This business case example explores the merits of a new web-based system that is meant to spur efficiency in Mowls Engineers Limited. The company deals with civil construction works, but its recent performance has been marred by losses and multiple inefficiencies in the procurement department.
1. Executive Summary
This business case provides an outline on how the new web design will spur efficiency in the procurement processes and the coordination of tasks in Mowls Engineers Limited. The case provides the merits of the project, its justification, and recommendations for improvement. Also, the project goals, assumptions, alternatives, and performance measures are discussed in this case. A section of the case shall be devoted to the discussion of some of the constraints of the project.
In the financial year ending 2016, gross inefficiencies were reported in the procurement department where multiple inaccuracies were entered in the books of accounts. Some of the estimates were misrepresented while other figures were missing in the books. The discrepancies resulted in losses amounting to $3 million. Poor accounting policies and an inefficient data management system were mentioned as the main causes of the problem. Experts recommended that the company should adopt an advanced web design system to enable the management of tasks from a single platform.
1.2 Anticipated Outcomes
Changing from the old model of operation to the new model will enhance the efficiency of the organization’s procurement processes. The objective is to enhance orderly management of information and reduce the various accounting errors that typify the old system. The general idea is to enhance visibility across the supply chain and eliminate the inaccuracies of the accounting system within the procurement processes.
The new web-based platform shall be deployed towards the enhancement of data integrity in the core areas of the procurement process. The organization should adopt the new technology in phases to reduce the disruption that may result from the replacement of the old system with the new one. A separate training program should precede the launch of the new program to enhance the workers’ proficiency with the operational details of the new system.
Changing from the current system to the web-based platform shall enhance the harmony of processes and improve the technical efficiency of the procurement processes. The strategists expect a 65% increase in efficiency in the first sixth months and a total elimination of accounting flaws by the end of the financial year. The efficiency levels shall shore up the company’s profit margin by more than 70% within the first quarter of the fiscal period.
1.5 Organizational Impact
The impact of the project shall be felt at the levels of the processes, tools, and roles. With regard to processes, the new procurement system shall improve the organization of information and assist procurement managers in decision-making processes. It is expected that the new platform shall expedite the communication processes among departments and raise the levels of accuracy in the information supplied to the chief procurement officer.
1.6 Alternative Analysis
The following chart shows three alternatives that were suggested as possible alternatives to the preferred web-based system.
|Maintaining the Status Quo||Reasons for Non-Selection|
|Working with the old system||● The system is highly inefficient.
● The model is impossible to improve.
● Costly maintenance.
|Alternative Option 1||Reasons for Non-Selection|
|Outsourcing the web-based services.||● The option is relatively more expensive.
● High risk of operational flaws.
|Alternative Option 2||Reasons for Non-Selection|
|Develop the solution internally||● Lack of sufficient expertise
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