Too Far Ahead of the It Curve?

Topics: Strategic management, Application software, Enterprise resource planning Pages: 8 (2648 words) Published: February 9, 2013
Question 2:
Date: January 24, 2013
To: Manager
From: Van Student, Business Analyst
Subject:Discuss options in regards to the delay in implementation of the new system Please see the summary of the issues that arise because of the implementation delay, and the evaluation of possible course of options to resolve them. Current issues:

The project has gone far over budget and over schedule. And yet in its final stage, we still face additional cost in new software licensing. In the mean time, we also need the resources in place to launch the new product after years of research and development. We do not have enough cash for both, so the decision here is whether to delay the launch of the new product, or choose to allocate the cash to the project. A solution was suggested by the lead developer that we could bypass the new software licensing cost by connecting to his company’s server. It is only a temporary solution so we could have enough time to straighten out the cash flow issue. However the dilemma is that is it ethical to do so? If we follow his advice, what are the consequences of such action? Here are some possible courses of actions:

1/Follow the developer’s proposal: The immediate benefit is that it will allow time to solve the cash flow crisis. However, it is violating the Code of Ethical Principals and Rules of Conduct of CGA Association. The first Rule of Conduct is Responsibilities to Society and according to CEPROC, as members of society, we have the responsibility to safeguard and advance interest of society. Accessing the software through the developer’s server is an unlawful activity under that rule. The cost saving in licensing will not be enough for the possible financial and reputation damages that it will bring if the activity was found out, and we could possibly face lawsuits from Microsoft. That would put the company’s credibility at risk. We also set bad behaviour for our employees. 2/If we do not follow his proposal, we now face the following two alternatives: A – Allocate cash to the IT project: Since the project is already in its final stage, it will finally be up and running. However, delaying the launch of the new product will certainly impact our reputation. The stake is quite high here because given the mandate of our company is to reduce pesticides; it is very beneficial to bring this product to the market as soon as possible because of the huge benefits that it is bringing to farmers locally and worldwide. Our company reputation and credibility will be increased and this would bring tremendous benefits to company in the long term. Efforts and resources have already been dedicated to the product for a long time, delaying it might have some negative effects on staff morale. B – Launch the product: The advantage of this choice is that the faster we introduce this product to the market, the more beneficial it will be for all the stakeholders involved such as: farmers, research and development team, and our company credibility. However, delaying the project may incur further cost in renewing old software licenses for the system. In the end, the total cost of the project might outweigh the benefits that it intended to bring. Any decision should follow the two criteria:

1/ As a company and a member of society, we must operate in an ethical and responsible way. Operating ethically will gain trust and credibility. And that will be beneficial to the company in the long run. 2/ The benefits and interests of the organization as a whole should be the basis for any decision. Recommendation:

I would recommend not following the developer’s proposal as doing so would violate ethical rules of conducts. And the best option would be to launch the product instead of pouring more cash into the IT project. As launching the products would be more beneficial to the company as whole. We should also have to sit down and re-evaluate the IT project, to see where it went wrong, and then determine...
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