Example Business Impact Analysis

Exceptional Living, Inc.: Business Impact Analysis

 

  1. Determine the business areas

    1. Financial system (BuildMaster)

    2. Business Intelligence (Project Managers)

    3. Sales and Marketing

 

  1. For each business area, determine the business processes and identify the essential processes.

    1. Financial System – Tracks overhead and profits
    2. Business Intelligence – Tracking vendors, customers, contracts and tax information for each project and subdivision

    3. Sales and Marketing – Tracking the marketing aspect of the business along with prospects, leads and sales.

  2. For the business processes, estimate the costs of failure

    1. What are the costs of not performing the process?

      1. Financial system (BuildMaster)

        1. The ability to track the cost of supplies, tracking rent or mortgage papyments, paying customers or your own employees

        2. Immediate impact on business.

      2. Business Intelligence (Project Managers)

        1. Current projects come to a halt. Managers are unable to make intelligent decisions without facts from their spreadsheets.

        2. Moderate impact on business.

      3. Sales and Marketing

        1. When this system fails, you do not lose your current business at the moment. Instead, you lose future business. This system can not fail for more than a few days.

        2. Future impact on business.

    2. What are the costs of performing the process late?

      1. Financial system

        1. Angry customers

        2. Disgruntled renters

        3. Lenders might seek payment using a debt collector

        4. Employees might not trust the company to pay them on time

      2. Business Intelligence

        1. Projects and the intelligent decisions are scrutinized since time is money.

      3. Sales and Marketing

        1. When projects complete and it is time to market it, the cost can be huge since money was put in to start and complete the project.

        2. Marketing was late has a direct impact on the sales of a particular project.

 

  1.  
    1. What is the longest time the process could be left without being performed?

      1. Financial system (less than a week)
        1. Payment to employees is biweekly
          1. Losing trust is when you can not pay your employees

        2. Payment to debtors is monthly

          1. Losing the confidence of your lenders, loses your future lending

        3. Collecting payment from customers is monthly

      2. Business Intelligence (less than a week)
        1. Projects tend to take months to complete, but during this time, data is collected, analyzed and decisions are made.

      3. Sales and Marketing (2 weeks)
        1. Impact is normally after a project completes or the result of the financial system being down. Therefore, it is most likely one of the previous two are down before Marketing and Sales are affected.

  2. Determine attributes for these business processes

    1. Financial System – Tracking debts and credits
      1.  
        1. Accounts payable – Lenders, suppliers, advertising and contractors

          1. Once a month

        2. Accounts receivables – Renters’ and mortgages
          1. Once a month

        3. Payroll – payment to employees

          1. Biweekly
      2. Manpower requirements

        1. (1) one Accounts payable

          1. Four year degree in Accounting or Business Administrative
          2. 3-5 years experience in Acounts payable or receivable

          3. An Accounts payable or receivable personnel normally performs this duty

          4. Possibly eliminate one person and have one person perform both duties

        2. (1) one Account receivable

          1. Four year degree in Accounting or Business Administrative
          2. 3-5 years experience in Acounts payable or receivable

          3. An Accounts payable or receivable personnel normally performs this duty

          4. Possibly eliminate one person and have one person perform both duties

        3. (1) Administrative assistant

          1. Two year business degree

          2. Duties may include fielding telephone calls, receiving and directing visitors, word processing, filing, and faxing.
          3. Extensive software skills are required, as well as Internet research abilities and strong communication skills
          4. Normally, an administrative assistant or a secretary performs these duties

          5. Perform Account Payable or Receivable duties to improve skills
      3. Establish IT facilities required

        1. Physical Network

          1. All offices will be connected to the data center

          2. All computers will be connected to the network and will need to authenticate when logging on.

        2. Data Center

          1. Software

            1. Windows Server

              1. Develop, deliver, and manage rich user experiences and applications, provide a highly secure network infrastructure, and increase technological efficiency and value within your organization
          2. Hardware

            1. File System Server

              1. Important documents and worksheets are stored here

            2. Email Server

              1. Work related emails are retrieved and filtered here

              2. VOIP and internet service

            3. SQL Server

              1. Relational accounting data is stored here.

            4. Print Server

              1. Ability to print anywhere in the company

        3. Software

          1. ERP software – SAP for small and mid size businesses

          2. MS Office

            1. Performing daily worksheets

            2. Giving presentations

          3. SQL Database
            1. Data storage mechanism

          4. Project Management

            1. Tracks project timeline

          5. Visio

            1. Allow graphical descriptions of process flow

      4. Establish non-IT facilities required

        1. Front desk area for Administrative Assistant

          1. One telephone and fax machine

          2. One Computer and Monitor

          3. One desk and chair

          4. Two chairs for customers waiting

          5. One filing cabinet

        2. Meeting room

          1. One table for eight people including 8 chairs

          2. One conference telephone

          3. One dry erase board

          4. One projector

        3. Three Offices

          1. Desk

          2. Chair

          3. Laptop Docking station

          4. Monitor

          5. Laptop

          6. Telephone

          7. Fax machine

          8. Filing cabinet

          9. Dry erase board

      5. Establish clerical requirements

        1. Accounts Payable

          1. Need to write checks

          2. Receipts

        2. Accounts Receivable

          1. Provide statements

        3. Administrative Assistant

          1. Schedule appointments

          2. Handle phone calls

    2. Project Management – Handling construction and coming up with new innovating ways to the construction
      1.  
        1. Engineering – New and existing projects
          1. Small Projects, monthly

          2. Mid projects, quarterly

          3. Big projects semi-yearly to yearly

        2. Methodology – Establishing new concepts to construction and process mapping
          1. Small Projects, monthly

          2. Mid projects, quarterly

          3. Big projects semi-yearly to yearly

      2. Manpower requirements

        1. (1) Engineer

          1. Four year degree in mechanical engineering

          2. 3-5 years experience in building construction

          3. 3-5 years experience in project management

          4. An engineer normally performs this duty

          5. Process Engineer

        2. (1) Process Engineer

          1. Four year degree in mechanical engineering

          2. 3-5 years experience in building construction

          3. 3-5 years experience in project management

          4. An engineer normally performs this duty

          5. Mechanical Engineer

        3. (1) Draftsman

          1. Two year degree in CAD Drafting

          2. 1-2 years using Drafting software like AutoCAD or Solid Edge

          3. A Draftsman normally performs this duty
          4. An engineer could, but wouldn’t be cost effective

        4. (2) Engineering Technician
          1. Two year degree in engineering technology or 3-5 years experience as an engineering technician

          2. Technician usually performs this duty

          3. College intern or engineering student can perfrom this duty

        5. (1) Administrative assistant
          1. Two year business degree

          2. Duties may include fielding telephone calls, receiving and directing visitors, word processing, filing, and faxing.
          3. Extensive software skills are required, as well as Internet research abilities and strong communication skills
          4. Normally, an administrative assistant or a secretary performs these duties

          5. Perform Account Payable or Receivable duties to improve skills
      3. Establish IT facilities required

        1. Physical Network

          1. All offices will be connected to the data center

          2. All computers will be connected to the network and will need to authenticate when logging on.

        2. Data Center

          1. Software

            1. Windows Server

              1. Develop, deliver, and manage rich user experiences and applications, provide a highly secure network infrastructure, and increase technological efficiency and value within your organization
          2. Hardware

            1. File System Server

              1. Important documents and worksheets are stored here

            2. Email Server

              1. Work related emails are retrieved and filtered here

              2. VOIP and internet service

            3. SQL Server

              1. Relational accounting data is stored here.

            4. Print Server

              1. Ability to print anywhere in the company

        3. Software

          1. CAD software

            1. Solid Edge

          2. MS Office

            1. Performing daily worksheets

            2. Giving presentations

          3. SQL Database

            1. Data storage mechanism

          4. Project Management

            1. Tracks project timeline

          5. Visio

            1. Allow graphical descriptions of process flow

      4. Establish non-IT facilities required

        1. Front desk area for Administrative Assistant

          1. One telephone and fax machine

          2. One Computer and Monitor

          3. One desk and chair

          4. Two chairs for customers waiting

          5. One filing cabinet

        2. Meeting room

          1. One table for eight people including eight chairs
          2. One conference telephone

          3. One dry erase board

          4. One projector

        3. Five Offices
          1. Desk

          2. Chair

          3. Laptop Docking station

          4. Monitor

          5. Laptop

          6. Telephone

          7. Fax machine

          8. Filing cabinet

          9. Dry erase board

      5. Establish clerical requirements

        1. Engineering

          1. Engineering tools

          2. Calculators

          3. Drawing paper

        2. Process Engineering

          1. Engineering tools

          2. Calculators

          3. Drawing paper

        3. Administrative Assistant

          1. Schedule appointments

          2. Handle phone calls

    3. Sales and Marketing – Selling the business to your customers
      1.  
        1. Marketing – Providing information on this new way of life

          1. Small Projects, monthly

          2. Mid projects, quarterly

          3. Big projects semi-yearly to yearly

        2. Sales – Persuading people to buy into this new way of life

          1. Small Projects, monthly

          2. Mid projects, quarterly

          3. Big projects semi-yearly to yearly

      2. Manpower requirements

        1. (1) Market Research Director

          1. Four year degree in Marketing

          2. 3-5 years experience in Marketing or Business

          3. 3-5 years experience in project management

          4. Market Research Director normally performs this duty

          5. Market Analyst could step into this role

        2. (1) Market Analyst

          1. Four year degree in Marketing

          2. 3-5 years experience in Marketing or Business

          3. Market Analyst normally performs this duty

          4. Any four year Business degree with at least 3-5 years experience

        3. (1) Sales person
          1. Four year degree in Marketing or Business

          2. 3-5 years experience in Marketing or Business

          3. Sales person normally performs this duty

          4. Any four year Business degree with at least 3-5 years experience

        4. (1) Administrative assistant

          1. Two year business degree

          2. Duties may include fielding telephone calls, receiving and directing visitors, word processing, filing, and faxing.
          3. Extensive software skills are required, as well as Internet research abilities and strong communication skills
          4. Normally, an administrative assistant or a secretary performs these duties

          5. Perform Account Payable or Receivable duties to improve skills
      3. Establish IT facilities required

        1. Physical Network

          1. All offices will be connected to the data center

          2. All computers will be connected to the network and will need to authenticate when logging on.

        2. Data Center

          1. Software

            1. Windows Server

              1. Develop, deliver, and manage rich user experiences and applications, provide a highly secure network infrastructure, and increase technological efficiency and value within your organization
          2. Hardware

            1. File System Server

              1. Important documents and worksheets are stored here

            2. Email Server

              1. Work related emails are retrieved and filtered here

              2. VOIP and internet service

            3. SQL Server

              1. Relational accounting data is stored here.

            4. Print Server

              1. Ability to print anywhere in the company

        3. Software

          1. Graphical Design software
            1. Adobe

          2. MS Office

            1. Performing daily worksheets

            2. Giving presentations

          3. SQL Database

            1. Data storage mechanism

          4. Project Management

            1. Tracks project timeline

          5. Visio

            1. Allow graphical descriptions of process flow

      4. Establish non-IT facilities required

        1. Front desk area for Administrative Assistant

          1. One telephone and fax machine

          2. One Computer and Monitor

          3. One desk and chair

          4. Two chairs for customers waiting

          5. One filing cabinet

        2. Meeting room

          1. One table for eight people including eight chairs

          2. One conference telephone

          3. One dry erase board

          4. One projector

        3. Three Offices
          1. Desk

          2. Chair

          3. Laptop Docking station

          4. Monitor

          5. Laptop

          6. Telephone

          7. Fax machine

          8. Filing cabinet

          9. Dry erase board

      5. Establish clerical requirements

        1. Marketing

          1. Artist boards to present to customers or media

          2. Pens and markers

        2. Sales

          1. Traveling notebooks

        3. Administrative Assistant

          1. Schedule appointments

          2. Handle phone calls

 

  1. For the business processes, establish the minimum resources required to operate. Prioritize essential business processes.
    1. In order for the business to operate using the minimum resources, the financial system has to be in place and it is the most important process. The ability to accept payment and pay your debts is extremely important for the business to survive.
    2. Next, is your Marketing and Sales force for existing buildings. This is essential because it fills vacant units in existing buildings. This brings more money to allow stability in the financial system.
    3. Last, is the Project Management and how future projects are developed. In order to expand the business, money has to be consistently flowing. A good marketing and sales enables the financial situation to be stable. Projects then can be considered for expansion.

  2. Summarize the requirements for the business processes

    1. The financial system requires three employees; Accounts payable professional, Accounts receivable professional and an Administrative Assistant. Accounts payable deals with expenses where Accounts receivable deals with income.

    2. The project management system requires four employees; an Engineer, a Process Engineer, a Draftsman, an Engineering Technician and Administrative Assistant. An Engineer oversees projects and works with construction to make sure projects are on time and work with the specs that are laid out. A Process Engineer oversees how construction projects need more innovation. Improvements are made and works with the Engineer to implement ideas. When ideas are written out, a Draftsman is called upon to sketch out drawings so the construction crew has guidelines to work with. Engineering Technicians are used to assist in the planning and executing of projects for both the Process Engineer and the Engineer.
    3. Sales and Marketing require a Market Research Director, Marketing Analyst and a Sales person. The Market Research Director and the Marketing Analyst work together trying to understand what the customer needs and wants. When this is fully understood, they can work with the Process Engineer to implement these ideas to provide the best construction plans for future customers. A Salesperson is needed to reach out to people that may be undecided about living in their building. This person is needed to persuade and fill empty units in their buildings.

    4. Minimal acceptable backup plan in case data is unavailable should be to go to backup site, whether it is on location or not, and retrieve the information you are looking for. Data will be old, at least one day old at the very least, but data should be made available. In case of a catastrophe, low level and least amount of experience or knowledge should be laid off until further notice. Higher level expertise is needed to keep the company running while no to minimal income is coming in.
    5. Minimal acceptable recovery configuration for IT is to have the backup servers available for personnel to manually extract data that is a day to a few days old. While servers are getting back online, no one should try to access the data and should focus on retrieving some of the older data until servers are operational. If low level staff was laid off, business should take the time to evaluate their cash flow versus their debt. This might be a good time to “trim the fat” and it is a good time to see if the disaster caused any long term problems for their business.
    6. There are alternatives to the requirements because it depends on how much money the business wants to spend. If money is no object, then the business employs more people and does not lay them off when there is a disaster. If money is tight, then a marketing force or a process engineer is not needed. Some businesses might see a disaster plan as a waste of money since statistically, it may never happen to them.

    7. Time Scales

      1. Financial System

        1. The most important as far as a needing disaster plan and converting to the business requirements. It will take about two weeks to train the personnel and approximately two to four weeks for them to get up to speed with the pace of the business.
      2. Project Management
        1. Hiring the correct personnel with the training should allow the transistion to occur smoothly. Introduction of Solid Edge will not be a surprise to the Engineers or the Draftsman. Using Microsoft’s Visio and Project Manager might take some time to get used to, but no longer than a week is needed for them to understand these tools.

      3. Sales and Marketing

        1. Disaster least affected. Personnel should already be using graphical desgn software. Refresher course to help personnel. One day course should be sufficient.

  3. Consider alternative backup/recovery solutions (cost/benefit analysis)

    1. IT

      1. Hot site – fully functional site ready for use, but there is usually a charge per month that is expensive.
      2. Cold site – A facility wired and configured to operator, but without the computer equipment installed. There is a monthly fee, but it is lower than a hot site.

      3. The cold site, in my opinion, is the best solution because most of the data is not critical for the business to operate. I suggest the cold site be equipped with docking stations, monitors and keyboard/mice. This way personnel only has to undock their laptop and dock it at the cold site.

    2. Workarea (office space)

      1. 10 gbps

      2. Increment by 1 gbps minimum
      3. Fiber

      4. 24-7

  4. Backup and Business Recovery Strategy

    1. There are four servers that this company uses and three of which are important to this plan. The file system, email and the sql servers need to be backed up once a day and there should be a two week historical archive in case a server has been acting up lately. Every two weeks, all of the servers should be backed up to an offsite location. This offsite location should be not be in the same region in case of natural and unnatural disasters. This site should be driving distance so employees can quickly get to the site to recover data that is vital to the business. This offsite location can act as the cold site. However, this cold site should be equipped with docking stations, monitors and keyboard/mice for all high ranking personnel. This cold site, which also acts as the offsite backup location should retain all information for at least one year. Each year, all of the servers should be backed up to a tape storage and placed in a dry cool place in the cold site. All data for the business should be considered important. Therefore, all data should be backed up and stored off site.
    2. Recovery should be simple. As a natural or unnatural disaster occurs, the cold site acts as the live data. Recent backed up data is recovered into the cold site’s three servers. All of the high ranking personnel will be able to access this data like nothing has happened. All of the phone lines are rerouted to this site so customers and lenders can continue to converse with personnel. Orders, projects and marketing data for the last two weeks is unavailable since the data is still at the damaged site.

 

 

 

 

 

 

 

References

Bizmanualz, Inc. (2008). Sales & Marketing Pipeline Retrieved Sunday, 22 February 2009, from http://www.bizmanualz.com/articles/diagrams/snm_pipeline.html

IAAP, Office Team (2008). Administrative Support Job Descriptions Retrieved Sunday, 22 February 2009, from http://www.iaap-hq.org/researchtrends/JobDeSCRIPTions.htm

Microsoft (2008). Meet the Server Unleashed Retrieved Sunday, 22 February 2009, from http://www.microsoft.com/windowsserver2008/en/us/default.aspx

SAP (2008). SAP Solutions for Small Businesses and Midsize Companies

Retrieved Sunday, 22 February 2009, from http://www.sap.com/usa/solutions/sme/index.epx

Google (2008). Google Reference Search Retrieved Sunday, 22 February 2009, from http://scholar.google.com/books?q=accounting+reference&btnG=Search+Books

Microsoft (2008). Determine project management requirements Retrieved Sunday, 22 February 2009, from http://technet.microsoft.com/en-us/library/cc197644.aspx

degreedirectory.org (2008). CAD Drafting Technologies Retrieved Sunday, 22 February 2009, from http://degreedirectory.org/directory/category/General_Engineering_Technologies/Architectural_Drafting_Technologies/CAD_Drafting_Technologies.html

Dawn Rosenberg McKay (2008). Engineering Technician: Career Information

Retrieved Sunday, 22 February 2009, from http://careerplanning.about.com/od/occupations/p/engineer_tech.htm

Siemens Product Lifecycle Management Software Inc (2008). SOLID EDGE

Retrieved Sunday, 22 February 2009, from http://www.plm.automation.siemens.com/en_us/products/velocity/solidedge/index.shtml

Small Business Notes (2008). The Difference Between Sales and Marketing Retrieved Sunday, 22 February 2009, from http://www.smallbusinessnotes.com/operating/marketing/salesmktdiff.html

SearchCIO.com Definitions (2008). hot site and cold site Retrieved Sunday, 22 February 2009, from http://searchcio.techtarget.com/sDefinition/0,,sid182_gci557324,00.html

 

 

 

 

 

 

 

 

 

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