custom jeans business:

w Business Analysis Extension Certificate Business Analysis Extension Certificate Business Analysis Extension Certificate Business Analysis Extension Certificate

Final Assessment Paper/CRN 90455Final Assessment Paper/CRN 90455Final Assessment Paper/CRN 90455Final Assessment Paper/CRN 90455

...http://www.domyjeans.com...

www.domyjeans.com is a Web site where

customers all over the world can customize their own

jeans. The project will be launched by the Casablanca-

based Modaline group in order to exploit e-commerce.

InstructorInstructorInstructorInstructor

Karmen Lippitt

2009

Mostafa Karroum/ ID: 201423578Mostafa Karroum/ ID: 201423578Mostafa Karroum/ ID: 201423578Mostafa Karroum/ ID: 201423578 Mount Royal University/ Faculty of Continuing Education

12/14/2009

Business Analysis Extension Certificate

Section 1: Environmental Introduction and Executive Summary

I. Environmental Introduction

II. Executive Summary

Section 2: Project Charter Creation

III. Project Charter

Section 3: Requirement Planning

IV. Requirement Planning Methods

Section 4: Requirement Gathering and Documenting

V. Techniques

Section 5: Analysis and Presentation of the Findings

VI. Process and Workflow Modeling

Section 6: Financial Analysis and Opportunity Evaluation

VII. Qualitative Analysis

VIII. Quantitative Analysis

Section 7: Project Sign Off/Hand Off

Section 8: Business Case

Section 9: Lessons Learned

Certificate: Final Assessment Paper by Mostafa Karroum

Section 1: Environmental Introduction and Executive Summary ..............................

Environmental Introduction ................................................................

Executive Summary ................................................................

roject Charter Creation ................................................................

Project Charter........................................................................................

Section 3: Requirement Planning ................................................................

Requirement Planning Methods .............................................................

Section 4: Requirement Gathering and Documenting ................................

Techniques .............................................................................................

Section 5: Analysis and Presentation of the Findings ................................

Process and Workflow Modeling .........................................................

Section 6: Financial Analysis and Opportunity Evaluation ................................

Qualitative Analysis ................................................................

Quantitative Analysis ................................................................

Section 7: Project Sign Off/Hand Off ................................................................

Section 8: Business Case ..........................................................................................

: Lessons Learned .....................................................................................

: Final Assessment Paper by Mostafa Karroum Page 1

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Section 1: Environmental Introduction

I. Environmental Introduction The e-commerce revolution will give more power back to the consumer. marketspace is growing rapidly because of the power of technology.uses some form of electronic communication in marketing, sales, supply chain management, promotion, and payment of servicecalled electronic commerce.1

However, with globalizationworld. Therefore, having pointservice is the only way to stay alive in this highcompanies may be located in any geographical technology breaks all geographic In addition, advancesCosts of technology are dropping, providing better service and Furthermore, technology also provides high added value through the creation and development of new productstheir customers the opportunityhouse decorations, and clothing The fashion market is growing, and customers are looking for something different from the items displayed in stores. pair of jeans, or jacket designed the way thWeb-based technology, for example, company in Morocco, http://www.domyjeans.com.

II. Executive Summary Casablanca-based Modaline group is a leader in the garment industry. The management has made the strategic named www.domyjeans.comFinancial analysis has shown that the (IRR) values are optimisticrevealed that the project is realizablepurpose to study the feasibility of charter, describe the requirement planning, qualitative analysis. The study

1 Frederick Crane, Marketing, 6th ed. Certificate: Final Assessment Paper by Mostafa Karroum

Environmental Introduction and Executive Summary

Environmental Introduction

commerce revolution will give more power back to the consumer. marketspace is growing rapidly because of the power of technology. Thus, any activity that uses some form of electronic communication in marketing, sales, supply chain management, promotion, and payment of service, whether tangible or intangible

1 However, with globalization, companies are facing serious competition

having point of differences with cost effectiveness and good customer service is the only way to stay alive in this highly competitive environment.

be located in any geographical area and far from customers, all geographic barriers and brings companies closer to clients.

s in technology are having significant effects on marketing. osts of technology are dropping, causing companies to be more customer service

and quality and building better customer relationshiplso provides high added value through the creation and s. For example, some companies with Internet technology

the opportunity to design and customize their own producting.

The fashion market is growing, and customers are looking for something different from the items displayed in stores. Such clients spend a great deal of time find

designed the way they would like it. This need must be for example, by implementing a Web site for an

Casablanca. This Web site will be named

based Modaline group is a leader in the garment industry. The strategic decision of exploiting e-commerce. Hence

www.domyjeans.com will be launched by the end of 2009 or the beginning inancial analysis has shown that the net present value (NPV) and internal rate of return

values are optimistic. Additionally, qualitative analysis, including SWOT that the project is realizable and profitable. Therefore, this case study has

purpose to study the feasibility of the project. Indeed, this study will define the project quirement planning, identify risks, and present the quantitative and

study will close with some recommendations and lesson

ed. (Canada: McGraw-Hill Ryerson, 2006), 79.


commerce revolution will give more power back to the consumer. Indeed, the Thus, any activity that

uses some form of electronic communication in marketing, sales, supply chain intangible is always

companies are facing serious competition around the with cost effectiveness and good customer

competitive environment. Although, , Internet–based

to clients. in technology are having significant effects on marketing.

customer service oriented, customer relationships.

lso provides high added value through the creation and nternet technology offer

their own product, such as cars,

The fashion market is growing, and customers are looking for something different finding a T-shirt,

must be satisfied via for an existing textile

site will be named

based Modaline group is a leader in the garment industry. The commerce. Hence, a Web site

beginning of 2010. internal rate of return

ing SWOT has , this case study has its

will define the project the quantitative and

will close with some recommendations and lessons learned.


Section 2: Project Charter

III. Project Charter

• Prepared by: Mostafa Karroum

• Project Sponsor: Modaline Company

• Date Issued: August 25, 2009

• Project name: http://www.domyjeans.com

Project Overview Headquartered in Casablancaindustry for women, men, and childrengrowth opportunities in term of markets and productsto implement a new marketing current and customized jeans itemsJapan. This project consists of building where customers can customizethis project will allow Modaline to explore erevenues. Therefore, the purpose of this project is to determine return on investment (ROI)implementing a Web site.

Scope The scope of this project consistsfor the sponsor by discoveringThis study will focus on neither the

Project Requirements � Generate a high added value and competitive advantage � Provide an opportunity to Modaline to exploit e� Satisfy unmet customers� Attract a large number of online buyers � Sales from electronic commerce

than 10% of world trade, up about 1% opportunity for Modaline

Project Manager and Authority

Approval of the project content described in this document. By signing this document, I, Mostafa Karroum(the author), agree that work should be initiated on this projectshould be committed. In addition, I do have the authority to manage and carry out the project.

2 “The Group,” Modaline.com, http://www.modaline.com/weban/elgrupo.htm3 Crane, Marketing, 175. Certificate: Final Assessment Paper by Mostafa Karroum

Creation

Project Charter

Prepared by: Mostafa Karroum Business Analyst (BA)/Project Manager

Project Sponsor: Modaline Company, www.modaline.com

25, 2009

http://www.domyjeans.com

Headquartered in Casablanca, Morocco, Modaline is a leader in the garment , men, and children.2 In order to explore e-commerce and to view

growth opportunities in term of markets and products, Modaline management to implement a new marketing strategy that consists of market development by providing current and customized jeans items in new markets, such as Europe, North America

of building a Web site named http://www.domyjeans.comcustomize and design their jeans through specific software.

this project will allow Modaline to explore e-commerce and increase potentiallythe purpose of this project is to determine the feasibility, the potential

(ROI), the risk, and the competitive advantage

scope of this project consists of studying the feasibility and possible revenue for the sponsor by discovering new marketspace around the world through e

neither the technical aspects nor the design of the Web site

a high added value and competitive advantage for Modaline ovide an opportunity to Modaline to exploit e-commerce

customers’ needs in terms of jeans design and size Attract a large number of online buyers around the world Sales from electronic commerce are rising, and they are projected to represent more than 10% of world trade, up about 1% from 2001.As a result, e-commerce is a great opportunity for Modaline.3

Project Manager and Authority

roject charter indicates an understanding of the purpose and ent described in this document. By signing this document, I, Mostafa Karroum

agree that work should be initiated on this project, and necessary resources should be committed. In addition, I do have the authority to manage and carry out the

http://www.modaline.com/weban/elgrupo.htm (accessed October 30, 2009).


/Project Manager (PM)

is a leader in the garment commerce and to view

, Modaline management has decided t development by providing

such as Europe, North America, and

http://www.domyjeans.com software. Indeed,

potentially its sales feasibility, the potential

and the competitive advantage of Modaline’s

dying the feasibility and possible revenue the world through e-commerce.

Web site.

Modaline

are projected to represent more commerce is a great

indicates an understanding of the purpose and ent described in this document. By signing this document, I, Mostafa Karroum, BA/PM

and necessary resources should be committed. In addition, I do have the authority to manage and carry out the


Organization, Authority Because many departmentbe set up. This team will includeassurance, and production. Indeed, each department will be represented by a leader who will coordinate and report to

Coordination Areas

The BA/PM

Supply Chain Coordinator

Marketing Coordinator

Production Coordinator

IT Coordinator

Modaline CEO

Constraints

� Schedule: Project will

� The project has started since July

� The cost will fall between $50

� Human resources: The project

1. Production: designers

2. Marketing: people who can

communication with e

3. The Web site will be hosted in France

4. An agreement

Card, and American Express

Assumptions

� Approval for the feasibility of this project � The financial resources � Modaline possesses technology and expertise


Organization, Authority, and Stakeholders

Because many departments are involved in this project, a cross-functional team up. This team will include marketing, supply chain management, quality

. Indeed, each department will be represented by a leader who will coordinate and report to the BA/PM as follows:

Coordination Areas Main Duties

Overall coordination including communication with stakeholders

Manage all supply chain channelsoutbound logistics Implement the marketing action planand promotion) and update the W Translate online purchase orders based on customers’ specifications Implement and enhance the software for customizing jeans Sponsor the project

will likely be ready by December 2009.

ed since July 1, 2009.

between $50,000 and $100,000.

The project needs highly qualified staff:

Production: designers

Marketing: people who can speak many languages to insure a

communication with e-buyers and follow up on customers’ orders

site will be hosted in France.

agreement must be made with credit card companies (e.g.,

n Express) and PayPal to secure transactions.

Approval for the feasibility of this project was obtained in September 2009.The financial resources will be provided by Modaline.

technology and expertise for making jeans.


functional team will quality control and

. Indeed, each department will be represented by a leader who

uties

oordination including communication with

channels: inbound and

plan (e.g., advertising, Web site

into real final goods specifications

Implement and enhance the software for customizing

speak many languages to insure a good

(e.g., VISA, Master

September 2009.


Summary of Resources, B

In terms of human resourcesareas needs to set aside at least 10 hours before project kickoff. In week to facilitate the coordination of this project.this project is roughly $50,000different necessary materials. Milestone

Milestone

Project charter approval

Case study completed and approved

Overview with involved departments

Presentation to the sponsor

Approval from the sponsor

Technical and Testing phase

Revision: Controlling and monitoring

Closing

Project deliverables

Kickoff of the Web site

4 The currency is in US dollars; $1USD= 7.50MAD (Moroccan Dirham).Certificate: Final Assessment Paper by Mostafa Karroum

Budget, and Millstone Schedule Estimate

of human resources, each leader of the above mentioned at least 10 hours a week. Therefore, each leader must devote 280

kickoff. In addition, the BA/PM needs to invest around 32 hours a coordination of this project. The overall budget estimate approved for

this project is roughly $50,000.4 This includes the cost of software, marketing studies, and .

Target Date

August 2009

Case study completed and approved By the end of December 2009

Overview with involved departments September 1 – November 11, 2009

Between November 15 and November

Between November 21 and 30, 2009

December 1– 31, 2009

onitoring January 5 – February 1, 2010

February 2-9, 2010

February 9-10, 2010

February 15, 2010

The currency is in US dollars; $1USD= 7.50MAD (Moroccan Dirham).


mentioned coordination must devote 280

around 32 hours a The overall budget estimate approved for cost of software, marketing studies, and

ember 20, 2009

30, 2009


Initial risk Assessment

Below are the major risks identified with possible detailed project planning).

Major Risk

The choice of the appropriate software

Financial resources insufficient

ROI will not be reached

Project Charter Approval and Acceptance

The signatures bellow indicatesof this project charter and have thus given approval and acceptance for this project to be initiated. ___________________________________ Approval: Project Sponsor/Owner Date ____________________________________ Acceptance: Business Analyst/ Project Manager


Below are the major risks identified with possible response plan (to be expanded during the

Risk Management Strategy

The choice of the appropriate software Transfer the a specialist third part

Mitigation by enhancing cost effectiveness

Accept in the first year

Approval and Acceptance

bellow indicates that the undersigned have read and agreed harter and have thus given approval and acceptance for this project to be

___________________________________ ___________Approval: Project Sponsor/Owner Date

____________________________________ ___________Business Analyst/ Project Manager


(to be expanded during the

trategy

Mitigation by enhancing cost effectiveness

to the contents harter and have thus given approval and acceptance for this project to be

___________ Approval: Project Sponsor/Owner Date

___________ Date


What is the situation now and how will the

Section 3: Requirement Planning

IV. Requirement Planning

Resources

Technique Modaline does not have the company to gather people from outside the company with expertise and experience in this field. Modaline has hired an IT engineer from France who will supervise and coordinate with the company host

Gathering Requirements

Requirement capture wimeetings will be scheduled with experts, leaders from different departments (production, etc.), and sponsors in order to meet and define the foundation of this project. addition, the BA/PM will conduct potential of this business and only financial but also strategic, tactical, and operational What kind of project How will Modaline enhance the management in ord

Requirements will be documented and saved into one document to be consulted by other project team members. Certificate: Final Assessment Paper by Mostafa Karroum

Strategic Level

Tactical Level

Operational Level

What is the situation now and how will the operational level support this project?

Requirement Planning

Requirement Planning Methods

Modaline does not have a subject matter expert. Therefore, this project will require people from outside the company with expertise and experience in

this field. Modaline has hired an IT engineer from France who will supervise and coordinate with the company hosting the Web site in Paris.

capture will be assured by the BA/PM. Therefore, interviewsmeetings will be scheduled with experts, leaders from different departments (

and sponsors in order to meet and define the foundation of this project. conduct research on garment e-commerce in order to define the

and expected outcomes for Modaline. These outcomes will not beo strategic, tactical, and operational.

What kind of project will Modaline develop and why?

Modaline enhance the management in order to make this project

will be documented and saved into Word documents and then gathered inone document to be consulted by other project team members.


this project will require people from outside the company with expertise and experience in

this field. Modaline has hired an IT engineer from France who will supervise and

. Therefore, interviews and meetings will be scheduled with experts, leaders from different departments (marketing,

and sponsors in order to meet and define the foundation of this project. In in order to define the

utcomes will not be

this project a success?

then gathered into


Analysis Two methods will be used to analyse this project

1. Qualitative: SWOT analysis2. Quantitative: financial and risk analysis

Project Deliverables and Time Framework

Deliverables

Online and phone survey for market research

Financial analysis

Risk analysis

SWOT analysis

Business case

Pretesting and testing phases


Two methods will be used to analyse this project: Qualitative: SWOT analysis Quantitative: financial and risk analysis

Project Deliverables and Time Framework

Comments Due Date

To be outsourced to a third party such as Ipsos

September 30, 2009

To be completed by the BA/PM and financial department

October 30, 2009

To be completed by the BA/PM November 3, 2009

To be completed by the BA/PM and marketing department

November 5,

To be completed by the BA/PM By the end of November

To be completed by all departments From December2010


Due Date

September 30, 2009

October 30, 2009

November 3, 2009

2009

By the end of November 2009

From December 2009 to February


Section 4: Requirement Gathering

V. Techniques This stage will help to following: What does the business need to achieve? What is the ROI expected? What is the marketing strategy?However, the functional requirement related software and CRM will not be

Interfacing with People This is the first challenge for the requirement process. Therebybefore interviewing and questioning people.

Interviews/Focus Group

The exercise will beguThe BA/PM will be responsible for organizing interviews with the relevant stakeholders and ensuring that their responses will be provided on time. These stakeholders will be from different departments, existing their final goods to Modaline,session will be organized to detail the purpose of the performance requirement gathering exercise. This session will help to obtainan opportunity to clarify stakeholders’ queries their commitment, and to providquestionnaires with the objective of gathering data and inforexpected deliverables, such as

Subject Matter Experts (SME The subject matter experts (Therefore, SMEs from different departmentinvolved. Brainstorming sessions will be held with different SMEs in order to define more issues and possible solutions.

Internal SMEs

Marketing department leader

Financial department leader

Supply chain manager

Production manager

5 These customers outsource their final goods to Modaline.Certificate: Final Assessment Paper by Mostafa Karroum

Gathering and Documenting

This stage will help to gather the business requirements in order to

What does the business need to achieve?

arketing strategy? functional requirement related to the technical aspects, such as

not be detailed in this project.

is the first challenge for the BA/PM to overcome before starting the Thereby, many practices and training sessions will be programmed

iewing and questioning people.

exercise will begun by identifying the BA/PM as the single point of contact. will be responsible for organizing interviews with the relevant stakeholders

and ensuring that their responses will be provided on time. These stakeholders will be from , existing Modaline customers (ZARA, Talbot, etc.)

goods to Modaline, and sponsors. Before starting the interviews, a briefing to detail the purpose of the performance requirement gathering

will help to obtain relevant documentation and informatian opportunity to clarify stakeholders’ queries and concerns, to communicat

provide support. The next steps consist of creating questionnaires with the objective of gathering data and information required

such as the feasibility of project, the ROI, and the risk analysis.

(SMEs)/Brainstorming

subject matter experts (SMEs) will be defined by the BA/PM andfrom different departments and from outside the company

rainstorming sessions will be held with different SMEs in order to define more issues and possible solutions.

External SMEs5

Zara Spain

Talbot USA

Camailleux France

Marks & Spencer UK

These customers outsource their final goods to Modaline.


in order to define the

such as a design’s

to overcome before starting the will be programmed

le point of contact. will be responsible for organizing interviews with the relevant stakeholders

and ensuring that their responses will be provided on time. These stakeholders will be from who outsource

and sponsors. Before starting the interviews, a briefing to detail the purpose of the performance requirement gathering

and information. This is communicate the need for

The next steps consist of creating and circulating mation required for the

risk analysis.

and the sponsor. and from outside the company will be

rainstorming sessions will be held with different SMEs in order to define more


Document analysis Currently, there are no documentHowever, the existing documeto outsource their final goods to Modaline will be define and to improve process

Survey (questionnaire) Two types of clients will be questioned

1. Internal clients, i.e., questions will define and clarify the project

Example of questions:

• Do you have any experience in If yes, when, where, and what? If no, what do you know about ee-commerce.

• What is the output of this project for Modaline?benefits of this project for the organization

• Why is your role important more motivated.

• What are your responsibilities

• Do you have any idea about the good ROI and healthy financial situation is equivalent to

2. External clients/i.e., online customers who are interested via Internet. It was suggested company, such as Ipsos; however, a questionnaire will be developed and online on September 30, 2009 for one week

Example of questions:

• How often do you shop online?

• What kinds of products do

• Have you ever bought

• Have you ever customize� If yes, which W� Are you satisfied customizing your jeans via this � What would be missing and has to be improved

• If no, would you be interested

• Would you customize and buy your jeans from

• How much are you willingshipping and customs

Use Case This Use Case will mainly focus making the final purchase Certificate: Final Assessment Paper by Mostafa Karroum

there are no documents available related to e-commerce at Modalineting documents whereby customers such as Talbot and ZARA

their final goods to Modaline will be analyzed. This analysis will help to improve processes such as production and quality control.

clients will be questioned: people who are involved and working on this project

questions will define and clarify the project and roles and get people more involved.

Do you have any experience in e-commerce? nd what?

know about e-commerce. Then explanations will be provided about

What is the output of this project for Modaline? This question will show the benefits of this project for the organization, including the internal SME

role important for this project? This will get people more involved

What are your responsibilities on this project? Define each one.

Do you have any idea about the ROI and the financial potential for this project? and healthy financial situation is equivalent to a stable company.

online customers who are interested in buying customized was suggested that Modaline outsource this task to an expert

such as Ipsos; however, a questionnaire will be developed and on September 30, 2009 for one week to gather more pertinent information

How often do you shop online?

kinds of products do you buy online?

ever bought a jeans online?

ever customized your jeans online? Web site do you use?

Are you satisfied customizing your jeans via this Web site? What would be missing and has to be improved on this Web site

interested in customizing your jeans online?

you customize and buy your jeans from a company located overseas?

How much are you willing to pay for customizing a pair of jeansand customs?

focus on online purchase process, from visiting the


commerce at Modaline. ZARA have used

his analysis will help to

this project. These and get people more involved.

hen explanations will be provided about

This question will show the SMEs.

his will get people more involved and

and the financial potential for this project? A stable company.

customized jeans outsource this task to an expert

such as Ipsos; however, a questionnaire will be developed and posted to gather more pertinent information:

Web site?

company located overseas?

jeans, including

rom visiting the Web site to


Use Case ID: 1

Use Case Name: New customer to customize jeans

Created by: Mostafa Karroum

Date Created: July 16, 2009

Actors: Karmen is

Description: Karmen visits customizingdetail, embroidercommon styleand those that people are wearing.

Preconditions: Karmen is logged onShe has She needs to register on the

Postconditions: Karmen has one week to change the design of her jeans before production starts. she does not select this optionThe online payment

Normal Flow: Karmen found the She doesKarmen company.She createKarmen startsShe fworkflow chart section)She lShe cThe lKarmen makes She decides to k

Alternatives Flow: KarmenShe d

Exceptions: The fabricThe lThe sKarmen cancelThe sKarmen requestThe s

Includes: None

Priority: Very high

Frequency of Use: 100 visit

Business Rules: Rules applied for B2B and B2CStandard

Special Requirements: If there is any delay due to customerThe mode

Assumptions: Among 100 visitors, one will make an online purchaseThe system used is The WThere is no geographical restriction to visit and buy from the

Notes and Issues Expect high frequency of executing this use case within project is launched.Certificate: Final Assessment Paper by Mostafa Karroum

New customer to customize jeans

Mostafa Karroum Last Updated By: Mourad Karroum

July 16, 2009 Date Last Updated: September 14, 2009

Karmen is a new online customer.

Karmen visits www.domyjenas.com for the first time because she is interested in customizing her jeans online. She likes to design her own jeans, adddetail, embroidery, and sometimes her own signature. She does not like to wear common styles of jeans. She wants her jeans to be different from those in the stores and those that people are wearing.

Karmen is logged onto the Web site. has a credit card to make an online payment. needs to register on the Web site to get a password and username

Karmen has one week to change the design of her jeans before production starts. she does not select this option, production will start within 24 hours.The online payment will be secured and approved.

Karmen found the Web site. She does some research about the credibility of this Web site. Karmen reads the customers’ testimonials and other information company. She creates a username and password. Karmen starts to design her jeans. She follows the different steps to design her jeans (will be developed on workflow chart section). She looks at the final designed jeans. She confirms the order. The lead time is provided by the system. Karmen makes a payment by credit card. She decides to keep (or not keep) the jeans in the public photo gallery

Karmen orders many of the same designed items. designs many pairs of jeans.

fabric chosen is out of stock. The lead time might be longer than expected. The system does not accept the credit card provided. Karmen cancels her order. The system terminates the use case. Karmen requests to make another order. The system starts the use case.

None

Very high

100 visitors with one buyer

Rules applied for B2B and B2C tandard operating procedures

If there is any delay due to being out of stock, the system has to inform the customer. The mode of payment has to be done via a secure intermediary

Among 100 visitors, one will make an online purchase. The system used is a 3D tool.

Web site is running 24/7/365. There is no geographical restriction to visit and buy from the W

Expect high frequency of executing this use case within the first month after the project is launched.


Mourad Karroum

September 14, 2009

ime because she is interested in ns, adding specific

does not like to wear be different from those in the stores

and username

Karmen has one week to change the design of her jeans before production starts. If production will start within 24 hours.

and other information about the

(will be developed on the

the jeans in the public photo gallery.

stock, the system has to inform the

intermediary, such as PayPal.

Web site

first month after the


Data Requirements This will help to define what data is to be capturedinformation that should be captured by the system

Required data elements for � First and last name � E-mail address � Mailing address (this should include � Phone number to be used

Required Business Rules � The system should be able to confirm the address based on the � The credit card should b

using the verified by VISA process) or � A commercial invoice will be s

Difficulties in Gathering IMARKETING ASPECT The online survey might not Customers might not explain their needsCustomers might not be available for MANAGEMENT ASPECT The leaders from each department do not understand their role in this new businessManage the resistance change

Recommendations: MARKETING Outsourcing the survey to specialist survey companproject deliverable section. However, because of the cost, management might not approve this. Nevertheless, as the BA/PMparty. Moreover, Modaline should bMANAGEMENT To get people involved, many formal and informal meetings will be held in order to show people the benefits of this new project for them as well as


This will help to define what data is to be captured. The data will be focusedinformation that should be captured by the system.

ata elements for capture

this should include zip code, city, province/state, and countryPhone number to be used by the carrier

ystem should be able to confirm the address based on the zip coderedit card should be valid and verified by the company that issued the card (by

verified by VISA process) or through PayPal ommercial invoice will be sent with the items to clear customs, if applicable

Gathering Information

nline survey might not be completed. ht not explain their needs because they do not know exactly what they need.

available for the survey.

from each department do not understand their role in this new businessManage the resistance change

the survey to specialist survey companies, such as Ipsos, is scheduled project deliverable section. However, because of the cost, management might not approve

BA/PM, I highly recommend outsourcing this task to a third Modaline should benchmark against the same type of companies

To get people involved, many formal and informal meetings will be held in order to show of this new project for them as well as the organization.


ed on customer’s

, and country)

code. valid and verified by the company that issued the card (by

if applicable.

because they do not know exactly what they need.

from each department do not understand their role in this new business.

scheduled in the project deliverable section. However, because of the cost, management might not approve

this task to a third companies.

To get people involved, many formal and informal meetings will be held in order to show


Section 5: Analysis and Presen

VI. Process and This analysis will help workflow process for the new business. Currentcompanies, such as Zara, Talbot,at Modaline. So far, there is no workflow process for eexisting process for production will be new business. THE EXISTING WORKFLOW PROCESS

This process is very simple because Modaline executedecide to outsource their production at process; hence, the implementation of ensure a high quality of the final good

PO from customers who

outsource, such as Levis

and Zara


resentation of the Findings

Process and Workflow Modeling

This analysis will help everyone to understand the existing process and enhance workflow process for the new business. Currently, Modaline’s customers are larger

, Talbot, and Levis, who have chosen to outsource their production

So far, there is no workflow process for e-commerce at Modalineting process for production will be enhanced and improved in order to be adapted to the

PROCESS (B2B)

This process is very simple because Modaline executes the orders from decide to outsource their production at the Modaline facility. It is a ver

, the implementation of a new and enhanced process is required in order to final goods.

Production in ModalineSend the final goods the

customers: Levis, Zara...


to understand the existing process and enhance the ly, Modaline’s customers are larger

who have chosen to outsource their production

. However, the be adapted to the

customers who very basic level

new and enhanced process is required in order to

Send the final goods the

customers: Levis, Zara...


THE NEW WORKFLOW PROCESS

The following flowchart showsonline order, production, and shipping to the cus


ESS (B2C)

The following flowchart shows the different steps from customizing and making an online order, production, and shipping to the customer:


customizing and making an


Data Analysis Based on the previous workflow processinformation, order confirmation(SCM). The following cause-kind of business that all departments need to prevent:

Enterprise Risk Analysis

The measurement-drive

to identify, qualify, and quantify the risks and come up

Measurement


Based on the previous workflow process, the top priority processes are customer information, order confirmation, quality control, and supply chain management

-and-effect diagram shows the most common problems in this kind of business that all departments need to prevent:

driven model for enterprise risk management will be used as tool

quantify the risks and come up with appropriate response

Measurement-Driven ERM Model


processes are customer , quality control, and supply chain management processes

most common problems in this

model for enterprise risk management will be used as tool

with appropriate responses.


Identification Only high level risks have been considered in this preliminary risk assessment.

However, the SWOT analysis

can be considered as risks.

CURRENT STATE PROFILE (CLASSIFICATION AND

#

A Lack of Marketing

B Supply Chain Cost

C Secured Payment

D Quality Control

E Software Problem

Pro

bab

ilit

y o

f O

ccu

rren

ce Extremely

High Moderate-High Extremely Low

Insignificant


Only high level risks have been considered in this preliminary risk assessment.

However, the SWOT analysis will be used as a business tool to identify other threats

LASSIFICATION AND PROBABILITY)

○C

○A ,

○D

○B

Description Risk Category

arketing 2 Moderate-High

Supply Chain Cost 3 Low-Moderate

Secured Payment 1 Extremely High

Quality Control 2 Moderate-High

Software Problems 1 High

Magnitude of Impact

Minor Moderate Significant


Only high level risks have been considered in this preliminary risk assessment.

business tool to identify other threats that

○E

○D

Risk Category

High

Moderate

High

High

Devastating


Responsiveness The target risk profile clearly indicates which category has to be

Obviously, risk management consist

risk, consequently minimizing its im

Category ○1

Four main types of risk responses:

• Avoid

• Accept

• Transfer

• Mitigate

Only the transfer and mitigate categories 1 and 2, considered as high riskCATEGORY 1: TO TRANSFER

• It is highly recommended to outsource related to the Web siteParis.

• After many meetings all online transactions

CATEGORY 2: TO MITIGATE

• Lack of Marketing

Additionally, Modalineoperations aspect

• Quality Control

reduce the probability of occurrenceproduct.

CATEGORY 3 : Supply chain for Modaline. Nevertheless, this function needs to be monitored in effectiveness.

Pro

bab

ilit

y o

f O

ccu

rren

ce Extremely

High Moderate -High Extremely Low

Insignificant


The target risk profile clearly indicates which category has to be

, risk management consists of minimizing the probability of occurrence

consequently minimizing its impact.

○1 Category

○2

Category ○3

Four main types of risk responses:

itigate strategies will be retained as risk responseconsidered as high risk, will be transferred to a third party

RANSFER

is highly recommended to outsource software problems and any other problem site. Indeed, this function has been outsourced to

and brainstorming, it has been decided to use PayPal to secure all online transactions.

ITIGATE

arketing: Benchmarking will be used to mitigate this riskAdditionally, Modaline’s marketing department will focus on marketing

aspects, that is, product, price, promotion, and place

Quality Control: The quality control process will be enhanced in order to reduce the probability of occurrences of quality problems

hain channels, inbound and outbound, do not represent , this function needs to be monitored in order to insure cost

Magnitude of Impact

Minor Moderate Significant


The target risk profile clearly indicates which category has to be managed.

of occurrences of the

risk responses. Therefore, y.

and any other problem . Indeed, this function has been outsourced to a third party in

and brainstorming, it has been decided to use PayPal to secure

enchmarking will be used to mitigate this risk. marketing department will focus on marketing product, price, promotion, and place.

enhanced in order to s for the final

do not represent a high risk order to insure cost

Devastating


Section 6: Financial Analysis

VII. Qualitative Analysis SWOT ANALYSIS

Location of Factor

Internal

Strengths

• Corporate

• Customer intimacycompetitors

• High production capacity

• Updated technology

• Expertise in

• High

• NomadinModaline)different and other consumables

• New people hired from Europe and the United States

• Multilingual

• Cost advantage

• Different marketing mix strategy: branding, distributing

External

Opportunities

• 24/7/365

• Rapidly increasing nI

• Free trade agreement with United StatesUnion

• Customer intimacy (3States

• Affordable price

• Growing demand for customized jeans

• People about marketing through Internet


Financial Analysis and Opportunity Evaluation

Type of Factor

Favorable Unfavorable

Strengths

Corporate image

Customer intimacy, as compared to competitors

High production capacity

Updated technology

Expertise in the textile industry

Highly qualified and trained labour

Nomadin (Business Unit of Modaline) as back up to supply different products, such as tissues and other consumables

New people hired from Europe and the United States

Multilingual staff members

Cost advantage

Different marketing mix strategy: randing, pricing, promoting, and istributing

Weaknesses

• No direct interaction

• Organization and management

• Missing best operating

• Lack of experience for sales department

• Transportation costincrease the product cost

• Cost ineffectiveness of SCM

• Planning and forecasting activitie

• Information system

• Internal communication

• Change resistance

• Culture difference.

Opportunities

24/7/365

Rapidly increasing number of Internet users

Free trade agreement with the United States and the European Union

Customer intimacy with Europe (3-hour flight) or even the United States and Canada (7-hour flight)

Affordable and very competitive price

Growing demand for customized jeans

People growing more confident about marketing through Internet

Threats

• Highly competitive environment

• Potential new entrants

• Dishonest persons entering this fieldwhich damagesof common people on marketing through Internet

• Recession economy

• Asian competitionChinese

• Online payment


Unfavorable

No direct interaction with the customer

Organization and management

perating practices

Lack of experience for marketing and ales departments

Transportation cost, which might increase the product cost

Cost ineffectiveness of SCM

Planning and forecasting activities

Information system

Internal communication

resistance

difference.

competitive environment

Potential new entrants

Dishonest persons entering this field, s the confidence and faith

of common people on marketing through Internet

Recession economy

Asian competition, particularly the

Online payment


VIII. Quantitative Analysis The calculation of NPV profitable or not. The forecasting was assumptions (see the following section):

Total Sales over the Next

Years

Total Sales ($CAD)

Cost of Goods Sold (67%) CAD

Overheads (25%) $CAD

Earnings Before Taxes $CAD

Taxes (35%) $CAD

Net Incomes After Taxes $CAD

NPV and IRR

Initial Investment RRR

NPV

Decisions and Solutions Assumptions

1. Operational marketing Product and Price

2010 200.00

2011 800.00

2012 1400.00

Number of jeans sold/year

Place and Distribution � The e-store: www.domyjeans.com� Shipping and customs

6 The required Rate of Return Certificate: Final Assessment Paper by Mostafa Karroum

nalysis

he calculation of NPV and IRR will help to determine whetherThe forecasting was done for the next three years based on some

following section):

ext Three Years

2010 2011

$864,000.00 $3,456,000.00

Cost of Goods Sold (67%) CAD $578,880.00 $2,315,520.00

$216,000.00 $864,000.00

CAD $69,120.00 $276,480.00

$24,192.00 $96,768.00

CAD $44,928.00 $179,712.00

Initial Investment ($CAD) $-200,000.00RRR6 20%

NPV ($CAD) $144,240.00

IRR 50.97%

g

Unit Price $CAD

Cost of Goods

Sold= % of total

sales

200.00 90.00

800.00 90.00

1400.00 90.00

Number of jeans sold/year

67%

www.domyjeans.com Shipping and customs are paid by the customer.


determine whether the project is the next three years based on some

2012

$6,048,000.00

$4,052,160.00

$1,512,000.00

$483,840.00

$169,344.00

$314,496.00

200,000.00 20%

$144,240.00

50.97%

Cost of Goods

Sold= % of total

Overheads =% of

total sales

25%


Promotion To win in e-commerce, promotion is necessary. Therefore, many methods will be used in order to get more visitors and buyers.

� Referrals: Visitors via an email from the

� PR: Magazines and � Print and Banner

customers by using magazines they prefer to read� Affiliate Programs

as well. This will incite customer� Search Engines:

easy to find. Meta tags and wellsearchable.

Human Resource Management

People from different departmentunderstand their responsibilities.strategic and operational purpose of this project

SOLUTIONS

� Marketing

The research marketing will be outsourced to the sponsor does not approve it.

� Production Quality control: The Ishikawa diagram will be used to tackle any quality issuesworkflow process diagram will be used and enhanced in order to improcesses involved.

Risk management The mitigating strategy seems the best way to manage the risks section.

Decisions

According to quantitative and qualitative analysis (investment would add value to the firm. Therefore, this project could be profitable and realizable.

7 Bruce Lawrence, “E-Commerce: 7 Promotion http://www.canadaone.com/ezine/may99/promote.htmlCertificate: Final Assessment Paper by Mostafa Karroum

commerce, promotion is necessary. Therefore, many methods will be used in order to get more visitors and buyers. The following promotion methods will be used

isitors can recommend the Web site to friends by sending the link n email from the Web site through the tell your friend section

and newspapers will be used to promote www.domyjeans.comPrint and Banner Advertisements: These advertisements will customers by using magazines they prefer to read.

Programs: The referred customers will receive a bonus and will incite customers to refer more people.

: An effective search strategy is important to make the eta tags and well-crafted titles are essential to make the

Management

eople from different departments will be involved in this prresponsibilities. Consequently, they will understand perfectly the

strategic and operational purpose of this project.

The research marketing will be outsourced to a specialist company, such athe sponsor does not approve it.

: The Ishikawa diagram will be used to tackle any quality issuesorkflow process diagram will be used and enhanced in order to improve the flow of the

seems the best way to manage the risks described

and qualitative analysis (NPV � 0 , and IRRinvestment would add value to the firm. Therefore, this project could be profitable and

Commerce: 7 Promotion Methods,” Canoe.ca,

http://www.canadaone.com/ezine/may99/promote.html (accessed October 30, 2009).


commerce, promotion is necessary. Therefore, many methods will be used in promotion methods will be used:7

by sending the link tell your friend section.

www.domyjeans.com. These advertisements will target potential

bonus and a referral

make the Web site ake the Web site

involved in this project and understand perfectly the

uch as Ipsos unless;

: The Ishikawa diagram will be used to tackle any quality issues. A rove the flow of the

described in the previous

and IRR � 20% ), the investment would add value to the firm. Therefore, this project could be profitable and


Limits and Constraints Internal Financials: Non-expectable costs (affect the profitability of the project.Human Resources: Everyone will beimplementation of a new system might cause some External

The threat of new global entrants project.


expectable costs (technology, human resources, marketingaffect the profitability of the project.

one will be involved; however, the resistance to the new system might cause some difficulties.

hreat of new global entrants and substitute products might be an obstacle for this


echnology, human resources, marketing, etc.) might

involved; however, the resistance to the

substitute products might be an obstacle for this


Section 7: Project Sign Off/Hand Off

Upon completion of BA/PM will review everything with the individually with each leader from each involved processes related to the department departments will be held to present the final project and therefore, the BA/PM will revise the final document based on these people’s feedbabefore presenting the project to the sponsor.Excel documents, both including all pertinent information about this will hold a meeting with sponsors to present the project and answer questions The BA/PM commits to bestudy of the project’s feasibility for any further assistance. Below are the project sponsor and the and acceptance of this project. ___________________________________ ___________Approval: Project Sponsor/Owner Date ____________________________________ Acceptance: Business Analyst/


Project Sign Off/Hand Off

Upon completion of the different steps, as mentioned in the project charterwill review everything with the different departments. So, a meeting will be held

individually with each leader from each involved department to discuss related to the department in question. In addition, a final meeting with all

to present the final project and make any last improvements; will revise the final document based on these people’s feedba

before presenting the project to the sponsor. All documents will be saved into Word and both including all pertinent information about this project.

th sponsors to present the project and answer questionscommits to being available for 2 months after the completion of this

study of the project’s feasibility for any further assistance. Below are the project sponsor and the BA/PM’s signatures indicating their

ect.

___________________________________ ___________Approval: Project Sponsor/Owner Date

____________________________________ ___________Business Analyst/Project Manager


as mentioned in the project charter, the , a meeting will be held

department to discuss the different In addition, a final meeting with all

any last improvements; will revise the final document based on these people’s feedback

All documents will be saved into Word and project. The BA/PM

th sponsors to present the project and answer questions. for 2 months after the completion of this

indicating their approval

___________________________________ ___________ Approval: Project Sponsor/Owner Date

___________ Date


Section 8: Business Case

Executive Summary The objective of the Modaline Group. Therefore, qualitative analysis operational marketing strategyand IRR) will help to decide whether this project is feasiblethe risks and indicates which risk management strategy will be usedstrategy. In addition, the project suggests pricing, promotion, place, and product (customized jeans). that the NPV and IRR are profitable.

Purpose Statement The purpose of this business caseanalysis of the new project that Modaline wants to launch in the next few months. In addition, this case proposes an improved flow of processes regarding production activitthe case study discusses many aspectand marketing strategies.

Evaluation Analysis The analysis of the internal and external environment was done through the SWOT

analysis and has shown that there are some opportunities in the global market. Additionally, the financial analysis has provided optimistic valueModaline Group is encouraged to

Risk Analysis The following table quantifies Category Risk

1 Technical and

Financial

2 Marketing and

Quality Control

3 Supply Chain

Assumptions � Financial: The NPV and IRR

the previous section of the financial analysis.� Management: All people from each department understand perfectly the pu

this project. Therebynecessary.


business case is to study the feasibility of this project for roup. Therefore, qualitative analysis (SWOT analysis, risk assessment, and

operational marketing strategy), combined with quantitative methods (calculatiwill help to decide whether this project is feasible or not. This case study

which risk management strategy will be used, such as the mitigation . In addition, the project suggests using an operational marketing strategy in term of

and product (customized jeans). The financial analysis shows that the NPV and IRR are optimistic; therefore, the project is feasible and

The purpose of this business case is to provide a quantitative and qualitativethe new project that Modaline wants to launch in the next few months. In

addition, this case proposes an improved flow of processes regarding production activites many aspects regarding project management, human reso

internal and external environment was done through the SWOT analysis and has shown that there are some opportunities in the global market. Additionally,

provided optimistic values for NPV and IRR. As roup is encouraged to enter this profitable business.

The following table quantifies and summarizes the significant risks described

Probability Impact Responsiveness S

70%-80% Very

High

Transfer to a

40% Moderate Mitigate through benchmarking and

quality control process

10% Very

Low

Accept

NPV and IRR were calculated based on the assumptions given in the previous section of the financial analysis.

ll people from each department understand perfectly the puthis project. Thereby, their commitment to achieving the goal of


this project for the isk assessment, and calculation of NPV

This case study analyzes such as the mitigation

an operational marketing strategy in term of financial analysis shows

is feasible and would be

quantitative and qualitative the new project that Modaline wants to launch in the next few months. In

addition, this case proposes an improved flow of processes regarding production activities; regarding project management, human resources,

internal and external environment was done through the SWOT analysis and has shown that there are some opportunities in the global market. Additionally,

NPV and IRR. As a result, the

significant risks described above.

ness Strategy

third party

enchmarking and

quality control processes

Accept

calculated based on the assumptions given in

ll people from each department understand perfectly the purpose of of this project is


Option 1) Do not do anything: this is not 2) Launch the project for the local market and European market3) Launch the project globally and try to reach the maximum

around the world.

Recommended Option Because of the competitiveness of emost realistic one.

Implementation Strategy1) Define the scope of the project2) Select the project team and inform all members of the purpose of 3) Initiate the project. 4) Planning the project: define and improve the processes5) Control and monitor: review all

it on the Web. 6) Close the project and kick7) Monitor and control: this stage will start

will not stop upon closure of continue afterward in order to define

Conclusion The Modaline Group is one of the Morocco. The group has decided to explore eto launch a Web site named jeans. The purpose of this case study is to analyseanalysis was done, such as qualitative analysis qualitative analysis (calculatiproject is feasible and would be


Do not do anything: this is not an acceptable option. Launch the project for the local market and European market. Launch the project globally and try to reach the maximum number

itiveness of e-commerce, the third option appears to

Implementation Strategy Define the scope of the project. Select the project team and inform all members of the purpose of the

Planning the project: define and improve the processes. and monitor: review all processes and pre-test the project before

lose the project and kick off the Web site. Monitor and control: this stage will start at the beginning of the project.

closure of the project. The monitoring and controlling phase will in order to define any issues that might occur and to fix

roup is one of the biggest companies in the garment industry The group has decided to explore e-commerce; therefore, Modaline has decided

eb site named www.domyjeans.com where customers can customize their

The purpose of this case study is to analyse the feasibility of the project; thus, such as qualitative analysis (e.g., SWOT and risk calculation of the NPV and IRR values). Both have would be profitable.


number of customers

option appears to be the best and

project.

test the project before launching

of the project. However, it the project. The monitoring and controlling phase will

might occur and to fix them.

in the garment industry in commerce; therefore, Modaline has decided

where customers can customize their

the feasibility of the project; thus, much risk analysis) and

shown that the


Section 9: Lessons Learned

1) Because the deadline is very tight, the project could have been started

Indeed, additional research could information – financial and marketing. In train different people involved in

2) The technical aspect was not detailed. specialized consulting companies in than was expected.

3) Getting more people effectively, they needed to be project, not only for the company but

4) The workflow mapping for Therefore, the concept could be applied streamline and improve the output for each department and person.

5) The qualitative analysis

6) The quantitative analysis shown that the project is realistic and

7) The case study has shown the steps to follow closing and monitoring would be good to devwould help to manage time, cost, and tasks.


earned

Because the deadline is very tight, the project could have been startedresearch could have been done in order to obtain

financial and marketing. In addition, more time would train different people involved in the project.

The technical aspect was not detailed. Many consultations were done with specialized consulting companies in Paris. Consequently, Modaline has s

Getting more people involved was sometimes challenging. To they needed to be shown the benefits that could be derived

not only for the company but also for them.

The workflow mapping for the production process was new at the Modaline Therefore, the concept could be applied in different departments in order to streamline and improve the output for each department and person.

The qualitative analysis (SWOT and risk analysis) was done properly.

The quantitative analysis (calculating the NPV and IRR) was objective and has oject is realistic and would be profitable.

The case study has shown the steps to follow from the initiation phase until closing and monitoring phase. However, the planning phase was not detailedwould be good to develop this phase by using MS PROJECT program

ge time, cost, and tasks.


Because the deadline is very tight, the project could have been started earlier. obtain more accurate

more time would have helped to

any consultations were done with Modaline has spent more

o do so more that could be derived from this

Modaline Group. departments in order to

was done properly.

was objective and has

from the initiation phase until the However, the planning phase was not detailed. It

JECT program. Doing so

custom jeans business:

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