Development Of Cloud-Based ERP System For Blach Construction Company

System Vision and Problem Description

The paper mainly reflects on the development of cloud ERP system within the organization “Blach construction company” which is one of the construction company of Australia that has its offices in Silicon Valley and Central coast. It is identified that the organization uses ERP system in order to manage its operations. However, the use of ERP system creates number of challenges as well as issues including expensive installation, resistance in sharing data, difficulty in using the system as well as problem is accessing information outside the office. In order to resolve the problem, the organization wants to move its ERP system within cloud so that the operations of the organization can be managed quite effectively.

1.2 System capabilities

 The system capabilities of the cloud-based ERP system mainly include:

• Customization of work
• Migrating the data and information into cloud
• Transferring knowledge as well as technology
• Checking the infrastructure of cloud

1.3 Expected business benefits

  The benefits that are expected from the development of cloud-based ERP system are elaborated below:

   Access from anywhere: It is found that important information and data of the organization can be accessed from anywhere, anytime by the staffs as well as customers of the organization.

    No staff time: No staff time is mainly needed for maintaining or upgrading the hardware the organization grows.

 Current functionality: Current functionality is always present as the cloud vendor maintains as well as updates the software.

 Backup: Data can be quite easily backed up with the help of proper disaster recovery plan of the organization.

2. Quantify project approval factors

2.1 Time that is estimated for completion of project

  The time that is generally required for the cloud ERP system development is generally given in the below table.

WBS	Task Name	Duration	Start	Finish
0	Development of cloud-based ERP system in Blach construction company, Australia	85 days	Thu 22-11-18	Wed 20-03-19
1	Initiation phase	15 days	Thu 22-11-18	Wed 12-12-18
1.1	Development of project business plan	3 days	Thu 22-11-18	Mon 26-11-18
1.2	Cost benefit analysis	3 days	Tue 27-11-18	Thu 29-11-18
1.3	Establishing the charter for the project	4 days	Fri 30-11-18	Wed 05-12-18
1.4	Recruiting the staffs	5 days	Thu 06-12-18	Wed 12-12-18
1.5	Milestone 1: Completion of initiation phase	0 days	Wed 12-12-18	Wed 12-12-18
2	Planning phase	24 days	Thu 06-12-18	Tue 08-01-19
2.1	Developing the plan for the project	3 days	Thu 06-12-18	Mon 10-12-18
2.2	Developing plan for project resources	2 days	Tue 11-12-18	Wed 12-12-18
2.3	Development of financial plan	4 days	Thu 13-12-18	Tue 18-12-18
2.4	Developing project quality plan	3 days	Wed 19-12-18	Fri 21-12-18
2.5	Planning for risk management	2 days	Mon 24-12-18	Tue 25-12-18
2.6	Project acceptance planning	3 days	Wed 26-12-18	Fri 28-12-18
2.7	Project communication plan	4 days	Mon 31-12-18	Thu 03-01-19
2.8	Developing plan for project procurement	3 days	Fri 04-01-19	Tue 08-01-19
2.9	Milestone 2: Completion of planning phase	0 days	Tue 08-01-19	Tue 08-01-19
3	Execution phase	41 days	Wed 09-01-19	Wed 06-03-19
3.1	Identifying the requirements for the business	5 days	Wed 09-01-19	Tue 15-01-19
3.2	Cloud based ERP system	4 days	Wed 16-01-19	Mon 21-01-19
3.3	Customization of work	4 days	Tue 22-01-19	Fri 25-01-19
3.4	Data migration	5 days	Mon 28-01-19	Fri 01-02-19
3.5	Checking of infrastructure	4 days	Mon 04-02-19	Thu 07-02-19
3.6	Customization	3 days	Fri 08-02-19	Tue 12-02-19
3.7	Managing change	4 days	Wed 13-02-19	Mon 18-02-19
3.8	Transfer of knowledge and technology	4 days	Tue 19-02-19	Fri 22-02-19
3.9	Testing of project management	3 days	Mon 25-02-19	Wed 27-02-19
3.10	Testing system integration	2 days	Thu 28-02-19	Fri 01-03-19
3.11	Testing user-acceptance	3 days	Mon 04-03-19	Wed 06-03-19
3.12	Milestone 3: Completion of execution phase	0 days	Wed 06-03-19	Wed 06-03-19
4	Closing phase	10 days	Thu 07-03-19	Wed 20-03-19
4.1	Reviewing the project	4 days	Thu 07-03-19	Tue 12-03-19
4.2	Sign off the project stakeholders	4 days	Wed 13-03-19	Mon 18-03-19
4.3	Post go-live support	2 days	Tue 19-03-19	Wed 20-03-19
4.4	Milestone 4: Completion of closure phase	0 days	Wed 20-03-19	Wed 20-03-19

2.2 Development cost of the project

 The budget that is generally needed in order to develop the cloud-based ERP system are provided below.

WBS	Task Name	Duration	Resource Names	Cost
0	Development of cloud-based ERP system in Blach construction company, Australia	85 days		AUD49,440.00
1	Initiation phase	15 days		AUD3,800.00
1.1	Development of project business plan	3 days	Project planner, Project manager	AUD1,320.00
1.2	Cost benefit analysis	3 days	Financial manager	AUD480.00
1.3	Establishing the charter for the project	4 days	Project planner	AUD800.00
1.4	Recruiting the staffs	5 days	Project manager	AUD1,200.00
1.5	Milestone 1: Completion of initiation phase	0 days		AUD0.00
2	Planning phase	24 days		AUD9,960.00
2.1	Developing the plan for the project	3 days	Project planner, Supervisor	AUD1,128.00
2.2	Developing plan for project resources	2 days	Project planner, Financial manager, Human resource manager	AUD1,040.00
2.3	Development of financial plan	4 days	Project planner, Financial manager	AUD1,440.00
2.4	Developing project quality plan	3 days	Supervisor, Financial manager, Risk analyst	AUD1,488.00
2.5	Planning for risk management	2 days	Risk analyst, Tester	AUD624.00
2.6	Project acceptance planning	3 days	Project planner, Supervisor	AUD1,128.00
2.7	Project communication plan	4 days	Project planner, Supervisor	AUD1,504.00
2.8	Developing plan for project procurement	3 days	Project planner, Supervisor, Financial manager	AUD1,608.00
2.9	Milestone 2: Completion of planning phase	0 days		AUD0.00
3	Execution phase	41 days		AUD33,520.00
3.1	Identifying the requirements for the business	5 days	Supervisor, Database manager, Human resource manager	AUD2,480.00
3.2	Cloud based ERP system	4 days	Supervisor, Technical engineer	AUD1,344.00
3.3	Customization of work	4 days	Risk analyst, Technical engineer, Project planner, Additional cost[1]	AUD14,080.00
3.4	Data migration	5 days	Database manager, Technical engineer, Tester	AUD2,360.00
3.5	Checking of infrastructure	4 days	Supervisor, Risk analyst, Technical engineer, Tester	AUD2,592.00
3.6	Customization	3 days	Database manager, Project manager, Technical engineer	AUD1,680.00
3.7	Managing change	4 days	Project planner, Supervisor, Database manager, Risk analyst, Technical engineer	AUD3,424.00
3.8	Transfer of knowledge and technology	4 days	Supervisor, Database manager, Risk analyst, Technical engineer	AUD2,624.00
3.9	Testing of project management	3 days	Risk analyst, Tester	AUD936.00
3.10	Testing system integration	2 days	Supervisor, Database manager, Technical engineer	AUD992.00
3.11	Testing user-acceptance	3 days	Supervisor, Technical engineer	AUD1,008.00
3.12	Milestone 3: Completion of execution phase	0 days		AUD0.00
4	Closing phase	10 days		AUD2,160.00
4.1	Reviewing the project	4 days	Project planner	AUD800.00
4.2	Sign off the project stakeholders	4 days	Project manager	AUD960.00
4.3	Post go-live support	2 days	Project planner	AUD400.00
4.4	Milestone 4: Completion of closure phase	0 days		AUD0.00

2.3 Estimated annual operating costs

 The operating cost that is generally needed by the cloud-based ERP system are provided below.

Recurring expenses	Amount
Hosting in the server	$6,000
Internet connection	$3,000
Training	$3,000
Renewal (Equipment)	$3,000
Total Costs	$15,000

2.4 Cost benefit analysis

2.4.1 Anticipated benefits

  The benefits that are achieved from the cloud-based ERP system deployment are given below. It is found that the anticipated benefits generally include both tangible as well as intangible benefits.

Tangible benefits:  The tangible benefits that are achieved from the cloud-based ERP system development are listed below.

• Provide access of information from anywhere irrespective of the location
• Reduces staff employment
• Reduces extra expenses on various technological needs

Intangible benefits: The intangible benefits which are generally achieved from the cloud-based ERP system development are provided below:

• Enhancing satisfaction level among the staffs as they can get access of information even from their home
• Keep the inconsistencies as well as glitches away
• 2.4.2 Table for estimated annual benefits

  The benefits that are generally achieved annually due to the cloud-based ERP development is showcased in the below table.

Benefit	Amount
Faster implementation	$5,000
Fast performance	$7,000
Minimizing technological expenses	$6,000
Reduction in the number of staffs	$6,00
Total amount	$24,000

3. Perform a risk and feasibility analysis

3.1 Determining feasibility and organizational risks

 The organizational feasibility and risks which are mainly related with the project are generally elaborated below:

Data security: This is considered as one of the biggest issues that is related with the cloud ERP. It is found that when the information is made web accessible then the problem of data breaches become of the legitimate concern. Thus, the organization faces number of security related issues.

Cost consideration: It is found that though the overall solution of cloud is considered to be very much cost effective but the organization faces financial issue when long term cost for licencing of cloud ERP system is required. When the organization wants to move to cloud the organization initially needs to spend certain amount of money for getting the license.

System Capabilities

Inability to adapt: In spite of the intention of moving to the cloud, unfamiliarity as well as inability to adopt the new information system by the organizational staff is seen due to lack of preparation. Thus, the staffs who generally have very much limited information as well as knowledge related with technology generally creates difficulties for adopting the system.

3.2 Evaluating technological risks as well as feasibility

 The employees who are mainly associated with the organization are provided with proper training facility of 2 days if it is quite difficult for the employees of the organization to manage the operations in cloud. Additionally, both video as well as presentation resources are generally shared among the staffs so that the employees can get proper idea about how the organizational operations will be managed for stored. Moreover, the resources also help in providing proper idea about the process of data recovery in case of any problem.

 It is found that for checking the feasibility of the cloud-based ERP system, it is very much necessary to test the ERP system for making sure that the entire operations as well as functions of the organizations can be effectively managed.

3.3 Asses resource risks and feasibility

It is analyzed that it is quite necessary for the organizational staffs to properly understand the roles as well as responsibilities which are mainly needed for executing each of the project tasks in order to develop the cloud ERP system. If the employees are unable to analyze the needs as well as requirements for cloud ERP system development there is number of probabilities of risk occurrences.

3.4 Identify schedule feasibility and project risks

If the schedule of the project is not  properly managed then it is analyzed that there is a high chance that the project will not get completed within the time that is expected and thus in order to finish the project, it is quite necessary to extend the completion date of the project. Extension in the project time generally enhances the cost that is associated with the project which further creates financial issues. For resolving the issues, it is quite important to schedule the project activities so that the cloud ERP can be developed within the expected budget and time.

4. Project environment establishment

4.1 Information outlined in the table.

Information capture

Information capture	Electronic tools	User accessibility
Project schedule	MS-Project	Project manager
Annual cost associated with project operation	MS-Project	Project manager
Annual benefits from the project	MS-Project	Project Manager
Project status	MS-Project	All user
User documentation	MS-Word	All User
Design specification	Microsoft Visio	Project manager

4.2 Describe the work environment

   The work environment is quite important for completing the project successfully. The tables that are provided below reflects on the various types of resources which are generally needed for the work environment of the project

Hardware and software

Item	Description	Resource
Server	Dell PowerEdge T440 Tower Server	Blach construction company (Expense)
Computers	Dell inspiron 3477 and Dell inspiron 5000	Blach construction company (Expense)
MS-Project	Microsoft Project 360	License-Owned by author
MS-Word	Microsoft Word 360	License-Owned by author
MS-Visio	Microsoft Visio 360	License-Owned by author

Support Staff

Item	Description	Resource
Admin Staff	Organizational staff	Blach construction company

4.3 Description of the procedures and processes that will be utilized

  The procedures as well as processes which are generally needed in the project are generally elaborated below:

  Testing: Testing the performance will be done for making sure that the cloud ERP system will be capable of managing the organizational operations and functions of the organization quite effectively. If any case of technical failure is seen, then it is necessary to make improvements.

Expected Business Benefits

Documentation: All the information as well as details that are mainly associated with the meetings, feedback as well as design specification are generally documented for keeping record so that the information can be used in the future when needed.

Deliverables: After completion of the project, the Blach construction company can be able to store the organizational data within cloud and thus if the staffs of the organization want to access information can easily access data irrespective of time and location. This assists in increasing flexibility of the staffs. Moreover, the data and information of the customers are stored properly on the cloud and additionally the information recovery facility is also provided with the help of cloud ERP.

5. Schedule the work

5.1 Work breakdown structure

The structure of work breakdown is given below:

WBS	Task Name
0	Development of cloud-based ERP system in Blach construction company, Australia
1	Initiation phase
1.1	Development of project business plan
1.2	Cost benefit analysis
1.3	Establishing the charter for the project
1.4	Recruiting the staffs
1.5	Milestone 1: Completion of initiation phase
2	Planning phase
2.1	Developing the plan for the project
2.2	Developing plan for project resources
2.3	Development of financial plan
2.4	Developing project quality plan
2.5	Planning for risk management
2.6	Project acceptance planning
2.7	Project communication plan
2.8	Developing plan for project procurement
2.9	Milestone 2: Completion of planning phase
3	Execution phase
3.1	Identifying the requirements for the business
3.2	Cloud based ERP system
3.3	Customization of work
3.4	Data migration
3.5	Checking of infrastructure
3.6	Customization
3.7	Managing change
3.8	Transfer of knowledge and technology
3.9	Testing of project management
3.10	Testing system integration
3.11	Testing user-acceptance
3.12	Milestone 3: Completion of execution phase
4	Closing phase
4.1	Reviewing the project
4.2	Sign off the project stakeholders
4.3	Post go-live support
4.4	Milestone 4: Completion of closure phase

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