NMIMS Global Access School for Continuing Education (NGA-SCE) Course: IT

Project Management Internal Assignment Applicable for December 2023 Examination

1. You have just been appointed to the newly created position of VP of IT at Sparrow
Industries – a 60-year manufacturing company in Chandigarh. In your first meeting,
the CEO, Satinder Singh Sparrow, told you that he is unhappy with the present
situation of disparate legacy IT systems in the company and wants them to be fully
integrated. You recommended that the company move to a Standard ERP System. As a
first step, the CEO has asked you to assess the Feasibility of this initiative.
What types of feasibility studies will you perform and what would they assess? Prepare
an Executive Summary of the outcomes of the Feasibility Study to serve as a basis for a
detailed discussion with the CEO and the rest of the Leadership. (10 Marks)
Ans. **Introduction:**

In the dynamic landscape of modern business, the integration of disparate legacy IT systems
into a standardized Enterprise Resource Planning (ERP) system is a strategic imperative. As
the newly appointed VP of IT at Sparrow Industries, tasked with spearheading this initiative,
the first critical step is to conduct a comprehensive feasibility study. This study aims to assess
the viability and practicality of transitioning to a Standard ERP System. In this document, we
will outline the types of feasibility studies to be performed and provide an executive
summary of the outcomes, serving as the foundation for in-depth discussions with the CEO
and the leadership team.

**Concepts and Application:**

*a) Types of Feasibility Studies:*

1. **Technical Feasibility:**
- *Concept:* Evaluates the technical compatibility and readiness for implementing a
Standard ERP System.
- *Application:* This study assesses the current IT infrastructure, hardware, software, and
network capabilities. It determines if the existing technology can seamlessly integrate with
the proposed ERP system.

2. **Operational Feasibility:**
- *Concept:* Assesses how well the proposed ERP system aligns with the day-to-day
operations of the organization.
 - *Application:* Operational feasibility studies examine the impact on existing business
processes. This includes evaluating the adaptability of employees to the new system, potential
disruptions, and changes required in workflows.

3. **Economic Feasibility:**
- *Concept:* Evaluates the financial viability of implementing the ERP system.
- *Application:* Economic feasibility studies analyze the costs associated with
implementing the ERP system, including software licensing, hardware upgrades, training, and
ongoing maintenance. It also considers the potential return on investment (ROI).

4. **Legal and Regulatory Feasibility:**

- *Concept:* Examines the legal and regulatory implications of adopting the ERP system.
- *Application:* This study ensures compliance with industry-specific regulations and legal
requirements. It identifies any potential legal barriers or constraints that may arise during or
after the implementation.

5. **Schedule Feasibility:**
- *Concept:* Assesses the time required for the successful implementation of the ERP
system.
- *Application:* Schedule feasibility studies analyze the project timeline, considering
factors such as resource availability, project dependencies, and potential delays. It aims to
ensure that the implementation aligns with the organization's strategic objectives.

*b) Executive Summary: Feasibility Study Outcomes:*

1. **Technical Feasibility:**
- *Outcome:* The current IT infrastructure is robust, and most hardware and software
components are compatible with the proposed ERP system. Some minor upgrades may be
required, but overall, a smooth technical transition is feasible.

2. **Operational Feasibility:**
- *Outcome:* Operational feasibility is positive, with employees showing a willingness to
adapt to the new system. Workflow adjustments are identified, and a comprehensive change
management plan will be crucial for a seamless transition.
3. **Economic Feasibility:**
- *Outcome:* The economic feasibility analysis reveals that while there will be upfront
costs, the long-term benefits, including increased efficiency and reduced operational costs,
justify the investment in the Standard ERP System.

4. **Legal and Regulatory Feasibility:**

- *Outcome:* Legal and regulatory compliance checks indicate that the proposed ERP
system aligns with industry standards and regulations. No significant legal barriers are
foreseen, ensuring a smooth adoption process.

5. **Schedule Feasibility:**
- *Outcome:* The project timeline is realistic, considering resource availability and
potential dependencies. A phased implementation approach is recommended to manage the
transition effectively and minimize disruptions.
**Extended Discussion and Recommendations:**

*a) Further Considerations:*

1. **Risk Assessment:**
- *Concept:* Evaluate potential risks associated with the ERP implementation.
- *Application:* Conduct a thorough risk assessment to identify and mitigate potential
challenges. Risks may include data migration issues, resistance to change, or unforeseen
technical complications. Developing a comprehensive risk mitigation strategy is crucial.

2. **Stakeholder Engagement:**
- *Concept:* Involve key stakeholders in the decision-making process.
- *Application:* Ensure that representatives from various departments are actively engaged
in the decision-making process. Their insights and feedback are invaluable for addressing
department-specific requirements and concerns.

3. **Vendor Selection:**
- *Concept:* Choose a reputable ERP vendor with a proven track record.
- *Application:* Vendor selection is a critical aspect of the ERP implementation. Evaluate
vendors based on their experience, customer reviews, and the ability to provide ongoing
support. Engage in thorough negotiations to secure favorable terms.
4. **Change Management Plan:**
- *Concept:* Develop a robust change management plan.
- *Application:* Employee buy-in is crucial for the success of the ERP implementation.
Implement a comprehensive change management plan that includes communication
strategies, training programs, and mechanisms for addressing employee concerns.

*b) Recommendations:*

1. **Phased Implementation:**
- *Concept:* Implement the ERP system in phases.
- *Application:* A phased approach minimizes disruptions and allows for a gradual
adaptation to the new system. Start with a pilot implementation in a single department before
expanding to other areas.

2. **Training Programs:**
- *Concept:* Invest in comprehensive training programs.
- *Application:* Ensure that employees receive adequate training on the new ERP system.
This investment in education will empower them to use the system effectively, reducing the
learning curve and enhancing overall productivity.

3. **Performance Metrics:**
- *Concept:* Define key performance metrics for success.
- *Application:* Establish clear metrics to measure the success of the ERP implementation.
This could include improvements in operational efficiency, reduction in processing times, and
enhanced data accuracy. Regularly monitor these metrics to gauge the system's impact.

4. **Continuous Improvement:**
- *Concept:* Adopt a mindset of continuous improvement.
- *Application:* Post-implementation, solicit feedback from users and stakeholders. Use
this feedback to make continuous improvements to the system, addressing any identified
issues and optimizing processes.

**Conclusion:**
As Sparrow Industries embarks on this transformative journey, the feasibility study outcomes,
combined with the additional considerations and recommendations, provide a comprehensive
roadmap for a successful ERP implementation. The positive feasibility outcomes, coupled
with a proactive approach to risk management, stakeholder engagement, and vendor
selection, position Sparrow Industries for a seamless transition to a Standard ERP System.

In the discussions with the CEO and the leadership team, it is recommended to emphasize the
strategic importance of this initiative in fostering digital transformation, improving
operational efficiency, and ensuring long-term competitiveness. Addressing potential
challenges through a well-defined change management plan and continuous improvement
initiatives will contribute to the overall success of this endeavor.

By aligning technology with business objectives, Sparrow Industries is not only modernizing
its IT infrastructure but also laying the foundation for future growth and innovation. The
commitment to excellence in the implementation process will undoubtedly lead to Sparrow
Industries reaping the full benefits of a standardized ERP system.

2. You are a consultant to Allied Insurance Ltd. You are required to prepare the RFP to
be issued to System Integrators for implementing a Core Insurance Platform – Applied
Epic or Guidewire and integrating it to Allied’s existing Systems - D365 ERP & D365
CRM. Present the executive summary of the RFP with all requisite sections. For
additional information on the specific products, you may refer the company websites.
(10 Marks)
Ans. **Executive Summary: Request for Proposal (RFP) for Core Insurance Platform
Integration**

**Introduction:**
Allied Insurance Ltd. is embarking on a strategic initiative to implement a Core Insurance
Platform, either Applied Epic or Guidewire, and seamlessly integrate it with our existing
systems, D365 ERP and D365 CRM. This Request for Proposal (RFP) is an invitation to
experienced System Integrators to propose comprehensive solutions for the successful
implementation of the chosen Core Insurance Platform and its integration with our current
Microsoft Dynamics systems. The objective is to enhance operational efficiency, improve
customer experience, and ensure a seamless flow of data across our enterprise.

**I. Background:**
- Allied Insurance Ltd.: Brief overview of the organization, its mission, and key operational
areas.
- Project Objectives: Clearly outline the goals and objectives of the project, emphasizing the
need for a robust Core Insurance Platform and integration with existing D365 ERP and D365
CRM systems.

**II. Scope of Work:**

- Core Insurance Platform Implementation: Specify the scope, requirements, and expected
functionalities of the chosen platform (Applied Epic or Guidewire).
- Integration with D365 ERP: Detail the requirements for integrating the Core Insurance
Platform with our existing D365 ERP system, emphasizing data consistency and real-time
synchronization.
- Integration with D365 CRM: Outline the integration requirements with D365 CRM,
focusing on customer relationship management and data flow between systems.
- Data Migration: Clearly state expectations regarding the migration of existing data to the
new system.

**III. System Integrator Qualifications:**

- Experience: Provide criteria for the minimum years of experience and successful project
implementations in similar environments.
- Technical Expertise: Specify the required technical expertise in implementing and
integrating insurance platforms and Microsoft Dynamics systems.
- References: Request contact information for at least three references from similar projects.

**IV. Technical Requirements:**

- Applied Epic/Guidewire Expertise: Clearly define the technical capabilities and
certifications required for handling the chosen Core Insurance Platform.
- D365 ERP/D365 CRM Integration: Specify the technical requirements for seamless
integration with Microsoft Dynamics systems.
- Security and Compliance: Outline the security measures and compliance standards expected
to be adhered to.

**V. Proposal Submission Requirements:**

- Proposal Deadline: Clearly state the deadline for the submission of proposals.
- Proposal Format: Provide instructions regarding the format, structure, and content expected
in the proposals.
- Evaluation Criteria: Share the criteria that will be used to evaluate and score the proposals.

**VI. Project Timeline:**

- Implementation Schedule: Outline the expected timeline for the implementation, including
milestones and key deliverables.
- Testing and Quality Assurance: Detail the testing phases and quality assurance processes
expected during and after implementation.

**VII. Budget:**
- Cost Proposal: Request a detailed breakdown of the costs associated with the project,
including licensing, implementation, training, and ongoing support.
**VIII. Project Management and Governance:**
- Project Management Approach: Describe the preferred project management methodologies
and tools for ensuring a well-organized and controlled implementation.
- Governance Structure: Specify the governance framework, including roles, responsibilities,
and communication channels to facilitate efficient decision-making and issue resolution.

**IX. Training and Knowledge Transfer:**

- Training Requirements: Clearly outline the training needs for end-users, administrators, and
support staff.
- Knowledge Transfer: Specify the expectations regarding the transfer of knowledge from the
System Integrator to the internal teams for sustained system management.

**X. Support and Maintenance:**

- Post-Implementation Support: Detail the expected level of support immediately following
the implementation to address any teething issues.
- Ongoing Maintenance: Describe the long-term support and maintenance expectations,
including response times and escalation procedures.

**XI. Innovation and Continuous Improvement:**

- Innovative Solutions: Encourage System Integrators to propose innovative solutions or
features that could add value to our operations.
- Continuous Improvement: Emphasize the importance of a partnership that supports
continuous improvement, including updates, enhancements, and staying abreast of industry
best practices.

**XII. Legal and Contractual Requirements:**

- Compliance: Specify any legal and regulatory compliance requirements applicable to the
insurance industry and data protection laws.
- Contractual Terms: Provide information on the expected contractual terms, including
service level agreements (SLAs), penalties for non-compliance, and termination clauses.

**XIII. Vendor Demonstration:**

- On-Site Demonstration: Request information on the System Integrator's ability to conduct
an on-site demonstration of the proposed solution, showcasing key functionalities and
integration capabilities.

**Conclusion:**

This comprehensive RFP signifies Allied Insurance Ltd.'s commitment to selecting a System
Integrator that aligns with our vision for a technologically advanced, integrated, and
customer-centric organization. We seek partners who not only meet our technical
requirements but also share our commitment to innovation, excellence, and continuous
improvement.

We anticipate receiving proposals that not only address the outlined requirements but also
showcase a deep understanding of our business processes and the unique challenges of the
insurance industry. The successful System Integrator will play a pivotal role in shaping the
future success of Allied Insurance Ltd., and we look forward to building a collaborative and
mutually beneficial partnership.

The deadline for proposal submission is [insert deadline], and we encourage interested
System Integrators to submit their proposals in accordance with the guidelines outlined in this
RFP. We eagerly anticipate the opportunity to evaluate innovative solutions and select a
partner who will contribute to the realization of our strategic goals.

Thank you for considering this invitation, and we look forward to receiving your proposals.
Sincerely,

[Your Name]
Vice President of IT
Allied Insurance Ltd.

3. Mr. Chandy, CEO of Aluva Cooperative Bank has convened a meeting for all the
CxOs to discuss the bank’s IT Strategy Roadmap. At this meeting Mr. Vijay Kumar, the
newly appointed CIO has announced his intention to embark on an Application
Modernization Program to update all the Bank’s Legacy (Non-Core) Applications. In
this regard, Mr. Vijay Kumar has stated that he intends to Outsource the Development
and ongoing Maintenance & Support of these Applications to a 3 rd party IT Partner.
Mr. Moideen, the COO of the company, is skeptical and asks if Mr. Vijay Kumar has
considered all the issues involved. When Mr. Chandy, asked him if he had specific
concerns, Mr. Moideen immediately said "I see two issues that need detailed
discussion… (1) How will we ensure a Smooth Transition and Implementation and (2)
How will we maintain Confidentiality of Information?" How will Mr. Vijay Kumar
respond to Mr. Moideen’s queries on…
a. Smooth Transition and Implementation? (5 Marks)
Ans. **Introduction:**

As the newly appointed CIO of Aluva Cooperative Bank, Mr. Vijay Kumar recognizes the
significance of addressing concerns raised by Mr. Moideen, the COO, regarding the
Application Modernization Program and the outsourcing of development, maintenance, and
support to a third-party IT partner. In response to Mr. Moideen's specific concerns about
ensuring a Smooth Transition and Implementation, Mr. Vijay Kumar should provide a
comprehensive plan that addresses the complexities associated with this transformative
initiative.

**Concepts and Application:**

**1. **Detailed Transition Plan:**

- *Concept:* A structured approach to transitioning from legacy systems to modernized
applications.
- *Application:* Mr. Vijay Kumar should present a detailed transition plan outlining the
stages of the migration process. This includes an assessment of current systems, mapping
dependencies, defining milestones, and ensuring minimal disruption to ongoing operations.
The plan should incorporate a phased implementation approach to manage risks effectively.
**2. **Change Management Strategies:**
- *Concept:* Managing the human element of change during the transition process.
- *Application:* Acknowledging that employees may face challenges adapting to the new
system, Mr. Vijay Kumar should emphasize the importance of change management. This
involves effective communication, training programs, and support mechanisms to ensure a
smooth transition without compromising productivity. Employee engagement and
involvement in the transition process are key components.

**3. **Risk Mitigation and Contingency Planning:**

- *Concept:* Identifying potential risks and developing strategies to mitigate them.
- *Application:* Mr. Vijay Kumar should discuss the proactive identification of potential
risks associated with the transition, such as data migration challenges, system compatibility
issues, or unforeseen disruptions. A robust risk mitigation and contingency plan should be
presented, demonstrating the ability to address challenges swiftly and minimize negative
impacts.

**4. **Testing and Quality Assurance:**

- *Concept:* Rigorous testing to ensure the reliability and functionality of the new
applications.
- *Application:* Mr. Vijay Kumar should emphasize the importance of thorough testing
throughout the transition process. This includes unit testing, integration testing, and user
acceptance testing to validate that the modernized applications meet predefined criteria.
Quality assurance measures should be implemented to identify and rectify any issues before
full-scale deployment.

**5. **Communication Protocols:**

- *Concept:* Establishing effective communication channels during the transition.
- *Application:* Communication is critical throughout the transition. Mr. Vijay Kumar
should outline a communication plan that includes regular updates to stakeholders,
transparent reporting on progress, and a mechanism for addressing concerns or queries
promptly. Clear communication fosters trust and ensures that all stakeholders are well-
informed.

**6. **Collaboration with the Third-Party Partner:**

- *Concept:* Building a collaborative and transparent relationship with the outsourcing
partner.
 - *Application:* Mr. Vijay Kumar should highlight the importance of a strong partnership
with the third-party IT partner. This involves regular collaboration, joint planning sessions,
and a shared commitment to project success. Establishing service-level agreements (SLAs)
and clear expectations will contribute to a successful implementation.

**Conclusion:**

In responding to Mr. Moideen's concerns about ensuring a Smooth Transition and

Implementation, Mr. Vijay Kumar must convey a sense of confidence and competence in
managing the complexities of the Application Modernization Program. By addressing key
concepts such as a detailed transition plan, change management, risk mitigation, testing,
communication, and collaboration with the third-party partner, Mr. Vijay Kumar can instill
confidence in the organization's ability to navigate this transformative journey successfully.

In essence, the response should demonstrate a strategic and well-thought-out approach that
prioritizes not only the technical aspects of the transition but also the people and processes
involved. A collaborative effort, clear communication, and proactive risk management will be
pivotal in ensuring a smooth and successful implementation of the Application Modernization
Program at Aluva Cooperative Bank.

b. Confidentiality of Information? (5 Marks)

Ans. **Introduction:**

Addressing Mr. Moideen's concerns about confidentiality is paramount in the context of

outsourcing the development and ongoing maintenance and support of Aluva Cooperative
Bank's non-core applications. Mr. Vijay Kumar, as the CIO, needs to provide a robust
response that assures Mr. Moideen and the leadership team of the bank's commitment to
safeguarding sensitive information during and after the Application Modernization Program.

**Concepts and Application:**

**1. **Security Protocols and Compliance:**

- *Concept:* Implementing stringent security measures to protect sensitive information.
- *Application:* Mr. Vijay Kumar should emphasize that the outsourcing partner will be
required to adhere to industry-leading security standards and compliance regulations. This
includes robust encryption protocols, secure data transmission, and adherence to data
protection laws. The outsourcing agreement should explicitly state the security measures in
place.

**2. **Non-Disclosure Agreements (NDAs) and Confidentiality Clauses:**

- *Concept:* Legal safeguards to protect confidential information.
- *Application:* Mr. Vijay Kumar should assure Mr. Moideen that the outsourcing
arrangement will involve the signing of comprehensive non-disclosure agreements (NDAs)
and confidentiality clauses. These legal instruments will outline the scope of confidentiality,
the responsibilities of the third-party partner, and the consequences of any breach.

**3. **Selective Data Sharing:**

- *Concept:* Limiting access to specific information based on roles and responsibilities.
- *Application:* Mr. Vijay Kumar can explain that not all information needs to be shared
with the outsourcing partner. A selective approach to data sharing ensures that only essential
and non-sensitive data is provided. Access controls and role-based permissions should be
implemented to restrict unauthorized access to confidential information.

**4. **Data Encryption and Decryption Protocols:**

- *Concept:* Ensuring that data is securely encrypted and decrypted as needed.
- *Application:* Mr. Vijay Kumar should discuss the implementation of robust encryption
and decryption protocols. This ensures that even if data is intercepted, it remains unreadable
without the appropriate decryption keys. This technology safeguard is critical in transit and
when stored on servers.

**5. **Secure Development Practices:**

- *Concept:* Implementing secure coding practices to protect against vulnerabilities.
- *Application:* Mr. Vijay Kumar should assure Mr. Moideen that the outsourcing partner
will follow secure development practices. This includes regular code reviews, vulnerability
assessments, and adherence to best practices in software development to mitigate the risk of
security breaches.

**6. **Monitoring and Auditing:**

- *Concept:* Continuous monitoring and auditing to identify and address security risks.
- *Application:* Mr. Vijay Kumar can highlight that the bank will implement robust
monitoring and auditing mechanisms to track activities related to the outsourced applications.
Regular security audits will be conducted to identify any anomalies or potential breaches,
ensuring a proactive approach to maintaining confidentiality.

**Conclusion:**

In addressing Mr. Moideen's concern about maintaining confidentiality, Mr. Vijay Kumar
must convey a sense of diligence and commitment to protecting sensitive information
throughout the outsourcing arrangement. By implementing a multi-faceted approach that
includes legal safeguards, encryption protocols, selective data sharing, secure development
practices, and continuous monitoring, Mr. Vijay Kumar can demonstrate the bank's proactive
stance on confidentiality.

Confidentiality is a non-negotiable aspect of outsourcing, and the bank's leadership, under

Mr. Vijay Kumar's guidance, should prioritize it as a core element of the outsourcing strategy.
This approach not only instills confidence within the leadership team but also aligns with
industry best practices for safeguarding sensitive information in the rapidly evolving
landscape of IT outsourcing. Mr. Vijay Kumar's response should underscore the bank's
commitment to a secure and confidential Application Modernization Program that prioritizes
the protection of the bank's valuable information assets.