Business Information Systems Legacy Technology

Question: Discuss about theBusiness Information Systemsfor Legacy Technology. Answer: Introduction VoIP2.biz deals with the voice communications from the legacy technology to the VoIP technologies. However, this business organization is facing few cash flow issues. Thu, this study is aimed to portray the options for which this organization can stay with the current plan. This report also specifies why the company is closing down or selling to another firm. Moreover, this study also portrays the significance of slowing down the rate of growth and illustrates the ways through which the expenses can be reduced. Staying with Current Plan VoIP2.biz has considered itself as the system integrator that is operated with the business consumers for helping them in terms of moving their voice interactions between the VoIP technology and legacy technology (Brown et al., 2012). The current plan of VoIP2.biz management is for continuing to gain the dominance in to Indianapolis market, expanding the organizational business activities throughout Indiana. Moreover, VoIP2.biz management also intends for opening up an extra sales offices over the entire Midwest by making the position of a first mover within the marketplaces covered by them. VoIP2.biz management also has the belief the fact that the strategic success would make them a significant target for acquisition within 2009-2010 timeframe. Closing Down the Company Milkowski and VoIP2.biz management were aware of the fact that at least few board members were concerned regarding the VoIP future as the feasible commercial venture provided the current history of the Vonage of the best known VoIP organization (Brown et al., 2012). Milkowski has recognized the fact that VoIP2.biz attacked the market of small and medium business whereas Vonage was initially a service for the market of residence. However, VoIP2.biz management believe that the enterprise could not be sold for the lack of a positive cash flow amount (Brown et al., 2012). Thus, the members of this board though that the enterprise should be closed. On the other hand, this organization also knows that closing down the service would cause huge disruptions for his 22 consumers. Selling the Company Instead of closing down the organization, Milkowski has the idea that the enterprise can be sold to another enterprise. Therefore, Milkowski had contacted two enterprises who had related businesses over the Indianapolis area. Thus, Milkowski knew that VoIP2.biz management needs to develop as well as justify a proposed sale price in terms of recommending this course of action (Brown et al., 2012). VoIP2.biz management also had the idea regarding price that should be fixed based on the future earning potential. VoIP2.biz management also aware of the fact that the earlier investors would like to at least recover their investments made till date (Castellanos-Lopez et al., 2014). Apart from that, VoIP2.biz management also knew that this firm should also be concerned in fixing the price for the enterprise that the obtained 22 contracts has already represented pretty specific cash flow for the life of contract. Slowing Down Rate of Growth Slowing down the growth rate or in other words the economic slowdown takes place while the rate of economic growth slows in a certain economy. The rate of growth of Milkowski has been slowed down due to few significant limitations of VoIP services (Brown et al., 2012). The VoIP services provided by Milkowski are annoying as well as its offers are comparatively limited. Moreover, the VoIP complaints can be tolerable usually if the callers can be capable of utilizing a free service (Azfar, Choo Liu, 2014). Apart from that, due to the issues of traffic and latency as well as loss of service during outages, the number of customers has been decreased and the amount of expense has also been enhanced, which ultimately lead to slowing down the growth rate of the company (Mazurczyk, 2013). Asking for a 90-day Extension to take Care of the Cash Flow Problem Due to the issues encountered within the VoIP services provided by Miskowski, VoIP2.biz management has taken a decision to ask for an extension period of 90 days in terms of taking care of the cash flow problem that has been taken place due to certain service issues of VoIP operations (Brown et al., 2012). The key reason of asking for this extension is to reduce the expenditure obtained due to improving the conventional VoIP services to transform it to the contemporary VoIP services. Reduce Expenses In order to reduce the business expenditure and to mitigate the cash flow problem within the 90 days of extension period, VoIP2.biz has to implement few significant advanced and cost effective technologies within their business operations (Azfar, Choo Liu, 2014). This organization should think and take decision by considering the business operations operated by its major competitors like Vonage. This organization should utilize the national IP transport network in term of offering their business customers long distance and most specifically low-cost distance (Brown et al., 2012). On the other hand, VoIP2.biz management can also take the significant step by outsourcing the business operations of VoIP2.biz and avoiding perpetual payments. Other Possibilities Milkowsky started to consider other possibilities for overcoming such negative scenario as he has thought regarding what he was going to present to the board. The first option or possibility was for moving forward with the Phase II Plan (Brown et al., 2012). VoIP2.biz has few accomplishments for the investment about $1 Million to date. These are as follows: Debugged and tested the technology, selecting based on the components to be incorporated in its set of solution (Brown et al., 2012). Completed the network technology installation for supporting deploying the VoIP solutions at the customer sites (Castellanos-Lopez et al., 2014). Conclusion After conducting the entire study, it can be seen that VoIP2.biz is suffering from few major cash flow problems due to the excessive expenditure. Due to such issues, VoIP2.biz has to take a decision of selling or closing down the company. Therefore, this report has successfully portrayed the way through VoIP2.biz can overcome such issue by taking an extension of 90 days so that VoIP2.biz does not need to close the business or sell the company. References Assem, H., Malone, D., Dunne, J., O'Sullivan, P. 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