Nortel Networks is a leader in delivering communications capabilities with next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to eliminate barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world.

Project Summary

Established a business and project plan for DMR to acquire the rights to a software suite and the associated 250 development and support staff.

Background

Nortel had invested over M$200 CND to develop two corporate systems (Time and Expense Reporting and Personnel). These systems were complete and in production.  The same level of staffing was not required for maintenance and support as development (about 250).

Executives, in an innovative approach to cost cutting, were interested in proposals in the concept of transferring ownership to an organization that would repay the cost of development in exchange for transferring the development staff and the marketing rights to develop software products for the market.

The vision was that Nortel would recoup its development costs, unburden itself of the cost of the development team without separation costs, transfer ownership to an organization that would turn the systems into products that would be sold to other organizations and Nortel would pay a user licence and benefit form future enhancements and development.

Requirement

Document the business case for acquisition of the systems, transferring the development teams, and operating a software product operation. Develop a proposal to the client for their decision.

Approach

Review each application system’s documentation, service level requirements, technology platform, design, code and history to: 

• Assess change plans, staffing requirements, skills, staffing levels, and cost estimates. 
  
• Combine staffing, skills, technology, space to develop business unit requirements.
• Conduct a facilities search to determine space costs.
• Develop processes and budget for set-up, transition, and ongoing operations.
• Gain internal DMR approvals at each step
• Write proposal to show highlights of factors contributing to service levels and costs and provide basis for contract negotiation.