Junk Van Essay

924 Words Apr 17th, 2014 4 Pages
1-888-Junk Van Executive Summary
This case study examines issues associated with virtual businesses. In an effort to reduce costs, the founder, Kingo, creates a virtual business model that significantly reduces the need for overhead costs, such as office space. Employees work remotely and via electronic connections. Although this promotes a flexible work environment, the lack of a physical structure creates some issues. As the business grew, so did customer service errors and issues, causing the company to lose sales. Kingo decided the company needed a more sophisticated yet affordable IT system to capture the great amounts of customer and account information his company was gathering. The case goes on to identify and discuss the
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The case mentions that this system has maximum transparency and that might even cause confidentiality issues. Also, the company would be dependent on this service, if Goggle decided to stop offering this service or charge for it, which could adversely affect this JUNK business. Google also offers little vendor and customer support.

A fourth option would be the Platform as a Service route. This option could be expensive and could warrant a dedicated IT position. It would provide a platform hosted by a third party that the company could augment using common and unique applications. Kingo also may be able to alter the database himself or with minimal IT service as the systems needs change with the growing business. It would also allow the company to convert to a cloud system.

Finally, the company could choose an Enterprise Resource Planning System (ERP). This option is the most unattractive for Kingo because of the cost and extensive resource allocation. The systems offerings do not match up with Kingo’s needs, offering many serves he does not need.


The recommendation for JUNKVAN is to use the Platform as a Service model to solve its current IT issues. This allows the company to meet all of Kingo’s wishes for the new system, such as automated emails and remote access to the database. This system is a more expensive than several of the other options, but this comes with the ability to

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