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GEM STREAMING PROJECT

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.

• Names: Charchenko Elizabeth, Ogburn Sam, Peridou Jade and Zhou Lesley
• University: The London School of Economics and Political Science
• Course: MG208 – Business Transformation and Project Management
th
• Date: October 6 , 2015
• Assignment: Summative group assignment (Michaelmas Term)
• Instructions: See below.
• Word Count: 1,306
• Grade: 72 – First Grade

Please cite this paper as:


Charchenko E., Peridou J., Ogburn S. & Zhou L. (2015). Gem Streaming Project
Business Case. Unpublished Assessment. The London School of Economics and
Political Science.

"Unless otherwise indicated, all materials on these pages are copyrighted by Jade
Peridou. All rights reserved. No part of these pages may be used for any purpose
other than personal use. Therefore, reproduction, modification, storage in a retrieval
system or retransmission, in any form or by any means, electronic, mechanical or
otherwise, for reasons other than personal use, is strictly prohibited without prior
written permission."

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
REQUIREMENTS

Study the project scenario provided and work together to produce a report consisting
of the documents detailed below. The content of the report should show
understanding of the taught material as well as thoughtful application of tools and
methods on the course. Allocate time to conduct independent research about the
project topic and business area.
It is likely that you will need more information than is included in the case scenario.
This reflects real life situation as project managers are often faced with incomplete
information with additional information given over time, as well as conflicting and
changing requirements. You are encouraged to make reasonable assumptions so long
as they are consistent with the case scenario.

The main report must include:


• Business case analysis
• Stakeholder analysis
• Benefits review
• Risk analysis
• Project plan

CASE SCENARIO

Gem Productions is a medium-sized company producing programmes for major TV


channels. At a recent off-site strategy meeting, the CEO Jensen Moore announced that
Gem needs to “face the future”. After much discussion, the Gem board agreed to
embark on a “streaming project” developing on-demand multimedia services. The
attraction for Gem lies in reaching audiences at a new scale and scope rather than
being dependent on traditional media channels. Market research suggests that Internet
streaming is becoming more widely adopted and pointed to the popularity of on-
demand multimedia services such as video (e.g. YouTube, Vimeo, Metacafe), film
and TV (Netflix, Amazon, JustWatch), music (Apple Music, Spotify, Pandora)
Internet radio (WFMU, Live365, AccuRadio) audiobooks (audible, Project
Gutenberg, LibriVox), and more.

Gem Productions has no prior experience with streaming nor can they make the
expansion using their existing technology. Chief Technology Officer, Meena Shaw,
has made the decision to outsource the development of a digital streaming platform to
StreamTech. A group of six technical staff led by Peter Brant from StreamTech have
been assigned to Gem’s project with a brief to deliver streaming production and
broadcasting systems. Gem’s production executive, Sheelagh Reeves has proposed
that the streaming project leverages the “Little Gems” portfolio of children’s

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
programs. This includes an archive of classic shows, current productions, and a
pipeline of proposals for new content.

You work for Gem and your group is the project team assigned to lead this project.
Gem has limited the project expenditures to a maximum of £1,500,000 (+/- 10%) for
a project that will focus only on children’s content. The project begins on November 1
and the first programme should be streamed no later than September 1 the following
year (Reeves has said she wants the launch to coincide with the start of a new school
year).

The Gem board has given you a mandate to deliver solutions that will create a:
• Single online ‘front-door’ suitable for children’s programmes
• Way for children to be active creators and not merely passive consumers
• Pathway of entertainment and learning content for children that matures with
them

You will need to plan tasks and assign team members to them from a list of people
involved in the project. Regular meetings need to be held with the team and
stakeholders as well as other forms of communication. Approval points are needed
through the project sequence. Risks, testing, quality control and provision issues may
develop. Issues with security, reliability, integrity, interfaces between the old and new
systems, marketing and communications are all considerations as you plan the project.
User training and other preparations will be required for system implementation.
Remember…the origin of this project was Jensen Moore’s flash of inspiration and he
wants it to inform the strategy process going forward.

BACKGROUND AND CONTEXT

Until recently the complexity and cost of existing solutions has deterred Gem from
streaming content but their new Chief Technology Officer, Meena Shaw, has assured
them that small to medium content providers can afford the technology required.
Meena has worked with Peter Brant (who is heading up the outsourced technical
development at Gem) at her previous place of employment but does not know his
execs at StreamTech. Both Brant and StreamTech have reputations for being highly
competent but Meena has heard through her profession network that Brant went over
budget on one of his recent projects so she has some private concerns. Meena is also
not familiar with the agile PM methodology used by StreamTech. How will it impact
the more traditionally trained Gem staff members?

Gem’s in-house IT team, which is responsible for maintaining current information


systems (applications) and the technical infrastructure, is wondering how the venture
into streaming is going to affect them. Will their responsibilities be enlarged to

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
include maintaining and perhaps future expansion of streaming facilities? What
support will they be given to acquire new skills needed for this? They are also worried
that following successful outsourcing project to Stream Tech more aspects of IT
might be outsourced and their jobs might be threatened.

The children’s production team consists of ten people and most of them are excited to
be involved in the project because it will give them an opportunity to showcase their
award-winning programmes. There has been lively discussion about which existing
programmes to include in the project and whether they should produce ‘born digital’
content. Some team members are concerned that the streaming project indicates a drift
to digital content and are not entirely comfortable with Gem’s creative direction.
Their concerns are summed up as follows: “What next - apps? Kids spend too long on
screen…these resources would be better allocated to exploring partnerships with book
publishing companies.”

Gem’s production executive, Sheelagh Reeves has been trying to contact their award-
winning animator Mason Manovich to secure his involvement but has not received a
reply. She is concerned that Mason is getting advice from his lawyers about how to
renegotiate his contract with Gem to include new clauses about asset management and
copyright. Henrick Jones, Director of Marketing is concerned that without a star
product from Mason they will not have the material to promote Gem’s streaming
venture. He has been given minimal budget for marketing and is trying to translate the
CEO’s conviction that “streaming will go viral for Gem” into practice for his team.

Meanwhile, one of Gem’s existing customers Mary Pearson (Director of


Programming at a major TV channel) has heard rumours that Gem is exploring
streaming options and is anxious to talk to them. And it is always possible that the
project will be outmanoeuvred by digital platforms or publishers who could decide to
stream content aimed at the children’s market.

SUMMARY OF PERSONNEL INVOLVED IN THE PROJECT

• Peter Brant (PB) Technical Head, StreamTech (outsourcing company)


• Henrick Jones (HJ) Director of Marketing, Gem Productions
• Jensen Moore (JM) CEO, Gem Productions
• Mason Manovich (MM) Animator, Children’s Productions (contractor)
• Katie O’Ryan (KRO) Corporate Lawyer, Gem Productions
• Mary Pearson (MP) Director of Programming, Major TV Channel
• Sheelagh Reeves (SR) Production Executive, Gem Productions
• Meena Shaw (MS) Chief Technology Officer, Gem Productions
• Team of ten staff in children’s production.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
ASSUMPTIONS

The mandate for the project is based on the scenario including the CEO’s mission
statement, project budget, project tolerances, timescale, staff, and outsourcing partner.
• Communicate with the course leaders as if they are members of the Project
Board. It is OK to ask course leaders and guest practitioners questions about
the project.
• You will work as a team, sharing responsibility for project management.
• The outsourced technology development will be undertaken as a separate
‘black boxed’ sub-project. You do not need to break it down for the project
plan.
• The mandate for the new project has been approved but project initiation has
to be given a green light by the project board. Much depends on the
documents you submit!

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
GEM STREAMING PROJECT BUSINESS CASE

Executive summary
This project is critical to our continued relevance as a player in the children's media
industry. By implementing the first children's streaming platform we stand to gain
significant market share and a much larger ROI than our conservative estimate of
approximately 11.6%. Our innovation will revolutionize the industry by gaining
control of our content and its distribution. In changing our business strategy, we
threaten our traditional distribution markets, challenge our employees to adapt to new
strategies and risk excessive expenses and possible damage to reputation. This shift in
business strategy positions us at the forefront of our industry leading our competitors
and us into the new digital age.

Reasons, Deliverables and Options


The survival of Gem Production relies on adaptability in this ever-changing business
environment. Pursuit of this project will ensure the company's relevancy in today's
digital world, accessibility for consumers who require "on-demand multimedia
services" and customer loyalty through providing positive streaming experiences
(refer to Appendix I).
Deliverables include (refer to Appendix II for alignment of company strategies):
• Single online "front-door" suitable for children's programmes
• Way for children to be active creators
• Pathway of entertainment and learning content for children that matures with
them

With these deliverables in mind, we intend to restrict the scope to developing an


online streaming system for children's material based on our perceived competitive
advantage in this niche market. In evaluating Gem's situation, we have identified three
options the company may implement (refer to Appendix III). The first is base case,
which will render Gem outdated and reliant on distributors; the second is changing
content distributors, which would avoid having to implement new IT systems, but at
the cost of losing control of how Gem would like its content distributed; the third is

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
introducing streaming services, which would require developing and maintaining a
new system, but would allow Gem to rely on itself to distribute content as well as
increase relevancy and accessibility for millennial consumers.

The Gem streaming project team will


prioritize time and quality,
sacrificing cost if necessary, in order
to capture large returns from
developing a quality, innovative
product before competitors.

Expected benefits
The purpose of this project is to develop a new streaming platform, which would
increase profits, develop our market share, and strengthen customer loyalty. We
divided the company's gains into two categories to globally apprehend the multiple
benefits at different organizational levels. While the Project Execution Methods focus
on the advantages of the streaming management process, the Organization
Deliverables and System Strategy highlight the corporate expected accomplishments
of Gem. By linking those diverse achievements to our brand image, the profitability
and sustainability of our company will secure stakeholders' contribution and
confidence. Please refer to the Benefit Analysis document for more in depth analysis.

! Project Execution Methods – The implementation of an innovative


streaming technology gives the in-house team the opportunity to learn from
the expertise of the outsourced staff. The major benefits of their
intercommunication include enhancing global productivity and costs savings.
Multiple risks are also mitigated due to staff's critical analysis and creative
solving techniques. But above all, Gem continuously strives to sustainably
develop the platform and take into account all stakeholder needs.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
! Organization Deliverables and System Strategy – Successfully launch the
streaming platform by reaching targeted objectives and effectively managing
the new streaming technology. By gathering data, the implementation of a new
technology allows to improve our company's services, image, and
competitiveness allowing us to be flexible in our responses to customer needs.
The development of the project endeavours to be in accordance with Gem's
organizational sustainable and ethical issues.

Expected Dis-benefits
The establishment of a new streaming technology can engender multiple dis-benefits
among stakeholders. While restructuring the company can severely impact
administrational strategy, project in-house staff would have to deal with several
negative outcomes arising from outsourcing. The threat of losing control over the
project is one of the main concerns of Gem's IT team. Globally, the culture of the
company needs to be accordingly redesigned without pressurizing various and
divergent internal stakeholders' interests. Please refer to refer to Appendix IV for
more complete analysis of dis-benefits.

Timescale
Overview of the Project Plan will start with contract negotiation between StreamTech
and Gem (1 week), followed by a period of platform development led by StreamTech
(5.5 months), before entering a beta period for testing, creative content retuning and
data analyzation (3 months). From there on, Gem staff will be trained by StreamTech
to integrate new project systems (1 month), followed by launch of the project (2 days)
and ending with project closure and handoff after thorough audit of benefits review (2
weeks). For further information on the Timescale please refer to the Project Plan in
the following Gantt chart. Project benefit realization will emerge both within the
duration of the project and after its closure; please refer to the benefits analysis
document for more information. Please refer to Appendix V for a more detailed
analysis of investment opportunities.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
Key Resources
• 6 StreamTech team members under Peter Brandt (refer to stakeholder
analysis)
• In-house Gem council (lawyer, internal IT team, children's staff production,
etc.) (refer to stakeholder analysis)
• Potential new hires (media streaming experts, consultants, etc.)
• Brand loyalty
• Servers
• Creative content
• Limited marketing funds

Assumptions
• Gem owns the servers or is willing to purchase servers to host streaming site.
• Gem will remain loyal to the waterfall methodology, but will make efforts to
work along with and observe SteamTech's Agile methodology.
• Conservative estimates of revenue growth of 10% in year one, 8% per annum
in the following 8 years, fixed costs, depreciation period, and cost of capital.
• Sustainability principles are already integrated into Project Charter addressing
human rights issues, labour practices, environmental concerns, consumer
issues and community engagement. Principles will balance sustainability
constraints and Project Charter goals.

Costs and Investment Appraisal


The basic cash flow and investment analysis, shown in Appendix V, utilizes the given
budget and makes conservative estimates of future cash flows to demonstrate that the
project should, at minimum, generate a Internal Rate of Return of approximately
11.6% and a Net Present Value (NPV) of £476,309 despite an initial capital outlay of
£1.5 million. It is worth noting that even if the project were to go 10% over budget, as
allowed for in the project plan, it would generate an IRR of 9.8% and would have a
NPV of £348,390. These numbers are based on what are perceived as conservative
estimates of revenue growth of 10% from the first year to the second and 8% per
Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
annum in the final 8 years. Gem does, however, believe that the project has the
potential to generate much higher revenue growth than this projection as has been
demonstrated by the successes of such peers as Netflix and Youtube. In the analysis,
other conservative estimates of the project include fixed costs, depreciation period,
and cost of capital. The transformation of our business model from strictly a content
producer to a content distributer in the niche market of childhood development media
positions the firm to better monetize the current popularity of our content and build
greater brand loyalty in the years to come. Please refer to Appendix V for a full cost
and investment appraisal.

Surfacing Issues
As Gem transitions its business strategy to face the future and become not only a
content creator but also a distributer, the project team and the business face huge risks
to achieve large benefits. As a project team, we are closely monitoring the risks of
increased cyber security threats, the knowledge transfer from StreamTech to our
internal teams, and project management issues between StreamTech’s Agile
management and Gem’s waterfall methodologies. As a business, we are monitoring
the risk of a public backlash at a poorly functioning product, public backlash at
promoting increased child screen time, and a delayed launch threatening our
competitive edge and ROI. Please refer to Appendix VI and the Risk Analysis
document for a more comprehensive analysis of project risks.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
APPENDIXES

Appendix I
Reasons
• Relevancy – in today's digital, dynamic world, we must cater to consumer
needs. Since customers are more prone to use "on-demand multimedia
services" and market research suggests that Internet streaming is more widely
adopted, we need to be flexible and adjust to customer wants and expectations.
Relying on traditional media channels is not enough to survive in this industry
anymore.
• Accessibility – indeed at our core we are a creative media content production
company; however, this content must be deliverable to our audiences in order
for them to enjoy
• Customer loyalty – by providing children positive streaming experiences early
on in their years, we have more likely encouraged them to become faithful
consumers

Appendix II
Deliverables Company Strategies
• Open new market and opportunities
from streaming business
Single online "front-door" suitable for
• Changing company strategy and
children's programmes business model to become
distributor
Way for children to be active creators • Open new market and opportunities
and not merely passive consumers from streaming business
• Open new market and opportunities
Pathway of entertainment and learning from streaming business
content for children that matures with • Changing company strategy and
them business model to become
distributor

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
Appendix III
Option 1 – Base Case – Do Nothing
Description Costs
• Continue to use existing processes and • Existing maintenance costs continue. !
systems.
Risks Barriers
• Those shifted to the digital age will
• Gem’s reliance on traditional media.
no longer want to use traditional
• Channels cause decrease of viewership
media channels.
and ultimately decline of profits.
Strengths Weaknesses
• Employees understand and can • Gem content becomes inaccessible to
maintain the systems as they are now.! millennial. !
• Minimal cost for continuing to • Traditional media channels become
out-dated causing our company to be
maintain systems.!
• Won’t lose focus on creating quality out-dated.!
creative media content.!
Option 2 – Change Content Distributors
Description Costs
• Hire new distributors to find ways to • Existing maintenance costs continue.
display our content through other forms
of media other than traditional • Cost of hiring new distributors.
channels.

Risks Barriers
• We still cannot provide our content on • Content streaming is not under Gem
demand. control.!
• Other companies’ streaming methods
may not be competent – we lack
control of how our content is presented.
• Distributors may target
wrong audience or market
inefficiently.
Strengths Weaknesses
• Won’t lose focus on creating quality • Still reliant on distribution companies
creative media content.! so they have leverage on Gem.
• Will not have to implement new IT • Not in control of our own content.
system.! • Unable to ensure accessibility and
customization to users for overall
• Viewers will somewhat be able to
access our content through distributors’ positive experience.
multimedia services.!
Option 3 – Introducing Streaming Services
Description Costs
• Outsource a digital streaming platform • Existing maintenance costs continue !
company to design, develop, • Costs for design, development,
implement and maintain a “on- testing, implementation, training and
demand” multimedia streaming service marketing.!
for Gem users to access through non-

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
traditional media channels.
Risks Barriers
• Staff may have hard time adapting to • Developing new system may draw
focus and resources away from
new system changes.!
Gem’s ability to produce creative
• Costs of project may run over budget.!
content.!
• Mason may refuse to be involved in
• Stakeholders may not agree to the
project.!
development and implementation of
• Competitors adopting similar streaming
new system. !
strategies before our implementation.!
• Potentially alienating our current
customer base.!
Strengths Weaknesses
• Will run accordance to how millennials • Costs of developing, implementing
expect to access creative content.! and maintaining new system.!
• No longer relying on distribution
• Lack of adequate staff training will
companies, thus saving costs.!
• Developing customer loyalty by cause confusion and frustration.!
targeting children at young age.! • Problem with stakeholder resistance.!
• Adjusting to competitive digital
environment later on will be more
costly than if we start now.!

Appendix IV
Perceived dis-benefit Stakeholder(s) concerned
• New governance strategy and protocols • Old administration
will have to be implemented to fully
incorporate the new streaming platform.
• Streaming extension competes with other • Director of Programming
branches of the company, particularly at external distributions
traditional distribution processes. (Mary Pearson)
• Director or Programming
(Sheelagh Reeves)
• Supplementary costs of back office • Chief Technology
necessary to set up the streaming Officer (Meena Shaw)
platform (faster connection with bigger
and more powerful servers needed).
• Suppressing or redefining jobs because • Gem’s in-house IT team
of outsourcing.
• Lack of in-house control due to new • Gem and Jenson Moore
outsourcing.
• Cultural shift in organization due to new • Gem
strategy and mission.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
x
V
Assumptions:
First Year Revenue
Second Year Reven
Revenue Growth Ra
Variable Operating
Original Cost of Eq
Years to Depreciate
Salvage Value % (fo
Marginal Tax Rate

Cost of Capital

NOTE
THAT
ALL
NUMBE
RS
BELOW
THIS
ARE
CALCU
LATED,
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INPUT,
except
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1.

Income Statement:

Revenue
Variable Operating Ex
A Depreciation

p
Pretax Income (exc
pe
Initial Cost
n Less: Taxes based o
di Add back: Depreciat
Net Cash Flow ig
ht
Cost of Capital (or r)

DiscountedRe
Cash Flow
se
NPV of Cash Flows - based
rv
NPV of Cash Flows - using NPV function
ed
Internal Rate of Return - using IRR function
Should we.Rbuy or not?
ig
ht
Al
lL
.
Z
ho
u
&
Total S.Ogburn

4,420,89 J.,
1,326,26
1,500,00 Peridou

1,594,62 E.
1,594,62
(1,500,00 Charchenko

318,92
1,500,00

1,275,69
1,275,69 2015

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op
yr
Appendix VI
Surfacing Issue Mitigation Plan
Major Project Execution Surfacing Issues
• Security threats ; • and cyber attacks; • Research
most up to data cyber
with our customers putting secure security; consider bringing in risk
information on the web for the first management consultants.
time we must be prepared to protect
their information.
• Lack of adequate training and • Focus a portion of time to
communication among current Gem knowledge transfer, and technical
employees. training. Ensuring that the staff
feels entirely comfortable with
system before StreamTech hands
off the project.
• Project management difficulties • Consultation, workshops, and
between StreamTech agile weekly meetings with all team
methodologies and Gem's waterfall members on agile methodologies.
techniques. Clear communication within
internal team.
Major Business Surfacing Issues
Public backlash at increasing child Market product as an educational
screen time. device.
Failed product launch threatening the At a final Go/No Go meeting have
reputation of the business. a critical, unbiased assessment
Delayed launch resulting in of system functioning.
competitors developing similar Prioritize time and quality over
products children targeted products cost.
before Gem and capturing market
advantages.
Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
BENEFITS REVIEW

Measures for Capacity (benefit


Benefit Success realization) Barriers
Qualitative Benefits from Project Execution Methods
Strengthen Improved flow of Highly likely The different
communication and positive because Gem is methodologies
cooperation between communication in really enthusiastic used can create
internal and external both meetings and about working with misunderstandings
teams. outside project StreamTech. and frictions.
communication;
Project leaders will
interview team
members on personal
reflections of project
communication.
Enhance creative and Interview internal Likely because Gem StreamTech can be
technical skills of all staff employees about will learn from willing to share only
through an innovative lessons learned from StreamTech's a limited amount of
partnership between StreamTech. Include expertise. knowledge.
StreamTech and Gem. reflections meetings
Enable improved and at end of project plan.
quicker decision-making
by sharing knowledge.
Gain cultural flexibility At project reflection Unlikely because Cultural
and responsiveness by meetings, discuss Gem's staff will entrenchment
observing StreamTech's benefits of Agile probably be willing of traditional
Agile methodology and methodologies and to continue using its methodologies.
considering potential the possibility of traditional
implementation for future adopting Agile in the methodology.
products. future.
Build efficient network of Interview internal Highly likely Gem staff's lack
people by enhancing employees about because Gem staff is of basic technical
transparent information- lessons learned from enthusiastic about knowledge.
sharing and mutual StreamTech. Include working and
communication between reflection meetings at learning from
in-house staff and end of project plan. StreamTech.
outsourced team.
Organizational Maintained positive Highly likely Initial funding and
sustainable principles public opinion and because of time constraints for
reflected in the project: employee satisfaction reputational sustainable practices;
Gem's labour practices regarding Gem's enhancement and shareholders and top

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
and business processes sustainable practices. assurance of a long- executives of Gem
respected. term sustainable may not believe
business model. sustainable practices
are necessary.
Establishing a trust-based Continued Likely because Gem Miscommunication,
relationship with relationship with staff is enthusiastic insurmountable
StreamTech may lead to StreamTech. about working and cultural differences
future collaborative learning from can deteriorate
projects. StreamTech. relationship and
even lead to project
failure.
Striving to develop a Brand loyal Likely because of Competitors attempt
brand-new platform with costumers transition strong company to undercut our
fair prices focused on to using and ethics, Gem intends prices.
meeting the needs of purchasing the new to keep prices fair
consumers. streaming platform and affordable.
while simultaneously
expanding our
costumer base.
Increase workers' Interview internal Likely because Gem Lack of company
productivity by valorising employees about staff will appreciate funding to increase
talents from both lessons learned from monetizing their wages.
StreamTech outsourced StreamTech. Include value to the
staff and Gem in-house reflection meetings at organization.
employees and providing end of project plan.
fair salaries.
Respecting sustainability Delivering a quality Somewhat likely; Strict deadline
principles help to product within the hard to anticipate imposes tight time
successfully deliver the deadline and potential cost constraints.
streaming platform within reasonable allocated setbacks due to time
time, quality and costs budget. constraints.
constraints.
Quantitative benefits from Project Execution Methods
Save costs in wages and Include benefit Likely because it is Outsourcing is
time in formation by review of what would not necessary to pay costly, especially if
using an outsourcing have been the cost if outsourced project experiences
company to implement project were temporary setback.
the streaming technology. insourced versus employees costly
actual project benefits.
outsourcing cost.
Qualitative benefits from Deliverables and System Strategy
Being first movers Being the first Unlikely because Competitors might
entering into a niche children's streaming competitors' actions launch similar

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
market for children's product on the market are unknown. products; budget and
streaming. and gaining large resource constraints
market shares. to meet deadline.
Develop a coherent, Holding customer Very likely a Miscommunication
innovative and attractive focus groups with consequence of a of requirements
brand image By providing both children and collaborative expected of
qualitative contents, parents to understand development process StreamTech.
consumers satisfaction customer satisfaction with StreamTech in
(through word-of-mouth and needs. collocated
and social media) will innovation days.
have positive impacts on
Gem's brand reputation.
Interacting with Online discussion Likely, Gem's team Ineffective consumer
customers through forums and customer will develop a feedback platforms.
feedback promotes Gem's feedback surveys to collaborative
engagement to address understand customer relationship between
their needs. satisfaction and production team and
needs. IT team.
E-learning and streaming Building a Likely because a part Parents want to limit
give wider access to sustainable, education of our streaming their childrens' time
interactive, educational driven brand image as contents will be spent online.
materials for children; measured in focus educationally
building Gem's groups. focused.
sustainable brand.
Engaging and responding Building a Unlikely, Gem may Educational
to the interests of new sustainable, education not have the institutions may be
external and internal driven brand image. resources to reluctant to let
stakeholders, such as communicate with children use
schools and learning educational experts. streaming so early.
centres' concerns.
Quantitative benefits from Deliverables and System Strategy
Gaining market share.! Convert 50% of our Highly likely if we Traditional
traditional content are the first movers consumers reluctant
consumer base to the in this new niche to convert to new
new streaming market. streaming
platform. technology;
competitors
launching similar
products.
Achieve ROI by 11.6% Hitting this Likely, with our Unpredicted
after 10 years of business. Investment Return predicted financial financial setbacks.
Target. forecast.
Increase consumer data Incorporation of data Highly likely Gem team may not

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
analytics (CDA) to better analytics into the because have the processes
adapt our creative process creative process and StreamTech's final developed to analyse
to produce the content content. streaming product data in a meaningful
consumers demand based will be incorporating manner.
on emerging opportunities these analytical
and trends. tools/
Forming a community of Tracking customer Highly likely Gem team may not
young customers that will consumption patterns because have the processes
be loyal towards the and interpreting StreamTech's final developed to analyse
brand in the future. consumer data streaming product data in a meaningful
analytics. will be incorporating manner.
these analytical
tools.

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
STAKEHOLDER ANALYSIS

By determining all the stakeholders involved in this project and evaluating the ability
of their influences, we will be able to align the program plans with the interest of key
players, which will in turn help us gain allies to propel the project forward. The table
below demonstrates all those who will be impacted by the project, an analysis on their
interest, followed by techniques to manage these interests. This table is also
transformed into a Power/Interest grid categorized by evaluating stakeholders' power,
legitimacy and urgency of their claim for visual reference. From our grid, we come to
the conclusion that key stakeholders that deserve management's highest priority
include Gem executives, Peter Brant, Mason Manovich, Gem's Children's Production
Staff and Gem shareholders.

*Note&the&grid&is&subject&to&change&through&the&project&as&interests&and&power&shift&over&time &

Stakeholder Interest Analysis Technique to manage


Gem executive Highly interested since the Assign team member to attend weekly
team: team desires for Gem to “face meetings communicating updates and
Jensen Moore (CEO) the future” by developing on- addressing arising concerns whether
Meena Shaw (Chief demand multimedia services this is via video conferencing or in
Tech Officer) that will increase audience at person meetings
Sheelagh Reeves new scale and scope
(Production Exec) Highly powerful because team
Henrick Jones is making decisions and
(Marketing Director) funding the project
Peter Brant Highly interested and powerful Assign team member to attend weekly
(Technical Head of since Gem is relying on this meetings communicating updates and
StreamTech) with outsourced team of expertise to addressing arising concerns
team of 6 deliver streaming production Frequent project briefings and status

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
and broadcasting systems updates
Mason Manovich Highly interested for he can Assign team member to attend weekly
(contractor) make a hefty profit from this meetings with Manovich to ensure he
project has the right support from Gem, his
Highly powerful because Gem creative concept aligns with Gem
relies on his “star product” to objectives and he is always updated
promote streaming venture with the team’s plans
Gem’s Children’s Highly interested because the Assign specific project tasks to
Production Staff “Little Gem” project falls undermembers
their department Hold daily “update meetings”
Highly powerful for they Addressing problems right when they
decide what digital content is to arise
be produced and released
Children viewers Low in interest of project, but Questionnaires or online surveys that
high in power because they are determine what children want to see in
target audience the new online streaming content
Parents Low in interest of project, but Questionnaires or online surveys that
high in power because Gem determine what parents want in online
must produce content that streaming content
parents will allow their children
to view
Regular viewers Low in interest and power Utilize social media such as Twitter and
Facebook to update viewers with new
streaming service
Publish online articles to keep viewers
informed
Gem shareholders Highly interested and highly Publish weekly newsletters that keep
powerful because they hold the shareholders in the loop
equity
StreamTech Interested, but succumb to the Ask Brant to choose a member from his
executive team needs of Gem because they are team to work with executive team in
clients answering any questions/concerns they
may have about the project
StreamTech Low in interest and power Utilize social media to update
shareholders shareholders with new streaming
service
Publish online articles to keep them
informed
Gem’s in-house IT Highly interested because the Hold training workshops that will teach
team venture into streaming IT team the new skills needed
potentially affects them Host open Q&A sessions so questions
whereby (i) their can be clarified and confusion can be
responsibilities expand to also addressed right away
maintain and perhaps help with Communicate with IT team exactly
future expansion of streaming what their responsibilities are at weekly
facilities (ii) they need to learn meetings
new skills to facilitate these Address any concerns or insecurities IT
new services (iii) they feel they team may at weekly meetings

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
may be replaced with more
outsourced IT in the future
Low in power because
ultimately executive team
decides when and what to
outsource
Rest of Gem staff Highly interested because manyHold training workshops that will teach
may have to acquire new skills staff about the new skills needed
to work with this new service, Send out online survey to understand
but low in power because exec what other struggles staff may have
team makes the decisions with adjusting with new streaming
service
TV Channels Although highly interested Communicate with content distributors
Content because project succession in a sit down meeting to hash out what
Distributors could lead to broken down new agreement will be
relations, they don’t hold power
in decision making

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
GANTT CHART PROJECT PLAN

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
RISK ANALYSIS

As Gem productions embarks on a strategy changing project where we transform the


scope of the business, there are multiple risks involved with such an exploratory
project. Ultimately, the goal of the entire project team is to develop an atmosphere
which is understanding of the risks involved in a project which will revolutionize the
industry. High reward comes with a high risk, but failure of the entire project is
unacceptable because we view this as essential to our continued competitiveness of
the business. As a team, we will strive to produce an exceptional product,
understanding that short term problems can be fixed and whistleblowing come
consequence free but only when admitted and identified. Otherwise short term
problems will amount to long term crises and ultimate project failure. We are excited
for the possibilities of developing a direct to consumer business model.

Consequences
Likelihood
Insignificant Minor Moderate Major Catastrophic
Almost
certain
Likely
Possible
Unlikely
Rare
Key&of&Risk&Matrix;&analyzing&both&the&likelihood&and&consequence&

Risk
Matrix*
(Magnitude versus
Risk Description Mitigation Plan Likelihood likelihood) Responsibility Accountability
Cyber Security

Ensure up to date
Piracy copyright and security Possible • Peter Brant Meena Shaw
protocols

Security threats and


cyber attacks; with our
Research most up to
customers putting
data cyber security;
secure information on
consider bringing in risk Possible Peter Brant Meena Shaw
the web for the first
time we must be management •
prepared to protect consultants
their information

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
IT

Update current website


essful integration with and online systems to Peter Brant and
Unlikely Jenson Moore
systems work fluidly with new Meena Shaw
system

Build in contractual
Testing failures • Peter Brant Peter Brant
incentives for on time Possible
delaying launch
delivery

Cultural and Knowledge Transfer


Focus a portion of time
to knowledge transfer,
Lack of adequate and technical training.
training and Ensuring that the staff •
Peter Brant and Meena Shaw
communication feels entirely Likely
Meena Shaw
among current Gem comfortable with
Employees system before
StreamTech hands off
the project
Keep communication
open and honest on
Top management may project progress with •
have a hard time top management.
adjusting to this new Consider hiring Likely Jenson Moore Jenson Moore
business strategy of additional experts in
streaming streaming and media
distribution on
management team.
Marketing
Mason Manovich may
refuse to be involved Continue to negotiate
with the project with Mason Manovich; •
causing there to be however, begin looking Jenson Moore
Sheelagh Reeves
lack of promotion or at other front men to use Likely
he may have a costly in promotion of the
price that exceed ours launch
budget
Consider allocation of
project budget towards
marketing campaign.
Lack of promotion Consider low cost
due to limited marketing strategies,
marketing budget may such as social media
cause the public to be and traditional cheaper Possible • Henrick Jones Jenson Moore
unaware of the new marketing promotions
streaming option, thus such as email and
causing a low ROI discounts. Ensure
marketing segmentation
to applicable target
consumers.
Project Execution and Surfacing Outsourcing Issues

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
Consultation,
workshops, and weekly
meetings with all team
members on agile
methodologies to
guarantee that there are
no miscommunications
between Gem’s
Project management
waterfall project plan
difficulties between •
and StremTech’s agile Meena Shaw,
StreamTech agile
project plan. Clear Likely Peter Brant, Jenson Moore
methodologies and
communication within internal Sheelagh Reeves
Gem's waterfall
team.
techniques
Host colocation days
and have innovation
days between the teams.
Ensure integrated
working techniques to
foster a strategic
partnership for
innovation and learning.
Have a systematic but
inclusive process for
requirements changes,
requiring governance
signoff on requirements
changes after initial
Business Requirements

Scope creep because Document signoff. Meena Shaw,
of innovation style Peter Brant, Meena Shaw,
Systematically allowing Likely
Sheelagh Reeves, Peter Brant
project change to be possible,
Jenson Moore
but ensure that changes
are discussed
transparently to ensure
that scope creep will not
get out of hand. Have
monthly scope quality
reviews.

Culture classes
Scrum style weekly
between StreamTech’s
meetings. Create an
younger, innovative Meena Shaw,
team and Gem’s environment of Possible • Jenson Moore
Peter Brant
transparent, flexible
established, creative
communication.
environment
Monthly budget
meetings with Peter
Brant and Meena Shaw. •
Illustrate clear legal Meena Shaw,
StreamTech going ramifications for going
Likely Peter Brant, Katie Jenson Moore
over budget over budget and
O’Ryan
creating a standardized
reporting of risk.
Consider a fixed cost
contract
Public Branding

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.

Public backlash at
increasing child Market product as an Possible Henrick Jones Jenson Moore
screen time educational device.

Failed product launch At a final Go/No Go


threatening the meeting have a critical, Peter Brant and
Unlikely Jenson Moore
reputation of the unbiased assessment of Meena Shaw
business system functioning

Entering direct Continue


streaming business communications with
could threaten our old partners, explaining
current partners such shift in strategy and
as Mary Pearson and offering them Likely • Sheelagh Reeves,
Henrick Jones Jenson Moore
lead to losses in consolations such as
revenue from bigger margins of
traditional distribution revenue from Gem
methods content
Delayed launch
resulting in
competitors
developing similar
Prioritize time and
products children Possible • Jenson Moore Jenson Moore
quality over cost
targeted products
before Gem and
capturing market
advantages
International Barriers
Different legal
ramifications of Bring in local media
content streaming in •
legal experts before Jenson Moore
international Likely Katie O’Ryan
entering international
countries, limiting markets
scope of business
International Team
could face team Ensure clear team Peter Brant,
conflicts communication across
Likely Meena Shaw, Jenson Moore
time zones and effective
work sharing methods • Sheelagh Reeves

Content language may •


conflict with local
languages in new Consult local cultural
international markets experts before entering Likely Sheelagh Reeves Jenson Moore
new markets

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International Content
Rating systems
differences preventing Consult local cultural Sheelagh Reeves
• Jenson Moore
entrance in new global and legal experts before Likely
and Katie O’Ryan
markets entering new markets

Legal
Inability to stream
certain content due to Pre-negotiate
content creators— contractual clauses to
such as Manson Possible • Katie O’Ryan Jenson Moore
ensure seamless
Manovich— international expansion
contractual barriers

International Data
Laws causing
difficulties in entering Bring in local legal
international markets issues before we enter Possible • Katie O’Ryan Jenson Moore
into market

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
LONDON SCHOOL OF ECONOMICS: DEPARTMENT OF MANAGEMENT

MG208: Business Transformation and Project Management

Feedback for Summative Group Assignment

STRUCTURE

Unsatisfactory □
Fair
CLARITY OF ARGUMENTS
□ Good □ Very Good □ Excellent x
Unsatisfactory
USE OF MATERIALS

Fair □ Good □ Very Good □ Excellent x
Unsatisfactory □
Fair
QUALITY OF WRITING
□ Good x Very Good □ Excellent □
Unsatisfactory
REFERENCING
□ Fair □ Good □ Very Good x Excellent □
Unsatisfactory □ Fair □ Good □ Very Good x Excellent □
Overall: Excellent ‘sell’ by the business case. Sections are out of order but the content of
the report is strong and the analysis is insightful.
Business case – Really excellent business case. Explores the alternatives but strongly sells the
way forward. (But a short summary of main options should be in the main document (business
case) with more detailed analysis in appendix.) Nice to substantiate the claimed benefits with a
table exploring the financials. Remember to conclude the business case by asking for approval
and budget release.
Stakeholder analysis – Very well done. Could have included a note about Mary Pearson in the
TV Channels/content distributors box.
Benefits review – Very well done. Put the most substantial benefits first – some of the most
significant ones were buried later in the table. It’s a long table and if the exec gets switched off
by the first few items they may only skim the rest thus potentially missing some important
material for the project.
Risk analysis – Excellent. The language that you choose in a risk analysis has to be diplomatic
so that you don’t scare the execs. The method chosen worked well
Project plan – Gantt printed way too small to read. Where are the assumptions? Need to have
them close by so that the exec can glance at them when they review the Gantt rather than
searching back/forth through the doc to make sense of it. The time allowed for contract
negotiations is too probably too short.

Grade: 72
I = First (70+) IIi = Upper Second (60-69) IIii = Lower Second (50-59)
III = Third (40-49) F = Fail (under 40)
Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.

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