Running head: HWE ACCESSORIES WEBSITE 2
HWE ACCESSORIES 2
August 31, 2020
The Problem Statements
Being a small company, HWE Accessories is a business venture that deals with the selling and production of cell phone accessories, which include the screen covers to offer protection to mobile phone devices as well as portable phone cases. The majority of the sales made by the company currently are retail based as their website is quite simple as the website is informational only. As a result of this, HWE Accessories aims at adopting a more robust website which would enable their customers to be in a position of browsing the inventory, be in a place to compare its and consequently make purchases among other services the company feels is necessary to expand their sales and services delivery in general.
HWE Accessories, unfortunately, and due to its scale, lacks an internal Information Technology (IT) department. Nevertheless, HWE Accessories is in search of an IT manager whose primary job will come up with a business plan that would be employed in the creation of them to intend a new website. Additionally, the business plan formulated should consist of the problem’s state, situation analysis, cost-benefit analysis, the total cost of ownership, among other vital information.
The Analysis of the Situation
The current website if the company is full of limitation, especially because purchases of the goods produced by the company is not allowed for the customers. If the newer website is implemented, it will solve these issues by enabling the customers to be able to make direct purchases via the website. It is vital to note that HWE Accessories will be forced to subcontract and internal IT managers and departments as the company lack such in their position as a means of expanding their website.
Upgrading to a full E-commerce kind of business is a more significant move for the company; however, HWE Accessories must be in a position to have a just enough budget considering that the company is a small business company.
Going full e-commerce is easier said than done; this indicates that the company must do thorough research on requirements, both monetary and human sources, that are necessary for the accomplishment of the project. It means that the business organization must understand all the costs that will be brought forth by the upgrade as well as all the benefits relating to the implementation of the projects once completed. The company thus will employ a cost-benefit analysis. This kind of analysis will aid the company to analyze the decisions at hand through the scrutiny of all associated costs and the possible profits margin that the company will draw from the upgrade. Additionally, this technique will enable the HWE Accessories managerial team as well as involved stakeholders to account for the opportunity costs of their investment in the website investment
It puts into consideration the qualitative and quantitative factors in terms of financial analysis for the project, and its main objective is the accession of the soundness of the idea, thus creating bases for comparison. Additionally, the company will be able to get an IT department within their budget considering the scale of the business and aid in the evaluation and determination of whether the new website will push the company towards its goals. On completion, additional associated costs will be incurred during the implementation stage. Such costs involve the expenses related to technology, running costs, training costs, and consultancy support charges.
In this respect, several benefits are expected, which encompasses financial benefits such as increases sales, translating to increased revenue, and other services such as market expansion.
Preliminary Feasibility Study
To ensure that implementation of the project is successful, the HWE Accessories company must conduct a feasibility study which will act as the framework of the entire activity. Conducting the study is a crucial stage in any project as it aids in the analysis of the various state, thus being able to choose and come up with the best business state that is pocket friendly that is both financial and technological wise (Kingsley, 2018).
The use of a pre-feasibility study is to try and answer simple but factual answers concerning the entire project of the website upgrade of the business company. In simple terms, how practical is the proposed idea? From the conducted study, the project is a go and thus will proceed as planned as its completion will result in better service delivery of the business company
The preliminary feasibility study follows a systematic protocol that includes the initial analysis, income statement preparation, extensive market research, operations planning of the business (HWE Accessories). Balance sheet preparation, analysis of data, and finally, the ultimate decision to proceed with the website creation (Kingsley, 2018). A small scare company such as HWE Accessories, the feasibility study can answer queries such as will the company be in a position of an upgrade? The implementation resources required and answering these queries will aid in the grit of feasibility.
The Total Cost of Ownership
Considering that the company is not changing or adding any products, the eCommerce website triumph or fiasco depends on the outsourcing IT manger used, general resource requirements as well as user-friendliness. However, for the website to yield results as expected, the total implementation costs, as well as the ownership cost, which entails the acquisition prices of an asset concerning its operation, should be considered. To achieve TCO analysis, HWE Accessories should consider the charges based on expenses on capital and the projected operation costs, such as website maintenance.
Return of Investment
HWE Accessories ought to employ ROI as a means of measuring the among of return the new website will bring forth to the company. This can be achieved by considering the investment costs against their proposed revenue returns, and in this case, a span is not less than six months. The expectations are that through the website, the company will expand its borders and gain access to new customers, thus boosting their revenue returns (James, 2020).
Outsourcing an IT expert will aid the company in achieving the implementation of the proposed website as this IT manager chosen will create a customed website for HWE Accessories with the necessary information that the company wishes to relay to its customers through their new website. Additionally, upgrading their website will push the agenda of the company, especially now when technology advancements are at peaks and also the existence of a pandemic that has left the majority of the services being conducted online.
Mobile Phone accessories are a business venture that has the potential of generating massive revenue for the company primarily due to the increasing usage and ownership of mobile devices that are now more sophisticated and improved; thus, individuals have to protect them by fitting them with glass protectors and covers. Due to this, HWE accessories ought to enhance its website to be in a position to meet such requirements, especially as it is a small company that requires much exposure to the global market. Selling online has the potential of expanding the company to an even grander scale (Alexandra, 2020).
As an IT manager with the responsibility of handling the new website for the company, I would opt for a website developer who would develop and customize the website for HWE Accessories. The website can include all the latest and relevant information necessary to be accessed by customers, such as having a different section where a customer can create and be required for customized mobile cases of their liking and colors (Alexandra, 2020). Thus, in a nutshell, HWE needs the upgrade so that the company will be in a position to achieve its goals and mission for the future success of the business company in general.
Alexandra Twin. (2020, July 28). The total cost of ownership (TCO): Asset costs over the long term. Investopedia. Retrieved August 29, 2020, from https://www.investopedia.com/terms/t/totalcostofownership.asp
James Chen. (2020, April 27). Return on investment (ROI). Investopedia. Retrieved August 29, 2020, from https://www.investopedia.com/terms/r/returnoninvestment.asp
John Kingsley. (2018, January 21). The difference between the pre-feasibility study and feasibility study. LinkedIn. Retrieved August 29, 2020, from https://www.linkedin.com/pulse/difference-between-pre-feasibility-study-feasibility-john-kingsley
Will Kenton. (2020, July 7). How the cost-benefit analysis process is performed. Investopedia. Retrieved August 29, 2020, from https://www.investopedia.com/terms/c/cost-benefitanalysis.asp