Discussion of the 12 Projects and Initiatives - Case Study Example

MCDM B Table of Contents Introduction to the Case Study 3 Discussion of the 12 Projects and Initiatives 3 Unify Methodology and the Technical Standards 3 2. Consolidated Data Center and Network 4 3. Outsource Nonstrategic IT Services 4 4. Standardize Server Hardware and Platforms 4 5. Implement Enterprise Resource Planning 4 6. Create Employee Intranet Portal 4 7. Manage the Supply Chain 5 8. Streamline Design Systems 5 9. Improve Collaboration Systems 5 10. Begin CRM/ Create Data Warehouse 5 11. Implement E-Procurement System 5 12. Customer Self-Service Portal 6 Briefly Discuss the IT Projects That Would Be Appropriate For MDCM 6 Creation of Portfolio Application Model Matrix and Evaluation of Each of the Projects 7 The Approximate Sequence for Executing the Initiatives 8 Bibliography 12 Introduction to the Case Study MDCM, Inc has been one of the world’s largest contract manufacturers in the field of medical devices. Off late, the company has been facing huge losses, the reason being poorly managed IT systems. Therefore, the company has decided to change the overall IT systems so that this would support the MDCM’s strategic business goals. The group decided to present before the board the 12 major potential projects and initiatives. The main challenge for the company was to accomplish all the initiatives in a short span of time and to ensure that the IT initiatives were aligned with the corporate strategy. Discussion of the 12 Projects and Initiatives The main aims of the 12 projects were to rejuvenate the entire system of MDCM IT in next three years. The projects aimed to bring changes into the infrastructure, front- office systems as well as in the back office system. The various projects were as follows: 1. Unify Methodology and the Technical Standards In order to reduce the myriad different standards and the IT methodologies in and across the company, this project was designed. As this initiative demanded training for the contractors, the consultants and the internal IT professionals in the new methodology, it can be said that the time required for this project would be around 3 months. 2. Consolidated Data Center and Network In this project the initiative was taken to consolidate the datacenter to three locations and to shift the company to network to VPN that would be managed by the telecommunication providers. The savings from this project would range to $1.1 millions. The time taken by this project would approximately be six months. 3. Outsource Nonstrategic IT Services At this project the initiative taken was to outsource the nonstrategic IT services like the desk support and the hardware maintenance that would help to realize the saving within 12 months. 4. Standardize Server Hardware and Platforms At this stage an effort was made to standardize the server hardware and platforms. It was realized that by doing so there would be reduction of the maintenance and the support cost. This would normally require maximum of 3 months. 5. Implement Enterprise Resource Planning This project aimed at the implementation of the enterprise resources planning which would take more than 12 months. The cost was estimated to be around $30 millions 6. Create Employee Intranet Portal At this project an attempt was made to make the functions of HR administration automated and available for the “self-service” to the employees on the intranet website. It would require around 3 months. 7. Manage the Supply Chain This project aimed to implement the supply chain management system for the organizations which would require around 12 months and $12.3 billions. 8. Streamline Design Systems At this project an attempt was made to standardize upon the Cadam and Catia software across the enterprise. It would require three months in order to implement this project. 9. Improve Collaboration Systems At this project, the IT department decided to improve the collaboration systems like E-mail, Discussion boards, Knowledge management applications though they were highly disparate systems and were underutilized. However, the main challenge for the IT department was to consolidate the system as it would require commitment from the IT and would require huge amount of internal systems. It would require three to four months for this system to come into existence. 10. Begin CRM/ Create Data Warehouse This project aimed to consolidate the data of the customers into data warehouse. This would require 12 months and would cost more than $15 millions. 11. Implement E-Procurement System At this project an attempt was made to manage the internal purchases. Therefore, E-Procurement system was implemented. This would require six months to implement. 12. Customer Self-Service Portal A customer portal was decided to be made on the internet in order to reduce the administrative expenses that are associated with the customer services. This would require around six months to be implemented. Briefly Discuss the IT Projects That Would Be Appropriate For MDCM The projects have been designed keeping in mind the needs of such kind of systems and the related benefits attached with each kind of projects. However, all the projects do not seem to be beneficial and feasible for the company at this moment of time when the company requires some immediate solution to the problem that is being faced by the company. In this regard, unified methodologies and technical standards would be very beneficial for the company. It is evident from the case study that company had myriad standards and the IT methodologies which would not accrue any benefit rather increase the overall cost of the operation. Although it is a costly project, the benefits that can be gained from these projects are countless. The implementation of other projects like the E-procurement system, creation of the data warehouse, management of the supply chain, standardized server hardware & platforms and consolidate data center & network can be recommended for the company. All these projects can help the company to manage its poor IT system in an effective and efficient manner and achieve the goals of the organization. Creation of Portfolio Application Model Matrix and Evaluation of Each of the Projects Implement Enterprise Resource Planning Improve Collaboration Systems Outsource Non-strategic IT Services Manage the Supply Chain Consolidate Data Center and Network Unify Methodology and the Technical Standards Implement E-Procurement System Standardize Server Hardware and Platforms Begin CRM/ Create Data Warehouse Create Employee Intranet Portal Streamline Design Systems Customer Self-Service Portal Fig: Portfolio Application Model Matrix In the above Portfolio Application Model Matrix, the upper left grid contains those projects that have high value, but it is difficult to execute because of higher risk. Five projects have been placed in that matrix. Those are Implement Enterprise Resource Planning, Improve Collaboration Systems, and Outsource Non Strategic IT Services, Management of the Supply Chain and Consolidated Data Center and Network. It is evident from the case study that the implementation of the ERP would be highly beneficial to the company, yet it is riskier for the company. Moreover, the projects will require huge amount of money to be executed. The aim of any business is to select the project that requires less amount of capital but provides high value in order to achieve the strategic and corporate goals. Moreover, time is another important factor while considering any project. The implementation of ERP would require twelve months. Therefore this project has been placed in the upper left quadrant of the matrix. Similarly, other three projects also seem to accumulate lots of benefits, yet they are riskier. Those projects have been placed in the lower left matrix which have high risk and will provide low value to the company. These projects are very unattractive for the company. Only one project seems to fall in this grid i.e. Begin CRM/ Create Customer Warehouse. It is evident from the case study that this project is highly riskier and would require almost three years to be implemented. Three projects lie in the upper right grid of the portfolio matrix. This project seems to be highly beneficial to the company. Moreover, they tend to be less risky when compared to other projects. The four projects lying in this grid are Unify Methodology and the Technical Standards, Implement E-Procurement System and Standardize Server Hardware and Platforms. It is to be noted that even though some of the projects mentioned here will take considerable amount of time and money, yet their benefits are quite high in comparison to other projects. In the lower right grid those projects fit which has low perceived value and high ability to be successful. These projects require funding from the management. Three projects have been placed in this grid namely Create Employee Intranet Portal, Streamline Design Systems and Customer Self-Service Portal. These projects don’t seem to be much attractive according to the current scenario of the company. However, the risk is quite lower in these types of projects. The Approximate Sequence for Executing the Initiatives The table given below will demonstrate clear understanding of the projects’ sequence for the execution according to the time taken and the potential benefits. Projects Time taken Benefits 1. Unify Methodology and the Technical Standards 3 months This project must be executed at the outset as the implementation of this project will help the company to eliminate the innumerable different standards and the IT methodologies. It will also help to reduce the overall cost of operation. Moreover, the time taken by this project is quite low. 2. Implement E-Procurement System 6 months Next this project needs to be implemented by the company as it is less risky and will provide more benefits to the company. 3. Standardize Server Hardware and Platforms 3 months After that this project has to be executed so that the server hardware becomes standardized and the efficiency increases. 4. Consolidate Data Center and Network 6 months In the next step, this project can be executed as it can save around $1.1 million. 5. Customer Self-Service Portal 6 months The project needs to be executed as it will reduce the expenses 6. Streamline Design Systems 3 months Then this project needs to be executed according to the requirement of the company 7. Improve Collaboration Systems 3 months After the above step, this project can be executed 8. Create Employee Intranet Portal 3 month This project should be executed 9. Implement Enterprise Resource Planning 12 months Though the benefits are huge, it will require huge time and money so they must be executed almost at the end 10. Manage the Supply Chain 12 months This project has lots of benefits. However, they will take considerable amount of time and money so they must be executed almost at the end 11. Outsource Nonstrategic IT Services 12 months The execution of this project would benefit the company by providing excellent services. 12. Begin CRM/ Create Data Warehouse More than 12 It must be executed at the end because it is quite costly as well as risky project. Bibliography Jeffery, Mark & Norton, Joseph F. MDCM, Inc. (B): Strategic IT Portfolio Management. Kellogg School of Management, 2006. Read More