of change and propose

Change Management Plan

3

New work flow procedures

identified and documented

Change Management Plan

agreed with senior staff new

procedures documented.

8 Preparation for Phase 1 ( SOP , POP

and Financial applications)

Implementation

Review Change ManagementPlan

Review Implementation Plan

Prepare all staff for

implementation process

(meetings / briefing sessions)

Organise and/or deliver product

training for staff

Establish and document

Nominal Ledger requirements.(From existing package and

Interviewing senior staff)


management reporting and

management information

requirements. (Interviewing

senior staff)


additional software

requirements

4

Updated Implementation &

Change Management Plans

presented to staff

Staff trained in new

application

Documented Nominals

Documented MIS

requirements

Documented additional

requirements

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9

Phase 1 Restructuring Work Flows

Review and communicate

Change Management Plan and

new procedures to staff via team

meetings and workshops.

Review and communicateImplementation Plan to staff via

team meetings.

Using ODBC links and SQL

write programmes to extract

data from :Stock files ,

Customer files , Sales ledger

files and Purchase ledger files

and reconfigure in preparation

for input into Test database

tables.

Implement new applications in

test mode

Carry out go live simulation – A

day in the life of Deductive

Technology using new

procedures

Agree plans with senior

managers and Vendors to

resolve system problems and

people issues

3

New procedures

documentedRevised implementation

plan for Phase 1.

Documented structure of

data tables for new

application

Document system problems

and people issues arising

from simulation

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10

Phase 1 Implementation

Working with software vendors

review implementation plan &

manage the implementation of :

The core financial applications

(nominal, sales and purchaseledgers)

Sales order processing module

Stock control module

Purchase order processing

module.

Check data formats from Task 8

and reproduce current data for

live operation

Collect and copy all user

documentation and store

Implement

Management Information and

reporting modules

The additional software

requirements

Cross check accuracy of financials.

Review information management /

backup procedures.

4 Communicate revised

implementation plan to all

relevant staff

User documentation

reviewed and additional

staff training needsidentified

Updated information

management documentation

communicated to key staff.

11

Phase 1 Implementation review and

fine tuning

Carr out User Satisfaction survey and

document all :

reported configuration

difficulties

user errors & training needs

Software errors

With management accountant check

production of : month end routines

Management reporting task and

develop other management

information reports as required

Review and amend overall IT strategy

document and phase 2 plan

Organise meeting to discuss and

present revised plans

4

Implement remedial action

as required

Staff trained and using new

systems

Milestone : ImplementedSytsem

Efficiency gains/ growth and

Improved Management

Information available.

£244k

Updated information

management documentation

and .

revised Implementation plancommunicated to affected

staff

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12 Specification of a Virtual Private

Network (Phase 2)

Identify potential VPN

hardware suppliers (Trade

Journals) Through interviews with

management team, University

staff and Vendors document

Business Needs ,Technical

Needs and Security Needs for

The Deductive Virtual Private

Network.

Submit specification document

to potential vendors

Evaluate potential solutions andchoose Vendor

Draw up VPN implementation

plan

4

VPN Requirements

Document

VPN implementation plan

13 Implemtation of a Virtual Private

Network

Purchase components

Install

Test security Test applications running over

VPN

Document normal operation and

recovery procedures

Communicate new procedures

to staff who will use

applications over VPN

2

Application running in UK and US over VPN

Updated IT management

plans

Staff trained in using

applications over VPN

Savings in Operational

Efficiency worth £79k

14 Build in vacation time 5

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15 External Audit : Undertake a

detailed audit into Deductive

Technology’s market.

Through the development of a

questionnaire, interview a sample of

existing and potential customers toestablish

1. the level of customer

satisfaction.

2. CSFs by market segments.

3. market requirements with

respect to

Buying behaviour and the

decision making process

Attitudes to purchasing

Market size and shares

Technological requirements

After sales service

Undertake research into Deductive

Technology’ competitor’s

3

1

Report on existing customer

profiles and buying behaviour,and create a customer

satisfaction survey report.

Report on market perception

and position of Deductive

Technology

SWOT and PEST analysis

(The better understanding of

customers will improve

Deductive Technology’ abilityto operate efficiently which

will in turn increase turnover

and/or profits)

Produce a market analysis

report.

Competitor analysis and

present

report to Management Team

16 Market Research and Information

Prepare a research proposal to carry

out market research to identify market

opportunities.

Undertake research and facilitate in

house brain-storming, gap analysis to

identify potential new markets /

products for. Grade potentials based

barriers to entry, suitability of existing

product/technology, strength of the

economy, political stability, size of market etc.

Investigate opportunities for online,

overseas, adult and early years

markets for special needs products.

Based on the information from tasks 3

and 15 co-ordinate and present

findings to the Management team.

Include a review of any resources for

product / market development,

identification of critical successfactors and identification of target

market sectors.

3

1

Proposal and plan including

methodology, aims and

objectives. Include budget

figures and expenditure

justification.

Report on recommendationsfor targeting new markets /

products and potential

customers.

Opportunities for business in

areas identified to increase

turnover.

Establish key performanceindicators

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17 Marketing Strategy based on tasks

15 and 16

Develop communications and

promotional strategy.

Develop marketing sub-strategy to

achieve the target growth in sales /

profits

Develop a marketing sub-strategy to

achieve the development of identified

markets / products to achieve target

growth in sales.

Develop outline a marketing

programme, plans for theimplementation of strategy and sub

strategies, resources, timescales and

budget implications, expenditure

justification. (To be implemented

during Task 23.)

2

2

1

1

Marketing strategy report

recommending company

approach to communications

and promotions.Report approved by senior

management

Marketing development

programme report, and

presentation for approval by

the Board.

Production of planned new

procedures and

implementation plan.

(Marketing programmes

approved by senior

management.)

18 Check quarterly reporting routines Review output from main financial

and Management Information

applications implemented in phase 1

adjust if necessary.

1

19 Preparation for Phase 3 (Electronic

Shop) Implementation

Gathering and documenting

technical, functional and

business requirements.(Interview key staff, ISP, review

existing site and competitor

sites)

Tools selection.

Devise phase 3 implementation

plan with key staff and

communicate it to staff involved

Undertake any required training

3

Electronic Shop requirements

specification document.

Phase 3 Implementation plan

communicated to affected

staff

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20

Phase 3 Implementation Visual

Using the product(s) selected in

15 (e.g. Shop Creator tools ,

Java, VB, HTML) build the

shop templates.

With ISP manageimplementation of web hosting

requirements.

Document web hosting

information and communicate

procedures to operational staff

4

Templates developed and testedUser department staff trained to

manage hosted application

21 Phase 3 Implementation Procedural

Write programmes to produce

input and output linkages to

main financial and SOPapplications using ODBC and

SQL.

Upload shop and test

Write operational procedures

for shop generation and new

order processing.

Train staff

Launch new trading site

Review informationmanagement / backup and

system operation procedures.

4Integrated electronic shop

generateded from enterprise

systems.

Staff trained to generate e-

shop and process orders

Updated information

management

documentation.

Milestone New E-shop

launched

Access to new markets via e-shop £287k

22 Phase 3 Implementation review and

fine tuning

Use tools and write programmes

for capturing and interpreting

web site visiting statistics,

particularly non-purchasers,

using tools provided by ISP todownload into Access database.

Develop automatic web traffic

reports using Access database

macros.

Train users to produce reports

With key staff and marketing

department (task 23) review

web site promotion and search

engine placement strategy and

carry out any necessary

remedial action.

4

Traffic reporting system

produced

Staff able to generate visitor

statistics

Revised website promotion

strategy and information

management

documentation.

Increased information and

visitor tracking from web

site statistics £29k

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23 Manage the implementation of the

approved marketing programme.

Development of promotional material

for the website and brochures as

required by the marketing strategy(task 17), to meet needs identified in

tasks 15 and 16.

Obtain feedback on company’s

products and marketing activity.

Establish and co-ordinate

marketing/PR activity through

external liaison with:

Customers, Agents, advertising

agencies,technical journals and press.

Implement market development

elements of the marketing programme

for current and proposed markets by

undertaking surveys of

customers

establish feedback system to

inform web team of findings on

perceived market direction and potential new products. (task

22)

2

1

1

Promotional material produced.

Promotional activities

undertaken and feedback

obtained.

Marketing plan for identified

market / product

implemented.

Produce procedures manual.

Summary report and

presentation on future market

development for approval.

Customer surveys report.

Feedback system to inform

technical personnel.

Improved marketing

activities £125k

24

Preparation for Phase 4 (Semi

automatic production of

Catalogues) Implementation

Gathering and documenting technical,

functional and business requirements,

through interviews with key staff and

print supplier.

Produce and issue Invitation to

Tender

Product and vendor selection.

Devise and communicate

implementation plan to key staff

Undertake any required training

4

Requirements Report and

Tender Documents

Phase 4 implementation

plan delivered to key staff

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25

Phase 4 Implementation

Install software and generate

catalogue and product display

templates.

Write VB scripts using ODBCand SQL to populate product

templates.

Write programmes to generate

despatch list from customer

database

Produce technical

documentation

Write procedures and train staff

to use new system

Liase with printer and manage

catalogue distribution

4

Updated IT documentation

User staff trained using new

method

Milestone : Paper and CD

catalogues generated from

stock system

Automated Generation of

catalogue savings potentialof £39k

26

Phase 4 review

Update system documentation and

user instructions.

Vacation Time

1

4

Updated information

management

documentation.

27Monitoring, Evaluation andProcedures

Identify success criteria based on

strategic objectives in each market for

on-going monitoring, evaluation and

updating of marketing plan, including

develop monitoring and

evaluation procedures

undertake on-going monitoring

of market performance.

Establish marketing planning

procedures to update marketing plan

based on results of monitoring,

evaluation and updated marketing

information.

Produce procedures manual and hold

marketing team workshops to develop

skills to revisit tasks 3, 16, 17 and 23

and communicate procedures

2

1

Proposals for monitoring and

evaluation criteria.

Monitoring and evaluation

manual.

Updates to marketing

information.

Marketing planning

procedures manual written.

Staff trained

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Estimates of Cost to deliver the project

Additional Company Costs

Description Estimate of costs (£)

Project management fees 10,000

Staff training in software use 5,600

Software purchases 40,000

Software server and E-Commerce / Web server 10,000

Fixed link Telecommunications Connectivity 6,000

Total 71,600