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Theme Park Company

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Theme Park Company: Replacement of Customer Relationship Management System and
Associated “Park Pass”
Logical and Reasonable Assumptions Made for the Project Scenario
The information system will lead to a reduction in the supervisory and
management costs of the park
The project will enable for an online booking through the its website and
application, which will lead to better services
The integration of the customer care systems will ensure that customers get higher
quality and better services through analysing their tastes and preferences.
The use of one online information system by all parks will lead to faster and more
accurate calculation of the business performance by its analysts.
The use of a cloud based online system will enable the company’s management
and field officers to constantly monitor the performance of the business as well as
to quickly respond to various issues that may arise.
The integration of the CRM and the park pass will lead to higher quality
customer care, which will result in more profitability
The use of an integrated information system by all parks will lead to a more
efficient reward system for customers who visit various parks.
Suitability of Solutions and Strategies Regarding ICT Assessments
The new information system must be assessed to find how it easily integrates
with the current parks operations, specifically on the “park pass” and online
payment.
A SWOT analysis of the impact of the project should be conducted.
A financial analysis of the project should be conducted to evaluate its viably.
Basically, this analysis can use a net present value method (NPV), the return on
investment method, or the payback period.
A feasibility analysis should be conducted to evaluate if the project will achieve
its desired objectives.
The NPV method evaluates the monetary gain of a project by discounting its net
benefits at the time of its termination. The higher the NPV, the more viable is the
project.
NPV Calculations Procedure: Determine costs and benefits of the project.
Determine the discounting rate as provided by the company.
Deduct the discounted net benefits with the discounted net costs to get the NPV
NPV= Discounted Benefits- Discounted Costs
The Internal Rate of Return (IRR) refers to an NPV that has a net gain of zero at
the time of its termination.
NPV is a suitable method since it shows the present value of future incomes.
The Return On Investment (ROI) refers to the profitability level of a project.
ROI Calculations: ROI= Net discounted benefits/Net discounted costs

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Payback period refers to the period of time that a project takes to repay itself. A
project with the shortest payback period is the most preferred option.
Projects that have various non income benefits use a weighted scoring model
such as the balance score card.
A balance score card measures the divergence of the projects results from the
expected ones. For example, have the number of repeat customers increased as
projected.
Appropriateness of Overall Costs and Resources Required to Undertake the Project
Development of new CRM system and associated “park pass”= $650,000
IT system annual license= $85,000
Vendor installation and testing= $12,000
Installation of new hardware= $165,000
Annual Server maintenance= $1,500
Annual reduced administration costs= $230,000
Annual increased shopping through “park pass”= $120,500
Annual online and app. shopping= $115,000
Annual increase in repeat customers= $42,000
Discounting rate is 15%
Development of schedule tools with key project aspects such as milestones, slack
GANTT CHART
Appropriateness of Cost-Benefit Assessment
The cost benefit analysis is able to have a quantifiable amount that the business
stands to gain or lose if it undertakes this project.
This analysis also discounts the benefits and costs to find the actual value of gains
or losses through NPV and IRR method.
A cost benefit analysis is paramount in the formation of a realistic and through
feasibility study.
It enables the management to remain focused on the main objective of
implementation of the system
It enables the management to avoid unnecessary costs that are incurred in failed
projects
Enables in the measurement of benefits that are a result of transfer and avoidance
of costs, direct and indirect gains, and financial and social benefits.
The NPV method is the most appropriate method for calculating the cost benefit
assessment of the project
The prevailing discounting rate is 12%
The project is expected to have a useful life of five years

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Theme Park Company: Replacement of Customer Relationship Management System and Associated “Park Pass” Logical and Reasonable Assumptions Made for the Project Scenario • • • • • • • The information system will lead to a reduction in the supervisory and management costs of the park The project will enable for an online booking through the its website and application, which will lead to better services The integration of the customer care systems will ensure that customers get higher quality and better services through analysing their tastes and preferences. The use of one online information system by all parks will lead to faster and more accurate calculation of the business performance by its analysts. The use of a cloud based online system will enable the company’s management and field officers to constantly monitor the performance of the business as well as to quickly respond to various issues that may arise. The integration of the CRM and the “park pass” will lead to higher quality customer care, which will result in more profitability The use of an integrated information system by all parks will lead to a more efficient reward system for customers who v ...
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