ABC Company has an outdated computer system for processing orders and managing inventory. As a result, ABC cannot offer same$-$day shipping, on$-$line order tracking, automated returns, and other capabilities that customers have come to expect. It has lost $10\%$ of its market share in the last two years, and net income this year is $15\%$ less than last year. The board of directors is demanding that management turn things around...and quickly.

Your assignment is to propose a solution to this problem to the company$$s executive committee. After doing your homework and discussing the situation with several colleagues, you identify four potential solutions:

Replace the existing system with a state$-$of$-$the$-$art system at an initial cost of $$3$ million and on$-$going costs of $$500$K per year. It would take $24-36$ months to implement a system of this size and complexity.

Enhance the existing system to provide the capabilities that are needed to be competitive. This would cost $$1-$$$2$ million and take about $12-18$ months to complete, but it would be a temporary solution since the existing system uses $15-$year$-$old technology.

Outsource order processing and fulfilment to a company that provides the needed capabilities. This could be done in six months or less, but it would be the most expensive option. ABC would also lose some control over the quality of customer service.

Sell the company since it will cost too much and take too long to solve its technology problems.