Question Exercise 2: Data & Cost Analysis

Exercise 2: Data & Cost Analysis

Before you begin this assignment, be sure you have read the “Hometown Deli Case Study” and “Hometown Deli Case Study” Stages (1, 2, and 3, respectively).

Business Process Analysis for the Hometown Deli

For your Stage 1 Project of the Case Study, you identified a strategic area for improvement of your Hometown Deli’s business and youidentified a process that could be improved with the use of technology. For Stage 2, you performed an initial technological proposal supporting the process, and in Stage 3, you completed a template, identifying the “areas to be considered” that may be supported by your technological proposal. For this Exercise, you will perform a data and cost analysis, to determine a rough order of magnitude (ROM – or oftentimes referred to as a Cost Estimate) for your IT technological proposal. (You may notice I do not use the term “solution” at this point, because, during this phase (coupled with Case Study 3, dealing with “areas to be considered” a.k.a. ‘feasibility analysis’) you may find that you will have to make some adjustments to your proposed effort, which is perfectly normal.

Purpose of this Assignment

This assignment gives you the opportunity to apply your analysis skills to model a data & cost analysis. Modeling the process as it exists (or as it will exist) will aid in the design, development and implementation of the technology solution. This assignment specifically addresses the following course outcomes to enable you to:

• Analyze the data and cost of a pertinent IT solution, given certain restraints.

Assignment

For this assignment you will use the process identified for improvement in your Stage 1 Project. Although your textbook has little to reference regarding the model or process (hence, the table provided below), it does provide information for you to consider while determining the cost of your proposal. You must reference any and all resources (Internet, vendor data, etc.) that you use for this Exercise. Submit your paper via your Assignment Folder (under Exercise 2) as an attached document with your last name included in the filename.

Budget Constraints

Since this is your first year of owning the “Hometown Deli”, information you have is scratchy at best. Thus far, given an analysis of Gross Profits/Revenue from Sales, you can anticipate that your business will make $300,000 for the year. Since you will have to create an Executive Briefing (Stage 4), which will, in essence, suffice as a proposal for a bank loan as well, you do not want expenditures for this IT project to exceed 8% of Gross Profits/Revenue for the next two years (you want to pay this loan off in 24 months to obtain the lowest possible interest rate), assuming a 3% inflation rate for the 2^nd year, and assuming you will make $300,000 profit for each year.

Thus, you will have to work with:

FY1 = 8($300,000) ; FY2 = 8($300,000 + 3%)

Now, upon reviewing the table (below), keeping in mind that this is a template only and can be adapted to your proposal, you will need to determine what it will take (in terms of data (proposal information–reference your previous Case Studies for system and equipment nomenclature that you recommended, etc.), cost, and level of effort (manhours, etc.), to implement your proposed effort. Please note that changes can be made from your previous proposal, but NOT the process you identified for improvement (Stage 1).

Data & Cost Analysis

“Hometown Deli” *

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