Project Name: Strategic IT Plan for HHI
Submitted by: Roy Louis Garcia
Department: Information Technology Focus Area: Enterprise Application Architecture for Small Business
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Table of Contents Project Name: Strategic IT Plan for HHI.......................................................................................................1 Table of Contents........................................................................................................................................2 Analysis of EAI for HHI ................................................................................................................................4 Systems and Data Integration......................................................................................................................6 Part 1: Integration Issues.........................................................................................................................6 Part 2: Design, Planning and Deployment................................................................................................7 E-business or E-commerce...........................................................................................................................9 Enterprise Information Systems................................................................................................................11 Security Issues...........................................................................................................................................12 Transformation through Web-based technology......................................................................................13 Proposed Web Site Design.........................................................................................................................14 Analysis......................................................................................................................................................15 One of the most important aspects of deciding to join in the internet revolution is a company’s ability to adapt to the changes happening within the e-community. Considering this means that HHI may not only be a company adapting to changes, but become one that pioneers changes. This will happen as HHI aims to take advantage of adapting to the newest e-commerce paraigms available: Web 2.0 marketing, cloud computing, AdSense, etc...........................................................................................................................16 Appendix A: Copies of sample Web pages created....................................................................................17 Appendix B: Annotated Bibliography:........................................................................................................21
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Introduction HHI manufactures and sells rustic and specialty decorative hardware for doors and windows through printed catalogs distributed to door and window retailers, and at home shows. Currently, they have no web presence unlike their competitors: Wild West Hardware and Rustica Hardware. In order to compete, HHI needs to improve their IT infrastructure and implement e-commerce, particularly web-based business operations, to open new ways of marketing, conducting business-tobusiness operations, and establishing business-to-consumer direct sales as well. With these change increase in marketing and sales, including extending sales into Canada and Mexico will benefit the company. The effective application and management of IT will make processes better, faster and cheaper. Applying Enterprise Application Integration (EAI) will aid in planning for this transition from HHI’s legacy system to the targeted, new integrated system. Analysis of the current legacy system should be made to better implement the planned integration. Enterprise Architecture should aid management to make decisions on the approach to make these changes with the least negative effect on its current operations. Currently, there are separate systems supporting critical functions—primarily accounting, inventory management, and sales order and fulfillment. Most of these commercial off-the-shelf (COTS) systems were purchased individually over time and are not integrated. They result duplicate data entry, data discrepancies, and information processing inefficiencies. Systems are generally reconciled manually at the end of each week. Orders, which are sometimes lost or misplaced, are accepted by phone, fax, or mail exclusively. The ideal of EAI is to integrate not only technology, but people and business processes as well.
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Analysis of EAI for HHI EAI, will HHI to have to opportunity in solidifying external relationships with suppliers, customers and shipping companies. EAI not only deals with technology but also deals with people and their behavior towards this change. "Integrating software and hardware—the technical integration—is only one aspect of integration. The biggest challenge may be the behavioral integration." (Lee 2003) sales order and fulfillment system
People
A board composed of Chief Executive Officer (CEO), Chief Operations Officer (COO), Chief Financial Officer (CFO) and Development and Strategic Planning Officer (DSPO)* 30 full time employees 20 artisans on contract as needed 3 IT support
Technology
accounting system inventory management system
Process
Production of products Taking Orders Delivery of Products Customer Support Inventory Management Marketing Financials Sales
Management should decide if the legacy systems will still be in used and if middleware should be incorporated for integration. Currently, the Business Process Diagram of HHI would show:
CUSTOMERS
CARRIER
Accounting system
delivery
order
delivery
sales order and fulfillment system
sales order and fulfillment system
Heathwood Hardware, Inc. Production
Supplies
ARTISANS
Inventory Materials s
High demand
Customer Service/ Sales
Delivery
inventory management system
PROCUREMENT
EAI would be able to help management see that integration is needed and all the systems can be consolidated. This will ease internal business processes. It would also speed up ordering time and improve customer experience. More people can be reached by having web presence and customers will
Page |5 be able to track the delivery of their product. Suppliers of materials will have automated replenish system with HHI. Artisans will be able to view work orders online and may even bypass HHI and deliver the product from their shops. All these will be possible with an integrated system. HHI still has a long way to go but integration through Enterprise Architecture is a requirement. They may consolidate every planning in one system that can handle financials, inventory and management. They can even keep COTS and choose a middleware approach. No matter what they decide on, proper architecture should be applied in order to connect machines, people and processes.
The challenges for integration dwells on Management decision to have Business Processes Reengineering and make changes or retire legacy systems, or opt spending money on middleware that will aid in integration. Of course there is always the human factor of behavior towards change and integration.
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Systems and Data Integration Part 1: Integration Issues As discussed in the previous section. Management needs to decide on whether to use middleware or make the website a focal point of the business. Replacing the commercial off-the-shelf (COTS) systems is crucial. If Business Process Reengineering (BPR) would be applied, retiring the legacy systems should be discussed. This will lessen the complexity of the Enterprise Integration Architecture. The current data integration comprises of:
No Middleware and Retired COTS
CUSTOMERS
CARRIER
delivery
sales order and fulfillment system
Accounting system
Heathwood Hardware, Inc. Customer Service/ Sales
Production
Supplies
Materials s
High demand
ARTISANS
Inventory
PROCUREMENT
Delivery
inventory management system
delivery
order
sales order and fulfillment system
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Part 2: Design, Planning and Deployment IT Planning: •
Scope Analysis
•
System Analysis: analyze existing database and interface for the following: sales order and fulfillment system
•
inventory management system
Database Design and Migration Plan: Identify Users and their access privileges o
•
Accounting system
Identify all entities that translates to tables:
Customers
Management
Internal Employees
Artisans
Products and Categories
Etc
Interface Design and Security
Extranet or Internal Portal (Modular) • MODULE 1: Management/IT/System Interface • MODULE 2: Inventory/Accounting/Human Resources • MODULE 3: Test Environment Web Development and Interoperability • MODULE 5: User and Security • MODULE 6: Interface Design • MODULE 7: E-Commerce Web Design (Customer/Supplier/Procurement/Public View) • MODULE 8: Login and Site Mapping • MODULE 9: Features and Usability Testing • MODULE 10: Operations and Transactions Testing in Development Environment DUPLICATE WEB SITE as Production Copy GO-LIVE Planning and Management: • Marketing • Company Identity/Design • Go Live for each Module
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E-business or E-commerce Management’s decision to conduct business electronically entails crucial and necessary longterm decisions. An e-commerce website development project does not happen overnight and takes more than just picking the right people, tools, payment merchants and products. Establishing an e-commerce site involve management choices that has long term effect it the success of the project. One example of a decision is regarding whether web hosting should be in-house, meaning the team will be acquiring a machine that will host the webserver, which will contain the files and database related to HHI’s website or leased. HHI’s ability to have its own web host machine is unlikely. It is not feasible for them or any firsttime-on-the-web company. What they can opt to do is to acquire dedicated hosting or even a shared hosting. The important thing is that they can acquire an SSL certificate from a secured hosting company. It is always advantageous to be under the protection of a well-known bigger hosting company that invest on your own server and be responsible for everything. If the future, when HHI successfully grows, having an in-house hosting is realistic and maybe the right decision. The next decision is to pick the type of hosting OS. Linux is more stable, secured and preferred choice for e-commerce sites. In effect, HHI can also choose to save money by picking non-propriety applications: Apache, as the webserver; MySQL, for database; and Php for scripting language. Once HHI have these in place, they can opt to use Joomla, a Content Management System. Joomla is one of the most popular and used open source CMS because of its user-friendliness, customizability and expandability. Designers, developers, administrators and users will be able to create websites that caters to their need. The most challenging part with Joomla is the one-time installation, customization and initial security setups, but the actual maintenance is shared by assigned users with different roles. These roles, such as administrator, manager, publisher, author, editor and registered are the default roles which has specific access that ultimately make website maintenance a collaborative effort. Lastly, it is an open source program and cost to install, customize and maintain is so much lower than hiring developers and being stuck with them for updates.
P a g e | 10 Security is also a concern when using Joomla. Joomla is still prone to attacks, but there are various websites and books that offer information on how to make a Joomla installation secure. There are sites that explore Joomla security and forums that can provide substantial information on how to make a part of your Joomla install secured. Lastly, another open source program that can save HHI money should be considered. VirtueMart is an” e-Commerce shopping cart solution for Joomla. It is used by thousands of store owners. It can be run in Store- and Catalog-Mode. With its powerful Administration Tool you can handle an unlimited Number of Categories, Products, Orders, Discounts, Shopper Groups and Customers.”(“VirtueMart” 2001) When all these are in place, HHI will need to establish business processes around these technologies. The diagram below shows interaction points relating to e-commerce:
CUSTOMERS www.HHI.com/shopnow www.HHI.com/shopnow www.HHI.com/sales www.HHI.com/sales www.HHI.com/contact www.HHI.com/contact
Production
Marketing www.HHI.com/production www.HHI.com/production www.HHI.com/training www.HHI.com/training
ARTISANS
CARRIER
Customer Service/
IT Support
Purchase/Advertisem
www.HHI.com/trackorder www.HHI.com/trackorder ww.HHI.com/shipping ww.HHI.com/shipping
Inventory www.HHI.com/inventory www.HHI.com/inventory www.HHI.com/supplier www.HHI.com/supplier
Management/Stake Holders
Delivery PROCUREMENT
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Enterprise Information Systems HHI’s potential growth from creating a website not only introduces possibilities but before that, adjustments need to be made. One example of such adjustment is having the need to abide or establish standards. An example of such standard is data representation and portability. The reason for doing this is to be assured that external companies will be able to use your data on their system if needed. If given early enough, they can adjust their requirements accordingly. This can be done technically, by making sure that the database can be exported to an XML file that can be used by another. Also, the need to functionally determine what data can be divulge to certain people needs to be discussed. Privacy and the general rules on data stewardship are important. This is the reason why most websites would have a Privacy Policy visible on their site. This is also the reason why some companies’ website prefer not to enable data collection; legal issues need to be considered when opt to save sensitive information from site visitors. Having acquired integration status, HHI’s is geared to creating a strong position over its current and future competitors in the Information Technology arena. With the website, the demographics of customers can be collected and used to improve products and services. Also, HHI can now compete on seeking not only individuals as customers but also businesses. HHI stakeholders and employees will benefit in terms of increased financial returns or a better quality of life. HHI will realize how this IT innovation will generate the following: increased profit, improved IT stratagem, and an improved quality of life for all. In order to realize these, the website needs to also be integrated internally.
Diagram:
External Database External Database VISA MERCHANT VISA MERCHANT
External Database External Database AMEX MERCHANT AMEX MERCHANT
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XML XML Database
XML XML CUSTOMERS
www.HHI.com/sales www.HHI.com/sales www.HHI.com/contact www.HHI.com/contact
www.HHI.com/shopnow www.HHI.com/shopnow
HHI Marketing Customer Service/ Sales
m i g r a t i o n
LEGACY: LEGACY: sales order sales order and fulfillment and fulfillment system system
Security Issues Security is important on any website, especially those designed to take in personal information and save them on some database. HHI’s will be using some kind of shopping cart system. Security should start with the installation of this module. Using an open source shopping cart system, Virtue Mart, guarantees numerous forums, and documentation about security implementation. The use of SSL certificate and https: address is standard and actually required by credit card merchants. Aside from the module that involves money transactions, there is still a need to secure the whole Content Management System (CMS) which is Joomla. Joomla is known for its user-friendliness, customizability and expandability. Designers, developers, administrators and sales people will be able to access the website depending on what they need to interact with. Joomla is powerful and easy to implement. The most challenging part with Joomla is the one-time installation, customization and initial security setups, but the actual maintenance is shared by assigned users with different roles. These roles, such as administrator, manager, publisher, author, editor and registered are the default roles which has specific access that ultimately make website
P a g e | 13 maintenance a collaborative effort. This creates the need to give access to the only people allowed to interact with certain information. Joomla has the capability to assign roles and pages to each user, according to their functions. HHI will need to choose a good hosting company that is known for the security and uptime history. For security, it is a balance of having enough resources for webmasters but is also stable and reliable. Of course, HHI will have to invest on hosting and acquire the minimum requirement for supporting a secured e-commerce system. SSL certificate is needed for credit card merchants. This means that the site should have a dedicated IP address. This can only achieve if HHI will choose a dedicated server at most, but a dedicated IP address within a shared hosting server is suffice.
Transformation through Web-based technology The website will then enable HHI customers to browse products and order online. They should be able to register to have access to some privilege pages like special deals, change password and information, track order and delivery, pay via PayPal and credit card, etc. They should also be able to submit product reviews and rating, submit customer service concerns and other push oriented information. This enables management to listen more to customer purchase behavior and learn to market HHI products accordingly. Management can use tools to access to Web Traffic Information, Monthly Sales Report, Inventory Panel and Reports, etc. Internal Employees will have their Self Service Page that enables them to clock-in. request for benefits, adjust their work schedule and request for day offs. Marketing may now have a strong marketing tool in Mass-mailing capability: both electronically and snail mail. Customer signing up will know that their information will be kept and can be used for marketing as long as they do not opt out of it. All these will change the way HHI interacts externally and internally. HHI can now market itself not only to geographically isolated community, but within virtual communities of consumers. The internet’s rich pool of community will now open up to HHI. HHI will now grow along with the progressive transformation of the internet.
P a g e | 14 Cheaper unlimited online access, wireless connectivity of portable gadgets, the increasing number of web 2.0 content geared to wider spectrum of people and the commercial success of companies providing free and money-making web solutions. The popularity of portable computing via various gadgets: laptops; smart cell phones, and netbooks create a bigger market of potential consumers for businesses of all sorts. Google AdSense brings income to website owners with valued content to offer to this market. If before, most website owners are big businesses that pay big to get their flashy website up and running, now we see a shift in this paradigm. A HHI’s IT team, even with newly acquired programming skill can earn residual income from Google Adsense for HHI. The possibilities are limitless.
Proposed Web Site Design The approach of our web designer is to preserve the authentic rustic-look and feel that is familiar to HHI’s traditional customers. This approach also has the differentiation effect from HHI’s two considered rivals. Instead of presenting the products like a customer is purchasing from some warehouse or stockroom, HHI aims to presents its products as if they were displayed in a showroom. Below are sample graphics that aims to capture these intentions:
Hidden behind the rustic-look, the website will have private pages that showcase the true value and modernity of the website. Depending on login credentials, customers, suppliers, procurement, artisans, etc. will be able to view pages that are specific to what they are allowed to do on the site. The diagram on the next page shows these various pages and connections:
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Diagram:
CUSTOMERS PROCUREMENT Customer Service/ Sales
sales order sales order fulfillment fulfillment accounting accounting Inventory Inventory Management Management User Management User Management Product listing Product listing e-commerce e-commerce
www.HHI.com/shopnow www.HHI.com/shopnow www.HHI.com/sales www.HHI.com/sales www.HHI.com/contact www.HHI.com/contact
Marketing
www.HHI.com/inventory www.HHI.com/inventory www.HHI.com/supplier www.HHI.com/supplier
www.HHI.com/trackorder www.HHI.com/trackorder ww.HHI.com/shipping ww.HHI.com/shipping
Production
www.HHI.com/production www.HHI.com/production www.HHI.com/training www.HHI.com/training
IT Support Note: Color Coordination Denotes access to the pages
Server Info: Operating System: Linux Database: MySQL version 5.1.47 Scripting Language: Php 5.2.14 Web Server: Apache 2.2.16
Analysis
Delivery
CARRIER Management/Stake Holders
ARTISANS
Inventory
P a g e | 16 HHI’s decision to expand its market by creating a website opens the company’s doors to possibilities. Along with these possibilities are decisions that need to be made in order to push the web sites potential to its maximum. Even though the website will be the focal point of processes, other integration points need to be considered. The website makes HHI part of a community that is governed by innovation, profit and ease of use. HHI need not aim to embrace everything modern but be knowledgeable enough to evaluate trends to adapt and justify some to reject. Ultimately, the project aims to provide customers to browse products and order online. They should be able to register to have access to some privilege pages like special deals, change password and information, track order and delivery, pay via PayPal and credit card, etc. They should also be able to submit product reviews and rating, submit customer service concerns and other push oriented information. Aside from customers, management should be able to have access to Web Traffic Information, Monthly Sales Report, Inventory Panel and Reports, etc. IT Support would have access to the back panel, Traffic Analytics, FTP, SSH, Development Pages, Technical Support Forums, etc. Internal Employees working on various departments would be able to interact with Customers, Artisans, Carriers, Management, IT Support, etc. Procurement companies have access to their own interface for Inventory Supplies. Access to database will be possible for automation. Artisans would be able to have their own assigned login to view orders assigned to them. The website will also support various communication and collaborative tools: internal messaging, workflow, surveys, internal news, etc. One of the most important aspects of deciding to join in the internet revolution is a company’s ability to adapt to the changes happening within the e-community. Considering this means that HHI may not only be a company adapting to changes, but become one that pioneers changes. This will happen as HHI aims to take advantage of adapting to the newest e-commerce paraigms available: Web 2.0 marketing, cloud computing, AdSense, etc.
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Appendix A: Copies of sample Web pages created
P a g e | 18 URL: http://vle13.capella.edu/1251344/default.html
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Appendix B: Annotated Bibliography: Ferrera, A. Preventing SQL Injections. Retrieved: November 28, 2010, from http://developer.joomla.org/security/articles-tutorials/258-preventing-sql-injections.html This article may be too technical but I will use this page to show an example on how an attack to Joomla can be patched Joomla Security Center. Retrieved: November 28, 2010, from http://developer.joomla.org/security.html This website is where I will get information regarding the JSST or Joomla Security Strike Team. I will also use this to discuss Joomla security risks submitted to the Joomla Community. http://www.joomla.org This is the official Joomla website. I will use this as a reference for documentation and case studies related to Joomla security http://www.apache.org This is the official Apache site. I will use this to discuss Apache related security settings to make Joomla more secured http://extensions.joomla.org This is a community-driven download and forum site for Joomla Extensions. I will use this to discuss vulnerability due to extensions and how members of the community warns each other for malicious extensions.
http://www.sigsiu.com This is the site of a popular extension that has support forum for Joomla-related issues. Lee J., Siau K., & Hong S.(2003). Enterprise Integration with ERP and EAI. Communications of the ACM Vol. 46, No. 2 ( Feb 2003 ed.) 54-60 doi:10.1145/606272.606273 This is a good source for understanding the basics of ERP and EAI. Muthu S.,Whitman L., & Cheraghi S. H. 1999. “Business Process Reengineering: a Consolidated Methodology.� Industrial Engineering Theory, Applications and Practice November 1999: 17-20. Retrieved November 4, 2010 from http://webs.twsu.edu/whitman/papers/ijii99muthu.pdf This source discusses the benefits of BPO. VirtueMart Retrieved from http://extensions.joomla.org/extensions/e-commerce/shopping-cart/129 This source discusses the benefits of VirtueMart and its e-Commerce capabilities. North, B. Joomla! 1.5: A User's Guide: Building a Successful Joomla! Powered Website. New Jersey, Prentice Hall.
P a g e | 22 This book helps both the beginners and advance users of Joomla. I currently use this as a reference and training material to my clients who wants to learn Joomla. In this book, I will use it to tackle the installation part and how crucial it is to establish security early on. Severdia, R., & Crowder, K. (2009). Using Joomla: Building Powerful and Efficient Web Sites. California: O' Reilly Media. This is a book I will be using to list security good practices for Joomla.