IT Management Writing Paper (8 pages)

Description

Sample paper is provided, please completely follow it!

The story need to be read and requirement is at the end of the story.

SMB Case – Rock Solid Industrial
Parts, Inc.
(Information for: Case Analysis, Presentation and
Briefing)
The Opportunity
You work for a family owned industrial parts distribution business (Rock Solid Industrial Parts,
Inc.) located in San Jose, California that is expanding very rapidly. Currently at about 36
employees, the business is expected to grow to over 70 employees within 3 years and cover
the entire west coast and mountain states. Current sales of $33 Million/year are expected to
more than double to $72 Million in that timeframe. Your background and education (MIS from
SJSU) has made you the go-to-person for all technology related issues in the company. As the
only individual in the company with a technical background, the Owner/CEO of the company,
Philip Hurd, has come to you for advice on what IT/IS systems the company should be thinking
about implementing to enable continued profitable revenue growth by improving the
efficiency and effectiveness of the business over all. You know the company is in the process
of hiring a Senior Director of IT, Janice Drake, who is a relative newcomer to the industry and
may not be onboard before the presentation is due. This is your big opportunity to show what
you can do to help drive continued growth as well as insure the solutions you pick today will
continue to scale with the business over the next decade. A great job will look good on your
resume.
Background
In the late 1930’s Philip Hurd’s grandfather, Hugh Hurd, started an industrial parts distribution
company in Sunnyvale California close to the Joshua Hendy Iron Works. Upon returning from
the Pacific after WWII, Hugh’s son Jack took over the business and moved it to its current
location in South San Jose. Throughout their high school years his sons Philip and Tim worked
in various roles within the company gaining extensive working knowledge of the industry. In
1970 Jack retired leaving the business to Philip and Tim.
Today, Philip (61 years old) and his brother Tim (59 years old), CEO and COO respectively, run
the company. Their high school buddy Don McCloud (60 years old) is the CFO. David Simpson
has been with the company for over 25 years moving up the ranks to VP of Sales. The four Clevel executives are steadfast golf buddies, playing almost every Sunday at the Silver Creek
Valley Country Club. Tom Smith, Regional Sales Manager for the pacific states is married to
Tim’s daughter Becky. When David retires, he will most likely become the VP of Sales. Philip’s
son, Phil Jr, is planning on leaving his finance job at Northrup Grumman to join the business as
CFO when Don McCloud retires in 5 years.
Having worked outside the family business for many years, Phil Jr. sees the potential for
growth and is the main strategic architect for growing the business. He has counseled his
father on what technologies might be needed to expand the business. Being in finance at
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Grumman, driving profitable revenue growth is his primary objective. He operation is heavily
supported by IT/IS so he knows the potential benefits of technology use in a business. When
his father retires in 10 years he will likely become CEO.
The Strategic Plan
The strategic plan is to grow the company from current sales of $33 Million/year to $72
Million in three years by aggressively expanding into southern California and the Mountain
states. Jim Donner, a 27 year veteran employee and rising sales star, has been chosen to lead
the effort in the Mountain States. A mixed model of direct and independent sales
representatives supported by inside sales has worked well for the company over many years
so the intent is to continue the model. The company has no sales offices – The Sales Reps all
work from home or an office of their own choosing. Southern California will have a small
satellite office in LA or San Diego and the new Mountain States Region will have a regional
office in Denver.
Current Staffing
3 Year Expansion Plan
Headquarters Office
San Jose
Southern California
LA or San Diego
Mountain States
Denver
CLevel 4
Executives
0
0
Operations
0
0
1 (Doubles as Office
Manager)
1 (Doubles as Office
Manager)
Finance
Accounting
5
& 4
HR
1
0
0
Marketing
1
0
0
Admin
3
0
0
Sales
Field Sales 10 + 1 RSM
Inside Sales 4
Apps Engineers 2
Field Sales 10
Inside Sales 4
Apps Engineers 2
Field Sales 10 + 1 RSM
Inside Sales 4
Apps Engineers 2
IT
1 Technician (addition
of 1 senior manager and
2 staff planned)
0
0
In this type of business, long term relationships are very important. Sales reps tend to bring
their best customers with them as they move from distributor to distributor. Rock Solid is
intending to leverage this fact to grow very quickly by sticking to an experienced independent
sales representative model with only a few direct sales people for large critical key accounts.
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Sales Staffing Table
Year 1
Year 2
Year 3
Revenue
$40 Million
$55 Million
$72 million
Sales Headcount
17
35
50
2
2
Accounting/Office 2
Mgr
The company plans to use technology to minimize operating overhead as they grow and to
keep the organization as flat as possible by improving the efficiency and effectiveness of the
organization.
The Organization
The Headquarters’ organizational structure and operational functions are very typical of an
old line industrial distributor. (Blue = Existing Organization
Green = New Positions being
added)
Philip Hurd
CEO
David Simpson
VP Sales &
Marketing
Marketing
Tom Smith
Regional Sales Mgr
Pacific States
Jim Donner
Regional Sales Mgr
Mountain States
Don McCloud
Tim Hurd
CFO
COO
Finance &
Accounting
Shipping and
Receiving
Inside Sales
Inside Sales
Janice Drake
Senior Director of
IT
Inventory
Management
Outside Sales &
Field Applications
Outside Sales &
Field Applications
Human
Resources
Facilities
Advised by Phil Jr., Philip Sr. is driving the change. Having read about the benefits of CRM
automation, David, acknowledges the need for better technology as the sales force grows in
number and territory reach. Don McCloud, CFO, has serious reservations about changing
anything. His tight control of the financials has kept the company very profitable even during
the “great recession” of 2007/2009. Everyone in the company is making good money. His
view: “Why change what isn’t broke?” Don is not technical (he gets his technical information
from the Geek Squad) and doesn’t appreciate importance of technology’s role in helping
companies scale. Tim Hurd, COO, is on the sidelines with a wait and see attitude. As an
executive team, they have all agreed to give the Strategic Growth Plan a shot and on the
advice of Phil Jr. they have hired Janice Drake as Senior Director of IT from a small technology
company in San Jose to manage the new IT/IS implementation. You will most likely report to
her with a promotion if things go well. They are even thinking about remodeling the office
space to make it look more modern and inviting.
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The company is not very technologically oriented. Today, most everything is being done with
desktop computers, paper forms, Excel and Quicken. The company has only a rudimentary
online presence and an antiquated Plain Old Telephone System (POTS). Most of the workers
are conservative, older (average age 55) and have been with the company for more than 25
years. They are comfortable with computers but do not Facebook or TXT. Many do not even
have smartphones. In short – they are not very technically savvy and will likely be very
resistant to change.
The current field sales operation is very local. Even though most of the sales people work
from home, they come into the office every Monday morning for a weekly sales update
meeting (issues, resolutions, sales forecasting) that sometimes includes training by key
vendors. During a brief conversation with David (VP of Sales and Marketing) you discovered
vendors often require both a white board on which to draw diagrams and a projector for
PowerPoint slides during training meetings. Provisions must be made to continue these
meetings to include sales people who are in remote locations or working from home.
The Warehouse Operations is automated to the degree that they use barcode scanners,
however, there is no automated inventory control and no LAN in the building except in the
front office. Everything is handled with Excel spreadsheets that are PDF’d and emailed
weekly to the sales reps. Inventory management is becoming an issue. Today there are 100K
SKUs in inventory and growing as they expand into new repair service areas.
A small room is located in the
building at the comm utility point
of presence. A high-speed
commercial grade fiber internet
termination is available but unused. AT&T consumer DSL plus
consumer grade switches are
currently supporting the company’s
connection to the internet. An old
PC is being used as both an FTP
and a print server. The desktop PCs
are old and running Windows 7 –
some are still using CRT monitors.
The PCs are running various older
versions of MS Office and
QuickBooks is being used for the
accounting software. HR is
completely paper based with
payroll outsourced to ADP.
SMB Overview
Over the past decade, the small business market has become a popular and increasingly
contested market for technology companies. While there are many definitions of what
constitutes an SMB, the most common are based on the number of employees. Generally,
businesses with fewer than 100 employees are classified as small and those with between 100
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and 250 are classified as medium. The opportunity in the SMB market is significant; however,
the large number of small businesses and the low IT spend per business makes it a difficult
market to penetrate. For example, according to Compass research, there are 2.4 million
businesses with fewer than 1,000 employees in the US and 2.3 million of those have fewer
than 100 employees.
Small businesses constitute the majority of businesses worldwide and they are growing at a
faster rate than large enterprises. According to IDC, worldwide SMB IT spending continues to
grow beyond the half-trillion-dollar threshold at roughly 2 percentage points over the rate of
GDP. SMB IT spending will be approaching $700 billion in 2019. In a recent market research
study conducted by Compass, small business owners identified their most important IT needs
as: attracting new customers, serving existing customers better, increasing employee
productivity, lowering operating expenses, and improving collaboration among workers. Now,
more than ever, hardware and software technology companies are focusing on providing SMBs
the products they need to meet these challenges.
Technology Infrastructure Overview
As a business’s networking needs expand, the need for managed switches increases.
Managed switches are essential for larger networks and those with voice or video traffic
(video conferencing) which needs to be prioritized above data traffic to ensure high quality
feeds. Another important feature on managed switches is Power over Ethernet (PoE) used to
supply power to devices such as wireless access points or IP phones so that these devices can
be installed in locations that lack easy access to a power outlet.
Routers are used to connect to the internet and to send traffic between Local Area
Networks (LANs). Routers connect physically separate networks such as office floors, different
office locations or VLANs (Virtual LANs) into one seamless network to the end users. Routers
also provide additional security and protect against denial of service attacks and other
security threats.
Designing the right network architecture requires a degree of technical expertise that most
SMBs do not have in-house. As a result, the majority of managed and unmanaged switches are
sold through Value Added Resellers (VARs) who perform a network assessment to understand
the business’ needs and then design the architecture, install the network and often remotely
manage the network for the SMB.
More advanced infrastructure technologies include security, Unified Communications, and
wireless technologies:
Security – Most vendors today build security features into every product it sells. In addition,
many vendors also sell a number of other security products such as spam blockers, firewalls,
and identity management software.
Unified Communications – Unified Communications, or UC, is a broad category that refers to
applications that combine voice, data, and video over the same network. Cisco is the
worldwide leader in Unified Communications followed closely by Microsoft. Historically, PBX
(public branch exchanges) were used as the network to carry voice traffic. However, with UC,
voice traffic can be converted into packets and passed over an IP network and reassembled on
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the other end.
Combining voice and data networks generally saves businesses money because they only
must maintain one network and allows for new productivity features such as accessing voice
mail on the desktop as an example.
Installing UC begins with a network assessment and often requires an upgrade to the
existing network infrastructure to ensure that the network can support high quality voice
traffic. Nearly all SMBs work with a VAR to conduct the network assessment and deploy the
UC solution. One of the barriers to adoption of UC has been the upfront capital cost, which
many SMBs are not willing to undertake even though UC will save money over time through
lower telecom and network maintenance costs.
UC adoption has accelerated in the Enterprise market over the past few years, but SMBs are
only just beginning to adopt this technology. The most popular UC products for SMBs are IP
telephony solutions, such as Cisco’s Smart Business Communication System that combines a
network foundation with security, wireless, and voice applications all in one system.
Wireless – Wireless networks consist of Wireless LAN controllers and access points (APs).
Similar to UC, wireless networks have been widely adopted among large enterprises, but SMB
adoption is much lower. Wireless products range in complexity from simple standalone access
points that are easily installed and require little or no setup to more complex networks
consisting of multiple APs integrated into a seamless m a n a g e d network.
In an industrial setting, AP specifications, placement and antenna design become more
critical to maintain speed and connectivity than in a consumer application, particularly in
buildings with metallic structure interference/multipath reflections. A standard consumer AP
will not perform well in this environment. To help solve this problem, APs with MIMO and
beam forming technologies use multipath reflections to gain significant signal strength and
improve reliability. Improved reliability translates to a greater coverage area for a given data
rate.
As the complexity of the network increases, many SMBs will enlist the services of a Va l u e
A d d e d Re s e l l e r ( VAR) to help them optimize the locations of the APs to avoid dead spots
and improve connection speeds throughout their office. As a result, wireless products are sold
through a variety of channels including retail, online resellers, and VARs. Wireless is high
growth segment for SMB.
Your Task
Your task is to understand the issues involved and to apply new/modern IT/IS solutions to
marketing, sales (independent mobile workers supported by an inside sales desk), inventory
management and accounting to support the Strategic Growth plan. To keep overhead expense
growth to a minimum the entire business must become more effective and efficient as it
expands. Your budget is $250K to $750K.
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There are several questions that you must consider in your analysis. Please answer them in order
given and restate the questions as a 4 to 5 word header statement:
o Should the company automate, informate, re-engineer or paradigm shift? Why did
you make the specific choice? Cite best-in-class examples that support your choice.
1. Using Leavitt’s Diamond Model – Modified, please cover the four main areas*:
a) Process
b) Structure
c) Technology
d) People
3. High-level Budget for the implementation (presented in a table). Cite your sources.
4. Timeline for the Implementation.
5. What will the toughest implementation task be?
6. What risks are there of following your strategy? How would you mitigate them?
(Remember – If you highlight a Risk you must always propose a Solution.)
8 pages, single space. Sample is provided, please completely follow it!
Use some citations from other websites (No wiki please)
Mainly focus on Technology part.
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SMB Case – Rock Solid Industrial Parts, Inc.
March 16, 2017
Executive Summary
Rock Solid Industrial Parts, Inc. is expanding quickly from a 39 employee company to a 70+
workforce and is expanding to locations in Southern California and Mountain states. With this
rapid increase in growth and hiring a new director of IT, recommendation for new IT/IS
solutions to improve efficiency and effectiveness is needed. With the help of the implemented
IT/IS solutions , the company will continue its growth and increase its overall performance.
Introduction
After many years of working for Rock Solid Industrial Parts, Inc., the growth achieved in the
company is apparent and to drive change, change is needed. A new Senior Director of IT is
joining the company and the President/Owner needs a recommendation on what IT/IS systems
will help the company improve the efficiency and effectiveness. The recommendation should
help the company towards its goal. The goal to grow current sales of $33 million a year to $72
million in three years and to also expand into the areas of Southern California and the Mountain
states. The new IT/IS systems should continue to scale the company over the next 10 years.
In consideration of the employees whom been a part of the company for many years, the
implementation and integration of an IT/IS system will not be easy. The employees are used to a
simple process and the company’s processes have nothing wrong with them, besides the fact that
it can become more effective and efficient. With a budget of $250 to $750 thousand, the IT/IS
solutions should support marketing, sales, inventory management and accounting.
Company Shift
Using the informate process, Rock Solid Industrial Parts,
Inc. will shift towards change. The informate process is
best fit for this company because the company doesn’t
have anything set up and the new IT/IS solutions will be
implemented into this environment. This process also
focuses heavily on the people component and provides
more of a challenge to the implementation phase of
integrating the IT/IS solution. The implementation phase
must be detailed and analyzed carefully for the company
to successfully utilize informate to improve its
efficiency.
Structure
Even though Rock Solid Industrial Parts, Inc. is expected to grow to 70+ employees within the
next three years, it is a small business. The company will be departmentalized into different
departments. Some of the departments include
accounting, marketing/sales, operations and human
resources. By departmentalizing, each employee
specializes in their department and will have a
better understanding of the role their department
plays in meeting the company’s overall goals. It
will take shape as a hierarchy organizational
structure following the organizational level
pyramid. The executives will oversee analyzing
the company, making strategic decisions and
creating long-term plans. Management will influence the front-line employees to create value
into the company by utilizing the new IT/IS solution to execute the tasks that need to be done.
The front-line employees will focus on executing and managing the tasks. This hierarchy
structure will allow for a smoother implementation of the new IT/IS solutions because each new
IT/IS solution is specially designed to help that department.
People
The focus of the informate shift towards change is the people. Without the people, the company
cannot run efficiently and be successful. The people act as managers, executives, end-users for
things such as the new IT/IS system and the hardware implemented. They all contribute towards
the success and growth of the company. The current employees at Rock Solid Industrial Parts,
Inc. believe that the present process is working well for the company and doesn’t think that
change is needed. Their knowledge of utilizing technology is basic and only include tasks such
as entering numbers into an excel sheet. The employees are the core to the company’s success.
Although the employees believe that current process is working, there is always room for
improvement to further increase efficiency and success. Onboarding the employees to the change
is expected not to go smoothly because the employees are stubborn in their beliefs and believes
in not breaking a process that works.
Technology
The new communication system chosen to improve Rock Solid Industrial Parts, Inc. is the Office
365 Business Premium package. This package has many features that includes the Office suite,
Skype for Business and Microsoft Teams. The Microsoft Office suite can be utilized by every
department within the company. The key users are the employees who have basic technological
knowledge. Since Microsoft office suite has been widely used for many years by different
companies and has become a standard; there are many resources in different forms to help key
users learn how to navigate, use and integrate the applications into their current process. There
1
are more than 1.2 billion people currently using Microsoft Office around the world . Outlook
also provides both an email and calendar functionality to help schedule meetings and
communicate key decisions with customers or the internal team. Collaboration is an important
part of the company and with SharePoint employees can work on documents together and access
their information anywhere. Skype for Business allows for employees to make voice calls and
video conferencing calls virtually from anywhere. The capacity for this application is large and it
can support up to 250 people for a call. In consideration of the structure of the company, each
department has different responsibilities, goals and tasks to meet. Microsoft Teams focuses on
having a workspace for individual departments to better organize and gain easy access to
important documents and tools. For example, a chat channel may be created for a specific topic
or project. The application also allows built-in access to the other features that Microsoft offers
such as Skype for Business and SharePoint. It makes collaboration across the company easy. All
features in the package may be accessed online anywhere. According to the case study done
about Holwick Constructions after converting to cloud collaboration the company saved about $2
1
“Microsoft By the Numbers .” ttps://news.microsoft.com/bythenumbers/planet-office.
2
million to use rather than use it on IT . The Office 365 Business Premium package runs at
$10,500 per year.
The next application the company will be implementing is Salesforce Lightning Professional.
Salesforce is a cloud based Customer Relationship Management tool that allows companies to
interact with their customer.
A survey was done based on interviews of 1,000+ active Salesforce customers. By using
Salesforce the CRM system, the customers were able to improve their customer’s experience by
66% and reduce their cost overall. Customers also saw revenue growth as a business outcome
after using integrating
Salesforce into their
3
company .
The
application collects and
centralizes
the
company’s
customer
data. It then displays
this data in a way to
make it easy to
understand and access
across all departments within a company. Users can create customizable reports and dashboards
to understand the data they have collected within Salesforce. The reports can also be refreshed to
include new data just inputted into the system. It can track every detail of a deal to help make
decisions or prioritize tasks that need to be done. Salesforce has email integration that will sync
up to the company’s email system to sync up calendar dates, contacts and more to ensure better
integration of Salesforce and the different tools utilized by the company. Salesforce can be
accessed anywhere through their mobile phone application. The cost of this application annual is
$63,000.
Microsoft has many different for Dynamics and
it is used by many different customer around
4
the world . Microsoft Dynamics for Financials
2
Team, Posted By US SMB. “6 reasons team collaboration should be at the top of your 2017
to-do list.” Microsoft US Small and Midsize Business Blog. January 17, 2017. Accessed March 1,
2017.
https://blogs.business.microsoft.com/en-us/2017/01/17/6-reasons-team-collaboration-top-201
7-list/.
3
Columbus, Louis. “The State Of Salesforce, 2014 – 2015.” Forbes. October 12, 2014. Accessed
March 1, 2017.
https://www.forbes.com/sites/louiscolumbus/2014/10/12/the-state-of-salesforce-2014-2015/#
3fb5220c5b08.
4
is a software that will support inventory management and financial management for the
company. The company has 100K SKUs in inventory and needs a software to help manage the
large number because expansion to new repair service areas is expected. The inventory
management feature supports organizing and filtering through the inventory. On the customer
facing side, the software can make recommendations to customers on an item substitution if the
item they want is unavailable because it groups items that are the same or have similar features
together. To avoid inventory shortage, it also accurately forecasts future sales by using Cortana
Intelligence. The three main points for inventory management are inventory, item substitutions
and returns and cancellations. There are several features within the financial management portion
of this software, they focus on the general ledger, account receivables, account payables,
budgeting, account scheduling and bank reconciliation. The company can easily create reports
and generate charts and graphs to display their financial data. The finance department may also
utilize this feature to track budget and calculate profit margins for the company. It is expected to
run at $33,600 annually.
The company is supported by a simple AT&T consumer DSL plus consumer grade switches. For
the applications to work properly and efficiently, the company needs to purchase switches and
access points, which will help upgrade their connectivity to the internet. The access points the
company will purchase is ​Cisco Meraki MR33​. This access points provides secure connection to
both employees and guests and MU-MIMO which increases efficient transmissions to more
5
employees . To upgrade their consumer grade switches, they will purchase Cisco SG200-50P 50
port Gigabit PoE Smart Switch. Cisco has been the world leader in IT system solutions and
they’ve been for more than 15 years working on solutions for network security and making
solutions that fit each type of company. Therefore, Cisco is the best fit to find hardware for Rock
Solid Industrial Parts, Inc.
Process
The procedures at Rock Solid Industrial Parts, Inc. are currently very basic because the
company’s employees are not technology oriented. The new process change will make the
company become more efficient. The company’s structure is departmentalized and have different
tasks in each department. The overall steps of the training plan are the following: set
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expectations, pre-requisition course, hands-on training, resources and follow-up .
The marketing department will oversee sales and focus on marketing the business. This
department will be integrating Salesforce into their current process. The initial training period for
“Microsoft User Numbers.”
http://www.erpsoftwareblog.com/wp-content/uploads/GP2015.png.
5
Meraki, Inc. “MR33.” Meraki. Accessed March 1, 2017.
https://meraki.cisco.com/products/wireless/mr33.
6
“Best Practices for Implementation.” Accessed March 1, 2017.
http://www.salesforce.com/assets/pdf/misc/BP_Implementation.pdf.
this will last two weeks. The first step will be to set the expectations that the marketing
department will have on what they can expect from this application and what the company
expects from them. An example of an expectation would be for the marketing department to have
the most updated customer information on the Salesforce application to ensure data is
represented accurately. Before the next step, the company can require the employees to take the
free online course provided and come to the hands-on training with questions. The hands-on
training the key users will participate in will include real-life scenarios that they would come
across as they work with this new application. This will allow for the users to understand how
Salesforce will fit into their job and how it will help them be more efficient. After the hands-on
training, the company needs to provide the key users with resources. Resources such as cheat
sheets for Salesforce terminology and documentation of step-by-step of the most crucial
processes. This is important to make sure the key users retain the information provided in the
training and have the information readily available for them to access. A lot of the resources can
be found on the Salesforce site. They provide a full user guide, 24/7 toll-free support to users,
videos on their website that show step-by-step processes, documentation on many topics and a
community page to ask other users. The final step in training is to follow up a few weeks after
the main training period. Follow up is crucial because key users may have more questions about
the application having using it for a while. The accounting department will be in charge of
payroll, financial reporting, budgeting, accounts payable and accounts receivable. While the
operations department will oversee inventory management and purchasing. These two
departments will utilize Microsoft dynamics for Financials. Accounting and operations will go
through the same training process as the marketing department but with Microsoft dynamics for
Financials. The software comes with a subscription support provided to assist small businesses.
The subscription support allows the employees to submit support requests online or by phone.
Microsoft support will respond to technical support issues within 24 hours or less and there is no
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limit to getting support from their team about technical issues . To support users more, they have
customer portals in which users can access self-help resources and get help from the community
forum. Every month there is also an online webinar hosted by experts on specific Dynamic 365
topics. This subscription support gives support to users even after the training phase. The
company will integrate Office 365 Business Premium package into their process. Since the
employees are familiar with excel, their training will not focus on this application. The two
important features the training will be focused on are Skype for Business and Microsoft Teams.
Skype for business will be primarily used to have conference calls and making calls to other
people. Microsoft Teams will focus on helping each department create their own workspace to
make collaboration easier and centralizing a place for updates and links to documentations.
Microsoft has the same support system as Microsoft Dynamics for Financials as they do for
Office 365 for Business. The employees are able to access documentation, videos, technical
support and a community to answer any questions they may have.
Cost
7
“Paid Support | Microsoft Dynamics 365.” Microsoft Dynamics. Accessed March 1, 2017.
https://www.microsoft.com/en-us/dynamics365/support.
Products
Year 1
Year 2
Year 3
Total Project
Cost
Office 365
Business
Premium
$5,850
$8,850
$11,100
$11,100
Microsoft
Dynamics for
Financials
$5,280
$5,760
$6,240
$6,240
Salesforce
$15,300
$31,500
$45,000
$45,000
Lenova
ThinkPad
T460s
$42,900
$22,000
$16,500
$81,400
Hardware
$3,096
$624
$624
$4,344
Overall Total
$148,084
The table provided includes the price annually for each product and the overall total of the
project. Within the first year, the company will purchase Lenova T460s at $1,100 for each
employee. With a total of 39 employees, the cost to purchase all of them laptops come out to
$42,900. For the second year, 20 new employees will be hired onto the company and the cost of
buying new laptops for them will be $22,000. 15 new employees will join at the start of the third
year and the cost for laptops is $16,500. The overall total for buying Lenova T460s for the entire
company is $81,400. The access point the company will purchase is four Cisco Meraki MR33at
$624 each for a three-year bundle. For the first year, Rock Solid Industrials Part Inc, will
purchase Cisco SG200-50P 50 port Gigabit PoE Smart Switch costing at $600. Hardware will
cost the company $4,344. Office 365 Business Premium will be needed for everyone in the
company. The cost per user annually is $150. In the first year, there would need to be licenses
purchased for 39 employees. The cost for this will be $5,850. The second year the company will
need to add 20 more users onto the plan costing them $3,000 more to add onto yearly cost. In the
third year, they would add 15 more users making the yearly cost for this software $6,240. For
Microsoft Dynamics for Financials, the company needs to buy by user. For the first year, the
company would purchase the software for the people in the operations and finance departments.
Each year after, the company will add one more person into their Finance department and that
would cost $480 each per year. The last software the company will purchased is Salesforce. The
only employees that will need a user license for this software are a part of the marketing and
sales departments. The first year only 17 employees will need access to Salesforce which amount
to $15,300. The company will then add 18 more employees to Salesforce and 15 more for the
second and third year. The total cost of Salesforce over three years will be $45,000.
Conclusion
Today, there are many IT/IS solutions to help support companies reach their goals in an efficient
and effective manner. All IT/IS solution companies want to make sure their solution is best fit
for each company’s processes and that the solution can integrate into the company smoothly.
Trying to implement solutions into a company where employees are resistance to change is
difficult but the implementation is possible. As long as the employee feels involved as the
solutions are implemented and they feel their value in the company. As Rock Solid Industrial
Parts, Inc. continues to grow, it is crucial for the company to build a solid foundation to shape
their future. The foundation includes implementing the right IT/IS solutions to the company and
utilizing these solutions accurately to improve effectiveness and efficiency in the company.

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