Case Study: 1-888-JunkVan

Problem/Issue Statement
Being in operation for over a year, 1-888-JUNK-VAN has become a fast-growing waste collection business. It is facing a major IT issues that are causing information handling errors and the business is losing its customers. The main issue Kingo, the owner is facing, is lack of a centralized software system/database that multiple users can access remotely. The symptoms of the problem are forgotten emails, manual calculations on spreadsheets, lost information, mistakes with customer contact information, errors in job information, and billing mistakes.  The billing mistakes originated by the data clerk were causing the most serious issues for the company. 

 What is the distinction between the problems and the symptoms?

The key problem is a lack of a true IT system to manage the day-to-day operations of Kingo’s virtual business, and the symptoms are appearing in all parts of the company

What is the scope of the problem?

• Incomplete or incorrect information provided to drivers by data clerks, resulted in some dissatisfied customers  
• Contacting helpers, and returning to customer sites to collect payments for donations, costs drivers significant work time
• Data clerks developed templates for the drivers to send customer info, but they were not used which caused increased data consolidation and entry time for the clerks.
• This problem is affecting all areas of the business.
• Data Clerk accidentally sends wrong version of the database to the morning operator, as a result some jobs that were already booked, no longer show up in the database and never made it to the spreadsheets used by drivers for the day’s pickup.  
• An increasing amount of time was being spent (and sales lost) by Kingo working with Data Clerk to clean up the database, costing the business additional new sales opportunities and customers.
   

Situation Assessment

The context of the problem is that the drivers relied on instructions delivered through an email system, and when this information was incomplete or incorrect, customers suffered the consequences. As a result customers were becoming dissatisfied with the company’s service. In addition, since the company doubled its sales from $300k to $600k in such a short period of time, it outgrew the email system and database. It proved to be no longer an effective means of conducting the virtual business.  Kingo believed in his virtual model, however having a database that was emailed back and forth without the ability to be used by multiple employees at a time was causing issues. 

The decision criteria for the new IT system were as follows:

• A centralized database that is accessible remotely since all employees would be working on it simultaneously from different locations. 
• A system that would email customers automatically in order to avoid mistakes and resulting delays. 
• The solution needs to be easy to implement and operate since Kingo did not have an IT background and the business was too small to justify hiring a dedicated IT worker.
• Ease of use was also critical since Kingo’s staff did not possess very high IT skills but would rely heavily on the system.
• The system needs to be flexible enough to handle evolutionary changes in the market or the business.
• Vendor support was essential; Kingo wants to be able to rely on someone for support for as long as his company was using the system.
• Time to implement was critical.  The new system needs to be up and running as soon as possible.
• The system needs to be affordable.

 List of Plausible Alternative Courses of Action

Marcus Kingo had five alternative courses of action from which to choose: a database upgrade, contracting out development of a new software application, using Google Docs, using an online tool framed as Platform as a Service (Paas), or implementing a small-business enterprise resource-planning (ERP) system. Each option presents strengths and weaknesses, and my colleagues and I are left to make a decision on which one will be the most preferable.
1. Microsoft Access Database - implementing Microsoft Access Database would be relatively easy, less time consuming and less expensive. Support can be easily available as it is a very common database. However, the biggest disadvantage of using Microsoft Access is that remote access does not exist and it will require trained people with database skills to operate.
2. Custom Application - It will help to have centralized database, and at the same time the software can be customized to specifically address the underlying operational problems and company's needs. Disadvantage of using a custom application designed for 1-888-JUNK-VAN is that it is not only time consuming but also a success is uncertain.
3. Google Docs - It is free and easy to use. It has great features such as sharing, collaboration and auto-saving; however, the disadvantage of using Google Docs is the lack of security. Company will not be able to implement any security measures to safeguard the company’s private and sensitive data.
4. Platform as a Service (PaaS) - It is a cloud-computing infrastructure. Data can be shared and accessed anytime and anywhere, which makes it convenient for anyone. It can have multiple users using the same integrated application environment at the same time, therefore, giving much needed stability to the company. It is not an expensive option with no contracts and can be migrated in as little as 3 days. I don’t see any disadvantages in using PaaS if I compare it with other options.
5. Enterprise Resource Planning System (ERP) - It has huge upfront cost but it will provide the company with everything it needs in terms of its IT requirement. ERP system is built around one central database and can be accessed remotely. Along with being very expensive, many of its features and functions may not be needed by 1-888-JUNK-VAN.

Evaluation of Alternatives

When evaluating the five alternatives, it is important to analyze which option covers all or most of
the decision criteria.  The new IT system needs to have remote access, be a centralized database where users can simultaneously input information, offer email capabilities, be implemented in a short time and affordable. The pros and cons of each system should be evaluated and reviewed to decide which offers the most capabilities.

Kingo needs to be realistic in the decision making process.   He should choose the alternative that addresses the majority of the issues. Kingo also needs to look at the long-run and future, not just the present situation

Recommendation

After reviewing each option, I believe the PaaS system would be the best options and that would satisfy most the needs for the company. The system offers remote access and a centralized database which is key for eliminating customer errors and keeping the virtual business model. The system can be implemented within 3 days including data migration. The company will have access to software and applications that would otherwise be expensive to purchase. Kingo can create the company’s own applications and forms.  The system is also hosted by a third party, so Kingo does not need to install a server.

After the trial, Kingo felt the system was easy to use which will be beneficial since the employees are not tech savvy. It is also beneficial to Kingo that there is no long term contract required.  If he felt after implementation that the system was not as straightforward to use he could cancel with only one month’s notice and try to find a different solution. The system could cost between $300- $600 per month based upon storage space, user licenses and applications. The PaaS system allows Kingo and the company to scale up or down. In addition, if Kingo feels the company needs a customized program, it will cost about $180.00 per hour.

Presentation

If I were presenting as a consultant to the class, I would state that I have been commissioned to identify strategies for improving the current IT system and database.  I would discuss the problems that arise from the current IT system. I would discuss the details of decisions and its criteria and the needs of the company. I would also discuss the pros and cons of the five options.

Visual aids to be used in presentation:

·         PowerPoint presentation for the major issues occurring at 1-888-JUNK-VAN

·         Decision criteria for the new IT system

·         The pros and cons of the five alternatives.
 

 I would “sell” the PaaS to 1-888-JUNK-VAN and to Kingo by stressing the system’s remote access and centralized database which is key for eliminating customer errors and keeping the virtual business model. I would state that it can implemented within 3 days including data migration. The company will have access to software and applications that would otherwise be expensive to purchase. Kingo can create the company’s own applications and forms.  The system is also hosted by a third party, so Kingo does not need to install a server. I would also stress that it is user friendly which will be beneficial since the employees are not tech savvy. I would state that there are no long term contracts required and can be canceled with only one month’s notice.  The system could cost between $300- $600 per month based upon storage space, user licenses and applications.