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IT Strategy, Design

and Implementation
for Easy2Grocery
Submitted By : Group 14
Ravi Prakash(UM15163)
Rosali Pujapanda(UM15164)
Roshni S(UM15165)
Sagnik Sen Gupta(UM15166)
Sarthak Dash(UM15168)
Sarthak Pujari(UM15169)
Saurav Agarwal(UM15170)
AGENDA
VMG Framework

Industry Analysis

Process Flow Diagrams

Issues and Challenges faced by the company

Issues and Challenges faced for cloud adoption

Cloud ROI

When Not-to-go for cloud


VMG
FRAMEWORK
Vision
To be a one stop shopping destination for
all your shopping needs and be the
leading online retailer in East India

Mission
To provide a superior customer service
and a pleasurable shopping experience
through high quality products and
understanding customer needs
Goals

Sales: Achieve 50 online orders per day in next 12


months
Operational: Deliver within 3 hours of order across
Bhubaneswar in 12 months
Website: Transform the website into an efficient
and intuitive navigation structure
Customer Care: Enhance customer service and
increase customer retention by 20% in 6 months
Marketing: Increase online marketing reach by 50%
in next 3 months
INDUSTRY
ANALYSIS
Industry Analysis

Political:
Advantage of being a planned city - Govt. continuously
trying to improve the standard of living of people
2015: World Bank finds Bhubaneswar best place to do
business in India

Economic:
Several companies establishing offices in Bhubaneswar
off late, employment opportunities and hence high
disposable income
High proportion of youngsters from colleges in and
around Bhubaneswar with propensity towards spending
Social
Target group - Housewives, the elderly and the differently
abled. Level of computer literacy is low
Opportunity with college students can be explored

Technological:
Most mobile service providers present in Bhubaneswar, also
4G coming up
Limited options for broadband service providers (Ortel and
BSNL) both with poor service. But off late blooming e
commerce has increased demand and competition is expected
to increase

Legal:
Lack of a national ecommerce policy framework - multiple
interpretations of tax computations and hence chance of
double taxation
PROCESS
FLOW
DIAGRAMS
L0 LEVEL
L1 Level
L2 LEVEL

Procurement

Cash and Carry


Order Processing

Reverse Order

Online Purchase
ISSUES AND
CHALLENGES
FACED BY
COMPANY
1. Low internet penetration in Bhubaneswar

2. Mode of Payment

COD mostly preferred due to lack of trust

Low penetration of Debit/Credit card.

3. Logistics

Postal Address Standardization Spamming

Coupling of orders to reduce logistics cost


Viruses
4. Technical Issues

Denial of Service

Unauthorized Access Theft and Fraud

5. Telecommunication Infrastructure

6. Availability of Skilled Workforce

Low Retention Rate and High Attrition


Social Challenges

COMPUTER HIGH RETURN OF


LITERACY GOODS

Target group as in Very difficult to match


women and differently the expectations of the
abled are not particularly customers as most of
computer literate in tier II them are first time users.
cities like Bhubaneswar.

LACK OF CREDIT ABSENCE OF POLICY


POLICY FRAMEWORK
Lack of flexible credit
policy based on trust as Unnecessary tax burden
compared to the local due to lack of
kirana stores (Mostly standardized policy
preferred by people who framework.
want to pay on a monthly
basis)
ISSUES AND
CHALLENGES
FACED FOR
CLOUD
ADOPTION
Framework to evaluate issues/challenges in cloud computing
adoption **Percentage of
companies facing E-commerce/E-
Challenges mentioned challenges retailing Easy2Grocery
Implementation-transition/integration costs too
high 33% Very likely Likely
Integration with existing architecture 31% Likely Likely
Data loss and privacy risks 30% Likely Likely
Unlikely
Loss of control 30% Neutral (SLAs)
Lack of visibility into future demand, associated
costs 26% Very Likely Likely
General security risks 26% Likely Likely
Lack of standards between cloud providers Neutral
(interoperability) 26% Likely (SLAs)
Neutral
Transparency of operational controls and data 18% Likely (SLAs)
Legal and regulatory compliance 18% Likely Neutral
Risk of intellectual property theft 21% Unlikely Unlikely
Overall trend Moderately low Moderate Low
Easy2Grocery faces moderate downtime risk due to connectivity issues

**Source: KPMG
CLOUD ROI
ROI FOR SAAS IMPLEMENTATION

On-premise Cloud-based

Unit Qty Cost/unit Total Cost/yr Unit Qty Cost/unit/month Total Cost/yr
CAPEX (initial) (Rs.) (Rs.) (Rs.) (Rs.)
Storage TB 1 5,000 5,000 TB 0
ManPower Rs/resource/month 2 5,500 11000 Rs/resource/month 1 5,500 5,500
Migration Cost 3,000
Total CAPEX 16,000 8,500
OPEX (annual)
Software (POS app) Nos 4 5,800 23,200 Nos 1 2,000 24,000
Infrastructure Maintenance % of total cost 10 500 % of total cost 0

Total OPEX 23,700 24,000


Total/yr 39,700 32,500
Savings on Cloud 7,200
ROI in %age 22.15

Database server as capital expenditure (CAPEX) and the buying of the software application licenses on yearly
contracts or taking the application as Software-as-a-Service (SaaS) (pay-as-per-use) as operational expenditure
(OPEX).
Savings and cloud ROI for 5-year period

On-premise Cloud-based Cumulative


CAPEX OPEX Cumulative CAPEX OPEX Cumulative Savings Y-o-Y Savings
(initial) (annual) Cost (initial) (annual) Cost (Rs.) (Rs.) (%) ROI
Year 1 16,000 23,700 39,700 8,500 24,000 32,500 7,200 18.14 22.15
Year 2 23,700 63,400 24,000 56,500 6,900 10.88 12.21
Year 3 23,700 87,100 24,000 80,500 6,600 7.58 8.20
Year 4 23,700 1,10,800 24,000 1,04,500 6,300 5.69 6.03
Year 5 23,700 1,34,500 24,000 1,28,500 6,000 4.46 4.67
ROI FOR IAAS
IMPLEMENTATION
On-premise Cloud-based
Unit Qty Cost/unit Total Cost/yr Unit Qty Cost/unit/month Total Cost/yr
CAPEX (initial) (Rs.) (Rs.) (Rs.) (Rs.)

Storage TB 1 5,000 5,000 TB 0


ManPower Rs/resource/month 2 5,500 11000 Rs/resource/month 1 5,500 5,500
Migration Cost 3,000
Total CAPEX 16,000 8,500
OPEX (annual)
Storage TB TB 1 500 6,000
Software (POS app) Nos 4 5,800 23,200 Nos 1 750 9,000
Infrastructure Maintenance % of total cost 10 500 % of total cost 0
Total OPEX 23,700 15,000
Total/yr 39,700 23,500
Savings on Cloud 16,200
ROI in %age 68.94
Both the server purchased from Amazon as IaaS and the POS application software from Intuit as
OPEX.
Savings and cloud ROI for 5-year period

On-premise Cloud-based Cumulative


CAPEX OPEX Cumulative CAPEX OPEX Cumulative Savings Y-o-Y Savings
(initial) (annual) Cost (initial) (annual) Cost (Rs.) (Rs.) (%) ROI
Year 1 16,000 23,700 39,700 8,500 15,000 23,500 16,200 40.81 68.94
Year 2 23,700 63,400 15,000 38,500 24,900 39.27 64.68
Year 3 23,700 87,100 15,000 53,500 33,600 38.58 62.80
Year 4 23,700 1,10,800 15,000 68,500 42,300 38.18 61.75
Year 5 23,700 1,34,500 15,000 83,500 51,000 37.92 61.08
WHEN NOT
TO GO FOR
CLOUD
The factors which needs to be considered while
deciding not to go for cloud are :
Internet Connectivity :

If you have slow or unreliable internet connection ?

Is your internet connection reliable (no disconnections or outages in the last?

IT Infrastructure and Staffing :

Do you know where to go when you have a more complex technology issue?

If every system in your office requires a unique set up, and everyone has
their own applications, then putting your desktops in the cloud may not be
right for you

Remote Access:

Do you have staff members who work remotely?

Do staff members often travel or conduct their work in the field (client visits,
etc.)?
If you have just invested in new hardware, it may be best to wait
and plan to go to the cloud once you have the need.

If you don't have staff members or contractors with extensive


experience or technical knowledge to manage servers and
server based softwares

Organisational Culture :
If your staff members are not open to changes in technology

Physical Resources:

Do you have servers and available storage space on them?

Are your computers reliable enough for staff members to do the


work they need to do?

Are the operating system(s) on your computers current enough


to run most modern software? (Windows 7 or later)
THANK YOU