Junk Van

The problem facing Junk Van is that the organization does not have a proper system in place to facilitate the efficient and accurate flow of job information.  The symptoms of this problem are the increased occurrence of errors during information transmission leading to forgotten jobs and unnecessary database shutdowns and maintenance.

Junk Van is experiencing rapid growth.  During its first year in business the firm doubled its annual revenue from $300,000 to $600,000 and expanded from one truck to five.  Junk Vans current resource planning process is unable to keep up with the current level of business demand.  Their billing methodology is working properly, a flat fee for service plus a per pound rate for junk disposal.  However, job scheduling, invoicing and cash collection methods are creating driver inefficiencies.  The job order system is broken as email transmission of information is often incomplete.

It’s evident that the information technology infrastructure that is currently in place is insufficient to support both current and future business growth.  Mr. Kingo wishes to keep the IT solution simple and economical.  Ease of use is a top priority.  However, Mr. Kingo’s long term plan for the organization is to expand using a franchising model which means the information system must be scalable. 

The decision criterion surrounding the problem includes the following:

·         Is the selected system easy to use?

·         Does the system enable the efficient and accurate transmission of information?

·         Is the database of information accessible remotely?

·         Is the solution scalable?

·         Does the solution align with long term business goals?

·         Does the solution make economic sense?

There a few solutions that should be considered.  They include MS Access which is a low cost solution with central server capabilities and remote access using VPN.  Mr. Kingo would need extra help to implement this solution as he is not confident in his ability to establish remote access using a VPN.  In addition this solution will satisfy the immediate demands of the organization but would be difficult to scale.

The second alternative would be to design a custom application which offers design flexibility and completely customized solutions.  However, since the solution is customized implementation may be delayed since the final product will most likely be subject to multiple revisions.  In addition long term support of a customized solution is an issue as Mr. Kingo would lock the firm in with the solution designer subjected the organization to lofty support fees.

The last alternative would be to use Platform as a Service which is offers cloud computing infrastructure, remote access through an internet connection, the use of both common and customizable applications, the ability to easily create forms and tables could easily be built, manageable service costs $300-$600 per month, add one professional customization support for $180.00 per hour, no long term contract and the solution is scalable.

Weighing the decision criteria identified above we can see that Platform as a Service satisfies all of the predefined criteria.  As seen during an onsite demonstration forms can be easily created and linked to each other which will enable information to be entered, stored and analyzed efficiently.  Since templates can be easily created structured forms can be used for data input and transmission which will insure timely and accurate communication of information.  Platform as a Service uses cloud based computing which enables access though any internet connected device.  The solution is customizable which enables the system to be scaled to match the growth of the organization.  A typical IT budget is 5% of gross revenue.  Junk Vans current annual revenue is $600,000.00 x 5% = $30,000.00 /12 months = $2,500.00 per month.  Platform as a service solution makes economical sense as the implementation costs are well below the industry standard budget for IT services of 5% allowing budget space for customization and hardware upgrades.

Once a platform service provider is selected, database migration will need to occur.  Once a new database is established, custom job and invoicing forms can be created.  The forms will be accessible to the appropriate employees though the cloud.  Drivers will be provided with Wi-Fi enabled tablet devices which will provide access to the cloud.  All job information will be posted in the could enabling drivers to access the cloud at anytime to see current and future work schedules.  When a job is complete drives will update the job forms in the cloud and submit them for processing.  Data clerks will review the completed job forms before submitting the form to AP.  Once in AP invoices will be automatically generated and emailed to the customer.  Customers who do not have email will receive a hard copy of the invoice in the mail. Payroll will be processed from the hours logged into the job forms and paycheck information will be transmitted to Mr. Kingo for review and approval prior to checks being issued.  The Platform as a Service solution will streamline Junk Vans operations, support the current level of business and offer a scalable solution for long term growth.