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EXECUTIVE SUMMARY __________________________________________________________________ 3

INTRODUCTION ________________________________________________________________________ 3 STATEMENT OF THE PROBLEM ___________________________________________________ 3 OBJECTIVE __________________________________________________________________ 4

AREAS OF CONSIDERATION: ____________________________________________________________ 4 SWOT ANALYSIS _____________________________________________________________ 4 STRENGTHS VS. OPPORTUNITIES _________________________________________________ 4 STRENGTHS VS. THREATS _______________________________________________________ 5 WEAKNESSES VS. THREATS _____________________________________________________ 5 WEAKNESSES VS. OPPORTUNITIES ________________________________________________ 5 PESTE CONSIDERATIONS ______________________________________________________ 5

CURRENT IT STATUS ___________________________________________________________________ 6 HARDWARE _________________________________________________________________ 6 SOFTWARE __________________________________________________________________ 6 CONNECTIVITY/NETWORK _____________________________________________________ 6 PERSONNEL _________________________________________________________________ 6

ISSP MISSION, VISION, AND OBJECTIVE _________________________________________________ 6 MISSION __________________________________________________________________________ 6 VISION ___________________________________________________________________________ 7 OBJECTIVE ________________________________________________________________________ 7

RECOMMENDATIONS __________________________________________________________________ 7 UPGRADE EQUIPMENT USING EXISTING SOFTWARE _________________________________________ 7 Rationale ____________________________________________________________________ 7 Current Status and Discussion ____________________________________________________ 7 Steps _______________________________________________________________________ 7 Costs and Expenses ___________________________________________________________ 8 Total Economic Cost __________________________________________________________ 9

UPGRADE SOFTWARE USING EXISTING EQUIPMENT _________________________________________ 9 Rationale ____________________________________________________________________ 9 Current Status and Discussion ____________________________________________________ 9 Steps _______________________________________________________________________ 9 Costs and Expenses ___________________________________________________________ 9 Total Economic Cost _________________________________________________________ 10

CONTINUE USING SAME EQUIPMENT AND SOFTWARE _______________________________________ 11 Rationale ___________________________________________________________________ 11 Steps ______________________________________________________________________ 11 Costs and Expenses __________________________________________________________ 11 Total Economic Cost _________________________________________________________ 11

RECOMMENDATION __________________________________________________________________ 11 UPGRADE EQUIPMENT AND SOFTWARE. _________________________________________________ 11 ENROLL IN ONLINE PAYMENT SCHEMES. _________________________________________________ 12

DECISION __________________________________________________________________ 12

IT FUNDING STRATEGIES ______________________________________________________________ 12

IMPLEMENTATION PLAN ______________________________________________________________ 14 ADVOCACY _________________________________________________________________ 14 INFRASTRUCTURE BUILDING, RESOURCE ACQUISITION, AND MANAGEMENT _____________ 14 SYSTEMS DEVELOPMENT AND MAINTENANCE _____________________________________ 14

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RISK MANAGEMENT __________________________________________________________ 15 MONITORING AND EVALUATION _______________________________________________ 15

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EXECUTIVE SUMMARY

SUMMARY OF ENTIRE PLAN

This is a proposal for the upgrade of equipment and software for Cosgayon Law Office to make its operations more efficient and to make its data more secure from theft and loss.

Total cost will be P157,000.00 for the upgrade and US$50.00 per year for offsite backup services. The project will be funded using a mix of company funds and a loan.

INTRODUCTION

This is a proposal for the introduction and implementation of an Enterprise Resource Plan (ERP) for Cosgayon Law Office, a single-lawyer law firm operating out of the Province of Capiz and handling a myriad of cases both within the Province and the neighboring provinces of Iloilo and Aklan and Metro Manila, with online consultation services for clients located in the Philippines and outside the country.

The proposal seeks to update and upgrade existing IT equipment and software to better take advantage of new digital trends and improvements, secure the company from espionage and other online threats to its digital files and critical data, and protect it from data loss. This proposal also outlines the means to finance the project using existing financial data and options.

Due to budgetary constraints, there is only one lawyer handling all cases and legal issues for the Company. He handles a diverse variety of cases, from civil to criminal to administrative cases and even personal matters involving clients. There are two (2) employees in the Company, an Administrative Assistant who handles office work including the interview of clients, internal communications, preparation of documents and ordinary pleadings, schedule management, and other office needs and requirements and an Operations Assistant who handles external matters related to the business of the Company and acts as a liaison with retained clients.

At present, the Company primarily handles cases being heard and pending in the provinces of Capiz, Aklan, and Iloilo but also handles some cases in Metro Manila, Cebu, and Negros. It also accepts online consultation personally or online from as far away as the United States of America, Canada, Australia, and the Middle East, with some clients in Mainland China and Taiwan, Japan, and Indonesia, mostly involving interpersonal relationships, inheritance, and local land disputes.

STATEMENT OF THE PROBLEM

How can the operations of the Cosgayon Law Office be made more efficient and cost effective using Information Technology?

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OBJECTIVE

Implement an IT solution to address the inefficiencies of Cosgayon Law Office, making it more efficient and cost effective.

AREAS OF CONSIDERATION:

SWOT ANALYSIS

Strengths Weaknesses

Efficient and IT knowledgeable staff

Interconnected devices

Streamlined operations

Excellent Time Management system

In house printers and scanners connected via LAN (Paladin Business Center)

Located at the center of the City at the business district

Highly skilled employees

Minimal capitalization

Minimal employees

Voluminous paper records from cases

Too many clients for one lawyer to handle thus needing efficient time management

Ageing and obsolete equipment

Inefficient collection process

Unconsolidated Accounting Process using Excel and Microsoft Money

Limited Office Space

Opportunities Threats

Increasing focus on digital technology by the Supreme Court

Faster computing power, faster wireless communications, and bigger data capacities for mobile devices

Power outages

Espionage

Loss of digital files

STRENGTHS VS. OPPORTUNITIES

The company is an early adopter of new technology, transferring its important files and data to digital format early on, thus making it highly adaptable and versatile in addressing the ever digital world.

The company is not averse to new gadgets and equipment, however, its meagre resources limit the capital expenditure needed to update and upgrade its systems.

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STRENGTHS VS. THREATS

The company has invested in an uninterruptible power supply system to address power outages, however, this system can only provide power for at most 15 minutes after a power outage, enough time to safely shut down all computers, but not enough time to allow work to continue. The company does not have the capital or the resources to invest in a generator, which would allow it to continue work uninterrupted.

The company has a firewall installed in its main server and a built in firewall in its router. Each computer also has its own firewall installed and antivirus and antimalware software installed which are updated frequently.

WEAKNESSES VS. THREATS

The company’s lack of capital to invest in expensive equipment such as generators and security devices, both digital and physical, have hampered its ability to protect itself. This lack has also hindered it from securing proprietary and customized accounting software that would minimize human error and eliminate waste.

WEAKNESSES VS. OPPORTUNITIES

The company’s lack of capital has hindered it from securing updated and upgraded software and hardware that would enable it to fully embrace and take advantage of digital trends and improvements.

PESTE CONSIDERATIONS

Political

The counsel is also a political analyst and election lawyer, participating in election related cases since 1997

2016 national and local elections are in May

Economic

Increasing local income

Increasing taxes

Socio Cultural

Family and friends are given service for free

Referrals from family, friends, and existing clients

Technological

Faster internet

Bigger capacity drives

Faster wireless devices

Cheaper accounting software

Better scanning technology

Online payment schemes like Paypal, Google Wallet, Western Union, Globe and Smart Money

Environmental The thrust of the Supreme Court for electronic means of filing

pleadings will greatly reduce the use of paper and paper products

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Energy efficient equipment

CURRENT IT STATUS

HARDWARE

The company has a single main server running Windows 2000 on the premises, connected by LAN to the onsite workstations consisting of two (2) personal computers being used by the manager and his Administrative Assistant and by Wifi router to the laptop of his Operations Assistant. The company also has a laptop for offsite use.

All staff members are assigned mobile devices that enable them to keep in touch with the manager and each other 24/7 anywhere in the world. The Administrative Assistant and Operations Assistant both have smartphones assigned to them by the company while the manager has a smartphone and two (2) tablets for casual offsite work.

SOFTWARE

The main server is running on Windows 2000 Server edition while the onsite personal computers and laptop run on Windows XP. The offsite laptop runs on Windows 7.

All computers have Microsoft Office and other communications software installed.

CONNECTIVITY/NETWORK

All onsite computers are interconnected by local area network (LAN) through the WiFi router to the main server and the offsite laptop is connected via cloud servers to the main server so that files and data are accessible anywhere there is an internet connection.

All computers come installed with communications software such as Yahoo Messenger, Skype, Viber for PC, RealPop for internal communications, email clients, Evernote for note sharing, and Dropbox and Google Drive for cloud file sharing.

PERSONNEL

The company has two (2) employees, an Administrative Assistant who is in charge of interoffice operations and communications and an Operations Assistant who acts as a liaison to the clients of the company. The manager acts as the Database Administrator, Systems Analyst, and IT Technician.

ISSP MISSION, VISION , AND OBJECTIVE

MISSION

To provide efficient and cost effective legal services to clients while maintaining security of date from theft and loss.

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VISION

To use Information Technology effectively in delivering legal services to clients.

OBJECTIVE

To provide a streamlined approach to providing legal services, both in person and online with integrated access to all files, regardless of location and to secure sensitive and confidential data from theft and loss.

RECOMMENDATIONS

UPGRADE EQUIPMENT USING EXISTING SOFTWARE

RATIONALE

Upgrading obsolete equipment will increase the efficiency with which tasks are started and completed, reducing systems downtime and lag from waiting for computers to boot up and/or to process calculations needed for accounting and word processing software.

CURRENT STATUS AND DISCUSSION

At present, the Company has the following IT equipment:

Equipment Processor RAM Storage OS 1. Server 2.4 Ghz 8GB 3 TB Win2000 2. PC 3.6 Ghz 4GB 1 TB Win XP 3. PC 2.4 Ghz 2GB 500GB Win XP 4. Netbook 1.6 Ghz 1GB 80GB Win XP 5. Laptop 2.4 Ghz 2GB 120GB Win XP 6. Laptop Intel I5 4GB 240GB Win 7

These were not upgraded to Vista or the later versions of Windows because their processors could not handle the requirements for these newer operating systems and also because of privacy and infection issues which were not addressed.

The Company also needs to invest in a digital backup system for its paper files and in data protection services with an onsite file backup system and an offsite cloud service for its sensitive files.

STEPS

o Determine minimum system requirements o Canvass prices from computer sellers and retailers, both on site and online o Include cost of installation of equipment and software to cost o Include downtime needed for new system to be set up and staff to be

familiarized with the system

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COSTS AND EXPENSES

o Minimum system requirements

Equipment Processor RAM Storage OS 1. Server Xeon 6 Core 1.6 Ghz 64 GB 5 TB Win Server 2016 2. PC Intel I5 8 GB 2 TB Win 10 3. PC Intel I3 8 GB 1 TB Win 10 4. Laptop Intel I5 4 GB 500 GB Win 10 5. Laptop Intel I3 4 GB 500 GB Win 10 6. Multipurpose

Printer and Scanner

7. File Backup System

1TB

o Canvass Prices including cost of installation

Prices of computer systems from local and online computer retailers were acquired and the following were their prices for supplying the equipment, installing the software, installation of the equipment, and training of the personnel:

Store Equipment Software Installation Training

B and E P142,000.00 Free1 Free Free

Clipdata P145,000.00 Free Free Free

PC Express P129,000.00 Bundled2 P5,000.00 P5,000.00

Lazada P123,000.00 Bundled P5,000.00 P5,000.00

BackBlaze P2,500.003

OpenDrive P2,500.00

o Downtime from installation

The time period needed to install the new systems, physically install the network equipment, and configure the system to specifications varied from provider to provider, with the average downtime pegged at 3 days. Online providers do not install and configure the equipment and thus additional cost for these is required, on average costing P5,000.00 and lasting for 5 days to install, configure, and test systems.

This does not include the time needed for the migration of analog paper files to digital format by scanning.

1 Licensed software of own choice, including OS, Microsoft Office and other programs 2 Licensed OS only 3 $50 at P50 to the USDollar

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TOTAL ECONOMIC COST

Store Equipment Downtime Total

B and E P142,000.00 P15,000.004 P157,000.00

Clipdata P145,000.00 P15,000.00 P160,000.00

PC Express P134,000.00 P25,000.00 P159,000.00

Lazada P128,000.00 P25,000.00 P153,000.00

BackBlaze P2,500.00 P2,500.00

OpenDrive P2,500.00 P2,500.00

UPGRADE SOFTWARE USING EXISTING EQUIPMENT

RATIONALE

The existing equipment is obsolete, with both PCs and two (2) laptops running on Windows XP and the latest purchase running on Windows 7. Upgrading equipment and software to meet current technology demands is necessary for a faster and more efficient workplace environment.

CURRENT STATUS AND DISCUSSION

Equipment Processor RAM Storage OS 1. Server 2.4 Ghz 8GB 3 TB Win2000 2. PC 3.6 Ghz 4GB 1 TB Win XP 3. PC 2.4 Ghz 2GB 500GB Win XP 4. Netbook 1.6 Ghz 1GB 80GB Win XP 5. Laptop 2.4 Ghz 2GB 120GB Win XP 6. Laptop Intel I5 4GB 240GB Win 7

STEPS

o Determine minimum requirements of highest possible software upgrade o Determine if existing system can support new software o Costs of software licenses o Determine downtime in terms of installation and staff familiarization

COSTS AND EXPENSES

o Recommended minimum system requirements

4 Average income per day pegged at P5,000.00

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Software Processor RAM Storage

Windows Server 2012 4 Ghz 2 GB 40 GB

Windows 7 1 Ghz 1 GB 16 GB

Windows 8 2 Ghz 2 GB 16 GB

Windows 10 2 Ghz 4 GB 16 GB

Microsoft Office 2016 2 Ghz 4 GB 3 GB

Quickbooks 2 Ghz 4 GB 1GB

o Cost of Software

Software Microsoft Lazada B and E Clipdata

Software P7,500.00 P7,500.00 P8,000.00 P8,000.00

Downtime P11,000.00 P11,000.00 P12,000.00 P12,000.00

Total Free Free Free Free

o Downtime

Software B and E Clipdata

Windows Server 2012 2 days 2 days

Windows 7 1 day 1 day

Windows 8 1 day 1 day

Windows 10 1 day 1 day

Microsoft Office 2016 .5 day .5 day

Quickbooks .5 day .5 day

Total 4 days 4 days

Installation, reconfiguration, and customization for Microsoft and Lazada were outsourced and was estimated at double the time estimate given by local retailers.

TOTAL ECONOMIC COST

The existing equipment cannot handle higher versions of Windows Server software and operating systems, thus only Windows 7, Microsoft Office 2016, and Quickbooks were considered.

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Store Software Downtime Total

B and E P20,000.00 P20,000.005 P40,000.00

Clipdata P20,000.00 P20,000.00 P40,000.00

Microsoft P18,500.00 P40,000.00 P38,500.00

Lazada P18,500.00 P40,000.00 P38,500.00

CONTINUE USING SAME EQUIPMENT AND SOFTWARE

RATIONALE

While inefficient and time consuming, current equipment has served the Company well over the years.

STEPS

None

COSTS AND EXPENSES

None

o Cost of Software

None

o Downtime

None

TOTAL ECONOMIC COST

It is difficult to compute the opportunity loss for the Company by not acquiring better equipment and facilities.

RECOMMENDATION

UPGRADE EQUIPMENT AND SOFTWARE.

While more expensive, the Company will eventually need to replace its obsolete equipment to comply with Supreme Court standards and regulations on electronic pleadings and processes.

5 Average income per day pegged at P5,000.00

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Also, the existing computer system of the Company is inefficient, with data being entered in one application then transferred to a database without synchronization between databases.

Further, there are no digital backups to the sensitive files of the Company, leaving it vulnerable to fire and other natural calamities, not to mention physical intrusions into its office for espionage or sabotage purposes.

ENROLL IN ONLINE PAYMENT SCHEMES.

The Company handles cases for clients here and abroad. Availing of a credit or debit card payment facility via Paypal will allow these clients to fulfil their monetary obligations tot he Company even without physically visiting the office.

A credit card facility was suggested for onsite payments, but the minimum monthly transaction value of P100,000.00 is above what the Company makes in a month and a facility was not granted.

DECISION

Upgrade Equipment and Software using B and E Computer Systems at a total cost of P157,000.00 and from BackBlaze for US$50.00 per year.

IT FUNDING STRATEGIES

Funding the different projects discussed in this proposal will revolve around the following assumptions and principles:

Financial a. Company cash flow will be stable for the following year b. No urgent and massive capital expenditures will be needed within the next 6

months c. There are ready sources of financing for the company

IT a. No major developments in technology will occur in the next 12 months b. Support for existing technology will continue from its developers

The cost for the entire project amounts to PESOS ONE HUNDRED FIFTY SEVEN THOUSAND (P157,000.00) ONLY for hardware and software and an additional US$FIFTY ($50.00) ONLY per year for cloud offsite backup services.

The Company’s financial statements for the year 2015 show that it can fund only a quarter of the capital requirements using its cash in bank.

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MARCELO AUGUSTO A. COSGAYON

Arnaldo Boulevard, Roxas City, Capiz

BALANCE SHEET

As of 31 December 2015

With comparative figures for the year ended 2014

Current Year Previous Year

Current Assets:

Cash

P 65,571.92 P 78,146.92

Office Supplies

P 200,000.00 P 130,000.00

Total Current Assets

P 265,571.92 P 208,146.92

Property and Equipment:

Books

P 50,000.00 P 50,000.00

Office Furnishings and Equipment

P 50,000.00 P 50,000.00

Total

P 100,000.00 P 100,000.00

Less: Accumulated Depreciation

P 100,000.00 P 100,000.00

Net Property and Equipment

P - P -

Total Current Assets

P 265,571.92 P 208,146.92

LIABILITIES & NET WORTH

Liabilities:

Debts

P 150,000.00 P 260,693.00

Net Worth:

Capital Beginning

P 208,146.92 P 184,535.80

Add: Net Income

P 57,425.00 P 23,611.12

Total

P 265,571.92 P 208,146.92

Less: Drawings

Present Net Worth

P 265,571.92 P 208,146.92

Total Liabilities and Net Worth

P 265,571.92 P 208,146.92

INCOME STATEMENT For the year ended 31 December 2015

(With comparable figures for the year 2014

Current Year Previous Year

Income:

Professional Fees

P 238,933.00 P 248,831.00

Income from other sources

Total Income

P 238,933.00 P 248,831.00

Less: Operating Expenses

Salaries and Wages

P 62,000.00 P 62,000.00

Taxes, Licenses, Subscriptions

P 24,658.00 P 23,857.60

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Light and Water

P 16,285.00 P 15,528.00

Telecommunications

P 9,600.00 P 9,600.00

Office Supplies

P 12,628.00 P 26,857.00

Gas and Oil

P 12,000.00 P 12,000.00

Rental

P 31,350.00 P 36,000.00

Office Expenses

P 12,987.00 P 5,987.00

Total Operating Expenses

P 181,508.00 P 191,829.60

Net Income

P 57,425.00 P 57,001.40

The remaining balance may be secured using a loan with a financing institution or instalment terms with local retailers.

IMPLEMENTATION PLAN

The Strategic Information System for Cosgayon Law Office will be implemented as follows:

ADVOCACY

The Company is staffed with tech savvy individuals who are accustomed to adopting new technology and are not averse to change. The adoption of a new system for its processes will not be resisted, especially with top management adoption of new and better technology.

INFRASTRUCTURE BUILDING, RESOURCE ACQUISITION, AND

MANAGEMENT

The existing infrastructure of the company can not handle the ERP system, thus requiring the acquisition of new equipment consisting of a server mainframe to store all the pertinent data, connected via wired local area network to the other computer systems. The system shall also require the synchronization of data with offsite computers such as the mobile laptop, the home office laptop, the cellular phones of the employees, and other mobile devices which shall all be connected wirelessly to the main server.

The main server shall be connected to a cloud storage facility, requiring the use of a high speed internet connection from one of the major ISPs.

SYSTEMS DEVELOPMENT AND

MAINTENANCE

Systems development for the first three (3) months of the system shall be done by the software and hardware supplier, taking into account feedback from the end users of the system. The system shall be debugged and refined over the service warranty period, with emphasis on its ease of use by the end users and access to the data by those who need it during the truncated life cycle of the system.

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RISK MANAGEMENT

Risks to the system such as security breaches and loss of data should be analyzed and the appropriate preventive measures taken. Anti virus programs, firewalls, data encryption, and layered access should be installed and implemented to prevent data loss.

An uninterruptible power supply (UPS) should be standard for PCs while a backup generator, although not essential, might prove useful in case of disasters where power outages become common.

MONITORING AND EVALUATION

During the first six (6) months after the implementation of the system, the software and hardware provider shall monitor the system for ease of use and security, making adjustments in the GUI as and when needed, or altering the database for easier access to the database with the minimum use of electronic resources. Continuous and intensive evaluation by end users should be conducted in order to allow the software provider to customize the system to suit the needs of the company.

At the end of the service warranty, periodic evaluation should be made by the software provider to determine the changing needs of the company and to prepare for the installation of a new updated system.