University of Maryland Case of Trusty Carpets Risk Management Analysis Risk Management The purpose of this section is to identify potential risks to the p
University of Maryland Case of Trusty Carpets Risk Management Analysis Risk Management
The purpose of this section is to identify potential risks to the project, and convince the decision-maker(s) that the risks will be managed, so that they will have minimal impact on the project. It also alerts the stakeholder(s) to the most significant risks and what needs to be done to manage and mitigate them. Following the cost-benefit analysis, the next most important item to most senior leadership teams is risk. They want to know what risks will be introduced by the proposed solution and how they can be managed. In well-managed projects a separate “Risk Management Plan” is developed and used throughout the project. For the business case, a summary of the most significant risks is provided along with a completed Risk Matrix. This section will consist of the following:
A completed Risk Matrix as shown below. Since the Risk Matrix will be placed in the Appendix, this section should include a brief explanation of the Risk Matrix and make reference to it.
A summary that points out the most significant risks and what the stakeholder(s) must do to manage and/or mitigate them.
Risk Matrix
Risk Category
Description
Probability of Occurrence
Impact
of Occurrence
Strategy for Mitigation
Contingency Plan
Strategic
Business
Feasibility
Capability to Manage Investment
Organization and Change Management
Dependencies and Interoperability
Security
Surety (Asset Protection)
Privacy
Project Resources
Schedule
Initial Cost
Life Cycle Cost
Technical Obsolescence
Technology Environment
Reliability of Systems
Data and Information
Overall Risk of Investment Failure
(instructions)
Approach to Developing this Section
Work on this section should begin with filling in the Risk Matrix. The “How To Guide to Risk Management” (located in Content>Course Resources>Risk Management) provides an explanation for each of the Categories of Risk. It was published by a government agency, the Indian Health Service (an agency in the Department of Health and Human Services) for its component organizations to use in assessing risk associated with proposed IT projects. The guide fully and simply explains risk and risk management throughout the life cycle of a project. Appendix A contains a complete Risk Management Plan outline. Appendix B explains the risk analysis methodology and provides definitions for the risk categories listed in the Risk Matrix. Appendix C provides an example of a completed risk assessment, although it is in a different format with slightly different data required. Appendix D provides assistance in completing a particular form required by the U.S. Office of Management and Budget (OMB); it is not important for this class. Additional information about risk categories is provided in the document “OMB Risk Types Definition” (also located in Content>Course Resources>Risk Management).
Using the Case Study, the above resource documents, and the IT solution being proposed, copy the table and complete the risk matrix provided above, describing for each Category of Risk:
One aspect of how that risk category applies to the proposed IT solution for the Case Study (i.e., what risk in each category may be caused or influenced by implementing the proposed IT solution)
The probability (High/Medium/Low) of its occurrence,
The impact (High/Medium/Low) on the organization if it does occur,
A strategy to mitigate the risk (what should be done to prevent the risk from happening or protect the organization if it happens), and
A contingency plan for what should be done in the event that it occurs.
Provide one example risk for each category listed in the Risk Matrix. Explanations of each of the Categories of Risk are available in the document “How to Guide to Risk Management,” pages B3-B7. Definitions for probability of occurrence and impact may be found on page 7, an example of a mitigation strategy is given on page 9, and an explanation of a contingency plan is on page 8 of the same document. Do not limit responses to the space shown in table, but provide complete answers for “Description,” “Strategy for Mitigation,” and “Contingency Plan.” ( I have attached the document where you can get this)
In addition to the matrix, this section should introduce, explain and summarize the risk matrix, and indicate that the full Risk Matrix is located in the Appendix.
Finally, this section should identify and discuss the most important risks and how they will be handled. These are the risks that the sponsor, stakeholders and senior leadership should be aware of throughout the project. Some of them may be able to be mitigated; if mitigation is not feasible, the decision-makers need that information as well. This should be explained for the stakeholders. Sections 9-10: System Requirements and Context Diagram
Trusty Carpets
I.
Table of Contents
Background and Environmental Analysis ………………………………………………………………………. 4
A.
Background ……………………………………………………………………………………………………….. 4
B.
Environmental Analysis ……………………………………………………………………………………… 4
1.
Opportunity of Business Vision, Strategy, and Objectives ………………………………………………. 5
2.
Inefficient Processes and Technology……………………………………………………………………………… 5
3.
Competitor Products …………………………………………………………………………………………………….. 6
4.
New Technology Trends ………………………………………………………………………………………………… 6
5.
Commercial and Operational Trends …………………………………………………………………………….. 7
6.
Statutory and Legislative Trends …………………………………………………………………………………… 7
II.
Opportunity Analysis…………………………………………………………………………………………………….. 8
A.
Summary of the Opportunity ……………………………………………………………………………… 8
B.
Identification of the Opportunity ………………………………………………………………………… 8
C.
Alignment with Business Strategy ……………………………………………………………………… 10
D.
Supporting Evidence of the Opportunity …………………………………………………………… 10
E.
Expected Timeframe for Implementing the Opportunity ……………………………………. 11
F.
Positive Impact of the Opportunity ……………………………………………………………………. 11
G.
Reason for Selection ………………………………………………………………………………………….. 12
III.
Proposed Solution ……………………………………………………………………………………………………….. 12
IV.
Expected Improvements ………………………………………………………………………………………………. 13
A.
How the Proposed Solution Will Take Advantage of the Opportunity ………………… 13
B.
IT Solution Aligns with Business Strategy …………………………………………………………. 13
C.
Benefits from IT Solution ………………………………………………………………………………….. 14
D.
V.
1.
Financial Benefits …………………………………………………………………………………… 14
2.
Non-Financial Benefits …………………………………………………………………………… 15
Other Values of Solution …………………………………………………………………………………… 16
Alternatives Analysis …………………………………………………………………………………………………… 16
A.
B.
Business Alternatives Considered ……………………………………………………………………… 16
1.
Maintaining the Status Quo of the Business …………………………………………….. 16
2.
Proposed Solution for the Business …………………………………………………………. 18
3.
Alternative IT Solution …………………………………………………………………………… 20
4.
Improving the Business Processes …………………………………………………………… 23
Comparison of Alternative Solutions Table ……………………………………………………….. 25
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C.
VI.
VII.
Justification of Proposed System ……………………………………………………………………….. 26
Feasibility Analysis ……………………………………………………………………………………………………… 26
A.
Economic/Financial Feasibility ………………………………………………………………………….. 27
B.
Organizational/Operational Feasibility ……………………………………………………………… 28
C.
Technical Feasibility …………………………………………………………………………………………. 30
Requirements Checklist for the Proposed System …………………………………………………………. 31
A.
Functional Requirements ………………………………………………………………………………….. 31
B.
Data Requirements …………………………………………………………………………………………… 31
C.
Technical Requirements ……………………………………………………………………………………. 32
D.
Security Requirements ……………………………………………………………………………………… 32
VIII. System Users Context Diagram ……………………………………………………………………………………. 33
IX.
Project Management ……………………………………………………………………………………………………. 33
A.
X.
Aspects of the Project to be Managed ………………………………………………………………… 33
1.
Project Scope …………………………………………………………………………………………. 33
2.
Time/Schedule ……………………………………………………………………………………….. 34
3.
Cost ……………………………………………………………………………………………………….. 34
4.
Quality…………………………………………………………………………………………………… 34
5.
Communications ……………………………………………………………………………………. 35
6.
Stakeholders ………………………………………………………………………………………….. 35
B.
List of Project Team Members by Role ……………………………………………………………… 36
C.
Major Task Project Schedule ……………………………………………………………………………. 36
Acquisition Strategy…………………………………………………………………………………………………….. 38
A.
Scope of What to Buy ……………………………………………………………………………………….. 38
B.
Infrastructure to be Acquired……………………………………………………………………………. 39
C.
What Type of Contract(s) Should be Used …………………………………………………………. 41
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I.
Background and Environmental Analysis
The following paragraphs cover the background and current operations of Trusty Carpets.
General information is provided to have a clear understanding of the type of business that
is being operated. Also covered within this section are the current operations that include
the employees, locations, and financial profits. A brief timeline is covered because the
business is currently going through significant changes.
A.
Background
Trusty Carpets is a small retail carpet store located in a strip mall that has been
owned by the current proprietor for over 20 years. Current operational staff
includes the sole proprietor, two sales personnel, an accountant, and
subcontracting of a local installation business. Trusty Carpets currently utilize
basic information technology (IT) infrastructure to manage its current operations.
The basic IT infrastructure includes an existing internet connection, a computer,
two tablets, a multi-purpose printer, and a router. Customer credentials and
orders are currently managed with simple Google documents stored and shared
amongst employees, the accountant, and the installer utilizing the Google cloud.
Trusty Carpets primary objective is to expand. To pursue this objective, Trusty
Carpets is acquiring the property Metro Carpets that provides a large showroom
and an adjoining 20,000 square foot warehouse. Furthermore, Trusty Carpets is
fully merging with the installation business. With the acquisition of Metro
Carpets, the proprietor decided to keep the three sales staff and two warehouse
employees that were already on board. The carpet installation business operations
are all conducted internally to include an outside employee handling the finances.
Trusty Carpets employs two carpet installation teams that are staffed by two
personnel to each team. The carpet installation business includes Trusty Carpet
management, external accountant, and six personnel for staff. The acquisition of
the new larger space and the decision to merge with an installation company
provides the foundation Trusty Carpet needs to permit future growth.
Due to a lack of IT infrastructure, Trusty Carpet requires an upgraded IT solution
that is capable of efficiently managing all operations. This document will provide
a business case that identifies an IT solution that facilitates the growth of Trusty
Carpets.
B.
Environmental Analysis
Most profitable businesses adapt to their environment and the needs of their
consumers in all aspects of policies, technological, and operational processes. An
environmental analysis is conducted for utilizing industry-standard tools to
identify internal and externals factors that could affect the organization’s
performance. Not only were threats determined within this analysis, but
opportunities have also been recognized. This section will highlight the
business’s current challenges, potential problems, and possible opportunities.
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1.
Opportunity of Business Vision, Strategy, and Objectives
To achieve the vision and objectives that Trusty Carpets has presented,
implementing a wide range of technology solutions that best serve
customers and employees alike would be the best solution moving
forward. A cost-efficient but practical option would be utilizing a tailored
ERP software solution that could help Trusty Carpets produce the results
they are expecting. An ERP solution can easily be implemented into
existing processes and be tailored to fit the needs of current and future
demands. In addition to ERP software, mobile applications and hardware
can help Trusty Carpets expand their operations without the need for
costly infrastructure. These strategies are an agile but practical solution
that can help Trusty Carpets take their operations to the next level, without
exhausting excessive and precious resources.
Trusty Carpets is very behind in their technical business processes
regarding its competitors. The business is currently running a basic IT
infrastructure that has a connection to the internet. With a proper IT
infrastructure, Trusty Carpets will be able to manage both its locations and
its customer base. By utilizing these new technological solutions to reach
out, a new potential customer base for advertising promotions and sales
Trusty Carpets will be able to customize this technology to increase profit
margins, manage business objectives and strategies.
2.
Inefficient Processes and Technology
Trusty Carpets can develop a new IT infrastructure, and new business
processes to replace the current inefficient processes and technology. This
new infrastructure will offer better capabilities for the employees and with
the new customers that Trusty Carpets will be able to reach. This new IT
infrastructure, IT strategies, and business practices will better align with
the vision Trusty Carpet desires.
•
•
•
Paper-based records of the business currently being used are not able
to merge the information between the two locations. This prevents
employees from directly accessing customer information and records
between the two locations minimizing workflow between the two
operating carpet locations.
Trusty Carpets are lacking software such as an invoice system,
inventory management system, and a payroll system. Implementing
such essential software will eliminate the need for an accountant,
ultimately being more cost-efficient.
Trusty Carpets pays for advertisements and promotions in the local
newspaper. Adjustments to the marketing strategy to promote the
online aspect will enable Trusty Carpets to reach a broader market.
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•
3.
The basic IT infrastructure provided by Ben is minimal and lacking
security. With a basic IT infrastructure, Trusty Carpets runs the risk of
exposing confidential information to malicious attackers, which could
create a breach of confidential information, tarnishing the reputation
for the customers of the company. Lastly, there is a lack of connection
regarding the network with the new location, formerly known as Metro
Carpets. Merging information, such as customer information, sales,
inventory, and invoices, are critical to the company’s success.
Competitor Products
The use of engineered flooring, more commonly known as carpet tile, has
been growing in popularity over the years. The “Global Carpet Tile
Market Industry Analysis and Outlook (2016-202),” published by Koncept
Analytics, describes carpet tile as an integral part of the soft flooring
segment. Carpet tile is widespread, especially in corporate sectors like
offices and hotels. Koncept Analytics predicts that the carpet tile market
will grow significantly in the next years in the housing market due to
rising construction costs and increased home remodels. A particular
interest of Trusty Carpets is to move forward as an environmentally
friendly business utilizing recyclable carpet tiles.
Carpet tiles installations are limited, with no adhesive backing, which is
environmentally and recycling friendly, not to mention the carpet tiles
concept is mostly “do it yourself.” Additionally, consumers like carpet
tiles because they can replace sections of worn or damaged carpet without
having to replace large carpet areas. The features and choices in carpet
tiles are growing, which will drive increased growth in this market, which
would later be a market issue for the carpet sales and installation
businesses.
Sisal carpet is another competitor’s product causing concern for this carpet
business. Sisal carpet is natural and sustainable. Green flooring is a
growing trend. Homeowners preferring carpet made of natural materials
are buying sisal carpeting. Sisal is woven from extracted succulent plant
fibers derived from Agave sisalana. Sisal offers carpet that is sustainable
and biodegradable with options such as a fire-retardant and stain-resistant
great for high traffic areas. Sisal carpet is not as soft as other carpets.
Depending on the weave, it can be considered scratchy. Still, Sisal has
gained popularity because it is eco-friendly (Sullivan, 2019).
4.
New Technology Trends
Today, we are amongst a society that is making leaps in technical
advancements, which have inevitably leaked into how companies operate
6
on the day-to-day. Technology trends are making business processes
more practical, cost-efficient, and, most importantly, profitable.
Trusty Carpets is currently undergoing expansion and acquired Metro
Carpets as the sister store to Trusty Carpets. Before the expansion Trusty
Carpets lacked inventory space only storing samples making it
manageable to track inventory directly through manufacturers. Metro
Carpets is a much larger property offering a 20,000 square foot warehouse
alleviating the lack of storage for inventory. The flaw of Metro Carpets is
that they utilized handwritten ledgers to store customer records as well as
carpet inventory. Tracking of finances, bill distributions, invoices,
payment collection, and payroll are done by an outsourced accountant that
does not prioritize Trusty Carpets and the newly acquired Metro Carpets.
Enterprise Resource Planning (ERP) would rectify these manual processes
by offering a readily accessed overview of essential attributes within a
single mobile database that is in sync with both Trusty Carpets and Metro
Carpets. An example of a scalable ERP that directly aligns with the
Trusty Carpets needs is QFloors, which is an ERP that tailors specifically
to small, midsized, and large flooring businesses. Eliminating manual
processes and implementing QFloors would efficiently manage,
streamline, and track inventory, purchase orders, sales, customers,
accounting, job costing, checkbook, business labor reports, product
probability reports, CRM, and integrated estimation software (QFloors,
n.d.).
5.
Commercial and Operational Trends
Operational trends, such as business growth and expansion, should be
expected for the company. Economic trends such as inflation rate changes
in prices from one year to the next, or year-over-year. It is the
organization’s primary focus to understand that the market will continue to
result in new risks and challenges throughout the way. Trusty Carpets
needs to select the best team suitable who will be responsible for
evaluating and developing risk management strategies. Critical evaluation
of a risk management plan at every stage is vital, especially at an early
stage. It will allow companies to discover the flaws before it gets into the
action.
6.
Statutory and Legislative Trends
Government authorities have been known to change rules and policies
regulating how businesses perform their activities. The government will
always prefer to add something to an existing policy to ensure that they
are not termed outdated. It is Trusty Carpets responsibility to stay current
with environmental laws, policies, and regulations as they pertain to his
7
business. Trusty Carpets should implement a Compliance Management
System (CMS). A CMS helps manage risks associated with changing
product and service offerings and new legislation enacted to address
developments in the Marketplace. This will allow the organization to
understand its responsibilities, incorporate requirements into business
processes.
II.
Opportunity Analysis
The purpose of the opportunity analysis is to identify the potential improvements that can
be made within the business. It does not cover the solution that will be covered later on.
It is merely identifying the possible areas of improvement that are applicable to Trusty
Carpets. A general overview is first provided with a summary and an identification of the
opportunity that is present. It also includes the alignment with business strategy, a
timeframe expectation, the impact, and reason for selection.
A.
Summary of the Opportunity
Trusty Carpets has an opportunity to expand its carpet sales and installation
businesses by increasing IT infrastructure to similar systems that other industry
leaders are currently using. Implementing QFloors ERP will help reduce the
manual business processes to help increase productivity. Trusty Carpets will be
able to utilize QFloors by managing all of the customer and inventory data of both
business locations. Utilizing vacant space at the new location to store carpet to be
recycled will ensure Trusty Carpets will stay current with environmental
regulations. Lastly, the local government and community are changing and would
like to use more environmentally friendly materials that could attract a new
customer base.
The overview of the opportunity is as follows:
•
•
•
•
B.
The new IT infrastructure will provide a consolidated database for al…
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