Prep 1-888-JUNK-VAN

Problem/Issue Statement

• What is the problem?

Marcus Kingo, the sole proprietor of 1-888-JUNK-VAN, has a goal of expanding the business by franchising while preserving its virtual business model. As the business is vastly growing, his current process of daily operations is lacking efficiency. This is causing a loss of customers and damaging the business’s reputation. Kingo is in search of an IT system that can be quickly implemented, inexpensive and easily accessible by his employees. To create long-term sustainability, Kingo must choose an IT system that is suitable for the current business objectives and viable for foreseeable growth.

• What is the distinction between the problems and the symptoms?

The problem is the operational inefficiency caused by the current procedures in place. The symptoms begin with the complaints from frustrated customers due to billing errors, clerical errors, driver miscommunication, and loss of business. Clerical error causes the most critical impact, there are major delays in booking reservations because of only one live version of the database. This causes the company to lose customers and jeopardize their reputation.

• What is the scope of the problem?

The scope of the problem lies in the communication process of its current daily business process. As the company’s business grows, the harder it is to ensure that information is shared and that different functions work together effectively.

Situation Assessment

• What is the context of the problem?

Within the environmental and facilities service industry, the waste collection segment was a lucrative business and low entry barriers created a competitive market. Taking into account, a study published by Icon Group International, between 2009-2014, Canada was expected to represent the demand of 1.9% of the $129 billion latent demand for was collection. Therefore, the IT infrastructure implemented is a critical component in ensuring the capability of growth and efficiency. Competition within this market was mainly based on price. Therefore to keep internal cost down 1-888-JUNK-VAN has to implement an IT system that will facilitate the business operations and help employees do their jobs effectively all at a low cost.

• What are the decision criteria?

Central database with remote access: all employees should have access to a central database to      reduce confusion and errors

User-friendly system: Staff did not have high IT skills and Marcus Kingo did not have an IT background.

Cost: Business was too small to justify hiring an IT worker, the system had to be easy to implement, operate and mainly affordable.

Vendor support: This was important and necessary for as long as the company used the system.

Flexibility and vitality: The ability to handle the evolutionary changes in the market was essential.

Quick implementation: In a growing business time was of essence.

List of Plausible Alternative Courses of Action

• What are the alterative courses of action?

1) Microsoft Office Database:

Pros:

Implemented in a short time

Required a small budget

Option A: installing on a centralized server to be accessed remotely through a secure VPN

(OR) Option B: of local installations, which Kingo himself could easily install

Cons:

Option A: Kingo could not implement himself and might require IT help; cost of hosting the shared server

Option B: This option does not allow for remote access; daily manual updates needed

2) Custom Application:

Pros:

Build time approximately 4 weeks

Upfront cost is $2,000

Cons:

Upfront cost did not include any changes or adjustments that might be required

Maintenance cost was unpredictable

Quotes did not include data migration cost

Custom-made software could not be seen beforehand

Uncertainty of needs being met by product could increase cost

Support for custom applications were billed by the hour

3) Google Docs:

Pros:

Allowed remote access

Quickly implemented and easy to use

Online applications could be used to create essential documents

Forms could be quickly created and shared with employees

Users could work simultaneously on the same file

Email distribution was supported

Free for up to 10 user accounts with a small fee of $5 per user a month or a $50/user a year

Cons:

Spreadsheets could not be cross-referenced; Spreadsheet would be a single file and could cause confusion

Lack of formal customer support

Confidentiality issues

Uncertainty of Google’s action: what if they decided to cancel or suspend the service

4) Platform as a Service:

Pros:

Users could utilize common applications and build their own unique applications

Abiltiy to share computing platform that was provided and hosted by a third party

Implementation and data migration would only take about 3 days

Customization required more time and money; hourly charge

Long term contracts were not required

Kingo could scale the service up or down at any point or even cancel the service with a month’s notice

Cons:

Service package ranged from $300-$600 monthly depending on storage space and user licenses and applications needed

Kingo would need to know how much of a platform he needed or how much he would be willing to pay

Enterprise Resource Planning (ERP) System

Pros:

Remotely accessible

Integrates business processes (purchasing, sales, customer service, etc.)

System targets small and medium sized enterprises

Cons:

System package options were costly

Package mainly focused on modules Kingo had no need for, such as finance and production

20-25 users cost about $2,500 per user per year (license prices higher for companies with fewer users)

• How does each of these address the key problem?

-Microsoft Office Database would provide the option of installing a shared server so that remote access is available.

-Custom Application would allow Kingo to be specific about the features needed and the system could provide a central database, remote access and mainly user friendly.

-Google Docs had a low cost for small businesses, migration would be done in a couple of weeks and forms could be created quickly and shared simultaneously

-Platform as a Service allowed users to utilize common applications, remote access accessible, service could be scaled up or down at any point, and users could share files

-Enterprise Resource Planning System is remotely accessible, integrated business processes

Evaluation of Alternatives

As the company’s business grows, different issues require different solutions. What worked a year ago might not work for the company’s current growth. By expanding the business Kingo is relying on large volumes of database, billing information, contacts information for customers and employee payroll logs. There’s a lot of information to keep track of, use effectively and utilizing the right system is essential. Kingo’s goal of franchising the business requires an IT system that can be easily transferred and facilitate the internal processes. The right system will create the infrastructure needed to meet Kingo’s goal.

Recommendation

• What is a quality recommendation?

A quality recommendation would be to implement the PAAS system. The system, despite the cost meets every criteria Kingo is looking for. Long contracts were not required and the system could easily adapt to a growing business.

·       What is a logical recommendation?

A logical recommendation would be to implement a Microsoft Access Database. The reality is 1-888-JUNK-VAN consisted of 9 employees and the owner Marcus Kingo. Access to the central database would mainly be the 2 call center operators, 1 data clerk, 3 drivers and Kingo. The system is user friendly and as employees become familiar with the program, more intricate components can be added if needed. It may be necessary to purchase more sophisticated software as the business grows, and those businesses have an advantage if all of their data is stored in access. Many other programs can accommodate data exported from access, making it easier to migrate information when the time comes. The cost of hosting the shared server would be a fixed cost and therefore can be properly budgeted.

Presentation

• If I were presenting, how would I sum up the case?

      I would sum up the case by highlighting all the benefits this system provides and it’s quick    migration.

• What key visual aids would I present?

I would present with ppt and create a chart with all the pros and cons of each option.

• How would I “sell” the recommendation?

I would sell the recommendation by analyzing an assumption of cost and demonstrating the    simplicity of using access.

• What other delivery considerations should I keep in mind?     

Delivery considerations would also be diagrams on how this system works and how easy it would be to migrate within a short time.