The paper mainly focuses on the “development of cloud based ERP system” for Kamdar, which is one of the retail stores of Malaysia that is mainly known for its extensive range and quality of garments as well as textile products (Kamdar, 2018). The organization utilizes ERP system for managing as well as handling its business operations however it is identified that the organization is facing difficulty in sharing its internal information with other stores, which generally minimizes the efficiency of the system they are using. In order to resolve this issue, the higher authority of Kamdar wants to develop cloud based ERP system so that the organization can easily share information with other stores of Kamdar.
Kamdar, which is one of the leading distributors of textile as well as various furnishing products, faces difficulty in sharing information between various stores. In addition to this, the information as well as data related with the stores cannot be accessed outside the store and as result the workers of the organization faces number of challenges due to lower availability of data and information (Dwivedi & Sharma, 2016). Thus, the organization requires a system with which they can easily share information within stores and can be access information irrespective of their location. Therefore, the higher authority of the organization wants to develop its ERP system to cloud in order to resolve the challenges that are associated with the organization (Khot et al., 2017).
The cloud ERP system that is required to be developed within the organization helps in resolving the issues and challenges that Kamdar faces. It is identified that due to the development of cloud based ERP, the organization will be able to share information between different stores and the workers of the organization will be able to accesses the information at any place whenever needed. In addition to this, cloud based ERP system helps in enhancing security, as well as scalability of the system by minimizing the need of resources (Soder & Johansson, 2017).
The scope of the project is provided below:
The objectives of the project are as follows:
The deliverables of the project include:
|
Task Name |
Duration |
Start |
Finish |
|
Development of Cloud based ERP system in Kamdar |
41 days |
Wed 18-04-18 |
Wed 13-06-18 |
|
Initiation phase |
14 days |
Wed 18-04-18 |
Mon 07-05-18 |
|
Development of business case |
4 days |
Wed 18-04-18 |
Mon 23-04-18 |
|
Feasibility study |
4 days |
Tue 24-04-18 |
Fri 27-04-18 |
|
Project charter establishment |
5 days |
Tue 24-04-18 |
Mon 30-04-18 |
|
Appointing project team members |
6 days |
Mon 30-04-18 |
Mon 07-05-18 |
|
Milestone 1:Initiation phase completion |
0 days |
Fri 27-04-18 |
Fri 27-04-18 |
|
Planning phase |
13 days |
Mon 30-04-18 |
Wed 16-05-18 |
|
Development of project plan |
5 days |
Tue 01-05-18 |
Mon 07-05-18 |
|
Creating project resource plan |
7 days |
Tue 01-05-18 |
Wed 09-05-18 |
|
development of financial plan |
6 days |
Tue 08-05-18 |
Tue 15-05-18 |
|
Development of quality plan |
5 days |
Tue 08-05-18 |
Mon 14-05-18 |
|
Development of risk management plan |
7 days |
Mon 30-04-18 |
Tue 08-05-18 |
|
Creating project acceptance planning |
6 days |
Mon 30-04-18 |
Mon 07-05-18 |
|
Development of communication plan |
5 days |
Tue 08-05-18 |
Mon 14-05-18 |
|
creating project procurement plan |
7 days |
Tue 08-05-18 |
Wed 16-05-18 |
|
Milestone 2: Planning phase completion |
0 days |
Mon 07-05-18 |
Mon 07-05-18 |
|
Execution phase |
24 days |
Tue 08-05-18 |
Fri 08-06-18 |
|
Analyzing needs of the business |
15 days |
Thu 10-05-18 |
Wed 30-05-18 |
|
Selection of cloud based ERP system |
12 days |
Wed 16-05-18 |
Thu 31-05-18 |
|
Customization of work |
15 days |
Tue 15-05-18 |
Mon 04-06-18 |
|
Migration of data |
16 days |
Wed 09-05-18 |
Wed 30-05-18 |
|
Checking infrastructure |
17 days |
Wed 09-05-18 |
Thu 31-05-18 |
|
Customization of work |
19 days |
Tue 08-05-18 |
Fri 01-06-18 |
|
Change management |
18 days |
Tue 08-05-18 |
Thu 31-05-18 |
|
Deployment in cloud |
17 days |
Tue 15-05-18 |
Wed 06-06-18 |
|
Testing project |
15 days |
Tue 15-05-18 |
Mon 04-06-18 |
|
System integration testing |
16 days |
Thu 17-05-18 |
Thu 07-06-18 |
|
User acceptance testing |
17 days |
Thu 17-05-18 |
Fri 08-06-18 |
|
Milestone 3:Closure of execution phase |
0 days |
Wed 16-05-18 |
Wed 16-05-18 |
|
Closing phase |
27 days |
Tue 08-05-18 |
Wed 13-06-18 |
|
Post project review |
3 days |
Tue 08-05-18 |
Thu 10-05-18 |
|
Stakeholder sign off |
3 days |
Mon 11-06-18 |
Wed 13-06-18 |
|
Post go-live support |
3 days |
Thu 31-05-18 |
Mon 04-06-18 |
|
Milestone 4:Closure phase completion |
0 days |
Wed 30-05-18 |
Wed 30-05-18 |
The success criteria of the project are as follows:
Meets budget: If the development of cloud based ERP system is finished within the budget $179,440 then it is assumed that the project is successful.
Meets timescale: If the entire project of cloud based ERP development is executed within 41 days then the project is considered successful.
Meeting client requirements: If the development of cloud based ERP system assists in resolving the issues as well as challenges of the organization and helps in meeting the needs of the organization then the project is found to be successful.
Achieves purpose: If the system is able to successfully share information within different stress of the organization then the project is considered successful.
The project constraints are provided below:
Budget: It is very much important to successfully finish the development of cloud based ERP within $179,440
Scope: The development project must follow the scope of the project for finishing the project within the expected due date.
Time: It is required to develop the cloud based ERP system within Kamdar within 41 days.
According to Martinelli and Milosevic (2016), risk assessment is defined as a term that is utilized for elaborating the procedure or method where the risk factors as well as hazards are identified that generally have potential to cause harm. It is identified that risk assessment are generally conducted in order to create awareness about the risks and for identifying the risks so that the risks can be easily mitigated. It is found that risk assessment is mainly undertaken within the project by using five steps that are elaborated below:
Identification of hazards: In this step, the risks as well as hazards that are associated with the project are generally identified (Marcelino-Sadaba et al., 2014).
Deciding who are harmed: after the identification of risks, proper analysis is done in order to determine who will be harmed by the risk.
Assessing risk: In the third step, the risks that are associated with the project are assessed in order to take precaution for resolving them (Bowers & Khorakian, 2014).
Making records: In this step, the main findings of the risks are assessed for reducing or eliminating the risks.
Reviewing risk assessment: the risk assessment is generally kept under review for ensuring that agreed working practices is continuously used for avoiding project related risks (Bondarczuk, Markowicz & Piotrowska-Seget, 2016).
The risk assessment for the project is provided below:
|
Risk |
Description |
Impact |
Probability |
Mitigation measures |
|
Budget shortfall |
If the resources of the project are not utilized properly then due to inappropriate uses of project resources number of budget related problems occurs. |
High |
High |
It is quite significant to track the utilization of resources in order avoid misuse of project resources for saving project budget. |
|
Schedule slippage |
If the project is not properly tracked then the schedule slippage problem can occur which leads to delay in project completion. |
High |
High |
The schedule of the project must be tracked for ensuring that no delay will occur within the project. |
|
Improper management |
If the project is not handled appropriately then number of issues occurs during the progress of the project. Then it became one of the difficult task to finish the project within due date. |
Medium |
Medium |
The project must be managed or handled properly so that it can get finished within the expected deadline. |
|
Inappropriate project testing |
If testing is not undertaken properly within, the project then the project can face number of technical issues later. |
High |
Medium |
It is necessary to undertake the testing within the project as a priority to avoid technical issue. |
Stakeholders of the project
|
Stakeholder |
Roles in the project |
|
Project manager |
The project manager is the person who takes the responsibility of initiating, developing, planning as well as closing the project for finishing the development of cloud based ERP within the expected due date (Xin, Ho, & Shen, 2016). |
|
Project planner |
The project planners are those who engages in planning about the various needs as well as requirements of the project including materials, financial or human resources. |
|
Database manager |
The database managers are those who work on in-house for developing, maintaining as well as managing range of databases (Eskerod, Huemann & Savage, 2015). |
|
Supervisor |
They are generally responsible for managing the responsibilities, powers as well as roles and their main role is to control the work that is associated with the development of cloud based ERP system. |
|
Human resource manager |
They are generally involved with training as well as recruitment of the project team members who are mainly associated with the project (Kerzner & Kerzner, 2017). |
|
Risk analyst |
They are the person who mainly helps in formalizing the process of risk management within the organization. They also make appropriate decisions for mitigating the risks that are related with the project. |
|
Financial manager |
They are generally responsible of producing proper financial reports that are associated within the budget of the project (Wei, Fu & Wei, 2016). |
|
Tester |
They generally conducts testing for analyzing the working of the developed system. |
|
Technical engineer |
They generally engage in developing the cloud based ERP system within the organization. |
Initial communication requirements
|
Type |
Objective |
Medium |
Frequency |
Audience |
Owner |
|
During project kick off |
The kick off meeting is arranged for giving proper details about the project to the team members of the project |
Face to face |
Once |
Project team members |
Project managers |
|
Team meetings |
The team meetings are arranged in order to discuss about the issues as well as risks that are related with the project |
Face to face Conference |
Whenever needed |
Team members |
Risk analyst |
|
Monthly meetings |
Monthly meetings are arranged for ensuring the project is going on the right track or not. |
Face to face, Conference |
Monthly |
Team leaders |
Project managers |
|
Project status reports |
This type of meetings are arranged for getting information about status of the project |
Face to face, Conference |
weekly |
Team leaders |
Project managers |
One of the most significant parts of the project planning procedure is the financial analysis. The main goal of the project is to analyze the budget of the project with appropriate accuracy for making sure that whether the project is profitable for the organization or not. Financial analysis helps in evaluating the project profitability as well as liquidity (Gabbett, Windt & Gabbett, 2016). The financial analysis must be undertaken properly within the project with appropriate quality and accuracy for ensuring that the project is profitable. In order to undertake financial analysis, it is quite important to identify industry economic characteristics, company strategies, quality of firm, analyzing current profitability as well as by preparing for the forecasted financial statements (Torriti, & Ikpe, 2014). The financial analysis that is undertaken for tis project suggests that the project is feasible.
|
Cost benefit for development of cloud based ERP system |
||
|
Hardware |
$ 50,000.00 |
|
|
Software |
$ 40,000.00 |
|
|
Development team salaries |
$ 1,00,400.00 |
|
|
Training |
$ 10,000.00 |
|
|
Total Development Cost |
$ 2,00,400.00 |
|
|
Maintenance |
$ 6,000.00 |
|
|
Changes |
$ 3,000.00 |
|
|
Operational Labour |
$ 79,000.00 |
|
|
Total Operational Cost |
$ 88,000.00 |
|
|
Approximate salary savings |
$ 74,000.00 |
|
|
Reduced resource cost |
$ 90,000.00 |
|
|
Total Benefit |
$ 1,64,000.00 |
|
|
Discount Rate Used |
0.00% |
|
|
Project Cost-Benefit Analysis |
||||||||
|
Analysis Variables: |
||||||||
|
Discount Rate Used |
0.00% |
|||||||
|
Annual Benefits |
$ 1,64,000.00 |
|||||||
|
Annual Operational Costs |
$ 88,000.00 |
|||||||
|
One-Time Development Cost |
$ 2,00,400.00 |
|||||||
|
Year of Project |
||||||||
|
0 |
1 |
2 |
3 |
4 |
5 |
TOTALS |
||
|
Economic Benefit |
$0.00 |
$ 1,64,000.00 |
$ 1,64,000.00 |
$ 1,64,000.00 |
$ 1,64,000.00 |
$ 1,64,000.00 |
||
|
Discount Rate |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
||
|
PV of Benefits |
$0.00 |
$1,64,000.00 |
$1,64,000.00 |
$1,64,000.00 |
$1,64,000.00 |
$1,64,000.00 |
||
|
NPV of all BENEFITS |
$0.00 |
$ 1,64,000.00 |
$ 3,28,000.00 |
$ 4,92,000.00 |
$ 6,56,000.00 |
$ 8,20,000.00 |
$ 8,20,000.00 |
|
|
One-Time COSTS |
$ (2,00,400.00) |
|||||||
|
Recurring Costs |
$0.00 |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
||
|
Discount Rate |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
1.0000 |
||
|
PV of Recurring Costs |
$0.00 |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
$ (88,000.00) |
||
|
NPV of all COSTS |
$ (2,00,400.00) |
$ (2,88,400.00) |
$ (3,76,400.00) |
$ (4,64,400.00) |
$ (5,52,400.00) |
$ (6,40,400.00) |
$ (6,40,400.00) |
|
|
Overall NPV |
$ 1,79,600.00 |
|||||||
|
Overall ROI |
||||||||
|
0.2804 |
References
About Us – Kamdar. (2018). Kamdar. Retrieved 18 April 2018, from https://www.kamdar.com.my/about-us/
Boardman, A. E., Greenberg, D. H., Vining, A. R., & Weimer, D. L. (2017). Cost-benefit analysis: concepts and practice. Cambridge University Press.
Bondarczuk, K., Markowicz, A., & Piotrowska-Seget, Z. (2016). The urgent need for risk assessment on the antibiotic resistance spread via sewage sludge land application. Environment international, 87, 49-55.
Bowers, J., & Khorakian, A. (2014). Integrating risk management in the innovation project. European Journal of innovation management, 17(1), 25-40.
Dwivedi, K., & Sharma, M. (2016). Virtual Investigation of Grouping of on Premise and Cloud ERP. International Journal of Research and Development in Applied Science and Engineering, 9(1).
Eskerod, P., Huemann, M., & Savage, G. (2015). Project stakeholder management—past and present. Project Management Journal, 46(6), 6-14.
Gabbett, H. T., Windt, J., & Gabbett, T. J. (2016). Cost-benefit analysis underlies training decisions in elite sport.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Khot, N., Mudur, K., Thorat, O., & Doulatramani, Y. (2017). Information Intendance System on Cloud.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project risk management methodology for small firms. International journal of project management, 32(2), 327-340.
Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.
Soder, M., & Johansson, H. (2017). Cloud Based System Integration: System Integration between Salesforce. com and Web-based ERP System using Apache Camel.
Torriti, J., & Ikpe, E. (2014). Cost–Benefit Analysis. In Encyclopedia of Law and Economics (pp. 1-8). Springer New York.
Wei, C. C., Fu, C. C., & Wei, C. S. (2016). Satisfaction maximizing model for managing project stakeholders. Research journal of Business and Management, 3(4), 314-322.
Xin, L., Ho, M. F., & Shen, Q. P. (2016). Implementing Social Responsibility in Construction Project: An Empirical Investigation on Stakeholders’ Interest and Power. Building up business operations and their logic Shaping materials and technologies, 3, 8
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