WRTG 393 Feasibility Report

INTEROFFICE COMMUNICATION

To: L. Wiggers, Business Systems ManagerFrom: Christopher Baker, Operations ResearchSubject: Laptop Upgrade Proposal - CompleteDate: June 17th, 2011

This letter of transmittal we have sent includes our completion report from the proposed laptop upgrade you authorized earlier in June. Because of the aging technology, and its effect on our clientele, it is important our Sales Department immediately have their computer workstations upgraded. On numerous occasions, crashed and slow running programs have cost us time, and more importantly, money. Our study researched and sorted through the hundreds of laptops on today’s market to find the models and manufacturers who are best suited to fulfill Aim Investment’s technology demands. We further added and included the recommended buffer for technology upgrades. This will allow us to further expand sales or replace damaged units in the near future.

We carefully evaluated the major manufacturers of laptops, such as, but not limited to Toshiba, Dell, Panasonic, Lenovo, Apple and HP. Each company was broken down by their products, technical support, warranty service, and customer service. Furthermore, we developed a ranking system by which we could objectively score and rank the different models, and thus rank the laptops numerically.

In order to resolve the problems currently plaguing our sales employees, it is in our best interest to replace – not upgrade, our current inventory of computer workstations. Utilizing laptops will further improve our efficiency and allow employees to work at home as well as within the office. We have compiled a list of eight specific laptop models that best suit our company; and from those, selected one which we recommend for purchase. We strongly support the purchase of the Lenovo T520 for our technology needs. Should you require more information or wish to discuss this matter further please contact me at Ext. 4235. If there are any questions, please don’t hesitate to contact us. We are happy to assist.

Feasibility Study for Sales Team Laptop Upgrades

Completion Report

Prepared For: L. Wiggers, Business Systems Manager

Prepared by: Christopher Baker, Operations Research

July 17th, 2011

Table of Contents

List of Illustrations........................................................................................................................................ iv

Introduction............................................................................................................................................. - 1 -

Problem ............................................................................................................................................. - 2 -

Criteria ............................................................................................................................................. - 3 -

Options ............................................................................................................................................. - 4 -

Dell.................................................................................................................................................. - 4 -

Lenovo............................................................................................................................................ - 6 -

Panasonic......................................................................................................................................... - 9 -

Analysis ...........................................................................................................................................- 11 -

Recommendation...................................................................................................................................- 13 -

Bibliography.......................................................................................................................................... - 14 -

List of Illustrations

Figure 1. Dell

Figure 2. Vostro 3350


Figure 4. Dell E5420

Figure 5. E5420 Rankings

Figure 6. Dell XPS 15


Figure 8. Lenovo

Figure 9. Lenovo X220

Figure 10. X220 Rankings

Figure 11. Lenovo T520

Figure 12. T520 Rankings



Figure 15. Panasonic

Figure 16. Panasonic CF-52

Figure 17. CF-52 Rankings


Figure 19. Laptop Overall Ranking

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Introduction

Just a few weeks ago on June 19th, 2011, my department received notification that Aim Investments was exploring the possibility of restructuring its Sales Departments information technology with the purchase of fifty laptop computers. Upon receipt of that information, we commenced a research project to determine the corporation’s needs and expectations of the soon to be purchased hardware. By speaking with the Sales Department’s staff, we were able to determine the current requirements for the hardware and software in use, as well as new software emerging from today’s market. Furthermore, we were able to explore the environment and conditions in which the laptops are used, transported, and displayed. This allowed us to make an educated evaluation of the corporation’s need for warranty service. Additionally, the research conducted provided us an opportunity to view and sort through additional features or components that could improve the productivity. These areas researched provided us with a selection of different laptop models coming from three different manufacturers: Dell, Lenovo, and Panasonic.

The problem that was extensively covered was looking into the technological demands of the Sales Department. Technology is again, and in the ever changing world of business, productivity is core to our success. It becomes extremely hard to remain competitive if you are keeping up with your business competitors.

By reviewing computer sites such as PC Magazine, Consumer Report, Laptop Magazine and others, we were able to develop a ranking system by which we could assign point values to computer components, hardware, and physical structure of the units. This enabled us to rank each unit against another, regardless of the variable differences in components and construction. We identified eight separate laptop models from three competing manufacturers that would be most likely to fulfill our corporation’s needs.

Through our research and documentation we find that the Lenovo Corporation, previously known as IBM, will be most suited to our needs. The laptops are light, fast, and prolonged battery life – which is becoming important in today’s mobile business model.

The following sections will discuss the problems, options, criteria, analysis and findings of our research and work over the past month.

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Problem

Computer software developed by industry leaders continues to evolve, and provide businesses new tools, functions, and capabilities to utilize. This evolution brings with it heightened demands for computer performance, system storage, and supporting equipment. While some functions may still be performed with dated equipment, a system that does not perform to its full potential can be detrimental to the department.

These negative effects are not limited solely to the use of industry software; they can also affect our rate of production, document error rates, and slow our customer response times. It is important to note that “increasing business productivity, reducing cycle/decision time by staff, and/or increasing responsiveness,” to one’s client base is a vital component of improving financial growth (Kershaw, 2008).

Additionally, revamping our information technology infrastructure can not only increase efficiency, but also improve the quality of our services. Factors such as customer service, timeliness, delivery, and responding to customer’s needs are at the heart of these issues (Lee & Perry, 2002). No longer is there a question of “if we need it,” but more a question of “how long can we survive without it?”

In today’s economy we must take action now, and revamp our technology infrastructure to ensure our survival for the years to come.

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Criteria

1. CostThe most varying factor between all the notebooks is the cost. Each vendor charges different prices for different options. Cost was analyzed and scored based on the overall price of the laptop. The models that end the cheapest – will be ranked the highest. High cost is a negative factor.

2. WeightOverall weight is important for a laptop user, especially when they get to carry it around. When reviewing weight we looked and placed high value on the lightest laptops.

3. BatteryBattery life is important, using customer reviews from newegg.com and Consumer Reports, we are able to get information regarding the actual run time for the system when not connected to a power supply. While not specifically ranked by numbers, the nominal run time of a system was strongly considered for choosing the appropriate model.

4. StorageHard-drive storage requirements were categorized into different groups based on the overall capacity. Additional consideration was given to those laptops whose hard drives were above the standard 5400rpm, and utilized either solid state drives or 7200rpm disk drives.

5. PerformanceLaptops were ranked by their performance benchmarks for the processors, ram, and hard drive performance. The components were ranked with numerical values to determine the laptop expected to gain the best performance. Additionally, reviews from leading vendor sites, such as www.newegg.com and www.pcmag.com were utilized to verify our expectations. Benchmarks were obtained from PC World and were also utilized to determine which processors performed the best.

6. Technical SupportThere are many factors to determine when reviewing the manufacturers technical support score. Availability, utility, and cost will be analyzed. Technical support must be available 24/7 via phone. High rankings will go to those whose support services are operated by native English speakers. Having to communicate with a person who is ESL can be difficult and frustrating. This is a problem we certainly want to avoid having.

http://www.pcmag.com/

http://www.newegg.com/

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Options

The research we conducted has given us a good perspective on the three laptop computer manufacturers who will best suit our company’s current information technology demands. The vendors best suited are: Dell, Lenovo, and Panasonic. The current inventory of these manufactures was carefully scrutinized to identify the most suitable choices in models. At a minimum, all prospective laptop purchases have been verified to possess the following qualities:

(1) Windows 7 operating system (2) Compatible with Microsoft Office (3) Capable of connecting to wireless networks.

DellFounded in 1984, Dell is one of the largest providers of low to premium quality laptops. Dell’s large scale production size allows it to offer some of the best and most respectable prices among computer manufacturers. Cost is an area where Dell comes out on top and is able to jump into the top three. Dell provides warranty services that cover not just the laptops malfunctions, but any damage caused by its operators. These warranties are also reasonably priced. Dell’s technical support varies, and while the consumer line receives negative reports, the business line has positive results.

Dell Vostro 3350

Considered one of the leading laptops for small business (Cheng, 2011), the Vostro 3350 is equipped to perform in an office setting. The 13.3” screen is one of the downfalls, but the computer displays good resolutions allowing for side-by-side document editing. Importantly, the Vostro had amazing battery life, which can be important when moving around to meetings or different sales venues. Additionally, the Vostro 3350 won an editor’s choice award from PC Magazine in June of 2011. The Vostro retails at approximately $1342.00. When ranked on its

features, the 3350 obtain a near median score of 20, placing it right in the middle of the test group.

Figure 1. Dell


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Dell E5420

Designed as a business laptop, the Dell Latitude E5420 is designed for the mobile sales person. The E5420 series was selected because of its spill resistent keyboard, LCD barrier, steel hinges, and internal performance. Even with a low overall score of 16, mostly due to a low capacity hard drive, the E5420 was selected because of its minimal cost and wide array of features, which include a HD camera and wireless networking capabilities.

Figure 3. Vostro 3350 Rankings

Figure 4. Dell E5420

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Dell XPS 15

Selected as one of the premier mobile laptops, the Dell XPS 15 reigned supreme in reviews and performance. Scoring an astounding 25 points on our ranking chart, the XPS 15 was ranked #1. With a 15” inch LCD, a large capacity 7200rpm hard-drive and wireless features, the XPS 15 was selected as one of the first choice models for our research and testing. The cons of the XPS 15 is the low battery life and significant weight from all the included features.

Lenovo Lenovo manufactures some of the best laptops in regards to quality and performance. The laptop company prides itself on developing and producing laptops that will thrive in the business world. Many of their laptops are manufactured to mil-spec standards, which ensure that the quality is top-notch. Technical support ranked in the median, so not great, but good enough. Their extended warranties cover all the computers parts; additional protection can be added to protect the computers from accidental damage.


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Lenovo X220

The Lenovo X220 is a business powerhouse. It has extreme battery life and 2nd Generation Intel Pentium Core processors. This combination makes it perfect for the sales department. Lenovo has long been known for their amazing keyboard designs on mobile notebooks, and this X220 is no different. The negative to the X220 is the 12.5 screen size, however, what it lacks in screen, it makes up for in weight and performance. Earning 22.5 points, the X220 was only surpassed by the Dell XPS 15. The X220 as configured retails for $1639.00.

Lenovo T520

One of the more functional mid-range computers on the market, the Lenovo T520 is a slightly larger version of the T420. Other than a larger screen, the T520 offered little value over the T420 and appeared to come configured with fewer performance enhancing features out of the box. RAM in the base models was being increased over the lower models;

however, upgrading the computers RAM is a task the corporation could down on its own.

Figure 9. Lenovo X220

Figure 10. X220 Rankings

Figure 11. T520

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The T520 earned 22 points, placing it 3rd overall. Priced at $1157.00, the T520 laptop was less costly than the similarly configured T420.

Lenovo T420

One of Lenovo’s best-selling computers is the Lenovo T420. The T420 is almost identical to the T520, with the exception of a 1” in screen size difference. The 14” screen is perfect for everyday business use. The laptop comes highly recommend from business professionals around the notebook and laptop forums, as well those attending graduate school. The T420 can pack the same power as most of the models researched, and achieved an above median score when ranked against all the other laptop models. Priced at $1248.00 the T420 is competitive not just in performance, but in cost as well.

Lenovo is known for good technical support.




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Panasonic

Similar to Lenovo, Panasonic provides quality laptops that are made to last. The Toughbook® line of laptops from Panasonic last a long time in the business environment. Many of these laptops come in a tablet style which can be effective for sales purposes. Cost of Panasonic laptops is slightly above the median for similarly priced components. Customer service fared well for Panasonic, putting it in the middle of all other vendors.

Panasonic CF-52

The Panasonic Toughbook® CF-52 is a powerful laptop with a rugged design, allowing it to be used in a wide array of work environments, from the office to the steel mill. The Toughbook® has numerous features designed to prevent the laptop from breaking down when times get tough. The reviewed model had a 15.4” monitor which we have found to be the perfect size for business use. The Toughbook® was also ready for the road including some features such as 4G LTE wireless connectivity. We included the Toughbook as viable option for sales members who are on the road. The features present on the available CF-52

obtained an overall score of 16. The laptop, while durable, is rather expensive, as it totaled in at $1607.99.



Figure 15. Panasonic

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Panasonic CF-53

Cousin to the CF-52, the CF-53 model is reinforced with additional protective features. Additionally, it is constructed with high-grade 2nd Generation Intel Pentium Processors, specifically, the new Core i5 processor. We included the CF-53 for it’s additional features, which consisted of 4G LTE wireless capabilities and integrated webcam. The CF-53 scored 20 points in our laptop rankings placing it just under the mean laptop ranking of 20.31. However, while average in construction and features, the CF-53 was the highest priced laptop reviewed

totaling $2237.00. This high cost is partly due to the rugged construction and design the Toughbook® series is made to withstand.



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Analysis

Through our analysis, we were able to answer the questions presented in our proposal request.

1. Determine the baseline requirements for Sales Department Computers.

Because of the nature of the Sales Department, and their direct interaction with customers, we have determined that Sales requires 2nd generation Intel Core processors. A recurring comment when interviewing sales team members was that their applications are delayed, and run poorly on the old computers. Using new proccessors will allow their applications to run smoothly and efficiently, providing little lag and response delay when interacting with customers. To further improve the computers efficiency, and strike a balance of speed and spending, we have determined the baseline for RAM that will be acceptable is 4GB. Furthermore, as a minimum requirement, we have established that all laptop models must be compatible with the Wireless “N” networking standard. This will facilitate wireless communication throughout the Sales Department.

2. Warranty Service

Regardless of the make or model, computer failures will happen. In fact, our research shows that laptops have an approximate 31% chance of failure over a three year time period (Sands & Tseng, 2009). To mitigate these imminent failures, we gave increased scores to those manufacturers who authorized next day on-site service. Furthermore, accident protection was also included in each models pricing structure. We expect to lose roughly one-third of all laptops purchased in some form of user accident over the course of three years. Additionally, we have the option of obtaining third-party warranty service from companies like Square Trade Inc., (www.squaretrade.com) who can give accident protection and warranty service for a discounted price. These companies come highly recommended by many organizations, news sites, computer magazines, and laptop forums.

3. Identify the corporations need for additional features.

Moving into the new ages of technology, we have given strong weight towards specific features of security and photo technology. In today’s business environment, it is important to protect our data as much as possible. Additionally, because personnel are very mobile in today’s age, we have included the option of front-facing cameras as a strongly recommended option. These cameras can help facilitate communication with customers, employees, and also executive meetings. No longer will we need to waste precious dollars sending everyone to a board room; using these front-facing cameras we can video conference from our desks or workstations.

http://www.squaretrade.com/

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Putting together all of the available data, we were able to establish a ranking system, by which we can compare each model of laptop to each other. The following graphs are representations of our research.



Figure 19. Overall Ranking

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Recommendation

Limiting our decision to a specific brand and model laptop was certainly a complex task. Because of the massive quantities of laptops available on the market, we were forced to consult in-depth reviews and technical information to formulate a reasonable opinion on which make and model will best suit our needs. After a careful and thorough review of various consumer reports, technical reviews, and information contained in academic journals we have found that out of the eight competing models the Dell XPS 15, Lenovo X220 and Lenovo T520 are most suited for needs and demands of Aim Investment’s Sales Department.

Each of these models has their pros and cons. However, the model with the best balance, and thus best for our corporation, is the Lenovo T520. The T520 is exactly what our department needs. With the powerful combination of screen size, hard drive space, and RAM it will meet and exceed our Sales Department’s expectations for many years to come.

We also ask that you consider very strongly the additional purchase of 10 replacement units. In the event, that a disaster occurs, we can swap out the broken unit for a functioning one. More importantly, if we hire more employees in the Sales Department – they will also need a laptop. We have included the 10 additional units in a pricing structure.

Item Quantity Price Each Sub TotalLenovo T520 60 $1157.00 $69240.00

Tax @ .07% $4,846.80Sub Total: $74,086.80

10% Variance $7,408.68Total: $81,495.48

Therefore, based on all available information, we strongly recommend the acquisition of sixty units of the Lenovo T520 for Aim Investment’s Sales Department.

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WRTG 393 Feasibility Report