Management

Building the Project

Costs involved in the project.

Direct Costs

Web design                                       $1000

Domain name                                    $10 per year

Web hosting                                      $10 per month

Software                                            $399

Maintenance                                      $100 per year

General and Administrative Costs

Advertising                                        $50 per month

Time phased Budget

Element	Unit	Jan	Feb	Mar	Apr	May	Jun	Total
Web Design	USD	1,000	0	0	0	0	0	1,000
Domain name	USD	20	0	0	0	0	0	20
Web Hosting	USD	10	10	10	10	10	10	60
Software	USD	399	0	0	0	0	0	399
Advertising	USD	50	50	50	50	50	50	300
Maintenance	USD	50	0	0	0	0	0	50
Report Totals	USD	1529	60	60	60	60	60	1829

 

The cumulative cost of the project for six months is $1829. This includes all the costs to be encompassed in this project. Costs that involve the larger boutique store are not included and costs that may arise due to the creation of this website are not included. Advertising the website in the press for example, newspapers will also include advertising the business as a whole and this makes it an indirect cost to this project.

Cost Cutting Areas

            In order for a project to be termed as viable, a cost benefit analysis has to be conducted (Rees, 2010). The report shows what the benefits of the project are as compared to the costs of implementing the project. In this project, this is also necessary and the following areas can help cut costs of implementing this project. In web hosting, the business can cut costs by paying for yearly subscription rather than monthly subscriptions. In this way, the business can get discounts and pay less. In addition, the company can use the expertise of its own staff in the information technology department to build the website. This means that the company will pay less for the services rendered and build the experience of its staff.

Risks and ways to counter these risks

            One of the major risks identified is whereby customers who purchase clothes, shoes and other accessories online cannot try them on before the purchase. This means that there will be occurrences of clothes not fitting a customer. Such a customer will have to return the clothes to a store. To counter this risk, the boutique already has a physical store where the customers can return the clothes. In addition, a system has been put in place to check for faults in the item incase the customer returns an item with defects (Shoniregun, 2005). The customer will also be advised on how to get a new size and if any changes are to be made to the order, the sales persons will be notified. In these ways, this risk will be nullified.

Another risk is attack by malicious users who want to access clients’ credit card numbers and use them to embezzle money from clients’ accounts (Olsen, 2009). In this way, the store may lose its customers because they would not trust the store’s website any more. To counter his risk, the website will be protected by the necessary software and firewalls to ensure that only legal users access the website. Secondly, customer information will be kept secret and safe so that no one has access to sensitive information. This will be made easier with encryption technology that keeps all data secure. By doing this, customers will be assured of the safest means of protecting their information. The use of protected passwords will be encouraged and all passwords will be masked to ensure that only a client knows their password. In addition, telephone numbers will be provided and telephone operators made available for customers who want to purchase items over the phone. This is especially for those customers who do not want to post their details over the internet.

As a protective measure for the business, a purchase will not be completed until all the required information is given by the client (Sink, 2003). This information is useful when delivering items as well as when discrepancies occur and the business has to follow the client. Besides, addresses must be crosschecked to ensure that they are real and that the owners of credit cards can verify such information. International orders made via email must be scrutinized thoroughly to verify genuineness. This will ensure that the business does not ship items to people who do not pay for the service. When a sales person is suspicious about a certain order, permission to call the client will be given. In addition, for goods of higher values, a phone call to the client will be a necessity. To protect the website from attack by malicious software like viruses, strong and well-known antivirus will be used. This website has to be made credible by all means possible to ensure that the business does not lose its customers. The information given by customers is confidential and must be protected. When the proper guidelines are followed, the website will be a fruitful investment by the boutique. Increase in sales will definitely prove that the project was worth the costs incurred.

References:

Olsen, G. (2009). Credit Cards Online – Avoiding The Risks. Retrieved June 8, 2010, from www.southwestecommerce.com: http://www.southwestecommerce.com/articles/credit-cards-online—avoiding-the-risks.html

Rees, P. (2010). What is a Project? Retrieved June 8, 2010, from julievetter.com: http://julievetter.com/xyz/index.html

Shoniregun, C. A. (2005). In Impacts and risk assessment of technology for Internet security: Enabled information small-medium enterprises (TEISMES). New York: Springer.

Sink, E. (2003, May 9). Small ISVs: You need Developers, not Programmers. Retrieved June 8, 2010, from www.ericsink.com: http://www.ericsink.com/No_Programmers.html