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Universal Association

Business Communications and Collaborations Efficiency

Group Seven

Brian He | Shaharyar Shamshair | Randy Ranglall | Cheryl Litwinczuk

May 2016

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Table of Contents: 1. Executive Summary 2. Introduction 3. Project Team 4. Project Requirements 5. Project Plan

5.1 Project Management Approach 5.2 Project Agenda

6. Cost -Benefit Analysis 6.1 Financial Analysis 6.2 Costs 6.3 Benefits 6.4 Return on Investments and Payback

7. Process Methodology 8. Results

8.1 Qualitative Results 8.2 Quantitative Results 8.3 Client Feedback

9. Summary / Conclusion 10. Appendices

1. Executive Summary Universal Association offers strategic considerations for small to midsize businesses. The company strives to carry out an examination of the needs specific to small to midsized businesses in the realm of communication and collaboration tools. With this knowledge, Universal Association provides in-depth analyses to client businesses or organizations. The company methodology offers a completely objective approach in presenting the most optimal recommendation of platforms and software to the clients. By utilizing the services of Universal Association, clients will avoid the possibility of establishing their business’s standards of

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communications on a suboptimal platform. In essence, client businesses will experience an increase in efficiency and, in turn, an increase in competitive advantage with the assistance of the company. By targeting the importance of competent communications and collaborations in businesses, Universal Association positions itself for rapid growth and gains a strong opportunity to achieve high returns on investment. Many vital aspects in successful business operations revolve around interpersonal communication and team collaboration in all of their varieties and forms. The adoption of software and technology to perform the majority of business communication and collaboration has reached what the International Journal of Business Communication describes as critical mass; a state where the use of technology has become the standard and accepted method in mainstream society. Companies weak in this regard potentially suffer from a number of disadvantages including, but not limited to; lower workplace efficiency, decreased employee morale, lack of innovation etc. A survey conducted regarding IT project failures showed that 28% of more than 1,000 respondents said poor communication was the number one cause of project failure. In a separate survey of more than 1,400 corporate executives and employees over 86% of respondents reported that the lack of collaboration or ineffective communication is accountable for workplace failures. Universal Association services streamline the entire process of determining the type of platform most suited for a client business. The company allows client businesses to mitigate any potential losses that may occur through the lack of a suboptimal communications and collaborations platform. Universal Association will give companies that use their services wider business appeals, increased productivity, more motivated teams, strengthened partnerships and build customer relationships. Universal Association has ambitious and attainable keys to success. The first is the development of a rising awareness of the importance of an optimal communications and collaborations platform in businesses around New Jersey. As our initial clients experience the increase in efficiency and optimization, competitors will need to also improve their communications and collaborations platforms to keep up. With this, the company will cement itself in the market.

2. Introduction The most vital aspect of business in today’s world is communication in all of its varieties. The adoption of software and technology to perform the majority of business communication and collaboration has reached a state where the use of technology has become the standard and accepted method in mainstream society. The phenomenon called ‘the digital divide’ goes beyond socioeconomic groups, and affects large businesses and small businesses in similar ways. (Marco, 2015) Due to the growth of this particular software market, which will grow to 6.2

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Billion by 2019, (IDC, 2015) the decision making process can potentially include evaluating thousands of products. Smaller businesses often lack the resources –both time and monetarily—to effectively determine which technology and implementations will best utilize their resources and their employee skills and gain the highest return.

Universal Association strives to carry out an examination of the needs specific to small to midsized businesses in the realm of communication and collaboration tools. With this knowledge, Universal Association will provide in-depth analyses to client businesses or organizations that will aid in their day-to-day operations and improve efficiency.

3. Project Team The team consists of undergraduate Information Technology and Informatics students at Rutgers, The State University of New Jersey. The team members are: Cheryl Litwinczuk Project Manager Cheryl was responsible for delegating work to the individual(s) that she deemed most fit to complete the job. With other group members’ input she created agendas that encompassed the status of the project and questions each member had for the professor. Cheryl was also responsible for notifying group members on upcoming due dates and making sure the team stayed on top of completing their assigned responsibilities Brian He Marketing/Business Analyst Brian was involved in researching the markets for small to midsized businesses in New Jersey and retrieving information in regards to the efficiency of their communications and collaborations platforms. He was also responsible for finding statistics and research supporting the importance of an optimal platform for communications and collaborations in businesses.

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Shaharyar Shamshair Research Analyst Shaharyar performed extensive research on small businesses and their communication and collaboration platforms. He was also involved in researching the plethora of different platforms available in the market. Randy Ranglall Financial Analyst Randy was in charge of the project budget, researching the market share, competition analysis, and predicting business forecasts. He designed the team’s cost benefit analysis, as well as performed extensive financial research.

4. Project Requirements Summary

- Universal Association will provide training workshops and support material to non-tech businesses, including nonprofit organizations regarding the use of collaboration platforms. The project will produce a valuable analysis of small business communication and training needs, and offer solutions to overcome the perceptions of any form of technology as intimidating, confusing, and difficult. Our team will research the traditional methods and costs of one on one communication, group communication, and progress reporting, then compare and contrast each company’s needs to better suit which communication platform is efficient for them.

Scope

- The scope of the project is to submit a slide deck containing the information retrieved by the team. This consulting project was tasked by Professor Hughes to retrieve and analyze the following requirements:

● Research and determine the benefits to optimizing communications and

collaborations in small to mid-sized restaurants ● Compare and contrast the different features and functionalities of the numerous

platforms available for use ● Provide insight on the advantages and disadvantages of each platform ● Differentiate between the different platforms and types of businesses ● Give recommendations to client businesses based on the type of platform most fit

and efficient for them ● Distinguish, research, and provide implementation plan for clients

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5. Project Plan 5.1 Project Management Approach The team’s project has undergone several major changes throughout the course of the semester. The scope and project requirements of the team has changed drastically, and these changes can be actively observed by viewing and comparing the original and newly updated proposals in each respective stage. Our team participated in weekly video conferences on Skype every Saturday afternoon at 2:00 P.M. Each meeting would have an agenda assigned to it, which was handed out to the client and team members in advance. These agendas would ensure efficiency and time management, and after the meeting, minutes were also recorded.The Gantt Chart listed this the team’s tasks as well as subtasks with due dates, team designations, as well as actual hours worked. This agenda was distributed to each team member, as well as update frequently to more accurately reflect our team’s actual progress. 5.2 Project Agenda View

● Final Draft Agenda

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Final Gantt Chart

6. Cost Benefit Analysis 6.1 Financial Analysis

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A financial analysis was conducted based on a three year time scale, beginning at the initial year of operation (Year 0). Based on the cost benefit models, the risk adjusted return on investment is calculated to be 51% with a payback period of 19 months. Revenues quickly turn positive after the initial launching phase with the total net present value amounting to nearly $200,000 when risk adjusted. Non risk adjusted, the return on investment rises to 208% with a payback period of just 10 months and the net present value soars to just over $700,000.

6.2 Costs

● Labor A major source of costs were employees. This is encapsulated under a “labor costs”

category, of which includes their training and salary impact. Training costs have been assessed to be minimal due to expected prior expertise. In addition to the four founding members of Universal Association, four more people will be hired to aid in expansion. All of the eight employees will be paid $25 an hour with the reasoning being that salaries will be kept at reasonable lows as the company expects to be austere in its infancy.

● Training Training costs associated with clients were the second most costly item in the cost benefit analysis, but it is where revenue will eventually originate from. The number of clients expected annually is about 300. Training expenses cover producing and distributing physical materials such as brochures and reports along with consultant travel expenses. A total of $30,000 is set

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aside to cover these costs with the acknowledgement that this may be more than is necessary, in which case there will be cost savings to be had.

● Licensing In order to be up-to-date on state of the art software and all of its features, money was set aside to cover licensing and premium upgrades for internal testing and training purposes. This cost was determined to be about $3500 annually and is expected to fluctuate as external software pricing models change over time (i.e. subscription models, one time purchase models, incremental models) or software is obsoleted or discontinued. 6.3 Benefits

● Projected Revenue from Current Projects The main source of revenue for Universal Association will be from the consulting service. Clients will be charged $900 a day, which is attractive to clients for two reasons. First, it is an appreciable improvement over the typical cost of training just one employee which is $1200. Second, taking into account employee turnover businesses actually lose a lot of money when hiring new people who have to be trained all over again. Charging by the day enables flexibility and advantages that are not present had there been an hourly fee. Specifically: a daily fee is easier to calculate for, a client no longer has the ability to shortchange the company by requesting certain time periods or canceling early to save money, feedback shows that higher fees are psychologically more enticing as the client is willing to pay more for better service, and consultants have the option to stay all day with clients. With 300 clients a year and a $900 consulting fee, revenues from current ventures will be $270,000, with 2080 hours a year worked by each employee at an hourly rate of $37.53. Taking into account costs, net profit will be $154,479 each year.

● Projected Revenue from New Projects With the advent of virtual reality and augmented reality enabling true telepresence, there is significant opportunity for growth in the near future. It is difficult to accurately predict the size of these markets, but they will be highly competitive and considerable in size. Due to uncertainties, revenue from these new market segments has been conservatively estimated at $1,000,000 a year. However, due to the introduction of hardware costs for high system requirements and an evolution in the company, profits from this venture are estimated to be only $250,000 a year.

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Year 0 Year 1 Year 2 Year 3 Total

Current Projects

$0 $125,000 $250,000 $250,000 $625,000

New Projects $0 $154,479 $154,479 $154,479 $463,437

Total $0 $279,479 $404,479 $404,479 $1,088,437

6.4 Return on Investments and Payback

Going by a risk-adjusted model, the return on investment in three years would be 51%.

The payback period will be 19 months with a total of a net present value of about $197,232.

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7. Process Methodology The project was completed using an iterative methodology. With a total of four different stages, the team completed the sections of the project over the course of fifteen weeks. At the end of each stage, the team received feedback from Professor Hughes. Utilizing this feedback, the team provided better reports based on the recommendations. By following the iterative methodology approach, the team was able to make sure the deliverables were presented to the client in a scheduled manner as well as having all of the deadlines met. The team primarily used a combination of Google Docs, Slides, and Sheets for completing deliverables. The versatility and ability for real-time collaboration allowed the team to complete deliverables efficiently. Team communication was mainly done through Skype and GroupMe. Skype was used for sessions that required more intense and quick communication. GroupMe served as an excellent platform for quick and easy group messaging. Email was used to send agendas and minutes of video meetings to Professor Hughes. Every week the team met with the professor via Skype and reported the team’s progress on required assignments. In addition, the team had their own weekly Skype meetings among the members to discuss each member’s responsibilities for the upcoming due date.

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The team’s project manager set weekly tasks for completion and organized it using a Gantt Chart. At the end of every week, the team discussed the progress and reviewed each other’s work in order to produce higher quality work.

8. Results The “Universal Associations: Business Communications and Collaborations Efficiency” project was concluded on April 29, 2016. The submission includes a final report for the class, a slide deck for the class and client, a project plan in Gantt Chart form, and presentations for the class and client. 8.1 Qualitative Results The project focuses on the communications and collaborations upgrades of small to mid-sized businesses in New Jersey. Platform recommendations that will help the communication and collaboration of a business will be presented by conducting in-depth analyses of the business and the platforms available. Guidance with proper implementation and selection will also be provided 8.2 Quantitative Results The slide deck, the most important deliverable created by the team, consists of the following:

● One page slide on the executive summary of the company ● Four slides on the importance of communications and collaborations in businesses

○ 87% of customers believe that video collaboration in enterprise communications is either important or extremely important

○ Vast majority of IT leaders predict that collaboration tools will become important in their businesses within three years

● Six slides on the top performing platforms available and their features ○ Google Hangouts ○ Office Suite ○ GoToMeeting ○ Unified Meeting 5

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○ Fuze Meeting ○ Zoho Meeting ○ WebEx ○ Campfire ○ Yammer

● Two slides on the services offered ○ Initial client consultation and evaluation

■ Platform recommendations based on in-depth analyses ○ Installation and Training Session

■ Customized slide deck ■ Hands-on workshop

● Three slides on the cost-benefit analysis ● One slide on the benefits of choosing the company

○ Expert knowledge ○ Time Saving ○ Unbiased ○ Cost-effective

8.3 Client Feedback Company 1 - Leasor Electric, INC On April 18, 2016, the members presented Universal Association’s consulting slide deck to Leasor Electric, INC through connections with Laura Willcut. The company had an outsourced IT manager who would not be able to offer an all day training session. Overall, Leasor Electric was very interested in Universal Association, making several points:

● Flexible training dates are a must ● Initial consultation then a second visit for installation/training because of the

customization ○ No need for help with migrating, but would need assistance setting up the

software for international and the various mobile devices ● Daily rate for training so they can schedule it in two to three shifts were well

accepted ● The cost was close to what they paid in the past but that business is located in

Kentucky, so the owner agreed that it is reasonable to adjust for location Company 2 - Crest Furniture

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Crest Furniture already had an existing custom coded software for communications and collaborations, but agreed that it is outdated. They accepted the concept of something that is dynamically updated and where they can pick and choose their features. The owner expressed interest in Universal Association with several valid recommendations:

● Best-of Breeds idea is a huge plus for them ● Data migration is a concern for them and it might have to happen during off-hours

after 5 PM ● The cost is less than what they have paid for comparable services in the past ● The potentially low-to-no fee for the software, compared to the $3000+ they paid

for what they have is a huge benefit ● Unfortunately, they did not like the idea of paying another $900 daily fee for

training for any potential new employees of theirs ○ To adjust to this, Universal Associates will cover the training in printed

material the company will give Crest Furniture

9. Summary / Conclusions The importance of an optimal communications and collaborations platform in businesses cannot be underestimated. Through research, team members have concluded that many small to mid-sized businesses use a suboptimal or outdated platform. The key aspect of this consulting project is to stress the benefits achievable through an optimal communications and collaborations platform. Although the team had initially come to this conclusion, client feedback strongly enforced the conclusion. After receiving valuable feedback from clients, the team would make major adjustments to the final slide deck, given ample time. These changes will not make it into the final slide deck,

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however, due to strict time constraints. Given more time for completion, these changes would work quickly to extensively answer the big question, “Why should clients choose Universal Association over any other company?” Team 7 has performed an excellent job researching the statistics supporting the benefits of communications and collaborations in businesses. With more time, the team could better appeal to clients with the intentions of furthering the company. This project has served as an excellent opportunity for personal growth and learning. The research skills each member has received from this project will be beneficial far into the future. The experience with pitching the company idea to companies is an extremely valuable experience that many others get too late in their careers. Without our client feedback, the team would have failed to realize many major adjustments needed to be made for our service to be successful. The team gained substantial insight on management as well as the IT consulting industry

10. Appendices

References Benedičič, J., Krek, J., Leben, V., Velez Vöros, G., Beravs, T., Potočnik, S., & Žavbi, R. (2015). DEVELOPMENT OF AN AUTOMATIC MARKETPLACE USING VIRTUAL COLLABORATION. Tehnicki Vjesnik / Technical Gazette, 22(2), 431-441. Retrieved March 28, 2016, via Academic Search Premier doi:10.17559/TV-20140904230909

This paper credits virtual collaboration and communication for the successful development of a business enterprise. When people of different skillsets are able to collaborate effectively virtually the end product is one of high quality that should be praised.

Computer Weekly. (2014, May). The Changing Course of Collaboration Software [PDF]. Retrieved March 9, 2016.

This article discusses the ever changing collaboration landscape. It discusses how it has diversified and now favors methods that augment our day to day activities. Workflow and analytics are seeing increasing utilization and has been seen to improve overall performance. The author states that it is becoming more and more necessary for companies to incorporate a stronger communications and collaborations platform in their businesses.

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Cyphert, D., Wurtz, M. S., Duclos, L. K. (2013) Curricular Implications of Virtual World Technology: A Review of Business Applications [PDF]. Retrieved February 22, 2016.

Traditional principles of business organization need to be reexamined as more and more businesses employ the use of virtual worlds. Even still, guidance should be grounded in current traditions and ideals.

Gartner IT Glossary. (2016, January 1). What is SMB? - Gartner Defines Small and Midsize Businesses. Retrieved March 1, 2016, from https://www.gartner.com/it-glossary/smbs-small-and-midsize-businesses

Gartner’s information areas were ones that we went to often, as it’s a highly reputable and trusted source. Their definitions of business terms are extremely accurate. Our definition of small to mid-sized businesses was derived from this article. It also states how SMBs struggle with IT challenges because of their size. IT sources in smaller businesses are usually constrained

Gibbs, J. L., Eisenberg, J., Rozaidi, N. A., & Gryaznova, A. (2015). The “Megapozitiv” Role of Enterprise Social Media in Enabling Cross-Boundary Communication in a Distributed Russian Organization. American Behavioral Scientist, 59(1), 75-102. Retrieved March 26,2016, via Academic Search Premier doi:10.1177/0002764214540511

This paper discusses the positive effects of collaboration, specifically how it enables cross-boundary communication that bridges divides from country to country. The importance of international communication is essential for businesses that stretch across different countries.

Hamilton, M., Kass, A., Alter, A. (2016) How Collaboration Technologies are Improving Process, Workforce, and Business Performance. Retrieved March 25, 2016 from https://www.accenture.com/us-en/insight-outlook-how-collaboration-technologies-are-improving-process-workforce-business.aspx

This article gave a very perspective outlook on how collaboration tools are making businesses accelerate. Many executives sense they should be getting more value from these tools. It highlights how collaboration tools are becoming more and more important in businesses, especially if they need to keep a competitive advantage.

Keiser, B. E. (2014, Oct). Cool Tools for Collaboration and Information Sharing [PDF]. Retrieved March 8, 2016.

This article discusses the often untapped potential of collaboration tools. They can save time and improve accuracy as more people work together and build on each other’s work. The team found a number of platforms available from this source. This source names platforms as well as their features and functions. The programs discussed in this article were all up to date

Lorette, K. (2015). Importance of Good Communication in Business. Retrieved February 25, 2016 from http://smallbusiness.chron.com/importance-good-communication-business-1403.html

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This article lists different types, effects, and identifications of communications in businesses. It gave the team a good overview about how companies can benefit from having a good communication.

Mangalaraj, G., Nerur, S., Mahapatra, R., Price, K. H. (2014, March). Distributed Cognition in Software Design: An Experimental Investigation of the Role of Design Patterns and Collaboration [PDF]. Retrieved March 8, 2016.

This research article found that people work better when they are able to collaborate. It also finds that the availability of patterns in design improve quality as people are more likely to work together since they are working off the same model.

Marco, K. (2015, November 1). Democratization of Technology Brings Enterprise IT To SMBs: Ruckus, Nutanix Seize Opportunity. Retrieved March 2, 2016, from http://www.forbes.com/sites/kurtmarko/2015/11/01/tech-democratization-smbs/#746b3c274da6

This article points out some of the difficulties faced by SMBs in comparison to large businesses. It has information on companies who are focusing on bringing different IT services to smaller businesses, and was helpful despite the differences in what areas they were focusing on.

Parry, S., Rowley, J., Jones, R., Kupiec-Teahan, B. (2012, July). Customer-perceived value in business-to-business relationships: A study of software customers [PDF]. Retrieved March 21, 2016.

There has been much research into business-to-business relationships, but not into how customers perceive value in the software industry. It was found that customers value price, functionality, bilingual capability, location and software capability. In terms of customer service, customers value communication, understanding, trust, relationships, service, professionalism, and expertise.

Satell, G. (2016, February 6). Why Communication is Today’s Most Important Skill. Retrieved on March 12, 2016 from http://www.forbes.com/sites/gregsatell/2015/02/06/why-communication-is-todays-most-important-skill/#2d06785c3638

This source articulates how communication is an essential skill needed in today’s society. It states that effective leaders always require the ability to communicate well. In order to innovate it is not enough to just come up with big ideas but you also need to work hard to communicate them clearly.

Simonds, L. (2015, November 3). A Small Business IT Concierge at Your Service. Retrieved February 9, 2016, from http://www.smallbusinesscomputing.com/News/ITManagement/a-small-business-it-concierge-at-your-service.html

This article was found during a search for potential competitor products and services. It’s indicative of the types of similar services available to potential clients, and contains information on this company’s offerings. The article discusses how IT pros regularly contend with increasing demands and evaporating budgets. It states that trying to advance an IT strategy can help a company more forward.

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Wicks, D. (2014). What are the Causes of Poor Workplace Communication. Retrieved March 14, 2016 from http://smallbusiness.chron.com/causes-poor-workplace-communication-20827.html

This source talked about how poor communication manifests in businesses. It listed things from cultural diversity, unclear goals, and poor leadership.

Wille, D. (2013. April 12). The Effects of Poor Communication in the Workplace. Retrieved March 12, 2016 from http://duanewille.com/the-effects-of-poor-communication-in-the-workplace/

This source illustrated the effects of poor communication in the workplace. With poor communication, not only do businesses lack clear goals, but there will be a larger amount of employee errors. Essentially companies will suffer from lower productivity