Executive Report

To: Sam, Lisa, and Lee

Green_Delivery_rus.com
Baltimore, Maryland

From: The “A” Team

Date: July 14, 2010

Dear Sam, Lisa, and Lee:

Thank you for the opportunity to assist in the plan and design of a “green” system for
Green_Delivery_rus.com, an ecommerce delivery service for busy and special needs
consumers. Enclosed you will find an outline encompassing the scope of the project, the
base line plan, costs and benefits, critical success factors, as well as a WBS (Work
Breakdown Structure) of the project. We have also included CPM and a Gantt chart.
The scope of this project will include designing and implementing an ecommerce
website. It will require the hiring of several key employees critical to getting the project
up and running.
We assess that the project will take longer than anticipated and will take approximately
six months and the schedule should be followed, ensuring that the scope of the project is
not expanded beyond its original intention. We have stayed within your estimated budget
of $500,000. We have developed a budget that will include the cost of human resources
required on the project, information systems required, both hardware and software, and
work space. There are many specific, inherent risks associated with information systems
projects but with proper management, they can be minimized. We have broken down the
risk factors by project size, project structure, and experience with technology. Also
included are some ways in which risk can be managed in order to ensure a profitable,
sustainable ecommerce venture. Our recommendations only pertain to the first phase of
the project. Should you decide to expand in 2012 to offering delivery in Virginia and
Delaware, we would be happy at the opportunity to consult for you on this second phase.
Finally, we have included some recommendations to ensure a successful project and
ecommerce business. Again, thank you for the opportunity to assist you.
1. Scope

To develop a “green” e-commerce delivery service for busy and “special needs” consumers.
This business will be developed in 2 phases. The first phase will contain referrals only for food,
medical appointments and transportation and will take one month to complete from start to
finish.
A. Product Description
a. Website Includes
i. Links to food delivery services
ii. Links to emergency doctor’s appointments
iii. Links to ride services to airports, friend’s home, regular appt., etc.
b. Does not Include
i. Actual food deliveries
ii. Actual setting of appointments
iii. Actual rides
B. Deliverables
a. Real-time payment processing
b. “Green” Software package
c. Domain Name: GreenDeliveryrus (no spaces)
d. Webhosting
e. Internet Merchant Bank Account
f. Digital Certificate (SSL Server Certificate)
g. Shopping Cart Software
h. Event Notification Software (Clickstream Tracking)
i. Counter and sales tracking software
j. “Green” Hardware
C. Assumptions
a. Working in an office environment
b. New business will be a full-time job for stakeholders
D. Phase II Expansion Project
This phase will begin in 2012 and will expand to Virginia and Delaware areas. At this
time, actual delivery of services on website will be implemented. Exact project for
expansion will be based upon data mining of customer trends.

2. Base Line Plan (See attached MS Project File)

3. Critical Success Factors

From our three meetings with the three stakeholders, we have gleaned the following most
critical CSF’s:

 Fast
 Easy Navigation/User-friendly
 Prompt customer service if problems arise
 24/7 access and assistance
 Attractive website
 Email Notification when payment is made
  Secure customer information
 Reliable referral websites (kayak.com, Peabody.com, etc.)

4. Resource Requirement
Costs: $467,098.34
Personnel: $231,446
 Network Engineer @ $54,441 annually from www.salary.com
 Web Designer @ $50,725 annually from www.salary.com
 Project Manager @ $82,000 annually from www.salary.com
 Analyst @ $43,951 annually from www.salary.com
Marketing cost @ $2,400 per year http://www.toddturner.com/cost-of-a-website.asp
Web Design: $51,450.79
 GreenDeliveryrus domain name @ $9.99 annually
 Internet Merchant Bank Account @ 14% of sales
o http://www.findmyhosting.com/web-resources/Articles/internet-
merchant.htm
 Digital Certificate @ $125
o http://www.online-commerce.com/tutorial2a.html
 “Green” Web Hosting @ $3.95 per month
o http://www.supergreenhosting.com/
 Payflow Pro (includes shopping cart software) through Paypal.com @ $249 start-
up, $59.95 monthly & $0.10 per transaction after 1000 transactions
o https://registration.paypal.com/productSelectionInit.do
New computer equipment: $5220.70
 5 Dell Optiplex 160 “green” PCs with supporting software w/ 3 year warranty and
support @ $874 each (including plant a tree option for each computer)
o http://configure.us.dell.com/dellstore/config.aspx?
oc=bpcw2zz&c=us&l=en&s=bsd&cs=04
 1 Dell wireless all-in-one printer/fax/copier @ $350 (same link as above)
 Cisco Wireless G Access Point PoE w/RangeBooster WAP200 @ $129
o http://cisco.links.channelintelligence.com/pages/prices.asp?
sSKU=WAP200&nRGID=2422
 Comcast Internet @ $19.00 first 6 months, $42.95 thereafter
o http://www.comcast.com/shop/buyflow2/productsexisting.cspx?
SourcePage=Internet&?SourcePage=Internet
Office: $176,580.85
 AT&T Phone Service @ $57.50 per month
o http://businessesales.att.com/sabnorder/sabn_pricing.jhtml;jsessionid=YS2
GRY1Z4441HQFIHOICKUGAVA3ZCJLW?_requestid=200556
 Gas/Electric @ $1890.85 annually
o http://www.nationalgridus.com/niagaramohawk/home/energyeff/3_calcula
tor_b.asp
 Grade B Office furniture @ $30,000
o http://www.officedesignconcepts.com/resources/furniturecosts.htm
 Rent of Office Space 1000 sq. ft. @ $12 per sq. foot; $144,000 annually
 o www.showcase.costar.com

Benefits: The PCs follow “sustainability” requirements. With an in-house Web Designer,
a “green” software system can be developed while using a “green” web hosting service
for the “go live.” The remaining budget can be used as salary for stakeholders so that this
business will become a full-time occupation immediately.

Sales: $109,500
Monthly subscriptions
 $6.95 per month, estimated Year 1 revenue: $69,500
Annual Subscriptions
 $40.00 per month, estimated Year 1 revenue: $40,000

Benefit: Having a subscription service will allow for easy revenue tracking. With the
expansion of the website more options can be put in at a later time. The cost of Peapod
Grocery delivery service ranges from $6.95-$9.95 and Safeway ranges from $6.95-
$12.95. Since this website will not include actual delivery service, and we estimate
delivery service needs on a weekly basis, we calculated a monthly fee of $6.95.

Cost/Benefit Analysis
Tangible
Reduced communication expenses: The acceleration of GreenDeliveryrus.com’s
businesses processes and reduction of administrative tasks online will result in a decrease
of expenses.
Personnel Reduction: GreenDeliveryrus.com operational benefits include reducing both
the time and personnel required to complete business processes, and reducing strain on
other resources.
Cycle Time Improvement (CTI): Cycle Time is the amount of time between a customer
placing an order and receiving the service. CTI will be achieved through improved
processes and the application of proven techniques and tools. E commerce will allow
Green_Delivery_rus.com to do business without the barriers of time or distance. One can
access the Internet at any time, day or night and order delivery services with a single
click of the mouse.
Reduced direct cost of sale: the direct cost-of-sale for an order taken from a website is
lower than through traditional means (retail, paper-based), as there is no human dealings
during the online electronic purchase order process.
Cash Flow Improvements: the Internet has the potential to expand
GreenDeliveryrus.com’s business into wider geographical locations. Using the Web to
sell GreenDeliveryrus.com’s services removes the physical boundaries from its customer
base. Customers from all over the world can learn about the company and order services
online. However, it is necessary to develop the appropriate supply chain channels to
support market demands generated by promoting GreenDeliveryrus.com to a larger
marketplace.

Intangible
Improved Customer Satisfaction: Improve customer service through online customer
databases such as CRM. Also, automation of customer orders will enable
GreenDeliveryrus.com to respond quickly to a customer’s request. Also, customer
satisfaction is measured through customer surveys.
Improved Supply Chain Operations: an effective supply chain management system
will shorten the delivery lead times, and customer inquiries on order status can be
answered immediately.
Cost/Benefit Analysis
An economic feasibility analysis was conducted to determine the time period that will
elapse before the cumulative cost savings will equal the incremental capital cost of
implementing GreenDeliveryrus.com. It was determined that the number of years
required for the GreenDeliveryrus.com project to pay for itself is 1.7 years, yielding a 58
percent simple return on investment. This is relatively a short period of time to break-
even considering the type of market GreenDeliveryrus.com is in. Based on this analysis,
it is, therefore, feasible for the GreenDeliveryrus.com project to proceed within cost
constraints.

5. WBS (See Attached Excel File)

6. CPM, project schedule, Gantt chart (See Attached MS Project File)

go to Project and click VIEW option

A. Click Gantt to view Gantt chart

B. Click network to see CPM (red color)

7. Risk Assessment

a. Project Size: Due to the small size of this project, with only 5 personnel,
the level of risk for a late completion is relatively low; however with a
smaller company, certain areas of expertise may be missed and certain
aspects of the project may be overlooked.

b. Project Structure: This risk is a little higher because the website will be
brand new and the stakeholders are new to the ecommerce environment.
Instructions are clear now, but with the expansion in 2012 of the website,
many changes may be desired. A list of documentation that summarizes
best practices for the project is crucial, emphasizing quality, not quantity.

c. Technology Experience: With an in-house network engineer and web

designer, the project will have the level of expertise needed to build a
profitable website. The only area of risk is with the lack of
marketing/advertising expertise within the 5 employees. In order for this
 site to succeed, we believe extensive research on similar companies,
advertising sources, search engine “keywords”, etc. needs to be done.

d. Dead links: One of the problem of e-commerce is dead links. These are
businesses that no longer exist. Risk is quite high in this economy since
restaurants failure rate is very high. If not addressed this could lead to
customer dissatisfaction.

e. Project viability: given the intense competition, it is possible any misstep

amy result in disaster or even bankruptcy. risk is quite high for such an
event happening since we are already behind the competition.

Risk Factors
System requirements:
 Poorly understood requirements at scheduling time
 Customer changes requirements
 Unexpected growth or decline for orders through site
 Scope creep
 Scope gap
 Integration defect(change due to unexpected behavior)
 Competitor websites
http://www.online-commerce.com/tutorial5.html
http://en.wikipedia.org/wiki/Identifying_and_Managing_Project_Risk

Controlling Risk
The key to controlling risk is to be sure the variables in the scope are clearly defined from
the inception of the project. It is also essential to define the WBS so that is easily
understood by all employees responsible for the project. Clear communication and
frequent meetings (2-3 times per week) will guarantee that any issues are promptly
addressed. Communication is vital to the success of the project.
The Project Manager needs to apply the plan, lead the team, and monitor the project
status to make sure any unforeseen variations do not hamper the scope or progress.
Contingency plans should be in place for all risk factors. The Project Manager should
include a list of “what ifs” for scope, resources, and scheduling.
Because a web designer and network engineer are being hired, the risk of technology
inexperience is low. It is recommended that web designer should periodically check the
links to mitigate problem related to dead links. It is recommended that partners follow
consultant’s advise carefully to avoid failure and bankruptcy.

http://en.wikipedia.org/wiki/Identifying_and_Managing_Project_Risk

Recommendations
 We recommend that Sam, Lisa and Lee hire a marketing team with some of their
remaining budget. Developing a strong marketing and advertising campaign for
their website is essential for them to be successful. An individual marketing
 specialist could also be hired as a full-time employee at a $50,880 salary through
www.salary.com.
 We recommend starting off the company with a free trial service for potential
customers. Similar to Netflix, the customer could have 2 weeks to try out the
service and see if it is something they want to continue. After that, they have an
option to sign up for monthly payments or a discounted annual payment.
 We recommend submitting the site to as many search engines as possible,
utilizing sites that have similar themes and a reciprocal link.
 Create an advertising banner and purchase space from a popular
website to display it.
 Word of mouth is very powerful on the Net; tell all of your friends and utilize
social networking sites such as Facebook, twitter etc.
 Make sure the URL is on all business correspondence, including emails
 Furthermore, we recommend a free month of access to our web service for
referring a friend who signs up for an annual subscription.
http://www.online-commerce.com/tutorial5.html

8. System Development Methodology:

Since this is an e-commerce, it should and can not wait too long to develop as
competition is already ahead of us. It is recommended to use prototyping approach
with RAD methodology using web development tools to expedite web site design and
operations. All or some steps shown in WBS maybe repeated in each prototype
iteration.

9. see below ( a simplistic version for the order system including future delivery)

(Modified previous submission)

Green_Delivery.com_rus.com’s ORDER SYSTEM
statistical CREDIT
report AGENCY
MANAGER

Account Account
verified verification

orders food/order ride,

appointment Order System

Pays using paypal,

credit card etc.
Contract

food delivered
(future)/confirmation of ride
and/or appointment

Payment approved/denied
Customer

resubmit payment