Course Project – SAI Toys
A Review of the IT System
The overview for SAI Toys is the company sells are manufactured in-house and shipped to brick-and-mortar retailers, such as Best Buy and Target, as well as e-Commerce only sites, such as ThinkGeek.com and Buy.com. The company has no direct interaction with the final purchasers (individuals) of their products other than through warranty service. SAI Toys is one of the leading manufacturers of products for Gifted Electrical Engineering Kids (GEEKs). SAI Toys consists of four distinct IT systems. They are Public Website, Manufacturing Support System (MSS), Human Resources System (HRS), and Sales and Marketing System (SMS). Public Website provides information about each of the products, locations where someone can purchase them, and information about how to get warranty support. Details of warranty support and defect rates are not tracked, but the staff has anecdotal stories.
The Manufacturing Support System (MSS) maintains the supply chain information necessary for manufacturing the company's products, such as raw materials, vendors, and prices. The Human Resources System (HRS) maintains and tracks personnel and benefits information. And the Sales and Marketing System (SMS) track the sales and marketing efforts of the company’s sales force. Orders from this system are printed and sent daily to the MSS to be filled. As a senior member of the IT Management Team for SAI Toys, I agree with the Board of Directors and the CEO decision to stay on the forefront of geekness, and therefore the company should integrate all of its IT systems. In addition, they want to develop a more robust Web presence and sell their products directly to individual customers in addition to selling through traditional retailers, as they currently are doing. My recommendation is that we need to hire more staff if SAI Toys want to stay on the forefront. The company needs to hire professional computer specialist. The integration of new the software into a newly expanded IT system which utilizes in some cases first generation coding on legacy hardware can create operational problems which in-house IT staff may be unable to solve. SAI Toys is not in the computer business. While computers are essential to the design, manufacture and marketing of their products, SAI Toys would be well served by having their IT systems vertically integrated and maintained in a cloud computing environment, eliminating most of their IT department employees in the process (Butcher, 2011). In this report, I will show how the company should go about implementing this executive directive. The report should include the following sections. The report will also outline the situation, weighs various alternatives, and I will presents a final recommendation for the company. The report will also include the current IT system, overview of the recommended system, the difference between In House and Outsourcing development, the stakeholders’ buy-in, the ERP project failed with lessons learned, and the company’s ROL & TCO. Current IT Situation
To evaluate SAI Toys, using the basic analysis techniques will help us to have an overview of the company and its environment. SWOT is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. SAI Toys SWOT Analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats).
The Strengths of SAI Toys are: Experienced and successful marketing team, High brand recognition for their unique products, Substantial 25 member IT team, and Quality control ensuring positive consumer feedback. The Weaknesses of SAI Toys are: Highly competitive marketplace, Extensive and continuing R&D investment, Cost containment, and Personnel costs for IT staff (Butcher, 2011). The Opportunities of SAI Toys are: Direct...