TO:Scenic Company Limited
FROM:John Fletcher, Research Assistant
February 16, 2015
SUBJECT:New Computer Systems or Software upgrade
Theissue in the organization
Therecommendation report is proposing the installation of new computersystem or software upgrade. The current computers were purchased froma company called Smart-Tech. They have already worn down and do nothave any warranty. Recently it was discovered that they have starteda sort of self-destruction and are slow in terms of performance. Thecompany is requesting the installation of high-quality computersystems that will help meet the demands of the business and last fora longer period of 5 years as expected. These computers have been inuse for the last twelve months because the contract to supply hadbeen given to the lowest bidder only to find out that the systemsupplied was unreliable.
Thecompany has suffered numerous technical setbacks that have slowedbusiness activities and leading to inefficiency. The problems includefailed ventilation, malfunctioning power supplies and frequent shutdowns. In addition, a research conducted by an IT expert revealedthat the installed system comprised of Pentium 1, Windows 98 and 95that are no longer supported by Microsoft. They are outdated andtheir replacement parts are no longer available. The IT expertsuggested that a new computer system should be installed or softwareupgraded so that the company can perform effectively.
Alternativesproposed the advantages and disadvantages associated
Thereare three alternatives that the company is proposing. The firstrecommendation is buying new computer systems. Technology isadvancing so quickly and hence computers become outdated with time.One of the advantages of this option is that it comes with warrantyand free support (Bradley, 2010). In case it breaks down within thespecified period in the warranty, the manufacturer sends newreplacement parts or new computers. The disadvantage of thealternative is that the company does not have money budgeted for suchpurchases. The company needs assistance to get these computersystems.
Thesecond option that the company is proposing is upgrading the currentcomputer system. The company has old model computers. These issuescan be fixed by upgrading the software. The management thinks thatthere is no need for buying new computers they need to augment thecurrent ones. They are proposing to upgrade the RAM and hard drive.The benefits to the company are that it is cheaper to upgradesoftware as compared to buying a new system (Bradley, 2010). It alsohelps computers boot up faster and feel like a new computer. The lastalternative is building own computer systems. The company is alsoconsiders that building their own computers as the best answer. Thebenefit is that buying individual parts is less expensive than buyinga new computer. The organization customizes it in the way it wouldlike it appear. The disadvantage is that the company can wait forlong waiting for the shipment of parts. It could be frustrating forthe company to wait for days without working because the computer hasa problem (Bradley, 2010).
Areport issued by the IT expert showed that unless the companyurgently adopts one of the three alternatives proposed, it willcontinue losing business due to technical setbacks. The company doesnot have any money set aside to cater for such expenses because thecurrent computers were expected to last for the next 5 years. It isin need of a financial assistance so that it can successfully adoptone of the options. There are numerous benefits associated withadopting these alternatives. Having a functional computer system willhelp the company maximize efficiently (Bradley, 2010). It will alsoenhance easier accessibility to files, internet and other importantprograms. In total the company requires ten computers. The breakdownwas not expected hence installing a new system will be costly to theorganization. Out of the three alternatives, the company has decidedto buy a new system. This will be achieved in phases. The managementhas decided to purchase three computer systems from its currentbudget that will be used for essential computing sectors. During thenext financial year certain amount will be set aside in order to buymore computers until the whole system is restored. The company hasalso decided that in case of any financial assistance, they willrestore the whole system at once.
Bradley,G. (2010). Benefitrealization management: A practical guide to achieving benefits through change.Farnham, Surrey, England: Gower Pub.