Memorandum
To: Marcus Kingo
From: Nikita Patel
Date: June 30,2014
Hello
Mr Kingo,
As
a follow up to the business meeting held last Tuesday with ‘RKR Consulting
group' with regards to upgrading our IT system, I believe they provided some thoughtful
insights for implementing PaaS as a suggested course of
action, which can be utilized in arriving at a final decision to improve the
operational efficiency in the current system and make
the customers satisfied which will ultimately facilitate the
expansion and lead us to a sustainable growth in the future.
As
per the preparation we had done before the meeting, we thought
of that as one of the solution in spite of considering the cost factor involved
in the implementation process. However after the presentation, the key take away from the discussion became
quite evident that most of the alternatives were possible solutions to our IT
infrastructure problem. However keeping in mind our decision making criteria such as cost, flexibility, implementation time, vendor support, and very importantly minimizing the complexity of the IT system on which we would
like base our final decision, it
became apparent that PaaS would be the most ideal option in upgrading our
IT system. We must consider the fact that although we are looking to grow the
franchise, we are still a small business operating in a unique
business environment that does not require the implementation of a
sophisticated and complex IT system that will need a
large infrastructure and understanding to support and operate the application.
The biggest benefit I
see for adapting to PaaS is that we can
easily franchise the business with this IT system since PaaS can migrate data
quickly. It will reduce company costs by saving on the maintenance of the
platform and we can get immediate updates and new features as and when available. Another benefit is that it takes only three days to implement the
software including data migration and it does not require long term contracts.
Last, but not least is to see how the cost of this option will affect our bottom
line. As per the consultants the
total implementation cost for PaaS will be about $ 36931. Taking into
consideration the cost involved in implementation, training the staff members, I analyze the comparison of the old business
model with the new business model to understand the future profitability of our
company JUNK VAN, and I believe we might see an increase in profit of not only about $
45,000 (36% of sales) as mentioned in the presentation but may be even more in the future years by taking the compounding effect of this initial investment.
The
above facts and evidence surely makes us take up the suggested route and upgrade our IT system to PaaS before we loose out our important customer base to other companies. Please do not hesitate to contact me for further details on the suggested alternative.
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