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Trusty CarpetsBackground:Jerry Montgomery has been selling carpets for 20 years from hisstore, Trusty Carpets, that is located in a strip mall that recently has become a busyshopping center.While he has been able to make a good living, Jerry believes that hecould signiFcantly expand his business by using some of the newer technologies.Since he has no technology in the store today and he knows he has many options,Jerry has hired you to recommend which technologies he should acquire and todevelop the Business Case for those you recommend.He will use the Business Caseto decide whether he should invest in the technologies and to obtain the necessaryfunding from his bank.The current business model:Since he opened his carpet store, Jerry hasadvertised in the local paper and done all of his business in his showroom where hehas the carpet samples on display.Jerry employs two sales people to servecustomers in the store and he has an accountant (who has other customers and doeshis work at his own o±ce) to keep track of his Fnances, pay bills, sends\ invoices,collect payment and do payroll. Jerry’s inventory is limited to overstock, end piecesfrom installations and samples.He uses paper catalogs from his suppliers todetermine what is available, in what colors and at what cost to him.When acustomer makes a selection, Jerry has to call the manufacturer to check theavailability and the current price.Jerry’s brother-in-law, Mike Baker, is a carpetinstaller and manages that end of the business for him.Mike and Jerry reachagreement as to what installation will cost and the accountant distributes thepayments accordingly.Jerry’s sales sta² coordinates installation with the customer.Jerry and Mike have discussed combining their businesses into one, but have not yetmade that decision.All of his invoices and customer records are currently on paper.Recently Jerry learned that that the Metro Carpet Store across town was up for sale.Metro Carpet has a large display room and a warehouse.In his investigation of thisopportunity, Jerry has learned that it is up for sale because the owner, Bill Hartworth,is retiring and leaving the area.Although he had a relatively large store, Bill was notwell organized and has all his customer records and carpet inventory in ledgers.Jerrywould like to buy Metro Carpets and retain the sales sta², and he wants to continueto expand his sales in his current store.The opportunities:Jerry has seen that his competitors advertise on television(which he believes is too expensive for his small business).He believes that in hisarea he could reach more customers if he had a few salespeople that could go tocustomers’ homes, take measurements and obtain orders.He also thinks he coulduse the Internet, but he is not sure how, exactly.He also sees that since theshopping center has expanded there are a lot more customers passing by his store.He just wishes he could reach out to them and let them know about his special sales,etc.He has heard there are ways to do that using some of the new technology too.Jerry hopes you can help bring his business into the 21stcentury and give him somenew ways to reach customers.He recognizes that in order to grow, he must improvehis proFt margins and hopes the appropriate technology can help with this.He issure that if you can come up with some good ideas and a good Business Case forthem, that he can get funding from the bank to acquire the technologies.In additionto improving the use of technology for his current store, Jerry wants to include thesame capabilities for his new location, support a mobile sales force and obtainfunding for all of his IT support at one time.He also believes that a good IT plan willsupport his overall business strategy of acquiring Metro Carpets and creating a singlebusiness that takes advantage of current information technology solutions.However,he has to be able to demonstrate to the bank loan o±cers that he has a well thought-

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out plan that meets his objectives and has the potential of increasing sales so he caneasily re-pay the loan.The assignment:Your team is to come up with some speciFc business objectivesthat could be supported by technology solutions, and then identify some IT solutionsthat could beneFt Jerry’s carpet business.As a team, you will decide whichtechnology or combination of technologies would beneFt his business the most.Yourteam will develop a Business Case to explain the solution and how it would beimplemented.The business case must be well written and be able to be understood by Jerry and thebank loan o±cer.It is to be written for Jerryto present to the bank, as his proposalfor funding. Therefore, your team should not be mentioned in the business case.Yourteam’s role is to develop a business case that Jerry can present as his own businesscase for why he needs funding from the bank to address his business needs.We will develop the business case, section by section, as we proceed through theclass. The business case will be done as a series of documents prepared by yourteam that together form the full Business Case.See weekly group projectassignments for detailed instructions, beginning with the Week 1 Group Assignment.