Digital Innovation Project Report

Question: Discuss about the Project Report for Digital Innovation. Answer: Introduction Digital innovation is an element that is required to be implemented and adapted by the organizations all around the globe. The project revolves around an organization that is a small to medium scale business in size and sells its products through an online platform which is its own corporate web site. The project aims at increasing the customer base by including the latest elements of technology in its Business to Consumer e-commerce portal. The report covers the changes and measures that are necessary to be adapted by the organization along with the cost benefit analysis of the project. There will also be a number of strategy-based/operational and managerial changes that have been listed along with the steps to manage the same. Technological Requirements The web site that will be developed for the organization will have the following elements to make it digitally innovative and at pace with the latest changes in the technology. Live tracking of the items, instant messaging and optimization ability for the search engines Live video streaming Social media integration and marketing Web site along with the mobile application to but the products Industrialized Analytics with the use of Big Data Cloud data storage and management Security mechanisms implemented in the e-commerce portal The following technological requirements in terms of tools and interfaces will be essential for the successful implementation. Automated Information Systems - Tools There will be a number of automated information systems that will be implemented in the e-commerce portal of the organization. These will include order management system for live tracking of the orders, inventory management and sales management systems, transaction management system and budgeting systems. These information systems will be developed with the aid of the tools as Microsoft Visual Studio for the front end of the application development. Big Data Tools Big data tools will also be required for the purpose of analytics and business intelligence tasks. Data analytics will be done on the customer and management data that will be involved in the entire system. Hadoop would be the Big Data tool that would be utilized in the implementation of the tasks used for the analytical purposes. These tools will also be integrated with the cloud database to have a certain sets of automatic processes that will execute after a fixed interval and present the project resources with the analytics statistics and reports (Deloittedigital, 2016). Cloud Data Storage Tools Cloud database will be used for the storage of the data and information that will be associated with the application. Cloud database such as any of the NoSQL database will be essential in terms of the technical required associated with the data storage and other associated data operations. These databases will also make it easier to extract the reports and will have the ability to make automatic backups and disaster recovery as well (Aws, 2016). Security Tools A number of security software and packages will also be required to maintain the security infrastructure associated with the e-commerce portal and will also prevent the security risks and attacks that will be involved in the same. Anti-virus and other anti-malware packages along with intrusion detection and prevention systems will be required. Technological Integration Social media integration would be done with the aid of various elements such as incorporation of social media accounts in the login functionality, integration of the blog on the portal with the social media platforms and a number of other marketing strategies (Hendrickson, 2016). The existing technology will be integrated with the newer technology by applying the migration of the same in a step by step manner rather than performing the entire system migration all at once. The tools and equipment will be procured beforehand to provide and create the developmental environment for the resources. There would also be requirement to make changes in the network topology and network infrastructure associated with the organization and same will also be migrated in a gradual process to not disturb the existing practices and to also implement the newer system in a simultaneous manner. Structural and Managerial Changes A number of changes will be required to be done and managed in terms of the strategy and management policies that currently exist in the organization (Zovitsky, 2016). The strategy of the organization will be revised with the incorporation of the newer system and the management and maintenance that would be associated with the same. There will also be a number of changes that will be introduced for the employees and management policies shall be created around the same. These changes will include the following: Technological and operational changes in terms of the tools that are utilized, operations that will be associated with the execution of the processes. Employees may also show resistance to adapt the changes and it would be required to make them aware of the changes and the advantages that will be offered by them. Training schedule and training plan would be required to be created and managed by the management unit for the employees and for the end users as well. Digital Trust A beta version of the portal will be released for a group of users to understand the new system and to find out any loopholes in the same. This version will create the required level of buzz among the communities and in the market regarding the application. Digital trust will be built by spreading awareness about the application through various marketing and advertising platforms such as social media, print media and tele media. There is a major concern among the customers in the usage of the e-commerce portal in terms of the security of the system. The same aspect will be explained to the customers through the trainings and other marketing strategy explaining them about the security measures that are adapted to keep the data and information secured and protected at all times. Such an activity would result in buildup of the digital trust associated with the application (Laja, 2016). List of KPIs Following is a list of KPIs associated with the system. Number of orders received and completed Sales team (Navarro, 2010) Subscriber rate for the portal Average order value Overall e-commerce conversion rate Order requests Overall lead generation rate These KPIs will provide an idea on the successful implementation of the e-commerce portal and its performance in the market and among the users. Google Analytics will also be utilized to understand the site ranking and the average number of visits that are recorded in a specified period of time. Cost Benefit Analysis Project Costs Fiscal Year Program Element Element Manager 0 1 2 3 4 5 6 7 8 9 Tools cost A $11,500 Development and Installation Cost B $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 $16,500 Marketing Cost C $6,700 $6,700 $6,700 $6,700 $6,700 $6,700 $6,700 $6,700 $6,700 Training and Change Management Cost D $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 $8,200 Implementation Cost E $10,300 $10,300 $10,300 $10,300 $10,300 $10,300 $10,300 $10,300 $10,300 Program Total Costs By Year $11,500 $41,700 $41,700 $41,700 $41,700 $41,700 $41,700 $41,700 $41,700 $41,700 Program Grand Total Cost $386,800 Project Benefits Fiscal Year Benefit Sources 0 1 2 3 4 5 6 7 8 9 Reduction in Cost $0 $8,765 $8,765 $8,765 $8,765 $8,765 $8,765 $8,765 $8,765 $8,765 Tangible Benefits $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 Intangible Benefits $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 $21,800 Total Benefits Per Year $0 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 Confidence Factor 100% 100% 100% 100% 100% 100% 100% 100% 100% Benefits Claimed for Analysis $0 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $0 Program Grand Total Benefit $474,120 Summary of Cost and Benefits Fiscal Year 0 1 2 3 4 5 6 7 8 9 Undiscounted Flows Costs -$11,500 -$41,700 -$41,700 -$41,700 -$41,700 -$41,700 -$41,700 -$41,700 -$41,700 -$41,700 Benefits $0 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $59,265 $0 Net Cash Flow -$11,500 $17,565 $17,565 $17,565 $17,565 $17,565 $17,565 $17,565 $17,565 -$41,700 Discount Factors Discount Rate 7.0% Base Year 0 Year Index 0 1 2 3 4 5 6 7 8 9 Discount Factor 1.0000 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 Discounted Flows Costs -$11,500 -$38,972 -$36,422 -$34,040 -$31,813 -$29,732 -$27,786 -$25,969 -$24,270 -$22,682 Benefits $0 $55,388 $51,764 $48,378 $45,213 $42,255 $39,491 $36,907 $34,493 $0 Net -$11,500 $16,416 $15,342 $14,338 $13,400 $12,524 $11,704 $10,939 $10,223 -$22,682 Cumulative -$11,500 $4,916 $20,258 $34,596 $47,996 $60,520 $72,224 $83,163 $93,386 $70,704 Net Present Value $70,704 Internal Rate of Return 153% Conclusion There are a number of technological requirements that will be associated with the application to introduce the element of digital innovation in the same. These requirements will be in terms of the hardware, software and network requirements and will demand an upgrade to be done in the existing infrastructure. The e-commerce portal for the organization will keep the element of security updated at all times to make sure that there are no loopholes associated with the security of the system present in the entire infrastructure. References Aws, (2016). Amazon Web Services (AWS) - Cloud Computing Services. [online] Amazon Web Services, Inc. Available at: https://aws.amazon.com/ [Accessed 5 Oct. 2016]. Hendrickson, K. (2016). Six Market Research Trends For 2016. [online] Greenbookblog.org. Available at: https://www.greenbookblog.org/2015/12/17/six-market-research-trends-for-2016/ [Accessed 5 Oct. 2016]. Laja, P. (2012). How To Create A Useful Value Proposition w/ Examples. [online] ConversionXL. Available at: https://conversionxl.com/value-proposition-examples-how-to-create/ [Accessed 5 Oct. 2016]. Navarro, D. (2010). 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