XII Additional Implementation Issues

Executive Summary

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

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.

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.

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.

A. Business Problem

Trusty Carpets’ has an immediate need to select and implement an IT infrastructure solution or system that enables the management of two separate brick-and-mortar locations and the installation operation as a single business. The existing IT solution only services one location and the new location on the other side of town operates with non-digitized legacy business processes. The recent acquisition of Metro Carpets and expansion of the business exacerbates a problem that already existed: Inefficient processes lead to poor profit margins, this being the chief business problem that a new solution will address, in addition to facilitating online sales, establishing home builder contacts, in-home sales and environmentally responsible carpet disposal. The business is currently negatively affected financially, which will be compounded operationally with the expansion and operation of two disparate locations that are not connected by and managed within a single system that must unify the ledger of both entities. DynaTech recommends an aggressive timeline of 4 months for system selection and implementation.

Trusty Carpets has several separate programs that handle finance, inventory, sales, marketing, payroll, and customer relations; fragmented data should be streamlined to ensure enterprise decision-making is data driven. A good ERP option is Oracle’s NetSuite. It is cost effective, easy to use, customizable, secure and offers support services.

Oracle’s NetSuite is a cloud-based business management platform that gives companies tools needed to nurture growth and efficiently run their businesses. Enterprise Resource Planning (ERP) tools offered include applications for finance, supply chain management, customer relationship management (CRM), human resources, ecommerce, inventory, order, procurement, payroll and more; all of which are needed in the merging of Trusty Carpets and Metro Carpets. With a centralized data source, information inputted across the system updates in real-time allowing authorized users to access the most accurate information on demand. NetSuite uses the SaaS model where a subscription fee is paid to access the platform, but system maintenance and management of the platform is owned by the vendor, Oracle. With an established LAN for Trusty carpets and a WAN to support the connectivity of the additional site at Metro Carpets, the enterprise is set to support the implementation of NetSuite. This acquisition will provide a unified view of the business bringing together disparate systems, bookkeeping tasks will be automated, the complexity of managing invoicing, billing and subscriptions will be simplified, inventory will be centralized, and Salesforce automation will help to manage leads(McCue, 2021). Capabilities with NetSuite are endless as required by Trusty Carpets.

The modern economic landscape indicates a business need for Management Information Systems and solutions. These can be presented in the forms of infrastructure, platform, or software that can be built-in or outsourced to enable small businesses to operate like enterprise-scale businesses (Gratch, 2015). Since Trusty Carpets is a small start-up with an in-house IT infrastructure and an expansion underway, it would benefit greatly from an Enterprise Resource Planning (ERP) system which would be outsourced and hosted on the cloud. Therefore, it is important when acquiring ERP that only features needed by the carpet retailer like CRM, web hosting, ecommerce platform, etc. are obtained.

The following alternative analysis information exposes four options that Trusty Carpets may adopt moving forward regarding IT infrastructure and related business processes. The status quo, proposed solution, different solution and process change are further detailed by description, benefits, cost elements, feasibility, risks and defining issues. These attributes are compared in a matrix and finally a justification is provided regarding which system is selected.

1. Description: Do nothing, continue existing basic IT workflow with google docs at the original store, and non-IT processes at the new store while advertising in the local paper.

2. Benefits: No new capital investment or monthly fees, however no problems from section II are addressed.

3. Cost Elements: No additional cost.

4. Feasibility: Not feasible while attempting to manage the entire business with one solution in addition to seeking increased profit margins.

5. Risks: Discontinuity between store finances, inventory, lost sales and the same (or worse) decreased profit margins.

6. Defining Issues: Does not allow for the management of separate locations and the installation business. Does not establish an online presence for marketing and business communications. Does not address carpet recycling requirements.

1. Description: Oracle’s NetSuite is a cloud-based ERP offering applications for finance, supply chain management, CRM, human resources (HR), ecommerce, inventory, order, procurement, payroll and more.

2. Benefits: Centralized finances, inventory and asset management. A low cost, scalable solution that enables the creation of new efficient business processes in addition to online marketing.

3. Cost Elements:

a) ERP System Implementation $14,000

b) Monthly ERP subscription: $18,000

c) Monthly ISP subscription at the new location: $69

d) 5x Tablet PC’s for Metro Carpet Sales & Warehouse staff: $2,000

e) 2x Notebook PC’s: $1,000

f) 2x Smartphones: $600 + $30 monthly data plans

4. Feasibility: Extremely feasible, ERP adoption for small business is streamlined for ease. Costs are negligible, as an increase in just 1% profit margin represents tens of thousands of dollars in revenue gains for the newly combined business operation.

5. Risks: Internet access - required for cloud access, this can be mitigated with a redundant system like cellular hotspot use. Information Security - company data is protected to the highest level of Confidentiality and Integrity by Oracle's industry leading security practices - however, there is always risk that data can be compromised in the cloud. Personnel adaptability - Metro Carpets employees are coming from a no-IT business process environment, are they up to the challenge in adopting a new solution?

6. Defining Issues: Centralizes data for management of the business as a whole, ubiquitous access, scales to meet the needs of Trusty Carpets, cost effective, introduces process efficiencies, vendor managed (no in-house development or maintenance).

1. Description: Connecting the new Metro Carpets location to the internet via ISP, establish a WiFi with a router and leverage existing google docs

2. Benefits: Improves upon existing legacy, manual processes being conducted at the Metro Carpets location, enables faster invoicing for sales and inventory purchase. Likely to have a small impact on the profit margins at the Metro Carpets location.

3. Cost Elements

a) $100 Monthly ISP subscription at the new location

b) 5x Tablets for Metro Carpet Sales & Warehouse staff: $2,000

c) Scanner/Fax/Printer (all-in-one) $1,500

4. Feasibility: Highly feasible, the existing infrastructure and processes at the main store were implemented by an existing employee, it’s essentially a replication of the footprint.

5. Risks: Organizational - Metro Carpets personnel unfamiliarity with technology, IT - Internet access is required for cloud access, this can be mitigated with a redundant system like cellular hotspot use. Financial - missed profits.

6. Defining Issues: This solution does not address management of the enterprise, will likely not increase profit margins and will not address poor marketing strategy.

1. Description: Reconciliation of sales, ordering and inventory at the close of each business day.

2. Benefits: Provides a consolidated picture of the enterprise ledger, albeit not in real time. May also contribute to better situational awareness of what inventory is on hand.

3. Cost Elements: None

4. Feasibility: Feasible, the only delineating factor is employee time spent delivering and consolidating records.

5. Risks: Time - human error is likely when combining records, resulting in lost time. Organizational - time spent on this process will encumber existing personnel. Financial - missed opportunities to increase profit margin.

6. Defining Issues: This solution does not address management of the enterprise, will likely not increase profit margins and will not address poor marketing strategy.

The comparative analysis matrix plainly states the positive and negative aspects of each possible solution:

Selection of the NetSuite ERP is justified through the following primary reasons: It enables a holistic view of the business through integrated finance & asset management, a by-product of which is the ability to track carpet skews in warehouses, allocating space for recycled carpet. It is also the only solution that modernizes Trusty Carpet’s IT infrastructure, instantiating the online presence required to boost sales and customer relationships to realize enhanced profit margins. While this solution comes with some risk, the investment in equipment, an ERP subscription and training for personnel strategically align IT and business strategic objectives.

Understanding organizational readiness to address the root causes of problems means understanding how to solve complex problems (Sebastian-Coleman, 2013). Trusty Carpet should therefore have processes and people in place to coordinate the efforts and communicate changes (Greeff & Ghoshal, 2004). Trusty Carpets is a small business looking to expand their IT infrastructure and streamline their current business processes. The proposed solution is to implement an ERP solution using Oracle’s NetSuite by benefiting its feasibility based on time, cost and staffing. As we’ve identified pain points in our previous sections, Trusty Carpet now has the ability to implement this solution and understand the benefits. Integrating an ERP system into the current business process will help address and support their growing business. A feasibility analysis will be conducted to evaluate Trusty Carpet's potential for success and will be examined in the following areas: economic/financial, organizational/operational, and technical feasibility (Simplilearn, 2021).

With the current business model, Trusty Carpets sells about 250,000 square feet of carpet a year (70% of it is mid-grade carpet and padding) for sales of about $1.2 million. With the recent changes and expansion, Metro Carpets generates about $3 million in annual sales at a 12% profit. The proposed agile business solution provides positive economic benefits to Trusty Carpets. The estimated project income and expenses to implement NetSuite’s ERP system is cost-effective, scales rapidly and prepares Trusty Carpets for long term growth (NetSuite.com, 2021).

Oracle’s NetSuite ERP solution provides flexibility with startup implementation costs. They offer subscription services where users can subscribe for an annual license fee (Netsuite.com, 2021). NetSuite quotes, “Your license is made up of three main components: core platform, optional modules and the number of users and there is also a one-time implementation fee for initial setup.” NetSuite’s ERP system is cloud based and modular so that you can purchase additional licenses and modules as Trusty Carpets grows their business. Lastly, by implementing NetSuite best practices, Trusty Carpets has the financial capability to accommodate growth and strategize to increase sales. With reduced operating expenses, assessed resource allocation and increased projected revenue, Trusty Carpets should start recovering costs of the implementation within 6-24 months.

NetSuite is an industry leader in cloud ERP and is trusted by start-ups and household-name enterprises across various industries. Its primary role is consolidating disparate data across functional areas in a business. Therefore, core functions in the finance, inventory, procurement, and accounting departments at Trusty and Metro carpets will be merged and managed using a common database. Centralizing the data sources will allow for real-time information updates. Access will be authorized to cross-functional teams including Ann in Sales, Mike in Installations, Ben in IT, and Carol in accounting. Using NetSuite, processes that support the expansion along with increased internet sales and environmental responsibility will be automated resulting in increased efficiency.

Trusty Carpets has a standard IT infrastructure in place consisting of LAN and internet access, enough to support the integration of NetSuite into current business processes. The solution can easily be accessed from a browser using any device with connectivity - salesmen using tablets to check carpet inventory can continue to do so; stored and shared Google order forms can continue to be utilized as needed. The significant shift in processes would be through transferring such data to the ERP portal so they are readily available in real time by authorized users.

Staff expansion would be necessary to maintain the merger with Metro Carpets, oversee system processes, analyze data reports and leverage reports to fuel business intelligence. The sales team will benefit from additional staff with monitoring inventory and coordinating installations. Unless this is outsourced, a team of marketers will be needed to own marketing efforts especially as it will transition digitally. The merger will indicate more paperwork for accounting and increased necessary manpower. And managing a WAN will mean employing and training more tech support specialists. NetSuite supports a single sign-on portal and offers drag-and-drop tools, all of which underpin usability and reduces friction with employee training.

System capabilities are at the forefront of technical feasibility. Exploring whether the software is equipped with features needed to enable the business prior to procurement is critical. NetSuite’s cloud platform is dynamic in that it allows clients to tailor the system capabilities exactly to their needs and customers have the flexibility now and in the future as business challenges shift. The solution offers the following application and developer tools: Customization with drag and drop options plus the ability to create custom fields, records, and roles. Process automation allows the enterprise to automate approvals for purchase orders and sales discounts among others. Integration is enabled so that data flows smoothly from NetSuite to outside software applications. With internalization, an environment is created where teams can easily leverage the system despite language, local tax and accounting rules. With health dashboards, there is visibility into system performance so that business continuity is insured and users are kept productive.

Because of the lack of servers to set up and devices to configure, implementing NetSuite is quick and straightforward through its SuiteSuccess Implementation methodology. This is an approach that tailor’s implementation to the business based on its industry (and the solution serves various industries including but not limited to retail, manufacturing, and software.) Through the program, there is faster deployment of less than 100 days and rapid time-to-value which fuels increased employee adoption and success for businesses. There is also a team of readily available consultants to guide Trusty Carpets as it maneuvers through change management.

The following requirements specifications define expectations that the proposed system is expected to fulfill. Functional, Data, Technical and Security requirements are established to ensure the proposed system meets the needs of Trusty Carpet’s growing enterprise.

A. Functional Requirements

1. The system must enable the management of disparate business units as a whole.

2. The system must help to establish relationships with new home builders.

3. The system must support increased sales.

4. The system must enable in-home sales.

5. The system must track warehouse inventory for carpet recycling.

B. Data Requirements

1. The system must support a synchronized database.

2. The system must support sales invoice input.

3. The system must accommodate three tiers of carpet inventory (bottom grade, mid grade and top-of-the-line).

4. The system must manage customer account information.

5. The system must handle carpet measurement input.

C. Technical Requirements

1. The system must provide redundant access.

2. The system must ensure data back-ups.

3. The system must instantiate an Ecommerce presence for internet sales.

4. The system must establish a CRM portal.

5. The system must be accessible to remote users.

D. Security Requirements

1. The system must be protected by multi-factor authentication.

2. The system must require the use of strong passwords.

3. The system must employ communication encryption standards.

4. The system must protect Trusty Carpets client PII.

5. The system must protect Trusty Carpets financial information.

The context diagram is a useful data model which aids in documenting functionalities of the information system as they relate to NetSuite System users. Defined by functional, data, technical and security requirements, the solution is able to receive inputs from departments, store data, process data, and generate outputs accordingly. Data flows smoothly through the system, adapting to changing business needs/requests, and generally empowering Trusty Carpets as it brings together disparate systems and expands its customer base. The context diagram is located in appendix A below.

A. The advancements in information technology have radically transformed the ways in which businesses operate. Firms that plan to expand their geographical operations, for instance, require integrated technology tools to improve their operational efficiency. Trusty Carpets is a family-owned enterprise that has been running a single retail outlet for two decades. However, it plans to expand its operations by managing multiple locations. One challenge that it faces is the absence of an effective technological resource to integrate all the activities that occur across its multiple business outlets. Its existing IT infrastructure only supports sales and ordering for the old location. Trusty Carpets requires a technological solution to effectively manage its two separate locations and integrate them as a single business.

1. Project Scope

The purpose of the IT project is to develop an integrated information system resource, which will allow the organization to share common data and practices across its different business locations. This will go a long way in allowing managers from multiple locations to generate and access business information in real time (Alomari et al., 2018). Thus, the scope of the project is to design and implement an information technology resource that will allow the organization to solve the fragmentation of information in its large segments and integrate all the data flows within it. The focus of the project will also include adoption of tools that connect different departments, units, and divisions with each other to accomplish a common objective.

The basic components of the technology that will form the scope of this specific project include developing supply chain management system, financial management, inventory system, business intelligence tool, human resource technology, telecommunication system, and corporate website. Since the specific technology that the project team will implement is the enterprise resource planning system (ERP), the scope of the project also includes a customer relationship management system, which will be utilize to engage in planned and sustained efforts to attract and retain existing customers (Lecic & Kupusinac, 2013). To ensure that it survives in the face of turbulent economic times, the organization will adopt an efficacious customer base, which gathers customer data, such as address, name, age, and ID. This feature will be pivotal in tracking customer details, including their buying habits, previous purchases, and wish lists.

2. Time/ Schedule

The project will take a total of 6 months to execute and implement. This duration will be based on the activities that the team members will engage in towards its actualization. The key processes that will consume much of the project’s time include planning, analysis, execution, implementation, testing, and evaluation. To ensure effective time management, the team members will plan the tasks ahead of time. This will include creating daily to-do lists and improving the visibility of requirements across different assignments. Additionally, clear project priorities will be set based on their levels of importance and urgency. This step will be important in drawing a clear line of distinction between important and urgent tasks from the to-do list. More specifically, the Eisenhower Matrix will be employed as an important productivity tool with clear focus of organizing the tasks into different categories.

Table 1

Project Activity and Duration

3. Cost

The project will cost $200,000 to plan, execute, and implement it within the organization. These costs will stem from major resources such as human, technological, and support resources. A comprehensive budget will be developed to ensure that all the activities that are within the scope are represented and have sufficient funding. A project cost management plan will be designed to ensure that all the activities are completed within the estimated budget. The key project cost management exercises that should be performed include cost management, planning, cost estimation, budget setting, as well as cost control (Anicic & Anicic, 2019). The project costs will be the funds that are necessary for the realization of the project. Such financial resources will be provided by both the organization and other interested stakeholders.

Table 2

Project Budget

4. Quality

The quality of the information technology will be managed, controlled and maintained throughout the project. This exercise will be executed to ensure that the project meets the purpose for which it was intended. More specifically, the quality of the project will be evaluated in terms of the extent to which it meets all the user needs, such as customers, employees, suppliers, and the overall organizational goal of integrating all its business units into one. The first step towards ensuring that the project outcome meets all quality expectations will be to identify the quality requirements and standards for the project and the eventual product. To achieve this objective, the project goal will be clearly shared with all the stakeholder groups and the relevant tasks delegated to the individual based on their specialty areas. Examples of quality indicators that will be integral to the completion of the project include user-friendliness, system security, effective ordering and shipment of products, and strong integration of business components. Thereafter, a quality assurance program will be implemented to continually monitor the changes in the product quality over time. This will involve performing continuous auditing of the quality requirements and control results to ensure that the appropriate quality standards are utilized. When such standards are not met or goals not attained, necessary steps and corrective actions will be taken to fix such problems.

5. Communications

Communication is one of the integral steps that are critical to the deployment and successful completion of a project. In this IT project, for instance, an elaborate communications plan will be designed. This plan will comprise the strategies that will be needed to regularly update the project team members and stakeholders on the progress that projects are reaching. In addition, the relevant communication channels will be identified. Examples of channels through which the project team members will reach out to stakeholders include social media, telephone conversations, face-to-face conferencing, and memorandums. Furthermore, a contact person will be appointed from the group, who will be tasked with the responsibility of updating both the members of the public and team members about the steps that the project team is taking to complete the project.

6. Stakeholders

Project stakeholders refer to the individuals and organizations that are actively involved in a project. Such people also have their interests in it, and may be positively or negatively impacted with the outcomes of project execution or successful project completion. The key stakeholder groups in this particular project include customers, employees, managers, suppliers, government regulators, as well as members of the public. Customers are external stakeholder groups who depend on the technology to make purchase decisions by logging in and paying. Suppliers will also have their interface for accessing the system and receiving payments for the raw materials or goods that they have provided. Government regulators will be interested in ensuring that the technological system adheres to the security rules and regulations, such as protecting customer privacy and promoting cyber security.

B. Project Team

C. Project Schedule

Recommendations for system procurement and access are detailed in the following subsections to include; scope, infrastructure and connectivity. Trusty Carpet’s acquisition path is straightforward with a combination of Commercial-Off-The-Shelf (COTS), service and licensing agreements.

1. End User Hardware

a. Scope

i. Tablet PC’s:

1. Product purchase

2. COTS

3. Maintained in-house with support from manufacturers warranty

ii. Notebook PC’s:

1. Product purchase

2. COTS

3. Maintained in-house with support from manufacturers warranty

iii. Smartphones

1. Product purchase

2. COTS

3. Maintained in-house with support from manufacturers warranty and monthly service agreement

iv. All-in-one Printer/Scanner/Fax machine

1. Product purchase

2. COTS

3. Maintained in-house with support from manufacturers warranty

v. Wireless Routers

1. Product purchase

2. COTS

3. Maintained in-house with support from manufacturers warranty and monthly service agreement

b. Infrastructure

i. System Hosting

1. NetSuite ERP hosted in Oracle cloud-based Infrastructure-as-a-Service (IaaS) and Product-as-a-Service (PaaS) infrastructure

ii. Connectivity

1. Wireless router connectivity to local devices (Tablets Notebooks & Printers), the internet and cloud-based ERP

iii. Security

1. Vendor provided by both tablet Original Equipment Manufacturer (OEM) and cloud system provider

iv. Business Continuity

1. Equipment warranty and cloud-based service redundancy are built into purchase, and service agreement

2. Internal continuity solution is to have backup hardware (tablets) on-hand in case of equipment failure and or damage

v. Data Management

1. Conducted daily via service agreement by ERP vendor

c. Contracts

i. Purchase orders

1. All aforementioned hardware, excluding ISP provided wireless routers

ii. Service Level Agreement (SLA)

1. SLA with ERP vendor Oracle to include: 24/7 Phone support, system maintenance, security & data management

iii. Subscription

1. ISP monthly internet access subscription

2. Smartphone monthly data plan subscription

2. Proposed System (NetSuite ERP)

a. Scope

i. Finance Application (Invoicing, Payroll):

1. Service purchase

2. COTS

3. Vendor provided custom development, integration and sustainment per SLA.

ii. Supply Chain Application (Ordering, Inventory):

1. Service purchase

2. COTS

3. Vendor provided custom development, integration and sustainment per SLA.

iii. CRM Application:

1. Service purchase

2. COTS

3. Vendor provided custom development, integration and sustainment per SLA.

iv. HR Application:

1. Service purchase

2. COTS

3. Vendor provided custom development, integration and sustainment per SLA.

v. Ecommerce Application:

1. Service purchase

2. COTS

3. Vendor provided custom development, integration and sustainment per SLA.

b. Infrastructure

i. System Hosting

1. NetSuite ERP hosted in Oracle cloud-based Infrastructure-as-a-Service (IaaS) and Product-as-a-Service (PaaS) infrastructure

ii. Connectivity

1. Wireless router connectivity to local devices (Tablets Notebooks & Printers), the internet and cloud-based ERP

iii. Security

1. Vendor provided by both tablet Original Equipment Manufacturer (OEM) and cloud system provider

iv. Business Continuity

1. Equipment warranty and cloud-based service redundancy are built into purchase, and service agreement

2. Internal continuity solution is to have backup hardware (tablets) on-hand in case of equipment failure and or damage

v. Data Management

1. Conducted daily via service agreement by ERP vendor

c. Contracts

i. Service Level Agreement (SLA)

1. SLA with ERP vendor Oracle to include: Netsuite Software Licensing

a. Full-user licence

b. Employee self-service license

c. Read-only access

2. User-based subscription services

3. Advanced modules and Support package services

3. Connectivity to Proposed System

a. Scope

i. Cloud Service connectivity

1. ISP provided internet access

2. Data stored and secured on the cloud

ii. User Access

1. Multi tenant solution

2. Role-based Access

3. User access through a browser from any device: tablet, mobile phone, PC

b. Infrastructure

i. Implementation

1. SuiteSuccess implementation methodology

a. Tailored to industry and size

b. Rapid deployment and time-to-value

2. Custom integration

a. Streamlined data flow

i. From NetSuite to outside software applications and devices

3. Portal

a. Single sign-on

b. Simple drag-and-drop tools

c. Personalized home dashboards

i. metrics, charts, graphs, reminders

ii. Customization

1. System configuration

a. Based on enterprise structure and objectives

2. Platform development

a. Creation of additional tools using application scripting and Suite script.

3. Process automations

a. Custom workflows

b. Development of intuitive user interfaces

c. Platforms reflecting org structure and terminology

iii. Business Continuity

1. Automatic software updates

a. Hosted on unified version of software and backend infrastructure

2. Performance Monitoring

a. Visibility into Netsuite system health

b. Maintenance for optimal performance and stability

3. Alternative Data back-up option

a. On-premise servers

iv. Contracts

1. Service Level Agreement (SLA)

a. Netsuite software Licensing

b. System maintenance

2. Subscriptions

a. Netsuite modules

b. Support package services

3. Purchase orders

a. ISP monthly internet access

b. Smartphone monthly data plan

A. Approach to Managing Project Risks

Implementing an ERP can enhance business productivity and efficiency among others. This is ensured through automating processes and centralizing disparate systems and data. Its various benefits are also accompanied by complexities that are often detrimental to the business if not planned for (Caldwell, 2020). The multi-phase project which can include redesigning business processes to accommodate the new solution, migrating data from legacy systems, and training team members, come with risks associated with each process area. Risk management is just as much about identifying and mitigating risks as it is about exploiting opportunities. All possible risks can be documented using a risk matrix which also explores the impact, probability, mitigation and contingency plans for all risks. In addition to identification, risks must be communicated to stakeholders and controlled accordingly.

B. Risk Matrix

Located in Appendix B is a matrix of possible risks that Trusty carpets may encounter during the implementation of Netsuite’s ERP software. Along with identified risks are mitigation and contingency plans that provide guidelines for monitoring and controlling risks with the goal of reducing negative impacts on the project. Review Appendix B below.

C. Risks Associated with the Proposed ERP

ERP implementation challenges users, functional groups and business processes to adjust away from traditional practices and techniques, thus making project lifecycles complex and risky. Overarching concerns and ones that are most probable with high impacts as they relate to the proposed system include those around data migration, undefined scope, cost overruns, and employee training. Firstly, there are risks surrounding data migration caused by incompatible data formats or outright human error. These can have a significant impact on the enterprise as business intelligence and informed decisions are underpinned by accuracy and availability of data.This can be mitigated by ensuring ledgers are prepped and ready for migration. Another recurrent risk with average probability but high impact is undefined product scopes and cost overruns. It is probable that in shopping for modules and subscription packages, Trusty carpets may acquire ones that go beyond the functional areas to be optimized. This can lead not only to cost overruns but also to project delays. A third high-impact-and-probability risk to monitor and control is employee training and support. It is critical that all team members understand the business case and benefits for implementing Netsuite as stakeholder buy-in reduces resistance and increases support significantly. Once the software is implemented, training must be conducted to ensure team members are equipped to utilize the solution to the best of its functionalities. Continued training and support should also be available until all knowledge gaps are filled and team members operate it without extensive assistance. Although other risks are low-probability or low-impact, they must be monitored, prepared for, and mitigated in the events that they occur.

Security countermeasures encompass existing facilities and infrastructure, as well as the expansion of showrooms, warehouses, IT infrastructure and the cloud based ERP. Issues and their associated protection mechanisms are identified to protect Trusty Carpet’s sensitive data, application software, systems, networks and physical facilities.

A. Data

1. Security Issues:

a) Unauthorized access

b) Theft

c) Deletion

d) Leaks

e) Ransomware

2. Protection Mechanisms:

ERP system access authentication is vendor provided through single sign-on tokenization to eliminate unauthorized access. Within the system, authorization to access and manipulate data is managed to prevent non-privileged users access to sensitive data. Data is automatically backed up at required intervals, and stored at two different data centers to account for any potential cyber attack data-breach ransom events.

B. Application Software

1. Security Issues

a) Fraud

b) Injection

c) Identity theft

d) Waterhole attacks

2. Protection Mechanisms:

NetSuite application software is available through security compliant Secure Socket Shell (SSH) enabled web browsers. This provides encrypted communication between Trusty Carpet’s clients (tablet PC’s and workstations). Employee’s will be properly trained not to access the ERP portal through any fraudulent sources (e-mail links or prepended web addresses) to avoid providing credentials to nefarious actors.

C. Systems

1. Security Issues

a) Unauthorized access

b) Malware

c) Phishing

d) Trojan horse

2. Protection Mechanisms:

Trusty Carpet’s systems with ERP access are comprised of; tablet PC’s, workstations and smartphones. Every system identified with web browser access to the cloud based ERP application portal will be:

· Virus scanned on a daily basis

· Checked for virus definition updates on a daily basis

· Malware and Adware scanned on a daily basis

· In custody of employee’s or a locked cabinet at all times

· Not approved for personal web browsing and e-mail (to include web-mail use)

D. Networks

1. Security Issues

a) Intrusion

b) Software vulnerabilities

c) Botnet

d) Denial of Service, Distributed Denial of Service (DoS, DDoS)

2. Protection Mechanisms

On-site network security is provided via ISP Wireless router firmware Wi-Fi Protected Access II (WPA2) ensuring encrypted communication between Trusty Carpet client systems and the local router. Beyond the router, further communication between both business locations and Oracle’s NetSuite ERP are protected by SSH encryption. Outgoing network traffic from Trusty Carpet’s routers should be scanned for traffic and port usage via a packet sniffing utility on a weekly basis. NetSuite ERP provides industry leading distributed service redundancy in the event of targeted DDoS events.

E. Physical Facilities Related to IT

1. Security Issues

a) Unauthorized access

b) Theft

c) Vandalism

d) Natural events

2. Protection Mechanisms

Protection of Trusty Carpet’s facilities is achieved through a combination of physical countermeasures and process adherence. Showrooms and warehouses are to remain locked during off-hours. During business hours front entrances remain open, while rear access doors lock from the inside upon exit. The buildings are to be equipped with commercial standard fire extinguishing sprinkler systems, and smoke alarm detection sensors. Security alarms are located at all potential areas of access. IT devices are locked in an approved cabinet when not in use.

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Context Diagram

Appendix A

Risk Matrix

Appendix B