Read Case Study IV-3, “IT Infrastructure Outsourcing at Schaeffer (A): The Outsourcing Decision,” in Managing Information Technology.
Write a 1,050- to 1,400-word (3- to 4-page) paper that provides a recommendation for how Schaeffer’s corporate management should proceed on the task force results. Include the following:
Identify the business issues leading Schaeffer to consider outsourcing.
Identify the specific risks and benefits to the proposed outsourcing proposal.
Identify the roles and resources associated with an outsourcing proposal.
Include supporting rationale for the recommendation.
Include any operational metrics involved in Schaeffer’s decision.
Provide research and references to support your recommendations.
Click the Assignment Files tab to submit your assignment.
INSY 2299 Information Systems Fall 2016
Information Systems Deliverable
Due Date: Tuesday, November 22, 11:00 PM ET
The policy on late assignments is stated in the syllabus.
This is a GROUP project that you should prepare and submit jointly with your CC group.
Submission Requirements (one person uploads both components to Blackboard for your group):
Part One: The Excel Workbook
Part Two: The Word Document
Note: If you divide the various tasks among team members there are some natural ways to do so make sure that the final Document and Workbook you submit are complete, consistent, and coherent. Everyone on your team should review both components of the submission.
The grading criteria are found at the conclusion of this document.
PART ONE: DATA ANALYSIS AND CHARTING
Submit a Microsoft Excel Workbook containing the following 4 sheets:
“Documentation”: Contains the names of all group members, your section (e.g., LWA), and your CC company.
“Stock Prices”: produced in Step 1 below
“Stock Plots”: produced in Step 2 below
“Scatter Plots : produced in Step 3 below
Be sure to name your sheets as stated above. While working on your analysis you may create more worksheets than these. Delete all the unnecessary worksheets and leave only the final results listed here. For instance, to complete Step 1, you will be downloading at least three worksheets along the way. Do NOT include all the worksheets. Include only one final worksheet that integrates the information required.
Hint: In Part One you will be creating charts and interpreting them. It is easy to misinterpret charts. For each chart, you should discuss your analysis and conclusions as a group.
Step 1: ETL (Extracting/Transforming/Loading) Data
Step 1 involves two simple examples of ETL which is the necessary first step for Business Analytics. You will extract data from third-party sources, transform the data in a desired form, and then load the data into your software application. Specifically, you will extract data about your CC company from Yahoo! Finance (http://finance.yahoo.com) manipulate the data, and then load them into Microsoft Excel.
First, enter your CC Company’s stock symbol at Yahoo! Finance in the empty box at the top left. Next, retrieve historical prices by clicking the Historical Prices link on the left navigation bar. You want to retrieve data from January 1, 2011 to December 31, 2015 in monthly intervals. This means you will have 60 stock prices for your company. For this analysis, you only need the Adjusted Closing Price,” but you can download more if that is easiest. Find a way to extract these data and load them into Excel. (Hint: For most companies, you can either find a link to download the data to a spreadsheet or you can copy and paste.)
Next, identify one of your company s major competitors. You can use a competitor you have already identified as part of your work on the Consulting Challenge in other courses or you can click on Competitors on the left navigation bar in Yahoo! Finance. Download historical prices for this competitor by repeating the steps above. (Note: Some of your competitors may not have gone public from 2011. Be sure to choose only those that were public companies since 2011.)
Choose to compare your company s performance with either the Dow Jones Industrial Average or the NASDAQ Composite Index. Choose whichever index would be a more appropriate comparison for your company. For the index you choose, extract and load into your spreadsheet the “adjusted close” for the same 60 months for that index. This should not be difficult but you may need to think a little bit or hunt around the site to find it.
Note: We are using the adjusted close because some of your CC companies may have had stock splits during or after the time period we are focusing on.
Now copy and paste the data you have downloaded into a single spreadsheet with 61 rows (60 monthly data points plus a title row) and the following 4 columns:
Adjusted Closing Price for your company
Adjust Adjusted Closing Price for your competitor
Adjusted Closing for the DJIA or NASDAQ.
Be sure to match correctly the dates across the three companies and the two indexes.
Step 2: Charting and Analyzing the Stock Price Data
(1) Generate a Line Chart in Excel comparing your company with your competitor in terms of their stock values (that is, their adjusted closing stock prices). Format and label the chart appropriately for readability (but do not over-format). In particular, you may find that the default formatting for 60 data points is not ideal and that you need to change the intervals.
Place a large text box beneath the chart discussing the comparison of your company s stock performance with that of its competitor. Your text should contain no more than 200 words. It may include more than one paragraph.
(2) Generate a Line Chart comparing your CC company’s stock with the index you chose (DJIA or NASDAQ). Note: Think about why this might be tricky and devise a way to overcome the problem. You may want to explore some features of Excel Charting to do this.
Place a large text box beneath the chart discussing the comparison of your company s stock performance with the index you chose (DJIA or NASDAQ). Your text should contain no more than 200 words. It may include more than one paragraph.
Step 3: Checking for Correlations Using Scatter Plots
Use the 60 months of data from Step 1 to create a Scatter Chart (one with markers but NO LINES is likely to be the most effective type) to examine the relationship between your company s stock price and its competitor s stock price. Create an empty Scatter Plot and then in the “Select Data” dialog box, on the left side, you will need to add the appropriate data. For each Scatter Chart, your competitor s stock price will be the “Series Y Values” (on the vertical axis) and your company s stock price will be the “Series X Values” (on the horizontal axis). You can leave the “Series Name” box blank. Be sure that the chart has a meaningful title and that the horizontal and vertical axes are well labeled. If you do this well, you will not need a legend on this chart.
A scatter chart shows the relationship between two variables. In this case, those variables are (a) your competitor s stock price and (b) your company s stock price. A steep upward slope means that a higher value of the variable on the X axis corresponds to a higher value of the variable on the Y axis during the period you analyzed. A steep downward slope means that a higher value of the variable on the X axis is associated with a lower value of the variable on the Y axis. A relatively flat line, or widely scattered points without a pattern, would suggest that there is not much of a relationship between the two variables.
Place a large text box beneath the Scatter Plot discussing what your plot tells you about the relationship between the two variables. Your text should contain no more than 200 words. It may include more than one paragraph.
PART TWO: MONITORING AND CONTROLLING YOUR CONSULTING CHALLENGE RECOMMENDED RESPONSE
Submit a Word Document answering the following questions.
A critical component of your Recommended Response to the Consulting Challenge is defining how you will monitor and control the success of your proposal as the company follows the recommended course of action over the next several years.
(1) What will be the key performance measures that will indicate if your Recommended Response is on course What are the target values for those measures
(2) What role will Information Systems/Business Analytics play in monitoring performance and enabling adjustments to the company s behavior as needed More specifically,
a) What data will the company need to draw upon to analyze the performance measures What will be the source(s) of these data Be sure to indicate whether these sources are internal to the company or external. (Hint: Many business issues draw on, and integrate, multiple sources of data.)
b) Which of the Business Analytics tools and techniques that we discussed in class or that are covered in Chapter 15 of Gallaugher will you use for studying the proposal s success and the performance measures Explain why the tools and techniques you plan to use are appropriate.
Here is a quick overview of the tools and techniques to consider:
OLAP and Pivot Tables that is, manipulating multidimensional data cubes.
Data Mining including mining of numeric data, text (for instance, blogs and postings on social network sites), and logs of web traffic (web mining).
Predictive Analytics using statistical techniques to make forecasts about future behavior.
(3) Now, choose one of the Business Analytics tools or techniques you have identified and consider what applications software you will use for the analysis by doing the following (which will require both some research and applying concepts from the course):
a) Identify a software package (other than Microsoft Excel) that you can acquire that will provide the functionality you need.
b) Why did you choose this package That is, evaluate this package briefly with respect to its advantages and disadvantages.