The document proposes upgrades to Binion's MIS systems to address frequent problems, lack of documentation, outdated hardware and software, and Y2K compliance issues. It recommends establishing documentation of systems, upgrading PCs and the LAN network, replacing the slots and property management vendors, addressing Y2K across all systems through parallel testing on a new AS/400 system, creating a website, data warehouse, and disaster recovery through redundancy. The budget outlines costs for Y2K software tools and a new AS/400 hardware system to enable parallel testing for full Y2K compliance.

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Proposal for Binion’s Horseshoe
June 7th
1999
Prepared by Federico Schiavio

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Table of Contents
Summary …3
Documentation …4
Vendors …4
LAN …4
PCs … 4
AS/400 …5
Y2K …5
WEB …5
Business Intelligence …6
Disaster Recovery …6
Training …6
Budget …7
Conclusion ..12
Binion’s Network .13

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Summary
Binion’s MIS is running at 50% efficiency. This is reflected by the frequent problems
that occur on a weekly basis.
There is no written documentation on how to run the daily operations, all information
gathered up to know comes from interviewing users as the problems manifest themselves.
There are no tools to help document the systems as a whole. Such as cross-referencing,
and data file utilities.
On the outside two vendors are being particularly uncooperative, CDS (slots system) and
LGS (property management). I have been told by CDS that their DOS product is not
supported under Windows 98 and that it cannot be run on PCs that exceed Pentium II at
233 MHz.
The LAN (Local Area Network) was deployed with no logic and no growth forecast
whatsoever.
The PCs (Personal Computers) need to be upgraded to Pentium II 233 MHz with 64 MB
of Ram under Windows 95. This is a recommendation based on the CDS requirements. I
do not recommend a combination of Windows 98 or 2000 and different CPUs for this
would defeat our goal of setting MIS standards.
The AS/400 needs a memory upgrade to handle the additional workload brought on by
the Stratton Warren purchasing software package, and the related areas, purchasing,
receiving, housekeeping, kitchens, and butcher need to be wired to enable the users to
access the AS/400.
Y2K needs to be addressed company wide. Not only for the computers but also for your
vendors, suppliers, and infrastructure, such as electricity, water, elevators, and security.
A website must be established for you to go head to head with the competition and garner
as large an audience as possible to increase your revenue.
A Data Warehouse needs to be established so that the data that makes up your business
can be translated into meaningful information that will allow you to make the right
decisions to increase revenue and command a greater slice of the market.
Training needs to be addressed for all platforms and individual applications.

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Documentation
This is the most essential requirement of the MIS department. Due to the many different
systems that interact with each other to make your business function, a single person
cannot and should not be expected to be the sole keeper of this information. To obtain
and maintain an adequate repository of documentation that will satisfy the important
requirement of a self- sufficient MIS department and prevent the repeat of the “Bob Fox”
syndrome. Therefore an initial investment is needed to acquire the software that will
create this documentation and maintain it as your business requirements change.
Vendors
We recommend that LGS be eventually replaced because they are based on older
technology and don’t seem to be headed in the direction of upgrading their technology. In
view of this, we will continue to evaluate other packages until we find a replacement.
The CDS package seems to be in the same league as LGS, only more expensive. Due to
the limitations it is imposing on us, we recommend that when the NT version becomes
available, we migrate to it. This will probably occur sometime in the second quarter of
2000. Regarding the CDS maintenance contract, we recommend staying with the
$100.00/Hr rate until we upgrade to the NT version.
LAN
The Local Area Network is overextended in some areas where the signal is loosing
strength since the distance from the hub is over the prescribed limit. There also is the
possibility that the amount of data from the combined systems is over-crowding the lines,
causing slower transfers of data from the slot machines to the CDS system, and slower
response times for the users during peak times. It is recommended that repeaters be
applied at regular intervals to boost the signal. Also, a major wiring upgrade needs to be
applied to the network in order for the Stratton Warren implementation to succeed.

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PCs
The current crop of PCs is obsolete. We recommend upgrading them across the board to
Pentium IIs, 350s, and 96 Megs of RAM to enable the implementation of an NT network
after we upgrade to the NT version of CDS. The benefits will be fourfold, a stronger
operating system platform, more of an industry standard than Novell will provide the
horsepower to run tomorrows software, and an abundance of Microsoft specialists
compared to Novell.
AS/400
The AS/400 is the single most important piece of equipment you have. It is currently used
to run all but four of your mission critical systems. These being CDS (Slots), Remacs
(Purchasing), CBS (Race and Sports Books), and NCR (Point of Sale cash registers).
Remacs is currently in the process of being phased out and replaced by the new Stratton
Warren purchasing system. CDS is said to be coming out with a new NT version that will
replace its current proprietary DOS version. In the event that their NT version will turn
out to be a success and we convert over to it, we may be able to install it directly onto the
NT server that comes built into the AS/400. For the foreseeable future, NCR and CBS
will remain independent of the AS/400 and will upload the required data to the AS/400.
This will accomplish the strategic goal of centralizing all the data required to successfully
and proactively managing your business requirements.
Y2K
The greatest and most urgent issue we are faced with is Y2K. In order to guarantee 110%
compliance of all systems, we recommend either leasing or buying another AS/400. This
new AS/400 will not be used solely and exclusively for Y2K. It will be the future
workhorse of the company. Initially, this AS/400 will serve one purpose, that of ensuring
Y2K compliance. This will be achieved by transferring a copy of all applications and
respective data files to this new AS/400, and running the applications in a parallel
environment. What this means is, as the users go about their daily tasks on the production
AS/400, they will simultaneously or shortly thereafter perform the same task on the Y2K
test AS/400 and compare those results, both on screen and in report format. As errors are
encountered, they will be logged by the users and further investigated by us. Once all test
dates (see appendix A) will have been processed, and all errors logged, we will submit
our findings to the vendor in question and request a resolution. This process will be
repeated until we are satisfied that all issues have been resolved. This testing process will
also be performed on all PCs and the Network. We will also discuss with the CDS and
CBS vendors the feasibility of performing this test on their systems.

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WEB
The new AS/400 will provide you with the capability of hosting your own website. Some
of the advantages are total control of content, and updates of that content. Revenue from
incorporating links to other websites for a fee, setting up e-commerce enabling your gift
shops to sell on-line, allowing customers to make reservations, therefore capturing
demographic data which will aid you in making specifically targeted marketing blitzes.
Business Intelligence
Your data is your most important business asset. Unfortunately it is currently so dispersed
across systems as to be virtually useless. Proof in point is your total lack of control in,
among others your comp areas, both employee and players. In order to instill airtight
controls on your daily operations, you must first take control of your data. The best way
is to consolidate it all on one platform. This does not mean that you must run everything
on the AS/400, although that would help. It means that you need to put all your data on
your AS/400. To this end we can create processes that will transfer that data that resides
on different platforms to a common repository on the AS/400 better known as a Data
Warehouse. Once the data is available to us in such a form, we will be able to translate it
into the information necessary to eliminate fraud, visualize the market, target it, and
increase our customer base. Thereby increasing revenue, and eliminating losses.
Disaster Recovery
The additional AS/400 will guarantee you 24 hours, 7 days a week, 365 days a year
availability through the implementation of redundancy. In the event of a hardware failure
or a scheduled maintenance you will always have one AS/400 up and running with an
updated database. You will not incur in any data loss nor will you incur in any
productivity loss whatsoever.
Training
There is an urgent necessity to train your users in all general aspects regarding data
processing. From how to sign on to the AS/400 in less than three tries as required by
gaming, to taking advantage of the reporting capabilities of the CDS application.

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BUDGET
The following is an estimate of what will be required to establish Y2K compliance and
optimize your data processing environment as described in this document. It is subject to
change in the event that currently unknown issues will arise in the near future. As this is a
real possibility since we have been unearthing new issues on a daily basis.
Software for Y2K
The following software is segmented in two phases. The must have phase is required to
document the existing systems and determine our Y2K status. The if needed phase is the
worst case scenario which can be determined only after we determine our Y2K status.
Must Have
Price Maintenance
X-Repository 9,600.00
X-2000 (Analysis) 6,000.00
FEU 1,025.00
PDE/400 2,900.00 435.00 per year
NCS 2,495.00
Total for must have 22,020.00
If Needed
X-2000 (Conversion) 38,000.00
Prove 2000 8,000.00
X-36 24,000.00
Total if needed 70,000.00
Total Worst Case Scenario 92,020.00

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Hardware for Y2K
The following hardware is segmented in two configurations. The must have configuration
is required to test the existing systems and prove Y2K compliance. The preferred
configuration is needed to implement Web Server, Data Warehouse, Disaster Recovery,
and NT version of CDS.
Must Have
Price Maintenance Financing
AS/400 33,399.84 212.00/Month 945.00/Month
Preferred
Price Maintenance Financing
AS/400 138,820.00 665.00/Month 1,893.00/Month
Financing gives you the option to buy at end of lease for fair market value. This option
will allow you to expense.

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Stratton Warren
The following is required to wire the basement area in order to implement the Stratton
Warren Purchasing/Inventory package. The pricing is inclusive of material and labor.
We must also upgrade the current production AS/400’s memory from 256 MB to 512
MB.
Ideally we would also like to purchase an additional Stratton Warren module to enable
the automatic faxing of purchase orders.
Best contractor bid
Price
FISK 25,000.00
In-house
Price
Engineering plus
2 temporary engineers 12,000.00
AS/400 Memory Upgrade
Price
4,247.00
P.O. Fax Module
Price
14,800.00
FAS 1000
This is our current Fixed Asset management package residing on a standalone PC
connected to the network. It is not Y2K compliant. In order to be Y2K compliant it needs
to be upgraded to the Windows version. Another option, geared toward the consolidation
of all data on one platform would be to replace it with a Lawson module.
Windows Upgrade
Price
1,500.00
Lawson Upgrade
Price
15,000.00

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CBS
Having experienced the extended downtime with CBS that prevented us from paying out
the winning bets over a period of three days over a weekend, causing a very negative
image of the Horseshoe, it may be worthwhile to consider upgrading our current Simplex
system to a Duplex. This will guarantee us continuous availability identical to that
described for the AS/400 Disaster Recovery.
Duplex System from CBS
Price
30,000.00
CDS
The upgrade to the NT version of CDS is highly recommended as soon as the application
has been proven to work in a live environment. We estimate that this will happen
sometime in the second quarter of 2000. In addition we have the backup scanner for our
current CDS system that is lying idle due to a missing card. It is also highly
recommended that we invest in training on the CDS system as the system is very
complex and nobody in-house has a sufficient knowledge to maintain it effectively.
CDS NT version upgrade
Price
87,750.00
Backup Scanner
Price
1,995.00
Training
Price
2,000.00

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LABOR
Due to the unrelenting deadline of the Y2K project, the current system disarray, and the
Gaming requirements that must be met, we estimate at least 60 hr. weeks up until we are
certain that Y2K compliance has been achieved. The worst case scenario would be until
December 31st
1999.
Labor
Price
1 man for 29 weeks * 60/hrs. = 104,400.00
Maintenance
This is a listing of current maintenance agreements that should be added to the budget.
Maintenance
1. IBM 22,528.04/year
2. Compucash (Kronos) 10,025.00/year
3. Bodenstab 3,200.00/year
4. CBS 31,200.00/year
5. LGS 6,720.00/year
6. Travis 999.00/year (Benefit’s program for tracking COBRA)
Partial total 74,672.04/year
7. Microage-- Account balance is $610.34
8. Lawson-- Left message 6/9/99
9. Remax-- No Contract
10. Sierra Nevada (NCR)-- left message with Dan Sibelrud 6/9/99
11. PSDI (Engineering’s Purchasing Program)-- No contract
12. Stratton Warren-- No contract
Budget Estimate for 9 months
750,000.00

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Conclusion
Computers run today’s companies. The more efficient the computer systems the more
efficiently the company operates. The more efficiently the company operates, the more
satisfied your customers will be, and a satisfied customer is a repeat customer. A repeat
customer is your most valuable marketing tool for he or she will attract other customers.
Additionally, this efficiency will empower your employees to become more productive
for their jobs will become easier and faster to accomplish. All of the above directly
translates into increased revenue and value added savings due to a leaner, more efficient
operation. To help you better visualize the critical importance of a 100% efficient MIS
department, I will use my favorite analogy. The company is the body and MIS is the
heart. A 100% efficient heart is generally attributable to an athlete, a 50% efficient heart
is generally attributable to a three coronary bypass patient. Which would you rather your
company be?

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AS/400
LOCASINO
Server_02
File Server/MS_Mail
(User Files) (Applications)Server_01/02
Kronos/Remacs
Server_01/01
Backup
Engineering
Network
Mirrored
A-2 Server_03/01
Slot File Server
CDS
B-2 Server_03/02
Backup
Desktop
FAS1000
(Fixed Assets)
Desktop
(Comp Posting)
Desktop
D-2 Poller
(CDS)
Desktop
E-2 Transaction
(CDS)
Desktop
F-2 Scanner
(CDS)
CBS
Ethernet LAN
Mirrored
Desktop
MP
(CDS)
Desktop
G-2 Scanner
Backup
Broken
(CDS)
POS
Remacs
Federico Schiavio
06/07/1999
Binion's Network
AS/400
F10
IdleToken Ring