You work for MIT Consulting, a

You work for MIT Consulting, a leading IT project consulting company. Your expertise is in project management, scoping a project in terms of feasibility and providing an overview plan for board approval, negotiating with vendors and managing implementations.
You have been hired by the Client to provide a preliminary Project Plan for an important internal project. Client staff support the project and have secured Board approval for MIT Consulting to take the project to the next phase. (Prior consultants have recommended the project, but not fully scoped the detail.) Your brief is to objectively assess the project and address the following issues in your report to the Board:

? HVN supplies an integrated retail and property system
? Franchise and company stores, 245 in total
? Four countries, 4 currencies and 5 time zones
? Project Reload’s objective is to transform HVN’s outdated and proprietary merchandising and supply chain operations, thereby enabling a significant improvement in the associated business processes and organisational effectiveness
? The SAP IS Retail solution has been selected as the application suite of software for the merchandising management solution
? The SAP MDM module has been selected for Master Data Management
? Reduce lost opportunity costs by implementing more efficient and effective promotions and inventory management
? Provide the required platform for entry into Multi-Channel Retail (online and physical stores)
? Capitalise on the growth of social media including Twitter and Facebook
[Source: John Slack-Smith, CIO, HVN, CeBIT Executive Briefing, 24/5/14]
[Your job is to reverse engineer this program, map to stakeholder benefits and metrics, phase the component projects in this program and assess the risks.]

A. Executive Summary

Harvey Norman Holdings Limited is a public company that is listed on the Australian Securities Exchange Limited (“ASX”), whose principal activities primarily consist of an integrated retail, franchise, property and digital enterprise.

Harvey Norman® operates under a franchise system in Australia and consistently delivers an unparalleled retail offering to Australian consumers with an extensive product range, cutting-edge technology and market leadership in key product categories. Harvey Norman Holdings Limited grants franchises to independent proprietors under three leading brand names: Harvey Norman®, Domayne® and Joyce Mayne®. The proprietors sell products in the following categories: electrical goods, furniture, computerised communications, bedding and manchester, kitchen appliances, small appliances, bathroom and tiles, carpets and flooring.

Harvey Norman Holdings holds franchise and company stores, 245 in total over Four countries, Four currencies and 5 time zones.

Currently more than 245 stores and for reports to show how the business is doing to the CEO Gerry Harvey; is to transform HVN’s outdated and proprietary merchandising and supply chain operations, thereby enabling a significant improvement in the associated business processes and organisational effectiveness

Process improvement for time and money to reduce costs on using the SAP solution to be competitively advantage on online-retailing system.
“Reduce lost opportunity costs by implementing more efficient and effective promotions and inventory management
? Provide the required platform for entry into Multi-Channel Retail (online and physical stores)”
? working group was formed between IT and the business to nut out ambitions for the transformation. It came down to a desire for one trusted source of data, near real-time data (within 24 hours), more data sources, faster responses to data queries, self-serve query reporting and analytics, and a platform that was scalable.
? The technology solution Harvey Norman ended up with was SAP BW on HANA, using Lenovo System X servers, Apos for its scheduling and distribution needs, and Ciber as its systems integration partner.
? Using Virtual team presence
Inefficient pract

Statement of Work:
This effort includes the following:
? Define
? Assess
? Further define the critical functions and requirements
? Create and approve a project charter
? Create and approve a project plan for the SAP implementation
? Implement Test SAP Application focusing on high priority functions
? Test functionality and assess strengths and deficiencies of software product and implementation methods
? Make recommendations and project plan for a full production rollout including
? Roles and responsibilities
? Functions to be include
? Implementation methods
? Timeline
? Governance
? Report findings
? Seek commitment and/or funding

This effort does not include the following:
? Implementing a SAP IS product

B. Context
Summarise the project background
How does this project fit in to the context of the organisation?
What Is Project Background?
Creating a clear and unambiguous background of a project is one of the most important actions to be taken at the very beginning to ensure success of the project at the end. The clearer the background is, the more accurately and understandably the project will be spelled out. Below I give a definition of project background.
A Project’s Background is a formal document containing a common description of what is expected to be done within the project, what prerequisites for the project are, and how to produce the expected amount of work. The document is to be created prior to the implementation process to make a foundation for further goal setting and implementation.
When you develop a background document for your project initiative, you need to regard the following information:
¦ Primary focus (what is to be addressed by the project)
¦ A list of prerequisites and key reasons for launch
¦ A very common description of how to perform the project
¦ A plain explanation of the desired outcome
Project Objectives
Business Objectives for the project are:
The following limitations and constraints have been identified for this project:
? The effort relies on voluntary participation by multiple organisations within the reporting business
? This project has no defined budget
? Upon approval of this Project Charter, the next milestone will be the completion of a Project Plan.
? Lack of communication between systems
? Timeframe

The following assumptions were made when developing this Project Charter:
? This project has the approval of HVNto host the SAP IS Product.
? SAP IS Data mangaement reporting solutions need to continue support staff involvement with this project.
? More specific staff commitment levels will be defined in the project plan.

, benefits, additional research required, suggested process model and treatment of major risks.
Conclude with overall recommendation as to the project’s priority.

Stakeholders – worried due to not going online straight away – competitive advantage with Project reload

C. Business Case
Financial and/or strategic justification
Project success criteria.
How will the client know the project was successful? How can the client ensure that the expected benefits are realised?

Discussed in Lecture about things to include in assigment
Business Case
– Project scope
– Project Goals
– Risk Analysis

Part C

SAP, (full form – System, Applications and Products) is a German company, which supplies industry specific solution for multinational companies. SAP is well known for its ERP (enterprise resource planning) and data management.
Project Reload
Harvey Norman, previously used software for stock and data management. Which was inefficient and outdated. So, the CIO , John Slack-Smith, in 2010 CeBIT conference announced that the company will invest approximately $50 million to optimize its online retail market.
For the financial year 2011, no. of franchised outlets in Australia 195 and the no. of company-owned stores were 96. The most intriguing was the franchisee sales revenue, which was a whopping $5.08billion.
Using SAP for online retails across 245 stores in Australia, New-Zealand and Ireland was a challenging part and would require a minimum 5 years to completely transform its market.

Project scope
Project Reload is a software-based project which will modernize supply chain operations of Harvey Norman. This means that a transformation of software was required which can accommodate the data and reports of more than 250 stores. Previous supply chain model of the company was outdated and had a very basic function which resulted in a slower business model.
Project Reload will use SAP businessObject to customize its supply chain accordingly which in-turn will be faster not only for the consumers but also, will help in the faster growth of the company.
The newly developed software will make sure the consumers as well as the employees find it easy to navigate and make online shopping without much hassle.

Estimated timeline
SAP is a software-based product which needs to be tested, maintained and updated after regular interval of time.
Installing and running a new product across 250+ stores which becomes the base of all future transactions takes a lot of time. It is estimated, that the entire project will be completed, and all the process will be done through SAP in 5 years.

The first financial year will go by learning and introducing products through SAP. Once the program is properly installed and running, training of associates to properly run the program will take another year. After many and trail and errors, the maintenance and debugging of the program is required which will be done after the end of third financial year.
The product will be at its best usage in the fourth year which is economic for the company and the profits from the major transfer and shift over would start from the fifth year

SAP-IS is a software which seamlessly provides specific solutions for specific companies. It provides solutions based on the utilities and customer care services.
SAP-IS is used for device management, invoicing, billing, customer services and for intercompany Data exchange (IDE)
SAP MDM (Master Data Management)
SAP MDMD is management software used by SAP to control and organize inventory and data for useful parameters. SAP MDM ensures data integrity across all IT systems. Master Data Management (SAP MDM) enables master data on customers, partners and products to be consolidated and harmonized across the enterprise, making it available to all staff and business partners.

Project Maintenance
SAP will provide software-based distribution specifically for Harvey Norman, which means, the employees need to be trained on how to use the new software and then keep it running without major crashes. Since SAP is just a tool, to be used for online shopping and transactions, it will need constant update in short intervals of time. So, if there is a deal on some product, which offers discount, all the offices and stores which are registered to that deal, should be properly synchronized to provide the best service.

Risks and complications

The risks and challenges faced in the project made it difficult to complete it and make it fully operational. The biggest problem was the synchronisation of stores with the head office.

D. Process Model
What additional studies are necessary?
e.g. Vendor selection, prototype to elicit detailed requirements with users, proof of concept to confirm technology, tools or platform etc.
What is the suggested project process model?
Clear diagrams are essential.

Discussed in Lecture about things to include in assigment
? Project Resources
? Requirements
? Constraints
? Project Milestones
? Deliverables
? Quality
? Objectives
? Crisis Management
? Negotiation
? Conflict Management
? Measurement
? Handover

E. Risk Management Plan
Client wants to see ONLY ‘project specific’ risks. They are aware of the generic risks that affect virtually all IT projects.
Tables should include each major risk identifying the source, event, consequence, probability, existing control(s) and initial risk rating.
Another table should include the risk treatment plan for each risk with an unacceptable rating including the cost justification and effectiveness (e.g. residual risk rating).

Discussed in Lecture about things to include in assigment
Part E Risk Management Plan
– Powerpoint – Riskmanagement Plan (Wk8)
– Project Risks – Examples
o Team member leaves
o Sponsor changes requirements
o Delivery issues
o Technical support (license support to license to support)
o Country online store down
o Losing Data (unable to backup)
o Decide whether to go ahead with project or not

F. Conclusion
In the Consultant’s opinion how does this project rate for the client?
Should the client focus on other opportunities that have a better return on investment or a lower overall risk?
If this project is highly recommended, what are the key factors which have persuaded the Consultant?

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