International Trading Enterprises

IT Enterprises is proposing to expand its current printed catalog for cars to include on-line catalog services. Eventually, the printed catalog will be eliminated and the service, which is currently concentrated in the Texas area, will expand to a global presence through the Internet. This fourth phase of the project examines the "make or buy" decision from the point of which (if any) of the company's Internet services should be outsourced to third parties. In addition, the entire itcars.com project is reviewed in light of a cost benefit analysis.

International Trading Enterprises was established in 1985 to help individuals and dealers sell cars, homes, motorcycles and boats. The company is based in Texas, but attracts buyers and sellers from outside the Texas area. The company recognizes that the Internet is an excellent way to expand its business, and that e-commerce will be the way in which businesses and consumers conduct transactions such as this in the future. To that end, the company is researching how to build an Internet presence which meets the needs of the company as well as the needs of its consumers, and which offers a profitable solution to the company's expansion goals.

ITE will not be the first Internet company to provide a car-finding service (the company has determined that the car catalog will be the first to go on-line); Auto Trade and other sites such as luxurycars.com are already on the Internet. How

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ny "canned" software can provide and will require both a dedicated staff as well as proprietary software in order to address the site's unique needs. There are literally thousands of Web developers who would be anxious to be a business partner with itcars.com in developing its Web site. Web developers can range in price from $35 per manhour to more than $150 per man-hour (Tinnirello, 2000, p. 75). Once the site is complete, it will need to be updated regularly with both content and new features. This means an ongoing relationship with whoever does the Web development, which will mean high costs if the software is developed outside the itcars.com organization. Based on the work done in the earlier phases of this project, it is estimated that an initial site can be up and running within 2000 man-hours, putting the low-end cost at $70,000 for initial development, and the high-end cost at $300,000 (using $35 and $150 for per-hour estimates). Support Center/IT Staff The Webmaster will have a master's degree in Engineering with an emphasis in computer science; the Webmaster's assistant will have a bachelor's degree, also in computer science. These two individuals will be responsible for ensuring that the site is maintained pr

Category: Business - I