Implementation Of Cloud-Based Integrated System At Star Car Rentals

Business Case and Needs Analysis

The report is based on implementation of new cloud based integrated system in Star Car Rentals so that their business operations are improved and it leads to increase in market share of the company. There are various issues in the current system of the company which are required to be improved on scheduled time. This particular report analyzes the business case of Star Car Rentals with its business needs and benefits. It also analyzes the project cost to determine the budget for implementation plan. An organization structure and work breakdown structure is analyzed to determine the project team and work activities in this project. The paper analyzes the project schedule to determine start and end date of project, earned value analysis to determine various project cost analysis and risk to identify possible risks in the plan.

Star Car Rentals attained a market share of 45% of New Zealand car rental market with implementation of IT systems to cover its operations in areas such as customer relationship management, vehicle pick up, returns management, accounting, payroll, reservation management and others. The major problem with its existing applications is lack of integration. The current system has problems related to incorrect information about availability of vehicle, poor vehicle maintenance, incorrect invoicing and others. Those problems provide effect on rapid decline in revenue as the customers are moving away from the company. In the year 2018, the market share of company is stood at 20%. There is also reduction in sales as well as fall in the market share of the company. In order to overcome with those problems, the company decided to upgrade its existing systems and integrate a new cloud based integrated system.

Star Car Rentals will benefit from the new cloud based integrated system. The proposed system connects different application, system as well as IT environments for real time exchange of the data as well as processes. The system improves connectivity, visibility and optimization of the business operations. This system eliminates existing issues of data duplication as well as manual business work. The system will automate the entire business operations to make it time consuming, faster and efficient. It allows using of cloud applications without installation, access private as well as business files from whichever location throughout a remote internet access. It can improve computing efficiencies by centralization storage, memory as well as processing. It helps to configure of on-premise as well as cloud applications to share of data over cloud. The system is provided up-to-date information related to various business activities. Change into manual segments to automated system improves accuracy of level of business operations such as customer relationship management, vehicle pick up, returns management, accounting, payroll, reservation management and others. The system is also secured as username and password is being allocated to each employee to verify and gain access to the cloud.

Project Cost and Budget

From the financial point of view, the implement of new cloud integration system is required of total one-time cost for setting the proposed system is $510,000 with recurring cost per month is $35,000. It is estimated that the company will save an amount of $650,000 per year by means to eliminate lost sales as well as improve operating efficiencies.

The one-time cost for setting the systems are:

.Project Phase	Cost	Estimated Elapsed Time in Months
Requirements Analysis	$150,000	2
Configuration and Testing	$200,000	3
User Acceptance Testing	$80,000	3
Implementation including user training	$50,000	2
Setup cost for networking and communication	$30,000	3
Total	$510,000	10

Following organization structure shows roles of the members those are involved in the project work throughout implementation of new cloud based integrated system in Star Car Rentals.   

Following are the project deliverables which are provided while implementation of new cloud based integration system in Star Car Rental:

1. Project charter:It defines statement of objectives in the project. It provides detailed project goals, roles and responsibilities, stakeholder list, level of authority of the project manager, timeline and project cost.
2. Project management plan:It is an approved document used to manage the project execution work. PMP documents coordinate the planning activities and define the project execution, monitoring, controlling and closing. Each roles and responsibilities of project member is analyzed in this document.
3. Requirement analysis document:This document provides details on success and failure of the system project. The system is described in terms of functional in addition to non-functional requirements. It serves contractual basis among customer as well as developer.
4. Budget analysis report:It is a financial plan for defined period of year. It is included with sales volumes, revenue, cost and expenses, liabilities and cash flows. This report provides cost for networking of system across the project lifespan.
5. Testing and implementation plan:This plan provides details of system features which are required to test, entry and exit criteria. The test cases are written to keep track of the software implemented, and the test analysis report will record results of tests.
6. Risk management plan:It is a document prepared by the project manager to foresee the project risks, estimate its possible impacts and define the responses to project issues. It provides negative and positive effect on the project objectives.
7. Lessons learned report:It provides details of learning gained from process to perform the project work. It provides insights of how project processes are to be improved.

Resource Name	Work
Project Manager	1,664 hrs
Preparation of project proposal	16 hrs
Allocation of requirements among development segments	88 hrs
Apply lessons learned from earlier projects	24 hrs
Review to determine readiness to design phase	120 hrs
Requirement sign off	16 hrs
Sign off the configuration phase	16 hrs
Availability of business requirements	216 hrs
Development of application code	216 hrs
Regression analysis completion	144 hrs
Sign off the user acceptance testing	16 hrs
Sign off the project report	48 hrs
Project review and closure	64 hrs
Final project report submission	8 hrs
Analyze the business requirements	16 hrs
Revalidate the business needs	80 hrs
Identify non-functional requirements	120 hrs
Installation of hardware and software	96 hrs
Staff training	360 hrs
Business Analyst 01	288 hrs
Analyze the business requirements	16 hrs
Identify functional requirements	96 hrs
Support the build process	96 hrs
Software configuration	80 hrs
Business Analyst 02	1,176 hrs
Revalidate the business needs	80 hrs
Identify functional requirements	96 hrs
Identify non-functional requirements	120 hrs
Source code, test scripts	104 hrs
Third party software and hardware	96 hrs
Support the build process	96 hrs
Installation of hardware and software	96 hrs
Unit, integration and system testing completion	128 hrs
Staff training	360 hrs
Testers	1,344 hrs
Source code, test scripts	104 hrs
Third party software and hardware	96 hrs
Development and test documentation	80 hrs
Management of testware and test results	152 hrs
Support the build process	96 hrs
Software configuration	80 hrs
Sign off the configuration phase	16 hrs
Availability of business requirements	216 hrs
Development of application code	216 hrs
Unit, integration and system testing completion	128 hrs
Regression analysis completion	144 hrs
Sign off the user acceptance testing	16 hrs

WBS	Task Name	Duration	Start	Finish	Predecessors	Resource Names
0	Implementation of new cloud based integration system	297 days	Tue 10/9/18	Wed 11/27/19
1	Requirements analysis	60 days	Tue 10/9/18	Mon 12/31/18
1.1	Preparation of project proposal	2 days	Tue 10/9/18	Wed 10/10/18		Project Manager
1.2	Analyze the business requirements	2 days	Thu 10/11/18	Fri 10/12/18	2	Business Analyst 01 ,Project Manager
1.3	Revalidate the business needs	10 days	Mon 10/15/18	Fri 10/26/18	3	Business Analyst 02 ,Project Manager
1.4	Allocation of requirements among development segments	11 days	Mon 10/29/18	Mon 11/12/18	4	Project Manager
1.5	Apply lessons learned from earlier projects	3 days	Tue 11/13/18	Thu 11/15/18	5	Project Manager
1.6	Identify potential product and servce providers	27 days	Fri 11/16/18	Mon 12/24/18
1.6.1	Identify functional requirements	12 days	Fri 11/16/18	Mon 12/3/18	6	Business Analyst 01 ,Business Analyst 02
1.6.2	Identify non-functional requirements	15 days	Tue 12/4/18	Mon 12/24/18	8	Business Analyst 02 ,Project Manager
1.7	Review to determine readiness to design phase	15 days	Fri 11/16/18	Mon 12/31/18	4	Project Manager
1.8	Requirement sign off	2 days	Tue 12/25/18	Wed 12/26/18	9	Project Manager
2	Configuration and testing	90 days	Thu 12/27/18	Wed 5/1/19
2.1	Determine items make software and system	25 days	Thu 12/27/18	Wed 1/30/19
2.1.1	Source code, test scripts	13 days	Thu 12/27/18	Mon 1/14/19	11	Business Analyst 02 ,Testers
2.1.2	Third party software and hardware	12 days	Tue 1/15/19	Wed 1/30/19	14	Business Analyst 02 ,Testers
2.2	Development and test documentation	10 days	Thu 1/31/19	Wed 2/13/19	6,15	Testers
2.3	Management of testware and test results	19 days	Thu 2/14/19	Tue 3/12/19	16	Testers
2.4	Support the build process	12 days	Wed 3/13/19	Thu 3/28/19	17	Business Analyst 01 ,Business Analyst 02 ,Testers
2.5	Installation of hardware and software	12 days	Fri 3/29/19	Mon 4/15/19	18	Business Analyst 02 ,Project Manager
2.6	Software configuration	10 days	Tue 4/16/19	Mon 4/29/19	19	Business Analyst 01 ,Testers
2.7	Sign off the configuration phase	2 days	Tue 4/30/19	Wed 5/1/19	10,20	Project Manager ,Testers
3	User acceptance testing	90 days	Thu 5/2/19	Wed 9/4/19
3.1	Availability of business requirements	27 days	Thu 5/2/19	Fri 6/7/19	21	Project Manager ,Testers
3.2	Development of application code	27 days	Mon 6/10/19	Tue 7/16/19	23	Project Manager ,Testers
3.3	Unit, integration and system testing completion	16 days	Wed 7/17/19	Wed 8/7/19	24	Business Analyst 02 ,Testers
3.4	Regression analysis completion	18 days	Thu 8/8/19	Mon 9/2/19	25	Project Manager ,Testers
3.5	Sign off the user acceptance testing	2 days	Tue 9/3/19	Wed 9/4/19	26	Project Manager ,Testers
4	Implementation including user training	60 days	Thu 9/5/19	Wed 11/27/19
4.1	Staff training	45 days	Thu 9/5/19	Wed 11/6/19	27	Business Analyst 02 ,Project Manager
4.2	Sign off the project report	6 days	Thu 11/7/19	Thu 11/14/19	29	Project Manager
4.3	Project review and closure	8 days	Fri 11/15/19	Tue 11/26/19	30	Project Manager
4.4	Final project report submission	1 day	Wed 11/27/19	Wed 11/27/19	31	Project Manager

Type of risk	Description	Probability	Impact	Risk level	Mitigation actions
Organizational risk	Star car rentals have lose over IT governance as well as control in cloud. The company is not carrying out IT auditing over the cloud. Therefore, the cloud provider is failing to support company to meet with its specific industrial regulations.	Unlikely	Moderate	Medium	The company should be careful when making decisions regarding selection of the cloud vendors.
Operational risk	The cloud provides have not defined Service level agreement among the cloud providers. Therefore, the company has no such capability to meet with established SLA.	Moderate	Moderate	Medium	There should be proper defined service level agreement helps the company to make proper contract between service provider and end user.
Technical risk	Due to various cloud applications, there is data fragmentation as well as data losses. The company has limited control to debug and test application within cloud. Sometimes, there is unauthorized access to the data application.	Likely	Major	High	The company should aware the staffs regarding unauthorized access to confidential information. Two-way password method is used to prevent towards accessing the data from third party access.
Legal risk	The cloud architecture are failed to meet with data privacy as well as protect regulations. Intellectual property issues are raised due to sharing of IT resources over cloud.	Moderate	Major	Medium	The company should implement of strict organizational legal rules so that all confidential data should be kept secured in one place.
Resource risk	The staffs and managers involved in the project are not coordinated and supported to meet with client’s requirements.	Unlikely	Minor	Low	A proper communication plan should be implemented for interaction and coordination purpose. The team members are also encouraged to work effectively for the implementation work.

Quality control 

Plan Quality Management	Quality Assurance	Control Quality
Does the project able to meet with client’s requirements?	Project timeline, budget plan and requirement analysis are ensured if the project meets with its client’s requirements. When the project is delivered on time and the budget is in limit, then the project plan should succeed.	Usage of internal control standards to ensure about quality of timeline and budget.
Does the project work follow each phases?	Each the project phases are followed and a project schedule assures if all the project phases are followed by the project team members.	Monitoring against the project phases.
Does the system testing properly done?	The system is tested using user acceptance testing to assure if the system would run properly. All the test cases are accurately used for system testing.	User acceptance testing is performed.
Does proper training provided to the staffs regarding new cloud based integrated system implementation?	It ensures if the staffs can get proper training regarding use of system.	Staff training program are conducted in this case.
Does the project documented effectively?	Proper system set up is done to document all the project phases and requirements.	Implementation testing is performed.
Does regular update provided to the project manager?	A project management plan ensures that all the project phases are followed and regular updates are provided to finish the work on scheduled time.	Project management plan documents all project work.

Project Name: Implementation of Cloud based Integrated System for Star Car Rentals

Prepared by: Project Manager

Position: Project Manager

Date: 28^th October, 2018

Version No: v1.0

Document Change Control 

The following is the document control for the revisions to this document.

Version Number	Date of Issue	Author(s)	Brief Description of Change
Version 1.0	28th October, 2018	Project Manager	Initial version for review of project plan

Definition 

The following are definitions of terms, abbreviations and acronyms used in this document.

Term	Definition
ARS	Alpha Rental Software
CRM	Customer Relationship Management

Introduction

The main purpose of this communication plan for Star Car Rentals is providing the stakeholders with information related to the project. The plan defines who should provide information, when the information is delivered and what communication channels used to deliver the information is. The plan is policy driven to provide the stakeholders with the information. This document is primarily for the stakeholders, sets out how Star Car Rentals plans to communicate regarding the implementation of new cloud based integrated system in the business processes. It is included with key group of stakeholders those are required to transfer information to other related to project work. The communication plan accomplishes work with support as well as cooperation with each stakeholder groups. The main goal of communication plan is to maintain control of project as well as ensure that the stakeholders can receive required information. Schedule of weekly project meetings keep the participants updated regarding the project progress. 

The main objectives of communication plan are as follows:

• Creating awareness among the project team members about the project requirements
• Creating messages required to maintain public image of the company
• Determining analysis for each media outlet to reach specific target market
• Avoiding confusion which affects morale and business productivity
• Encouraging collaboration in addition to transparency
• Communicating results of process to broader public audiences
• Providing timely information and message related to project 

1. Communication Purpose and Target Audiences

This section provides details regarding the target audiences those are involved in the communication plan along with purpose of communication among the project team members. The below table provides the list of audiences and communication purpose with them.  

Audience	Communication  Purpose
Project Team	Project plan, project update and project issues
Business Analyst	Project specification, business requirements, project deliverables and project direction
Tester	User acceptance testing results and test cases analysis results
Project Sponsor	Project budget and timeline, incorrect project invoices

Communication Message and Delivery

This section provides details on targeted audiences, key messages to the audience, delivery method, frequency for delivery of message and communicator.

Audience	Message	Delivery  Method	Delivery Frequency	Communicator
Project Team	Project plan, Project update Project issues	Business meeting and presentation	Weekly	Project Manager
Business Analyst	Project specification, Business requirements, Project deliverables	Presentation, Email and project report	Weekly	Project Manager
Tester	User acceptance testing results	Business meeting and presentation	Monthly	Project Manager
Project Sponsor	Project budget and timeline	Business meeting and presentation	Weekly	Project Manager

1. Communication Message Contents

This particular section provides details of message contents of key communication which are performed among targeted audiences such as:

• Providing update on project findings and development of proposed system
• Implementation related to next project phases and timeline
• Business case for project consultation
• Changes in the business case
• Executive decisions and project phases
• Current and future project plan for implementation of proposed system
• Project status report, summary and status of schedule and budget
• Goals of the project management plan
• Project issues and mitigation
• Project checklist
• Accomplishment of the project activities

Organization Structure and Work Breakdown Structure

The earned value analysis (EVA) is a method to measure progress of project at given period of time, forecast the completion date, final cost as well as analyze the schedule and budget variance as the project proceeds. It is analyzed by calculating three main elements:

1. Planned value (PV)- It is first element of the earned value management. It is value of work to complete at provided time. It is authorized budget assigned to project work for accomplishment of an activity or component of WBS.

Earned value (PV) = planned % completed work * budget at completion

1. Actual cost (AC)- It is second element of the earned value management. It is total cost incurred for actual work complete to date. It is total cost incurred in accomplishment of work performed for an activity or component of WBS.

Actual cost (AC) = hourly rate* total hours spent

1. Earned value (EV)- It is third element of the earned value management. It is the value of work completed to date. It is the value of work performed in terms of budget assigned to work of an activity or component of WBS.

Earned value (EV) = % completed work * budget at completion  

Budgeted Cost of Work Schedule/Planned Value:
			Project Manager	Business Analyst 1	Tester
Particulars	Cost	Estimated Elapsed Time	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost
Requirements Analysis	$150,000	2	2	$135	$56,160	2	$110	$45,760		$80
Configuration & Testing	$200,000	3	3	$135	$84,240	2	$110	$45,760		$80	$0
User Acceptance Testing	$80,000	3	3	$135	$84,240	1	$110	$22,880	6	$80	$99,840
Implementation including user training	$50,000	2	2	$135	$56,160	4	$110	$91,520		$80	$0
Setup Cost for networking & communication	$30,000		0	$135	$0	0	$110	$0		$80	$0
TOTAL	$510,000	10	10	$135	$280,800	9	$110	$205,920	6	$80	$99,840

Budgeted Cost of Work Performance / Earned Value:
				Project Manager	Business Analyst 1	Tester
Particulars	% of Completion	Cost	Estimated Elapsed Time	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost
Requirements Analysis	100%	$150,000	2	2	$135	$56,160	2	$110	$45,760	0	$80	$0
Configuration & Testing	80%	$160,000	2.4	2.4	$135	$67,392	1.6	$110	$36,608	0	$80	$0
User Acceptance Testing	0%	$0	0	0	$135	$0	0	$110	$0	0	$80	$0
Implementation including user training	0%	$0	0	0	$135	$0	0	$110	$0	0	$80	$0
Setup Cost for networking & communication	80%	$24,000		0	$135	$0	0	$110	$0	0	$80	$0
TOTAL		$334,000	4.4	4.4	$135	$123,552	3.6	$110	$82,368	0	$80	$0

Actual Cost of Work Performance/ Actual Cost:
				Project Manager	Business Analyst 1	Tester
Particulars	% of Completion	Cost	Estimated Elapsed Time	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost
Requirements Analysis	100%	$157,500	2	2	$135	$56,160	2	$110	$45,760	0	$80	$0
Configuration & Testing	80%	$168,000	2	2	$135	$56,160	4	$110	$91,520	0	$80	$0
User Acceptance Testing	0%	$0	0	0	$135	$0	0	$110	$0	0	$80	$0
Implementation including user training	0%	$0	0	0	$135	$0	0	$110	$0	0	$80	$0
Setup Cost for networking & communication	80%	$24,000		0	$135	$0	0	$110	$0	0	$80	$0
TOTAL		$349,500	4	4	$135	$112,320	6	$110	$137,280	0	$80	$0

Estimates at Completion:
				Project Manager	Business Analyst 1	Tester
Particulars	% of Completion	Cost	Estimated Elapsed Time	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost	Estimated Effort	Cost per hour	Labor Cost
Requirements Analysis	0%	$4,500	0	0	$135	$0	0	$110	$0	0	$80	$0
Configuration & Testing	20%	$49,200	1	1	$135	$28,080	2	$110	$45,760	0	$80	$0
User Acceptance Testing	100%	$80,000	3	2	$135	$56,160	1	$110	$22,880	6	$80	$99,840
				1	$140	$29,120
Implementation including user training	100%	$50,000	2	2	$140	$58,240	4	$110	$91,520	0	$80	$0
Setup Cost for networking & communication	20%	$6,000		0	$140	$0	0	$110	$0	0	$80	$0
TOTAL		$189,700	6	6	$140	$171,600	7	$110	$160,160	6	$80	$99,840

In order to estimate Earned value analysis, following terms are used and its respective formulas such as:

1. Cost variance (CV) -It is difference between cost of actual amount and budgeted or planned amount.  It is completed work cost as compared to planned cost. Therefore, it is difference between earned value and actual cost.

CV= EV-AC

When there is positive cost variance, then the project is under budget and when there is negative cost variance, then the project is over budget. 

1. Budget at Completion (BAC)- It is total budget allocated to project work. It is plotted over the project time.

BAC = Baseline Effort-hours * Hourly Rate  

1. Estimate at Completion (EAC) – It is calculated by dividing budget at completion by the cost performance index.

EAC = Budget at completion / cost performance index

Following table shows the earned value analysis for the project work:

Earned Value Analysis:
		Labor Cost
Particulars	Total Cost	Project Manager	Business Analyst	Tester
Actual Cost	$349,500	$112,320	$137,280	$0
Budget at Completion	$510,000	$280,800	$205,920	$99,840
Earned Value	-$334,000	-$123,552	-$82,368	$0
Estimate at Completion	$525,500	$269,568	$260,832	$99,840
Actual Cost	$349,500	$112,320	$137,280	$0
New Estimates	$189,700	$171,600	$160,160	$99,840
New Estimate at Completion	$539,200	$283,920	$297,440	$99,840
Variance	-$13,700	-$14,352	-$36,608	$0

It is analyzed that the cost variance of this project is negative; therefore the project is over budget. There is an increase in cost as compared to actual cost and planned cost.   

Conclusion

It is concluded that the cloud system implementation plan is consisted of various benefits in the business process of company so that there is increase in market share, increase in business productivity. Therefore, the business is benefited due to implementation and received positive project outcome. The project activities are followed of proper schedule to finish the work on scheduled time. After analyzing earned value analysis, it is estimated that there is negative cost variance; therefore the project plan is over budgeted. Communication plan helps the project stakeholders to interact and cooperate with each other to make a successful project plan. Risk management plan determines the project risks which are occurred due to implementation of proposed system in cloud computing environment. Mitigation steps are also taken to make the project risk free so that there is no possibility of project failure within scheduled time as well as budget. Quality is also analyzed for the project to deliver quality products and services to client for meeting with the business requirements. 

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