CINergy Corporation

Feasibility Report to make the operations online

Submitted To
Mr. Umar Safdar Kayani

Submitted By
Shahbaz Siddique (CIIT/SP09-MBE-057/LHR) Junaid Manzoor (CIIT/SP09-MBE-038/LHR)

Department
Management Sciences

CINergy Corporation

Executive Summery

CINergy Corporation is an international corporation that deals with the providing of the services solution to the other firms and partners. This particular company provide the services to those firms those are not performs their functions well and have limited budgets to performs these functions. The company has provides the admin support services to the staff, training and development and also outsource the services on behalf of the other partners or firms. Company also involve in the business of import and export, importing stationary items from China and exports these or sell this stock to different companies or wholesalers. The objectives of this feasibility report to analyze the online business opportunities and marketing opportunities for the company. In this report it is analyzes that the company has a much potential to improve their business online. There are numbers of online business opportunities for the company if it makes their operations online. It is also suggest to the company according to the cost involve in the developing the online business. Solutions are also provided to the companies toward these kinds of cost and technical issues. There are also some kinds of risks involved in this type of the business like investment risk, political instability, energy crises etc. The last part of the report includes the making of recommendation towards operation the online. These recommendations include the strategy to make the business online, how much it time take and how much cost it involve, what are the basic equipment, software are appropriates for this plan, what kinds and how many personnel are need to make this plan into reality.

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Acknowledgment
First of all we thanks to Almighty Allah Who is most Beneficent and merciful. We are also thankful for His countless Blessing on us that we are Muslims, we are free nation. We are so much grateful for our Beloved Prophet Hazrat Muhammad (SAW) who tells us the right path that leads to us to path of Allah. After that we are so much grateful for our parents those are supporting us and able us to become educated and able to understand what is wrong and what is right. We are also grateful to COMSATS who provide us a network and channel by which we can learn and adopt more knowledge and skill to develop our future. Most important we are grateful to our lovely and kind teacher Mr. Umar Safdar Kayani who share his experience with us and guides us to learn critical aspects of the Electronic Business those are not found in any books of the world. This report is combined effort of me and my other colleague. We refer this report to our Electronic Business teacher Mr. Umar Safdar Kayani. We are both thankful for all our other friends and those who help us in this project.

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Reference Person
For our report purpose we met the companys CEO Mr. Ifitikhar Ahmad Ch. Cinergy corporation for the information about company. Mr. Ifitikhar makes full contribution to help us in this regard and assure us to for his full cooperation with us. We have seen the companys operation by the direct meeting with all the employees working at Lahore. Under is the scanned Visiting Card of the CEO

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Table of Contents

P.No

Executive Summery 2 Acknowledgment. 3 Reference person..4 Chapter 1 1.1 1.2 1.3 1.4 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2 Introduction..6 Product and services 6 Company Type.7 Limitations... 7 Objectives of the report8 Technology...8 Online market Environment and Competition.8 Management and Personnel. 9 Industry 9 Business Model..10 Marketing and Sales Strategies..10 Operational Requirement/Plan for System11 Financial Feasibility...12 Financial Benefits...13 Non-Financial Benefits....13 Solutions.14 Risk Factors... 15 Recommendations...15 References......16

Chapter 2

Chapter 3

Chapter 4

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1.1 Introduction
1.1.1 Company Profile
Believes in 1 + 1= Infinity

1.1.2 Vision Statement

Strategic objectives of our firm is to perform best management practices and strive to achieve much higher business plan targets with cost solution for all our business partners. We envision developing trust, co-ordination, co-operation and smooth business relationships. We work for rapid expansion of our business partners by getting slight share in the operational cost, which tends to our firm into profitability.

1.1.2 Mission Statement

To develop extremely, skilled motivated and professionally trained workforce to meet all the objectives of our business partners. To take the best possible care of all of our internal and external customers through the unique abilities and highest quality services. To respect all the polices and procedures of our business partners and impart effective efforts in its all implementation and communication.

1.2 Products and Services

Its is the core principle of the all sky high companies that they only focus on their core business as well as to training and development of the motivated workforce over the research, finance marketing, and sales of their products and services. The outsourcing of their management services to a professional firm like CINergy always remain in the interest of the organization in the following way: 6|Page Comsats Institute of Information and Technology Lahore

CINergy Corporation
a) To involve admin/support staff directly into the business and external shaping of the organization. b) To get professional services at low monthly costs through long term services contract. c) To reduce the number of heads counts in the organization involved non-business works. d) To eliminate the cost of additional salary perquisites for the non-business staff like provident fund, Gratuity, EOBI, Social Security and education Cess etc. e) To eliminate the cost of managing the personal issues of non-business staff. f) To reduce the procurement cost through professional buying tactics.

1.3 Type of the Company

The company has structure that is click and mortar. The basic functions of the company are done through the computerized systems. The company has an internet but as for communication tool, and for only contacts with its partners. The most of communication is done through the exchanging of emails. All other work of the company is done through the manual way like the record of the employees, salaries, attendance, record keeping, and other kind of activities.

Products
The products of the company are not in digitizing formats. Company provides the products and services those are in physical form and through the physical means.

Process
The process some extent to be digitized formats but the others are in manual form.

Delivery
The delivery agents of the company are also working in the manual formats. All the deliveries are made by the physical means.

Network Type
The company has a network type called Intranet because the company has using network within the organization limited to the building of the organization. The work is shared through the systems, activity to activity base.

1.4 Limitations of the Operations

Followings are the limitations of the operations of the company, The company has dealing database that is in manually form which involve high cost.

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The company has no network structure outside the organization with its partners. The orders of the company are taken through the email which is so unsecured. The company has no its official site which deals with its partners and customers and have no corporate portal. There are no proper marketing tools used for advertisement of the company. The company has no other affiliated department to deal with fulfillment of verity of services.

2.1 Objectives of the report

The main objectives of this study represent the mission and vision of the organization that leads us to the followings objectives include Making a system that deals with the online marketing of the Cinergy corporations offering to wider prospective Making the Company available online through its website Making a system in which all other partners of the organization are every time connect and has a relation in terms of inventory management and accounts handlings Make all the recording systems of the company computerized. On the basis of our objectives there is need to detailed discussion on the objectives according to its marketing viability, Technical viability, business model viability, Time and Financial viability, and Management viability. These are discussed below:

2.2 Technology
For our previous viability and for making the organizations operations online it is required to assure that there is strong technical workforce and assistance is available to develop this system. The existing technology in the organization is not more than to use the computers simply for routine working. For fulfillment of objectives there is need of technical staff as well those are able to build and control the activities of the online transactions or support services. At initial stages it is only need the one or two site developer after successful completing the first stage its need to be more enhance the site to order taking, order fulfillment and online support services.

2.3 Online Market Environment and Competition

According to our objective the main focus of our study is to examine the products viability and services viability with the online operations. As the nature of the 8|Page Comsats Institute of Information and Technology Lahore

CINergy Corporation
organization it is main concern of the business activities to online the services of the company through by which other partners or companies can easily access the all type of services available. Through they are also able to get information about these services, terms and conditions and their availability in different locations. This feasibility study also has to examine, whether it is right to use internet as marketing campaign for our services. Our feasibility study analyzes that there is so much need of these kind of services those our selected company is basically providing. This segment has so much potential because there are so many organizations that needs of services those are out reach of the other business and involve so much cost. Because our selected organization has capability to arrange these kinds of services at lower cost and have strong relations with its partners, so it is need to provide a network through which the company is able to make contracts with other business organization those want a solution of their business problems and have to deliver these promises. Another silent feature of making the organization online is to introduce the organization as the importer and exporter of the routine stationary items. As discussion with the CEO of the organization we have found that the organization has a potential to make agreement and has ability to fulfill these agreement regarding to the import and export of the stationary item to business-to-business, business-to-consumer. Company has only facing the problem having no marketing campaign and any advertisement of its ideas. In Pakistan the company has not any competitor. Only in Dhaka Bangladesh Company has two / three competitors. One is Grameen Phone/Bangla Link. In Uganda and Congo there is only one company who is doing this job in Telecom sector.

2.4 Management and personnel

The company has 124 employees and personnel in the different countries. These countries with include Pakistan, Bangladesh, Uganda, Congo. The division of the employees in companies is 60 in Lahore Pakistans, 86 in Dhaka Bangladesh, 46 Kampala Uganda, and 32 Braizevealle Congo. These employees are mangers, technicians, trainers and other kind of personnels.

2.5 Industry
As per the introduction of our company, the company deals with the all support and direct services related to the staff, technological and other kind of services. This field of the services has high growth rate because of the every organization has many problems relating their staff, technology, training and development, etc. Company has high potential to serve the all kind of these companies because the company has wide range of relation with other services related, education and training related institutes. 9|Page Comsats Institute of Information and Technology Lahore

CINergy Corporation
Its also found that the company has many future demands in accordance with its services types.

2.6 Business Model

The corporate is currently providing the services to WARID Telecom Pakistan. These services involve the processing of SIM Cards. This service includes creating or managing the SIM card, makes available the SIM for using of the consumers, generating access codes, like PIN codes or PUK codes, installing the application in the SIM through the some kind of software. Company is also involved in a business of import and export. Its purchase the stationary items form China and sell them in the local market or Local consumers. Its also directly provides these stationary item to the various companies in Lahore. Except of all these activities the company is touch with its core current missions and offer large verity of the services to the all other companies. These are the main source of funding of the companies. All the revenues are earned from these sources or activities.

2.7 Marketing and Sales strategies

The Main strategy to sell and advertisement of the corporate services is to make the system of communication and attracting the customers online through the company portal. Currently the company has partnerships with lots of other companies those are involve with services provided by the company. Example if a company involves providing the training to other companys staff, relationship currently activated between these two partners and if our company outsources these services, it can involve the three companies including the CINergy Corporation. The strategy involve to make a systems where the active companies are interlink with each other and automatically has to updated their databases after transaction and end of the contracts. There should be on place where the all these parities has contact with each other about their level of involvement. The company has strategy to sell directly to its customers through its sites or portal because the aim of the company is to provide the services and products at a low cost. The other aim of the organization is to provide all kinds of services specification/products charges and prices, terms and condition, guarantees and warranties. 10 | P a g e Comsats Institute of Information and Technology Lahore

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3.1 Operational requirements/Plan for system

By analyzing the cost and benefits of the system we have the following plan for development of the company portal for its membership society.

Membership process and communication with partners

Current Process E-enabled

Initial Contract Dispatch applicatio n pack Complete d applicatio n pack received

Initial Contract Applicatio n pack download Applicatio n made via internet Payment received online Member details check Member entered on to system Documen t sent through email

Cheque is banked Member entered on to system Documen t sent through post

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3.2 Financial Feasibility

3.2.1 Technology cost
To produce the ecommerce website it is need to a fast internet connection as available in Pakistan like 4MB, 6MB or 8 MB, cost of web server and software. Other cost involves the payment system like using banking services for receiving the payments.

3.2.2 Cost of the Programmers

This phase include the numbers of site developers. There are at least two or three programmers.

3.2.3 Costs for the consultancy support

It is involve the cost of the services like guidance and techniques from the specialists.

3.2.4 Cost of the training of the admin staff

This section involve the cost of the organizational admin staff because there is need to little bit training of the staff to better understanding the operations of the company.

3.2.5 Running cost

This will involve the cost of running the web server and its maintenance cost.

3.2.6 Running cost of change the process

This cost involve because the training of the employees adapting new business technology. As having internet and all the operations are online this will also involve the cost of become familiar to respond the emails, quires and complaints that required quick response while replying to customers/clients via email. If all these cost and training 12 | P a g e Comsats Institute of Information and Technology Lahore

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phases, achieved this will make the system efficiently working and most beneficial to the company.

3.3 Financial Benefits

3.3.1 Improve the cash flows
The new introduced online payment system decrease the lead time to receive the payment within same day of the transactions or take minimum time. As the old system takes aver 14 to 15 days. The above figure is showing that over all method of managing the members or customers of the operations. As you can see in the figure that is online payment is also an element of this whole efficient management system. As the application process is completed the documents are sent to the partners via emails, that reduce the time and cost, printing and posting cost of the members or partners. When the members or clients are not have an email address these are allowed to download the document form the company site.

3.3.2 Increase in revenues

It is also the source of the revenue if the members will visit the portal of the organization. The goggle adsence are providing the facility earn the profit through commercial and advertisement of the other companies at the sites.

3.4 Non-financial Benefits

3.4.1 Communication
From the non-financial benefits, the main benefit of the making system online is a enhancement of communication network. This involves low cost as compared to the high cost in traditional system. The companies can communicate with others partners without any problem in 24/7.

3.4.2 Transparency
The information management website is a great source of getting information by the new members or other general public and makes the membership process efficient and transparent. Like other members have knowledge about number of members with the organization, memberships date or level. 13 | P a g e Comsats Institute of Information and Technology Lahore

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3.4.3 Globalization
As the company has the internet and has portal, this will make the company international and company can targets the customers from all over the world.

3.4.4 Profiles of the Respondent

The membership system enables the company to get the personal information of the members like name, full address, and credit card information. This is more beneficial to target the customer and link with them through email.

3.5 Solutions
The new strategy that described above required a efficient database for its site. For example storing of data, modification, and retrieval of information from its member need rational data base management system. The available commonly used databases are Ms Access, MySQL, and MS SQL Server. Company can manage the payment from the members. There are many option of making the payment online but from them these are the most common systems: Payments by the credit cards that is manual putting of the credit card number on the site. PayPal services, third party deals with the online accounts of the organizations and individual mange the overall payment and receipts of the revenues and payments. Using the online banking system, the payment are received through the banking services

3.5.1 Technical Solution

MySQL is preferred on the other databases because of the following reasons; MySQL is licence free for registered charities. MySQL can handle 50,000,000 + records. MySQL is an ideal database type to create a prototype of an e-commerce web site. The MySQL database can be easily upgraded to MS SQL at a later date. MySQL with the use of ASP (Active Server Pages) can best satisfy the functional requirements.

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3.6 Risk Factors

There should be include the risk factors, investment insecurity but it is not a big issue because every business has some risks towards its investment but this type of risk is minimum as compared to the other kinds of risks like purchasing of materials, risks in the projects type of the business, purchasing of securities etc. Other kind of risk involves the political instability in the country, although these risks get much attention towards the safe business activities. All other firms dealing Pakistan are not willing to more servers in Pakistan because their much political influences in the activities of the business, there are heavy interest rates, taxes and other kind of duties in import and export. So it is suggest keeping in mind this kind of risk.

4.1 Recommendations
Here the recommendations regarding with the whole project plan. The recommendations are followings; Company has business in different countries so it is great need to develop a network and communications system between these companies. Company should develop a site or corporate portal through the information regarding the company and any product or services are detailed described. There should be a complete exchanging of information between the partners through this portal. The company should be recommended to adapt MySQL database management system through the each member can access the information and updated the information according to their authority. Company should use the any payment system that is described above but I recommend the two system those are using credit card and through the banking systems. Company should also recommend training of its employees for adapting the new business environment and deals to meet the requests and quires of the customers and partners. The all over recommendations involve the some cost, if the company has not funds available for this plan company can borrow it form any bank those provide the loans short-term. Because it is not a long-term project, the system can be developed through 7-8 months and will be soon generating the cash after its completing. It is also recommended to the company to purchase a web server and other related equipment, Software and hire some of the site developer and site manager to manage the all activities through the portal.

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All the recommendations are made in view to the overall benefits by the converting the traditional business to online. By this plan it is expected that company can earn the double profits and gain the famous and stakeholders confidence.

4.2 References
Information received by the direct meeting with the CEO http://EzineArticles.com/?expert=Idrees_Ahmed visited on 25 December 2010 at 9:50 pm.

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