Advisory Board

Recommendation for Designing and Executing a Business Analytics Project

2016-08-08T20:42:00.000-04:00

To: Candice Fleming, CIO, Montclair State University

From: Jennifer Mackson

Date: August 8, 2016

Re: Recommendation for Designing and Executing a Business Analytics Project

Montclair State University’s (“MSU”) short-term goal, is to grow from 300+ students to over 500 students in the next 3-5 years. To accomplish this MSU would like to increase its attractiveness and appeal to prospective students. MSU would like to explore the possibility of utilizing the approach suggested in Drs. Merchand an Peppard’s article “Why IT Fumbles Analytics.”

To assist with understanding how MSU can accomplish this, F.A.M. Consultants presented the five guidelines for successfully implementing an analytics project in accordance with Drs. Merchand an Peppard’s article:

1. Place People at the Heart of the Initiative

2. Emphasize Information Use as the Way to Unlock Value from IT

3. Equip IT Project Teams with Cognitive and Behavioral Scientists

4. Focus on Learning

5. Worry More About Solving Business Problems than About Deploying Technology

The idea is to take a more analytical approach with IT projects that will exploit data in new ways and figuring out how to use the information generated to make better decisions or gain deeper insights into key aspects of the business.* F.A.M. believes that this approach will have several impacts. One of the impacts is an increase focus on students – current and prospective. This focus enables MSU to identify information such as why students are considering leaving the program and what the program needs to do to minimize that. Another is better financial performance from increased enrollment and then being able to manage costs. Having the ability to monitor the decision making of finances provides a way for MSU to make more informed decisions concerning the allocation of funds. Finally, statistical analysis will help determine a customer and market type that MSU should target to increase its enrollment.

The disadvantage to the suggested approach is that utilizing all five guidelines may yield the most optimal results but is not a one size fits all approach. Applying all guidelines can become tedious, costly and/or unnecessary.

Asked the question of which guideline would best suit MSU’s goal, I would recommend ‘Emphasize Information Use as the Way to Unlock Value from IT’. This initiative encourages challenging and improving the way information is used, questions are answered and decisions are made.* This initiative has three approaches: 1) Ask second-order questions; 2) Discover what data you do and do not have and 3) Give IT project teams the freedom to reframe business problems. Utilizing these three approaches will allow MSU to understand the information it needs to accomplish its goal, gather the information it needs, organize it and eventually interpret it. From this information MSU can put together a plan and an IT strategy that will accomplish the institution’s goal of increasing its enrollment by 200+ students in the next 3-5 years.

* Marchand, Donald A. and Peppard, Joe. Why IT Fumbles. Case Study. Harvard Business Review, 2013. Print. January-February 2013.

Recommendation - Visio

2016-07-25T20:23:00.002-04:00

To: CEO

From: Jennifer Mackson

Date: July 25, 2016

RE: Visio

Akerman LLP is considering purchasing and installing Microsoft Visio. Visio provides diagramming and graphics to create flowcharts.

A few attorneys may utilize Visio but it will primarily be utilized by the administrative staff – administrative assistants, paralegals, other support staff – and consultants. Administrative Assistants and Paralegals create flowcharts to use as exhibits at trials and as illustrations for firm memos. Consultants can use Visio to organize and illustrate timelines and processes.

Microsoft offers two options: Visio Professional for $589.99 and Visio Standard for $299.99. Visio Professional “allows individuals and teams to easily create and share data-linked diagrams that simplify complex information” and Visio Standard “lets you simplify complex information through simple, easy-to-understand diagrams.” If the firm decides to purchase Visio, the Standard provides enough features to satisfy the firm’s needs.

Visio is not currently installed on the firm PCs. The staff would need a brief introduction and minimal training. The cost of installation and training is outlined below.

The cost of Visio software for approximately 170 PCs is $50,998 (150 administrative staff + 20 Consultants x $299.99). However, installation is easy because each office’s IT personnel can download the software to each PC during the workday. Since installation can be done during normal business hours, the firm will not incur the additional cost of having to pay overtime to IT personnel.

Visio will not require extensive training; an hour of training will be sufficient. If anyone needs additional help following training, the IT Help Desk is available.

Training for the administrative staff will cost: $5,250 (150 employees x $35 x 1 hour x 1 day).

Training for consultants at an average non-billable hourly rate of $200/hour for 1 day = $4,000 (20 Consultants x $200 x 1 hour).

A member of the firm’s Training & Development team would need to travel to the firm’s 21 offices to train the consultants and. Travel costs would average: $11,020 ($40 x 8 hours (time in each office) x 6 hours (travel) + $700 (airfare) + $400 (hotel) x 21 offices)

Total cost for software, installation and training will be $71,268.

Currently, consultants and staff use the few graphic options that Microsoft Word has to offer – Clip Art, Shapes and SmartArt – to create flowcharts. Depending on what an individual is trying to illustrate or convey, this can be frustrating and take up time. Visio makes those tasks easier and it will be a one-time purchase that can be upgraded as needed with the Microsoft Office Suite that the firm currently has. Purchasing Visio is costly as explained above but will be useful for the long-term to consultants and staff. For these reasons, I recommend that the firm invest in Visio.

IT Initiative Recommendation for PFM Devices

2016-07-25T20:23:00.000-04:00

To: Betty Brewer, CIO

From: Jennifer Mackson

Date: July 25, 2016

RE: IT Initiative Recommendation for PFM Devices

As a result of a decrease in revenue, PFM Devices has developed a new strategy with four objectives to turnaround and increase revenue:

· Increase market share,

· Decrease operating expenses,

· Increase access and visibility to financial, inventory and sales data on a worldwide basis and,

· Reduce inventory levels globally.[1]

To achieve the above-listed objectives, PFM’s executive team has decided to implement either a customer relationship management system or a data warehousing project. The issue is which of these two initiatives should be implemented first.

A data warehouse would help with two of the four objectives listed above: decrease operating expenses and increase access and visibility to financial, inventory and sales data on a worldwide basis. With the availability of more current and real-time information that data warehousing provides, decisions can be made faster which in turn would assist with decreasing operating expenses. However, the data warehousing project will take longer to implement. PFM wants to meet its objectives within a year or sooner and there are a few obstacles and challenges that stand in the way of a speedy implementation of data warehousing. The process of consolidating data and systems across three regions – United States, France and Japan is complex. Each region has its own set of technology challenges that would make consolidation difficult. The projected cost savings for this project is $339,717 for the next four years however the cost will be $2.8 million.

The other IT initiative, a customer relationship management system (“CRM”), would help PFM increase revenue and market share. A CRM will allow PFM to build relationships with existing customers and to gain new customers which will help PFM increase its market share. Once PFM increases market share, revenue will increase as well. Estimated project costs and benefits illustrate that implementing CRM will increase revenue approximately $1.2 million dollars over the next 5 years after implementation and operating costs will steadily decrease. But this option is the costlier of the two at $4,955,300.

My recommendation for PFM Devices is that the company implement a CRM system to increase its revenue and then focus on the data warehouse project. An improvement in revenue in the short-term is what PFM needs and the CRM system will provide that as well as income to pay for the implementation of the data warehouse which will further assist with the continued success of the company by providing real-time information for faster decision making and cutting operating expenses.

[1] Embry, Mark and Kayworth, Timothy. PFM Devices – Complex Project Initiatives. Case Study. Ivey Publishing, 2007. Print. 6 September 2007.

IT Recommendation for JUNK VAN

2016-06-27T23:13:00.000-04:00

To: Marcus Kingo

From: Jennifer Mackson

Date: June 27, 2016

RE: IT Recommendation JUNK VAN

JUNK VAN needs an information technology solution that will help resolve several issues - incomplete and incorrect data entry by data clerks, the relaying of incomplete and incorrect information to drivers and will allow Mr. Kingo to run his business instead of correcting mistakes or cleaning up the database. In addition, JUNK VAN needs a reliable system for payroll and billing. Mr. Kingo has requested that the IT solution have the following elements: a central database that is accessible remotely, sends emails automatically, easy to implement and operate, flexibility to handle IT changes in the market or business, vendor support and that the option be budget friendly.

Consultants from JFP Group provided and outlined five options to choose from – Microsoft Access Database, Custom Application, Google Docs, Platform as a Service and Enterprise Resource Planning System. Of the five options, JFP Group highly recommended Google Docs and Platform as a Service as IT solutions for JUNK VAN.

Google Docs meets some of the criteria – it is remotely accessible, easy to use and provides flexibility in the event of expansion or IT changes. In addition, implementation takes approximately two weeks and the cost is low. There are two packages to choose from – Google Apps for Work at $5 per user/month and Google Apps with unlimited storage and Vault at $10 per user/month. Google Apps with unlimited storage and Vault is the most comprehensive package and offers: business email addresses, unlimited storage, online text documents, security and admin controls and email archive just to name a few. The cost for this package is $100/month ($10 x 10 employees). While this is a budget-friendly option, there are a few drawbacks. Google Docs does not send emails to customers automatically, which means there is vulnerable to human error since emails will be sent from the data clerk and operators. This, as stated above, is one of the issues that you are hoping to resolve with one of the IT options. Another drawback is the type of vendor support. Vendor support is available but is not live – you will not speak with a person but rather have to rely on forums and solutions online.

The other option is Platform as a Service (PaaS). Like Google Docs, PaaS is remotely accessible, customizable, easy to use and can be implemented in a short period of time. However, it is important to note that PaaS is expensive. The cost of PaaS is dependent upon the features chosen, which allows you to build a system that will be the most beneficial to the company, but the more options and features that are added the more expensive it becomes. Implementation takes a short amount of time but like customization is dependent on the features chosen and the extent of the customization. It is difficult to provide an estimation for the cost of this solution because until you begin customizing, you will not have an idea of how much the system will cost. This option does have its benefits. One of the benefits of Paas is live vendor support and web-based virtual training. Virtual training allows your staff to learn the system at his/her comfort level and support is available when needed. Both the vendor support and training are included in the package you choose without an additional cost to you. Another benefit is that PaaS has the ability to send emails automatically and that feature can be customized as well. An additional benefit, and continuing with customization, this system will allow you to create a payroll and billing system for your company. Since PaaS has the capability to send emails automatically, you will be able to eliminate the data clerk which will resolve the issues of incomplete and incorrect data entry by data clerks, the relaying of incomplete and incorrect information to drivers.

Google Docs and PaaS each have their benefits and drawbacks but PaaS is the best IT recommendation and solution for JUNK-VAN. PaaS provides a solution to all of JUNK VAN’s IT needs: it allows for remote access, ease of use and implementation, ability to send emails automatically, customization and flexibility to handle IT and/or business model changes and/or expansion. It allows you to focus on running the business smoothly and eliminates a part of the business model that was causing inaccurate information to be entered and shared – the Data Clerk. Paas is the least budget friendly of the two options but this solution provides more of what JUNK VAN needs and is looking for in terms of an IT solution.

Recommendation - Laptop or iPad

2016-06-20T23:05:00.001-04:00

To: Bill Wolfson, VP, Amrahp, LLC

Tom Armstrong, Sales Operations Manager, Amrahp, LLC

From: Jennifer Mackson

Date: June 20, 2016

Re: Replacing Laptops with iPads

Amrahp LLC is considering whether to switch to iPads or keep their current laptops.

The detailers (sales representatives) use their laptops for heavy data entry and each laptop consists of the following internally developed operating systems:

1. A system that consists of a QR code reader that is used to scan drug samples that are given out to medical doctors. After the drug sample is scanned, the information is transmitted to headquarters and then to the FDA as a means of record keeping.

2. A Customer Relationship Management System (CRM) that keeps track of all the information gathered about each doctor in the detailer’s territory. Information about a doctor can range from children’s names and birthdays to his/her last vacation. This helps the detailer manage and maintain a business relationship with the doctor. Detailers also keep notes regarding discussions with doctors, notes to managers and other detailers in the territory as well as notes to themselves. From the CRM, detailers can prepare reports that detail how many calls were made and/or how many documents (studies about a particular drug) were delivered.

3. A system that records and tracks travel and expenses.

Whether he/she is using a tablet or a laptop, both have to have Microsoft Word. Detailers use Word to prepare reports.

In addition to data entry and preparing Word documents, the laptops are used to present information to medical doctors. Three means of presenting information are video, charts and tables and presenting a PDF of a published study.

There are two drawbacks to switching to iPads. The first is that it is unknown whether iOS is compatible with the operating systems discussed above. The other disadvantage is that the iPad is touchscreen and is not equipped with a keyboard. However, a keyboard can be purchased for $150-170. There are many advantages, however, that will benefit the detailers. Detailers spend a lot of time on the computer or in their car. Carrying around a laptop can be cumbersome. The iPad provides a lightweight option and provides ease of transport. An iPad can be carried under your arm while a laptop has to packed and unpacked from a bag. An iPad can also be carried in a bag but it is not nearly as heavy nor does it take up as much room as a laptop. For presentations, like the ones discussed above, iPads are easier to maneuver because they are handheld. They can even be handed over to a doctor for him/her to review themselves without having to worry about finding a place to prop it up on. Another advantage of iPads is that they also support Microsoft Office programs.

The cost of purchasing iPads for 1,000 employees is $897,990.

Breakdown of cost of purchase:

iPad: $629.00 x 1000 = $629,000
AppleCare: $99 x 1000 = $99,000
Microsoft Office 365: $99.95 (for 5 licenses) x 200 = $19,990
Keyboards: $150 x 1000 = $150,000

AppleCare is not a requirement but is recommended since it provides technical support and some repair coverage.

The cost of training, if necessary is approximately $120,070. Please note that it is possible to cut training costs if many of the detailers are already comfortable with using iPads.

Breakdown of training costs:

Training personnel cost= $35/hour for 2 hours for 1 day = $70
Employee hourly wage = $60/hour x 1000 employees x 2 hours = $120,000

Considering the requirements of the job – the travel and amount of data entry, the iPad seems like an attractive option. They are lightweight, easy to maneuver and support Microsoft Office programs such as Word and Excel. However, purchasing the iPads and training are expensive. There is also the additional cost to consider of possibly having to re-write the operating software so that it is compatible with iOS since it is unknown whether it is compatible. Considering the costs of purchasing equipment, training and possibly purchasing or re-writing software, I would recommend that Amrahp continue to use the laptops at least until it knows that its own software is compatible with other operating systems.

Recommendation - ZARA POS

2016-06-20T22:59:00.000-04:00

To: ZARA CEO and Executives

From: Jennifer Mackson

Date: June 20, 2016

RE: POS System

ZARA is considering whether to keep the current POS system that runs on DOS or upgrade to a new POS system.

ZARA currently utilizes DOS. It is user friendly, easy to maintain, allows easy setup of POS terminals in the event of technical issues and malfunctions, is customizable, and does not require IT support outside of what is already established. This helps to also keep the IT costs low. The decentralized system allows us to gather information from 500+ stores regarding what customers want or what the latest trend is, relay that information to the manufacturers and distributers and have the items on the floor in stores in a matter of weeks – a key characteristic that makes us a leader in fast fashion.

However, there are disadvantages to keeping the current system. The major one is that DOS is no longer supported by Microsoft. Even though the vendor has assured ZARA that it will not make any drastic changes, there is no guarantee of continued support. Also, the current system is vulnerable to human error and continuing to utilize DOS could result in a loss of €2M in revenue.

The consulting company, Accenture, recommends that we upgrade to Windows OS. Since DOS was once supported by Microsoft, Accenture recommends that ZARA maintain the supplier relationship and upgrade to Windows OS. It is believed that since DOS and Windows are Microsoft programs, the new POS will not be difficult to learn and will require minimal training. It is further believed that Windows OS will increase efficiency, speed and inventory management which will help support and maintain ZARA’s position as a leader in fast fashion by providing more detailed information concerning inventory. The current system does not provide detailed information such as how many items of a particular size should be distributed to each store. For example, when a particular top is being distributed, one store might need more of one size than another store. The Windows OS system is able to provide that information because it allows stores to communicate with each other. The company’s core strength that makes it a leader in fast fashion is its ability to manufacture and distribute apparel in a very short amount of time. With that being said, Accenture has assured us that the speed of manufacturing and distribution will not be affected, ZARA will just have more detailed information available.

Another advantage of Windows OS is that it will allow ZARA to continue to use PDAs for ordering, and transmitting information. In addition, with Windows OS, information will not only be transmitted between headquarters to stores but also between stores.

Implementation of Windows OS for 550 stores will take approximately five years: hardware costs per store are €429,000, connectivity costs will be €132,000, programming costs €1,125,000 and training €1,100,000. Total implementation costs over the course of five years will be €1,114,000.

The new system will not be rolled out at one time. ZARA will be able to continue to use DOS and the installation will occur after hours. In addition, Accenture recommends a soft launch to ensure that the new system will work.

There a few things to take into consideration for implementation of a new POS. First and foremost, implementation will be expensive and take 5 years. In addition, in the event that the new system does not work, there is no contingency plan. The amount of lost revenue in the event of this or a delay in rollout was not outlined or stated. With the current system, the software needed is on two floppy disks that are uploaded to a terminal and the software does the rest. This same procedure is also utilized when a terminal is down.

While Microsoft OS will enable ZARA to provide more detailed information concerning inventory and provide opportunity for expansion, the company’s main focus is speed specifically in manufacturing and distribution. DOS still allows us to do that. Further, the size of lost opportunity of not having this detailed information is unknown.

The current system is working well for ZARA. It provides and supports the capabilities necessary and important to ZARA to continue to manufacture and distribute apparel quickly and in a short amount of time. An upgrade to a Windows OS would provide more detailed information concerning inventory but that is not the company focus at this time and neither is growth and installation is costly – money and time-wise. For the reasons stated, I recommend that ZARA continue to use the current DOS system.

Recommendation - HTML Training

2016-06-12T19:09:00.000-04:00

To: CEO

From: Jennifer Mackson

Date: June 12, 2016

Re: HTML Training

The firm is considering HTML training for attorneys and staff. HTML is the language/coding used to create webpages. The firm has in-house Content Editors in the New York and Miami offices who create, update and maintain the firm's website content. Their salary is $55,000 and $45,00 respectively and they are already proficient in HTML.

The intellectual property and litigation group have blogs that they post to on a bi-weekly basis. The Content Editor is the point person if a practice group has new content to add, needs content revised or wants the blog re-designed with a more attractive layout. There are times when the Content Editor cannot meet all requests within a certain deadline much to the practice group's frustration. During those moments, it would be helpful and beneficial for an attorney or staff member to have an understanding and minimal proficiency in HTML. However, these moments of frustration are few and far between. HTML can be taught but it comes with a cost. The costs are outlined below.

The cost of training the entire firm - consisting of 600 attorneys and administrative staff of 150 - on HTML is calculated as follows:

Attorneys: For a minimum of 2 hours at an average non-billable hourly rate of $300/hour for 1 day = $360,000 (600 attorneys x $300 x 2 hours x 1 day).

Staff: For a minimum of 2 hours at an average hourly rate of $35/hour for 1 day = $10,500 (150 employees x $35 x 2 hours x 1 day).

To keep costs at a minimum, the firm can have IT personnel or the Content Editors lead the training. Training done by IT personnel would cost $1,302 (21 IT personnel x $31/hour x 2 hours x 1 day). To avoid the cost of travel for the Content Editors who would have to travel to at least 9 offices between them to lead training in the firm's 21 offices; they can conduct training via webinar at a cost of:

NYC Content Editor - $558
($31/hour x 2 hours x 9 office x 1 day)

Miami - $500
($25/hour x 2 hours x 10 offices x 1 day)

Approximate Total Cost for Training = $371,802

It is clearly more cost efficient for the firm to continue to allow the Content Editors to handle the editing and updating of the firm's website and practice group blogs. However, if the firm is insistent on training, I recommend that the training be offered as an option and not a requirement. This way only those who are really interested and feel they would benefit the most could participate in the training. The firm would only have to pay for training possibly 10 - 15% of the firm attorneys and staff instead of 750 employees. The firm would spend approximately $7,000 instead of $370,000.

My recommendation is to leave the website and blog editing to the Content Editors who are already proficient in HTML and, if necessary, in the future, offer HTML training as an option instead of a requirement to staff and attorneys.

Recommendation - Google Docs

2016-05-30T22:59:00.001-04:00

The law firm currently uses the word processing program Microsoft Word and is considering switching to Google Docs.

The advantage of using Google Docs is that it allows a team of attorneys to collaborate on a document at the same time. Attorneys that are working together on different parts of a brief or affidavit, can work in a document at the same time. This would save time and supplies. Partners can see what changes associates and other partners are making in the document without creating and saving multiple versions of the same document and then printing it to make written changes and notes to add to another version. This method of preparing a document and making revisions could take approximately 7 hours. Utilizing Google Docs could cut billable hours in document preparation, by 20 – 50% which will lower client bills. Lower client bills will make our clients happy and will be appealing to potential clients. However, it should be noted that lower client bills could adversely affect the firm’s profits.

The disadvantage of utilizing Google Docs is lack of protection for Privileged and Confidential documents as well as Attorney Work Product. Since a Google Doc is a program that not only allows for collaboration but allows an individual to see changes as they are being made, the document cannot be submitted to an adversary without further protection to ensure nothing confidential between the client and attorney is shared.

Staff and attorneys are familiar and, for the most part, well versed in using Microsoft Word. Switching to Google Docs would require training for the new word processing program, installation of a new document management system, and training for the new system.

Average training time for word processing programs at the firm is 2 hours/day for 2 days. The cost to the firm of training attorneys and administrative staff is listed below:

Training for 600 attorneys at an average non-billable hourly rate of $300/hour for 2 days = $720,000.00

Training for the administrative staff of 150 Legal Administrative Assistants, Paralegals and other staff = $21,000 (150 employees x $35 x 2 hours x 2 days)

To train the entire firm on Google Docs would cost approximately $741,000.00

The firm’s current document management system, WorkSite, is not compatible with Google Docs. With the current system, a Google Doc would be saved as a Word document to the hard drive or the desktop then saved to WorkSite. This will work in the short term but the hard drive and the desktop are not stable enough places to save documents. The documents would be susceptible to being lost via PC crashes or loss of functionality of a server(s).

For a new document management system, the average cost per user is $500. For 750 employees, it would cost the firm $375,000 for a new document management system. The training cost would be approximately the same as training for Google Docs - $741,000.

The firm’s Training & Development team would need to travel to the firm’s 21 offices to train the attorneys and staff on the new program and document management system. Travel costs would average: $11,020 ($40 x 8 hours (time in each office) x 6 hours (travel) + $700 (airfare) + $400 (hotel) x 21 offices)

The total cost for switching to Google Docs would be $ $1,868,020.

For the reasons stated above, I advise that the firm should not switch to Google Docs and continue to use Microsoft Word.