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Meyers Norris PennyMeyers Norris Penny
Diana WatermanDiana WatermanAlex GerlyandAlex Gerlyand
Bilal RanaBilal RanaAdeyemi AdewumiAdeyemi Adewumi
Roberto FurlettiRoberto Furletti
Practice Management SystemPractice Management System
OutlineOutline
Company Overview/HistoryCompany Overview/History The ProblemThe Problem Information Aspect of the ProblemInformation Aspect of the Problem IT/IS Aspect of the ProblemIT/IS Aspect of the Problem AlternativesAlternatives Analyses of AlternativesAnalyses of Alternatives The Preferred SolutionThe Preferred Solution Key messages for leadersKey messages for leaders
Board RoomSetting
Overview/HistoryOverview/History Est. 1945 Brandon, MBEst. 1945 Brandon, MB Accounting and Advisory ServicesAccounting and Advisory Services
Strategic service expansion in 2000 towards consultingStrategic service expansion in 2000 towards consulting As of 2001As of 2001
~75 full and PT Offices (BC to Ontario)~75 full and PT Offices (BC to Ontario) ~1000 employees -135 Partners, 900 staff~1000 employees -135 Partners, 900 staff Ranked 7 in CanadaRanked 7 in Canada
TodayToday 2200 employees2200 employees
Financially healthy – 10x growth last several years (case date)Financially healthy – 10x growth last several years (case date) 2000 – $70 M in Revenues (40% over previous year)2000 – $70 M in Revenues (40% over previous year) As at 2001 more growth and expansion forecast in non-traditional As at 2001 more growth and expansion forecast in non-traditional
services (i.e. IT Consulting)services (i.e. IT Consulting) **Reputation as an Innovator in technology with a pioneer spirit**Reputation as an Innovator in technology with a pioneer spirit
Developed in-house PM solution second to none in the periodDeveloped in-house PM solution second to none in the period
The ProblemThe Problem
MNP is faced with the decision of MNP is faced with the decision of whether to replace the whether to replace the company's PM system with a PC based system or company's PM system with a PC based system or continue to upgrade the existing VAX system as needs continue to upgrade the existing VAX system as needs arisearise
Both an operational and strategic issueBoth an operational and strategic issue OPS – maintaining obsolescenceOPS – maintaining obsolescence
Client service applications run in the PC environmentClient service applications run in the PC environment Administration applications run in the VAX environmentAdministration applications run in the VAX environment
STRAT – Future growth of MNP and add’l needs ***STRAT – Future growth of MNP and add’l needs *** IT consulting growth in particularIT consulting growth in particular
Information Aspects of ProblemInformation Aspects of Problem
MNP 100% dependent on IT based infoSystem performance is key to operationsReal-time or “near” real time info has
shown to be important factori.e. Time sheet accuracy/timeliness
Information quantity is assured to grow over time – MNP plans on growing. (Since the writing of the case, they have expanded further west into BC)
IT/IS Aspects of the ProblemIT/IS Aspects of the Problem
System scalability and flexibility key to MNP growth strategy
IT/IS system trends in the marketplace – related to obsolescence management
MNP as an InnovatorStaffing, technical and logistic difficulties of
running on two platforms
Meyers Norris Penny Meyers Norris Penny Executive Meeting AgendaExecutive Meeting Agenda
WelcomePractice Management System
PresentationOther Business Adjournment
Alex VAX OptionAlex VAX Option
ProsPros Our system has transcended beyond VAX The customized VAX based system has been a role-
model in the industry The VAX based PM application is part of our
competitive advantage Easy system upgrades Developing and migrating to a PC based platform will
be expensive
Alex VAX OptionAlex VAX Option
ConsConsLess intuitive for users system than a PC
based systemImpending VAX obsolescence
VAXVAX
VAXVAX
VAXVAX
ConsConsVAX system at end of lifecycle.VAX system at end of lifecycle.
VAX unable to support growth plans.VAX unable to support growth plans.
General migration toward PC platforms.General migration toward PC platforms.
Bilal - VAXBilal - VAX
S-CurveS-Curve
VAX
PC
Bilal - PC OptionBilal - PC Option
ProsProsBy acting proactively, we won’t be caught off-By acting proactively, we won’t be caught off-
guard dealing with the sudden obsolescence guard dealing with the sudden obsolescence of our VAX infrastructure. of our VAX infrastructure.
As early adopters of new technology, by the As early adopters of new technology, by the time the technology matures, MNP will have time the technology matures, MNP will have developed some expertise in it.developed some expertise in it.
Existing functionality can be ported into PC Existing functionality can be ported into PC environmentenvironment
Bilal - PC OptionBilal - PC Option
ProsProsEvery MNP employee has a PCEvery MNP employee has a PCMNP already largely PC basedMNP already largely PC basedStaff are already accustomed to PC based Staff are already accustomed to PC based
applicationsapplicationsQuality of commercial accounting applications Quality of commercial accounting applications
has improvedhas improved Important & required information is generated Important & required information is generated
by applications designed for PC platforms. by applications designed for PC platforms.
Bilal - PC OptionBilal - PC Option
ConsCons It will take time & investment to customize It will take time & investment to customize
existing commercial applications to existing commercial applications to adequately replace VAX functionalityadequately replace VAX functionality
VAX allows global updates in under 5 VAX allows global updates in under 5 minutes. This is not yet possible with PC.minutes. This is not yet possible with PC.
MNP users satisfied & proficient with VAXMNP users satisfied & proficient with VAX
Decision CriteriaDecision Criteria Allow for continuous innovation Platform must support new client applications and
internal functions Long-term cost to run the system Stability of the system Maintain a Practice Management System Staff Training requirements Ease of ongoing support Must be expandable/scalable Support paperless office environment End user satisfaction
Decision – PC EnvironmentDecision – PC Environment
VAX technology is obsolete – continuing investment VAX technology is obsolete – continuing investment will be costlywill be costly
Provides a platform to continue to innovate into the Provides a platform to continue to innovate into the future.future.
New industry applications run on PCsNew industry applications run on PCs Cost Benefit of migration in the long runCost Benefit of migration in the long run Support for PC environment is less expensiveSupport for PC environment is less expensive Maintaining the skill set for VAX will be difficult as the Maintaining the skill set for VAX will be difficult as the
industry moves away from supporting this platformindustry moves away from supporting this platform All staff currently have a PC or laptop so no add’l All staff currently have a PC or laptop so no add’l
investmentinvestment
VOTEVOTE
MNP SolutionMNP Solution(Info from O’Brien-Moran)(Info from O’Brien-Moran)
PC Environment ImplementedTime and Billing S/W re-written in PC
Customized S/W allowed tailored data gathering and robust data mining capability
Data also used for CRMStandardized work procedures – no need
to re-invent the wheel
Key MessagesKey Messages
Manage Obsolescence – Do not let it manage Manage Obsolescence – Do not let it manage you/your company (S-Curve)you/your company (S-Curve)
IT strategy must be in line with organizational IT strategy must be in line with organizational strategystrategy
Make the change while you can manage the Make the change while you can manage the transition – not when you reach a crisistransition – not when you reach a crisis
If you want to be known as an innovator, you If you want to be known as an innovator, you need to be on the leading edge of that need to be on the leading edge of that technology and ‘technology and ‘Best In Class’Best In Class’ at applying it at applying it