Question
Click and Ship is a web-based online ordering company that specializes in providing consumers with wholesale products. Click and Ship is leveraging the success of
Click and Ship is a web-based online ordering company that specializes in providing consumers with wholesale products. Click and Ship is leveraging the success of other wholesale companies such as Sam's Club and Costco but offers their products via online only at clickandship.com. Click and Ship has only been in business for one year and employees 50 people.
Click and Ship has a central office and main supply facility in which all orders are received via the Internet then packaged and loaded for delivery to other distribution centers around the United States. There are 5 distribution centers located in San Francisco, Dallas, Chicago, New York and Miami. The main supply facility is located in Raleigh-Durham in which the central management team is also located.
Click and Ship requires a fully automated shopping system for consumers, using a state-of-the-art, proprietary, online-only website. Click and Ship provides 24 hour customer support and sales experts via built-in chat which is secure and capable of fully interactive collaboration.
The central hub of the IT infrastructure includes a medium sized Cisco Data Center which provides unified host fabric support to internal systems as well as consumers and suppliers. There are Wide Area Network connections from the central hub and to each satellite distribution center in which distributed computing for storage, databases and information dissemination systems are synchronized in real-time.
Click and Ship did not have the revenue for Disaster Recovery which is the mechanism by which critical information is backed-up to alternate geographic locations in the event of a disaster. The purpose of DR is to not lose revenue do to down-time and to provide customers with secure and reliable shopping.
Disaster Recovery will cost Click and Ship and estimated $300,000 initially then approximately $100,000 annually for life cycle management, additional man-hours, licenses, power and facilities etc.
Click and Ship has not yet seen a profit from the first year but projects profits of $1,000,000 for each of the next 5 years. The current IT Life Cycle Management annual budget is $150,000 which means that the IT LCMP would increase to $250,000 or 25% of the company's profit.
QUESTIONS:
IT Systems Feasibility Analysis
- Technical Feasibility
- What technical resources currently exist that could be leveraged in order to install and sustain this new DR system?
- Can this system be installed without upward scaling or modifications to existing systems? If no, then explain.
- Can existing IT support personnel sustain this system? Will new training be required?
- Are there facilities available to support this new system (building, power, cooling etc.)? What is the impact if not implanted?
- Include any additional analysis relating to materials, labor or general technological considerations that should be analyzed from the perspective of risk management.
- Economic Feasibility
- This part of your systems feasibility will focus on the economic benefits and impacts of implementing this system. While the majority of new systems builds provide direct economic benefit(s) the DR project does not fall into that category.
- Provide a general summary of the short term and long term impacts of not implementing this system from an economic perspective (Ex. Customers may lose data and leave this company)
- Cost Benefit Analysis:
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- Cost Feasibility summary and recommendation based upon CBA ananysis
- Legal Feasibility: List and discuss any known legal considerations for installing this new system. Consider every aspect of this system from installation to sustainment.
- Operational Feasibility
- Describe the business problem or the impact that the business faces by not providing customers with a backup of their critical data.
- Consider the businesses ability to sustain an additional system from the perspective of man-power, special skills, training etc.
- Scheduling Feasibility
- Considering the fact that this operational gap already exists, discuss the impact that time plays. What is the maximum amount of time that this company is willing to wait before the new system is in place?
- What are all of the impacts to the schedule?
- What is the risk is schedule creep?
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