Club IT: Wireless Order-Taking System Presentation

ROI

• Enhanced ticket sales and revenue;
• Reduction in employee costs and lesser number of staff;
• Precision and accuracy in order-taking;
• Reduced waiting-time for customers;
• Reduced costs of distribution and printing;
• Increased efficiency in operations without mistakes.

Calculation of ROI

• Investment $ 35,000
• Total Return for 3 years $ 71,508
• Net Return $ 71,508-$ 35,000 = $ 36,508
• ROI (for 3 years) = $ 36,508/$ 35,000 * 100 = 104.3%
• Annual average ROI = 104.3%/3 = 34.77%

Calculation of NPV

• Cost of Funds 7%
• NPV$25,750.65

Factors to Consider

• Reduced requirement of time of existing employees.
• Immediate cash outflow of $ 35,000.
• Training of employees to use mechanized system – time and cost.
• Over the period, ROI will ensure increased cash flow.
• Over the period, enhanced sales and reduced manpower will lead to increased profits.

Digital Dashboard

• Microsoft Office 2000.
  • Customized to provide access to employee filed, email, company databases, & web sites.
  • More beneficial than web portals.
  • Customized information for each employee.
  • Based on Microsoft Office 2000; exemplary support and technical service.
• Digital Dashboard Starter Kit from Microsoft.
  • Easily used by all employees.
• Microsoft Data Engine (MSDE).
  • Organizational software compatible with SQL server.
• One or more HTML page.
  • Provides framework functions of a digital dashboard.

Joint Application Design (JAD)

Implementation of Joint Application Design (JAD) is worth considering from an IT perspective for enhancing the organizational efficiency. “is a group-based tool for collecting user requirements and creating system designs. JAD is most often used within the system analysis and system design stages of the SDLC” (Rainer & Turban, 2009 ¶ 74). However the system is time consuming and requires provision of extensive training to staff.

Implementing JAD

• Research available systems.
• Address options, employee preferences:
  • Time sheets;
  • Work schedule;
  • Menu updates;
  • Tip tracker.
• Develop system programmed to specific needs of Club IT.
• Implement testing phase and utilize kiosk.
  • Gather inputs for changes or adjustments.
• Begin employee training and use of kiosk.

Recommendation

• ROI at 34.77% is a good return and NPV is positive at $ 25,750.65. Therefore the project is viable to consider.
• Implementing Digital Dash Board of Microsoft would make running the current Club IT as an efficient organization having a sustainable competitive advantage over the competitors.
• It will also enable Club IT open more outlets with operating in an efficient and cost-productive way.
• Training of the staff is an important task which Lisa has to consider.
• Looking at the cash flows for the immediate investment on the system is another factor to consider.

Reference

Rainer, Kelly R. & Turban Efraim. (2009). Introduction to information systems, 2nd ed; Acquiring information systems and applications Ch 10. Web.