MEMO SCILaid

From: Francois Damba

Date: 09 May 2024

RE: UNIT 6 - TASK 9 – IMPLICATIONS TO OPERATIONAL DESIGN

David Tatlock is impressed with all the work we have done so far to help him consider whether or not a move
to CTP is appropriate, but he still wants to understand how all the pieces come together from an operations
perspective.

1. Can you please critically compare the following three options – stay as is (no change), change to
mobile money, or change to paper vouchers using local shops?

RESPONSE

1. Stay as Is (No Change):

This option maintains the current operational setup without introducing any significant changes. It
implies continuing with existing infrastructure, processes, and systems.
Advantages:
- Familiarity: Since there are no changes, employees and customers are already familiar with the
current operational processes.
- Minimal Disruption: There is no need for extensive training or infrastructure upgrades, leading to
minimal disruption to ongoing operations.
Disadvantages:
- Limited Scalability: The current system may not scale well to accommodate future growth or
changes in demand.
- Potential Inefficiencies: The existing processes may be outdated or inefficient, leading to higher
costs or lower productivity.
- Missed Opportunities: By sticking with the status quo, the organization may miss out on potential
benefits or competitive advantages offered by newer technologies.

2. Change to Mobile Money:

Adopting mobile money requires significant changes to infrastructure, processes, and customer
interactions to support digital transactions.
Advantages:
- Scalability: Mobile money platforms often offer scalability, allowing the organization to handle
increased transaction volumes efficiently.
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- Convenience: Mobile money provides customers with a convenient way to conduct transactions
using their mobile devices, reducing the need for physical cash.
- Cost Savings: Mobile money transactions can be cheaper than traditional banking methods,
reducing transaction costs for both the organization and customers
Disadvantages:
- Infrastructure Investment: Implementing mobile money requires investment in technology
infrastructure, such as mobile payment gateways and secure communication channels.
- User Adoption: There may be resistance or challenges in getting customers accustomed to using
mobile money, especially in regions where digital literacy is low.
- Security Concerns: Mobile money transactions may be vulnerable to security threats such as fraud
or hacking, requiring robust security measures to mitigate risks.

3. Change to Paper Vouchers Using Local Shops:

Operational Design Implications:
This option involves transitioning to a system where customers receive paper vouchers that can be
redeemed at local shops for goods or services.
Advantages:
- Accessibility: Paper vouchers provide a simple and accessible means of conducting transactions,
especially in areas with limited access to banking services or digital infrastructure.
- Community Engagement: Partnering with local shops fosters community engagement and
supports local businesses, potentially enhancing brand reputation.
- Flexibility: Paper vouchers offer flexibility in terms of redemption options and can cater to
customers who prefer cash-based transactions.
Disadvantages:
- Redemption Process: Managing the distribution and redemption of paper vouchers can be
logistically challenging, requiring efficient tracking and reconciliation processes.
- Fraud Risks: Paper vouchers may be susceptible to counterfeiting or misuse, necessitating
measures to prevent fraud and ensure the security of the voucher system.
- Limited Tracking: Unlike digital transactions, paper vouchers may lack the tracking capabilities
needed for detailed transaction analysis or reporting.

In summary, each option presents unique implications for operational design. Staying as is provides
continuity but may limit scalability and innovation. Adopting mobile money offers scalability and
convenience but requires significant infrastructure investment and user adoption efforts. Transitioning
to paper vouchers supports accessibility and community engagement but entails challenges related to
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logistics, fraud prevention, and tracking. The best option depends on factors such as the organization's
goals, customer preferences, technological readiness, and resource constraints.

2. What are the implications to our staffing needs? Would we need more staff / different skills?

RESPONSE:

Transitioning to CTP may necessitate reassessing staffing needs and skill sets. This involves:

1. Resource Allocation:
Determine the required personnel for tasks such as cloud migration, DevOps implementation, security
management, and cost optimization.

2. Skill Identification:
Identify gaps in existing skill sets concerning cloud technologies, DevOps practices, security, data
management, networking, and cost optimization.

3. Training and Development:

Implement training programs to upskill current staff or recruit individuals with the necessary expertise
to effectively manage cloud operations.

4. Role Redefinition:
Redefine roles and responsibilities to align with the new operational requirements of managing cloud
infrastructure and services.

5. Change Management:
Implement change management strategies to ensure smooth adoption of new processes and technologies,
minimizing disruption to operations.

By focusing on operations design, organizations can effectively address staffing needs and ensure they
have the right talent and capabilities to support a successful transition to CTP.

3. What are the implications to our facilities? Would we still need the same number of offices or
warehouses? Would we need different offices or warehouses?

RESPONSE:
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In terms of facilities, transitioning to CTP can have several implications:

1. Office Space:
With a move to cloud services, there may be reduced need for on-premises infrastructure such as
server rooms or data centers. This could potentially free up office space previously dedicated to
housing servers and networking equipment.

2. Remote Work Opportunities:

Cloud-based systems enable remote access to applications and data from anywhere with an internet
connection. This may lead to increased opportunities for remote work, potentially reducing the need
for physical office space or allowing for more flexible office arrangements.

3. Data Center Considerations:

If the organization currently operates its own data centers, transitioning to CTP may eliminate the
need for these facilities or reduce their size. This could result in cost savings and the opportunity to
repurpose or sell unused data center space.

4. Networking Infrastructure:
While physical infrastructure may be reduced, there may still be a need for networking equipment to
ensure reliable and high-speed connectivity to cloud services. This could include routers, switches, and
other networking hardware.

5. Scalability:
Cloud services offer scalability and flexibility, allowing organizations to scale their infrastructure up or
down based on demand. This means that physical facilities may not need to accommodate as much
growth in infrastructure as they would with traditional on-premises systems.

6. Security and Compliance:

Depending on the industry and regulatory requirements, there may be implications for where data is
stored and processed. Some organizations may need to ensure that certain data remains housed
within specific geographical regions for compliance purposes, which could impact facility needs.

Overall, transitioning to CTP may lead to changes in facility needs, including potentially reduced requirements
for on-premises infrastructure and the opportunity for more flexible work arrangements. However,
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organizations should consider factors such as security, compliance, and networking infrastructure when
assessing their facility needs in the context of transitioning to the cloud.

4. What are the implications to our other assets, such as vehicles?

RESPONSE:

Transitioning to CTP can have implications for other assets, such as vehicles, depending on the nature
of the organization's operations:

1. Reduced On-site Support:

With fewer on-premises servers and infrastructure to maintain, there may be reduced need for on-site
technical support visits. This could potentially lead to decreased vehicle usage for IT staff or
technicians who previously traveled to various locations for maintenance and support tasks.

2. Remote Monitoring and Management:

Cloud-based systems often allow for remote monitoring and management of IT infrastructure. This
may reduce the need for physical visits to locations for routine maintenance or troubleshooting,
further decreasing vehicle usage.

3. Data Center Visits:

While transitioning to CTP may reduce the need for on-premises infrastructure, some organizations
may still maintain physical data centers or co-location facilities for certain workloads. In such cases,
there may still be requirements for vehicle transportation to access and maintain these facilities.

4. Focus on Mobility Solutions:

Organizations may invest in mobility solutions to facilitate remote work and collaboration. This could
include providing employees with laptops, tablets, or mobile devices instead of relying on stationary
desktop computers, potentially reducing the need for transportation to physical office locations.

5. Logistics and Supply Chain Management:

For organizations involved in logistics or supply chain management, transitioning to CTP may lead to the
adoption of cloud-based systems for inventory management, route optimization, and logistics planning.
This could impact vehicle usage patterns and transportation requirements for goods and services.
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Overall, the implications for vehicles and other assets will depend on the specific operational changes
resulting from the transition to CTP. While some organizations may see reduced vehicle usage due to
remote work and cloud-based systems, others may still require transportation for certain activities
such as data center visits or logistics operations.

NOTE: At this point, you do not need to try to quantify the impact in terms of dollars.

Regards

Francois

To answer this task, you will find the following learning material section helpful:

1.3. Supporting Beneficiary Service Programmes

6.1. Assessments, Analyses, & Building to Modality Decision
6.4. The Operational Design Options Analysis