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
- 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
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
- The costs for the project are development of a new system, IT system licence fee, vendor installation and testing fee, IT experts travel and accommodation, and annual server maintenance.
- The benefits are reduced administration cost, increased shopping through “park pass”, increased value of customer care service, online and app. shopping.
- NPV= Discounted benefits-Discounted expenses
- The IRR shows the discounting rates that result in an NPV of zero
- The IRR enables the calculation of the viability of the project, since a business that has a discounting rate that is less than its IRR and its its rate of return is greater than the discounting rate will always be viable.
- The payback period is appropriate in measuring the time that the project is expected to repay itself.
- The shorter the period, the more appropriate is the project.
- The profitability index is essential in indicating the viability of a project.
- The higher the rate, the more profitable is the project
Selection of Appropriate Plans and Strategies as to How the Project can be Managed
- The project will be managed using the scope and requirements plans.
- The scope management plan evaluates that the project has been adequately completed according to the set standards.
- This method will have manager who will oversee that the information system project has been adequately completed to achieve its set objectives.
- Requirements planning will also be performed to ensure that the final project meets the set standards. In this case, the new customer relations information system should be able to perform online payment as well as to integrate with the “park pass.”
- In order to ensure that the requirements plan is properly adhered to, there will be a requirements traceability matrix.
- The strategy of conducting the works concurrently in various sections will save time and cost of installing the new online customer relationship and payment system.
- There should be one overall project manager to supervise and coordinate the entire work
- The project should be divided into various independent tasks, each with its own supervisor to ensure there is fast implementation and installation of the system
- There should be special attention on critical tasks in order to avoid delays
- Tasks that can be done concurrently, should be done in this manner to save time.
- Each stage should be tested on the test server in order to quickly detect and rectify the errors.
- Once the whole system has been developed, it should first be installed on a test server to monitor its performance before being transferred to the company’s server.
- The transfer and installation of the new system should be done in the fastest manner possible to avoid significant interruption of the park’s operations
- There should be training of all personnel, especially those in the IT department on how they should operate and correct errors that may arise when using the system.
- The installation and development of the new system will have minimum interference with the company since it will be done and testes within the shortest time possible.
- The training of employees will ensure that they are able to offer the desired quality of service
- The new system will minimize on the managerial costs of the company.
- The new system will ease the reconciliation of the park’s financial records and improve on accountability
- The new CRM and park system will lead to an increase in efficiency in operations of the park by maintaining a track of customer’s experiences
- The new system will improve customer’s experience by enabling them to make online payments as well as enabling them to book various services.
- The new system will enable quick and easy integration of the services in the entire park since they will share a similar online platform.
- The new system will enable the park to offer a more appropriate reward method to its customers