Little Things Dubai Mall Project Charter, Research Paper Example

Project Overview

The below project charter is designed to create an online shopping, store pick up, and home/office delivery service for the “Little Things” craft and art shop, located in the Dubai Mall. The project will cover the costs, stakeholder analysis, feasibility, and stakeholder needs, benefits, in order to provide the interested business with all the information to improve its services and serve its customers better.

Project Description

The fast pace of life in Abu Dhabi today calls for more convenient shopping facilities. Many families and businessmen working in the city do not have time to visit the shops and spend hours looking for the right merchandise. On the other hand, it is evident that Little Things is a store that is located in a busy shopping mall, and – while it stands out – it is unable to reach shoppers who prefer buying goods online. The development of featuring unique items, gift delivery services, and all the merchandise on the internet will benefit the business, and help Little Things capture a market segment it has not been able to reach until now. The project will include the development of an e-commerce website, implementation of social media features, and a shopping cart/shipment facility that allows customers to purchase the selected goods online.

Business Needs

The Little Things gift store has a unique position in he Abu Dhabi market, and it serves a niche market of customers who are looking for unique items. Located in a shopping mall, where most customers go to purchase brand fashion items or eat out is limiting the store’s ability to reach all potential customers. In order to increase the brand awareness and sales, the company needs to reach out to customers and connect with them on a personal level through various channels, such as social media, online store, and excellent service, including home delivery and store pick up.
Expected Benefits
After developing the online shopping facilities, it is expected that the company will be able to benefit from
• larger customer base
• better connection with shoppers
• increased marketing opportunities
• increased sales
• greater brand awareness in Abu Dhabi

Project Scope

The project will involve creating an e-commerce website for Little Things Dubai. It will include the development of the site, systems to upload images and prices in the online store, integrating a safe shopping cart system, and providing delivery options for customers. Quotations will be obtained for web development, shopping cart software, and delivery of goods. Further, social media marketing and branding campaigns will be attached to the project, and these will incur additional costs, which will be evaluated during the planning phase.

Objectives

• to increase brand awareness among Abu Dhabi customers
• to improve customer service
• to increase sales of goods and avoid having stock in store for a long time
• to increase sales of goods and customer base

High-level Requirements

• Obtaining a website address for the store
• Development of e-commerce website
• Implementing safe shopping cart
• Integrating store software with online applications, to send notification for manager and the shipping company
• Automating customer data retrieval and communication

Major deliverables

• Customer needs assessment
• Website address (domain) acquisition and choice
• Selecting web development company
• Choosing shopping cart software
• Adding extra security layers
• Evaluating shipping companies
• Selecting shipping company
• Developing website
• Integrating site with social media and existing store systems
• Testing the system
• Implementing online shopping

Project boundaries/exclusions

Delivery of high value items creates an increased risk, therefore, large and valuable items will be requiring careful packaging and insurance of delivery. This might increase the delivery price for customers. However, many shoppers would still choose to get the gift or art items securely delivered, instead of taking care of the shipment themselves. Online payments made through credit card would need to be cleared before the delivery takes place, as customers have the ability to cancel the transaction and still get the item delivered. Home delivery will not be available for made to order items; these items will need to be picked up by customers and the a “satisfaction statement” needs to be signed in store. However, customers can still choose to arrange delivery after they signed this agreement and paid for the item.

Estimated Project Duration

The project is estimated to take 8-10 months from planning to implementation. The duration will include the testing period, customer satisfaction survey analysis, and making necessary changes to the system.

Timeline

The project framework will move along the below timeline in order to ensure timely delivery of the final facilities for customers. A project manager (appointed by the store manager) will be assigned the task to negotiate with service providers, complete customer surveys, and evaluate related legal and business regulations in Abu Dhabi.

Major milestones

It is crucial to set deadlines for all major milestones in order to keep the timeline above and ensure that the project is implemented in an effective and cost-effective manner.
1. The evaluation of suppliers and selection of web development, shipping, and shopping cart companies needs to be completed by the 31st of January 2015. This is the foundation for the next phase of the project, and without knowing which companies Little Things is intending to work with, the development phase cannot be completed.
2. Evaluating customers’ needs is the next phase, as the development of online shopping and ordering systems will need to be tailored to the needs of the market.
3. The fully functional test version of the website, with shopping cart integration needs to be running by the 31st of May, in order to proceed to the next phase: testing.
4. Testing of the system for security, reliability, and compliance needs to be completed by the 31st of August, so that the online shopping facility can be running by the 30th of September.
5. The fully operational web-based online shopping system will be running by the 30th of September.

Budget Estimate

One-time project costs:

The one time project cost is estimated at AED12,000, including the development of the website, domain name purchase, shopping cart facility, and integration into current sales software. The cost of domain name is estimated at AED$150, while the development of the site and implementation of shopping cart will make up mos of the remaining cost. The customer surveys will be administered in store, at a low budget of $500, including analysis of results. No project manager needs to be recruited, therefore, human resources costs associated with the project will be based on potential overtime payments.

Recurring costs:

Cost categories: a. Site maintenance (AED500 per month) including uploading prices, images, updating software, and security, and photography
b. Subscriptions: shopping cart software, hosing, and security software, email communication automation software (auto response and auto responder (AED400 per month)
c. Supplier costs: cost of shipment for customers (variable based on volume)

Project Assumptions, Constraints, and Risks

Assumptions

The basic assumption of the project sponsor is that by extending the operation of the store online, Little Things will be able to increase its brand reputation, sales, and customer satisfaction. Further, the project is expected to deliver faster turnaround of the stock, increasing the liquidity of the company, making it possible to rotate and turn around stock in a shorter period of time.

Constraints

Some of the constraints identified, based on the review of related shopper surveys is that many customers would like to see and touch art or craft items before they purchase it. This constraint is extremely relevant to high value, unique items. However, customers could still choose to visit the store, look at the items, make a decision at home, visiting the website with the photo and price, and place an order securely through the internet. They can still save one trip to the store, and get the items safely delivered.
Risks

The main risks associated with the project lie in website security and shipping companies’ compliance. While the quality of items will be guaranteed by Little Things, once it is out for shipment, it is the shipping company’s responsibility to deliver it safely and in a timely manner. Insurance cover would be optional, therefore, the cost of items getting lost or damaged during delivery would need to be covered by the store, if the customer does not purchase insurance. Site security risks are also significant. Given the fact that the store usually sells high value, unique items, the security of online transactions needs to be tight. Finally, customers paying by credit cards could have their plastic declined, or might cancel the transaction after delivery, which would create conflict and dispute between the company and the customer. This, in turn, could damage the reputation of Little Things.

Project Management Plan

Little Things, located in The Dubai Mall, and is “a specialized shop in unique and exclusive gifts” (Little Things, 2014). It stores unique art and craft items from artists all around the world. Set in a busy shopping center, it is conveniently located, however, many customers have limited amount of time and decide not to visit the store in person to browse through the selection. Creating a website with online shopping facilities, and either home delivery or step pick up services would increase the reach of the company and allow Little Things to attract new customers who prefer buying gift or decoration items in the comfort of their office or home.

Project Scope Management

Project overview

The project will involve the implementation of online shopping and delivery facilities in the current sales funnel of Little Things arts and crafts store in Abu Dhabi, Dubai Mall. The implementation of the project is expected to increase the reputation of the store among residents of Abu Dhabi, and increase sales, expanding customer base to online shoppers. According to Saxena (2011, p. 7), “transitioning a traditional retail business toward a multi-channel retailing environment poses benefits for both the organization, as well as its customers”.
Operational feasibility analysis

The shipping and retail infrastructure in Abu Dhabi is well developed, and there are several companies offering services for delivering merchandise from stores directly to customers. Further, online shopping would not create increased workload for store workers, however, it has the potential of increasing the number of purchases in total, and I is possible that over time extra staff would need to be employed to manage deliveries, negotiate with shipment companies, and online customers. Given that the domain name “LittlethingsUAE.com” is currently available for sale, and there are several cost-effective web developing companies located in Dubai, the project seems feasible and potentially profitable.

Project stakeholders

Customers

Customers in Abu Dhabi are looking for more convenient ways to buy merchandise. According to the Euromonitor International report (Kasriel-Alexander, 2014), the percentage of people shopping online in the Middle East region is rapidly increasing year by year. Saxena (2011) created a research based on customer behavior in the UAE related to online shopping. Indeed, the 2011 research of the author showed that 54 percent of respondents have shopped online. This indicates that customers are ready to buy items through internet channels, and there is a demand for the online ordering and delivery service.
Store management

The store management will be able to increase sales, and rotate products in store quicker. This means that the same items will not be available in store for a long time, which will create a sense of urgency among customers, who are looking to buy a particular item. The turnover will be increased, while no additional staff will be required to complete the sales.

Store Staff

For the staff working at the store, the implementation of the project will increase workload, as they will be required to negotiate delivery times, costs, check orders placed online, arrange delivery, and call customers. However, this will also make their job more versatile and interesting.

Delivery Companies

Delivery companies selected will be able to secure business through delivering the goods purchased in store or on the website of Little Things. However, in order to be successful in the application process, companies will need to hold or take out extra liability insurance, given the high value of unique art items that the company is trusted with. This would increase their operations costs.
Web service providers and developers
In Abu Dhabi, several companies provide cost-effective web development, and it is likely that the project will attract several bids from service providers. Creating an online store, however, would potentially create a challenge for several companies, still many would like to take part in the project in order to increase their reputation and build up their portfolio.

Competition

Abu Dhabi based companies will potentially see the new shopping facility as a threat. One of the main competitors identified is Edat Shams (http://edatshams.com/), a store that offers a contact form for customers to order and buy items featured on the website. However, the page does not have an online shopping cart software implemented. Further, the home items section of the Aura B retailing company (http://www.aura-b.com/display-pieces-c-10_119_133) has been identified as a competitor, with a wider product range than Little Things, but an already implemented online shopping facility.

Regulators

The consumer protection regulations of the United Arab Emirates need to be considered when designing customer service and distance sales facilities (Federal Law No 24, 2006). The law regulates customer complaints and through the Emirates Society for Consumer Protection, return of items, price display, label information, and fair competition practices (Arab Center for the Development of the Rule of Law, 2008).

Project Time Management

Work breakdown structure

1. Purchasing domain name LittlethingsUAE.com
2. Assigning project manager
3. Supplier and customer research
4. Choice of service providers
5. Regulatory checks
6. Web development and integration of current sales systems
7. Test phase of web operation
8. Full implementation

Narrative plan – Earned Value Management

The return on investment will depend on various factors, therefore, the completion of an earned value management assessment is necessary. As it has been previously identified, the planned value (PV) of the project is AED12,000. This figure needs to be compared with the actual cost of the implementation (AC). The final cost of the project will depend on different variables; on-time delivery, final cost of services, and research. Finally, after implementation, the company will also need to calculate the completed planned and completed annual figures to calculate the earned value over time. It is evident that the faster the company is able to implement online shopping, the earlier it can expand its customer base and sales. Consequently, the return on investment is in close correlation with the time spent on project development and implementation.

Project Cost Management

Budget:

The budget for the project will be broken down to different tasks and elements, in order to make financial management simpler.
Earned value management
Earned value analysis will be completed in three different phases of the project: after the development of the website, after the testing phase, and upon successful implementation of the online facilities. Schedule variance (SV), cost variance (CV), schedule performance index (SPI), and cost performance index (CPI) will be evaluated and recorded throughout the project’s three phases. At every stage, the project manager will determine two variables: estimate at completion (EAC) and estimate to complete (ETC) for the remaining work.

Project Risk Management

Risk Priority

The first priority will be compliance with current regulations. Regarding online sales, it is important that the site clearly displays all information prior to customer contact, and prices are visible.
The second priority risk will be based on customer safety. Ensuring that firewall on the server, website, and safe encoding systems work according to their purpose all the time is important to protect customers’ personal information and financial data.
Secure transaction reporting is also a risk, and it needs to be addressed. Several credit card companies offer consumer protection that allows customers to cancel the transaction after they receive the goods.
Finally, liability and insurance risks need to be addressed by both Little Things and shipping companies that act as contractors, in order to reduce the risk of potential financial loss resulting from items being damaged or lost.

Integration Risks

There is a risk that the existing sales systems and software would not be compatible with online reporting. This would potentially cause poor customer service, result in complaints and loss of reputation.
Further, the security system used within the store needs to be aligned with the software used on the website, in order to adequately protect (through encryption) transaction details and credit card numbers.

Project Integration Management

The project manager will be trusted with managing the phases of implementation, appointing employees to securely test the functions of the website and the sales software. The project manager will also be in charge of comparing shipping companies’ proposals, assigning the task of customer survey collection and analysis to team members. Project managers will also – when necessary – assign overtime for employees for testing and training. During the integration phase, written questionnaires will be developed in order to record any problems, potential risks, and progress. These will be filled out by the testing personnel and analyzed by the project manager.

References

Aura B Online Store (n.d.) “Display Pieces”. Retrieved from http://www.aura-b.com/display-pieces-c-10_119_133

Edat Shams. (n.d.) “Online Store”. Retrieved from http://edatshams.com/

Kasriel-Alexander, D. (2014) Top 10 Global Consumer Trends For 2014. Retrieved from http://www.centromarca.pt/folder/conteudo/1005_Top%2010%20Global%20Consumer %20Trends%20for%202014%20v1.pdf

Little Things (n.d.) “Facebook Page” Retrieved from https://www.facebook.com/LittleThingsUAE/

National Commercial Law Assessment Report of UAE (2008) MENA Commercial Law Strengthening Project MENA – CLS Project. Retrieved from http://www.arabruleoflaw.org/compendium/Files/MENACLS-NationalReport-UAEEn.pdf

Saxena, R. (2011) Shoppers’ Attitude towards online retailing: An exploratory study performed in the context of United Arab Emirates (UAE). Congress. Retrieved from http://www.marketing-trends-congress.com/archives/2011/Materiali/Paper/Territorial/Saxena.pdf