Gem Production Streaming Project - Business Case Analysis (72: First Grade)

Copyright © 2015 Charchenko E., Peridou J., Ogburn S. & Zhou L. All Right Reserved.
GEM STREAMING PROJECT
• Names: Charchenko Elizabeth, Ogburn Sam, Peridou Jade and Zhou Lesley
• University: The London School of Economics and Political Science
• Course: MG208 – Business Transformation and Project Management
• Date: October 6th
, 2015
• Assignment: Summative group assignment (Michaelmas Term)
• Instructions: See below.
• Word Count: 1,306
• Grade: 72 – First Grade
Please cite this paper as:
Charchenko E., Peridou J., Ogburn S. & Zhou L. (2015). Gem Streaming Project
Business Case. Unpublished Assessment. The London School of Economics and
Political Science.
"Unless otherwise indicated, all materials on these pages are copyrighted by Jade
Peridou. All rights reserved. No part of these pages may be used for any purpose
other than personal use. Therefore, reproduction, modification, storage in a retrieval
system or retransmission, in any form or by any means, electronic, mechanical or
otherwise, for reasons other than personal use, is strictly prohibited without prior
written permission."

REQUIREMENTS
Study the project scenario provided and work together to produce a report consisting
of the documents detailed below. The content of the report should show
understanding of the taught material as well as thoughtful application of tools and
methods on the course. Allocate time to conduct independent research about the
project topic and business area.
It is likely that you will need more information than is included in the case scenario.
This reflects real life situation as project managers are often faced with incomplete
information with additional information given over time, as well as conflicting and
changing requirements. You are encouraged to make reasonable assumptions so long
as they are consistent with the case scenario.
The main report must include:
• Business case analysis
• Stakeholder analysis
• Benefits review
• Risk analysis
• Project plan
CASE SCENARIO
Gem Productions is a medium-sized company producing programmes for major TV
channels. At a recent off-site strategy meeting, the CEO Jensen Moore announced that
Gem needs to “face the future”. After much discussion, the Gem board agreed to
embark on a “streaming project” developing on-demand multimedia services. The
attraction for Gem lies in reaching audiences at a new scale and scope rather than
being dependent on traditional media channels. Market research suggests that Internet
streaming is becoming more widely adopted and pointed to the popularity of on-
demand multimedia services such as video (e.g. YouTube, Vimeo, Metacafe), film
and TV (Netflix, Amazon, JustWatch), music (Apple Music, Spotify, Pandora)
Internet radio (WFMU, Live365, AccuRadio) audiobooks (audible, Project
Gutenberg, LibriVox), and more.
Gem Productions has no prior experience with streaming nor can they make the
expansion using their existing technology. Chief Technology Officer, Meena Shaw,
has made the decision to outsource the development of a digital streaming platform to
StreamTech. A group of six technical staff led by Peter Brant from StreamTech have
been assigned to Gem’s project with a brief to deliver streaming production and
broadcasting systems. Gem’s production executive, Sheelagh Reeves has proposed
that the streaming project leverages the “Little Gems” portfolio of children’s

programs. This includes an archive of classic shows, current productions, and a
pipeline of proposals for new content.
You work for Gem and your group is the project team assigned to lead this project.
Gem has limited the project expenditures to a maximum of £1,500,000 (+/- 10%) for
a project that will focus only on children’s content. The project begins on November 1
and the first programme should be streamed no later than September 1 the following
year (Reeves has said she wants the launch to coincide with the start of a new school
year).
The Gem board has given you a mandate to deliver solutions that will create a:
• Single online ‘front-door’ suitable for children’s programmes
• Way for children to be active creators and not merely passive consumers
• Pathway of entertainment and learning content for children that matures with
them
•
You will need to plan tasks and assign team members to them from a list of people
involved in the project. Regular meetings need to be held with the team and
stakeholders as well as other forms of communication. Approval points are needed
through the project sequence. Risks, testing, quality control and provision issues may
develop. Issues with security, reliability, integrity, interfaces between the old and new
systems, marketing and communications are all considerations as you plan the project.
User training and other preparations will be required for system implementation.
Remember…the origin of this project was Jensen Moore’s flash of inspiration and he
wants it to inform the strategy process going forward.
BACKGROUND AND CONTEXT
Until recently the complexity and cost of existing solutions has deterred Gem from
streaming content but their new Chief Technology Officer, Meena Shaw, has assured
them that small to medium content providers can afford the technology required.
Meena has worked with Peter Brant (who is heading up the outsourced technical
development at Gem) at her previous place of employment but does not know his
execs at StreamTech. Both Brant and StreamTech have reputations for being highly
competent but Meena has heard through her profession network that Brant went over
budget on one of his recent projects so she has some private concerns. Meena is also
not familiar with the agile PM methodology used by StreamTech. How will it impact
the more traditionally trained Gem staff members?
Gem’s in-house IT team, which is responsible for maintaining current information
systems (applications) and the technical infrastructure, is wondering how the venture
into streaming is going to affect them. Will their responsibilities be enlarged to

include maintaining and perhaps future expansion of streaming facilities? What
support will they be given to acquire new skills needed for this? They are also worried
that following successful outsourcing project to Stream Tech more aspects of IT
might be outsourced and their jobs might be threatened.
The children’s production team consists of ten people and most of them are excited to
be involved in the project because it will give them an opportunity to showcase their
award-winning programmes. There has been lively discussion about which existing
programmes to include in the project and whether they should produce ‘born digital’
content. Some team members are concerned that the streaming project indicates a drift
to digital content and are not entirely comfortable with Gem’s creative direction.
Their concerns are summed up as follows: “What next - apps? Kids spend too long on
screen…these resources would be better allocated to exploring partnerships with book
publishing companies.”
Gem’s production executive, Sheelagh Reeves has been trying to contact their award-
winning animator Mason Manovich to secure his involvement but has not received a
reply. She is concerned that Mason is getting advice from his lawyers about how to
renegotiate his contract with Gem to include new clauses about asset management and
copyright. Henrick Jones, Director of Marketing is concerned that without a star
product from Mason they will not have the material to promote Gem’s streaming
venture. He has been given minimal budget for marketing and is trying to translate the
CEO’s conviction that “streaming will go viral for Gem” into practice for his team.
Meanwhile, one of Gem’s existing customers Mary Pearson (Director of
Programming at a major TV channel) has heard rumours that Gem is exploring
streaming options and is anxious to talk to them. And it is always possible that the
project will be outmanoeuvred by digital platforms or publishers who could decide to
stream content aimed at the children’s market.
SUMMARY OF PERSONNEL INVOLVED IN THE PROJECT
• Peter Brant (PB) Technical Head, StreamTech (outsourcing company)
• Henrick Jones (HJ) Director of Marketing, Gem Productions
• Jensen Moore (JM) CEO, Gem Productions
• Mason Manovich (MM) Animator, Children’s Productions (contractor)
• Katie O’Ryan (KRO) Corporate Lawyer, Gem Productions
• Mary Pearson (MP) Director of Programming, Major TV Channel
• Sheelagh Reeves (SR) Production Executive, Gem Productions
• Meena Shaw (MS) Chief Technology Officer, Gem Productions
• Team of ten staff in children’s production.

ASSUMPTIONS
The mandate for the project is based on the scenario including the CEO’s mission
statement, project budget, project tolerances, timescale, staff, and outsourcing partner.
• Communicate with the course leaders as if they are members of the Project
Board. It is OK to ask course leaders and guest practitioners questions about
the project.
• You will work as a team, sharing responsibility for project management.
• The outsourced technology development will be undertaken as a separate
‘black boxed’ sub-project. You do not need to break it down for the project
plan.
• The mandate for the new project has been approved but project initiation has
to be given a green light by the project board. Much depends on the
documents you submit!

GEM STREAMING PROJECT BUSINESS CASE
Executive summary
This project is critical to our continued relevance as a player in the children's media
industry. By implementing the first children's streaming platform we stand to gain
significant market share and a much larger ROI than our conservative estimate of
approximately 11.6%. Our innovation will revolutionize the industry by gaining
control of our content and its distribution. In changing our business strategy, we
threaten our traditional distribution markets, challenge our employees to adapt to new
strategies and risk excessive expenses and possible damage to reputation. This shift in
business strategy positions us at the forefront of our industry leading our competitors
and us into the new digital age.
Reasons, Deliverables and Options
The survival of Gem Production relies on adaptability in this ever-changing business
environment. Pursuit of this project will ensure the company's relevancy in today's
digital world, accessibility for consumers who require "on-demand multimedia
services" and customer loyalty through providing positive streaming experiences
(refer to Appendix I).
Deliverables include (refer to Appendix II for alignment of company strategies):
• Single online "front-door" suitable for children's programmes
• Way for children to be active creators
• Pathway of entertainment and learning content for children that matures with
them
With these deliverables in mind, we intend to restrict the scope to developing an
online streaming system for children's material based on our perceived competitive
advantage in this niche market. In evaluating Gem's situation, we have identified three
options the company may implement (refer to Appendix III). The first is base case,
which will render Gem outdated and reliant on distributors; the second is changing
content distributors, which would avoid having to implement new IT systems, but at
the cost of losing control of how Gem would like its content distributed; the third is

introducing streaming services, which would require developing and maintaining a
new system, but would allow Gem to rely on itself to distribute content as well as
increase relevancy and accessibility for millennial consumers.
Expected benefits
The purpose of this project is to develop a new streaming platform, which would
increase profits, develop our market share, and strengthen customer loyalty. We
divided the company's gains into two categories to globally apprehend the multiple
benefits at different organizational levels. While the Project Execution Methods focus
on the advantages of the streaming management process, the Organization
Deliverables and System Strategy highlight the corporate expected accomplishments
of Gem. By linking those diverse achievements to our brand image, the profitability
and sustainability of our company will secure stakeholders' contribution and
confidence. Please refer to the Benefit Analysis document for more in depth analysis.
! Project Execution Methods – The implementation of an innovative
streaming technology gives the in-house team the opportunity to learn from
the expertise of the outsourced staff. The major benefits of their
intercommunication include enhancing global productivity and costs savings.
Multiple risks are also mitigated due to staff's critical analysis and creative
solving techniques. But above all, Gem continuously strives to sustainably
develop the platform and take into account all stakeholder needs.
The Gem streaming project team will
prioritize time and quality,
sacrificing cost if necessary, in order
to capture large returns from
developing a quality, innovative
product before competitors.

! Organization Deliverables and System Strategy – Successfully launch the
streaming platform by reaching targeted objectives and effectively managing
the new streaming technology. By gathering data, the implementation of a new
technology allows to improve our company's services, image, and
competitiveness allowing us to be flexible in our responses to customer needs.
The development of the project endeavours to be in accordance with Gem's
organizational sustainable and ethical issues.
Expected Dis-benefits
The establishment of a new streaming technology can engender multiple dis-benefits
among stakeholders. While restructuring the company can severely impact
administrational strategy, project in-house staff would have to deal with several
negative outcomes arising from outsourcing. The threat of losing control over the
project is one of the main concerns of Gem's IT team. Globally, the culture of the
company needs to be accordingly redesigned without pressurizing various and
divergent internal stakeholders' interests. Please refer to refer to Appendix IV for
more complete analysis of dis-benefits.
Timescale
Overview of the Project Plan will start with contract negotiation between StreamTech
and Gem (1 week), followed by a period of platform development led by StreamTech
(5.5 months), before entering a beta period for testing, creative content retuning and
data analyzation (3 months). From there on, Gem staff will be trained by StreamTech
to integrate new project systems (1 month), followed by launch of the project (2 days)
and ending with project closure and handoff after thorough audit of benefits review (2
weeks). For further information on the Timescale please refer to the Project Plan in
the following Gantt chart. Project benefit realization will emerge both within the
duration of the project and after its closure; please refer to the benefits analysis
document for more information. Please refer to Appendix V for a more detailed
analysis of investment opportunities.

Key Resources
• 6 StreamTech team members under Peter Brandt (refer to stakeholder
analysis)
• In-house Gem council (lawyer, internal IT team, children's staff production,
etc.) (refer to stakeholder analysis)
• Potential new hires (media streaming experts, consultants, etc.)
• Brand loyalty
• Servers
• Creative content
• Limited marketing funds
Assumptions
• Gem owns the servers or is willing to purchase servers to host streaming site.
• Gem will remain loyal to the waterfall methodology, but will make efforts to
work along with and observe SteamTech's Agile methodology.
• Conservative estimates of revenue growth of 10% in year one, 8% per annum
in the following 8 years, fixed costs, depreciation period, and cost of capital.
• Sustainability principles are already integrated into Project Charter addressing
human rights issues, labour practices, environmental concerns, consumer
issues and community engagement. Principles will balance sustainability
constraints and Project Charter goals.
Costs and Investment Appraisal
The basic cash flow and investment analysis, shown in Appendix V, utilizes the given
budget and makes conservative estimates of future cash flows to demonstrate that the
project should, at minimum, generate a Internal Rate of Return of approximately
11.6% and a Net Present Value (NPV) of £476,309 despite an initial capital outlay of
£1.5 million. It is worth noting that even if the project were to go 10% over budget, as
allowed for in the project plan, it would generate an IRR of 9.8% and would have a
NPV of £348,390. These numbers are based on what are perceived as conservative
estimates of revenue growth of 10% from the first year to the second and 8% per

annum in the final 8 years. Gem does, however, believe that the project has the
potential to generate much higher revenue growth than this projection as has been
demonstrated by the successes of such peers as Netflix and Youtube. In the analysis,
other conservative estimates of the project include fixed costs, depreciation period,
and cost of capital. The transformation of our business model from strictly a content
producer to a content distributer in the niche market of childhood development media
positions the firm to better monetize the current popularity of our content and build
greater brand loyalty in the years to come. Please refer to Appendix V for a full cost
and investment appraisal.
Surfacing Issues
As Gem transitions its business strategy to face the future and become not only a
content creator but also a distributer, the project team and the business face huge risks
to achieve large benefits. As a project team, we are closely monitoring the risks of
increased cyber security threats, the knowledge transfer from StreamTech to our
internal teams, and project management issues between StreamTech’s Agile
management and Gem’s waterfall methodologies. As a business, we are monitoring
the risk of a public backlash at a poorly functioning product, public backlash at
promoting increased child screen time, and a delayed launch threatening our
competitive edge and ROI. Please refer to Appendix VI and the Risk Analysis
document for a more comprehensive analysis of project risks.

APPENDIXES
Appendix I
Reasons
• Relevancy – in today's digital, dynamic world, we must cater to consumer
needs. Since customers are more prone to use "on-demand multimedia
services" and market research suggests that Internet streaming is more widely
adopted, we need to be flexible and adjust to customer wants and expectations.
Relying on traditional media channels is not enough to survive in this industry
anymore.
• Accessibility – indeed at our core we are a creative media content production
company; however, this content must be deliverable to our audiences in order
for them to enjoy
• Customer loyalty – by providing children positive streaming experiences early
on in their years, we have more likely encouraged them to become faithful
consumers
Appendix II
Deliverables Company Strategies
Single online "front-door" suitable for
children's programmes
• Open new market and opportunities
from streaming business
• Changing company strategy and
business model to become
distributor
Way for children to be active creators
and not merely passive consumers
Pathway of entertainment and learning
content for children that matures with
them
• Changing company strategy and
business model to become
distributor

Appendix III
Option 1 – Base Case – Do Nothing
Description Costs
• Continue to use existing processes and
systems.
• Existing maintenance costs continue. !
Risks Barriers
• Gem’s reliance on traditional media.
• Channels cause decrease of viewership
and ultimately decline of profits.
• Those shifted to the digital age will
no longer want to use traditional
media channels.
Strengths Weaknesses
• Employees understand and can
maintain the systems as they are now.!
• Minimal cost for continuing to
maintain systems.!
• Won’t lose focus on creating quality
creative media content.!
• Gem content becomes inaccessible to
millennial. !
• Traditional media channels become
out-dated causing our company to be
out-dated.!
Option 2 – Change Content Distributors
Description Costs
• Hire new distributors to find ways to
display our content through other forms
of media other than traditional
channels.
• Existing maintenance costs continue.
• Cost of hiring new distributors.
Risks Barriers
• We still cannot provide our content on
demand.
• Other companies’ streaming methods
may not be competent – we lack
control of how our content is presented.
• Distributors may target wrong audience
or market inefficiently.
• Content streaming is not under Gem
control.!
• Won’t lose focus on creating quality
creative media content.!
• Will not have to implement new IT
system.!
• Viewers will somewhat be able to
access our content through distributors’
multimedia services.!
• Still reliant on distribution companies
so they have leverage on Gem.
• Not in control of our own content.
• Unable to ensure accessibility and
customization to users for overall
positive experience.
Option 3 – Introducing Streaming Services
Description Costs
• Outsource a digital streaming platform
company to design, develop,
implement and maintain a “on-
demand” multimedia streaming service
for Gem users to access through non-
• Existing maintenance costs continue !
• Costs for design, development,
testing, implementation, training and
marketing.!

traditional media channels.
Risks Barriers
• Staff may have hard time adapting to
new system changes.!
• Costs of project may run over budget.!
• Mason may refuse to be involved in
project.!
• Competitors adopting similar streaming
strategies before our implementation.!
• Potentially alienating our current
customer base.!
• Developing new system may draw
focus and resources away from
Gem’s ability to produce creative
content.!
• Stakeholders may not agree to the
development and implementation of
new system. !
• Will run accordance to how millennials
expect to access creative content.!
• No longer relying on distribution
companies, thus saving costs.!
• Developing customer loyalty by
targeting children at young age.!
• Adjusting to competitive digital
environment later on will be more
costly than if we start now.!
• Costs of developing, implementing
and maintaining new system.!
• Lack of adequate staff training will
cause confusion and frustration.!
• Problem with stakeholder resistance.!
Appendix IV
Perceived dis-benefit Stakeholder(s) concerned
• New governance strategy and protocols
will have to be implemented to fully
incorporate the new streaming platform.
• Old administration
• Streaming extension competes with other
branches of the company, particularly
traditional distribution processes.
• Director of Programming
at external distributions
(Mary Pearson)
• Director or Programming
(Sheelagh Reeves)
• Supplementary costs of back office
necessary to set up the streaming
platform (faster connection with bigger
and more powerful servers needed).
• Chief Technology
Officer (Meena Shaw)
• Suppressing or redefining jobs because
of outsourcing.
• Gem’s in-house IT team
• Lack of in-house control due to new
outsourcing.
• Gem and Jenson Moore
• Cultural shift in organization due to new
strategy and mission.
• Gem

Appendix V
Assumptions:
FirstYearRevenue300,000.00£
SecondYearRevenue330,000.00£
RevenueGrowthRate(Year3andBeyond)8%
VariableOperatingExpensesas%ofRevenue30.0%Excludesdepreciation
OriginalCostofEquipment1,500,000.00£
YearstoDepreciate(Straight-Line)10.0
SalvageValue%(forDepreciation)0.0%
MarginalTaxRate20%
CostofCapital6.00%
NOTETHATALLNUMBERSBELOWTHISARECALCULATED,NOTINPUT,exceptC36,whichis1.
IncomeStatement:Year0Year1Year2Year3Year4Year5Year6Year7Year8Year9Year10Total
Revenue300,000330,000356,400384,912415,705448,961484,878523,668565,561610,8064,420,891
VariableOperatingExpense90,00099,000106,920115,474124,712134,688145,463157,100169,668183,2421,326,267
Depreciation150,000150,000150,000150,000150,000150,000150,000150,000150,000150,0001,500,000
PretaxIncome(excl.interest)60,00081,00099,480119,438140,993164,273189,415216,568245,893277,5641,594,624
1,594,624
InitialCost(1,500,000)(1,500,000)
Less:Taxesbasedon20%12,00016,20019,89623,88828,19932,85537,88343,31449,17955,513318,927
Addback:Depreciation150,000150,000150,000150,000150,000150,000150,000150,000150,000150,0001,500,000
NetCashFlow(1,500,000)198,000214,800229,584245,550262,794281,418301,532323,254346,714372,0511,275,697
1,275,697
CostofCapital(orr)6.00%1.00001.06001.12361.19101.26251.33821.41851.50361.59381.68951.7908
DiscountedCashFlow(1,500,000)186,792191,171192,763194,499196,375198,389200,536202,814205,219207,751
NPVofCashFlows-basedonsumoftheabove476,309.00£
NPVofCashFlows-usingNPVfunction476,309.37£
InternalRateofReturn-usingIRRfunction11.58%
Shouldwebuyornot?Invest

Appendix VI
Surfacing Issue Mitigation Plan
Major Project Execution Surfacing Issues
• Security threats and cyber attacks;
with our customers putting secure
information on the web for the first
time we must be prepared to protect
their information.
• Research most up to data cyber
security; consider bringing in risk
management consultants.
• Lack of adequate training and
communication among current Gem
employees.
• Focus a portion of time to
knowledge transfer, and technical
training. Ensuring that the staff
feels entirely comfortable with
system before StreamTech hands
off the project.
• Project management difficulties
between StreamTech agile
methodologies and Gem's waterfall
techniques.
• Consultation, workshops, and
weekly meetings with all team
members on agile methodologies.
Clear communication within
internal team.
Major Business Surfacing Issues
Public backlash at increasing child
screen time.
Market product as an educational
device.
Failed product launch threatening the
reputation of the business.
At a final Go/No Go meeting have
a critical, unbiased assessment
of system functioning.
Delayed launch resulting in
competitors developing similar
products children targeted
products before Gem and
capturing market advantages.
Prioritize time and quality over
cost.

BENEFITS REVIEW
Benefit
Measures for
Success
Capacity (benefit
realization) Barriers
Qualitative Benefits from Project Execution Methods
Strengthen
communication and
cooperation between
internal and external
teams.
Improved flow of
positive
communication in
both meetings and
outside project
communication;
Project leaders will
interview team
members on personal
reflections of project
communication.
Highly likely
because Gem is
really enthusiastic
about working with
StreamTech.
The different
methodologies used
can create
misunderstandings
and frictions.
Enhance creative and
technical skills of all staff
through an innovative
partnership between
StreamTech and Gem.
Enable improved and
quicker decision-making
by sharing knowledge.
Interview internal
employees about
lessons learned from
StreamTech. Include
reflections meetings
at end of project plan.
Likely because Gem
will learn from
StreamTech's
expertise.
StreamTech can be
willing to share only
a limited amount of
knowledge.
Gain cultural flexibility
and responsiveness by
observing StreamTech's
Agile methodology and
considering potential
implementation for future
products.
At project reflection
meetings, discuss
benefits of Agile
methodologies and
the possibility of
adopting Agile in the
future.
Unlikely because
Gem's staff will
probably be willing
to continue using its
traditional
methodology.
Cultural
entrenchment of
traditional
methodologies.
Build efficient network of
people by enhancing
transparent information-
sharing and mutual
communication between
in-house staff and
outsourced team.
Interview internal
employees about
StreamTech. Include
reflection meetings at
end of project plan.
Highly likely
because Gem staff is
enthusiastic about
working and
learning from
StreamTech.
Gem staff's lack of
basic technical
knowledge.
Organizational
sustainable principles
reflected in the project:
Gem's labour practices
Maintained positive
public opinion and
employee satisfaction
regarding Gem's
Highly likely
because of
reputational
enhancement and
Initial funding and
time constraints for
sustainable practices;
shareholders and top

and business processes
respected.
sustainable practices. assurance of a long-
term sustainable
business model.
executives of Gem
may not believe
sustainable practices
are necessary.
Establishing a trust-based
relationship with
StreamTech may lead to
future collaborative
projects.
Continued
relationship with
StreamTech.
Likely because Gem
staff is enthusiastic
about working and
learning from
StreamTech.
Miscommunication,
insurmountable
cultural differences
can deteriorate
relationship and
even lead to project
failure.
Striving to develop a
brand-new platform with
fair prices focused on
meeting the needs of
consumers.
Brand loyal
costumers transition
to using and
purchasing the new
streaming platform
while simultaneously
expanding our
costumer base.
Likely because of
strong company
ethics, Gem intends
to keep prices fair
and affordable.
Competitors attempt
to undercut our
prices.
Increase workers'
productivity by valorising
talents from both
StreamTech outsourced
staff and Gem in-house
employees and providing
fair salaries.
Interview internal
employees about
StreamTech. Include
reflection meetings at
end of project plan.
Likely because Gem
staff will appreciate
monetizing their
value to the
organization.
Lack of company
funding to increase
wages.
Respecting sustainability
principles help to
successfully deliver the
streaming platform within
time, quality and costs
constraints.
Delivering a quality
product within the
deadline and
reasonable allocated
budget.
Somewhat likely;
hard to anticipate
potential cost
setbacks due to time
constraints.
Strict deadline
imposes tight time
constraints.
Quantitative benefits from Project Execution Methods
Save costs in wages and
time in formation by
using an outsourcing
company to implement
the streaming technology.
Include benefit
review of what would
have been the cost if
project were
insourced versus
actual project
outsourcing cost.
Likely because it is
not necessary to pay
outsourced
temporary
employees costly
benefits.
Outsourcing is
costly, especially if
project experiences
setback.
Qualitative benefits from Deliverables and System Strategy
Being first movers
entering into a niche
Being the first
children's streaming
Unlikely because
competitors' actions
Competitors might
launch similar

market for children's
streaming.
product on the market
and gaining large
market shares.
are unknown. products; budget and
resource constraints
to meet deadline.
Develop a coherent,
innovative and attractive
brand image By providing
qualitative contents,
consumers satisfaction
(through word-of-mouth
and social media) will
have positive impacts on
Gem's brand reputation.
Holding customer
focus groups with
both children and
parents to understand
customer satisfaction
and needs.
Very likely a
consequence of a
collaborative
development process
with StreamTech in
collocated
innovation days.
Miscommunication
of requirements
expected of
StreamTech.
Interacting with
customers through
feedback promotes Gem's
engagement to address
their needs.
Online discussion
forums and customer
feedback surveys to
understand customer
satisfaction and
needs.
Likely, Gem's team
will develop a
collaborative
relationship between
production team and
IT team.
Ineffective consumer
feedback platforms.
E-learning and streaming
give wider access to
interactive, educational
materials for children;
building Gem's
sustainable brand.
Building a
sustainable, education
driven brand image as
measured in focus
groups.
Likely because a part
of our streaming
contents will be
educationally
focused.
Parents want to limit
their childrens' time
spent online.
Engaging and responding
to the interests of new
external and internal
stakeholders, such as
schools and learning
centres' concerns.
Building a
sustainable, education
driven brand image.
Unlikely, Gem may
not have the
resources to
communicate with
educational experts.
Educational
institutions may be
reluctant to let
children use
streaming so early.
Quantitative benefits from Deliverables and System Strategy
Gaining market share.! Convert 50% of our
traditional content
consumer base to the
new streaming
platform.
Highly likely if we
are the first movers
in this new niche
market.
Traditional
consumers reluctant
to convert to new
streaming
technology;
competitors
launching similar
products.
Achieve ROI by 11.6%
after 10 years of business.
Hitting this
Investment Return
Target.
Likely, with our
predicted financial
forecast.
Unpredicted
financial setbacks.
Increase consumer data Incorporation of data Highly likely Gem team may not

analytics (CDA) to better
adapt our creative process
to produce the content
consumers demand based
on emerging opportunities
and trends.
analytics into the
creative process and
content.
because
StreamTech's final
streaming product
will be incorporating
these analytical
tools/
have the processes
developed to analyse
data in a meaningful
manner.
Forming a community of
young customers that will
be loyal towards the
brand in the future.
Tracking customer
consumption patterns
and interpreting
consumer data
analytics.
Highly likely
because
StreamTech's final
streaming product
will be incorporating
these analytical
tools.
Gem team may not
have the processes
developed to analyse
data in a meaningful
manner.

STAKEHOLDER ANALYSIS
By determining all the stakeholders involved in this project and evaluating the ability
of their influences, we will be able to align the program plans with the interest of key
players, which will in turn help us gain allies to propel the project forward. The table
below demonstrates all those who will be impacted by the project, an analysis on their
interest, followed by techniques to manage these interests. This table is also
transformed into a Power/Interest grid categorized by evaluating stakeholders' power,
legitimacy and urgency of their claim for visual reference. From our grid, we come to
the conclusion that key stakeholders that deserve management's highest priority
include Gem executives, Peter Brant, Mason Manovich, Gem's Children's Production
Staff and Gem shareholders.
Stakeholder Interest Analysis Technique to manage
Gem executive
team:
Jensen Moore (CEO)
Meena Shaw (Chief
Tech Officer)
Sheelagh Reeves
(Production Exec)
Henrick Jones
(Marketing Director)
Highly interested since the
team desires for Gem to “face
the future” by developing on-
demand multimedia services
that will increase audience at
new scale and scope
Highly powerful because team
is making decisions and
funding the project
Assign team member to attend weekly
meetings communicating updates and
addressing arising concerns whether
this is via video conferencing or in
person meetings
Peter Brant
(Technical Head of
StreamTech) with
team of 6
Highly interested and powerful
since Gem is relying on this
outsourced team of expertise to
deliver streaming production
meetings communicating updates and
addressing arising concerns
Frequent project briefings and status
*Note&the&grid&is&subject&to&change&through&the&project&as&interests&and&power&shift&over&time&

and broadcasting systems updates
Mason Manovich
(contractor)
Highly interested for he can
make a hefty profit from this
project
Highly powerful because Gem
relies on his “star product” to
promote streaming venture
meetings with Manovich to ensure he
has the right support from Gem, his
creative concept aligns with Gem
objectives and he is always updated
with the team’s plans
Gem’s Children’s
Production Staff
Highly interested because the
“Little Gem” project falls under
their department
Highly powerful for they
decide what digital content is to
be produced and released
Assign specific project tasks to
members
Hold daily “update meetings”
Addressing problems right when they
arise
Children viewers Low in interest of project, but
high in power because they are
target audience
Questionnaires or online surveys that
determine what children want to see in
the new online streaming content
Parents Low in interest of project, but
high in power because Gem
must produce content that
parents will allow their children
to view
Questionnaires or online surveys that
determine what parents want in online
streaming content
Regular viewers Low in interest and power Utilize social media such as Twitter and
Facebook to update viewers with new
streaming service
Publish online articles to keep viewers
informed
Gem shareholders Highly interested and highly
powerful because they hold the
equity
Publish weekly newsletters that keep
shareholders in the loop
StreamTech
executive team
Interested, but succumb to the
needs of Gem because they are
clients
Ask Brant to choose a member from his
team to work with executive team in
answering any questions/concerns they
may have about the project
StreamTech
shareholders
Low in interest and power Utilize social media to update
shareholders with new streaming
service
Publish online articles to keep them
informed
Gem’s in-house IT
team
Highly interested because the
venture into streaming
potentially affects them
whereby (i) their
responsibilities expand to also
maintain and perhaps help with
future expansion of streaming
facilities (ii) they need to learn
new skills to facilitate these
new services (iii) they feel they
Hold training workshops that will teach
IT team the new skills needed
Host open Q&A sessions so questions
can be clarified and confusion can be
addressed right away
Communicate with IT team exactly
what their responsibilities are at weekly
meetings
Address any concerns or insecurities IT
team may at weekly meetings

may be replaced with more
outsourced IT in the future
Low in power because
ultimately executive team
decides when and what to
outsource
Rest of Gem staff Highly interested because many
may have to acquire new skills
to work with this new service,
but low in power because exec
team makes the decisions
Hold training workshops that will teach
staff about the new skills needed
Send out online survey to understand
what other struggles staff may have
with adjusting with new streaming
service
TV Channels
Content
Distributors
Although highly interested
because project succession
could lead to broken down
relations, they don’t hold power
in decision making
Communicate with content distributors
in a sit down meeting to hash out what
new agreement will be

GANTT CHART PROJECT PLAN

RISK ANALYSIS
As Gem productions embarks on a strategy changing project where we transform the
scope of the business, there are multiple risks involved with such an exploratory
project. Ultimately, the goal of the entire project team is to develop an atmosphere
which is understanding of the risks involved in a project which will revolutionize the
industry. High reward comes with a high risk, but failure of the entire project is
unacceptable because we view this as essential to our continued competitiveness of
the business. As a team, we will strive to produce an exceptional product,
understanding that short term problems can be fixed and whistleblowing come
consequence free but only when admitted and identified. Otherwise short term
problems will amount to long term crises and ultimate project failure. We are excited
for the possibilities of developing a direct to consumer business model.
Likelihood
Consequences
Insignificant Minor Moderate Major Catastrophic
Almost
certain
Likely
Possible
Unlikely
Rare
Key&of&Risk&Matrix;&analyzing&both&the&likelihood&and&consequence&
Risk Description Mitigation Plan Likelihood
Risk
Matrix*
(Magnitude versus
likelihood) Responsibility Accountability
Cyber Security
Piracy
Ensure up to date
copyright and security
protocols
Possible • Peter Brant Meena Shaw
Security threats and
cyber attacks; with our
customers putting
secure information on
the web for the first
time we must be
prepared to protect
their information
Research most up to
data cyber security;
consider bringing in risk
management
consultants
Possible
•
Peter Brant Meena Shaw

IT
Unsuccessful integration with
current systems
Update current website
and online systems to
work fluidly with new
system
Unlikely
•
Peter Brant and
Meena Shaw
Jenson Moore
Testing failures
delaying launch
Build in contractual
incentives for on time
delivery
Possible • Peter Brant Peter Brant
Cultural and Knowledge Transfer
Lack of adequate
training and
communication
among current Gem
Employees
Focus a portion of time
to knowledge transfer,
and technical training.
Ensuring that the staff
feels entirely
comfortable with
system before
StreamTech hands off
the project
Likely
•
Peter Brant and
Meena Shaw
Meena Shaw
Top management may
have a hard time
adjusting to this new
business strategy of
streaming
Keep communication
open and honest on
project progress with
top management.
Consider hiring
additional experts in
streaming and media
distribution on
management team.
Likely
•
Jenson Moore Jenson Moore
Marketing
Mason Manovich may
refuse to be involved
with the project
causing there to be
lack of promotion or
he may have a costly
price that exceed ours
budget
Continue to negotiate
with Mason Manovich;
however, begin looking
at other front men to use
in promotion of the
launch
Likely
•
!
Sheelagh Reeves Jenson Moore
Lack of promotion
due to limited
marketing budget may
cause the public to be
unaware of the new
streaming option, thus
causing a low ROI
Consider allocation of
project budget towards
marketing campaign.
Consider low cost
marketing strategies,
such as social media
and traditional cheaper
marketing promotions
such as email and
discounts. Ensure
marketing segmentation
to applicable target
consumers.
Possible • Henrick Jones Jenson Moore
Project Execution and Surfacing Outsourcing Issues

Project management
difficulties between
StreamTech agile
methodologies and
Gem's waterfall
techniques
Consultation,
workshops, and weekly
meetings with all team
members on agile
methodologies to
guarantee that there are
no miscommunications
between Gem’s
waterfall project plan
and StremTech’s agile
project plan. Clear
communication within
internal team.
Host colocation days
and have innovation
days between the teams.
Ensure integrated
working techniques to
foster a strategic
partnership for
innovation and learning.
Likely
• Meena Shaw,
Peter Brant,
Sheelagh Reeves
Jenson Moore
Scope creep because
of innovation style
project
Have a systematic but
inclusive process for
requirements changes,
requiring governance
signoff on requirements
changes after initial
Business Requirements
Document signoff.
Systematically allowing
change to be possible,
but ensure that changes
are discussed
transparently to ensure
that scope creep will not
get out of hand. Have
monthly scope quality
reviews.
Likely
•
Meena Shaw,
Peter Brant,
Sheelagh Reeves,
Jenson Moore
Meena Shaw,
Peter Brant
Culture classes
between StreamTech’s
younger, innovative
team and Gem’s
established, creative
environment
Scrum style weekly
meetings. Create an
environment of
transparent, flexible
communication.
Possible •
Meena Shaw,
Peter Brant
Jenson Moore
StreamTech going
over budget
Monthly budget
meetings with Peter
Brant and Meena Shaw.
Illustrate clear legal
ramifications for going
over budget and
creating a standardized
reporting of risk.
Consider a fixed cost
contract
Likely
•
Meena Shaw,
Peter Brant, Katie
O’Ryan
Jenson Moore
Public Branding

Public backlash at
increasing child
screen time
Market product as an
educational device.
Possible
•
Henrick Jones Jenson Moore
Failed product launch
threatening the
reputation of the
business
At a final Go/No Go
meeting have a critical,
unbiased assessment of
system functioning
Unlikely
•
Peter Brant and
Meena Shaw
Jenson Moore
Entering direct
streaming business
could threaten our
current partners such
as Mary Pearson and
lead to losses in
revenue from
traditional distribution
methods
Continue
communications with
old partners, explaining
shift in strategy and
offering them
consolations such as
bigger margins of
revenue from Gem
content
Likely •
Sheelagh Reeves,
Henrick Jones
Jenson Moore
Delayed launch
resulting in
competitors
developing similar
products children
targeted products
before Gem and
capturing market
advantages
Prioritize time and
quality over cost
Possible • Jenson Moore Jenson Moore
International Barriers
Different legal
ramifications of
content streaming in
international
countries, limiting
scope of business
Bring in local media
legal experts before
entering international
markets
Likely
•
Katie O’Ryan Jenson Moore
International Team
could face team
conflicts
Ensure clear team
communication across
time zones and effective
work sharing methods
Likely
•
Peter Brant,
Meena Shaw,
Sheelagh Reeves
Jenson Moore
Content language may
conflict with local
languages in new
international markets
Consult local cultural
experts before entering
new markets
Likely
•
Sheelagh Reeves Jenson Moore

International Content
Rating systems
differences preventing
entrance in new global
markets
Consult local cultural
and legal experts before
entering new markets
Likely •
Sheelagh Reeves
and Katie O’Ryan
Jenson Moore
Legal
Inability to stream
certain content due to
content creators—
such as Manson
Manovich—
contractual barriers
Pre-negotiate
contractual clauses to
ensure seamless
international expansion
Possible • Katie O’Ryan Jenson Moore
International Data
Laws causing
difficulties in entering
international markets
Bring in local legal
issues before we enter
into market
Possible • Katie O’Ryan Jenson Moore

LONDON SCHOOL OF ECONOMICS: DEPARTMENT OF MANAGEMENT
MG208: Business Transformation and Project Management
Feedback for Summative Group Assignment
STRUCTURE
Unsatisfactory □ Fair □ Good □ Very Good □ Excellent x
CLARITY OF ARGUMENTS
Unsatisfactory □ Fair □ Good □ Very Good □ Excellent x
USE OF MATERIALS
Unsatisfactory □ Fair □ Good x Very Good □ Excellent □
QUALITY OF WRITING
Unsatisfactory □ Fair □ Good □ Very Good x Excellent □
REFERENCING
Unsatisfactory □ Fair □ Good □ Very Good x Excellent □
Overall: Excellent ‘sell’ by the business case. Sections are out of order but the content of the
report is strong and the analysis is insightful.
Business case – Really excellent business case. Explores the alternatives but strongly sells the
way forward. (But a short summary of main options should be in the main document (business
case) with more detailed analysis in appendix.) Nice to substantiate the claimed benefits with a
table exploring the financials. Remember to conclude the business case by asking for approval
and budget release.
Stakeholder analysis – Very well done. Could have included a note about Mary Pearson in the
TV Channels/content distributors box.
Benefits review – Very well done. Put the most substantial benefits first – some of the most
significant ones were buried later in the table. It’s a long table and if the exec gets switched off
by the first few items they may only skim the rest thus potentially missing some important
material for the project.
Risk analysis – Excellent. The language that you choose in a risk analysis has to be diplomatic
so that you don’t scare the execs. The method chosen worked well
Project plan – Gantt printed way too small to read. Where are the assumptions? Need to have
them close by so that the exec can glance at them when they review the Gantt rather than
searching back/forth through the doc to make sense of it. The time allowed for contract
negotiations is too probably too short.
Grade: 72
I = First (70+) IIi = Upper Second (60-69) IIii = Lower Second (50-59)
III = Third (40-49) F = Fail (under 40)

Gem Production Streaming Project - Business Case Analysis (72: First Grade)

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