Module 2: Conducting Project Research Contents Overview Lesson: Determining Design Criteria Lesson: Creating a Design Plan 12 Review 21 Lab A: Conducting Project Research 23 Information in this document, including URL and other Internet Web site references, is subject to change without notice Unless otherwise noted, the example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein are fictitious, and no association with any real company, organization, product, domain name, e-mail address, logo, person, place or event is intended or should be inferred Complying with all applicable copyright laws is the responsibility of the user Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property  2001 Microsoft Corporation All rights reserved Microsoft, Windows, BackOffice, BizTalk, FrontPage, Hotmail, PowerPoint, Visual Basic, Visual C++, Visual Studio, and Windows Media are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries The names of actual companies and products mentioned herein may be the trademarks of their respective owners Module 2: Conducting Project Research iii Instructor Notes Presentation: 60 minutes Lab: 45 minutes This module introduces students to the business drivers that may move their organization to a business-to-business (B2B) integration solution Students will identify the project vision and scope, team members, and project risks, and then explore the lab scenario used throughout the course After completing this module, students will be able to: ! Analyze the business drivers that determine their design criteria ! Create a project design plan Required materials To teach this module, you need Microsoft® PowerPoint® file 2420A_02.ppt Preparation tasks To prepare for this module: ! Read all of the materials for this module ! Read the Microsoft e-procurement case study ! Read all of the Microsoft Supplier Enablement case studies under Additional Reading on the Web page on the Student Materials compact disc ! Read the white paper, Microsoft Solution for Supplier Enablement Introduction, under Additional Reading ! Watch the online seminar, Building a Business Case for IT Investments Using REJ, on the Microsoft Seminar Web site, http://www.microsoft.com/seminar iv Module 2: Conducting Project Research How to Teach This Module This section contains information that will help you teach this module Lesson: Determining Design Criteria This lesson introduces students to the importance of doing research before they create a project design A successful project design requires that students research their organization’s needs and the potential benefits of B2B integration For some students, the information in this module will be review material However, the importance of examining business drivers and defining clear project metrics may be new to students that have a technical background Avoid teaching this lesson from a theoretical perspective The best approach to teaching this lesson is to provide examples and to draw from your experience and that of your students The following information is specific to individual pages in this lesson What Business Problems Will Your Design Solve? Although this course provides generic examples on the modules page, this page presents an excellent opportunity to provide real-world examples from your own experience or from recent news How Buyers Influence Design Criteria Many of your students must justify the expense of a B2B integration solution Emphasize the Microsoft e-procurement case study mentioned on this page and the additional case studies under Additional Reading Practice The real goal of this discussion is to identify how students plan to use the materials in the subsequent modules This information will help you tailor the course to meet the needs of each student If you teach this course to students from one company, clarify their specific business drivers and identify any inconsistencies or missing information If you teach this course to students from multiple companies and they are hesitant to discuss details, be prepared to discuss examples from your own experience It may be helpful to write the business drivers that students mention on the whiteboard and then discuss them in more depth later in the course, when you cover the design decisions that are related to these business drivers Lesson: Creating a Design Plan This lesson introduces the process of organizing and documenting a B2B design plan The design plan includes the vision and scope of the project, the roles of the planning team, and the risks that are associated with the implementation of the solution The following information is specific to individual pages in this lesson What Is the Project Planning Team? This topic may generate interesting discussions about the specific roles of students in their project planning teams Emphasize the functional roles rather than the job titles that are covered in the topic Discuss the differences between how students describe their responsibilities How to Determine Project Risks If this material is new to students, provide another real-world set of risks and then ask students to calculate the relative exposure to each risk Module 2: Conducting Project Research The B2B Design Plan This page highlights the final deliverable for this course, the B2B design plan Modules through describe the individual stages of the design process You will complete the B2B design plan in Module Practice v The proposed answer is only one of many possible variations For example, the risk document may have different owners Or, in some projects, the business architect and the solutions architect may be the same person Lab A: Conducting Project Research In this first of six design labs, students will study the business and technical requirements of Adventure Works and its main trading partners The level of student involvement in this lab sets the tone for the remaining labs Therefore, it is essential that students are motivated to participate in the discussion Timing The design lab is scheduled for 45 minutes Divide students into pairs or small teams, and ask them to spend 20 minutes reading and discussing the scenario Then, have each pair or team present its answers to the class Discussion Students will examine Adventure Works’s business drivers and motivations for engaging in B2B e-commerce and for using a marketplace Although the lab scenario provides a clear path to certain design decisions, it contains enough ambiguity to encourage student discussion and debate Students may disagree with the answers that are provided in the Instructor Manual and the Student Materials compact disc Disagreement is acceptable if students can provide adequate business or technical justification To increase student involvement, ask a representative of each team to present the team’s answers to the class and then defend the design Customization Information This section identifies the lab setup requirements for a module and the configuration changes that occur on student computers during the labs This information is provided to assist you in replicating or customizing Microsoft Official Curriculum (MOC) courseware This module contains a single paper-based design lab There are no hands-on labs in this module, and as a result, there are no lab setup requirements or configuration changes that affect replication or customization Module 2: Conducting Project Research Overview ! Determining Design Criteria ! Creating a Design Plan *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction To design a business-to-business (B2B) integration solution for your organization, you must identify, quantify, and document your primary business drivers These drivers make up the foundation of your design criteria for a B2B integration solution You develop design criteria that identify the project vision and scope, team members, and project risks Your project vision will serve as a guide throughout the design and implementation of your B2B integration solution Objectives After completing this module, you will be able to: ! Analyze the business drivers that determine your design criteria ! Create a project design plan Module 2: Conducting Project Research Lesson: Determining Design Criteria " What Business Problems Will Your Design Solve? " How Suppliers Determine Design Criteria " How Buyers Influence Design Criteria " What Are Project Metrics? " Guidelines for Defining Project Metrics " Practice: Using Business Drivers to Determine Design Criteria *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction Implementing B2B e-commerce can open large markets to suppliers of any size For that reason, the choice to implement an e-commerce solution may seem obvious However, a successful design requires research about your organization’s needs and the potential benefits of B2B integration To be successful, you must identify the business problems that you want to solve, the business drivers of your organization, and the business drivers of your trading partners Finally, define how you will recognize and measure the success of your project Based on the business drivers and project metrics, you can determine the criteria that you will use to create your B2B integration solution Lesson objective After completing this lesson, you will be able to: ! Identify the business problems that your design will solve ! Identify the B2B business drivers of your suppliers ! Identify the B2B business drivers of your buyers ! Describe financial and nonfinancial project metrics ! Create project metrics that measure the success of your project Module 2: Conducting Project Research What Business Problems Will Your Design Solve? Your B2B design provides the technical solution to your organization’s central business problem Examples of business problems include: Examples of business problems include: A buyer mandating that you implement e-commerce A buyer mandating that you implement e-commerce An upward trend in customer defection An upward trend in customer defection The high cost of sales The high cost of sales A lack of control over the supply chain A lack of control over the supply chain *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction To make informed design decisions, research the central business problem that your B2B integration solution will solve Before you begin your design, the executive management and business decision makers will identify the central business problem As a designer or solutions architect, you are responsible for delivering the technical solution to this business problem Identify business problems The central business problem is the most important design criterion for your B2B integration solution A problem statement summarizes the challenge that the central business problem creates for your organization A problem statement is typically included in vision documents and Request For Proposals (RFPs) For example, the executive management and business decision makers in your organization have recently concluded that your organization is losing sales because of trading partner defection, which they assume is a result of your company not providing B2B e-commerce Your proposed design must directly relate to the business problem: stopping trading partner defection In this situation, you must work with your organization’s business analysts, decision makers, and sales team to identify the source of the defections You can then develop informed design recommendations for a technical solution Examples Examples of common business problems include: ! A large buyer mandating that you implement B2B e-commerce ! An upward trend in trading partner defection ! The high cost of sales ! A lack of control over the supply chain Module 2: Conducting Project Research How Suppliers Determine Design Criteria Business driver Business driver Create a competitive Create a competitive advantage over the advantage over the Internet Internet Design criteria Design criteria " Satisfy existing trading partners " Satisfy existing trading partners " Gain new trading partners " Gain new trading partners " Increase sales " Increase sales " Reduce response time to market demand " Reduce response time to market demand Reduce transaction Reduce transaction costs costs " Reduce the cost of sales " Reduce the cost of sales " Reduce the cost of order fulfillment " Reduce the cost of order fulfillment Increase order Increase order processing efficiency processing efficiency " Automate order fulfillment " Automate order fulfillment " Enhance order processing " Enhance order processing " Manage the supply chain " Manage the supply chain *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction As a designer, you combine your business drivers and those of your trading partners to determine your high-level design criteria If, for example, your organization’s primary business driver is to lower the cost of sales without reducing trading partner satisfaction, and your largest buyer’s primary business driver is to cut inventories by streamlining its manufacturing and procurement cycles, you must build your design criteria around both sets of business drivers Create a competitive advantage A common business driver is to gain a competitive advantage over other suppliers in your industry By implementing B2B e-commerce, for example, your organization can offer compelling value by meeting the business needs of buyers in a way that other suppliers not Creating a competitive advantage could include the following design criteria: ! Satisfy existing trading partners For example, your largest buyer recently added a $100 surcharge to all nonelectronic purchase orders You must be able to submit purchase orders electronically if you want to compete effectively with other suppliers ! Gain new trading partners If, for example, you discover that your organization is reaching a small portion of its potential trading partners, your design will include methods for reaching new locations and markets ! Increase sales If your organization sells a product with many accessories, your design could automatically target buyers of the product to promote cross-sales opportunities For example, a supplier of handheld computers could notify buyers that it also offers cases, cables, and other accessories ! Reduce response time to market demand If you learn that your organization can gain a key competitive advantage over your competitors by guaranteeing shipment within 24 hours, your design should include steps that fulfill this promise 12 Module 2: Conducting Project Research Lesson: Creating a Design Plan ! What Is the Project Vision and Scope? ! What Is the Project Planning Team? ! How to Determine Project Risks ! The B2B Design Plan ! Practice: Assigning Roles to Your Design Team *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction As a designer, you are responsible for organizing and documenting your B2B design plan After you identify your business drivers, project metrics, and design criteria, the next step is to create the design plan for your B2B integration solution The design plan includes the vision and scope of your project, the roles of your planning team, and the risks that are associated with the implementation of your solution Lesson objective After completing this lesson, you will be able to: ! Identify the purpose of the vision and scope documents ! Identify key roles and responsibilities on the B2B planning team ! Determine project risks ! Prepare a B2B design plan for your trading partner solution Module 2: Conducting Project Research 13 What Is the Project Vision and Scope? The vision document includes: " " " " " " Problem statement Problem statement Business drivers Business drivers Organization mission Organization mission The scope document includes: " Issues to address " Issues to address " Order in which to address " Order in which to address issues issues " Baseline for budget, features, " Baseline for budget, features, and schedule and schedule *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction Before you begin your design, define the vision and scope of the B2B trading partner integration solution The project vision and scope form the basis of your B2B integration solution Project vision document The project vision document focuses the project team on goals that are built on the problem statement and business drivers of the organization The project vision helps ensure that the project aligns with the vision of the organization A project vision document helps guide autonomous teams toward compatible results For example, a vision document that includes direction on security methods will ensure that the team that designs the infrastructure to receive purchase orders and the team that designs the infrastructure to send invoices will deliver solutions that use compatible security methods Project scope document The project scope document defines issues that the project team will and will not cover By ranking the relative priority of these issues, the scope establishes a baseline for making tradeoff decisions about resources, budget, features, and schedules A clearly articulated and enforced scope is essential if your organization is to deliver the project on time and within budget 14 Module 2: Conducting Project Research What Is the Project Planning Team? Team responsibilities: " Gather business and infrastructure information " Identify key decision makers " Obtain approval from upper management Team roles: " Executive sponsor " Program manager " Business architect " Solutions architect " Development lead " IT infrastructure lead *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction The planning team is responsible for gathering information about the organization and then guiding the B2B design plan from conception to implementation Team members must communicate openly about the project with all employees to ensure that the project meets the needs of the organization Responsibilities The planning team is responsible for the following activities: ! ! Identify the organization’s key business decision makers, business analysts, IT administrators, and application developers ! Roles of the planning team Gather information about the organization’s current internal business processes and Information Technology (IT) infrastructure Obtain approval from upper management for the final design plan An effective planning team includes the following roles: ! Executive sponsor Ensures that the project meets the needs of the organization The person in this role makes the critical decisions about the project’s vision, design, and implementation ! Program manager Assumes responsibility for overall project management The program manager ensures that the team is committed to a common purpose, that the roles and responsibilities are clearly defined, and that the team meets its goals on time and within budget The program manager also manages project risks ! Business architect Advocates the business needs of the organization and its trading partners during the envisioning, design, and implementation of the B2B integration solution The business architect works with the solutions architect to ensure that the solution meets the project metrics Module 2: Conducting Project Research 15 ! Solutions architect Guides the team in determining the technical design that meets the needs of the organization The solutions architect determines how the technology will provide specific value to the business The person in this role is knowledgeable about technology and can explain the business value of technical alternatives ! Development lead Works with the solutions architect to determine how to meet the application development requirements of the B2B integration solution The person in this role also builds proof-of-concept applications when appropriate ! IT infrastructure lead Works with the solutions architect to determine how to meet the infrastructure requirements of the B2B integration solution The person in this role also builds proof-of-concept B2B environments when appropriate 16 Module 2: Conducting Project Research How to Determine Project Risks Task Task Description Description Calculate risk Calculate risk Exposure = Severity x Probability Exposure = Severity x Probability Manage risk Manage risk " Acceptance " Acceptance " Contingency " Contingency " Mitigation " Mitigation " Avoidance " Avoidance Document risk Document risk " Risk statements " Risk statements " Risk exposure calculation " Risk exposure calculation " Risk mitigation strategy " Risk mitigation strategy " Risk contingency strategy " Risk contingency strategy *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction Risks are anything that can affect the completion of a project Risk is inherent in any project As a designer in the solutions architect role, work closely with the development lead and the IT infrastructure lead to identify the risks in your B2B design Calculate risk Determine the exposure of your design to a given risk by quantifying the severity of the potential damage and the probability of the risk occurring Use the following formula to calculate and compare your design’s relative exposure to risk: Exposure = Severity x Probability By calculating the exposure, you can prioritize risks by ranking the relative values For example, if the risk that servers for your B2B implementation not arrive on time is a severity of and a probability of 3, the relative exposure to risk is 21 If the risk that a trading partner unexpectedly changes the Extensible Markup Language (XML) format of its business documents is a severity of and a probability of 5, the relative exposure is 15 Thus, the servers not arriving on time is a greater risk to your project than a trading partner changing the XML format of its business documents Manage risk To manage risk proactively, identify risks and then minimize their potential impact on project deliverables Apply the following methods to assess and manage risks: ! Acceptance You acknowledge the risk but choose to accept it with no further planning ! Contingency You acknowledge the risk and develop a contingency plan to activate if necessary Contingency is a reactive strategy ! Mitigation You acknowledge the risk and create a plan to reduce the potential impact of the risk Mitigation is a proactive strategy ! Avoidance You acknowledge the risk and choose to alter your plans to circumvent the risk Module 2: Conducting Project Research Document risks Create a risk assessment document that identifies and analyzes risks The team can use this document to create and clarify mitigation plans to reduce the likelihood of risk The document also lists a contingency plan for coping with the results of the risks The risk assessment document contains: ! Risk statements that list the types of risks that you identified ! Risk exposure calculations that identify the cost if a risk occurs ! Mitigation plans to reduce the potential impact of a risk ! Contingency plans to decrease damage if a problem does occur 17 18 Module 2: Conducting Project Research The B2B Design Plan Design Plan Design Plan Business information referenced throughout the design process " Business analysis " Problem statement " Business drivers " Project metrics " Proposed solution Stages of the B2B design plan required to complete the project " B2B design plan " Conceptual and physical design " Master catalog design " Catalog design and publishing " Order processing " Remote shopping " UDDI integration " XML Web services integration " Document approval *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction There are two primary sections of the design plan: the business analysis and the B2B integration design After you create the design plan, work with the planning team to make any necessary modifications or tradeoffs in order to gain final approval from the executive sponsor of the project Business analysis The business analysis includes the problem statement, business drivers, project metrics, and the proposed solution This section provides the high-level design criteria for your B2B design plan, and the metrics by which your organization will evaluate the success of the design Because each organization and project is unique, the business analysis typically contains project-specific information B2B design plan The B2B design plan outlines the trading partner solution that you propose for your organization The remainder of this course provides guidelines that you can use to develop your B2B design plan Note For more information about creating a design document for a B2B integration solution, see Module 9, “Creating a B2B Integration Design,” in Course 2420A, Designing B2B Integration Solutions Module 2: Conducting Project Research 19 Practice: Assigning Roles to Your Design Team Matching Exercise Matching Exercise Deliverable Vision Vision Document Document Scope Scope Document Document Risk Risk Document Document Design Design Plan Plan Owner Executive Sponsor Team Roles Executive Sponsor Executive Sponsor Program Manager Program Manager Business Architect Business Architect Solutions Architect Solutions Architect Development Lead Development Lead IT Infrastructure Lead IT Infrastructure Lead *****************************ILLEGAL FOR NON-TRAINER USE****************************** Introduction In this practice, you will match an owner and team roles to each deliverable in your B2B design plan You will then discuss your answers in class 20 Module 2: Conducting Project Research Deliverable Vision Vision Document Document Owner Executive Sponsor Team Roles Executive Sponsor Executive Sponsor Program Manager Program Manager Scope Scope Document Document Business Architect Business Architect Risk Risk Document Document Solutions Architect Solutions Architect Development Lead Development Lead Design Design Plan Plan IT Infrastructure Lead IT Infrastructure Lead Deliverable Owner Vision Vision Document Document Executive Sponsor Scope Scope Document Document Program Manager Risk Risk Document Document Program Manager Design Design Plan Plan Solutions Architect Team Roles Executive Sponsor Executive Sponsor Program Manager Program Manager Business Architect Business Architect Solutions Architect Solutions Architect Development Lead Development Lead IT Infrastructure Lead IT Infrastructure Lead Module 2: Conducting Project Research 21 Review ! Determining Design Criteria ! Creating a Design Plan *****************************ILLEGAL FOR NON-TRAINER USE****************************** The chief financial officer (CFO) of a large manufacturing company has concluded that the company must decrease its cost of sales to improve profitability The company’s business analysts have identified that the best way to reduce costs of sales is to increase the efficiency of order processing, which is currently a manual process that is subject to frequent errors What will your design include to improve profitability? What project metrics will you recommend to measure the success of your design? Your design will include actions to increase order processing efficiency These actions could include: Automate the reception of purchase orders, reduce duplication of order entry efforts by integrating business systems, and automate order fulfillment and invoicing Some project metrics that you may recommend include: • The cost of sales for B2B trading partners will decrease by 40 percent within the next six months relative to non-B2B trading partners • Errors in electronic order processing will decrease by 90 percent within the next three months relative to non-B2B trading partners • Upon project completion, properly formatted orders will be processed without manual intervention As a solutions architect, what are your responsibilities on the B2B planning committee? You are responsible for working with the planning team to develop the project’s scope and vision You work with the development lead and IT infrastructure lead to determine risks and to create the project design You are responsible for delivering the B2B design plan and working with the executive team to obtain its approval of the design plan 22 Module 2: Conducting Project Research Lab A: Conducting Project Research ! Exercise 1: Researching Business Drivers *****************************ILLEGAL FOR NON-TRAINER USE****************************** Objectives After completing this lab, you will be able to: ! Identify business drivers for a B2B integration solution ! Define project metrics for a B2B integration solution ! Identify risks in a B2B integration solution Prerequisites Before working on this lab, you must have the knowledge and skills to analyze business drivers and determine design criteria Introduction This lab introduces students to the B2B integration process by presenting a business scenario that involves Adventure Works, a bicycle supply company, and its main trading partners This scenario is used in subsequent labs in the course In this lab, students will examine Adventure Works’s business drivers and motivations for engaging in B2B e-commerce and for using a marketplace Estimated time to complete this lab: 45 minutes Module 2: Conducting Project Research 23 Exercise Researching Business Drivers In this exercise, you will explore a business scenario that involves a bicycle supply company, its largest buyer, and an outdoor recreation marketplace Read the scenario, which describes Adventure Works and its two trading partners Then, work with your assigned teammates to answer the design questions Scenario Adventure Works, a supplier of bicycles and bicycle parts, has hired you to be its consultant In your first meeting with senior management, you learn the following things about the company and its trading partners Adventure Works’s profile Adventure Works is a regional, medium-sized supplier of mountain bike parts and accessories and fully assembled mountain bikes Its headquarters are in Denver, Colorado, and its distribution centers are in Denver; Phoenix, Arizona; and Salt Lake City, Utah Sales and orders are processed in Denver and Salt Lake City under the supervision of John Kelly, the sales manager The company ships inventory from the distribution center that is closest to the buyer Nearly all of its trading partners manufacture high-quality mountain bikes in the western United States To find trading partners, John’s sales team attends regional trade shows and visits potential trading partners The mountain bike market is growing rapidly, especially in Europe and the eastern United States The Chief Executive Officer (CEO) of Adventure Works, Kevin F Brown, wants to capitalize on the market growth, but he is uncertain about the company’s ability to attract customers outside the western United States Although Adventure Works’s core market is fiercely loyal, Mr Brown believes that the loyalty exists because Adventure Works was the first parts supplier to establish business in the western United States With 2,000 employees nationwide, the company prides itself on its small but efficient IT department Adventure Works has recently converted its desktop computers and laptops to Microsoft® Windows® 2000 and its servers to Windows 2000 Advanced Server The headquarters has an IT staff of five people, including three administrators and two developers At each distribution center, a full-time IT administrator manages the Windows 2000 network Budget for the IT staff allocates one new IT staff member this year and one more next year The CEO and the chief information officer (CIO), Kim Yoshida, are committed to investing in IT infrastructure projects, but only if there is a respectable return on investment (ROI) Senior management will not approve any IT projects that not provide an ROI within two and one-half years Similarly, Adventure Works has capped IT spending to 10 percent of gross revenue, unless there is a return on capital (ROC) of the IT investment within one year Adventure Works receives most of its orders directly, either by telephone, email, or fax When orders arrive, a member of the sales team enters the order in Adventure Works’s ERP, Microsoft Great Plains John Kelly considers these activities to be a waste of his team’s time He prefers that the sales team spend its time out of the office, working directly with customers His fear is that although business is good, Adventure Works is losing the customer focus that originally grew its business 24 Module 2: Conducting Project Research Wingtip Toys’s profile Wingtip Toys is a large manufacturer of mountain bikes It is also Adventure Works’s largest and most strategic customer, accounting for almost 25 percent of Adventure Works’s revenue To reduce manufacturing lead time and transaction costs, Wingtip Toys is automating its procurement process by implementing an XML-based e-procurement process that is state of the art Within the next six months, it plans to use an e-procurement application that the Northwind Traders marketplace supplies Wingtip Toys has notified its suppliers of this upcoming change Northwind Traders’s profile Northwind Traders is the primary marketplace for outdoor recreational manufacturers that purchase parts for their products The marketplace provides a standard B2B protocol and IT infrastructure for buyers and suppliers The marketplace, which uses the Commerce Extensible Markup Language (cXML) 1.1 protocol, supports both electronic catalogs and remote shopping It also offers superior e-procurement applications for buyers based on the cXML 1.1 protocol This year, Northwind Traders expects to exceed $1 billion in transactions Recently, Wingtip Toys announced that it will purchase all recreational sports components through Northwind Traders Although the CEO of Wingtips Toys has pledged to continue the company’s business relationship with Adventure Works, eventually he would like to conduct all business procurement electronically Design Questions What is the primary business problem of Adventure Works? Adventure Works’s primary customer, Wingtip Toys, will purchase all of its recreational sports components through Northwind Traders, a vertical marketplace for outdoor recreational products Wingtip Toys’s shift to using a marketplace is the primary problem for Adventure Works, because sales to Wingtip Toys account for 25 percent of its revenues What are the business drivers of Adventure Works and how will these drivers influence your design criteria? Adventure Works wants to capitalize on the market growth in mountain bike sales outside its core region Your design must enable Adventure Works to advertise its strengths to reach new customers outside the western United States The sales manager wants the sales team to concentrate on the core business goals of Adventure Works, such as direct interaction with customers, rather than on processing orders Therefore, your design must provide for automatic processing of orders Module 2: Conducting Project Research 25 What are the business drivers of Wingtip Toys and how will these drivers influence your design criteria? Wingtip Toys wants to reduce manufacturing lead time by implementing a state-of-the-art e-procurement process It also wants to reduce transaction costs that occur from doing business directly with numerous suppliers Due to the large volume of business with Wingtip Toys, Adventure Works must preserve this business relationship by using design criteria that meet the business drivers of Wingtip Toys What are some project metrics that you can recommend to Adventure Works for its B2B integration solution? Some project metrics include: • The design will ensure that Adventure Works maintains its current level of sales to Wingtip Toys • The design will not require more than one additional IT staff member this year • The design will produce an ROI within two and one-half years of implementation As a designer, what risks can you identify for Adventure Works, and what can it to manage those risks? Adventure Works faces several risks It could lose the personal touch that it has with its trading partners It may not integrate rapidly enough with the Northwind Traders marketplace, which could cost it the business of Wingtip Toys The design may be too complex for Adventure Works’s small IT staff to manage and maintain The increase in business may be too much for the company’s current business practices or manufacturing capacity To manage the risks, you can calculate Adventure Works’s exposure to each risk that you identify, and then minimize the impact of each risk on project deliverables through acceptance, contingency, mitigation, or avoidance THIS PAGE INTENTIONALLY LEFT BLANK ... executive team to obtain its approval of the design plan 22 Module 2: Conducting Project Research Lab A: Conducting Project Research ! Exercise 1: Researching Business Drivers *****************************ILLEGAL... necessary to meet the buyer’s JIT manufacturing schedule 8 Module 2: Conducting Project Research What Are Project Metrics? Project metrics are: Project metrics are: Any set of criteria that you use... e-commerce? 12 Module 2: Conducting Project Research Lesson: Creating a Design Plan ! What Is the Project Vision and Scope? ! What Is the Project Planning Team? ! How to Determine Project Risks