Business Case

Online Order Management System

Lubbock Florist

Prepared by: Scott Weeden
Date: July 15, 2025

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Most Suitable Area of Impact

The most suitable area of impact is Operational. Lubbock Florist’s primary challenges stem from inefficient operational processes including:

• Manual order entry leading to duplicates
• Inadequate inventory tracking causing stockouts
• Time-consuming order fulfillment processes

Most Suitable Desired Value

The most suitable desired value is Better. The project aims to improve:

• Quality of business operations through automation
• Real-time inventory management
• Elimination of errors and inefficiencies

Appropriate Metrics

Table 1: Key Performance Metrics

Metric	Current State	Target State
Order Processing Accuracy	85%	99%
Inventory Accuracy	60%	95%
Order Fulfillment Time	45 min	27 min
Peak Season Stockouts	8-10 incidents	2-3 incidents

Time Frame

MOV Statement

“Improve operational efficiency by reducing order processing errors to less than 1% and decreasing order fulfillment time by 40% within 6 months of system implementation, while maintaining 95% inventory accuracy to prevent stockouts during peak seasons.”

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Business Case Analysis

Step 1: Define MOV

The Measurable Organizational Value (MOV) for Lubbock Florist focuses on operational efficiency improvements that directly address their core business challenges.

Step 2: Form Team

Table 2: Project Team Structure

Role	Member	Responsibilities
Project Sponsor	Carlos (Owner)	Final decisions, budget approval, strategic alignment
Project Manager	IT Consultant	Timeline management, coordination, risk management
Lead Florist	Senior Designer	Process expertise, workflow design, training lead
Operations Staff	Order Processor	Current system knowledge, testing, peer training
Technical Support	Part-time IT	System setup, integration, ongoing support

Step 3: Identify Alternatives

Step 4: Assess Feasibility & Risk

The risk vs. feasibility analysis shows that Alternative 1 (Cloud System) offers the best balance of high feasibility with moderate risk.

Step 5: Calculate Total Cost of Ownership (TCO)

Table 3: Detailed 3-Year TCO Analysis

Cost Category	Alt 1	Alt 2	Alt 3	Alt 4
Direct Costs
Initial Setup	$1,000	$20,000	$3,500	$0
Hardware	$500	$1,000	$1,000	$0
Ongoing Costs (3 years)
Subscription/Maintenance	$10,800	$3,600	$0	$0
Training	$500	$1,000	$500	$0
Support	$0	$2,400	$1,000	$0
Indirect Costs
Lost Productivity	$1,000	$1,000	$3,000	$15,000
Stockout Losses	$500	$500	$2,000	$10,000
Total 3-Year TCO	$14,300	$29,500	$11,500	$25,000

Step 6: Estimate Total Benefits of Ownership (TBO)

Step 7: Analyze Alternatives

Table 4: Financial Analysis Summary

Metric	Alt 1	Alt 2	Alt 3	Alt 4
3-Year Net Benefit	$39,700	$24,500	$15,500	-$25,000
ROI	278%	83%	135%	-100%
Payback Period	4 months	16 months	8 months	Never
NPV (10% discount)	$33,421	$16,832	$11,234	-$22,539

Table 5: Multi-Criteria Scoring Model

Criteria	Weight	Alt 1		Alt 2		Alt 3		Alt 4
ROI	25%	9	2.25	6	1.50	7	1.75	0	0.00
Strategic Fit	20%	9	1.80	8	1.60	5	1.00	2	0.40
Risk Level	15%	8	1.20	4	0.60	6	0.90	3	0.45
Implementation	15%	9	1.35	3	0.45	7	1.05	10	1.50
Scalability	15%	9	1.35	7	1.05	4	0.60	1	0.15
User Adoption	10%	8	0.80	7	0.70	8	0.80	10	1.00
Total	100%	8.75		5.90		6.10		3.50

Step 8: Recommendation

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Iterative Implementation Plan

Project Overview

Table 6: Implementation Plan Summary

Project Name	Lubbock Florist Cloud System Implementation
Duration	6 months (26 weeks)
Budget	$14,300 (3-year TCO)
Expected ROI	278%
Payback Period	4 months

Implementation Phases

Detailed Phase Plans

Phase 1: Project Initiation (Weeks 1-2)

Task	Description	Deliverable	Responsibility
Kick-off Meeting	Align stakeholders on project goals and MOV	Meeting minutes	Project Manager
Vendor Evaluation	Research and compare cloud florist systems	Vendor comparison matrix	IT Consultant
Current State Analysis	Document existing processes	Process flow diagrams	Operations Staff
Requirements Gathering	Define system requirements	Requirements document	Team

Phase 3: Pilot Testing (Weeks 7-10)

Phase 4: Full Rollout (Weeks 11-14)

Table 9: Rollout Schedule

Week	Activity	Success Criteria
Week 11	Launch order management module	100% orders in system
Week 12	Activate inventory tracking	Real-time stock updates
Week 13	Enable customer database	All customers migrated
Week 14	Go-live support and monitoring	<2% error rate

Phase 5: Optimization (Weeks 15-18)

• Refine workflows based on user feedback
• Implement advanced features (reporting, analytics)
• Optimize system performance
• Conduct additional training sessions

Risk Management

Table 10: Key Risks and Mitigation Strategies

Risk	Probability	Impact	Mitigation Strategy
User Resistance	Medium	High	Early involvement, comprehensive training, change champions
Data Migration Issues	Low	High	Thorough testing, backup procedures, phased migration
Vendor Reliability	Low	Medium	SLA agreements, regular backups, exit strategy
Budget Overrun	Low	Medium	Fixed-price contract, clear scope, change control process

Success Metrics Dashboard

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