Case Analysis
Case Study Analysis
Introduction
State oil company of Egypt has two legacy systems that are “Dispatch IT System” while the
other is “Separate Legacy IT System. The dispatch system is to manage issues, operations,
and allocation of vehicles and separate Legacy IT systems to manage the working routines of
employees or individual journeys and allocating budget to separate departments. Dispatch
system of SOCE crashed for ten days and all activities and operations of companies are
affected due to this. Manager of the SOCE approved budget for the improvement of these two
systems. So the company wants to develop a new mobile data and fleet management system
and for this new system company hire a manager named “mark wood” for responsibility of
handling this project. ISL demands additional budget and IT manager of SOCL refused to
give additional budget. Project is not completed because ISL do not meet the requirement of
the SOCL and project is exceeding over budget and time schedule
Background
The old legacy system has been crashed by the State Oil Company of Egypt and the firm
wants to build a new system name as Mobile data and fleet management system (MODAF).
For the implementation of this system IT manager “mark wood has been hired”. Mark wood
has worked in a number of reputed companies’ including banking sectors etc. and “Mark
wood” is very familiar with a UK based company name as “Innovative Solution (ISL)”.IT
manager wants to contract with the ISL because ISL has the ability to design and built a
MODAF system. Marked checked the registration process of SOCE with the oil and gas
sector and informed about it to the sales director of the ISL and send a feasibility study to the
SOCE about project formation and implementation.IT manager also contact two other
supplier RTM and computer systems against project specification but in the end, IT managers
choose ISL for MODAF implementation because both companies provide high price
quotations for the project.IT manager contact the procurement team of the SOCE for the
formal agreement with ISL on the basis of terms and conditions. Mark also invited the
marketing director of ISL for the award of the project during agreement.
Research Problems in the Case
1. On the basis of analysis, the main research problem in the case is that Project has
exceeded the budget schedule and did not supply the required functionality of the
MODAF.
2. The main problem, in this case, is to SOCE hire a new manager for building and
implementing a new system. When the manager of the SOCE approved a budget for
the improvement of the two legacy systems then SOCE should not contract for a new
system MODAF and avoid the cost of hiring new IT managers for building a new
system. The firm should rebuild and improve the existing system within the budget
1
, Case Analysis
approved by a SOCE manager instead of building a new system MODAF at a high
cost.
3. Another problem is that the SOCE contract with ISL and requests that a new system
should be fast and have the ability to respond with a proper answer to any user query
within a second but at the end ISL did not provide such a fast system.
4. ISL demands budget of $1,750,000 for a target completion of the new system at the
start of the legal agreement for six months but at the end when SOCE request that new
system has failed to achieve the initial objective of the new system so ISL should
update the system and provide an initial objective but ISL demands additional budget
of a $192,000 for the delivery and correction of the project. On the other hand, ISL
ensures a warranty period of 90 days at the beginning of the agreement in case of any
incompletion or fault.
5. It was financially a mismanaged project which failed to attract SOCE throughout the
whole process. Due to a lack of contingency plan, ISL failed to manage expectations
and requirements of the SOCE while the functionality of the software was odd.
Factors Found in Failed MODAF Project
⮚ Incomplete Requirements
⮚ Lack of user involvement in the project
⮚ Insufficiency of Resources
⮚ Illogical Expectations
⮚ Lack of Executive Support
⮚ Changing Requirements & Specifications by the supplier
⮚ Lack of Project Planning
⮚ Lack of IT management
⮚ Technical ignorance
⮚ Exceeding Budget
⮚ Exceeding Schedule
⮚ Do not meet the objective of the project
⮚ Do not meet organizational goals
Evaluation of Case
Two legacy systems of SOCE have been crashed and the firm wants to implement a
new system MODAF with the ISL on the demand of a new IT manager of SOCE. The
purpose of the MODAF is to provide the customers with a user-friendly dynamic system that
has the ability to change the transport and security personal for the dispatch of vehicles and
2
Case Study Analysis
Introduction
State oil company of Egypt has two legacy systems that are “Dispatch IT System” while the
other is “Separate Legacy IT System. The dispatch system is to manage issues, operations,
and allocation of vehicles and separate Legacy IT systems to manage the working routines of
employees or individual journeys and allocating budget to separate departments. Dispatch
system of SOCE crashed for ten days and all activities and operations of companies are
affected due to this. Manager of the SOCE approved budget for the improvement of these two
systems. So the company wants to develop a new mobile data and fleet management system
and for this new system company hire a manager named “mark wood” for responsibility of
handling this project. ISL demands additional budget and IT manager of SOCL refused to
give additional budget. Project is not completed because ISL do not meet the requirement of
the SOCL and project is exceeding over budget and time schedule
Background
The old legacy system has been crashed by the State Oil Company of Egypt and the firm
wants to build a new system name as Mobile data and fleet management system (MODAF).
For the implementation of this system IT manager “mark wood has been hired”. Mark wood
has worked in a number of reputed companies’ including banking sectors etc. and “Mark
wood” is very familiar with a UK based company name as “Innovative Solution (ISL)”.IT
manager wants to contract with the ISL because ISL has the ability to design and built a
MODAF system. Marked checked the registration process of SOCE with the oil and gas
sector and informed about it to the sales director of the ISL and send a feasibility study to the
SOCE about project formation and implementation.IT manager also contact two other
supplier RTM and computer systems against project specification but in the end, IT managers
choose ISL for MODAF implementation because both companies provide high price
quotations for the project.IT manager contact the procurement team of the SOCE for the
formal agreement with ISL on the basis of terms and conditions. Mark also invited the
marketing director of ISL for the award of the project during agreement.
Research Problems in the Case
1. On the basis of analysis, the main research problem in the case is that Project has
exceeded the budget schedule and did not supply the required functionality of the
MODAF.
2. The main problem, in this case, is to SOCE hire a new manager for building and
implementing a new system. When the manager of the SOCE approved a budget for
the improvement of the two legacy systems then SOCE should not contract for a new
system MODAF and avoid the cost of hiring new IT managers for building a new
system. The firm should rebuild and improve the existing system within the budget
1
, Case Analysis
approved by a SOCE manager instead of building a new system MODAF at a high
cost.
3. Another problem is that the SOCE contract with ISL and requests that a new system
should be fast and have the ability to respond with a proper answer to any user query
within a second but at the end ISL did not provide such a fast system.
4. ISL demands budget of $1,750,000 for a target completion of the new system at the
start of the legal agreement for six months but at the end when SOCE request that new
system has failed to achieve the initial objective of the new system so ISL should
update the system and provide an initial objective but ISL demands additional budget
of a $192,000 for the delivery and correction of the project. On the other hand, ISL
ensures a warranty period of 90 days at the beginning of the agreement in case of any
incompletion or fault.
5. It was financially a mismanaged project which failed to attract SOCE throughout the
whole process. Due to a lack of contingency plan, ISL failed to manage expectations
and requirements of the SOCE while the functionality of the software was odd.
Factors Found in Failed MODAF Project
⮚ Incomplete Requirements
⮚ Lack of user involvement in the project
⮚ Insufficiency of Resources
⮚ Illogical Expectations
⮚ Lack of Executive Support
⮚ Changing Requirements & Specifications by the supplier
⮚ Lack of Project Planning
⮚ Lack of IT management
⮚ Technical ignorance
⮚ Exceeding Budget
⮚ Exceeding Schedule
⮚ Do not meet the objective of the project
⮚ Do not meet organizational goals
Evaluation of Case
Two legacy systems of SOCE have been crashed and the firm wants to implement a
new system MODAF with the ISL on the demand of a new IT manager of SOCE. The
purpose of the MODAF is to provide the customers with a user-friendly dynamic system that
has the ability to change the transport and security personal for the dispatch of vehicles and
2
