Overview For this Capstone, you will create a multi-media portfolio that showcases your ability to apply your knowledge and skill in authentic ways in three of the following areas of….
New technology is always being introduced. Create a list of 2 of the most important criteria that would help an organization determine when to upgrade or make a technological investment
- Question #1
- New technology is always being introduced. Create a list of 2 of the most important criteria that would help an organization determine when to upgrade or make a technological investment.
- One of the most important criteria for deciding to make an investment in technology is considering the cost benefits of a new system (Johnson, Leenders, Flynn p. 99). What does the current process cost and what will the technology save the company in terms of time, money, expertise? There are many benefits to new technology, including cost reductions, efficiency increase, accessibility, better communications, accuracy, integration, and monetary tracking. But these will have to be weighed against the price of the system and the effort in using a system that takes time and energy to use correctly. If the technology fits the size and work that the organization already does, meaning, the technology is not meant for a much larger company, then the cost benefits will be the most important deciding factor. If the technology is prohibitively expensive, then this will not serve the organization. There are technological options for nearly every type of work task that exists, an organization could us all their resources purchasing technology. On the other hand, if the organization has the money and would like to stop spending their resources on people hand working certain processes, then technology could be a huge improvement. And example of this would be to have an accounting system that helps the organization keep track of their finances where they will have significantly less accounting personnel than if they did not have the software.
- Another critically important criteria is considering how complex the process the technology is meant to replace. Also, with the projected future of the company due to organizational goals, will the process continue to get even more complex? With using a technological tool instead of hand made process, it will be more efficient, exact, and there are many things a software tool can easily and automatically generate. For example, if the procurement process is complex, then purchasing an e-procurement system would be wise to reduce error, streamline certain processes in procurement, track money spent, provide metrics for what is purchased and what money is spent (p. 103). This is a complex process including many people at various levels of the organization, so being able to provide visible data on a large amount of the organization’s spend is very valuable to the organization. However, some technology is simply a nice to have where the process it is meant to replace is not complex, and is not visible to many different people who need to know critical information. Asking the question of complexity will help the organization to purchase the right technology for their needs.
You have been tasked to secure the latest technology for the sales force coming on board in the next six months. Compare and contrast 2 different approaches to securing the latest technology at the very lowest price.
The type of procurement used for purchasing an item should depend on the specifics of that item and the time and effort related to that type of procurement. In order to purchase technology for the sales force of an organization within 6 months, this will restrict the possible types of procurement.
- RFQ: If the sales force technology is a commercial product that multiple vendors sell, but is a higher dollar item, then the process that makes the most sense is the Request for Quotation (RFQ) (p. 84). In the RFQ, the description of the item needed is very clear and easily understood, such as for a commercial product. In the RFQ, a form is filled out, then sent electronically to potential suppliers. In the selection of the winner, the quotes are gathered and compared against each other to select the vendor based on price (pg 84). This process takes time, but is reasonably quick to stick to the 6 month timeline, and is best suited for larger dollar items..
- Reverse auction: In the Reverse Auction, the potential vendors will bid against each other via an online tool. This method can help the buyer get the rock-bottom price for the item they are purchasing. For this type of procurement, the requirements will need to be specific and clear, there needs to be multiple and willing vendors, and a reasonable reserve price (p. 108). In the Reverse Auction event, the bidders can see the bids the other bidders have put in, and they will automatically see their bid in relation to other bidders. While this can get the lowest possible price, there are several potential issues with this type of procurement process. Some include: the buyer taking unreasonably low bids, suppliers can collude, the buyer can ruin some of their supplier relationships, and this process takes much preparation and time to execute, unlike the RFP process.
- Question #2
New technology is always being introduced. Create a list of two (2) of the most important criteria that would help an organization determine when to upgrade or make a technological investment.
When a business is looking to upgrade or even begin to start using technology, there are a few things that need to be viewed at such as; what are their needs, what type of company are they, and what is the company hoping to gain from the technology. A business needs to look at software, both the operating system and applications. Application software will help the business in everyday activities, such as looking at supplies records, seeking inventory levels and reports from the last quarter’s production. Operating systems is how the computer systems will run, as well as hooking up compatible devices such as printers and hard drives.There also needs to be an understanding of what level if information systems the company is seeking. Is the company small enough that it only requires an executive support system ESS level system, or so large that the business needs a fully operational level system? The benefit of having a technological system is there is a more accessible electronic trail of what is currently being worked on and past projects.
You have been tasked to secure the latest technology for the sales force coming onboard in the next six months. Compare and contrast two (2) different approaches to securing the latest technology at the very lowest price.
First: What type of sales will be conducted, and how can the new system most benefit the company? If the company is a local business that has a storefront but also sells on the internet than it would need different technology than a business with only a storefront. I would first look at what technology and programs are coming out in the next six months, and also contact different suppliers on what quotes they can give; I would also ask if there is an added expense for extra IT help and if so what is that? There would be a lot of research of all programs to make sure it will be suitable in the operations of the company.
Second: Being tasked to find new technology for the sales force I would look at possibly just upgrading the current software, this could be a much cheaper way to go rather than implementing a whole new software system. I would contact our current software company and ask about up and coming upgrades and how much it will cost. Sometimes upgrading current software will be far less expensive than getting a whole new system.