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You have been contracted by a company to develop an information system for $50,000.During this assignment, you will provide a project management plan for the proposed system. The business that you design the information system for is of your own choosing. Preferably develop a system for an area that you are interested in, have had prior experience, or perhaps for a company you work for.


You cannot design the system for the same company that another student has chosen, nor can you reproduce a design for an existing well-known company. The information system you chose should be of small to medium size/complexity.
You are required to deliver the following specifications before the project can commence:
1. Identify the Problem – Provide a one-page system vision document that outlines the problem description, system capabilities, and the expected business benefits Complete the following tasks 
a. Provide a table with a breakdown of the estimated time for project completion using Excel or a similar program.
b. Provide a table with a summary of the development costs for the project and system using Excel or a similar program (use Australian dollars).
c. Provide a table with a summary of the estimated annual operating costs using Excel or a similar program (use Australian dollars).

System Vision and Problem Description

The paper mainly reflects on the development of cloud ERP system within the organization “Blach construction company” which is one of the construction company of Australia that has its offices in Silicon Valley and Central coast. It is identified that the organization uses ERP system in order to manage its operations. However, the use of ERP system creates number of challenges as well as issues including expensive installation, resistance in sharing data, difficulty in using the system as well as problem is accessing information outside the office. In order to resolve the problem, the organization wants to move its ERP system within cloud so that the operations of the organization can be managed quite effectively.

1.2 System capabilities

 The system capabilities of the cloud-based ERP system mainly include:

  • Customization of work
  • Migrating the data and information into cloud
  • Transferring knowledge as well as technology
  • Checking the infrastructure of cloud

1.3 Expected business benefits

  The benefits that are expected from the development of cloud-based ERP system are elaborated below:

   Access from anywhere: It is found that important information and data of the organization can be accessed from anywhere, anytime by the staffs as well as customers of the organization.

    No staff time: No staff time is mainly needed for maintaining or upgrading the hardware the organization grows.

 Current functionality: Current functionality is always present as the cloud vendor maintains as well as updates the software.

 Backup: Data can be quite easily backed up with the help of proper disaster recovery plan of the organization.

2. Quantify project approval factors

2.1 Time that is estimated for completion of project

  The time that is generally required for the cloud ERP system development is generally given in the below table.

WBS

Task Name

Duration

Start

Finish

0

Development of cloud-based ERP system in Blach construction company, Australia

85 days

Thu 22-11-18

Wed 20-03-19

1

   Initiation phase

15 days

Thu 22-11-18

Wed 12-12-18

1.1

      Development of project business plan

3 days

Thu 22-11-18

Mon 26-11-18

1.2

      Cost benefit analysis

3 days

Tue 27-11-18

Thu 29-11-18

1.3

      Establishing the charter for the project

4 days

Fri 30-11-18

Wed 05-12-18

1.4

      Recruiting the staffs

5 days

Thu 06-12-18

Wed 12-12-18

1.5

       Milestone 1: Completion of initiation phase

0 days

Wed 12-12-18

Wed 12-12-18

2

   Planning phase

24 days

Thu 06-12-18

Tue 08-01-19

2.1

      Developing the plan for the project

3 days

Thu 06-12-18

Mon 10-12-18

2.2

      Developing plan for project resources

2 days

Tue 11-12-18

Wed 12-12-18

2.3

      Development of financial plan

4 days

Thu 13-12-18

Tue 18-12-18

2.4

      Developing project quality plan

3 days

Wed 19-12-18

Fri 21-12-18

2.5

      Planning for risk management

2 days

Mon 24-12-18

Tue 25-12-18

2.6

      Project acceptance planning

3 days

Wed 26-12-18

Fri 28-12-18

2.7

      Project communication plan

4 days

Mon 31-12-18

Thu 03-01-19

2.8

      Developing plan for project procurement

3 days

Fri 04-01-19

Tue 08-01-19

2.9

       Milestone 2: Completion of planning phase

0 days

Tue 08-01-19

Tue 08-01-19

3

   Execution phase

41 days

Wed 09-01-19

Wed 06-03-19

3.1

      Identifying the requirements for the business

5 days

Wed 09-01-19

Tue 15-01-19

3.2

      Cloud based ERP system

4 days

Wed 16-01-19

Mon 21-01-19

3.3

      Customization of work

4 days

Tue 22-01-19

Fri 25-01-19

3.4

      Data migration

5 days

Mon 28-01-19

Fri 01-02-19

3.5

      Checking of infrastructure

4 days

Mon 04-02-19

Thu 07-02-19

3.6

      Customization

3 days

Fri 08-02-19

Tue 12-02-19

3.7

      Managing change

4 days

Wed 13-02-19

Mon 18-02-19

3.8

      Transfer of knowledge and technology

4 days

Tue 19-02-19

Fri 22-02-19

3.9

      Testing of project management

3 days

Mon 25-02-19

Wed 27-02-19

3.10

      Testing system integration

2 days

Thu 28-02-19

Fri 01-03-19

3.11

      Testing user-acceptance

3 days

Mon 04-03-19

Wed 06-03-19

3.12

       Milestone 3: Completion of execution phase

0 days

Wed 06-03-19

Wed 06-03-19

4

   Closing phase

10 days

Thu 07-03-19

Wed 20-03-19

4.1

      Reviewing the project

4 days

Thu 07-03-19

Tue 12-03-19

4.2

      Sign off the project stakeholders

4 days

Wed 13-03-19

Mon 18-03-19

4.3

       Post go-live support

2 days

Tue 19-03-19

Wed 20-03-19

4.4

       Milestone 4: Completion of closure phase

0 days

Wed 20-03-19

Wed 20-03-19

2.2 Development cost of the project

 The budget that is generally needed in order to develop the cloud-based ERP system are provided below.

WBS

Task Name

Duration

Resource Names

Cost

0

Development of cloud-based ERP system in Blach construction company, Australia

85 days

AUD49,440.00

1

   Initiation phase

15 days

AUD3,800.00

1.1

      Development of project business plan

3 days

Project planner, Project manager

AUD1,320.00

1.2

      Cost benefit analysis

3 days

Financial manager

AUD480.00

1.3

      Establishing the charter for the project

4 days

Project planner

AUD800.00

1.4

      Recruiting the staffs

5 days

Project manager

AUD1,200.00

1.5

       Milestone 1: Completion of initiation phase

0 days

AUD0.00

2

   Planning phase

24 days

AUD9,960.00

2.1

      Developing the plan for the project

3 days

Project planner, Supervisor

AUD1,128.00

2.2

      Developing plan for project resources

2 days

Project planner, Financial manager, Human resource manager

AUD1,040.00

2.3

      Development of financial plan

4 days

Project planner, Financial manager

AUD1,440.00

2.4

      Developing project quality plan

3 days

Supervisor, Financial manager, Risk analyst

AUD1,488.00

2.5

      Planning for risk management

2 days

Risk analyst, Tester

AUD624.00

2.6

      Project acceptance planning

3 days

Project planner, Supervisor

AUD1,128.00

2.7

      Project communication plan

4 days

Project planner, Supervisor

AUD1,504.00

2.8

      Developing plan for project procurement

3 days

Project planner, Supervisor, Financial manager

AUD1,608.00

2.9

       Milestone 2: Completion of planning phase

0 days

AUD0.00

3

   Execution phase

41 days

AUD33,520.00

3.1

      Identifying the requirements for the business

5 days

Supervisor, Database manager, Human resource manager

AUD2,480.00

3.2

      Cloud based ERP system

4 days

Supervisor, Technical engineer

AUD1,344.00

3.3

      Customization of work

4 days

Risk analyst, Technical engineer, Project planner, Additional cost[1]

AUD14,080.00

3.4

      Data migration

5 days

Database manager, Technical engineer, Tester

AUD2,360.00

3.5

      Checking of infrastructure

4 days

Supervisor, Risk analyst, Technical engineer, Tester

AUD2,592.00

3.6

      Customization

3 days

Database manager, Project manager, Technical engineer

AUD1,680.00

3.7

      Managing change

4 days

Project planner, Supervisor, Database manager, Risk analyst, Technical engineer

AUD3,424.00

3.8

      Transfer of knowledge and technology

4 days

Supervisor, Database manager, Risk analyst, Technical engineer

AUD2,624.00

3.9

      Testing of project management

3 days

Risk analyst, Tester

AUD936.00

3.10

      Testing system integration

2 days

Supervisor, Database manager, Technical engineer

AUD992.00

3.11

      Testing user-acceptance

3 days

Supervisor, Technical engineer

AUD1,008.00

3.12

       Milestone 3: Completion of execution phase

0 days

AUD0.00

4

   Closing phase

10 days

AUD2,160.00

4.1

      Reviewing the project

4 days

Project planner

AUD800.00

4.2

      Sign off the project stakeholders

4 days

Project manager

AUD960.00

4.3

       Post go-live support

2 days

Project planner

AUD400.00

4.4

       Milestone 4: Completion of closure phase

0 days

AUD0.00

2.3 Estimated annual operating costs

 The operating cost that is generally needed by the cloud-based ERP system are provided below.

Recurring expenses

Amount

Hosting in the server

$6,000

 Internet connection

$3,000

Training

$3,000

Renewal (Equipment)

$3,000

Total Costs

$15,000

2.4 Cost benefit analysis

2.4.1 Anticipated benefits

  The benefits that are achieved from the cloud-based ERP system deployment are given below. It is found that the anticipated benefits generally include both tangible as well as intangible benefits.

Tangible benefits:  The tangible benefits that are achieved from the cloud-based ERP system development are listed below.

  • Provide access of information from anywhere irrespective of the location
  • Reduces staff employment
  • Reduces extra expenses on various technological needs

Intangible benefits: The intangible benefits which are generally achieved from the cloud-based ERP system development are provided below:

  • Enhancing satisfaction level among the staffs as they can get access of information even from their home
  • Keep the inconsistencies as well as glitches away
  • 2.4.2 Table for estimated annual benefits

  The benefits that are generally achieved annually due to the cloud-based ERP development is showcased in the below table.

Benefit

Amount

Faster implementation

$5,000

Fast performance

$7,000

Minimizing technological expenses

$6,000

Reduction in the number of staffs

$6,00

Total amount

$24,000

3. Perform a risk and feasibility analysis

3.1 Determining feasibility and organizational risks

 The organizational feasibility and risks which are mainly related with the project are generally elaborated below:

Data security: This is considered as one of the biggest issues that is related with the cloud ERP. It is found that when the information is made web accessible then the problem of data breaches become of the legitimate concern. Thus, the organization faces number of security related issues.

Cost consideration: It is found that though the overall solution of cloud is considered to be very much cost effective but the organization faces financial issue when long term cost for licencing of cloud ERP system is required. When the organization wants to move to cloud the organization initially needs to spend certain amount of money for getting the license.

System Capabilities

Inability to adapt: In spite of the intention of moving to the cloud, unfamiliarity as well as inability to adopt the new information system by the organizational staff is seen due to lack of preparation. Thus, the staffs who generally have very much limited information as well as knowledge related with technology generally creates difficulties for adopting the system.

3.2 Evaluating technological risks as well as feasibility

 The employees who are mainly associated with the organization are provided with proper training facility of 2 days if it is quite difficult for the employees of the organization to manage the operations in cloud. Additionally, both video as well as presentation resources are generally shared among the staffs so that the employees can get proper idea about how the organizational operations will be managed for stored. Moreover, the resources also help in providing proper idea about the process of data recovery in case of any problem.

 It is found that for checking the feasibility of the cloud-based ERP system, it is very much necessary to test the ERP system for making sure that the entire operations as well as functions of the organizations can be effectively managed.

3.3 Asses resource risks and feasibility

It is analyzed that it is quite necessary for the organizational staffs to properly understand the roles as well as responsibilities which are mainly needed for executing each of the project tasks in order to develop the cloud ERP system. If the employees are unable to analyze the needs as well as requirements for cloud ERP system development there is number of probabilities of risk occurrences.

3.4 Identify schedule feasibility and project risks

If the schedule of the project is not  properly managed then it is analyzed that there is a high chance that the project will not get completed within the time that is expected and thus in order to finish the project, it is quite necessary to extend the completion date of the project. Extension in the project time generally enhances the cost that is associated with the project which further creates financial issues. For resolving the issues, it is quite important to schedule the project activities so that the cloud ERP can be developed within the expected budget and time.

4. Project environment establishment

4.1 Information outlined in the table.

Information capture

Information capture

Electronic tools

User accessibility

Project schedule

MS-Project

Project manager

Annual cost associated with project operation

MS-Project

Project manager

Annual benefits from the project

MS-Project

Project Manager

Project status

MS-Project

All user

User documentation

MS-Word

All User

Design specification

Microsoft Visio

Project manager

4.2 Describe the work environment

   The work environment is quite important for completing the project successfully. The tables that are provided below reflects on the various types of resources which are generally needed for the work environment of the project

Hardware and software

Item

Description

Resource

Server

Dell PowerEdge T440 Tower Server

Blach construction company (Expense)

Computers

Dell inspiron 3477 and Dell inspiron 5000

Blach construction company (Expense)

MS-Project

Microsoft Project 360

License-Owned by author

MS-Word

Microsoft Word 360

License-Owned by author

MS-Visio

Microsoft Visio 360

License-Owned by author

Support Staff

Item

Description

Resource

Admin Staff

Organizational staff

Blach construction company

4.3 Description of the procedures and processes that will be utilized

  The procedures as well as processes which are generally needed in the project are generally elaborated below:

  Testing: Testing the performance will be done for making sure that the cloud ERP system will be capable of managing the organizational operations and functions of the organization quite effectively. If any case of technical failure is seen, then it is necessary to make improvements.

Expected Business Benefits

Documentation: All the information as well as details that are mainly associated with the meetings, feedback as well as design specification are generally documented for keeping record so that the information can be used in the future when needed.

Deliverables: After completion of the project, the Blach construction company can be able to store the organizational data within cloud and thus if the staffs of the organization want to access information can easily access data irrespective of time and location. This assists in increasing flexibility of the staffs. Moreover, the data and information of the customers are stored properly on the cloud and additionally the information recovery facility is also provided with the help of cloud ERP.

5. Schedule the work

5.1 Work breakdown structure

The structure of work breakdown is given below:

WBS

Task Name

0

Development of cloud-based ERP system in Blach construction company, Australia

1

   Initiation phase

1.1

      Development of project business plan

1.2

      Cost benefit analysis

1.3

      Establishing the charter for the project

1.4

      Recruiting the staffs

1.5

       Milestone 1: Completion of initiation phase

2

   Planning phase

2.1

      Developing the plan for the project

2.2

      Developing plan for project resources

2.3

      Development of financial plan

2.4

      Developing project quality plan

2.5

      Planning for risk management

2.6

      Project acceptance planning

2.7

      Project communication plan

2.8

      Developing plan for project procurement

2.9

       Milestone 2: Completion of planning phase

3

   Execution phase

3.1

      Identifying the requirements for the business

3.2

      Cloud based ERP system

3.3

      Customization of work

3.4

      Data migration

3.5

      Checking of infrastructure

3.6

      Customization

3.7

      Managing change

3.8

      Transfer of knowledge and technology

3.9

      Testing of project management

3.10

      Testing system integration

3.11

      Testing user-acceptance

3.12

       Milestone 3: Completion of execution phase

4

   Closing phase

4.1

      Reviewing the project

4.2

      Sign off the project stakeholders

4.3

       Post go-live support

4.4

       Milestone 4: Completion of closure phase

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