- Determining when to develop a system in-house or to purchase a COTS system is not always clear. A SWOT (strengths, weaknesses, opportunities, and threats) analysis brings the strengths and opportunities to a focus point and highlights the threats and weaknesses so an informed decision can be made. This analysis is often completed by the stakeholders, including the business analyst.
Perform a SWOT analysis of buy versus build for your chosen system using the knowledge gained from the Week 5 discussion, Purchasing Software Applications. You may use any Microsoft® program to create the SWOT analysis similar to the one featured in Ch. 12 of Information Technology for Management.
Use your SWOT analysis to create a guide for managers at Phoenix Fine Electronics to help determine if the business should build or buy a system. Incorporate feedback from the sourcing plan you created last week. Support your guide with at least 2 references. As a guideline, this type of guide should be 4 to 5 pages in length with written descriptions, charts, and outlines.
Include the following in your guide:
- Various steps needed to purchase or develop a system in-house
- Budget considerations
- Staffing considerations
- Time considerations
- Maintenance plan
Course Scenario: Phoenix Fine Electronics
Perspective: How to Bring Val…
Read the following scenario and refer to it when you complete the weekly assignments:
Week 1: Business vs. IT Strategy Presentation Week 2: System Recommendation Week 3: Measurable Values Week 4: Strategic Sourcing Plan Week 5: SWOT Analysis Week 6: ROI Calculation and Business Case
Phoenix Fine Electronics (PFE) is a medium or mid-sized company but growing rapidly each year selling technology products to retail consumers. They have an annual revenue of $15 million in sales. PFE started with one store but has grown to 25 stores and has expanded into a second state.
PFE has one store in a town with a population of 100,000, and three stores in towns with populations exceeding 200,000. The goal of the company is to continue expansion into an additional 3 neighboring states within the next 5 years. PFE wants to utilize the same population numbers to determine the number of stores it should open. It would also like a marketing firm to do an analysis of each town that meets the population criteria to determine the best cites in which to open new stores.
Each store employs a store manager and an IT manager who both directly report to the Chief Executive Officer (CEO).
The current IT plan for each store is to utilize technology to support the store; increase sales; track inventory; secure store customer data; perform payroll; and report all sales, inventory, and payroll data to the main office. The IT manager is responsible for managing the IT systems, making decisions on what technology and software are needed, and implementing the systems while ensuring accurate reporting to the main office. The store manager is responsible for all staffing, inventory, and sales functions within the store.
With expansion and the acquisition of smaller independent stores, the CEO is worried about how department and customer data can be aggregated to allow the company to make better, timely business decisions. Even with such a wide footprint the company must ensure unique, outstanding customer service and provide value to the consumer base. The CEO lacks IT experience and has been hesitant to adopt the suggestions of the store and IT managers, which is to give the company an online presence and advance the company into national competition with other consumer electronics stores.
The CEO hired a Chief Financial Officer (CFO) and Chief Information Officer/Chief Technology Officer (CIO/CTO). The CFO will oversee the company finances for the expansion. The CIO/CTO will oversee the consolidation of the disparate systems and technologies that exist between the stores, streamline the information gathering and reporting to the main office, and develop an online presence that will catapult the company into a competitive position on a national level.
Your job is to help the new CIO/CTO move PFE toward the future.