Cango Management and Communication Problem Resolution Planning

CanGo Management and Communication Problem Resolution

Planning a Technological Solution

Nick has been handed a project where he has to implement Online Gaming, requiring significant technological integration. What factors does he need to consider and manage for the project to be a success?

As Warren tried to explain to Nick, the successful implementation of the project will require the purchase of hardware, the testing and selection of the right software, the securing of sufficient bandwidth to support all of the users expected to use the system if it becomes popular and successful, licensing negotiation and procurement and the payment of the fees associated with licensing. Warren also explained that there is an inherent risk in this type of venture that the initial popularity of the site could fizzle out and die if the site crashes or malfunctions in any way because it turns out to be incapable of supporting the first wave of new customers in the event that the launch is a success. Therefore, Nick has to consider the critical importance of making sure that there is sufficient testing and system backup to avoid any downtime caused by system failures after the live launch. To do this, Nick must allow enough time for each component part of the system to be tested and to allow system designers to test backup systems and procedures in the event of any problems after the initial launch.

b. Class, let' shift our attention to the planning meeting. I am a little concerned re the casual nature of the planning meeting called by Warren. If you were asked to give Warren advice on how to improve the planning session, what would be your suggestions?

I would advise Warren that planning meetings should be conducted on such an ad hoc basis and without any preparation from the members of the team. At a minimum, the planning meeting should have been preceded by instructions explaining to each member of the team what his or her role or general area of responsibility will be and asked to consider various issues so that everyone attending the meeting would bring ideas to the table and contribute proactively instead of just showing up to listen passively to the presentation.

c. Warren did not have anything written down and that is definitely weak point. Besides assigning who should do what I think it would be beneficial to verify numbers from previous holiday season and see what were the biggest issues. Warren mentioned and his team added many important tasks but notes and reports from previous year would help to verify if they did not forget anything important.

On one hand, Warren told Nick that he expected "pure offense" and "no defense on this." On the other hand, by not bringing anything more specific to his meeting with Nick, Warren already failed to lead by example in that regard. He wants Nick to be proactive and to anticipate all possible issues and problems before they happen and to come up with backup systems and plans and troubleshooting approaches; that is what he means by "all offense." Warren does not want any explanations (or even solutions) only after the fact once something goes wrong with the project for reasons already explained to Nick in connection with his concern about losing customers like rats off a sinking ship in the event the systems fail after the initial launch. At a minimum, Warren should have provided Nick with at least a rough outline of Gantt-type layout of exactly what elements of the project he expects Nick to have completed in what order and according to a projected timeline.

II. Cost/Benefit Analysis

a. What are the costs of the new systems that may be implemented? How do we justify their implementation at CanGo?

The costs of the new system include it research and development, testing, troubleshooting, correction, and implementation. Based on the loose breakdown already outlined by Warren, one major expense will be the cost of the hardware for the project. Software costs will include research into the available options, testing of various options, and (possibly) the development of additional software necessary to support all of the functions envisioned by project designers. The cost of hardware and software are justified by the fact that certain minimum requirements and system capabilities are essential to the successful implementation of the venture. Likewise, there are substantial costs anticipated in connection with bandwidth and with securing licensing and their associated fees. Those costs are justified because insufficient bandwidth could precipitate the exact type of failure after launch described by Warren, even if the initial launch is successful. The costs of licensing and related fees are justified because it is impossible to implement the project without paying them and because the obvious consequences of the alternative (i.e. ignoring those requirements) would entail litigation and liability that would cost much more than those expenses.

b. Why do we conduct this Cost analysis? How does this type of analysis help in the justification of the implementation of any project?

In principle, we conduct cost analyses simply because in order to determine whether any particular projected cost is justified or unjustified, we have to be able to compare the cost of implementing that project element with the cost of not implementing that element. For example, in the case of building in sufficient backup capabilities and securing sufficient bandwidth to support the maximum possible number of users, the cost of doing that would be justified if the potential cost of the risk it is meant to address might be the failure of the entire project after launch because of a temporary loss of service. For another example, the cost of securing licenses would be justified if that cost is in the thousands or tens of thousands of dollars whereas the potential cost in liability for failing to do that could be in the millions and bankrupt the entire venture or company.

d. With any business endeavor it's always a good objective to implement a Cost Benefit Analysis, the reason being as a means of evaluating all of the potential costs and revenues that may be generated if the project is completed. The outcome of the analysis will determine whether the project is financially feasible, or if another project should be pursued. It would be a shame to let a good idea fall short due to improper financial planning.