Future of Fashion Retail Project - Report Example

Project Charter Name University Table of Contents 1.Purpose of the Project Charter 3 2.The Background to the Project 3 3.The Project’s Goals and Objectives 4 4.Measureable Organization Value (MOV) of the project 4 5. Project stakeholders (with position, name and contact details) 5 6. Definition of the project’s scope (product‐oriented scope only) 6 7. Three level Work Breakdown Structure (WBS) 7 8. Project success criteria 9 9. Summary 9 10. Recommendations 9 References 10 1. Purpose of the Project Charter The objective of this project charter is to provide detailed information on how to pilot the “Future of Fashion Retail” project concept at the Sydney flagship store for Elizabeth’s fashion. Consequently, the document will also roll out the project to its remaining 12 stores. According to Pan et al. (2007), the Charter provides the foundation for rolling out the project and provides insight about how resources will be utilized, particularly on cost, time, and scope precincts. 2. The Background to the Project Since Elizabeth’s Fashion was commenced in 1999, it has grown tremendously from just a single store in Sydney to 20 stores across Australia by 2014. For this reason, the business has expanded over the years from its flagship retail store which was located in Sydney to having its corporate headquarters located in Byron Bay, New South Wales. However, the operation of the business has not been a fairy tale. For example, in 2015, five of Elizabeth’s Fashion stores were closed while two were reportedly struggling to meet their sales and profit targets. To make matters worse, the two struggling stores were closed, and the number of stores operating under the name plunged from twenty in 2014 to thirteen in 2016. The culmination of this downfall saw the proposition of the “Future of Fashion Retail” concept following a series of strategic planning among the store managers and corporate staff. However, the project will first be a pilot project for the Sydney store. The success of the pilot project will consequently lead to the rolling out of the project to the entire 12 stores that are remaining. The pilot project is expected to be operational by the end of March 2017. Upon its success, via the project, Elizabeth’s Fashion will refurbish the other 12 stores by November 2018, which will ensure that the business secures a 50% increase in the retail sales by January 2019. In addition, the company aims to add seven more stores by mid-2021. 3. The Project’s Goals and Objectives Goals of a Project outline the project’s end game (Schwalbe 2015). The goals of the “Future of Fashion Retail” project are to improve the in-store experience for the customers via the inclusion of technology, as well as physical product offerings. Through the project, the business aims at obtaining cost savings by promoting more efficiency in the ordering system of the in-stores and the payment processes involved. In essence, the project will entail the combination of “Elizabeth’s Fashion Online” state of the art technologies with to complement the in-store shopping experiences of the customer. Cost savings will not only be achieved only through promoting the payment efficiency, but also through staff productivity improvements by making distribution, warehouse, and inventory processes better. In addition, through the project, the business will also aim at becoming the benchmark of fashion retail in Australian and global markets. As such, Elizabeth’s Fashion will realize local and global success via the project, which will, in turn, enable the firm to enjoy a competitive advantage. In essence, by improving the sales targets and revenues will eliminate any chance of failure in the remaining twelve stores, while also providing a basis for domestic and international expansion. 4. Measureable Organization Value (MOV) of the project According to Jack Marchewka, the Measurable Organization Value (abbreviated MOV), is the project’s overall goal and a measure of success, which is correlated with the return on investment (ROI) (Kathpalia and Raman, 2014). As such, considering this definition, Elizabeth Fashion MOV is directly correlated with an increase in profitability through an overall increase in sales revenue. For instance, by improving efficiency, the business is expected to handle a 50% increase of customers by doubling the transaction rate by February 2019. This translates to increases in resource savings. It is a strategic move towards increasing customer satisfaction and loyalty. For instance, after it has been implemented in the 12 stores, customers will have a choice of taking their bought products with them or opt to have them delivered free to their doorstep within 24 hours. In addition, after the 12 stores have been refurbished, the in-store replenishment for the products will occur twice in a day, with an approximate 5-6 hour cycle. Upon the success of the pilot project, Elizabeth’s Fashion will refurbish the other 12 stores by November 2018, which will ensure that the business secures a 50% increase in the retail sales by January 2019. In addition, the company aims to add seven more stores by mid-2021. As such, this translates to an increase in revenues, which will lead to an expansion domestically. Via the project, each store will be equipped with networked smart screens that will inevitably allow the clients to view product attributes and select the product that best suits their interests. Customers will be able to process their transactions, but whenever the price threshold exceeds $A250, the store manager or assistant will be involved to promote their experience. 5. Project stakeholders (with position, name and contact details) The following are the main project stakeholders: Name Position Contact Details Ms. Elaine Joyce Chief Technology Officer Elizabeth Fashion, Project Sponsor (Hardware Specialits) +61789456125 Me Project Manager +61789634521 Grace Hughes Chief Operating Officer, Elizabeth Fashion +61789652147 Elizabeth Allan Elizabeth Fashion’s CEO +61479324751 Mark Henry Logistics/Logistics Officer +61789632458 Oliver Mark Legal Officer +61012579301 Christina Faith Customer Service Representative +61785124793 Lucy Ale Chief Technologist/IT Manager (Security Specialist) +61428795215 Virginia Beth Sales and Marketing Officer +61484845421 Victor Nathaniel Business Analyst +61798895545 John Snow Business Analyst +61255579754 Dennis Fletcher Store Manager +61454754215 6. Definition of the project’s scope (product‐oriented scope only) The main objective of the project is to increase the in-store customer experiences of the customers, thereby increasing their loyalty, retaining them, and attracting more. Also, the scope entails completing the project within the budgetary allocation of $A14 million. In addition, the pilot project should be completed by March 2017. After its success, the 12 remaining stores should be refurbished by November 2018. In addition, customer loyalty program need to be developed, as well as a new software with defined software, hardware, network infrastructure, data and security definitions. The specific in-scope items include: Coming up with a working in-store software package within the budgetary provisions of $A4 million. Ensuring that the pilot project, specifically in the Sydney flagship store is working within the time limits set. Putting in place software that will promote in-store performance and customer loyalty. However, there are various constraints that can be an impediment to the project. These include: Since the project requires the use of client information, the software that will be used for in-house operations should have the necessary security provisions, such as security protocols to ensure that client information is nor vulnerable to computer hackers, among other parties with an ill intention. Also, confidentiality of customer information is paramount. Ease of use of the software should not be compromised. Customers find it easier to use something that is comprehensible with no complications. The time should not be exceeded so that the project’s goals are met within the laid down parameters. The budget should not be exceeded, rather, all project costs must be within the budget. 7. Three level Work Breakdown Structure (WBS) Level One: Ensuring that the in-store experience of customers is optimized, as well as facilitating the profitable Future of Fashion Retail for Elizabeth fashion. Level Two: In-scope items: Coming up with a working in-store software package within the budgetary provisions of $A4 million. Ensuring that the pilot project, specifically in the Sydney flagship store is working within the time limits set. Putting in place software that will promote in-store performance and customer loyalty. Level three: a. Coming up with a working in-store software package within the budgetary provisions of $A4 million. 1. Developing a comprehensive project budget. 2. Putting in place contingency plans. 3. Assigning contract pay along with Elizabeth’s staff costs. Key deliverable: Budget. b. Ensuring that the pilot project, specifically in the Sydney flagship store is working within the time limits set. 1. Create a project schedule. 2. Crashing the timeframe to ensure all tasks and milestones are completed within the allocated time frame. 3. Developing a critical path for the project. Key deliverable: A Gantt chart c. Key activities for Putting in place software that will promote in-store performance and customer loyalty. 1. System testing to ensure that it is fully operational. 2. System development to ensure that it serves in-store client requirements and expectations. 3. Building a comprehensive interface for easy use. Key deliverable: Putting in place a system development life-cycle. 8. Project success criteria According to Mir and Pinnington (2014), the success criteria facilitate project managers to gauge how effective and efficient the project was by ensuring that ensuring that project deliverables meet customer expectations. It is measured immediately after the implementation of the project. In this case, the in-store experience for clients have to be improved, which is characterized by an increase of in-store purchases. The revenues have to increase, and so does the profitability. Also, the business has to open more stores owing to increase in-store visits. Additionally, no stores should struggle after the completion of the project. It should promote the business efficiency and effectiveness by ensuring cost savings. 9. Summary Future of Fashion Retail project for Elizabeth Fashion is designed to ensure that there is increased in-store sales and revenues by enhancing the clients’ experience. In essence, this will ensure the business saves on cost. Also, it will lead to an expansion of the project via domestic expansion, thereby acting as a benchmark in the fashion industry. However, the project needs to adhere to budgetary allocations, as well as the timeframe set. All goals must also be met. 10. Recommendations It is recommended that instead of bringing in a purely new software, the company should enhance the capabilities of the current software. As Fuggetta and Di Nitto (2014) purport, this approach is cheaper compared to bringing a totally different software. As the writers point out, this not only reduces costs, but also it ensures that staff know how to operate it. Also, insight from the customers and corporate staff on how to enhance the software should be incorporated. As Galvis Carreno and Winbladh (2013) argue, respecting their views is important for the project’s success. References Fuggetta, A. and Di Nitto, E., 2014, Software process. In Proceedings of the on Future of Software Engineering, ACM, pp. 1-12 Galvis Carreno, L.V. and Winbladh, K., 2013, May. Analysis of user comments: an approach for software requirements evolution. In Proceedings of the 2013 International Conference on Software Engineering, IEEE, pp. 582-591. Pan, Z., Park, H., Baik, J. and Choi, H., 2007, December. A Six Sigma framework for software process improvements and its implementation. InSoftware Engineering Conference, 2007. APSEC 2007. 14th Asia-Pacific(pp. 446-453). IEEE. Mir, F.A. and Pinnington, A.H., 2014, Exploring the value of project management: linking project management performance and project success, International Journal of Project Management, 32(2), pp.202-217. Kathpalia, L. and Raman, R., 2014, The Road Ahead for the Indian IT and ITES: Industry Considering its Service Offerings, Domestic Market and Technology Trends, Journal of Theoretical and Applied Information Technology, 60(2). Schwalbe, K., 2015. Information technology project management. Massachusetts: Cengage Learning. Read More