ROI of Implementation

Running head: PHOENIX FINE ELECTRONICS 1

PHOENIX FINE ELECTRONICS 2

PHOENIX FINE ELECTRONICS

Katherine Askew

CMGT/583

March 2, 2020

David Conway

SWOT Analysis

a) Build

Strengths	· The Phoenix fine electronics company has a large consumer base, from which components and functionalities of the information system derives. Comment by Spraggins, Katherine: · The stores are in dense retail customer regions, which makes it easy to capture the needs of the retail customers regarding what interactions they desire from the system. · It has mastered the market where its store is, hence the need to expand with specific interests captured in the built information system implemented. · It boasts an agile market research strategy that exploits the need of its retail customers, thereby earning a significantly high annual revenue in sales. By building its own information system, the objectives of the Phoenix Fine Electronics company are best integrated.
Weaknesses	· Operating on a distributed business model increases costs, especially when there is an elite resource allocation for the different stores.
Opportunities	· In the case that a transaction processing system specific to the business needs of the Phoenix Fine Electronics company, developed and implemented, interfaced with a management information system to acquire more in-depth information on consumer trends, used to boost the managerial skills of the sales managers.
Threats	· A computing-intensive environment poses cyber-attack risks on corporate resources such as electronic data generated. Any flaws within the developed system, which primarily comprises a vast scope than for a purchased system, lead to expensive outcomes.

b) Buy

Strengths	· Implementing a customized information system significantly reduces the time spent in software development. · Information systems fitted with security controls at various designations prevent the possibility of a successful cyberattack. · Bought systems are liable to modifications and security patches that improve the user experience and are usually offered free of charge.
Weaknesses	· The bought systems may not provide the range of functionalities that are desirable by the Phoenix Fine Electronics company to fulfill its business needs.
Opportunities	· By adopting systems that are standardized to meet the requirements expressed by various regulations, both national and international, the Phoenix Fine Electronics company acquires certification, which increases its ratings.
Threats	· Bought systems provide similar security flaws across all platforms, which can be utilized by intruders and malicious people to enact cyberattacks.

Guide for determining whether to buy or build

I. Steps towards Purchasing or building a system in-house

Figure 1:Steps in purchasing or building in-house

Before embarking on deciding whether to buy or build a system in-house, it is necessary to weigh benefits incurred against accrued limitations. A purchased system will facilitate a fast transition for collaborating infrastructure, the supply chain, the customer base, and the distribution network t ensure the business springs on its feet in a competitive market with minimal time wastage. The disadvantage of purchasing a system is that it is considered the intellectual property of others; hence, little or no flexibility for tailoring the policy to suit the business needs. Next is weighing all costs. A comparison to establish which convention achieves more significant economies of scale. The second-last item on the list when expanding the need to purchase or build a system in-house is to know your business. Understanding your business entails setting the management framework in shape to allow a smooth transition of the expansion to include a purchased system or in-house one. Lastly, make the verdict on whether to buy or build the system in-house. Where the management does not relish in the idea of the fear of the unknown, the system should develop in-house to capture all necessary functions that the business anticipates it to render (Zhao et al., 2019).

II. Budget considerations

The budget considerations regard a benefit-cost analysis where the outcome of the integration of a system in a business environment weighed against costs incurred. The main objective is towards deriving the increase in the value of the business when the system is incorporated against it when it was not present.

III. Staffing considerations

There is a need to assess whether a possibility arises where newly recruited employees support the system. These are dedicated employees whose sole function is to provide technical support functionalities, e.g., IT staff. It is also essential to assess the complexity of a system to determine if training is required. Depending on the completeness of the business functions that match the tasks which a system provides, it is necessary to assess if it is needed to outsource specific business processes not accounted for within the system (Turekulova et al., 2016).

Figure 2:Employee considerations

IV. Time considerations

The most critical time consideration regards how long it will take to integrate the desired system into Phoenix Fine Electronics’ business model. There is plenty of time utilized in the implementation phase of the system development life cycle, production impacts dedicated employees to integrate the system into the business.

V. Risks

The main risk in incorporating a system into the business environment is that systems are susceptible to malicious attacks, and middle to high-end institutions are the ones targeted. Another threat is that an implemented system may not be compatible with a business model, thereby complicating business processes.

VI. Maintenance plan

Maintenance, oriented towards installing security patches, upgrading the system components, and integrating new functionalities, especially where the system is in-house.

VII. References

Turekulova, D., Zumanova, B., Anafiyayeva, Z., Satkanova, R. S., Zhanakova, N., Nurgaliyeva, Z., & Tuzubekova, M. (2016). Outsourcing Strategy Development in JSC «PC «KTZ.» International Journal of Economic Perspectives, 10(3).

Zhao, C., Yang, E., Nie, Y., & Russo, J. D. (2019). Facility decision making process with a modified value engineering approach. Journal of Corporate Real Estate.