Question

Tom O'Neal always wanted to own his own business. When he was in high school, he worked evenings and most weekends at a neighborhood bicycle shop. When Tom went to college at the nearby State University, he still came home in the summers and worked at the bike shop. Upon graduation from college, with his accounting degree in hand, the sole proprietor (Steven Judson) of the bike shop invited Tom to become a full partner in the bike shop. Steven told Tom that he really wanted to grow the business and thought that Tom was just the person to help him do this. Tom decided to join Steven. Over time the business grew and they opened two more bike shops in neighboring cities. Sales increased to more than $3.5 million dollars during the past year and the three bike shops now employ 14 full time workers and another 6 part-time employees. Although Steven and Tom hired an accountant who was keeping their books for them and producing the financial statements each year, the partners thought they needed much more information to really run their business efficiently. They thought that they might need to make an investment in information technology to take their business to the next level.

a. Would you recommend that Steven and Tom consider an investment in IT?

b. Visit the websites of the vendors that offer the appropriate-sized software packages for this business. What are some of the features of possible software packages that Steven and Tom should consider?

c. Would you advise Steven and Tom to hire a consultant? Support your recommendation with appropriate research citations (e.g., business articles that offer this type of advice - what rationale do they give?)

Answer 1

a) As per the information provided here, sales of bike shop increased to more than $3.5 million during the past  years and the three bike shops now employ 14 full time workers and another 6 part time employees and an accountant and they are located in different cities.

IT is considered to be a subset of information and communications technology. An important use of Information technology in business is for communication through platform such as conferencing software, email, video chat, company intranets and internet in general. IT allows businesses to easily hold virtual meetings with staff and clients around the world without having to spend time and money on travel.At the same time, employees can access and share information and collaborate on their work regardless of location. Employees can even work remotely so that the company can save time and cost . companies can also use platforms such as social media to address customer concerns more efficiently.

As we know that for investment in IT requires a huge amount of money, but for taking the business to the next level. In the current scenario it is very important IT plays a vital role for proper growth of such type of business .

Hence, I recommend for investment in IT sector

(b) A bike shop needs an industry specific point of sale system that helps enhance customer loyalty, attract more customers, and can grow with business.

Features of software should be as follow:

i) Maintainability

ii) Correctness

iii) Reusability

iv) Reliability

v) Portability

vi) Efficiency

(c) yes, it is important to hire a consultant for proper implementation of software .

Consultant help to develop strategies for growth or manage project. A connsultant may have a higher level of business expertise than the average employee and provide unique solution for businesses. companies should hire a consultant when they lack the experience, skills, or resources to manage the implementation on their own

"Unfortunately, many of my clients have attempted to implement new software without any help and now have to hire an outside firm to come in, take over,and clean up a mess- wasting valuable time and money."

" Andrew Bellay, Innovation Strategist, MetaNeer Labs, Inc"