Replacement of Outdated Hardware and Software Systems - Advantages of Proposed Solutions - Research Proposal Example

PROPOSAL: Replacement of Outdated Hardware and Software Systems To: SENIOR LEADERSHIP Purpose Statement: Replacement of Outdated Hardware and Software Systems Introduction Business is moving at a very fast pace today, requiring the electronic systems necessary to support success at the internal and external level. Supply chain needs are becoming more sophisticated, requiring high volumes of vendors to support the business’ product needs. “It no longer makes sense to trust the complexity of today’s supply chains with outdated software applications” (Verma, 2008, p.2). Further, in order to coordinate invoices for billing and for payment, updated hardware and software systems are necessary to achieve maximum productivity and competitive advantage. The outdated systems currently being used in the business environment are causing business disruption at multiple levels and the company’s profitability is being affected by the old equipment. Problem The old computer hardware being used in the business is not reliable and has passed its intended life cycle by many years. One recent state government report highlighted that the industry norm for replacement of PC hardware is 3-4 years (michigan.gov, 2005). This company is still using equipment from the late 1990s, making it nearly a decade behind its industry-expected replacement period. In terms of business reputation with other business-to-business partners, this company is becoming well-known for its outdated and unreliable systems and many companies are concerned about doing business with us because of it. Additionally, worker motivation is being reduced because they are frustrated with the ongoing system crashes and slow server activity which is part of their regular routine when using our current hardware and software systems. These frustrations are impacting the quality of their customer service efforts when working with clients and our consumer sales are falling because of our growing reputation for poor service delivery at the interpersonal level. The largest problem with these outdated systems is the poor reputation that the business is earning on the business-to-business and consumer markets. At a time when the economy is somewhat unstable and competitors are devoting many resources into heavy advertising, the business cannot afford to have its reputation damaged simply because leadership perceives it will not provide a return on the investment. The company can face financial ruin if its reputation for having outdated technologies is allowed to expand into other territories. Background The current outdated systems do not allow for stable access to the Internet. “Various experts have identified barriers to effective Internet technology use, including outdated hardware and software systems” (proceedings.informingscience.org, 2007, p.728). The current systems not only provide barriers to using the Internet successfully to enhance business image and gain more visibility, the limited access to the online environment they currently provide is not even reliable for short-term use. Many of the company’s suppliers are asking to be inter-linked with their suppliers at the software level or intranet level, and this company consistently has to tell potential supply partners that we cannot support such an effort. “A company depends on a supply chain. Its proper function is crucial to the bottom line” (Dube, 2005, p.46). In terms of profitability, these current outdated hardware and software systems are making the company lose many different business opportunities with more progressive suppliers and businesses each and every month. It is becoming nearly an industry standard, best practice to have some sort of inter-linked systems to provide excellence in business-to-business activities. This company falls way below these standards in every detail. The negative outcomes on worker efficiency caused by frequent crashes and unreliable server function have caused high costs in areas of turnover, due to employees leaving to find employment elsewhere. This is the level to which they have become frustrated with the ongoing hardware and software unreliability. These costs are further burdened by having to create new training seminars for new hires to replace frustrated workers and limits the effectiveness of managers who must devote their time to performing and developing this ongoing training. At a time when sales have already fallen and the business’ reputation on both markets is slipping quickly, high costs in areas of hiring, retention and recruitment must be reduced. Simply as a retention tool and a cost savings activity, these systems must be replaced before the business suffers tremendous financial losses. Proposed Solution The costs of implementing new software systems is really not that much of a strain on the operations budget and can be coordinated with high-quality, reputable software vendors willing to work with budgets and coordination plans. The solution is to make contact with IBM, Microsoft and many of their competitors to discuss the business’ hardware and software needs and receive quotations from these businesses to identify the expected costs of the selected systems. These trained professionals will work directly with the company leadership, develop process maps of each area of the company, and help to install software which is compatible with consumer and business-to-business needs. The key is to develop, first, a clear window of how the business operates at each division and how they are inter-connected to provide to software experts for developing a system which meets the business’ needs and cost related to budget needs. Part of this solution is disposing of the old hardware in a way that does not provide risk to the business. Disposing of old equipment can be dangerous if hackers get hold of the data. One expert in recycling of computer hardware suggests to remove the hard drive and drill a hole through it, while first removing identification tags from the outside of the hardware devices (Kashgegian, 2009). These efforts should also be publicized to the employee population and let them see that these old systems are being tagged and prepped for removal. The outcome on improved motivation will begin to correct some of the turnover costs facing the business today. Disadvantages of Proposed Solutions Purpose Statement: Consultation with various reputable hardware and software manufacturers/experts will not be an easy task at the internal and external level: There are risks of time investment. Coordinating a quotation first requires consultation and assessment of the business and its needs. The development and implementation will require coordinated meetings and testing scenarios with many leaders in different divisions. The need for replacement of these systems is urgent, therefore the speed of development must strongly be considered. Employees must be trained. These new systems will be very unfamiliar with the current employees and will likely require some type of training to make sure they can support and work with these systems. This might be costly in the short-term and require high management involvement and oversight, even after launch to make sure the systems are being used properly. Disposal costs. There will be costs associated with making sure there is proper disposal of the old hardware devices as they cannot simply be tossed into the garbage bin. Consultation must occur with experts in this area to ensure that there is no liability in relation to the Environmental Protection Agency or other regulatory bodies. This will be just a one-time cost for this solution. Advantages of Proposed Solutions Purpose Statement: Replacing the current hardware and software systems has many opportunities for the business in areas of reputation repair: At the business and consumer levels, “The fight for the planet is on” (Redshield, 2009, p.2). The company’s recycling efforts can be publicized on the consumer market using inexpensive promotion in print and online to show the corporate social responsibility of the company. At a time when reputation is poor, this is a good image-enhancing opportunity. The current employees, though frustrated with new systems, are some of the best performers this company has seen in years. At the retention level, the new systems will definitely be an incentive to be more interactive with the company and provide more innovative solutions. Having Internet access which is reliable will help them in areas of billing, purchasing, payroll, and many other business roles. The impact on efficiency in the organizational culture will be dramatic by changing motivation at its foundation. The current hardware being used by the business no longer has an online or telephone support team to help with system crashes. The new software and hardware, in the event of crashes or other problems, can be fixed at little to no cost to the business for a period of years. Long-term this is major cost savings over that of the high cost of maintenance these old systems seem to regularly inflict on the operational budget. Recommendations It is strongly recommended that consultation with Microsoft, IBM and other competing experts begin immediately. The senior leadership team should meet by next Thursday, at a time where all managers can attend, to come up with a process map and business summary for these experts. This proactive meeting will identify key areas needing hardware upgrades and help to shorten the timeframe between assessment, purchase and eventual launch. Short-term, this effort will likely cost between $4,000 and $10,000 for all labor and materials. As part of long-term strategy, this solution for replacing hardware should include a new investment strategy to offset these costs by gaining return on investment in other areas. A hedging practice should be established which will require consultation with a financial and investment expert such as Merrill Lynch. Sources Dube, Dan. “Content Supply Chain Top 5 Traps”, Document Processing Technology, Madison. Vol. 13, Iss. 3, p.46. Kashgegian, Glen A. “Help! What do I do with my old computer equipment?”, Reverse Logistics Magazine, Edition 16, 2009. Viewed 12 Nov 2009 at http://www.rlmagazine.com/edition16p30.php. Michigan.gov. “Information Technology Equipment Life Cycle”, 2005. Viewed 13 Nov 2009 at http://michigan.gov/documents/life_cycle_boilerplate_report_86875_7.pdf. Proceedings.informingscience.org. “The Importance of Partnerships: The relationship between small businesses, ICT and local communities”, Volume 4, 2007. Viewed 12 Nov 2009 at http://proceedings.informingscience.org/InSITE2007/IISITv4p725-737Onoj269.pdf Redshield, Darwin. “Be Green: Recycle Your Old Computer Hardware”, 2009. Viewed 13 Nov 2009 at http://technology.ezineseeker.com/be-green-recycle-your-old-computer-hardware-142d367061.html Verma, Vic. “Savi Group, a Lockheed Martin Co.”, Journal of Commerce, New York, 2008. Read More