Mdcm Inc Company Case Study B

Running Head: MDCM Inc. Company case study (B)

Name:

University:

Course:

Date:

Abstract:

Information technology are evaluated using a score card which will be used to establish a portfolio Application Model Matrix which will be used in comparing the projects, some of the proposed infrastructure projects for MDSCM include standard computing hardware and software, website and data warehousing. The website is the project with the highest likelihood to succeed and also will add value to the business.

Introduction:

The following is a summary of the information technology projects appropriate for the MDCM Company, IT infrastructure required include networking, standard computing hardware and software, data warehousing, messaging system and a website. A score card is also established in order evaluate each project and these scores are represented in a Portfolio Application Model

1/21

1 MDCM Inc. Company case study (B)

Matrix.

IT infrastructure:

Networking:

This project involves the use of internet and networking resources available to enable the sharing of information across the subsidiaries and also within the subsidiaries, networking will improve quality of products given that it will enable sharing of information with the various departments and subsidiaries and therefore add value to products.

Computing hardware and software:

According to the case study the company different hardware platform systems including AIX, UNIX, Windows NT, windows 2000, adoption of a standardized operating system will help reduce both support costs and maintenance costs. This will enable the company gain competitive advantage.

Further investment in computer hardware and software will also be required whereby different computing hardware will be used depending on the application of the users; however hardware that runs many varieties of operating systems is more appropriate. Existing hardware will also be used and additional hardware purchased to upgrade based on the needs of users, a standard operating software example Microsoft windows will be adopted in order to enable networking and communication in the organization.

2/21

1 MDCM Inc. Company case study (B)

Data warehouse:

Storage of data is an important procedure and a standardized data base should be established, a networked storage system should also be established in order to enable ease retrieval and storage of data. Storage of information will aid in decision making and also adoption of software that aid in decision making will help the company gain competitive advantage.

Messaging system:

A standard messaging system should be established such as POP3 and this is appropriate given that subsidiaries use outdated and differentiated messaging systems. The messaging system will help improve communication within the organization and with customers and suppliers. Employees and this will improve efficiency of consumer service delivery.

Website:

A website is also appropriate in that it will add value to the products, enquiries and orders can be placed online and this will reduce transaction costs, the website should also include a list of products available and also should contain more information about the company. This website will encourage consumer self service where consumers can visit the website, order products and pay online.

Score card to evaluate each project

Kraft established a score card to evaluate information technology projects, this include evaluating projects in terms of their likelihood to succeed and value to the business, value to the

3/21

1 MDCM Inc. Company case study (B)

business projects are characterized by an increase in financial returns, projects that encourage customer focus, value added through an established supply chain, increased technological efficiency, knowledge advantage and work balance.

Likelihood to succeed is determined by the following characteristics and they include existing technical standards, capacity and training in the organization, complexity of the project, business alignment, and risk and management capability of the project. The following is the balanced score card by Kraft:

Likelihood of success criteria and weights:

Technical standards: 10%

Skills, capability and training: 10%

Scope and complexity: 25%

Business alignment: 22%

Risk: 21%

Management capability: 12%

4/21

1 MDCM Inc. Company case study (B)

Value to the business:

Financial return: 30%

Customer and consumer focus: 20%

Supply chain business benefits: 15%

Technology efficiency: 15%

Knowledge advantage: 10%

Work/life balance: 10%

(Marchewka, 2006)

Networking:

Computing hardware  and software

5/21

1 MDCM Inc. Company case study (B)

Data warehouse

Messaging system

Website

Likelihood of  success criteria:

Technical standards:

8%

6/21

1 MDCM Inc. Company case study (B)

8%

7%

8%

10%

Skills, capability  and training:

5%

5%

8%

5%

4%

Scope and  complexity:

7/21

1 MDCM Inc. Company case study (B)

20%

20%

15%

20%

24%

Business alignment:

22%

20%

18%

20%

22%

8/21

1 MDCM Inc. Company case study (B)

Risk :

10%

10%

15%

7%

5%

Management  capability:

10%

5%

2%

2%

5%

9/21

1 MDCM Inc. Company case study (B)

total

75%

68%

65%

62%

70%

Value to the  business:

10/21

1 MDCM Inc. Company case study (B)

Financial return:

10%

12%

2%

20%

28%

Customer and  consumer focus:

10%

15%

18%

11/21

1 MDCM Inc. Company case study (B)

15%

18%

Supply chain  business benefits:

15%

15%

15%

14%

14%

Technology  efficiency:

15%

15%

12/21

1 MDCM Inc. Company case study (B)

15%

15%

15%

Knowledge advantage:

8%

8%

9%

9%

8%

Work/life balance:

0%

13/21

1 MDCM Inc. Company case study (B)

0%

1%

2%

2%

total

58%

65%

60%

75%

85%

14/21

1 MDCM Inc. Company case study (B)

The above table summarizes the scores for each project, using the above figures the next step is to place each project in the portfolio application model matrix, the figures are summarized as follows:

A

B

C

D

E

Networking:

15/21

1 MDCM Inc. Company case study (B)

Computing hardware  and software

Data warehouse

Messaging system

Website:

Likelihood of  success criteria:

75%

68%

65%

62%

70%

Value to the  business:

16/21

1 MDCM Inc. Company case study (B)

58%

65%

60%

75%

85%

Portfolio Application Model Matrix:

17/21

1 MDCM Inc. Company case study (B)

100

50

0

Value to the business

18/21

1 MDCM Inc. Company case study (B)

50                                                                                     100

19/21

1 MDCM Inc. Company case study (B)

The above diagram shows the likelihood of success and value to the business for the 5 projects, it is evident that the website project has the highest value that will add value to the business and this is because it will lead to an increase in financial returns by attracting more consumers, improve the supply chain and also encourage consumer focus. Networking project on the hand has the lowest percentage in terms of adding value to the business, this is explained by the fact that it does not increase financial returns and also does not lead to work life balance.

Networking has the highest possibility of success given that it is less complex, there exist technical standards, aligns with business standards and also lower risk associated with networking. The messaging system has the lowest likelihood to succeed given that employees need to be trained, low management compatibility and higher security risks.

Conclusion:

The above analysis show the likelihood to succeed for the five projects and also the value that each project adds to the business, the best project is the website project given that it adds value to the business and also has a high like hood of success. Data warehousing is the project that has low values of likelihood of success and also less value added to the business.

20/21

1 MDCM Inc. Company case study (B)

References:

December, from http://harvardbusiness.org/product/mdcm-inc-b-strategic-it-portfolio-managem ent/an/KEL172-PDF-ENG

Jack Marchewka (2006) Information technology project management, Prentice hall press, New Jersey.

21/21