The Project of A/P at Tegan - Case Study Example

05 November 2009 Tegan/Hrad Write up we see an outsourcing/off shoring partnership from the standpoint of each ofthe participants 1-Was outsourcing the A/P project the right move for Tegan given the other possible alternatives? Use the list near the bottom of p. 53 and the list on p. 438 of the text to focus your discussion. The project of A/P at Tegan has been previously developed by some outsourcing firms. These projects were failed due to several reasons. Presently the A/P project of the Tegan has some of different development options. These can be related to again outsourcing options for the business, corporate internal development, implementation of the SAP enterprise resource planning system, applying additional resources to the existing system development, developing a new patch to add new capabilities in the system. The above all options can have some difficulties. For example, the cost of implementation of the SAP enterprise resource planning system would be too much and can include the financial accounting modules. In this regard this option is not workable. The next option regarding the internal development of the system is also not feasible because Tegan does not have so many capabilities. The option of adding patches to already operational system will not be well suited because of various operational errors. Finally the option of the outsourcing for the development of the A/P project will be the right move for Tegan in the overall development of the project. The main reason is that its cost will be less as compared to SAP, and it will offer better developed qualities as compared to internal development and encounter less errors as compared to fixation of already operational system. 2-On p. 440 of the text, theres a discussion of the three types of outsourcing relationships. What type of relationship is this? In this regard we have three main types of outsourcing relationships. In the first option we will purchase the pre developed version of the system and transform its operations according to our business requirements. In this type we will outsource for the customization of the system. In the next relationship or business need to hire a company regarding the development of patches for adding up to the already operational system. In this scenario we will hire a firm and ask them for developing new capabilities that will be added to existing system. The third main and pure outsource options require to develop a completely new system for the business A/P system development. 3- What are the tradeoffs involved in having the requirements analysis for a project performed by one of the firms that would ultimately bid on the project? The development of the requirements analysis document of the project is aimed at offering a better overview of main areas of the system development. In the development of the system we are aimed at developing a better and enhanced system. The main reason assessed in pervious Tegan project failure was the ‘missing requirements’. This time for the A/P system development the requirements analysis document is produced that will offer a better overview and deep insight in to people those are going to bid on the project. In this scenario different system development firms have done bids on the work and their prices varying from £900,000 to £1.5m. Tegan business has selected the Hrad for its less cost and effective system development capabilities. 4-Discuss the choice of development methodology employed by Hrad Technika. The main system development methodology selected by the Hrad Technika was waterfall methodology. In this scenario it is expected that initial LLDs phases would be finished and then coding would start to contrast the development cycle. It is expected that Hrad will start coding LLDs as rapidly as they receive sign-off from Jones. 5-Why did Hrad Technika, the firm that performed the requirements analysis, have scope and requirements problems once the project commenced? Hrad Technika has initiated the project and performed the requirements analysis. The main reason behind this action was that Tegan desired someone to develop the project by taking a deep insight into the overall operations and structures of business and operations of organizations. Therefore, the Tegan’s business was primarily aimed to develop the system of accounts payable (A/P) by means of an effective solution that would require to be in place by December of 2008. The main reason behind this analysis was to discover out the main problems that were undetected to the system vendors and developer previously. There was also problem happened in past that projects were structured as fixed price. In this way lot of areas of the system developed were not touched and remain unsolved due to less clear requirements to the developer. The approach used by Hrad Technika was aimed to minimize the overall project failure. 6-The case writers state: "Sadly, Smith knew that “Leadership” and “Commitment”, the paucity of which was blamed for untold IT failures were not the problems here." Critique. What do you see as the most important IT management failures here? Use the list at the top of p. 440 of the text to help. In this scenario the main important IT management failure was to effectively state the system needs or requirements to its developing vendors. In this scenario all operations could be workable if the system is described well to the developing or outsourcing company. Here the main demand business requires from the business is regarding the better support and concentration management offered to the business system development. The better requirements analysis and stating the system needs to customer can make the system more clearly to the developing firm in this way system can be successful. Here if system stated in a better way then the operations of working with Hrad, moving with SAP, adding patches to the existing system and finishing another vendor will be successful. 7-Which of the options that Tegan identified would you recommend? In this scenario I will recommend the operation of outsourcing with Hrad. The main reason behind this recommendation is, SAP ERP is really expensive and offers less modules to business support. After its implementation we need to transform it as well as change some of business operations. In this regard this option is not workable. The next option of spending cost of fixing the existing system will also not be workable because old system is running through lot of errors and they are becoming more critical in nature. Therefore spending more on existing system will not be workable. Finding another vender will also require more time regarding the system analysis. This will delay the project more. Also new terms, conditions, contracts will also take more time. Therefore I recommend stay with Hrad (Upton and Staats). References Upton, David M. and Bradley R. Staats. "Hrad Technika." 2008. Upton, David M. and Bradley R. Staats. "Tegan.c.c.c." 2008. Read More