ICTSAD609 - Simulation Pack

Case Study – WORLDUCATION

Worlducation is a social startup that manufactures tablet computers for primary school students. They
not only focus on the hardware, but they also have a competitive team creating software, content and
activities to better engage and educate the students.
Worlducation aims to change the way children learn at school by implementing artificial intelligence
technology that can follow up on each child’s progress and adjust to their needs as they learn,
creating the optimal path learning experience.
So far, Worlducation only sells their tablet computers business to business (B2B) as they realised that
their content and hardware proved most effective when a whole classroom was using it, and a teacher
was coordinating the activities. Also, this helped the sales team focus on larger sales, and minimised
the potential number of problems that could arise from individual customers. However, the long-term
plan is to also tackle a business to consumer strategy (B2C).
What makes Worlducation completely different from their competition is that they envision a world in
which every child learns how to read and write – a world without illiteracy. Given this vision, for every
classroom that buys their products, they donate and train a classroom somewhere around the world
that can’t afford the same technology. Furthermore, they connect the two classrooms (those who
bought the products and services and those who received the donation) so that they can grow
together and collaborate throughout their learning cycle.
Worlducation was founded in 2016, and by the end of 2019 they had sold over 35,000 tablets to over
550 schools in 23 countries, generating revenue in hardware sales and software subscriptions.
Worlducation headquarters are in Sydney’s CBD but they have a development team in Bulgaria, a
manufacturing team in Hong Kong, and operation and marketing staff in Colombia, Egypt, Iceland,
Russia and the Philippines.
Worlducation started 2020 with a huge sale to a school in Portugal. Although it was a great start, the
context for the rest of the quarter was highly uncertain due to COVID-19. Surprisingly the pandemic
brought hundreds of new leads and that led to an unprecedented growth that brought alongside
dozens of operation and production problems.
The factory in Hong Kong closed down for 1 month due to government restrictions limiting supply, the
sales team was overwhelmed with sale meetings over ZOOM, the tech-support team had to re-adapt
the software to remote learning for many of the schools, and the founders had to start thinking on how
education was going to change after this worldwide event.

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Specific information needed for this assessment

Worldcation has a complex supply chain that begins when a sale is made usually via a sales
representative or through and online enquiry that is handled by the sales team. Sales are recorded in
an internal Enterprise Resource Planning System (ERP System) which notifies the operations team
that an order needs to be delivered. The operations team verify the sales order and authorise the
delivery of a manufacturing request to the factory in Hong Kong. Manufacturing team in Hong Kong
notes the order specifications and delivery details and incorporates this within its production schedule.
The order is manufactured and the operations team arrange freight and shipping directly to the
customer.
Since COVID-19 and the closure of the factory due to government restrictions, of the 2000 tablets due
to be shipped by April, only 500 were completed on schedule. Furthermore, the rising tension
between mainland China and Hong Kong has added to the uncertainty.
In 2019, Worlducation generated a revenue of $35 million, a net profit of $7 million and net cashflow
of $4 million. They budgeted revenue of $45 million for 2020, net profit of $9 million and net cashflow
of $5 million. However, following the unprecedented growth in demand and disruptions to the supply
chain, management now projects 2020 revenue will amount to $55 million, net profit of $5 million and
net cashflow of negative $3 million. The decrease in profit was a result of the disruption to the
manufacturing process and the associated solutions implemented by Management.
The projected growth in revenue is expected to require a significant investment in working capital
(both inventory and debtors) and this combined with an expected decline in profit margin is projected
to result in significant cash flow pressure in the latter half of 2020. Management is considering its
options to fund this investment.
In the past, senior executives met to brainstorm and provide cost estimates for future business
models. Options included establishing a second manufacturing facility (estimated cost $5 million),
outsourcing manufacturing to a third party (lost margin of $200 per unit sold or $2 million per year
assuming 10 000 units are sold), developing a cloud based solution where customers can access the
software remotely on their own devices (estimated cost of $2 million), purchasing off the shelf tablets
(lost margin of $300 per unit sold or $3 million per year) or repurposing used tablets ($100 per unit
sold or $1 million).
ICT consultants charge $150 per hour and developers cost $100 per hour. Internal costs related to
the role of a business analyst is $80 per hour. Senior management incur an internal cost of $300 per
hour.

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Strategic Plan 2020 – 2022

Welcome
Welcome to the Strategic Plan for Worlducation.
This document sets out our vision for the next two years and how we hope to achieve it.
We hope you enjoy reading this document.

Lucas Lopez
CEO
Worlducation

Executive Summary
Founded in 2016, Worlducation is a social startup that manufactures tablet computers for primary
school students. Our focus is not only on the hardware, but also creating software, content and
activities to better engage and educate primary school students.
Worlducation aims to change the way children learn at school by implementing artificial intelligence
technology that can follow up on each child’s progress and adjust to their needs as they learn,
creating the optimal path learning experience. Worlducation envisions a world in which every child
learns how to read and write – a world without illiteracy. This is why, for each classroom that buys our
product, we donate and train a classroom somewhere around the world that can’t afford the same
technology. We then connect the classrooms together so that they can grow and collaborate
throughout their learning cycle.

Vision Statement
To see a world without illiteracy.

Mission Statement
To be the change and facilitate a world without illiteracy by changing the way children learn at school
and the number of schools that have access to technology.

Our values are:

Core values underpinning our activities are:

• Ethical principles

• Innovation

• Collaboration.

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Strategic Priorities
To be well led, high performing, profitable and accountable.

• Ensure that all financial operations, performance indicators and results support the strategic
policies

• Identify new and expand existing sources of revenue and ways to help more classrooms in need.

• Achieve profits of at least 10% per annum.

Increase our reach

• Increase range of products and services offered to reach a larger target market

• Increase sales to increase donations to needy classrooms.

Continue building deeper customer relationships

• Customer-centred practice, with a focus on meeting their total needs for high-quality technology

• Strengthen the skills of our people, to better support customers

• Drive innovation to better meet customer demands

Attract, engage and develop the best staff

• Continuing the drive to a customer centred, high performance workforce and culture

• Strengthening the skills of our people, to better support customer needs

• Empowering innovation and responsiveness to change

• Continuing to enhance the diversity of our workforce

• Exploring the use of technology in human resources.

The Market
The technology market is a growing and ever-changing industry due to the rapid rate that technology
is being updated. Emerging technologies include artificial intelligence and the Internet of Things (IOT).
There is an increasing focus on cyber security.
Due to the global pandemic, the issues with the manufacturing industry have impacted on the supply
of hardware components.
The trend for consumer spending during the pandemic has taken a downturn but this has not affected
the ICT industry as due to more people working form home, consumer appetite for tablets has
increased.

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Situation Analysis

Strengths Weaknesses

• Value and quality • Brand name not developed as well it could

be
• Strong management
• Growing organisation
• Customer loyalty

• Friendly organisational culture

• Level of available finance for investment

Opportunities Threats

• Schools needing to upgrade technology • High level of competition

• Opportunities to offer a range of services • Economic downturn meaning less spent

generally
• Opportunities for synergies across all
services and products • Failing to satisfy clients demands

Marketing Strategies
Our marketing strategies aim to:

• Build our brand

• Generate leads now

• Convert those leads quickly

• Have every part of the business supporting each other

We plan to develop our market share by:

• Improving our marketing and advertising

• Continually improving the quality of service given to clients

• Maintaining effective communication channels with all stakeholders to ascertain industry

requirements and then develop products and manage services accordingly

• Continually improving communication channels with all our stakeholders, ensuring a flow of
timely and accurate information to facilitate effective planning and decision making

• Targeting identified growth markets with planned, market appropriate campaigns employing a
variety of promotional strategies and advertising mediums

• Offering attractive fee structures to our clients

• Continually improving the skills, knowledge and effectiveness of our team through our
commitment to training and development

• Regularly reviewing the effectiveness of all our operations and making improvements when and
where necessary

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Key projects
The following key projects commenced in 2020:
Due to global economic conditions, a wait and watch attitude is being adopted while we brainstorm
and provide cost estimates for future business models. Options include establishing a second
manufacturing facility (estimated cost $5 million), outsourcing manufacturing to a third party (lost
margin of $200 per unit sold or $2 million per year assuming 10 000 units are sold), developing a
cloud based solution where customers can access the software remotely on their own devices
(estimated cost of $2 million), purchasing off the shelf tablets (lost margin of $300 per unit sold or $3
million per year) or repurposing used tablets ($100 per unit sold or $1 million).
Key projects planned for 2021 include adapting hardware and software to meet changing education
needs due to COVID-19.

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Finance Authorisation Policy and Procedures

Purpose of the Policy

All finance transactions as noted in this policy are to be authorised by the noted authorised person
prior to the transaction being undertaken.
This policy is to be read in conjunction with other specific finance policies where relevant.

Procedures
Prior to any finance transactions being undertaken, Anna Armstrong must authorise the transaction.

Use of Business Credit Card

Purpose of the Policy

This policy provides guidelines for the issue and use of business credit cards.

Procedures
An employee will only be issued a credit card once the Credit Card Authorisation Form has been
completed.
The business credit card can only be used for travel, authorised entertainment and purchases of small
value expenses or equipment up to the value of $500.
No cash advances are to be taken using the business credit card unless authorised by Anna
Armstrong.
Where a business credit card is lost or stolen, the owner of this card is to notify the Business
Manager, who is responsible for notifying the issuing agency and ensuring the card is cancelled.
The business credit card is not to be used for personal expenses.
All holders of business credit cards are required to reconcile the monthly credit card statement to the
expense form, attach all receipts for payments made on the credit card and have the expense
statement authorised by Anna Armstrong.
Upon completion and authorisation of the monthly expense statement, these documents are to be
forwarded to the Business Manager for payment of the credit card statement.
All business credit cards are to be returned to the business when the person is requested to by the
Business Manager or where they are no longer an employee of the business.

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New Supplier Policy

Purpose of the Policy

All new suppliers to the business must be reviewed and accepted in accordance with this policy to
ensure that the supplier service is aligned with the business objectives.

Procedures

Choosing a New Supplier

A new supplier must provide our business with quality products, great service, competitive pricing and
efficient delivery.
The following information table must be completed prior to agreeing to services

Supplier Selection Background Information

• Business Name of Supplier:

• Location of Supplier:

• Products/Services provided by supplier: (Attach a list if necessary)

• Name of business owner/ sales representative:

• For how many years has the supplier been trading?

Supplier Selection Review Checklist

For each new supplier being considered the following checklist must be completed:

• Is the supplier pricing competitive? Attach list to this checklist:

• What are the payment terms for this supplier?

• What is the return policy for this supplier?

• Does the supplier provide warranties, guarantees etc.?

• Are the suppliers’ representatives knowledgeable of the products/ services and industry?

• Is there an alternative to this supplier, has the alternative supplier been considered?

• What are the delivery services of the supplier?

• Has a credit check been undertaken for the supplier? (attach to this checklist)

• Has the Personal Property Securities Register (PPSR). been reviewed?

• Has the supplier been trade checked? (attach this to this checklist)

• insert relevant additional information to assist in the decision of appointing a new supplier

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Appointment of Supplier
The appointment of a new supplier will be authorised by the Business Manager.
The Business Manager will independently verify the bank account or other payment details of the
supplier to ensure payments made are to the correct supplier

Supplier Payment Terms

All purchases from suppliers must be supported by a purchase order.
Payment terms for all suppliers must be reviewed by the Business Manager at least once a year.
All supplier payment terms must be a minimum of 30 days.
Any variation to the above must be authorised by the Business Manager.
All supplier payments are to be reviewed once a quarter to ensure that payment terms are adhered to.
For payments made to any suppliers earlier or later than the agreed terms.

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Privacy Policy and Procedures

Scope
This privacy policy outlines how Worlducation protects and handles personal information in
accordance with its obligations under the National Privacy Principles (APPs) contained in the Privacy
Act 1988 (Cth) (Privacy Act).

1. Collection of information
1.1 Worlducation collects personal information relating to individual creators, publishers,
licensees and IT professionals as part of the normal course of its business.
1.2 Where possible, Worlducation collects personal information directly from the individuals
themselves.
1.3 Third party collection: Worlducation may also collect personal information from third parties
in accordance with the requirements of the APPs, including:

• From other rightsholders of a work, including the publisher. This is restricted to

information which will assist in member recruitment or payment to rightsholders, such
as contact and entitlement information. If Worlducation cannot collect that personal
information from other rightsholders, its ability to efficiently recruit and pay rightsholders
will be restricted;
• Worlducation has agreements with similar organisations in other countries that enable
the use of foreign text and images in Australia, and the collection of fees and royalties
for the use of Australian works overseas and may collect information in this process;
• From the public domain from third party sources such as social networking services,
industry directories, industry guides, and the Internet; and
• Through purchased mailing lists and business database lists which are used for
sending Worlducation marketing material, where recipients have consented to receiving
such communications or it would be reasonably expected of us to use or disclose the
information for that purpose.
1.4 Websites and online services: a variety of information is collected by users of our Websites
and online services.
1.5 Emails and electronic forms: our servers may record an email address if a message is sent
online. An email address will only be used for the purpose for which it has been provided
and it will not be added to a mailing list or used for any other purpose without consent.
1.6 Google Analytics: Worlducation uses Google Analytics to collect data about users’ usage
and behaviour on Websites. This information is used to improve the Websites and is not
used by Worlducation to personally identify users of the site. All tracked data is
anonymously collected in accordance with Google Analytics’ privacy policy. Refer to
Google’s privacy policy for further information: http://www.google.com.au/policies/privacy/
1.7 Cookies: Worlducation uses session ‘cookies’ to help analyse how users use their Websites.
The cookie-generated information generated about the use of the website (including IP
address) will be transmitted to and stored by our service providers on servers hosted in
Australia. By using our website, users consent to the processing of data about them in the
manner and for the purposes set out above.

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2. Anonymity
2.1 We provide the option for individuals to not identify themselves, or of using a pseudonym
when dealing with us. In some circumstances, if a choice is made not to provide the
information requested we may not be able to provide certain services.
2.2 We do not provide this option in circumstances where it is impracticable to do so or where
Worlducation is legally required to deal with identified individuals only.

3. Use and disclosure of personal information

3.1 Worlducation uses and discloses personal information for the primary business purposes for
which it is collected (set out above) and related management purposes.
3.2 Worlducation uses and discloses personal information for any other purposes to which
consent has been given.
3.3 Worlducation will not otherwise use or disclose personal information without consent being
given unless otherwise required or authorised by law.
3.4 Subject to the requirements of the APPs, Worlducation may also use and disclose personal
information for any other related purpose that one would reasonably expect the information to
be used or disclosed.

4. Marketing material
4.1 Worlducation may use personal information, from time to time, to send to marketing material
that we consider will be useful, or other material about our activities.
4.2 Worlducation will only do this if we collected the information and one would reasonably
expect us to use or disclose the information for that purpose, or if consent has been given to
receiving such communications.

5. Personal information storage and security

5.1 Worlducation takes reasonable steps to protect personal information from loss, unauthorised
access, modification, disclosure, interference or other misuse. These steps include electronic
access restrictions for electronic files that contain personal information, securing paper files
containing personal information in locked cabinets and physical access restrictions.
5.2 Once collected, Worlducation holds personal information in a number of different formats,
including on servers (located both onsite and offsite, including in the cloud), databases, filing
systems and in offsite backup storage.
5.3 Worlducation only retains personal information for as long as it is required for its business
purposes or for as long as required by law. Any information that we no longer require is
destroyed securely. An exception to this may be retention of the information for data analysis.
However, if this occurs, the information will be retained in a form that does not allow you to
be identified from that information.
5.4 Worlducation undertakes not to disclose your personal information in any manner that would
be considered direct marketing.

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6. Digital security
6.1 Input devices such as thumb drives or other external memory devices should only be used if
they come from a trustworthy source.
6.2 Before opening a thumb drive folder, ensure that a malware scan is run on it.
6.3 Files that are to be modified should first be saved to the computer’s desktop and the thumb
drive ejected before beginning work on the files.
6.4 All files should be saved to the relevant folder, and not left on the desktop.
6.5 Back up of data should be performed at the end of every week. The data should be backed
up onto an external memory device, which will be stored in the security cupboard in the
Administration office.

7. Internet security
7.1 A mailbox should be created for each email sender so they can be accessed efficiently.
7.2 Before logging off from your inbox, ensure that it is empty. All emails should be placed in their
sender’s mailbox.
7.3 Suspicious or potentially dangerous emails should be deleted immediately. Attachments
should not be opened.
7.4 Personal emails should not be opened at work, or on King Edward VII College’s computers. If
an email of a personal nature is received on a King Edward VII College’s email address,
forward it immediately to a private email address, and open it outside work. Delete the
original email from the inbox once it has been forwarded.
7.5 Returned email should be examined to ensure that the address in correct. If in doubt as to
the correct address, contact the source of the address and ask for verification.
7.6 Email attachments should only be opened if they come from a trusted source. Attachments
are to be stored and sent only as pdf, Word, PowerPoint or Excel files. If trustworthy emails
are received in other formats, they should be converted before filing.
7.7 New staff must be assessed on their email competence by their manager before they are
given access to their company email address and access to company files. This assessment
is to be carried out on an external email account.

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Performance Management Policy and Procedures

Purpose
To ensure that all employees and their supervisors are aware of the expectations and opportunities
available for planning, managing, reviewing, recognising and improving individual employee
performance.

Scope
This policy and procedure applies to all permanent employees.

Procedures

Performance review process

Each employee will participate in at least two reviews each year. This will consist of an annual review
and an interim review, to be conducted six months after the completion of the formal review.

Reviews are designed to:

• assist employees to be fully aware of their responsibilities and duties and the effect these
have on Worlducation’s operations.

• provide feedback to employees on the performance of these responsibilities

• provide a basis for further professional development of employees

• identify employees whose continued high-quality performance should be recognised and

rewarded

• identify employees where performance is of concern and may require remedial action

The performance review process is to be conducted in accordance with the principles of procedural
fairness and transparency.

Employees may be assisted by a representative at any stage of the performance review process.

Managers will arrange a meeting time with the employee for the performance review.

Managers will meet with the employee who is the subject of the review and discuss past performance
and future goal setting and development plans.

In rating the overall performance of an employee, Managers will assess the Employee against the
following performance ratings:

• exceeds expectations

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• meets expectations

• development encouraged

• improvement required; or

• unsatisfactory performance.
Managers may consult other employees whose judgements they believe may be helpful in completing
the review.
Employees are encouraged to provide relevant information on their performance and take an active
role in appraisal and planning.
The Manager and employee will complete the review using the performance review template.
Managers and employees will also identify required professional development for the year.
The employee must be given the opportunity to read, comment on and acknowledge the documented
review.
Where an employee is not satisfied with the overall assessment recorded in the review they should
initially discuss these concerns with their Manager.
Where the Manager and the Employee are unable to resolve the concerns, the Employee can request
that the matter be referred to the Managing Director for a review of the overall assessment.
The Managing Director may seek further information from the Manager and employee and consider
all documentation and make a final decision.
Once the Supervisor has completed the review, it will be stored confidentially in the staff members’
files.

Rewarding employee performance

All employees receive an annual incremental increase in their salaries as per their employment
contracts.
However, where an employee’s performance consistently and significantly exceeds the agreed
performance indicators n greater increase may be negotiated. This only applies to the annual
performance review. Promotions may also be available.

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Documentation Policy and Procedures

All employees are required to use Worlducation’s templates for all workplace documentation.

Documents should be named [Department_Type_Detail_Version]

Documents are to be saved using Worlducation’s cloud-based storage system.

In-built software review functionality should be used, and all comments recorded in a feedback
register.

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Cloud / Host / SaaS Policy

Purpose:

This Policy and related documents provide a framework to assist in the assessment of potential cloud
/ hosted / SaaS solutions and arrive at a decision that results in reduced risk to Worlducation and its
clients.
This Policy aligns with the University’s goal to deliver education services in the most cost-effective,
efficient, convenient and secure manner

Scope:

This Policy applies to all departments of Worlducation who are considering a cloud / hosted / SaaS
solution or have already engaged with a solution. All areas must comply with Worlducation’s
procurement requirements as part of their consideration of a cloud / hosted/ SaaS solution. If any
provision of this Policy is found to be inconsistent with the provisions of a collective agreement, the
collective agreement will prevail, unless the Policy provision is required by law, in which case the
Policy provision will prevail.

Policy Statement:

The security of the Worlducation and its customers and the integrity of Worlducation data in a cloud /
hosted / SaaS solution must be paramount at all times. The risks of utilizing a proposed cloud / hosted
/ SaaS solution must be explicitly identified and assessed by the area contemplating or engaged in
such a solution. The area must work with ICT department to identify, document and assess risks of
the proposed solution.
Appropriate controls must be implemented to address key known risks for a cloud / hosted / SaaS
solution engaged by any area.
Anyone who has reason to suspect a deliberate and / or significant violation of this Policy is
encouraged to promptly report it to the ICT general manager. Policy violations will be assessed and
action taken to remediate the violation, including consequences where appropriate. Where Policy
violations are considered severe and / or cannot be easily remediated, the incident will be escalated
to the Board of directors.

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Software development policy

Purpose:

The purpose of this Policy is to standardize software development for all enterprise-level centrally-
managed mission critical web applications and web services through the use of industry leading
practices. These applications and services typically deal with sensitive data and / or HR-, finance-,
customer-, student record- or course related data, and due diligence in protecting this data is
required. Standardizing the development approach and coding techniques for critical systems will
ensure their maintainability, security, protection against cyber-attacks and accessibility.

Scope:

This Policy applies to all employees, consultants and / or contractors involved in the development or
modification of enterprise-level centrally-managed mission critical applications that support
Worlducation. If any provision of this Policy is found to be inconsistent with the provisions of a
collective agreement, the collective agreement will prevail, unless the Policy provision is required by
law, in which case the Policy provision will prevail.

Policy Statement:

The ICT department is responsible for developing, maintaining, and participating in a System
Development Life Cycle (“SDLC”) for Worlducation projects. All software developed in-house which
runs on production systems must be developed according to the SDLC. At a minimum, this Policy
addresses the areas of preliminary analysis or feasibility study; risk identification and mitigation;
systems analysis; design specification; development; quality assurance and acceptance testing;
implementation; and post-implementation maintenance and review. This methodology ensures that
the software will be adequately documented and tested before it is used for sensitive Worlducation
information. All enterprise-level centrally-managed mission critical applications developed at or for
Worlducation must adhere to development standards and procedures documented in the Software
Development Policy and Application Development Standards guide. These standards include: coding
techniques, testing strategies, documentation requirements and software release processes that align
with industry standards and regulatory requirements. There must be a separation between the
production, development and test environments. This will ensure that security is rigorously maintained
for the production system, while the development and test environments can maximize productivity
with fewer security restrictions. Where these distinctions have been established, development and
test staff must not be permitted to have access to production systems.

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