ABC Manufacturing Co. Ltd.

Proposal for an Integrated Web-based System

Submitted to
The Management Board

Prepared by
Finance Division
Alvin Chan
Anthony Leung
Inez Ng
Libby Chow
Mabel Ngan

28 February, 2004
 TABLE OF CONTENTS
SECTIONS

EXECUTIVE SUMMARY................................................................................................................2

1. INTRODUCTION .................................................................................................................4
1.1 BUSINESS OBJECTIVES.................................................................................................................................... 4
1.2 BUSINESS PLAN .................................................................................................................................................. 4

2. WORKFLOW & SYSTEM REVIEW .....................................................................................5

2.1 WORKFLOW FOR PLACING ORDER......................................................................................................... 5
2.2 EXISTING INFRASTRUCTURE...................................................................................................................... 5
2.3 RISK/THREATS/VUNERABILITY ANALYSIS ON EXISITNG SYSTEM ....................................... 6

3. PROPOSED NEW IT INFRASTRUCTURE........................................................................9

3.1 INTERNET ACCESS FOR STAFF.................................................................................................................10
3.2 WEB-BASED PLATFORM...............................................................................................................................10
3.3 SECURE INFORMATION EXCHANGE BETWEEN COMPANY, CLIENTS & PARTNERS ..10
3.4 SINGLE DATA WAREHOUSE......................................................................................................................11
3.5 ONLINE CATALOGUE & ORDERING CHANNEL.............................................................................11
3.6 ONLINE DELIVERY STATUS TRACKING .............................................................................................11
3.7 ONLINE PAYMENT CAPABILITY..............................................................................................................12
3.8 NEW SYSTEM REQUIREMENTS ON BUSINESS PARTNERS..........................................................13
3.9 SUPPORT FUNCTIONS FOR BUSINESS PARTNERS ..........................................................................13
3.10 BENEFITS DERIVED FROM THE NEW SYSTEM................................................................................13

4. CHANGES IN ORGANIZATION STRUCTURE.............................................................. 16

4.1 CHANGE OF TITLES.......................................................................................................................................16
4.2 INFORMATION SERVICES & TECHNOLOGY MANAGEMENT STRUCTURE.......................17

5. PROJECT BUDGET ............................................................................................................ 18

5.1 BUDGET ASSUMTPIONS...............................................................................................................................18
5.2 BUDGET SUMMARY........................................................................................................................................18

6. TIMETABLE OF THE PROJECT...................................................................................... 19

7. DISASTER RECOVERY PLAN .......................................................................................... 20

7.1 OBJECTIVE & SCOPE......................................................................................................................................20

ABC Manufacturing Co. Ltd. 4/2/2004 Page 1 of 2

 EXECUTIVE SUMMARY

In a review of the existing system and IT infrastructure, we found that the system may not be able
to support the Company to achieve the business objectives and the future plan. Improvement on
information security is regarded as a priority area for the Company. Therefore, we proposed to
upgrade the existing system, restructure the I.T. infrastructure and reengineer the current
workflow.

Risk Analysis on Existing System

We have identified several threats and vulnerabilities in the existing system, which are summarized
as follows:

Info. Security Threats Vulnerability Risk level

elements
Confidentiality (i) Eavesdropping No encryption in current High
system
(ii) Interception of communication links No encryption in current High
system
(iii) Unauthorized access to confidential data No firewall High
Integrity (i) Unauthorized data file modification No firewall and no intrusion High
detection system
(ii) Deliberate manipulation of input doc. No authentication for email High
order
(iii) Hardware malfunction No secondary backup facility Medium
Availability (i) Communication failure No firewall & Single ISP High
(iii) Loss of processing ability Single point of failure High
(iv) No disaster recovery plan No contingency plan Medium

Proposed IT infrastructure

New system features to be established are as follows:-

1. Firewall: prevent unauthorized outsiders from accessing the Company’s data
and resources
2. IDS: detect attacks from outsiders and misuse by insiders
3. Data warehouse: data from various online transaction processing applications and
other sources is selectively extracted and organized on the data
warehouse for use by analytical applications and user queries.
4. VPN: use a public telecommunication infrastructure, e.g. the internet, to
provide remote offices with secure access to the Company’s
network.
5. WebTrust: provides assurance services to build trust and confidence with
clients, online privacy, security, confidentiality, availability,
transaction integrity and ensure non-repudiation.
6. Internet banking services: acquire online payment facilities from HSBC
7. Hyperlink of TY Cargos: retrieve shipping information through internet

ABC Manufacturing Co. Ltd. 4/2/2004 Page 2 of 3

With the proposed system and IT infrastructure, the following will be achieved:

Internet access for staff

Web-based platform
Secured information exchange between the Company, Clients and Partners
Single data warehouse
Online ordering channel
Online delivery status tracking
Online payment capability

Both the Company and the business partners will benefit from the new system in terms of
efficiency, effectiveness, information availabilities, integrity and confidentiality. Information
security is improved as whole.

Project Budget and Implementation Schedule

Estimated set up costs for the new system is approximately HK$2.1 million, representing around
0.1% of 2003 turnover. That includes hardware, software and consultancy fees. Recurring
expenditure would be increased by HK$320,000 per annum.

The project will start from 1 April 2004 and complete in September 2004.

Disaster Recovery Plan

Apart from restructuring of IT infrastructure, it is required to establish a disaster recovery plan to

minimize the impact from any disaster. We recommended the disaster recovery team and recovery
approach as well.

Targets for recovery of the following servers:

Mail server / internet access ---- 1 day
Application server / Database server ---- 3 days

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