cohesive paper

HWE Accessories Company New Website

February 13, 2017

HWE Accessories Company New Website

The problem statement

The HWE Accessories Company experiences problems since its current website is more manual as it just presents information to the customers without allowing them to carry out any transaction. In the present generation, the e-commerce is the order of the day where the customers can use the Internet to access various services on the net and do shopping without having to move from one place to another. It is clear that the current website the HWE Accessories Company is using is just informational and thus users can just view a limited amount of information without being in a position to browse inventory, make comparisons for the items and as well make purchases. The goal is to come up with a more computerized system which will enable the HWE Accessories IT department and other workers within the company as well as the customers to perform transactions while using the company’s website. As well, the new website will allow the customers to interact with the company as to get assistance and clarification regarding the company’s product and services.

Analysis of the situation

It is clear that the current HWE Accessories website does not fulfill the co-goals and objectives of the company which is to market its products and services to many people. Even if the customers happen to find the current website, they cannot be in a position to fulfill their requirements since they cannot purchase whatever they require. They might also come from far and access the physical company's store becomes challenging. Therefore, even after they find that the corporation has whatever they require, they will end up exiting and looking for other places (websites) to fulfill their demands. It is thus clear that the company is not making any profit from the current system and even if they make, it is minimal.

Cost-benefit analysis

Computerizing the current HWE Accessories website will be costly since it will require purchasing of various items such as more powerful computers than the current ones. The company will also incur a lot of money in paying the website designer, introducing an internal IT department and training staff on how to use the new system (website). These are just a few areas where the company will require to use a lot of money. However, we cannot compare these costs with the benefits the new website will have to the enterprise. It will assist in marketing the HWE Accessories products and services, increase sales and profits which will be more than what the company has utilized in the implementation of the website.

Preliminary feasibility study

A feasibility study is important in determining whether the system is worth developing. According to the feasibility study carried out, it is evident that the current website is inefficient while the proposed new system is viable. The feasibility study showed that the capital, workforce, technology and time required to build the new website are available, and nothing can act as a controversy towards developing the new website.

Total Cost of Ownership (TCO)

TCO is significant as it assists in determining the cost estimate of the new system. The company will incur capital in purchasing new computer programs and hardware, and as well it will have operation expenses such as during training and testing of the website. Last and not least, the company will incur long-term expenses such as in the maintenance of the system. According to this analysis, the estimated cost the company will require is $4000 (Sandborn, 2013).

Return on Investment (ROI)

ROI is significant as it helps in making decisions by comparing the profits the system will yield with the cost of investment. After the implementation of the new website, the company is expected to make a profit of $1500 every month. Therefore, the ROI will be; 1500/4000 * 100 = 37.5%. From the ROI above, it is clear that the new website will bring more profits to the company and it will just take around three months for the company to cater for the cost of the implementation of the website (Clarke, 2014).

Solution options

There are various options in which the corporation can use to come up and implement the new website. The company can decide to employ a website designer who will come up and implement the new website, monitor it and continue perfecting it. As well, the company can choose to hire an IT expert or another company to develop and implement the new website. It means that every time the website has some problems or need improvements, the company will have to contact the developer as to be in a position to solve the issues.

Recommendations-Teacher

According to the analysis of the advantages and the disadvantages of the new HWE Accessories website, the website is worth developing since the company will make a lot of profits from it. As well, I recommend the company to employ a permanent website designer who will continue working on the system all the time and correcting any error rather than hiring a person just to develop and implement the system since this will cost the company a lot of money in the long run.

References

Top of Form

Clarke, G. E. (2014). CompTIA CASP CAS-002: Return on Investment and Total Cost of Ownership.

Bottom of Form

Top of Form

Sandborn, P. (2013). Cost analysis of electronic systems. Singapore: World Scientific.