STUDENT(S) DETAILS

Student 1 Student 2 Student 3 Student 4 Student 5

Student ID Number(s) 101066333 100671765 100670979 100652126

Family Name(s) Kaur Arora Talha Nazir

Given name (s) Jashanjeet Rishi Syed M. Hijab

PROGRAM TITLE
Master of Information Technology Business Analysis
SUBJECT DETAILS
Subject Code INF80030 Subject Title System Acquisition and Implementation Management
Lecturers Name Ashir Ahmed
ASSIGNMENT DETAILS
Title or Topic
Assignment 2 ICS Services SAIM Report
Addressed

Due Date 25 September 2016 Date Received

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except where acknowledgement is made in the text;
3. No part of this assignment has been written for me/us by any other person except where such collaboration has been
authorised by the lecturer concerned and where acknowledgement is made in the text;
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I / We accept that electronic submission of this cover sheet will be taken as consent to the terms outlined in Points 1 to 4 of the
above declaration by the student/submitting this assignment.

Student Signature(s) Jashanjeet kaur Rishi Arora Syed M. Talha Hijab Nazir

MARKERS MAIN COMMENTS

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 Faculty of Business and Law
INF80030 System Acquisition and Implementation Management
Lecturer: Ashir Ahmed
Tutor: Osama Dandash

Assignment 2 ICS Services SAIM Report

Submitted by:
Jashanjeet kaur (101066333)
Rishi Arora (100671765)
Syed M. Talha (100670979)
Hijab Nazir (100652126)
Contents
1. The Business Objective ............................................................................................................................. 4
2. Business Drivers ........................................................................................................................................ 4
2.1 External Drivers ................................................................................................................................... 4
2.2 Internal Drivers ................................................................................................................................... 4
3. Investment Objective ................................................................................................................................ 4
4. Benefits, measures and owners ................................................................................................................ 5
5. CRM Acquisition and Selection Approaches ............................................................................................. 7
5.1 Open Source Applications ................................................................................................................... 7
5.2 Commercial off the Shelf Applications (COTS) .................................................................................... 7
5.3 In house development ........................................................................................................................ 8
6. Software Evaluation Criteria ..................................................................................................................... 8
7. Strategy for Team Formation .................................................................................................................. 11
8. Organizational Changes Enabling the Benefits ....................................................................................... 13
9. Investment costs ..................................................................................................................................... 13
10. Risk Analysis and Mitigation Strategies ................................................................................................ 14
11. Recommendations ................................................................................................................................ 15
12. Change Management Strategy ............................................................................................................. 15
References .................................................................................................................................................. 16
 INF80030- System Acquisition and Implementation Management
Assignment 2 ICS Services SAIM Report

1. The Business Objective

At the time of global financial crisis, ICS Services, an IT company, purchased a medium sized data
processing centre, a software development business, and an information security company under David
Greens direction. Each of these companies composed of around 100 employees and the current IT
professional services consists of five separate service lines unlike the previous IT professional services
practice which was a single structure. David believes that managing five separate service lines is quite
difficult and needs to be integrated as it would aid in reduced costs by eliminating duplication.
Moreover, by selling multiple services to companies ICS services could increase the number of
consultants working in these companies. A new CRM (Customer Relationship Management) system
would be deployed so that the new strategy could increase the efficiency and productivity of ICS
Services.

2. Business Drivers
Following are the external and internal business drivers of ICS Services Business Case.

2.1 External Drivers

ICS Services perceived competing IT services as being indistinguishable at the time of global financial
crisis, so it was difficult to differentiate its services from other IT companies. In the past, it had tried to
compete but had found it difficult to sustain at the time of global crisis. Hence David saw service as a
differentiator and could be used as a strategic approach in order to gain competitive advantage.

2.2 Internal Drivers

Currently, ICS Services comprises five service lines which are IS Strategy, E-Forensics, Information
Security, Infrastructure and Application Architecture, and Disaster Recovery and Business Continuity
Services. These discrete service lines need to be integrated and operational costs need to be reduced by
decreasing duplication and consolidating around key shared services (payroll, HR, etc) and generating
new revenue by cross-selling architecture or disaster recovery and business continuity services, etc.
Moreover, the company lacks customer profiling and cross selling. There is a need to build strategic
database to recoup the high investment done in purchasing companies with one record per client.

3. Investment Objective
Following objectives were identified for investment in the new CRM system for ICS Services.

Increase the revenue of ICS Services by cross-selling of services.

Collect target customers by consolidated customer profiling system.
To analyse the sale trends and generate reports.

Jashanjeet Kaur (101066333), Rishi Arora (100671765), Syed M. Talha (100670979), Hijab Nazir (100652126) 4
 INF80030- System Acquisition and Implementation Management
Assignment 2 ICS Services SAIM Report

4. Benefits, measures and owners

Improved system will trigger several benefits for ICS Services. Benefits are advantages for certain
stakeholders involved in the system and they are achieved when overall objectives of system are met
(Ward et al, 2008). Hence in the light of research work done by authors, system benefits fall in Financial,
Quantifiable, Measurable and Observable categories. These benefits have range of explicitness which
varies according to known or determined information. These benefits have a positive impact on system
which adds business value. These benefits can be tangible or intangible which means they are
measurable or non-measurable (Sankaran, 2014). In the CRM system, financial benefits have highest
explicitness followed by quantifiable, measurable and observable benefits. However, every benefit has a
certain measure for evaluation. Hence, benefits with highest explicitness are calculated and benefits
with lowest explicitness are realized. Thus these benefits have been structured accordingly in Table 1
below.

Objective Type Doing New Things Doing Things Better Stop Doing Things

Financial Benefit: Improvement in Benefit: Downsizing of

business operations due sales staff due to
to automation. automated system
Measure: Monthly Measure: Last months
Productivity report will monthly salary for sales
show high ROI which will staff in 5 companies=
be up to $ 950,000 in $1.8 million
next 3 months of CRMs 30 % Reduction in wages
implementation as payable due to
nucleus research downsizing is
discovered successful Savings = $ 540000
CRM Implementation Benefit Owner: HR
returns US ($)5.60 for Manager
every US ($) 1 spent
(Cheney, 2016)
Benefit Owner: Finance
Manager

Quantifiable Benefit: Stop sending

unwanted messages or
calling customers who
are not inclined to use
your
products.
Measure: Poor hit ratio
Last year ratio: 20%
Benefit Owner: Sales
Manager
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Assignment 2 ICS Services SAIM Report

Measurable Benefit: Sales team is Benefit: Customers

going to cross sell relying on ICS Services
services products only.
Measure: Monthly sales Measure: Customer
report Sales Acquisition Report
Benefit Owner: Tele Benefit Owner: Account
channel sales manager Manager

Benefit: ICS employees

will be allocated tasks by
CRM system
Measure: CRM System
task check mechanism
Benefit Owner: HR
Manager
Observable Benefit: Highly Benefit: Ability to
Motivated Sales Team analyse future demands
due to incorporation of based on the sales
new system. trends.
Measure: Increased Measure: Quality &
sales team motivation Quantity of sales pattern
Benefit Owner: Sales Benefit Owner:
Team Manager Marketing Team
Manager
Benefit: CRM is going to
have a role based
display which will ensure
privacy and security
concerns,
Measure: CRM Security
Policy
Benefit Owner: HR
Manager

Benefit: ICS Services

employee can do work
by accessing CRM
application through VPN
from their homes.
Measure: CRM Task
Management
Benefit Owner:
Concerned Department
of Employee
Table 1 Benefits, Measures and Owners
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Assignment 2 ICS Services SAIM Report

5. CRM Acquisition and Selection Approaches

There are several CRM acquisition and selection approaches available in the market and they can be
open source or commercial off the shelf application. It is also possible to develop a CRM application in
house. There are merits and demerits of each of these methods which are briefly explained as under:

5.1 Open Source Applications

There are many advantages offered by OSS, but not without the disadvantages. Some of them are as
under (McCafferty, 2009):

Pros
Open source applications have no licensing fees and it is very few if any.
Products are improved day by day as source code is freely available for any improvements,
modifications or bug fixes
Companies are free to tailor applications to fit for their needs.
OSS is easy to manage as any number of copies can be installed and there is no need to track or
monitor it for license compliances.

Cons
Open source communities are not obligated to provide support for applications and there is not
much support provided on them generally, so company opting for OSS should be able to support
itself on its own.
Sometimes an expert needs to be hired to provide training to users, which can add up the cost.
There can be unanticipated administration or implementation costs.

5.2 Commercial off the Shelf Applications (COTS)

According to Carnegie Mellon University/ Software Engineering Institute, a COTS application satisfies
following conditions:

Sold, leased, or licensed to the general Public, Offered by a vendor trying to profit from it, Supported
and evolved by the vendor, who retains the intellectual property rights, Available in multiple, identical
copies and Used without modification of the internals (Blanchette 2005, p.472).

There are different pros and cons associated with usage of COTS applications, which are explained as
under:

Pros
As these applications are thoroughly tested by well established vendors and other clients as well, these
are quite reliable. Therefore, it has much lower risk and cost associated with it. Moreover, application is
delivered in comparatively less time as one need not to wait for designing and development of product
(Blanchette 2005, p.475).
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Assignment 2 ICS Services SAIM Report

Cons
If a wrong product is chosen, reason being the requirements were not addressed properly, management
did not consider proper architectural and configuration management beforehand; all the pros listed
above will turn into odds and will worsen the situation (Blanchette 2005, p.474). Moreover, the vendor
has full control over source code and the functionality of application and client is dependent on vendor
for any technical support (Setende 2012, p.5).

5.3 In house development

Pros
The system is perfectly tailored towards the requirements and company has full control over
functionality and source code. It can provide a competitive advantage and lead to effectiveness and
productivity as it is specific to the companys own needs and is distinct (Setende 2012, p.5).

Cons
Building a system from scratch is costly as involves activities of full SDLC. It is time consuming as well
comparatively (Chianis 2014). Moreover, it will be very expensive to switch to new technology if need
for it arises (Setende 2012, p.3).

6. Software Evaluation Criteria

As mentioned above, there is number of options available, which makes it harder to select the right
application that fits for purpose. Therefore, a well defined criterion should be used to evaluate these
different options. Four candidate applications proposed for ICS services PTY Ltd are Sugar CRM (Open
Source), Microsoft Dynamics and Netsuite (COTS) and in- house development considering the existence
of in house IT department.

These applications are measured against criteria discussed by Jadhav & Sonar (2009, p. 560) i.e.
Functional, Vendor, Cost and Benefit and Quality (Refer to Table 5.1, 5.2). These criteria will be assigned
weight according to their importance and resulting best application will be selected using WAS
(Weighted Average Sum) method.

Functional Vendor Cost and Benefit

Included Functionality User Manual License Cost

Main Target Tutorial Support Training Cost

Completeness Training Installation and Implementation

Cost

Adaptability Maintenance and Upgrading

Interoperability Length of experience

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Assignment 2 ICS Services SAIM Report

Security Levels Product History

Vendor Popularity

Table 2 Software Evaluation Criteria

Quality Characteristics

Personalizibility Portability Maintainability Usability Reliability Efficiency

Customizable DBMS No. of modules User Interface Robustness Time Behavior

fields, reports standards

Platform Scalability Data Backup and

Support visualization Recovery

Error Report

Ease of Use

Table 3 Quality Criteria for Software Evaluation

WAS (Weighted Average Sum) Method

Weighted scoring method is used here to show how each candidate application measures up against the
above mentioned criteria. Weights are assigned to each criterion according to their importance and
rates are assigned for each application to show how it meets the mentioned criteria (Perez & Rojas
2000, p. 492).

Here, rates are divided into three categories against each criterion: 1- Poor (Badly matches the
criterion), 2- Average (Partially matches), 3- Good (satisfactorily fulfils).

Criteria Weight Rate Score Rate Score Rate Score Rate Score
Sugar CRM Netsuite MS In house
Dynamics
197 266.5 255 239.5
Functional 40% 15 105 17 117.5 15 110 16 112.5
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Assignment 2 ICS Services SAIM Report

Included Functionality 10% 3 30 3 30 3 30 3 30

Main Target
10% 3 30 3 30 3 30 3 30
Completeness
10% 2 20 3 30 3 30 3 30
Adaptability
5% 3 15 3 15 2 10 2 10
Interoperability
2.5% 3 7.5 3 7.5 1 2.5 2 5
Security Levels
2.5% 1 2.5 2 5 3 7.5 3 7.5

Vendor 20% 12 32 21 57 21 57 14 43

User Manual 4% 2 8 3 12 3 12 3 12

Tutorial Support 4% 2 8 3 12 3 12 2 8

Training 3% 1 3 3 9 3 9 3 9

Maintenance and Upgrading 3% 1 3 3 9 3 9 3 9

Length of experience
2% 2 4 3 6 3 6 1 2
Product History

Vendor Popularity
1.5% 2 3 3 4.5 3 4.5 1 1.5

1.5% 2 3 3 4.5 3 4.5 1 1.5

Cost & Benefits 20 % 5 34 6 40 6 40 5 34

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Assignment 2 ICS Services SAIM Report

License Cost 7% 3 21 2 14 2 14 3 21

Training Cost 6% 1 6 2 12 2 12 1 6

Installation and Implementation 7% 1 7 2 14 2 14 1 7

Cost

Quality 20% 8 26 16 52 15 48 15 50

Personalization 2% 2 4 3 6 3 6 3 6

Portability 4% 2 8 3 12 1 4 2 8

Maintainability 4% 1 4 2 8 2 8 2 8

Usability 4% 1 4 2 8 3 12 3 12

Reliability 4% 1 4 3 12 3 12 3 12

Efficiency 2% 1 2 3 6 3 6 2 4

Table 4 Weighted Scoring Method for Software Evaluation

7. Strategy for Team Formation

Once the organization has decided to implement a CRM software, the next very crucial step is to
decide the team, who should be interacting and involved in the designing, planning and
implementation of the software. The success of the project heavily depends on selecting the right
team for the project and its an important precursor for it. Not only is important to chose the right
people for the team but also see that they get allocated the right roles and responsibilities and
make sure that the team is cross functional (Fui-Hoon 2001). This can be challenging when you
have limited experience for a software like CRM and the resources are scarce.

Top Management Support:

Any major project needs a backing from the senior most management of the company to avoid
any credibility gap and reduce the chances of a failure. Having a CIO or any other Top IT
executive or a representative of the management in the team helps broadcast the goals of the
project and shows the companys commitment towards CRM. A continuous alignment between
the business and the technology is ensured by such a top official (Holland, 2016). The vision to
the project is provided by this top steering committee and they also resolve or influence policy
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Assignment 2 ICS Services SAIM Report

issues. Valuable resources and implementation effort for trouble free operating environment can
only be allocated by the top management.

Effective Communication:
Executive sponsor is the liaison between the steering committee and the project team who
monitors the health and activities of the project and assists in effective communication between
the team and the project stakeholders. A lot of other important important decisions like
prioritizing tasks, reviewing milestones, quality and efficiency of the project is the responsibility
of this individual. An experienced consultant should be chosen for this role.

Project Management
A project Champion with strong management and communication skills with a good
understanding of objectives of the Customer management operation will fit this role. This
individual will also understand the vision of the management and accordingly plan and progress
the project and adjust the plan whenever required. Coordinating the interdependent tasks and
establishing short term goals to keep the CRM implementation on track with time and budget are
the responsibilities of the Project Manager (Fui-Hoon, 2001).

Subject Matter Experts

There are multiple different functional areas in CRM and hence a functional Champion who is an
expert in its area is needed to spearhead that specific functional requirement in the project. This
includes:
Head of Sales, marketing and Customer Support: CRM affects customer facing areas the most
which is the ultimate measure of success and these executives can critically identify the optimal
business processes and the key activities in the implementation process (Holland, 2016).
Network Engineer: To determine technological requirements and provide a method to fulfill vital
capabilities like computational, backup and storage objectives.
Lead Developer: The technical development and customization of the CRM to build a project as
per the requirement is in this individuals hand who can hire or select appropriate developers
under him to implement the software (Dych, 2001).
Information Security Specialist: Compliance, risk management and the security of the data are
critical to any organisation with a customer facing and hence this individual maintain
confidentiality and integrity of the system.

The SMEs can further choose more team members under them such as end users who will
actively use the new system and hence get their opinion and feedback on the system while
developing it.
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Assignment 2 ICS Services SAIM Report

Business Analyst: A big volume of transaction data- contacts, campaigns, accounts, activities,
etc. are processed through CRM software everyday which gives BA a chance to manipulate and
analyze this data and put it in the hands of decision makers. Change management and efficient
user acceptance is also the responsibility of the BA (Holland, 2016).

8. Organizational Changes Enabling the Benefits

ICS Service will undergo organisational changes in order to achieve benefits. Their objectives will only be
achieved by restructuring of their business processes. They will be required to do new innovative things
which were not practiced in past, improve existing things and stop doing certain things as it was
depicted above in Table 1. These changes play a vital role in achieving investment objectives which
result into benefits (Ward et al, 2008).

CRM application implementation will lead to internal and external changes. Hence internal changes will
be elucidated in the first section. CRM will improve efficiency of as the company will be capable of
providing better services. There will be standardisation of service in an organisation which can be
ensured by management as they will be able track subsidiaries from the central office. CRM
implementation is very cost effective because it will avoid redundant steps because of automation.
Work flow management is going to be easier because now tasks to workforce will be allocated and
monitored through improved system. Thus this will improve the productivity of organisation which will
be reflected by KPI. It will allow higher management to forecast and predict future trends of sales.
Hence it will allow management to utilise their resources to their full potential. It is deduced that ICS will
be required to do downsizing of their staff as theyll be able to operate with one HR, Marketing and
Sales Team. Its inappropriate to recruit redundant staff and have multiple teams for new service lines
(Reddick, 2011).

Furthermore, principles of external changes will be elucidated in this section. CRM system will provide
organisations clients with an opportunity to provide feedback of sales staff and services. Thus this
feedback will create a transparent system which can be used by company to enhance services in future.
Moreover, information sharing will improve teamwork of organisation. Hence, if a client asks for
quotation of an additional service. Then that information will be shared with other department which
will use cross selling techniques in order to convince prospect. CRM implementation will lead to
effective management and analyse required changes by considering legal concerns (Reddick, 2011).

9. Investment costs
Purchase of new infrastructure: $ 300,000
Cost of implementation technical consultants: $ 150,000
Configuration costs: $ 100,000
Upgradation of existing infrastructure costs: $ 80,000
Business change costs: $ 300,000
Training costs: $ 90,000
Total: $ 1,020,000
Net increase in annual systems support and license costs: $ 125,000
 INF80030- System Acquisition and Implementation Management
Assignment 2 ICS Services SAIM Report

10. Risk Analysis and Mitigation Strategies

Type Description Mitigation strategy
Financial Risks Refers to inadequate Proper analysis beforehand
budget estimation which is using established cost
required for completion of estimation models. For
the project including the example: COCOMO (a
availability of funding and procedural software cost
fluctuations in the stock estimation model) (Stellman &
market and interest rate. Greene, p. 49) is used to
estimate the cost of several
Includes improper benefits projects.
evaluation as the benefits
should outbalance the
costs.
Operational Risks Incurred due to insufficient Proper planned adequate
training. training sessions. Look out
for experts and use them.
Disagreement on priorities There are various technical
among the team members. centers providing support in
their specialty area.
Inability of staff to use the
system. It also includes Regular meetings, proper
employee safety, damage to communication and
the physical assets, errors in negotiation.
reporting or data entry and
negligence. Comprehend requirements

Wrong system selection. Conduct option analysis.

Technical/ Functional Risks Related to integration Integration testing should

issues. be done and the issues
should be located before
Difficulty in maintenance execution to prevent
and upgradation resulting in problems.
failure of delivering
promised benefits or Support and maintenance.
functions.
Contact with the vendor.
Lack of interoperability
increasing the chance of Security protocols should be
product malfunctioning. implemented and followed
resulting in limited data
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Assignment 2 ICS Services SAIM Report

System outages. disclosure and safe data

usage.
System is vulnerable to
security issues.
Organizational Risks Miscommunication among Regular meetings as it will
team members. manage the risks. Regularly
review plans in the
Inability of marketing and meetings.
sales staff to do cross selling
because of the rapid Proper training and
transformation of the motivation.
growing technologies.
Uniformity of culture should
Diversity in organizational be encouraged.
culture.
Communication of
Resistance of technical organizational group.
experts in sharing their Effective communication
knowledge creating lack of must be encouraged which
collective understanding of will be followed with the
risks. flow of information
between the groups at all
Organizational restructuring levels and should include
may lead to chaos. formal and informal
communication.
Project disruption due to
merging of different service Proper change management
lines. study should be followed.
Other Risks Amendments in These risks need to be
government legislation. addressed as and when they
occur.
Exiting system gets
outdated due to
advancement in technology.
Table 5 Risk Analysis and Mitigation Strategies

11. Recommendations
Based on the criteria and mapping of each candidate application against criteria according to weighted
scoring method, it is recommended that ICS Services acquire COTS application: Netsuite.

12. Change Management Strategy

The distinct and the most significant element in encouraging a change is to provide strong and
substantial evidence of the need for change. In the case of ICS for adopting CRM system, there are many
 INF80030- System Acquisition and Implementation Management
Assignment 2 ICS Services SAIM Report

challenges regarding internal resistance from practice leaders which need to be addressed. Kotter &
Schlesinger (2008) have explored a number of reasons for individuals to resist change and four core
reasons were:

Parochial self-interest.
Lack of Trust and increase in misunderstanding.
Altered assessments of the situation.
Low change tolerance (Kotter and Schlesinger, 2008).

Kotter & Schlesinger (2008) analyzed that people might resist to change when they think that they might
lose something as a result of the change e.g. losing job. Same is the case with ICS Services as their
practice leaders might resist to change due to insecurity about losing jobs according to Sarah. Moreover,
when people infer that the change might not be beneficial, they tend to resist the change. Also, the
employees of company might assess the situation and estimate that the disadvantages outweigh the
advantages of change process. Last but not the least, people might not feel like developing the required
skills for new adapted system and may fail to encourage the change process. According to Kotter &
Schlesinger (2008), there are six approaches to deal with such situations which are explained below:

Educating and communicating about the change beforehand might help the employees to accept
the change. ICS employees should be well informed beforehand so that a sense of trust can be
developed among employees and employer. Proper communication will help them understand the
reason for adapting CRM and reduce the risks of inappropriate rumors in organization.
People working within an organization should be involved and participate actively in the change
process. In ICS, the employees should be encouraged to contribute to their maximum in the change
process of adapting a new CRM system so that knowledge gaps can be identified and solved
accordingly.
Training sessions should be organized for proper understanding and working of the new system.
Incentives should be given to the employees in order to develop trust among employees. For
example, giving bonuses for participating more in the change process.
Assign key roles in the change process to employees so that they are well aware of everything
happening during this process.
In the worst case scenario, employees are forced to accept this new system. This is a risky approach
but sometimes coercion is unavoidable.

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