The Future of Project Management - Assignment Example

of affiliation Summary of the proposed projects of the project Business strategy support Financial benefits Recreation and Wellness Intranet Employees to register for the company-Sponsored recreational programs, which includes bowling, walking, jogging among other sports Employees to register for company-sponsored classes and programs for management of weight stress and other health related complications. Track employees on the level of involvement in these activities Offer incentives for the employees to join these programs. The company will pay save the 20% it pays more than the industry average for employee health care premiums. Will promote a saving of AED 120/employee/ year for full time employees for four years Health Coverage Costs Business Model An application to track employee health care expenses and company health care costs Help in importing data from the current systems that track employee expenses submitted by the insurance providers The application will save the companyAED80/employee/year for full time employees This amounts to saving of AED 400,000 for four for years Cross-selling System The business support Strategy in this case involves Incorporating the discount system into the current sales management system. This will enable clients who make multiple products/services receive discounts according to their cost of purchase. The system will cost AED 3.2 in developing and maintaining it per year and a profit of AED4million annually. This implies that, as the system develops sales increases and by the end of three years, the profit is likely to shoot up. Web-Enhanced Communication System To improve the development and delivery of products and services The clients will be able to use electronic support attributes to make orders, buy and sell products The cost of developing this system is estimated at 12 million and 20% of developing cost for annual maintenance The developing cost and the maintenance expenditure for three years amounts to 19.2 million The profit for the three years is estimated to be 24 million 1. Recreation and Wellness Intranet Project The application allows the employees to register for the company-Sponsored recreational programs, which includes bowling, walking, jogging among others. In addition, this application allows the employees to register for company-sponsored classes and programs for management of weight stress and other health related complications. The service cost benefit of this application is the ability to track employees on the level of involvement in these activities. To ensure effective implementation of this application the company’s top management is advised to offer incentives for the employees to join these programs (Patel, 2008). The financial cost benefit of this application to the company can be calculated as follows Assume that the present cost of the industry average health care premium is X, this means that MYH, Inc pays 20% more of X , which is equivalent to 1.2X. However, upon implementation of the application the company is able to save AED 120/employee/ year for full time employees for four years. This follows that the total amount saved on the 20,000 full time employees is as the following calculation 120 *20,000 = AED 2, 400,000 per year = AED 4* 2,400,000 = AED 7,200,000 for four years 2. Health Coverage Costs Business Model The ability of this application to track employee health care expenses and company health care costs and facilitating the data importation from the current systems that track employee expenses submitted by the insurance providers if fundamental as it facilitates clarity in the employees expenditure relative to the company ‘s care cost on the employees. This helps in establishing the exact loss or profit incurred at the end of the fiscal year. This is relative to the health care expenditure. The calculations is as illustrated below AED80/employee/year for full time employees 80*20,000 = 1,600,000 * 4 = 6,400,000 for four years Having noted that the application will facilitate saving 400,000 for four years than we can estimate the cost of developing and maintaining the application as follows Cost of developing and maintaining the application= 6,400,000-400,000 = 6,000,000 Approximate developing cost = 2,000,000 Approximate cost of annual maintenance = 1,000,000 Hence, approximate cost of annual maintenance for four years = 1,000,000*4 =4,000,000 3. Cross Selling System The concept of cross-selling is based on the premise that when the organizations offers additional goods and services to the organization’s customers get more value to suppliers and other organizational stakeholders. When cross selling is doing well, manufacturing companies increase a greater share of their customer’s wallets, which normally results in more steady business development and stronger ties with customers, sustained competitive advantage and fewer customers churns (Project Management Institute, 2009). The ability of the Cross Selling System to incorporate the discount subsystem, which allows offering of discounts to the clients who make multiple purchases, saves the company a great deal of cost benefits. The cost benefit of the discount system is calculated as follows The system will cost AED 3.2 million in developing and maintaining it per year This amounts to AED 12.8 million for four years The profit is approximated at AED 4million annually This amounts to AED 12 million for four years. In essence, as the system develops sales increases and by the end of three years, the profit is likely to shoot up 4. Web-Enhanced Communications System A web enhanced communication management systems is designed to supervise and store project information, which is used in web-based applications by the various groups within the organization such as sales, programs and projects departments. The web enhanced communication system is intended to make project applications to control the access of information through an automated distribution of information for the KYH (Maylor, 2006). The objective of this collaboration is to get things done cheaper, faster and better through application of common knowledge that brings together the selection and attainment of resources in a project. The objective of this collaboration is to get processes done cheaper, faster and better through application of common knowledge that brings together the selection and attainment of resources in a project. The web enhanced communication system will ensure valid collaboration among the various teams in the organization to improve productivity, result oriented performance, speedy execution of tasks and optimization of organizational decisions. The aim of the web based communication systems is to increase the productivity, performance and efficiency of the organization (Maylor, 2006). This is because such projects accessed by any web browser without any desktop updates or installations. The applications can as well be used over long distances while staying in geographically different places through collaboration with the various teams that are working for the organization. The ability of this system to improve the development and delivery of products and services makes is a worthy project for the company. In addition, the clients will be able to use electronic support attributes to make orders, buy and sell products. The financial cost benefit of this system to the company is illustrated in the following calculation. The cost of developing this system is estimated at 12 million and 20% of developing cost for annual maintenance Maintenance = 20/100 * 12,000,000 = 2.4 million The developing cost and the maintenance expenditure for three years is = (2.4*3 + 12) million = 19.2 million For the case of profit we have, 8 million per a year = 8*3 =24 million for three years The system saves around 5 million in three years time. This implies that, the system has potential of saving more money in subsequent years. CROSS-SELLING SYSTEM CASE Introduction The concept of cross-selling is based on the premise that when the organizations offers additional goods and services to the organization’s customers get more value to suppliers and other organizational stakeholders. When cross selling is doing well, manufacturing companies increase a greater share of their customer’s wallets, which normally results in more steady business development and stronger ties with customers, sustained competitive advantage and fewer customers churns (Maylor, 2006). These advantages are the reason that some companies particularly the business-to-business markets are likely to fail to leverage on their prevailing cross-selling potential. Therefore, the cross selling system is a new business strategy that is specifically attributed for the increased cross selling of goods and services as one way for MYH to attain its objectives as one of its chief reasons for going ahead with the project. Cross selling encourages numerous sales and even attracts many customers into the business more than any time before. Project overview To make the project work, a project specification will outline project activities that will be done from the first step to the last. The primary goal of the project specification is to conceptualize a complete project that will be used by the organization on a daily basis. It will also help the organization to have all the requirements necessary for the project. These requirements will be derived from the organization structure (Maylor, 2006). The project specification breakdown shows the various project activities. The breakdown makes it simple through breaking the component parts. This section explicitly explains the processes to be done at every level with detailed functions descriptions. Project specification Design and analysis The web enhanced communication systems are designed to develop teamwork between project teams, reduce potential risks and facilitation to ensure that the project is acquired on time. As a repository, they become accustomed for all the graphs, documents and communications involving specific projects and are used co-workers in projects to modify access, edit matters and print out according to the requirements set up by the project managers. Programmers usually mystify the terms design and analysis. Deciding where the design ends and analysis begins is occasionally quite complex (Project Management Institute, 2004). As design proceeds, analysis consideration keep coming up, making it simple to get abstracted into following up in the profundity in such issues. Handling design matters at apparent level helps reduce the technological risks; however, tampering may be scheduled to hedge against any risk. Like a number of issue in development of the system, balancing is essential. Based on the needs of the detailed examination of a new system, the system should be designed to meet organization needs, as this is the most significant stage in the system development. Architect diagram Courtesy of Patel, V. N. (2008). Project management. Jaipur, India: Oxford Book Co. Business Objective It is imperative to keep cross selling in the organization to help in remembering that the maintenance costs for the organizations over AED800, 000 every year while the net profit is about AED2, 000, 000 every year according to current performance is not healthy for the company. With the implementation of the cross selling system, the performance of the organization is expected to rise to AED 4,000,000 for the first three years. Thereafter, maintenance costs will eat up to AED 3.2 million each year. It is therefore significant to detail the probable new customers who are not integrated in the calculations that lead to high expectations (Project Management Institute, 2004). The initial assessment of the cross selling system is the value advantage that it gives organizational consumers which will improve the interactions and consequently the sales of MYH. The financial side of this seems stable enough to warrant a go-ahead on this project. Current Situation and Problem/Opportunity Statement Human resource and cultural aspects coordinate issues usually play decisive roles and generally relate to successive factors specifically. However, there are a few unaddressed issued and concerns about the business model in application. In implementing the cross-selling systems project should realize the potential of the organization (Lock, 2007). The process of successfully designing and implementing the cross selling strategy may be difficult to implement. There are numerous risks in implementing the project and this requires the project implementers to reduce them. Critical Assumption and Constraints The project implementers should fill the gaps in the cross selling systems through research and investigations that will address the grounded theory, semantics and focused group interviews with customers and organization management to come up with the best way and keep working on a project that is effective in the business to business markets. To make the project effective, a number of studies that use cumulative and mixed methods so that each study. To understand the needs of the customers, face-to-face interviews need to be conducted as well as questionnaires in order to address specific issues that are sought by the organization (Lock, 2007). These will help obtain the requirements that are requisite for attaining cross-selling project goals. Finally, to tailor the organization generally towards the cross selling strategy, the various departmental heads and sale persons need to provide information that can be used to enhance the effectiveness of the project. Analysis of Option and Recommendation In order for the cross-selling strategy to work for the organization, the management and all stakeholders need to capture its essence and the context it has in the business-to-business marketing. Main challenges to the model as well need to be appreciated in both MYH and its partnering enterprises. To address some challenges, the sales persons will be given specific roles and will give findings on their research in case of problems with the view of coming up with operational antecedents that will lead to the success of cross selling (Lock, 2007). Hence, prioritization and weighting of the challenges facing cross selling can be hedged upon in order to reduce the risks of realizing organizational goals. to make the cross selling project effective, it is imperative to come up with a multi level framework that has a contingency approach to realizing its objectives. Preliminary Project Requirements CRM system Discount software Human resource Budget Estimate and Financial Analysis Piece of work Cost (AED) Designing a compliant customer relationship management system 100,000 Integrating the CRM into the Cost selling system 50,000 Designing a discount subsystem 50,000 Integrating the Discount subsystem into the Cost selling system 100,000 Integrating the cross selling system to the call centers 150,000 Human resource expertise 350,000 Total cost for developing 800,000 Time schedule Piece of work Duration (in months) Designing a compliant customer relationship management system 2 Integrating the CRM into the Cost selling system 2 Designing a discount subsystem 1 Integrating the Discount subsystem into the Cost selling system 1/2 Integrating the cross selling system to the call centers 1/2 Total duration for developing the system 6 months Potential Risks System overloading System breakdown which may lead to loss of data Slow system Improper integration, which may lead to capturing of wrong data and other discount information In the event that a risk has occurred the following procedure is applied in tracing and reverting the risk. Courtesy of Lock, D. (2007). Project management. Aldershot, England: Gower. WEB-ENHANCED COMMUNICATIONS SYSTEM CHARTER Project Title: Web-Enhanced Communications System Project Start Date: 1st May 2014 Projected Finish Date: 1st November 2014 Budget Information: AED800, 000 Project Manager: Name, Phone, E-mail Project Objectives: To improve the development and delivery of products and services The clients will be able to use electronic support attributes to make orders, buy and sell products Approach: Organizational or company oriented Role Name Organization/ Position Contact Information Reference Lock, D. (2007). Project management. Aldershot, England: Gower. Maylor, H. (2006). Project management. London: Pitman. Patel, V. N. (2008). Project management. Jaipur, India: Oxford Book Co. Project Management Institute. (2004). A guide to the project management body of knowledge (PMBOK guide). Newtown Square, Pa: Project Management Institute. Project Management Institute. (2009). The future of project management: The first PMI forecast and assessment of the future of the project management profession and the future of the Project Management Institute. Newtown Square, Pa: Project Management Insitute. Read More