tech solution

(the executive summary provides the essential facts from the business case for the decision-maker and is written at an appropriate level of detail. a well-written, clear, and compelling conclusion is provided.)

Trusty Carpets, owned and operated by Jerry Montgomery, is a carpet sales business with 20 years in the industry. The recent acquisition of Metro Carpets and imminent merger with Mike’s Carpet Installations will expand Trusty Carpets’ sales while adding organic installation capabilities with combined annual revenue of approximately $4.6 million with a 9% profit margin. The recent changes have driven a review of how Trusty Carpets will manage sales, inventory, and employees across multiple locations and mobile installation teams. The IT Squad has been hired to examine the business and develop and implement information technology (IT) solutions that will help to increase Trusty Carpets’ sales and profits.

An environmental analysis of Trusty Carpets indicates that several internal and external factors should be considered as the company implements its expansion.

Trusty Carpets’ acquisition and the imminent merger have opened several avenues for growth. By re-evaluating the business’ strategic objectives, Mr. Montgomery and Mr. Baker can chart a new direction for the company to grow in-home and online sales new construction and use Ann Montgomery’s connections to interior decorating to drive growth.

Trusty Carpets operates with manual business processes that have been assisted by information technology. The recent acquisition of Metro Carpets brought on paper-based ledgers and sales records that require digitizing to fit the current system or a proposed solution. Mike’s Carpet Installations is also paper-based and will require similar digitization. Further, Trusty Carpets has a limited, if any, internet presence, as it advertises in newspapers, so modernization of the business model to include e-commerce is necessary.

The company does not have a dedicated IT infrastructure or staff to support operations. To properly support multiple locations, a warehouse, mobile installation teams, and the development of an online presence will require an overhaul of processes and the acquisition of infrastructure to support the demands. The technology opportunities available for Trusty Carpets are vast. Technology is continuously growing, and businesses use it to improve customer relationship management, business processes, and sales.

Industry reports suggest that the demand for carpet has increased because of increased housing construction, renovation, and remodeling across the United States (Carpet and Rug Mills, 2021). Rising incomes aid the increased demand. Consumer trends also increase demand for sustainable and environmentally friendly carpets (Mordor Intelligence). Trusty Carpets has a prime opportunity to increase its sales by tapping into these trends.

Carpet industry competitors, such as Mohawk Industries, Inc., offer carpet tiles, which are on-trend (Mohawk Industries, Inc.). Carpet tiles are often viewed as easier to maintain and install. Carpet manufacturers are also producing more durable carpets, particularly waterproof carpeting. Finally, given the societal focus on environmentally-friendly products, manufacturers also make carpets from recycled materials (Flooring, Inc., 2021). As Trusty Carpet implements its expansion, it has an opportunity to integrate these new products into its business.

The current and future direction of the city council is headed down a clear path of going green. This can be expensive to align the business organization. However, Trusty Carpets has recently acquired a warehouse, and allocating storage space to support carpet recycling is an opportunity to change practices and become an early adopter. This presents an opportunity for Trusty Carpets to re-brand and label their company green through the EPA’s WARM recycling program for carpet waste. This is an easy win for the company with minimal effort to transport and store used carpets for monthly pick-up.

Due to the recent acquisition of Metro Carpets and the imminent merger with Mike’s carpet installation business, Trusty Carpets needs to combine the three separate companies into one company seamlessly; however, the business will operate from multiple locations. Currently, all three firms employ a different method for managing business processes, such as processing orders, invoicing and payment collection, and maintaining business data, such as customer data. Further, the businesses have minimal or no technological support.

Trusty Carpets uses an accountant who does not work solely with Trusty Carpets to handle invoices, payments, bills, and payroll. Although minimal, Trusty Carpets is the most technologically advanced of the three businesses with a basic IT infrastructure. Metro Carpets has no IT infrastructure and has hand-written ledgers for business data, which are not well-organized. Similarly, the installation business does not have an IT infrastructure; however, its paper-based business files are well-organized.

Using three different methods for business processes and maintaining business data is outdated, inefficient, and costly. Paper-based files are not widely accessible, require substantial physical space, are error-prone, and are less secure and less likely to be recovered if lost or damaged. Further, navigating through paper files takes time, which increases the time needed to process business transactions and decreases the number of business sales.

Trusty Carpets needs all business processes and data to use the same systems to operate as a single business. Developing and implementing a system that consolidates the business data for all three companies is a critical first step to working as a single business. Consolidation will also assist in increasing profits. Trusty Carpets should immediately plan to resolve this problem and implement a solution within the next six months.

The recommended solution to Trusty Carpets modernization is through the use of Square’s retail Point-of-Sale (POS) solution for managing in-store and online sales, inventory, payroll, customer relationship management (CRM), finances, and payments of all types. Square offers an integrated service solution that includes essential tools such as cross-location stock checking, inventory history, and low stock alerts for managing inventory. The vendor provides saved cards, search features, and cross-location returns between online and in-store solutions. Additionally, a service is provided to quickly create and host a website that looks professional and is fully integrated into the POS and CRM systems, including reviews, discounts, and cohesive payments. This information allows data-driven analytics and reports to understand sales, profits, and costs. The payroll system enables mobile and multi-site timecards, tracking, labor costs, and wages for different employee types.

Implementation: cloud-based with on-site hardware using Square Stands, Square Registers, and web-based access. This will benefit the existing IT infrastructure while capitalizing on a streamlined solution to IT equipment acquisition. Furthermore, it is recommended that Trusty Carpets improve their on-site internet access and establish business email accounts for a more professional appearance.

The Square retail POS solution will allow Trusty Carpets to consolidate the distinct business processes and business data for the three companies using a single, streamlined, and more efficient system. With the merging of these companies, there would be a greater volume of sales and, customers, and other data to handle. Automating invoicing, payments, payroll, and other business functions using a single system will help meet the primary business objective of increasing Trusty Carpets profit margins and will also position Trusty Carpets to handle the demands of the expanding business.

There are several financial and non-financial benefits of implementing Square. Some of the financial benefits include:

· Reducing Costs – Square will reduce personnel costs associated with the business’s accounting functions by reducing labor hours. In addition, Square will eliminate the need for paper files and associated costs for physical storage space.

· Increasing Sales – Square will provide other options for processing sales transactions. Square can be used to process orders during in-home visits and with development of a website, customers will be able to place orders on-line as well. Expanding the methods for processing orders will increase the business’s sales capacity.

The non-financial benefits include:

· Better Data Management – Square will allow Trusty Carpets to access, maintain and manage business data with a single solution regardless of business location. All files will be electronically stored and organized allowing easy access and retrieval. Square will also allow Trusty Carpets to track inventory of any stock maintained in its warehouse.

· Increased productivity – Automating business processes will increase the business’s productivity. Employees will spend less time preparing paper files. Square will allow employees to check inventory, place an order, and set up installation quickly in a single session with a customer. Further, Trusty Carpets will no longer need to rely on the accountant finding time to manage the business’s financials.

Square will provide other value to the business beyond the consolidation of business processes and data management. Using Square to maintain the business’s data will provide data security. Encryption and other security features will ensure that business and customer data is kept confidential. In addition, Square’s POS can act as an entry-level CRM system, thereby helping the business to keep customer contact details up to date, track every customer interaction, and manage customer accounts. Square can also be used to measure and improve customer service.

All the above-listed solutions to the problems faced by Trusty Carpet would improve its IT infrastructure, customer service, data management, and inventory.

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