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Objectives of Case Project
Issues Associated with the Case Project
Failures with the Early Implementation.
Cost Overrun and Schedule Delays in Myer’s Project
Initial Project Delivery Method.
Final Project Delivery Method.
Recommendations to Project Manager
The case is about a project failure of website development that was faced by a company named as Myer in Australia. This report is going to analyze the project failure case study of Myer’s online shopping disaster. It further reflects the objectives of case project, issues associated with the project, initial project delivery method, cost overrun, schedule delays, and final project delivery method. Moreover, this report recommends the project manager to manage this project in its earlier stage to avoid any failure.
Myer Company is the largest department store in Australia having an emphasis on prioritizing clients of the first basis in each decision it takes, and in each activity it does. It is having sixty-one departmental stores all over the nation and it performs its major operations into Australia. However, it has its sourcing office locations in Hong Kong, and China in addition to Australia. The main objective of this company is to offer the highest quality, friendly, unique brands, compelling values, and helpful service to its clients. Furthermore, the main focus of this company is to transform customer experience in-store, endure to enhance its website "Myer.com.au", and to boost its sales via the virtual platforms by investing substantially in the website development. Besides, its values are: do what’s right, own its future, customers come first, and its inclusive team (Myer my store 2020).
The Myer Online Shopping is a platform for Australians to find out a systematized range of inspirational native and global lifestyle brands, affixed in homemade, and entertainment. It is a comprehensible and content-rich virtual shopping place that is run by the nation's largest department store. The broad range of its products is in the form of infant’s, children’s, men’s and women’s footwear, outfit, and fittings.; travel products; video games, homewares, cosmetics and fragrance; flooring, toys; and so on. Furthermore, this company had a stimulating trading story bearing in mind its modest commencement in the year 1900, and its market supremacy in contemporary times. Moreover, it fulfills a demand from its core customer base for an Australian-owned virtual portal. Myer knows and comprehends the nation’s clients and enables a simple and reliable shopping experience. This allows shoppers to gain company’s one shopping praises, capable of returning the things brought online at any of its stores, utilizes gift cards, be secured by its ‘no regret policy’, and imagine the identical shipping terms as they presently get at its website (Myer my store, 2019).
It is dedicated to accountable business growth and incorporating social, moral, and ecological considerations into the way it operates. Further, its sustainability approach aims to enhance the positive results and impacts it can have on its stakeholders by incorporating all the facets of sustainability into its routine business operations. The Myer online shopping company believes that by connecting with and contributing to the societies wherein it resides and operates, it can have an encouraging social influence, make a permanent contribution, and generate a more sustainable forthcoming.
A project issue refers to a glitch that has been faced in implementing project activities. It mainly damages a project’s capability to effectively accomplish (Van Offenbeek and Vos 2016).
The main issues associated with the case project are stated below:
Furthermore, the main causes of this project failure are mentioned below:
It is noteworthy to say that today most of the companies are dedicated to seizing markets and conducting projects lucratively. However, it is equally essential that they must focus more upon bungling the projects effectively, as the significance of project completion in a profitable manner offset its origination (Taherdoost and Keshavarzsaleh, 2016). A project is said to be a failure in case it is not delivering the required things within the given time and budget. It is a fact that project failure can occur in any company and to any assignment (Anthopoulos et al., 2016). The earlier failures of the implementation of Myers's online shopping project were numerous. Firstly, there was a technical and software failure that occurred due to the communication issues between servers and software. Further, this failure demonstrates the fact that the company and its outsourcing partner IBM had failed to suitably create and test their infrastructure or discover the basic disaster recovery and business endurance plan. There had been a failure in terms of developing its website to manage the growing demand of the Australians.
In the same year 2014, the technology behind public-facing sites was extremely consistent. The association between application servers, networks, databases, and physical servers they operate on is also understandable. It can be said that in respect of Myer’s failure, it had distorted under the unforeseen burden of the boxing day sales, compelling down the rest of the website’s interwoven systems in a detailed representation of the notion that a chain can only as strong as its fragile link. The initial failure was found by the IBM team is not just in the form of software bugs but the lacked the basic corporate continuity and disaster recovery functionality. It was not only the system that was deteriorating under load; however, it was the system that has certainly not been broadly tested for the load that even Myer could suppose (Tay 2013).
It is noteworthy that the incompetency to accomplish projects within the allotted time and budget endures being a chronic issue globally and is deteriorating. These are the intrinsic part of numerous projects regardless of the much-developed knowledge in project management (Al-Hazim, Salem, and Ahmad, 2017). Schedule delay can be defined as the delay of time beyond an intended completion date indicated in an agreement or beyond the date that parties settled upon for distribution of the project. On the other hand, cost overrun refers to the additional real cost over the budgeted one. It is also known as cost increase, cost growth, and budget overrun (Larsen et al., 2016). The Myers, Australia’s largest department store, has already capitalized tens of millions of dollars on the website development to increase online sales.
Furthermore, schedule delays were there in reaching the main cause of the issue in the non-operative website of the company. The company, with the help of the IBM team, has to spend a lot of time finding the root cause of the issue. The online sales of the company stopped for the six days until the bug was identified and thus it has reduced its slight portion of its overall revenue. It can be seen from the case study that the financial implications are negligible; however, it can be found that there is lasting damage to the company's image and brand equity. Further, it has to compensate for the advertised availability during the Christmas period and for that, it has offered free shipping to the clients after the running back of the website. In particular, the company placed the monetary loss on the sales at below one percent of its business contributed to $ 31 million (TechAU 2013)
Mainly, the cost overruns originate from the errors in the website designs. It can be said that an error design virtually means the incorrect or inadequate demonstration of project deliverables. It will result in the incorrect application of methods in attaining outcomes like the definite implementation stage of the project explains these design errors, and try to correct these will result in cost overrun and schedule delays. Further reasons for the same could be unsuitable and insufficient procurement and defective contractual management system. It is because if a contract has not high pointed the complete project state, it may result in an argument in the contract system. The complexity of the project can also be one of the contributing factors for the delay and cost increase. In this respect, dynamic planning must be done that includes each facet of project milestones, WBS (work breakdown structure), methodology, and more (Sharon and Dori, 2014).
Project delivery refers to the inclusive procedure entailing scheduling, design, and building needed to start and finish a kind of project. It is noteworthy that the selection of a project delivery methodology is a chief decision taken by project managers when developing their acquisition approach (Antoine, Alleman, and Molenaar 2019). The early project delivery method for the Myers online shopping website development project was a waterfall model that is a traditional project management methodology. Also, this model is indeed decent just for simple and short-run projects. However, the website development project is a long one and there needs to be Upgradation after every regular interval as per the market demands. Therefore, this project delivery method is somehow unsuitable for the Myers online shopping website development. Additionally, if there is a change in one of the phases of the waterfall model, then there will be unavoidable changes in the entire succeeding phases. It never caters to necessities changing while the developing cycle. Moreover, there are higher amounts of uncertainty and risks associated with this model. This model depends on the project certification like the practical specifications to describe the scope of work obviously before it is happening. Due to the model's inflexibility, the Myers project got failed as the waterfall model depends on the scope and agrees to be defined straightforward, and there is a slight room for change during the project (Rahmanian, 2014).
It is evident from the case study that the website development project at Myers did not end. In the further projects of website development, the team developed clear objectives and expectations to attain instant corporate benefits and assist long-run growth and expansion goals. Further, it built robust grounds with oracle retail merchandise financial planning, and oracle retail size profile optimization. It took assistance from TCS (Tata consulting services). They together adopted a project delivery method of the agile model for web development. It enabled the company to experience augmented benefits and the project compensated for itself. This project was delivered across numerous teams entailing merchandise, IT, and TCS wherein it transitioned from the waterfall model to an agile methodology for project delivery method that further certified the success of the project (Ambrogio, 2019).
It is true to say that agile is the method to project management that certifies that operational software is the main measure of development on a project. It refers to that type of project delivery method used usually for software development wherein desires and solutions emerge via cooperative exertions of self-functional teams and their clients (Dingsøyr et al., 2019). Furthermore, this methodology enables the company to deliver software with a great emphasis on technical superiority and decent website design. It also offers it more flexibility to achieve demanded scope changes during the project. It can also be said that with this project delivery method, web developers can also preserve a consistent workplace, involve in frequent face-to-face communication, and adapt to the team's conduct at frequent intervals to refine effectiveness. Therefore, it is an ongoing method and there is an extreme level of interaction between the project team members wherein activities are implemented promptly and adaptively. Further, it also assists prompt changes to the choice and direction of the project grounded on market necessities (SA and Nisha, 2020).
The recommendations that project manager (PM) would like to make in case he was assigned this project in its early stage, are stated below:
From the above case study analysis, it can be concluded that the main objective of Myer is to transform customer experience in-store, endure to enhance its website "Myer.com.au", and to boost its sales via the virtual platforms by investing substantially in the website development. Further, it can be inferred that the initial project delivery method for the Myers online shopping website development project was a waterfall model that is a traditional project management methodology. However, it has changed from waterfall model to the agile model as the final project delivery method that has overcome the shortcomings of the waterfall model and streamlined the entire process. It can be seen from the case study that the financial implications are negligible; however, it can be found that there is lasting damage to the company's image and brand equity
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