Information Technology Proposal
Example
Agenda
•
Business Context
•
Problem Description
•
Technological Solution
•
Quantitative Solution
•
Qualitative Solution
Business Context
▪
Inspection Department from the Department of Justice
▪
24 Headquarters auditors who conduct financial and program audits
▪
56 field offices across the US, 3 teams requiring auditors, case agents, logistics specialists, inspector
▪
Procedures:
Conduct Manual Audits on location over a two-week period
Managed in Excel / Word documents
▪
Purpose:
Eliminate Excessive Expenditures of travel, logistics and supplies
To provide a more strategic and collaborative view across the field offices
Eliminate Redundancies by updating in real time
▪
Stakeholders include HQ Financial Auditors, HQ Case Program Managers, Field Office Internal Auditors,
Agency Director, Information Security Systems, and Certification & Accreditation Change Management
Office.
Business Problem
▪
Excessive resources required to conduct manual audits
▪
Financial and program audits performed using manual procedures
▪
▪
Microsoft Excel used to create audit work papers
▪
Inconsistent format, content, and inefficient tool for audit work papers
▪
Supervisory & Peer Review often not thorough due to extensive amount of documents to sign
▪
Work papers consistently included irrelevant documents and incomplete signatures
Outdated Audit Programs
▪
▪
Manual process resulted in routine programs that were rarely changed
Exceptions / Findings – lack consistency, not stored in one place
▪
Difficult to make internal control recommendations that benefit the agency
▪
No system for comparing exceptions across each office
Business / Technology Solution
▪
TEAMMATE AUTOMATED AUDITING SOFTWARE
▪
Automated Auditing with the ability to create electronic work-papers
▪
Automated creation and signing of work-papers
▪
Accuracy in preparing and completing work-papers
▪
Current, accurate and complete auditing mandated by the electronic environment
▪
Accuracy in supervisory and peer reviews of audits
▪
Consistency in audit reports briefed to agency heads
▪
Ability to capture exceptions noted in an automated environment and in one place
▪
▪
Identify common strengths and weaknesses across the agency at a glance
▪
Strengthen management’s ability to make strategic plans related to internal controls
Eliminate client’s requirement to mail documents for auditor’s preliminary risk assessment
Business / Technology Solution
▪
Technical objectives – convert manual auditing process to an automated auditing
▪
Phase I
▪
▪
▪
▪
Obtain Stakeholder by-in
▪
Meet with PWC for demonstration and agreements
▪
Procure software, laptop computers
Phase II
▪
Convert manual audit programs, work papers, exceptions and regulations
▪
Train first group of Financial Auditors with PWC
▪
Plan & Conduct pilot of small field office
Phase III
▪
Train second group of auditors (first group after perform field pilot train second group)
▪
Conduct Pilot #2 and #3 at one medium office and one large office
Phase IV
▪
Eliminate all manual audit procedures
▪
Work with Information Technology, Security, and Change Management to achieve Certification and Accreditation of the
Software for use on the Organization’s main system
Quantitative Justification - Costs
Server & Maintenance 5 year
estimates
Server Initial Cost
FY18 - FY19 O&M
FY20 - FY21 Refresh
TeamMate Software License (50 @
$354 ea)
O&M (License Renewal Fees w/ 8%
increase negotiated with PWC each
year after FY17 for the next five
years)
FY17
FY18
FY19
FY20
FY21
Total five year cost using FY15 rates
$
5,000
2,000
5,250
17,700
$
19,116
20,645
22,297
24,081
26,007
142,096
Quantitative Justification - Benefits
Annual Cost
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Airfare
Ground
Transportation
Lodging
MI & E
Storage &
Facility
Supplies
Qualitative Justification
▪
Automated project flows & reminders
▪
Intuitive features reduces training time
▪
Customized reports
▪
Reduced travel burden
▪
Reduced human errors
▪
Reduced duplication of efforts
▪
Increased knowledge sharing
▪
Reduced manual entry/input
▪
Improved cross referencing
▪
Improve audit trails
▪
Remote access – ability to work from home and
at field site
▪
Culture of continuous auditing; quickly
analyze information
▪
Automatic and customized reports
▪
Reduced timeframe to complete audits
Questions?
WHAT’S THE PROBLEM?
Company: Herndon Swim Club, Small pool in the
Herndon Community owned by shareholders and run
by Board of Directors
Background: As the pool manager, one of my duties is to
restock supplies such as toilet paper, paper towels
and cleaning products as needed during the summer
What needs to change: We need a better system for
restocking supplies as the current system is inefficient
and costly
THE SOLUTION
Amazon Dash Button is a Wi-Fi connected device that reorders your favorite
product with the press of a button
HOW MUCH IS THIS GOING TO COST?
Initial Investment: Dash Button price= $0.99 * 6 = $5.94
Amazon Prime Membership (includes free shipping): $10.99/ month
Product costs per month:
•
Bounty Paper towels: 12 roll pack = $10.67 * 4 = $42.68
•
Cottonelle Bath Tissue: 36 roll pack = $19.47 *2 = $38.94
•
Lysol Wipes: 3 packs = 8.52 * 2 = $17.04
•
Lysol Toilet Bowl Cleaner: 4 pack = $11.36
•
Clorox Clean up Cleaner pack: 2 bottles = $13.11
•
Hefty Trash Bags: 90 bags = $13.36
Total cost per month = $147.48
HOW MUCH DOES THIS SAVE?
Price per month (using prices at Target):
•
Bounty Paper Towels: 12 pack = $18.99 * 4 = $75.96
•
Cottonelle Bath Tissue: 36 pack = $17.99 * 2= $35.98
•
Lysol Wipes: 1 container = $3.14 * 6 = $18.84
•
Lysol Toilet Cleaner: 1 bottle = $4.79 * 4= $19.16
•
Clorox Clean Up Cleaner: 1 bottle = $2.79 * 2 = $5.58
•
Hefty Trash Bags: 1 60 ct box = $ 9.99 * 1.5 = $14.99
•
Paid time to buy supplies: = $12/hour * 1 hr/week = $48
Total monthly cost = $218.51
Total saved per month with Amazon dash buttons = $71.03
Payback period = 3 days (if assuming cost is divided over 30 days per month)
WHAT’S THE OVERALL BENEFIT?
•
•
•
•
•
•
•
•
•
Amazon Dash Buttons offer a fast and efficient process to reorder the supplies we
need
It saves time for myself and other future managers
It enables anyone to order more supplies – Buttons could be kept in the kept in the
guard office and when guards close the pool at night they will able to order the
supplies that we need
Eliminates the issue of possibly running out of supplies before someone has time to go
out and buy them
Eliminates the need to turn in receipts and file checks to pay back the manager
Able to buy in bulk
Although some supplies are more expensive through amazon, shipping is included and
it eliminates the need to pay the manager to buy supplies
The pool gains an amazon prime membership for various other supply orders and
needs
It saves 33% on the cost of supplies, the total cost of investment is incredibly low, and
and the payback period is fast
SOURCES
•
www.amazon.com
•
www.target.com
Making The Business Case
Executive Recruiting Agency
What’s the Business
Executive recruiting agency.
Specializes in recruiting hard to find SAP consultants.
Company makes money off commission.
% ranges from 5%-15%
For this example 10% commission.
Signing Candidates
Problem
Solution (DocuSign)
Recruiter emails paperwork
Legally binding
Candidate prints & signs
Easy & customizable
Copy & Scans & Emails
Inexpensive
Recruiter emails to hiring
manager
TOO MANY STEPS
CANDIDATES GET COLD
FEET OR JUST GIVES UP
Let’s Run the Numbers
Current
Recruiters
Potential candidates (per month)
Candidate Salary
Commission %
Commission (per candidate)
Qualified candidates
Failed to sign candidates
Total Revenue (per month)
Monthly increase
DocuSign Software (per user)
Training Hours (total)
Annual cost
Annual Revenue
11
15
142500
10%
$
14,250.00
10
2.5
$ 106,875.00
Wth DocuSign
11
15
142500
10%
$
14,250.00
10
1
$ 128,250.00
$
21,375.00
$
$
135.00
22
1,485.00
$ 1,282,500.00
$ 1,537,515.00
That’s a difference of… $ 255,015.00
Total ROI
17173%
Slugging on Steroids with Hitcher
1
Overview
• The Business Problem
• The IT Concept and Solution
• Strategic Analysis
• The Business Case
• Projected Costs
• Projected Revenues
• Payback Periods and Profitability Index
• Potential Risks, Recommendations, and Conclusion
2
The Business Problem
• Increased traffic congestion in metro areas expected1
• Metro and VRE already operate over capacity2
• More/Bigger roads won’t fix problem
• Government has incentivized
ride-sharing without enabling it
• Existing ride-sharing platforms
are not agile, require time,
offer low incentives
• Uber isn’t really ride-sharing
3
IT Concept and Solution
•
•
•
•
•
Mobile Application solves multiple issues
Hitchers enter destination and preferences
Drivers enter destination and preferences
Supply/Demand adjusted pricing
Social media integration increases
familiarity
• Rating system increases safety and
efficiency
• Future development
• Automatic weather adjusted
preferences
• Transparent navigation monitoring
4
Free Market Pricing
• Payments occur in app using existing
digital wallet services
• Drivers input what their time is worth
• App shows average fees/minute in that
area
• App shows hitcher’s total price to accept
or decline
• Hitcher takes 15%
• App sets minimum price (no free rides)
• Marketing incentives possible (free rides
funded by the App) for referrals, etc.
5
Strategic Analysis
Business Context – “Ridesharing” apps trending upwards in
popularity, acceptance, and compliance with laws
Customer Analysis – Elaborated during Business Problem
Competitor Analysis – UberPool and other less sophisticated
products do not take advantage of computational efficiencies
Business Network Analysis – Google already owns proprietary
map data, navigation algorithms, and real time traffic data
6
Projected Costs
7
Projected Revenues
8
Payback and Profitability Analysis
Payback occurs in 1.62 Years
With a discount rate of 15%, NPV of $6,658,914 over 4 years with IRR of 108%
Profitability Index of 2.5443 to compare to other investment opportunities
9
Potential Risks and Recommendations
• Assumption that people are willing to pay mass-transit prices +
small premium for a near door-to-door service
• Assuming continuous increase in traffic congestion at current
projections, increasing incentive to carpool
• Risk of failure to generate users, which devalues the usefulness of
the app
• Use of the app at efficient levels creates positive externalities that
extend beyond customers
1
Questions
?
1
Making the
Business
Case
Top Technology Trends
2012
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
2013
Media Tablets and Beyond
Mobile-centric applications
and interfaces
Contextual and Social User
Experience
Internet of Things
App Stores and marketplaces
Next-generation analytics
Big Data
In-memory Computing
Extreme low energy servers
Cloud Computing
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Mobile Device Battles
Mobile Apps
Personal Cloud
Internet of Things
Hybrid IT and Cloud
Strategic Big Data
Actionable Analytics
In-Memory Computing
Mainstream
Integrated infrastructures
Enterprise Apps Stores
Source: Gartner – Annual Technology Trends,
2012 and 2013
Linking people around the world
through technology and information
social
mobile
The People
Transforming Business
with the Ideas, Products and Insights
⊲⊲
Steve Ballmer (retiring) – CEO Microsoft
⊲⊲
Jeff Bezos – Founder Amazon
⊲⊲
Tim Cook – CEO Apple
⊲⊲
Sergey Brin and Larry Page –
Founders Google
⊲⊲
⊲⊲
Kevin Rose and Jimmy Wales –
Founders Digg and Wikipedia
Chad Hurley and Steven Chen –
Founders YouTube
⊲⊲
Mark Zuckerberg – Founder Facebook
⊲⊲
Stewart Butterfield and Caterina Fake –
Founders Flickr
⊲⊲
Ben Silbermann and Evan Sharp –
Founders Pinterest
The Big 4
⊲⊲
⊲⊲
FaceBook
Amazon
⊲⊲
⊲⊲
Apple
Google
⊲⊲
Reid Hoffman and team members from
PayPal and SocialNet – Founders LinkedIn
⊲⊲
Jack Dorsey, Noah Glass, Evan Williams
and Biz Stone – Founders Twitter
⊲⊲
Janus Friis and Niklas Zennstrom –
Founders Skype
⊲⊲
Steve Huffman and Alexis Ohanian –
Founders Reddit
⊲⊲
David Karp – Founder Tumblr
⊲⊲
Dennis Crowley and Naveen Selvadurai –
Founders Foursquare
⊲⊲
info@global-info-links.com
⊲⊲
www.global-info-links.com
⊲⊲
919-999-7808
information
global
Anywhere, Anytime, Anyhow
Global Business
in a Digital World
© Global-Info-Links
Making the Business Case
Team Exercise
As a team, think of
a business problem
that could be solved
using information
technology (mobile
technology, social
media, cloud, big
data analytics, etc.).
Make the business
case for the
investment using
both quantitative
and qualitative
justification.
Include Total Cost
of Ownership (TCO).
What is the payback
period?
Make any
assumptions
necessary for the
sake of this exercise.
Use the following
outline as your
guide.
Business Context______________________________________
__________________________________________________
__________________________________________________
Business Problem______________________________________
__________________________________________________
__________________________________________________
Technology Solution____________________________________
__________________________________________________
__________________________________________________
Make the Business Case
Quantitative Impact____________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
Total Cost of Ownership_________________________________
__________________________________________________
__________________________________________________
Qualitative Impacts_____________________________________
__________________________________________________
__________________________________________________
__________________________________________________
Case Example
Business Context
Small company sells medical devices to hospitals in the United States.
Business Problem
The company is losing revenue and needs to drive sales growth.
Technology Solution
Purchase i-Pads for the sales staff to increase productivity and provide instant access
to information.
Make the Business Case
Quantitative Impact
Current
Sales Staff Employees
15
Typical Qualified Leads / Day
4
Average % Success Rate
15%
Average order Revenue
$1,000
Revenue / Day
$9,000
Daily Increase
Yearly Revenue Increase (250 days)
Program Implementation Costs
Employees
Hardware (iPads) ($500)
Wireless Access Devices ($50)
Warranty and Insurance ($50)
Maintenance and Support ($50)
Training
Total Implementation Costs
Total Program Savings
With iPads
15
5
20%
$1,000
$15,000
$6,000
$1,500,000
15
$7,500
$750
$750
$750
$3,000
___________
$12,750
$1, 487,250
Total Cost of Ownership - All direct plus indirect costs associated with the implementation.
Qualitative Impacts
Increased customer satisfaction, reduced cycle time, increased productivity, keep up with
competition
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