Wayfair Case Study PDF

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Summary

This is a Wayfair case study assignment that was assigned and completed....

Description

1. Based on the “build or buy decision” section from of the textbook chapter 10 “Developing Information Systems”, provide a comparative analysis of the answers to questions that should be addressed as Wayfair considers the option of replacing the Unity AR/VR software engine that they currently license from Unity with something they custom develop themselves.

Is there COTS software that will meet the business’ needs?

● The Unity video game engine and augmented/virtual reality platform can improve the visualization of products in context. ● AR/VR can enhance internal operations by easing the burden on transporting and maneuvering physical objects.

Will the software give your company a competitive advantage?

● Wayfair can gain a large competitive advantage by enhancing the customer experience through AR and VR. ● The use of artificial intelligence to improve processes is unique in the furnishings business.

Does the COTS software fit with business processes?

● In a company with a startup culture, Wayfair values development through bottom-up innovation. ● The adoption of Unity’s platform would not fit with Wayfair’s culture since internal development would be outsourced.

Does the COTS software fit with existing IT architecture and staff?

● Currently, Wayfair employs Scrum project management which emphasizes teamwork and accountability which Unity’s project management has to adapt to. ● The Scrum principles of transparency, inspection, and adaptation may be harder to adopt when development is outsourced.

Do you have the capability to create the required system?

● Unity utilizes cross-platform technology that has been highly regarded by gamers and large corporate customers.

When is the system needed?

● COTS software would be ready to use in a much shorter time than when developed in-house. Wayfair would utilize this technology to improve the online customer experience through visualization in context. ● The system’s capabilities in VR and AR could also assist in operations processing.

What is the total cost of ownership for each approach?

● COTS would be a cheaper alternative compared to employing a development team to create a new platform. ● COTS are usually more refined and higher quality. ● A system management team would need to be employed for maintenance and improvements of the system.

2. Based on the different approaches to systems and software development described within the textbook chapter 10 “Developing Information Systems”, which one do you recommend that Wayfair employ to develop a replacement for the Unity AR/VR software engine? List all of the reasons for the approach you recommend. I would recommend that Wayfair develop the system themselves. ● COTS does not align with Wayfair’s startup culture as well as bottom-up approach in terms of development. ● COTS from Unity would need to be customized to Wayfair’s customer-oriented and innovative needs which could take a great deal of work as well. ● Since Wayfair has adopted Agile project management methodologies, it would be difficult to adapt the methodology for COTS software. ○ Agile methodology in conjunction with DevOps helps to release projects at a quick pace. ● By developing the system in-house, Wayfair can quickly address issues in the system without having to outsource personnel to deal with them.

3. Based on the project classification categories and the risk management aspect of project management as described within appendix K (“Managing IS Projects”) of the textbook, how would you classify a project to replace the Unity AR/VR software engine? Based on your categorization, list the major risks involved, the likelihood they will occur (in your opinion), their potential impact, and your recommended response. A project to replace the Unity AR/VR software engine would be classified as strategic since it provides Wayfair an opportunity to gain a competitive advantage in their industry through an enhanced customer experience.

Major Risks

Likelihood to Occur

Potential Impact

Recommended Response

Scope

The scope of the project would require a large amount of resources to design and implement.

Since the project has such a large scope, Wayfair may need to commit many resources. The project may also be hard to plan.

Wayfair could first experiment with the software in certain regions and then analyze the methods.

Cost

Compared to COTS software, in-house development would be more costly in the short term.

A high cost of development could hurt Wayfair’s profit margins.

A cost analysis would be useful in determining the most important aspects that are needed to help facilitate the development of the software.

Time

In terms of an in-house development, the software would take much longer than COTS software from Unity.

Due to the amount of resources this project would take, other in-house projects may not be as highly prioritized which may lead to potentially lucrative projects being stalled.

Prioritize the project by utilizing a majority of resources while continuing to foster innovation and development through other employees and hackathons....