Scope of Work - University of Baltimore



Executive Report

To: Sam, Lisa, and Lee

Green_Delivery_

Baltimore, Maryland

From: The “A” Team

Date: July 14, 2010

Dear Sam, Lisa, and Lee:

Thank you for the opportunity to assist in the plan and design of a “green” system for Green_Delivery_, an ecommerce delivery service for busy and special needs consumers. Enclosed you will find an outline encompassing the scope of the project, the base line plan, costs and benefits, critical success factors, as well as a WBS (Work Breakdown Structure) of the project. We have also included CPM and a Gantt chart.

The scope of this project will include designing and implementing an ecommerce website. It will require the hiring of several key employees critical to getting the project up and running.

We assess that the project will take longer than anticipated and will take approximately six months and the schedule should be followed, ensuring that the scope of the project is not expanded beyond its original intention. We have stayed within your estimated budget of $500,000. We have developed a budget that will include the cost of human resources required on the project, information systems required, both hardware and software, and work space. There are many specific, inherent risks associated with information systems projects but with proper management, they can be minimized. We have broken down the risk factors by project size, project structure, and experience with technology. Also included are some ways in which risk can be managed in order to ensure a profitable, sustainable ecommerce venture. Our recommendations only pertain to the first phase of the project. Should you decide to expand in 2012 to offering delivery in Virginia and Delaware, we would be happy at the opportunity to consult for you on this second phase.

Finally, we have included some recommendations to ensure a successful project and ecommerce business. Again, thank you for the opportunity to assist you.

1. Scope

To develop a “green” e-commerce delivery service for busy and “special needs” consumers. This business will be developed in 2 phases. The first phase will contain referrals only for food, medical appointments and transportation and will take one month to complete from start to finish.

A. Product Description

a. Website Includes

i. Links to food delivery services

ii. Links to emergency doctor’s appointments

iii. Links to ride services to airports, friend’s home, regular appt., etc.

b. Does not Include

i. Actual food deliveries

ii. Actual setting of appointments

iii. Actual rides

B. Deliverables

a. Real-time payment processing

b. “Green” Software package

c. Domain Name: GreenDeliveryrus (no spaces)

d. Webhosting

e. Internet Merchant Bank Account

f. Digital Certificate (SSL Server Certificate)

g. Shopping Cart Software

h. Event Notification Software (Clickstream Tracking)

i. Counter and sales tracking software

j. “Green” Hardware

C. Assumptions

a. Working in an office environment

b. New business will be a full-time job for stakeholders

D. Phase II Expansion Project

This phase will begin in 2012 and will expand to Virginia and Delaware areas. At this time, actual delivery of services on website will be implemented. Exact project for expansion will be based upon data mining of customer trends.

2. Base Line Plan (See attached MS Project File)

3. Critical Success Factors

From our three meetings with the three stakeholders, we have gleaned the following most critical CSF’s:

✓ Fast

✓ Easy Navigation/User-friendly

✓ Prompt customer service if problems arise

✓ 24/7 access and assistance

✓ Attractive website

✓ Email Notification when payment is made

✓ Secure customer information

✓ Reliable referral websites (, , etc.)

4. Resource Requirement

Costs: $467,098.34

Personnel: $231,446

• Network Engineer @ $54,441 annually from

• Web Designer @ $50,725 annually from

• Project Manager @ $82,000 annually from

• Analyst @ $43,951 annually from

Marketing cost @ $2,400 per year

Web Design: $51,450.79

• GreenDeliveryrus domain name @ $9.99 annually

• Internet Merchant Bank Account @ 14% of sales

o

• Digital Certificate @ $125

o

• “Green” Web Hosting @ $3.95 per month

o

• Payflow Pro (includes shopping cart software) through @ $249 start-up, $59.95 monthly & $0.10 per transaction after 1000 transactions

o

New computer equipment: $5220.70

• 5 Dell Optiplex 160 “green” PCs with supporting software w/ 3 year warranty and support @ $874 each (including plant a tree option for each computer)

o

• 1 Dell wireless all-in-one printer/fax/copier @ $350 (same link as above)

• Cisco Wireless G Access Point PoE w/RangeBooster WAP200 @ $129

o

• Comcast Internet @ $19.00 first 6 months, $42.95 thereafter

o

Office: $176,580.85

• AT&T Phone Service @ $57.50 per month

o

• Gas/Electric @ $1890.85 annually

o

• Grade B Office furniture @ $30,000

o

• Rent of Office Space 1000 sq. ft. @ $12 per sq. foot; $144,000 annually

o showcase.

Benefits: The PCs follow “sustainability” requirements. With an in-house Web Designer, a “green” software system can be developed while using a “green” web hosting service for the “go live.” The remaining budget can be used as salary for stakeholders so that this business will become a full-time occupation immediately.

Sales: $109,500

Monthly subscriptions

• $6.95 per month, estimated Year 1 revenue: $69,500

Annual Subscriptions

• $40.00 per month, estimated Year 1 revenue: $40,000

Benefit: Having a subscription service will allow for easy revenue tracking. With the expansion of the website more options can be put in at a later time. The cost of Peapod Grocery delivery service ranges from $6.95-$9.95 and Safeway ranges from $6.95-$12.95. Since this website will not include actual delivery service, and we estimate delivery service needs on a weekly basis, we calculated a monthly fee of $6.95.

Cost/Benefit Analysis

Tangible

Reduced communication expenses: The acceleration of ’s businesses processes and reduction of administrative tasks online will result in a decrease of expenses.

Personnel Reduction: operational benefits include reducing both the time and personnel required to complete business processes, and reducing strain on other resources. 

Cycle Time Improvement (CTI): Cycle Time is the amount of time between a customer placing an order and receiving the service. CTI will be achieved through improved processes and the application of proven techniques and tools. E commerce will allow Green_Delivery_ to do business without the barriers of time or distance. One can access the Internet at any time, day or night and order delivery services with a single click of the mouse.

Reduced direct cost of sale: the direct cost-of-sale for an order taken from a website is lower than through traditional means (retail, paper-based), as there is no human dealings during the online electronic purchase order process.

Cash Flow Improvements: the Internet has the potential to expand ’s business into wider geographical locations. Using the Web to sell ’s services removes the physical boundaries from its customer base. Customers from all over the world can learn about the company and order services online. However, it is necessary to develop the appropriate supply chain channels to support market demands generated by promoting to a larger marketplace.

Intangible

Improved Customer Satisfaction: Improve customer service through online customer databases such as CRM. Also, automation of customer orders will enable to respond quickly to a customer’s request. Also, customer satisfaction is measured through customer surveys.

Improved Supply Chain Operations: an effective supply chain management system will shorten the delivery lead times, and customer inquiries on order status can be answered immediately.

Cost/Benefit Analysis

An economic feasibility analysis was conducted to determine the time period that will elapse before the cumulative cost savings will equal the incremental capital cost of implementing . It was determined that the number of years required for the project to pay for itself is 1.7 years, yielding a 58 percent simple return on investment. This is relatively a short period of time to break-even considering the type of market is in. Based on this analysis, it is, therefore, feasible for the project to proceed within cost constraints.

5. WBS (See Attached Excel File)

6. CPM, project schedule, Gantt chart (See Attached MS Project File)

go to Project and click VIEW option

A. Click Gantt to view Gantt chart

B. Click network to see CPM (red color)

7. Risk Assessment

a. Project Size: Due to the small size of this project, with only 5 personnel, the level of risk for a late completion is relatively low; however with a smaller company, certain areas of expertise may be missed and certain aspects of the project may be overlooked.

b. Project Structure: This risk is a little higher because the website will be brand new and the stakeholders are new to the ecommerce environment. Instructions are clear now, but with the expansion in 2012 of the website, many changes may be desired. A list of documentation that summarizes best practices for the project is crucial, emphasizing quality, not quantity.

c. Technology Experience: With an in-house network engineer and web designer, the project will have the level of expertise needed to build a profitable website. The only area of risk is with the lack of marketing/advertising expertise within the 5 employees. In order for this site to succeed, we believe extensive research on similar companies, advertising sources, search engine “keywords”, etc. needs to be done.

d. Dead links: One of the problem of e-commerce is dead links. These are businesses that no longer exist. Risk is quite high in this economy since restaurants failure rate is very high. If not addressed this could lead to customer dissatisfaction.

e. Project viability: given the intense competition, it is possible any misstep amy result in disaster or even bankruptcy. risk is quite high for such an event happening since we are already behind the competition.

Risk Factors

System requirements:

• Poorly understood requirements at scheduling time

• Customer changes requirements

• Unexpected growth or decline for orders through site

• Scope creep

• Scope gap

• Integration defect(change due to unexpected behavior)

• Competitor websites





Controlling Risk

The key to controlling risk is to be sure the variables in the scope are clearly defined from the inception of the project. It is also essential to define the WBS so that is easily understood by all employees responsible for the project. Clear communication and frequent meetings (2-3 times per week) will guarantee that any issues are promptly addressed. Communication is vital to the success of the project.

The Project Manager needs to apply the plan, lead the team, and monitor the project status to make sure any unforeseen variations do not hamper the scope or progress.

Contingency plans should be in place for all risk factors. The Project Manager should include a list of “what ifs” for scope, resources, and scheduling.

Because a web designer and network engineer are being hired, the risk of technology inexperience is low. It is recommended that web designer should periodically check the links to mitigate problem related to dead links. It is recommended that partners follow consultant’s advise carefully to avoid failure and bankruptcy.



Recommendations

• We recommend that Sam, Lisa and Lee hire a marketing team with some of their remaining budget. Developing a strong marketing and advertising campaign for their website is essential for them to be successful. An individual marketing specialist could also be hired as a full-time employee at a $50,880 salary through .

• We recommend starting off the company with a free trial service for potential customers. Similar to Netflix, the customer could have 2 weeks to try out the service and see if it is something they want to continue. After that, they have an option to sign up for monthly payments or a discounted annual payment.

• We recommend submitting the site to as many search engines as possible, utilizing sites that have similar themes and a reciprocal link.

• Create an advertising banner and purchase space from a popular

website to display it.

• Word of mouth is very powerful on the Net; tell all of your friends and utilize social networking sites such as Facebook, twitter etc.

• Make sure the URL is on all business correspondence, including emails

• Furthermore, we recommend a free month of access to our web service for referring a friend who signs up for an annual subscription.



8. System Development Methodology:

Since this is an e-commerce, it should and can not wait too long to develop as competition is already ahead of us. It is recommended to use prototyping approach with RAD methodology using web development tools to expedite web site design and operations. All or some steps shown in WBS maybe repeated in each prototype iteration.

9. see below ( a simplistic version for the order system including future delivery)

(Modified previous submission)

Green__’s ORDER SYSTEM

[pic]

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CREDIT AGENCY

orders food/order ride, appointment

statistical report

Order System

MANAGER

resubmit payment /approved/denied returned

food delivered (future)/confirmation of ride and/or appointment

Account verification

Pays using paypal, credit card etc.

Contract

Payment approved/denied

Customer

Account verified

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