- 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
|Year 0||Year 1||Year 2||Year 3|
- 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.
- 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.
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- 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.
- 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.
Rainer, Kelly R. & Turban Efraim. (2009). Introduction to information systems, 2nd ed; Acquiring information systems and applications Ch 10. Web.