Reference no: EM132225008

Analyze & Decide: Apply IT Concepts to Business Decisions

Read the information given, and respond in detail, to the questions below.

Spring Street Company (SSC) wanted to reduce the “hidden costs” associated with its paper-intensive processes. Employees jokingly predicted that if the windows were open on a very windy day, total chaos would ensue as thousands of papers started to fly. If a flood, fire, or windy day occurred, the business would literally grind to a halt. The company’s accountant, Sam Spring, decided to calculate the costs of its paper-driven processes to identify their impact on the bottom line. He recognized that several employees spent most of their day filing or retrieving documents. In addition, there were the monthly costs to warehouse old paper records. Sam measured the activities related to the handling of printed reports and paper files. His average estimates were as follows:

- Dealing with a file: It takes an employee 12 minutes to walk to the records room, locate a file, act on it, refile it, and return to his or her desk. Employees do this 4 times per day (five days per week).

- Number of employees: 10 full-time employees perform the functions.

- Lost document replacement: Once per day, a document gets “lost” (destroyed, misplaced, or covered with massive coffee stains) and must be recreated. The total cost of replacing each lost document is $200.

- Warehousing costs: Currently, document storage costs are $75 per month.

Sam would prefer a system that lets employees find and work with business documents without leaving their desks. He’s most concerned about the human resources and accounting departments. These personnel are traditional heavy users of paper files and would greatly benefit from a modern document management system. At the same time, however, Sam is also risk averse. He would rather invest in solutions that would reduce the risk of higher costs in the future. He recognizes that the U.S. PATRIOT Act’s requirements that organizations provide immediate government access to records apply to SSC. He has read that manufacturing and government organizations rely on efficient document management to meet these broader regulatory imperatives. Finally, Sam wants to implement a disaster recovery system.

Prepare a report that provides Sam with the data he needs to evaluate the company’s costly paper-intensive approach to managing documents. You will need to conduct research to provide data to prepare this report. Your report should include the following information:

1. What is the problem and some critical issues?

2. Prepare a SWOT Analysis

3. What is a solution to the problem?

4. What is an implementation plan for the solution in both the short AND long term?

5. How will you monitor and evaluate this plan and solution?