Section IX - Project Management

Section I: Background and Environmental Analysis

Trusty Carpets

DynaTech

IFSM 495: Capstone Course

October 26 2021

Christopher Kichinko

Nadia Ekeme

Tasian Berryman

Executive Summary

I. Background and Environmental Analysis

A. Background

Trusty Carpets is a successful family-owned business that has been operating from a single location for the past 20 years. Currently, total carpet sales is in the ballpark of $1.2 million annually, with a net profit of $100,000. The business is poised for major growth through the recent acquisition of Metro Carpets, a business located on the other side of town that sees $3 million in sales annually with a profit of $360,000. Additionally, Trusty Carpets will be combining operations with their previously contracted carpet installer.

The original location has basic existing IT infrastructure to aid with sales and ordering, the new location does not. A technology solution is required to manage two separate locations and the installation operation as a single business. The targeted solution will also enable increased sales through an online presence that connects Trusty Carpets with home builders, and directly with consumers via in-home sales. The primary business objective is increased profit margins, while ensuring that Trusty Carpets is operating in an environmentally friendly manner.

B. Environmental Analysis

There is a rising number of residential and commercial construction activities in numerous countries globally indicating a boost in growth in the global rugs and carpet industry. This coupled with an increasing focus in aesthetically pleasing interior decor and a shift toward environmentally friendly carpets, is further driving market revenue growth. Currently, the global carpets and rugs market is projected to hit $164 billion by 2028. Other stats indicative of this growth include nylon material accounting for the largest revenue share of 32.5% in 2020, with North America owning major revenue share followed by the Asia Pacific market (Global Carpets and Rugs Market Size, 2020). COVID-19 has also been a stressor in this industry, stunting the construction of housing and building projects and in turn limiting the purchasing of carpet tile flooring and a subset of services. With re-openings, increased renovation and remodeling activities in the real estate realm, high consumer interest in interior decor, and revamping of commercial buildings (Carpet Tiles Market, 2021), there is an increased post-COVID need for the carpet tile services, which expose great business opportunities for Trusty Carpets.

Opportunity or Change to Business Vision, Strategy or Objectives

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Expansion is a single driving factor for increase in profit margins, Trusty Carpet’s primary business goal. Acquiring Metro Carpets and merging with Mike’s installation company is an exponential step towards that objective. This new business direction presents several opportunities. First, obtaining Metro Carpets presents 50% non-utilized space which can be leveraged to store recyclable carpets before they are picked up, and installation equipment that are otherwise stored in trucks. Having space to store recyclable carpets also means scouting for individuals who would like to dispose of old carpets and offering to facilitate the process, all the while offering Trusty Carpets as replacements. In light of finding customers, the enterprise can leverage the digital space for marketing and e-commerce efforts. Otherwise, in-person outreach can include attending niched events including but not limited to real estate conventions and establishing partnerships with interior design showcases like those at IKEA, or local home improvement vendors to aid in promoting/selling Trusty carpets. Expanding also indicates recruiting more employees and obtaining an adept information system that will handle data/information generated from billing, accounting, HR, business partnerships, supply chain logistics, e-commerce management, and marketing efforts. This system must ensure privacy and security of data, while maintaining downtimes, and offering mobility, speed, and efficiency. These will help optimize current business processes and technology.

Inefficient Business Processes or Technology

Currently, Trusty Carpets utilizes the local paper for its advertising and marketing efforts, which proves inefficient especially as the pandemic accelerated digital transformation by 3 to 7 years in just months (Boulton, 2021). Trusty Carpet’s accountant handles all paperwork as well as processes relating to finances, bill payments, invoice distribution, payment collection, and payroll. This can be overwhelming and lead to errors. Transferring the workload to the new information billing system will help, and the accountant can own managerial tasks like overseeing processes and performing quality control. Order forms will also need to be managed by the system, as well as all customer records and handwritten ledges generated by Metro Carpets. Carol handles the bookkeeping which is organized but paper-based; these records should be stored in the cloud for backup, additional security, and ease of access. Mike currently runs his installation business from home and stores equipment in trucks. Leveraging the additional space acquired, installation services can be moved onsite.

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New Technology Trends

Carpets still continue to be trendy despite the rise in popularity for hardwood floors; and technology is being used to improve their beauty and durability. Manufacturing remains constant with the standard principle of fiber being woven or tufted into a roll of modular-backed finished product (Morris, 2021). Aesthetic ability in regard to color, texture and pattern are controlled to match a disposable mentality among consumers to keep the margin between carpet and hardwood floors thin. Design-capable tufting machines have allowed for more decorative and comfortable/”soft” modular carpets. Multiple-dye technologies help to achieve better blended coloration. Antimicrobial technologies help eliminate damaging microbial growth without compromising aesthetics and functionality (Ryan, 2020). Eco-friendly carpets are being manufactured by materials like recycling plastic bottles all to protect occupants and the environment (Morris, 2021).

Commercial or Operational Trends

Operational efficiency is an important aspect of ensuring commercial and industrial activities result in value and profitability. Operational efficiency and best business practices are essential in the carpet industry. Companies are absorbing and implementing operational efficiency as well as best practices which in turn provide them with a competitive advantage in the industry. Trusty Carpets should design its operations so that they are efficient, environmentally friendly, customer oriented, technologically advanced, and profitable.

New or Better Products & Technologies

There are other competitors in the carpeting industry, and Trusty Carpets is not a unique firm. Jerry will be required to maintain a competitive advantage, which will be accomplished through an investigation of the enterprise's information technology infrastructure. A large number of small firms have made the transition away from paper bookkeeping, payments, billing, invoicing, and inventory management practices (Silva, Filho, & Fontoura, 2020). These companies have discovered that deploying an information technology system that automates these operations is considerably more effective, accurate, and saves money and resources. Additionally, businesses have discovered that advertising online, whether through a website or social media, reaches a greater number of potential customers than any other form of marketing.

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The latest technological advances, such as social media, have made advertising considerably easier, cheaper, and more effective in terms of reaching a wider audience in a shorter amount of time. Many competitors are using social media, allowing them to easily reach a larger audience of young people who are looking to purchase the latest trends in carpet manufacturing. Trusty Carpets can leverage social media – Facebook, Twitter, Instagram, and other platforms – to quickly reach this technologically savvy segment of the population.

Changes to Statutory Legislative or Other Environmental Requirements

The environmental rules and policies may need to be revised. As a result, the government may alter policies in order to better safeguard the environment. These rules frequently lead to new regulations governing company activities. Existing laws and policies may also be revised or updated by the government.

Ignorance of the law is not an acceptable justification for breaking the law. It is Trusty Carpet’s obligation to keep up to date on environmental laws, rules, and regulations that apply to its particular industry and firm. Trusty Carpets should create a Compliance Management System (CMS) to ensure that they are in compliance. (Dittmers, 2018). A CMS is used to manage the risk associated with new legislation and changes in the marketplace. Incorporating requirements into business processes, conducting operations reviews to guarantee adherence to requirements, developing corrective action plans, and updating materials are all made possible through the use of a CMS.

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II. Problem Analysis III. Proposed Solution IV. Expected Improvements V. Alternatives Analysis

VI. Feasibility Analysis VII. Requirements Checklist

VIII. Context Diagram IX. Project Management X. Acquisition Strategy

XI. Risk Management XII. Security

XIII. Additional Implementation Issues XIV. Performance Measures XV. Conclusion

References

Boulton, Clint. June 24 2021.What is Digital Transformation? A Necessary Disruption. Retrieved from https://www.cio.com/article/3211428/what-is-digital-transformation-a-necessary-disrupti on.html

Carpet Tiles Market - Growth, Trends, Covid-19 Impacts, and Forecasts (2021- 2026). Retrieved From: https://www.businesswire.com/news/home/20210629005669/en/Global-Carpet-and-Rugs -Market-Size-Trends-Analysis-2020-2028-by-Material-Type-Applications-and-Distributi on-Channel---ResearchAndMarkets.com

Global Carpet and Rugs Market Size, Trends, Analysis 2020-2028, by Material, Type, Applications and Distribution Channels - Researchandmarkets.com. June 29 2021. Retrieved from: https://www.businesswire.com/news/home/20210629005669/en/Global-Carpet-and-Rugs -Market-Size-Trends-Analysis-2020-2028-by-Material-Type-Applications-and-Distributi on-Channel---ResearchAndMarkets.com

Morris, Richard. (June 17, 2021). The Future is Now: How Technology is Driving Modern Trends in the Carpet Industry. Retrieved from: https://yourstory.com/weekender/technology-driving-modern-trends-carpets-industry/am p

Ryan, Ken. (February 10, 2020). Carpet: Technology Advances Support High-end Goods.

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Retrieved from: https://www.fcnews.net/2020/02/carpet-technology-advances-support-higher-end-goods/

Dittmers, C. (2018). Teil 2 das compliance-management-System im Unternehmen. Werteorientiertes Compliance-Management, 105-160. doi:10.5771/9783845288154-105

Silva, C., Filho, E., & Fontoura, L. (2020). Software processes used in university, government, and industry: A systematic review. Proceedings of the 22nd International Conference on Enterprise Information Systems. doi:10.5220/0009419203140321

Appendices

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