Meyers Norris PennyMeyers Norris Penny

Diana WatermanDiana WatermanAlex GerlyandAlex Gerlyand

Bilal RanaBilal RanaAdeyemi AdewumiAdeyemi Adewumi

Roberto FurlettiRoberto Furletti

Practice Management SystemPractice Management System

OutlineOutline

Company Overview/HistoryCompany Overview/History The ProblemThe Problem Information Aspect of the ProblemInformation Aspect of the Problem IT/IS Aspect of the ProblemIT/IS Aspect of the Problem AlternativesAlternatives Analyses of AlternativesAnalyses of Alternatives The Preferred SolutionThe Preferred Solution Key messages for leadersKey messages for leaders

Board RoomSetting

Overview/HistoryOverview/History Est. 1945 Brandon, MBEst. 1945 Brandon, MB Accounting and Advisory ServicesAccounting and Advisory Services

Strategic service expansion in 2000 towards consultingStrategic service expansion in 2000 towards consulting As of 2001As of 2001

~75 full and PT Offices (BC to Ontario)~75 full and PT Offices (BC to Ontario) ~1000 employees -135 Partners, 900 staff~1000 employees -135 Partners, 900 staff Ranked 7 in CanadaRanked 7 in Canada

TodayToday 2200 employees2200 employees

Financially healthy – 10x growth last several years (case date)Financially healthy – 10x growth last several years (case date) 2000 – $70 M in Revenues (40% over previous year)2000 – $70 M in Revenues (40% over previous year) As at 2001 more growth and expansion forecast in non-traditional As at 2001 more growth and expansion forecast in non-traditional

services (i.e. IT Consulting)services (i.e. IT Consulting) **Reputation as an Innovator in technology with a pioneer spirit**Reputation as an Innovator in technology with a pioneer spirit

Developed in-house PM solution second to none in the periodDeveloped in-house PM solution second to none in the period

The ProblemThe Problem

MNP is faced with the decision of MNP is faced with the decision of whether to replace the whether to replace the company's PM system with a PC based system or company's PM system with a PC based system or continue to upgrade the existing VAX system as needs continue to upgrade the existing VAX system as needs arisearise

Both an operational and strategic issueBoth an operational and strategic issue OPS – maintaining obsolescenceOPS – maintaining obsolescence

Client service applications run in the PC environmentClient service applications run in the PC environment Administration applications run in the VAX environmentAdministration applications run in the VAX environment

STRAT – Future growth of MNP and add’l needs ***STRAT – Future growth of MNP and add’l needs *** IT consulting growth in particularIT consulting growth in particular

Information Aspects of ProblemInformation Aspects of Problem

MNP 100% dependent on IT based infoSystem performance is key to operationsReal-time or “near” real time info has

shown to be important factori.e. Time sheet accuracy/timeliness

Information quantity is assured to grow over time – MNP plans on growing. (Since the writing of the case, they have expanded further west into BC)

IT/IS Aspects of the ProblemIT/IS Aspects of the Problem

System scalability and flexibility key to MNP growth strategy

IT/IS system trends in the marketplace – related to obsolescence management

MNP as an InnovatorStaffing, technical and logistic difficulties of

running on two platforms

Meyers Norris Penny Meyers Norris Penny Executive Meeting AgendaExecutive Meeting Agenda

WelcomePractice Management System

PresentationOther Business Adjournment

Alex VAX OptionAlex VAX Option

ProsPros Our system has transcended beyond VAX The customized VAX based system has been a role-

model in the industry The VAX based PM application is part of our

competitive advantage Easy system upgrades Developing and migrating to a PC based platform will

be expensive

Alex VAX OptionAlex VAX Option

ConsConsLess intuitive for users system than a PC

based systemImpending VAX obsolescence

VAXVAX

VAXVAX

VAXVAX

ConsConsVAX system at end of lifecycle.VAX system at end of lifecycle.

VAX unable to support growth plans.VAX unable to support growth plans.

General migration toward PC platforms.General migration toward PC platforms.

Bilal - VAXBilal - VAX

S-CurveS-Curve

VAX

PC

Bilal - PC OptionBilal - PC Option

ProsProsBy acting proactively, we won’t be caught off-By acting proactively, we won’t be caught off-

guard dealing with the sudden obsolescence guard dealing with the sudden obsolescence of our VAX infrastructure. of our VAX infrastructure.

As early adopters of new technology, by the As early adopters of new technology, by the time the technology matures, MNP will have time the technology matures, MNP will have developed some expertise in it.developed some expertise in it.

Existing functionality can be ported into PC Existing functionality can be ported into PC environmentenvironment

Bilal - PC OptionBilal - PC Option

ProsProsEvery MNP employee has a PCEvery MNP employee has a PCMNP already largely PC basedMNP already largely PC basedStaff are already accustomed to PC based Staff are already accustomed to PC based

applicationsapplicationsQuality of commercial accounting applications Quality of commercial accounting applications

has improvedhas improved Important & required information is generated Important & required information is generated

by applications designed for PC platforms. by applications designed for PC platforms.

Bilal - PC OptionBilal - PC Option

ConsCons It will take time & investment to customize It will take time & investment to customize

existing commercial applications to existing commercial applications to adequately replace VAX functionalityadequately replace VAX functionality

VAX allows global updates in under 5 VAX allows global updates in under 5 minutes. This is not yet possible with PC.minutes. This is not yet possible with PC.

MNP users satisfied & proficient with VAXMNP users satisfied & proficient with VAX

Decision CriteriaDecision Criteria Allow for continuous innovation Platform must support new client applications and

internal functions Long-term cost to run the system Stability of the system Maintain a Practice Management System Staff Training requirements Ease of ongoing support Must be expandable/scalable Support paperless office environment End user satisfaction

Decision – PC EnvironmentDecision – PC Environment

VAX technology is obsolete – continuing investment VAX technology is obsolete – continuing investment will be costlywill be costly

Provides a platform to continue to innovate into the Provides a platform to continue to innovate into the future.future.

New industry applications run on PCsNew industry applications run on PCs Cost Benefit of migration in the long runCost Benefit of migration in the long run Support for PC environment is less expensiveSupport for PC environment is less expensive Maintaining the skill set for VAX will be difficult as the Maintaining the skill set for VAX will be difficult as the

industry moves away from supporting this platformindustry moves away from supporting this platform All staff currently have a PC or laptop so no add’l All staff currently have a PC or laptop so no add’l

investmentinvestment

VOTEVOTE

MNP SolutionMNP Solution(Info from O’Brien-Moran)(Info from O’Brien-Moran)

PC Environment ImplementedTime and Billing S/W re-written in PC

Customized S/W allowed tailored data gathering and robust data mining capability

Data also used for CRMStandardized work procedures – no need

to re-invent the wheel

Key MessagesKey Messages

Manage Obsolescence – Do not let it manage Manage Obsolescence – Do not let it manage you/your company (S-Curve)you/your company (S-Curve)

IT strategy must be in line with organizational IT strategy must be in line with organizational strategystrategy

Make the change while you can manage the Make the change while you can manage the transition – not when you reach a crisistransition – not when you reach a crisis

If you want to be known as an innovator, you If you want to be known as an innovator, you need to be on the leading edge of that need to be on the leading edge of that technology and ‘technology and ‘Best In Class’Best In Class’ at applying it at applying it