2010

Prepared by: Consulting Group D Theresa Dalberto Marybeth Derbyshire Mohamed Ali Fayyazi Lauren Roy7/13/2010

Analysis of Green_Delivery_rus.com

cost/benefit -1

risk

CPM

grade =-2

DFD -3

Grade 39/45

Executive Summary:

Based on our analysis of Green_Delivery_rus.com, a potential internet based company which plans to offer three services: placing food delivery orders, making emergency doctor appointments, and personal transportation arrangements, we recommend the investors (the “A” Team) proceed with their investment into the proposed company. It is our recommendation that the company maintain three employees, a web designer, a programmer and a systems engineer DO YOU NEED A PROJECT MANAGER???. Further keeping in line with one of company’s emphasis on a “green” approach to the industry to recommend the company buy energy efficient products such as those using solar energy.

By using available pricing information and industry averages we determined that

Green_Delivery_rus.com’s expected expenses would be well under the desired budget of $500,000. However, a decision as important as this cannot be based on prices alone. Potential investors must consider a variety of other risk factors, of which we identified the external risk factors as the highest potential threat. Entering into a saturated market with limited barriers to entry will add to the potential threat to profitability.

In addition to the evaluation of investment, proper implementation with the right systems and process is essential to the company’s survival. Therefore, our recommendation

also includes implementing MySQL, the database software, as part of their business operations and Adobe Creative Suite as part of their web design. In addition, the detailed project aids such as a Gantt chart, WBS breakdown structure and context diagram help to illustrate the various aspects of design, testing and implementation of processes the company should employ before proceeding with the daily operations of their business.

1.) Scope

Our analysis concluded that the scope of the company is to develop and implement a green, reference fee collecting website, Green_Delivery_rus.com, and information system within three months at cost not to exceed $500,000 overall. The project begins with the development of the information system and ends with the implementation of Green_Delivery_rus.com. The site will include three services: placing food delivery orders, making emergency doctor appointments, and personal transportation arrangements. Green_Delivery_rus.com will not provide deliveries or transportation and serves as the intermediary between the customer and the product. The target customers are people in Baltimore and the local surrounding area who are too busy or not capable of performing these tasks on their own. In each of the services, Green_Delivery_rus.com, will charge a referral service fee to the customer on each order. The site will provide convenient access to relevant businesses through which customers can place orders and make appointments. Due to the convenience of a central collection of resources, customers will pay a referral fee. The site and system will use environmentally sustainable IT by using solar powered servers, upgradable instead of replaceable PCs, Energy Star PCs and monitors, and virtualization. The project includes the hardware and software required to implement the information system and website. It includes establishing a customer database with data mining abilities and an online ordering system through which will collect a referral fee. A counter will be utilized on Green_Delivery_rus.com to determine the number of visitors to the site. The project does not include the continual maintenance and upkeep of the system and website, establishing relationships with local businesses, or marketing/advertising for Green_Delivery_rus.com.

2.) Base Line Plan

Activity Description Number of Days

Systems Analysis Identify the goals of Green_Delivery_rus.com 1

Feasibility study to verify appropriateness of facility and necessary technical and organizational knowledge

3

Evaluate areas for “green” system implementation such as solar power, Energy Star PCs and monitors, and virtualization

1

Establish system requirements:-Customer database with sales information-Online ordering system and referral fee collection-“Sustainability”

2

Systems Design Overall plan of information system and specifications needed to maintain Green_Delivery_rus.com

3

Installation and implementation of network layout including solar panel array for “green” energy and virtualization

5

Programming Purchase domain name Green_Delivery_rus.com 1

Develop website, customer database, and ordering system with necessary security controls

30

Testing Unit testing to test each part of the program separately 2

System testing to determine the functionality of the system as a whole

4

Acceptance testing of the system by the company and volunteer customer for final approval

7

Implementation Train employees to use and maintain the customer database, ordering system, website editing program, and troubleshooting

2

Activate Green_Delivery_rus.com 1

Production and Maintenance

Operate and evaluate the information system 7

Modify the information system (if needed) 7

3.) Critical Success Factors

Critical success factors (CSFs) are requirements often determined by managers necessary for the successful implementation of a project. These factors need to be met in order for the business project to succeed. The CSFs are goals which businesses should strive to reach and closely monitor during the implementation of a project. In the case of Green_Delivery_rus.com, the CSFs are as follows:

Quality of Service (good)o The service provided by Green_Delivery_rus.com constantly must meet

or exceed the customer’s expectationso Surveys and customers comments can be used to increase customer

satisfaction.o Exclusive or priority access to appointments and deliveries will be a

competitive advantage. Service development or continuous improvement

o New services need to be developed to retain old customers and attract new ones.

o Expanding into different services such as grocery, pet store, or emergency home repair services may increase customer base.

o Discounts or loyalty programs for repeating customers may increase return rates and satisfaction.

o Using sustainable IT measures will help attract an environmentally friendly customer population and serve as a competitive advantage.

Strategic Relationshipso New and desirable business partners will increase customer base.o The more restaurant, doctors, hospital, and transportation companies

that contract with Green_Delivery_rus.com, the more choices are available to customers.

o Increasing the relationships with other “green” businesses will help associate Green_Delivery_rus.com with other environmentally friendly companies.

Sustainabilityo The business and the employees should grow proportionally in order for

the operation to be maintained.o The employees need to be knowledgeable and proficient in maintaining

the website and establishing customer and partner relationships.o Current and constant updating of the website is necessary to show

preserve the clients.o Utilizing “green” measures should not overburden

Green_Delivery_rus.com. Money

o A constant and positive flow of income will benefit Green_Delivery_rus.com.

o Increasing revenues will allow for future developments such as expanding into physical delivery.

also other related CSF

24/7 support

minimum down time

Data security (like credit cards etc..)

no deadlinks.. which could turn customers away

4.) Resource Requirement, Allocation and Analysis (Cost/Benefit)

In order to fulfill the Green_Delivery_rus.com project, the following hardware, software and personal will be required. The following assumptions are used to determine the costs and revenues.

Assumptions: 0.1% of the population of Baltimore County and City will make 1 purchase

through Green_Delivery_rus.com per month. The referral fee is $5 per order placed through Green_Delivery_rus.com. The duration of the project will not exceed three months. The budget of $500,000 is for the year, and for three months would be $125,000. The facility provided by Green_Delivery_rus.com will have sufficient ventilation

and room for servers and system and sufficient space roof or property space for solar panels.

Green_Delivery_rus.com will provide a suitable internet service connection. Other costs (unexpected) will not exceed $1,000 in the 3 month time period. Three workstations will be adequate for software development and employee

maintenance. Necessary tools will be available for server and network installation.

Hardware

Two Energy Star Dell servers and virtualization will be used as a database server, web server, and email server. The database server will hold the customer information used for data mining. This includes order information and customer information. The webserver stores the information for the Green_Delivery_rus.com website and provides a place for the website to run. The email server allows for Green_Delivery_rus.com to send and receive email. The two

physical servers will be powered through 123 solar panels which provide enough wattage to support the servers. This was determined based on the energy consumption of the servers specified by Dell. Virtualization will maximize the efficiency of the servers while minimizing the physical server resource requirements. The web address serves as the location of the website and is rented on a monthly basis. The three energy efficient work stations and keyboard will be utilized by employees building and maintaining the website. Printer/fax can be used for daily business practices. The backup battery will be useful in the event of a solar or commercial power outage. Network cables and ends will connect the system throughout the facility. The server rack will house the rack mountable servers, network (VPN/firewall) switch and backup battery. The VPN/Firewall switch will protect Green_Delivery_rus.com from malicious attacks and provide remote connectivity to the network.

Software

A Linux based server system will reduce costs while providing similar functionality to the more expensive Microsoft Server Software. Adobe Creative Suite will provide for a rich user experience while using the services of Green_Delivery_rus.com. Authorize.net provide online payment through which referral fees will be collected. MySQL database software will be used to manage the information in the customer and order information data mining database.

need shopping cart

secure system payment

third part verification (like verisgn)

Labor

The web designer will build the Green_Delivery_rus.com website using the Adobe Creative Suite software. The Programmer will develop the database and its interaction with the website. Also, they will integrate the online payment portion of the site. The systems engineer will develop and set up the network structure and the solar panel array.

Other Costs

This includes unexpected costs that may be determined at a later point in the project which may include but are not limited to accidental damage, replacement parts, miscellaneous cables and connectors, etc.

Estimated Costs Dollar Amount Percent of BudgetHardware Servers (Energy Star) $4,798 0.96% Web Address $168 0.03% Energy Efficient Workstations $597 0.12% Energy Star Monitors $300 0.06% Printer/Fax $190 0.04% Keyboard/Mouse $108 0.02% Backup Battery (UPS) $152 0.03% Network Cable $97 0.02% Network Cable Ends $9 0.00% Server Rack $280 0.06% VPN/Firewall Switch $400 0.08% Rack Power Regulator $398 0.08% Solar Panel $147,600 29.52% Solar Panel Mount $6,150 1.23%Total Hardware Costs $161,247 32.25%

Software Linux Software Update Subscription $349 0.07% Web Design Software $1,899 0.38% Payment Software $339 0.07% Database Software $4,999 1.00%Total Software Costs $7,586 1.52%

Labor Web Designer $47,874 9.57% Programmer $53,937 10.79% Systems Engineer $70,061 14.01%Total Labor Costs $171,872 34.37%

Other Costs $12,000 2.40%

Population in Baltimore County and City- 1,422,537

need to identify tangible/intangible benefits and perform cost/benefit analysis

http://www.google.com/publicdata?ds=uspopulation&met=population&idim=county:24005&dl=en&hl=en&q=population+in+baltimore#met=population&idim=county:24005:24510

Hardware

Exchange Server (for company emails)- Microsoft Exchange- $699 http://www.microsoft.com/exchange/2010/en/us/Pricing.aspx

Web Address- Network Solutions- $13.95 per month http://www.networksolutions.com/domain-name-registration/step2-add-web-hosting.jsp?conflictBackPage=%2Fdomain-name-registration%2Fadd-private-registration.jsp

Energy Efficient Thin Client Workstations- $199 each, x3

http://www.amazon.com/Sunforce-NT-175U1-175-Watt-Purpose-Module/dp/B002L14KN4

Energy Start Monitors- $99 each, x3

http://www.bestbuy.com/site/HP+-+18.5%22+Widescreen+Flat-Panel+HD+LCD+Monitor/9543434.p?id=1218127631989&skuId=9543434

Printer/Fax - Canon ImageCLASS MF4350d Laser All-in-One Printer- $190 http://www.amazon.com/Canon-ImageCLASS-MF4350d-Laser-Printer/dp/B001EWDXO8

Keyboard/Mouse- Logitech Wireless Desktop MK 300- $36 each, x3 http://www.amazon.com/Logitech-Wireless-Desktop-MK-300/dp/B002B4P788

Backup Battery (Uninterruptable Power Supply) - $129 http://www.bhphotovideo.com/c/product/533943-REG/APC_SC450RMI1U_SC450RMI1U_Smart_UPS_Uninterruptible_Power.html

VPN/Firewall Switch- $400 http://accessories.us.dell.com/sna/productdetail.aspx?sku=A0440003&cs=04&c=us&l=en&dgc=SS&cid=27722&lid=628335

PowerEdge R610 Server- $2,399 each, x2 http://www.dell.com/content/products/productdetails.aspx/server-poweredge-r610?c=us&l=en&s=bsd&cs=04

Network Cable 1000 ft- $97 http://www.monoprice.com/products/product.asp?c_id=102&cp_id=10234&cs_id=1023402&p_id=2270&seq=1&format=2

Network Cable Ends- Pack of 100- $8.77 http://www.monoprice.com/products/product.asp?c_id=105&cp_id=10513&cs_id=1051305&p_id=179&seq=1&format=2

Server Rack- $400 http://www.newegg.com/Product/Product.aspx?Item=N82E16816129013

Server Pack Power Regulator- $398 http://www.amazon.com/APC-AP7900-Switched-Surge-Protector/dp/B0000AAAYH

Solar Panel- $1,999, x123

http://www.amazon.com/Sunforce-NT-175U1-175-Watt-Purpose-Module/dp/B002L14KN4

Solar Panel Mounting Kit- $50, x 123 http://www.amazon.com/Power-ARM-UNI-Tilt-Mount-Kit/dp/B00153CXOM/ref=sr_1_1?ie=UTF8&s=sporting-goods&qid=1278865440&sr=1-1

Software

Red Hat Linux Subscription (software updates and technical support)$349 per year https://www.redhat.com/wapps/store/catalog.html;jsessionid=Suc4GGuwSBX4QJ1adSrSSg**.87c55fb5

Web Design Software- Adobe Creative Suite $1,899 http://www.adobe.com/products/creativesuite/?sdid=FNIME&

Online Payment Software- Authorize.net Set up Fee $99, Monthly Fee $20, Transaction Fee $0.1, Batch Fee $0.25

http://www.authorize.net/solutions/merchantsolutions/pricing/

Database Software- MySQL $4,999

http://globalspecials.sun.com/store/mysql/ContentTheme/pbPage.categoryEnterprise?resid=MJusUwoBAlkAAEC5ayEAAAAq&rests=1278823032784

Labor

Web Designer $47,874 http://www.webdesignersalary.net/web-designer-salary-range.php

Programmer $53,937 http://swz.salary.com/salarywizard/layouthtmls/swzl_compresult_national_IT10000010.html

Systems Engineer $70,061

http://www.glassdoor.com/Salaries/systems-engineer-salary-SRCH_KO0,16.htm

5.) WBS Structure good idea to have these numbered

6.) Gantt Chart

Additionally indicated below is a Critical Path method, project schedule and the Gantt chart. This illustration can be accessed more clearly in the excel document attached to this report.

CPM is a networked diagram which identifies critical activities..not shown below

7.) Risk associated with the project

“Team A” in Green_Delivery_rus.com like to develop and implement a green, reference fee collecting website, Green_Delivery_rus.com, and information system within the cost of $500,000.However there are internal and external risk associated with development of the information system and with the implementation of Green_Delivery_rus.com. The internal level of project risk is influenced by Green_Delivery_rus.com structure, size, and level of technical expertise of “team A” and consultant “group D”.

The external level of project risk is associated with government regulations which create new requirement, organization change (such as merger, acquisition and partnership), and availability of better website with cutting edge technology in the market.

Structure: The structure of Green_Delivery_rus.com is clear and straightforward, so output and process are easily defined. User know exactly what they want and what the system should do for them, therefore such project like Green _Delivery _rus.com run a much lower risk (OK) than those with relative undefined and more complicated system.

Size: Green_Delivery_rus.com has relatively small size with three employees and the management determined to spend only $500,000. So this indicates that Green_Delivery_rus.com is not large scale system project and not complex, therefore it is easy to control. According to text book, “Very large scale system projects have a failure rate that is 50 to 75 percent higher than for the other project, because such projects are complex and difficult to control” (page 536).

Technology knowledge: Sam in “team A” is an engineer and he knows the importance of various projects and systems. It is highly unlikely the system experience a problem because Sam is familiar with the hardware, system software, application software. Then it is NOT a risk!!!

Government regulation: Government forcing companies to take security more seriously by mandating the protection of data from unauthorized access. Controls to secure data and prevent unauthorized access to system increase the cost of operation and this legal and regulatory requirement might push Green_Delivary-rus.com to look for merger, or partnership in the market.

Competitor: availability of another website with same services while utilizing cutting technology would be a huge threat to Green_Delivery_rus.com.

also:

hackers

business failure

dead sites

changing requirements

behind schedule

Risk assessment

In order to determine the level of risk to Green_Delivery_rus.com “team A” and consultant group D conduct the risk assessment. Based on the risk analysis the external risks most likely remain the biggest threat for Green_Delivery_rus.com so far. The reason the company remain a vulnerable to external risk, because the company has access to limit amount of money. Therefore government regulation and competitors will make the Green_Delivery_rus.com to invest its cash to fulfill its legal obligation, in addition company need to upgrade, enhance the Green_Delivery_rus.com technology in order to keep up with its rival in the market.

Controlling risk factors

After determining the level of risk to Green_Delivery_rus.com, “team A” needs to set up team meetings frequently. Managing technical complexity in Green_Delivery_rus.com, managing the firms’ size, maintain essential technical skills, and reviewing environment change will help the Green_Delivery_rus.com to control the risk factors. One of the essential parts of controlling risk required having technical skills or expertise, so if the Green_Delivery_rus.com can’t effort to hire skillful employee, then the company need to outsource its need.

8.) Appropriate System Development Methodology

An appropriate system development methodology for Green_deliver_rus.com is a prototype approach using RAD tools. A prototype approach allows for user input. User involvement throughout the development encourages a user friendly experience and user acceptance. Using RAD tools ensures a high quality system is delivered quickly at a relatively low investment cost.

9.) Context Diagram

One of the processes identified is food order processing system. The context diagram (data flow diagram) for this process is illustrated below.

DFD

Context diagram only has one main process, in this caseORDER systemNeed credit Agency to verify paymentsdatabase symbol not correct

Payment Fee Assessment Process

Restaurant Billing Customer

Database

Order Placed Food Order

Restaurant Order Submitted Process Menu

Menu ItemsSelected

Food PreparationFood Delivery Process

Customer Delivery

10) Recommendations

Based on our analysis, the investors should proceed with this opportunity. We recommend the company maintain three employees, web designer, a programmer and a systems engineer. Further keeping in line with one of company’s emphasis on a “green” approach to the industry to recommend the company buy energy efficient products. Additionally as indicated in our analysis, the company would be advantageous to RAD tools in their implementation of their Linux based software.

Potential threats and a saturated market may make it difficult for initial entry but with a well constructed website and minimal marketing effort using the anticipated available funds, the company’s benefit should outweigh the risk.

Appendix A: Grading Criteria

Requirements Maximum Points YOUR Points

Executive Report with recommendations

10

Parts 1-4 10

Part 5 5

Part 6 5

Part 7 5

Part 8 5

Part 9 5

TOTAL 45