Question

In: Operations Management

Goal: Your task is to prepare a business case for a new information system as described...

Goal: Your task is to prepare a business case for a new information system as described below.

A company that handles deliveries for other companies and individuals (you can use Yurtici or Aras Kargo as examples) considers to implement a new system for managing their trucks. Currently, the drivers get a fixed order of destinations, deliver the packages and get a signature on a paper slip. They hand in the slips in the evening to their manager. The manager checks against the orders, and approves that deliveries have been made. With the new system, the drivers have a hand-held device connected to traffic information, and an information system that changes the route dynamically to avoid traffic jams. Also the customers sign with a pen on the hand-held device, if a signature has been done, the delivery is marked as completed automatically.

You should try to identify all possible factors both for benefits and costs. In the business case, describe all of them, and try to quantify them, detailing how this quantification could have happened (actual numbers can be guessed at or made up, like for example hardware costs). Based on this quantification, aggregate the results for costs and benefits over an adequate time interval and give an overall assessment and recommendation. You can also include intangible benefits and strategic considerations in your final recommendation.

You will need to both create a professional proposal

Solutions

Expert Solution

Identifying cost and advantages:-

The fundamental groupings that expenses and advantages fall into are immediate/circuitous, substantial/elusive, and genuine:

  • Direct expenses are routinely associated with the production of a cost object (thing, organization, customer, undertaking, or development)
  • Circuitous expenses are regularly fixed in nature and may start from the overhead of an office or cost center
  • Unmistakable expenses are definitely not hard to measure and assess and are commonly related to a conspicuous source or asset, like account, rent, and purchasing instruments
  • Impalpable expenses are difficult to perceive and measure, like moves in customer devotion, and proficiency levels
  • Genuine expenses are costs identified with conveying a commitment, for instance, work expenses and rough materials

An advantage infers an association gets benefits due to thing and organization arrangements or increases focal points because of open minimization or headway. Advantages can be unmistakable and immaterial. The essential substantial advantages would be pay, cash pay, and cost decline. Essentially, it is the net advantage gain for a running business. The impalpable advantages would consolidate raising buyer reliability rate, improved specialist motivation, creating bit of the general business, and better reputation for an association's picture. In the IT business, the impalpable advantages are noteworthy, especially for a few, new organizations. There are various systems to measure elusive advantages, for instance, multiobjective, multicriteria modes, regard assessment, fundamental accomplishment factors, etc. As we have indicated already, various indispensable or long stretch advantages are immaterial estimations and they are difficult to assessed or assess considering the way that they are unique and judicious in nature.

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