1-888- JUNK-VAN CASE STUDY

1-888- JUNK-VAN CASE

Kingo started the junk removal business in 2008. He opted for virtual design for his business which worked brilliantly. Revenue doubled during 2008-2009 operating in three Canadian cities. Due to the increased business, Kingo felt the need of having an affordable IT system that meets his operational requirements and allows the business to grow.

Issue:

Because of the absence of reliable IT system, serious problems originated such as sending the wrong version of the database to the morning operators, losing the record of already booked orders, maintaining the manual spreadsheets, delivering the instructions through emails containing the incomplete and incorrect information, resulting in dissatisfied customers due to poor service.

Desired IT system:

Kingo knew that the company needed an IT system with following characteristics:

·         Central database

·         Remotely accessible

·         User friendly

·         Flexible and robust to handle dynamic changes in the market

Kingo had five options to choose from.

Microsoft Access Database:

Pros:

Upgrades can be done within a short time. It requires small budget. It could be installed on a centralized server to be accessed remotely through the internet using a secure virtual private network (VPN). Kingo can install it himself locally on the computers with license priced $ 179 per computer. New database can be created in a couple of weeks by working during evenings or weekends.

Cons:

This option doesn’t allow for remote installation so each instance of the database has to be installed and updated manually. The costs are unknown for hosting the shared server and for any required professional development assistance.

Custom Application:

Pros:

Customized application provides central database, remote access along with some basic functionality.

Cons:

The build time is four weeks and it is priced at $2,000. Maintenance charges are $60 per hour per developer. It doesn’t provide any changes or adjustments if required. Extra money is needed to pay data migration. The programmers may or may not understand Kingo’s requirements. Support is billed per hour.

Google Docs:

Pros:

The forms application can be quickly created and shared with employees. Users could work simultaneously on the same file in a collaborative environment. It is possible to set different limits to access the data. It is free up to 10 user accounts and small business need to pay $5 per month per user or $50 per user per year. It can be implemented in a couple of weeks.

Cons:

All data would be input into an online spreadsheet and could not be cross referenced in a way it can be in relational databases. All of the data is placed on a single form enabling employees to also access data which is not related to them. Customers are uncertain about the existence and confidentiality of this facility by Google.

Platform as a Service (PaaS):

Pros:

PaaS is delivered on cloud computing infrastructure. It provides computation resources such as hardware, storage, network capacity and some basic software functionality. Kingo can use this common application or build his own custom application using a shared computing platform that is provided and hosted by a third party. Kingo has got the successful trial. There is no long term contract required. One month notice is required for cancellation of the service.

Cons:

Software developers are required to customize PaaS. Service package cost ranges $300 to $600 per month, depending on how much storage space and how many user licenses and applications are needed. It requires three days for migration and implementation.  More customization requires extra charge at about $180 per hour.  Kingo has to work out how much of a platform he needs and how much he is willing to pay.

Enterprise Resource Planning (ERP) System:

Pros:

ERP systems are built around central databases. They are accessible remotely and integrate business processes by covering every aspect of the business from purchasing, sales, and customer service, to finance, human resources and e-commerce. Several ERP packages are available for small and medium sized companies.

Cons:

In spite of their focus on small companies, ERP systems are very costly. An average small firm is expected to have 20 to 25 users and the cost for license is $500 per user per year. These systems are static focusing mainly on production and finance module which are not top priority of the company. Starting package consists of four users and it is priced at $12,000.

Recommendation:

After going through the pros and cons of each alternative, PaaS seems to be the best option. Once Kingo works out the desired platform, it provides hardware, storage, network capacity and basic software functionality. It requires only three days for implementation along with migration of data. It doesn’t require Kingo to have a server for installation as it is managed by third party. This system provides remote access and central database which minimizes the errors and eventually increases customer satisfaction. If further customization is needed, if can easily be done for $180 per hour. And if at any time Kingo thinks this system is not fulfilling his business needs he can cancel it by giving one month notice.

Presentation:

If I were presenting this case as a consultant I would describe the current issue and I would assess each alternative and describe the pros and cons of each. I would recommend the best alternative as per stated criteria of the IT system which is according to company’s needs. I would give the presentation through power point slides and would include a comparison table that would highlight each alternative.