Natural-Lee- Business information System
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Running Head: INFORMATION SYSTEM
Natural-Lee- Business information System
Name of the Student
Name of the University
Author Note
Natural-Lee- Business information System
Name of the Student
Name of the University
Author Note
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1INFORMATION SYSTEM
Activity 1:
Summary
The company Nature-Lee was initially founded by Kevin Lee and his friends. The
demand of organic food has expanded it to become a flourished business with the engagement of
students of agriculture and horticulture from renowned university. The company is certified to
produce all natural product such as vegetables, nuts, fruits, eggs, etc. They also have cattle for
natural manure and Keven being master of vegetation has all the possible knowledge about soil,
crop, seasons, etc. However, the management of the works was becoming a great deal so the
introduction of information system will be beneficial to manage the over task of the company
such as the placing of order, home delivery service, database of the customers, their bills, order
details and documentation of the products with raw materials used. As the company was
growing, Kevin and his wife Betty involved other people and assigned different department to
them for the management purpose.
Activity 1:
Summary
The company Nature-Lee was initially founded by Kevin Lee and his friends. The
demand of organic food has expanded it to become a flourished business with the engagement of
students of agriculture and horticulture from renowned university. The company is certified to
produce all natural product such as vegetables, nuts, fruits, eggs, etc. They also have cattle for
natural manure and Keven being master of vegetation has all the possible knowledge about soil,
crop, seasons, etc. However, the management of the works was becoming a great deal so the
introduction of information system will be beneficial to manage the over task of the company
such as the placing of order, home delivery service, database of the customers, their bills, order
details and documentation of the products with raw materials used. As the company was
growing, Kevin and his wife Betty involved other people and assigned different department to
them for the management purpose.
2INFORMATION SYSTEM
Table of Contents
Activity 1:............................................................................................................................1
Summary..........................................................................................................................1
Organization chart For Nature Lee..................................................................................3
Area of business of Natural-Lee......................................................................................4
Activity 2.............................................................................................................................4
Functions fulfilled by “Natural-Lee” Information System..............................................4
System Vision Document for the Farm information system...........................................4
Introduction:................................................................................................................4
Problem statement:......................................................................................................5
Business opportunity:..................................................................................................5
Stakeholder and user descriptions...............................................................................6
Stakeholders:....................................................................................................................6
Conclusion...................................................................................................................7
Activity 3.............................................................................................................................7
Gantt chart...................................................................................................................9
Critical Path.....................................................................................................................9
Activity 4...........................................................................................................................10
Risks..............................................................................................................................10
Anticipated benefits of the project.................................................................................11
Table of Contents
Activity 1:............................................................................................................................1
Summary..........................................................................................................................1
Organization chart For Nature Lee..................................................................................3
Area of business of Natural-Lee......................................................................................4
Activity 2.............................................................................................................................4
Functions fulfilled by “Natural-Lee” Information System..............................................4
System Vision Document for the Farm information system...........................................4
Introduction:................................................................................................................4
Problem statement:......................................................................................................5
Business opportunity:..................................................................................................5
Stakeholder and user descriptions...............................................................................6
Stakeholders:....................................................................................................................6
Conclusion...................................................................................................................7
Activity 3.............................................................................................................................7
Gantt chart...................................................................................................................9
Critical Path.....................................................................................................................9
Activity 4...........................................................................................................................10
Risks..............................................................................................................................10
Anticipated benefits of the project.................................................................................11
3INFORMATION SYSTEM
Cost for the development of the project........................................................................12
Assumptions made for the project.................................................................................14
Justification for the business case..................................................................................14
Bibliography......................................................................................................................15
Cost for the development of the project........................................................................12
Assumptions made for the project.................................................................................14
Justification for the business case..................................................................................14
Bibliography......................................................................................................................15
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4INFORMATION SYSTEM
Organization chart For Nature Lee
C
Figure 1: Organization chart for the Nature -Lee
Organization chart For Nature Lee
C
Figure 1: Organization chart for the Nature -Lee
5INFORMATION SYSTEM
(Created by author using Visio)
Area of business of Natural-Lee
The area of business that comes under the Natural-Lee is that they are the producer of
organic vegetables, honey, fruits and nuts, etc. all with certified organic materials. They even
rear cattle like cows, chickens for milk and eggs, they also provide organic manure for the plants.
Kevin the manager of the firm has immense knowledge about the soil, weather condition,
composting which are valuable components for growing crops. The organization takes order
from the customers and provides pick-up weekly of the products from the firm only. The demand
for organic food have expanded increased their popularity and with this the number of workers
have also increased for further management of the operations.
Activity 2
Functions fulfilled by “Natural-Lee” Information System
The Natural-Lee’s information system performs functions that start from account creation
of the customer in the website, registering themselves with their details with name, contact
number and address detail. The system will also manage the home delivery system of the
products as predicting the delivery data with the constraints of availability of products and
location of the customers. The details of the customers will be updated in a database of the
system, the bills can be automatically generated against each purchase. Also the tracking of the
documentation will be present related to the certification of organic produce.
System Vision Document for the Farm information system
Introduction:
Information system is a collection of components that gathers data, stores it, analyses it
and provides the desirable outcome. The business firm uses the management system for the
(Created by author using Visio)
Area of business of Natural-Lee
The area of business that comes under the Natural-Lee is that they are the producer of
organic vegetables, honey, fruits and nuts, etc. all with certified organic materials. They even
rear cattle like cows, chickens for milk and eggs, they also provide organic manure for the plants.
Kevin the manager of the firm has immense knowledge about the soil, weather condition,
composting which are valuable components for growing crops. The organization takes order
from the customers and provides pick-up weekly of the products from the firm only. The demand
for organic food have expanded increased their popularity and with this the number of workers
have also increased for further management of the operations.
Activity 2
Functions fulfilled by “Natural-Lee” Information System
The Natural-Lee’s information system performs functions that start from account creation
of the customer in the website, registering themselves with their details with name, contact
number and address detail. The system will also manage the home delivery system of the
products as predicting the delivery data with the constraints of availability of products and
location of the customers. The details of the customers will be updated in a database of the
system, the bills can be automatically generated against each purchase. Also the tracking of the
documentation will be present related to the certification of organic produce.
System Vision Document for the Farm information system
Introduction:
Information system is a collection of components that gathers data, stores it, analyses it
and provides the desirable outcome. The business firm uses the management system for the
6INFORMATION SYSTEM
interacting with the customers as well as with the associated stakeholders, carrying out of
operations efficiently. The Information System of Natural-Lee the automates the management of
the inventory tasks of the firm and carry out operations such as taking orders, preparing bills,
managing details of the customers and tracking the certification of products. The information
system is basically one of the integrated set of the components that are used for collecting the
data as well as it is used to process data as well as to provide digital products, knowledge and
information. As the organisation Natural Lee will work with huge amount of data they will need
an information system for better management as the information system is basically a software
which will help the organisation in organizing and analyzing several data and information.
Capabilities:
Natural-Lee used to manage the taking of the order through simple phone calls which was
very much time consuming for Kevin, sometime the orders gets mixed up with other customer
and chaos is created. The delivery of the product also became a matter of concern as the pick-up
time of the products get clashed with each other producing a congestion at the pick-up area of the
firm. Keeping track of all the customer detail was nearly impossible with the continuous calling
from the customer along with the farming with was single handedly managed by Kevin only as
he has much experience in the farming sector. Along with the above other factor like
management of the bills, certificates were much hard with the tradition system of pen and paper.
Problem statement:
Therefore, the problem of management can be solved by an automated system that can
manage and operate the function of the firm by a computer. Introduction of an information
system in this emerging technological world is a necessity and it will make all the operations fast
and efficient.
interacting with the customers as well as with the associated stakeholders, carrying out of
operations efficiently. The Information System of Natural-Lee the automates the management of
the inventory tasks of the firm and carry out operations such as taking orders, preparing bills,
managing details of the customers and tracking the certification of products. The information
system is basically one of the integrated set of the components that are used for collecting the
data as well as it is used to process data as well as to provide digital products, knowledge and
information. As the organisation Natural Lee will work with huge amount of data they will need
an information system for better management as the information system is basically a software
which will help the organisation in organizing and analyzing several data and information.
Capabilities:
Natural-Lee used to manage the taking of the order through simple phone calls which was
very much time consuming for Kevin, sometime the orders gets mixed up with other customer
and chaos is created. The delivery of the product also became a matter of concern as the pick-up
time of the products get clashed with each other producing a congestion at the pick-up area of the
firm. Keeping track of all the customer detail was nearly impossible with the continuous calling
from the customer along with the farming with was single handedly managed by Kevin only as
he has much experience in the farming sector. Along with the above other factor like
management of the bills, certificates were much hard with the tradition system of pen and paper.
Problem statement:
Therefore, the problem of management can be solved by an automated system that can
manage and operate the function of the firm by a computer. Introduction of an information
system in this emerging technological world is a necessity and it will make all the operations fast
and efficient.
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7INFORMATION SYSTEM
Benefits:
The business opportunities that the introduction of the information system will bring in
Natural-Lee are as follows:
Efficient work- As the information system will deal with the ordering, billing, customer’s
details management and delivery. Kevin can totally involve himself in the farming of the
organic products which is ultimately his passion and he can do more efficient work apart
from just managing the inventory systems.
Fast operations- As the information system is introduced, it will speed up the process of
management allowing the manual work of preparing order bills, handling customer
details, roistering of delivery duty.
Safe documentation- As the information system will have all the details related to
customers, the chance of data missing is less and accessing the details of the customer
will be a lot easier.
Customized order- The information system can suggest the customer products with
respect to their earlier purchase, hence customer retention will be effective.
Stakeholder and user descriptions
The associated stakeholders are the customers of the firm that orders the organic
vegetables, the farmer that is Kevin and his team. The problems faced by the customer is that
pick-up of the orders were congested, orders used to get mixed up with other customer. The
problem faced by Kevin is that calls for orders were very frequent which hindered in his farming
practices, management of the growing customers were becoming difficult, gathered customer
detail was of no use.
Benefits:
The business opportunities that the introduction of the information system will bring in
Natural-Lee are as follows:
Efficient work- As the information system will deal with the ordering, billing, customer’s
details management and delivery. Kevin can totally involve himself in the farming of the
organic products which is ultimately his passion and he can do more efficient work apart
from just managing the inventory systems.
Fast operations- As the information system is introduced, it will speed up the process of
management allowing the manual work of preparing order bills, handling customer
details, roistering of delivery duty.
Safe documentation- As the information system will have all the details related to
customers, the chance of data missing is less and accessing the details of the customer
will be a lot easier.
Customized order- The information system can suggest the customer products with
respect to their earlier purchase, hence customer retention will be effective.
Stakeholder and user descriptions
The associated stakeholders are the customers of the firm that orders the organic
vegetables, the farmer that is Kevin and his team. The problems faced by the customer is that
pick-up of the orders were congested, orders used to get mixed up with other customer. The
problem faced by Kevin is that calls for orders were very frequent which hindered in his farming
practices, management of the growing customers were becoming difficult, gathered customer
detail was of no use.
8INFORMATION SYSTEM
Stakeholders:
Sl
. No.
Name Role
1 Kevin Manager
2 Betty Customer dealing Manager
3 Customer Places order and pick-up orders
4 Bill, Barbara, Brittany
& Byron
Takes order
5 Lilly & James Account management
6 Mike & Melanie Manages Pick-up activities
7 Conrad, Corrie, Monty
& Nichole
Assist in production
8 Simon & Sarah Assist machinery department
Conclusion
It can be concluded that the need of information system in the business is a necessity to
automate the operation s and management process across the firm. Kevin is single handedly
unable to manage both taking orders and assisting in farming is nearly impossible. Therefore, the
suggestion of using a webpage for the management is a good choice by Betty. The problem of
the traditional system of ordering and delivery is quire hectic to manage a described above. The
new opportunities that the information system will bring is expected to be quite helpful for the
business.
Stakeholders:
Sl
. No.
Name Role
1 Kevin Manager
2 Betty Customer dealing Manager
3 Customer Places order and pick-up orders
4 Bill, Barbara, Brittany
& Byron
Takes order
5 Lilly & James Account management
6 Mike & Melanie Manages Pick-up activities
7 Conrad, Corrie, Monty
& Nichole
Assist in production
8 Simon & Sarah Assist machinery department
Conclusion
It can be concluded that the need of information system in the business is a necessity to
automate the operation s and management process across the firm. Kevin is single handedly
unable to manage both taking orders and assisting in farming is nearly impossible. Therefore, the
suggestion of using a webpage for the management is a good choice by Betty. The problem of
the traditional system of ordering and delivery is quire hectic to manage a described above. The
new opportunities that the information system will bring is expected to be quite helpful for the
business.
9INFORMATION SYSTEM
Activity 3
Task Name Duration Start Finish Predecessors
Nature-Lee IS
development project
96
days
Wed
12/11/19
Wed
4/22/20
Business Case 8 days Wed
12/11/19
Fri
12/20/19
Interviewing the staffs of
Nature Lee for High Level
Requirements
3 days Wed
12/11/19
Fri
12/13/19
Draft Business Case 2 days Mon
12/16/19
Tue
12/17/19 2
Estimation 3 days Wed
12/18/19
Fri
12/20/19 2,3
Analysis 16
days
Mon
12/16/19
Mon
1/6/20
Collecting the
Functionalities from series of
Interviews
3 days Mon
12/16/19
Wed
12/18/19 2
Reviewing farm records of
production, customer purchases, costs
and profits
3 days Mon
12/23/19
Wed
12/25/19 4
Requirement Review 5 days Thu
12/19/19
Wed
12/25/19 2,6
Interviewing Customers 2 days Thu
12/26/19
Fri
12/27/19 2,8
Analysis of Accounting
Process 2 days Mon
12/30/19
Tue
12/31/19 6,9
Review Sample order and
transactions 2 days Wed
1/1/20
Thu
1/2/20 10
Analysis of Home Delivery
Service 2 days Fri
1/3/20
Mon
1/6/20 8,10,11
Development 55
days
Tue
1/7/20
Mon
3/23/20
Development of the
Different Sub components 45 days Tue
1/7/20
Mon
3/9/20 8,10,11,12
Integration of
Modules/Components 10 days Tue
3/10/20
Mon
3/23/20 14
Testing 22
days
Tue
3/24/20
Wed
4/22/20
Unit Testing 10 days Tue
3/24/20
Mon
4/6/20 14,15
Integration Testing 5 days Tue
4/7/20
Mon
4/13/20 15,17
Regression Testing 7 days Tue
4/7/20
Wed
4/15/20 17,15
Acceptance Testing 5 days Thu Wed 19
Activity 3
Task Name Duration Start Finish Predecessors
Nature-Lee IS
development project
96
days
Wed
12/11/19
Wed
4/22/20
Business Case 8 days Wed
12/11/19
Fri
12/20/19
Interviewing the staffs of
Nature Lee for High Level
Requirements
3 days Wed
12/11/19
Fri
12/13/19
Draft Business Case 2 days Mon
12/16/19
Tue
12/17/19 2
Estimation 3 days Wed
12/18/19
Fri
12/20/19 2,3
Analysis 16
days
Mon
12/16/19
Mon
1/6/20
Collecting the
Functionalities from series of
Interviews
3 days Mon
12/16/19
Wed
12/18/19 2
Reviewing farm records of
production, customer purchases, costs
and profits
3 days Mon
12/23/19
Wed
12/25/19 4
Requirement Review 5 days Thu
12/19/19
Wed
12/25/19 2,6
Interviewing Customers 2 days Thu
12/26/19
Fri
12/27/19 2,8
Analysis of Accounting
Process 2 days Mon
12/30/19
Tue
12/31/19 6,9
Review Sample order and
transactions 2 days Wed
1/1/20
Thu
1/2/20 10
Analysis of Home Delivery
Service 2 days Fri
1/3/20
Mon
1/6/20 8,10,11
Development 55
days
Tue
1/7/20
Mon
3/23/20
Development of the
Different Sub components 45 days Tue
1/7/20
Mon
3/9/20 8,10,11,12
Integration of
Modules/Components 10 days Tue
3/10/20
Mon
3/23/20 14
Testing 22
days
Tue
3/24/20
Wed
4/22/20
Unit Testing 10 days Tue
3/24/20
Mon
4/6/20 14,15
Integration Testing 5 days Tue
4/7/20
Mon
4/13/20 15,17
Regression Testing 7 days Tue
4/7/20
Wed
4/15/20 17,15
Acceptance Testing 5 days Thu Wed 19
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10INFORMATION SYSTEM
4/16/20 4/22/20
4/16/20 4/22/20
11INFORMATION SYSTEM
Gantt chart
Critical Path
Gantt chart
Critical Path
12INFORMATION SYSTEM
PERT-CPM chart
The critical path is basically an algorithm which is used to schedule the set of activities
that are related to the project. It is used commonly in the conjunction with the review technique
and evaluation of the program. The critical path for the project can be determined through
making the identification of the longest stretch of the activities of the department as well as by
measuring the date as well as the time. The part chart and duration for the project is as follows:
Activity 4
Risks
The risks that are associated with the project are as follows:
PERT-CPM chart
The critical path is basically an algorithm which is used to schedule the set of activities
that are related to the project. It is used commonly in the conjunction with the review technique
and evaluation of the program. The critical path for the project can be determined through
making the identification of the longest stretch of the activities of the department as well as by
measuring the date as well as the time. The part chart and duration for the project is as follows:
Activity 4
Risks
The risks that are associated with the project are as follows:
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13INFORMATION SYSTEM
Sl
. No.
Risks Likelihood
1 Incomplete requirement High
2 Insufficient executive support Medium
3 Insufficient technical Support High
4 Insufficient project planning Medium
5 Inadequate resources High
6 Insufficient budget High
7 Inexperienced IT experts High
8 Poor definition of project scope Medium
9 Inadequate risk management High
10 Lack of communication Low
As shown in the table there are risk that are associated with the system. If the requirement
will be incomplete then the likelihood of the risk will be very high. For the Insufficient executive
support the likelihood is medium and for Insufficient technical Support is high. If the budget for
the project will be less then risk for this project will be high as without the money the project
cannot be completed.
Anticipated benefits of the project
The suggested information system have benefits for the firm are those are discussed
below:
Tangible benefits:
Sl
. No.
Risks Likelihood
1 Incomplete requirement High
2 Insufficient executive support Medium
3 Insufficient technical Support High
4 Insufficient project planning Medium
5 Inadequate resources High
6 Insufficient budget High
7 Inexperienced IT experts High
8 Poor definition of project scope Medium
9 Inadequate risk management High
10 Lack of communication Low
As shown in the table there are risk that are associated with the system. If the requirement
will be incomplete then the likelihood of the risk will be very high. For the Insufficient executive
support the likelihood is medium and for Insufficient technical Support is high. If the budget for
the project will be less then risk for this project will be high as without the money the project
cannot be completed.
Anticipated benefits of the project
The suggested information system have benefits for the firm are those are discussed
below:
Tangible benefits:
14INFORMATION SYSTEM
Inventory reduction- The work of the information system is that it manages the overall
details management of the customers. The total structure of the details will be available at
one place.
Improved productivity- As the system will manage the ordering, billing, delivery process,
the manager, Kevin can easily involve himself with farming activities that he is most
passionate about.
Fast service- The ordering will be place by automated system along will allocating
delivery date to each customer. Hence, congestion at the pic-up place will be avoided.
Along with other automated operations, the overall service of the firm will be accelerated
at greater pace.
Reduction in paper cost- The traditional system for taking orders and maintaining the
details of the customer includes the pen and paper system, whereas in the automated
computer system there is no need for the use of paper, all the activities are carried out by
the software in the online platform.
Intangible benefits:
Increased transparency- The information system will increase the transparency within the
firm as the system can be accessible by all, hence, formulating better management of
activities by the employees of the firm.
Faster access of data- The data present in the database such as the details of the customers
can easily be accessed as per the requirement and time of the employees of the firm.
Fast data entry- The avoidance of the data entry in the “Customer Book” is aided by the
information system, which was eventually of no use at the later times.
Inventory reduction- The work of the information system is that it manages the overall
details management of the customers. The total structure of the details will be available at
one place.
Improved productivity- As the system will manage the ordering, billing, delivery process,
the manager, Kevin can easily involve himself with farming activities that he is most
passionate about.
Fast service- The ordering will be place by automated system along will allocating
delivery date to each customer. Hence, congestion at the pic-up place will be avoided.
Along with other automated operations, the overall service of the firm will be accelerated
at greater pace.
Reduction in paper cost- The traditional system for taking orders and maintaining the
details of the customer includes the pen and paper system, whereas in the automated
computer system there is no need for the use of paper, all the activities are carried out by
the software in the online platform.
Intangible benefits:
Increased transparency- The information system will increase the transparency within the
firm as the system can be accessible by all, hence, formulating better management of
activities by the employees of the firm.
Faster access of data- The data present in the database such as the details of the customers
can easily be accessed as per the requirement and time of the employees of the firm.
Fast data entry- The avoidance of the data entry in the “Customer Book” is aided by the
information system, which was eventually of no use at the later times.
15INFORMATION SYSTEM
Cost for the development of the project
Total Cost of the Project
Use of Payback analysis Method
Payback Analysis (Farm Information system)
Benefits of the
information system
Y
1
Y
2
Y
3
Y
4
Y
5
Resource cost
$
20,000
$
1,500
$
10,000
$
10,000
$
10,000
Improvement cost
$
15,000
$
12,000
$
12,000
$
10,000
$
10,000
Service development
cost
$
12,000
$
20,000
$
15,000
$
24,000
$
24,000
Total Benefits
$
47,000
$
33,500
$
22,000
$
44,000
$
44,000
$
190,5
00
Costs of option
Y
1
Y
2
Y
3
Y
4
Y
5
Development costs of
the Information system
$
65,000
$
-
$
-
$
-
$
-
Additional hardware
cost for deployment of the
System
$
4,000
$
2,000
$
2,000
$
1,000
$
1,000
Operational costs for the
system
$
1,500
$
1,500
$
1,500
$
1,500
$
1,500
Maintenance costs for
the proposed information
system.
$
1,000
$
1,000
$
500
$
500
$
500
Total Costs
$
71,500
$
4,500
$
4,000
$
3,000
$
3,000
$
86,00
0
Estimated Net benefit
from the proposed system
$
(24,500)
$
29,000
$
18,000
$
41,000
$
41,000
Cumulative
benefits/costs
$
(24,500)
$
4,500
$
22,500
$
63,500
$
104,500
Cost for the development of the project
Total Cost of the Project
Use of Payback analysis Method
Payback Analysis (Farm Information system)
Benefits of the
information system
Y
1
Y
2
Y
3
Y
4
Y
5
Resource cost
$
20,000
$
1,500
$
10,000
$
10,000
$
10,000
Improvement cost
$
15,000
$
12,000
$
12,000
$
10,000
$
10,000
Service development
cost
$
12,000
$
20,000
$
15,000
$
24,000
$
24,000
Total Benefits
$
47,000
$
33,500
$
22,000
$
44,000
$
44,000
$
190,5
00
Costs of option
Y
1
Y
2
Y
3
Y
4
Y
5
Development costs of
the Information system
$
65,000
$
-
$
-
$
-
$
-
Additional hardware
cost for deployment of the
System
$
4,000
$
2,000
$
2,000
$
1,000
$
1,000
Operational costs for the
system
$
1,500
$
1,500
$
1,500
$
1,500
$
1,500
Maintenance costs for
the proposed information
system.
$
1,000
$
1,000
$
500
$
500
$
500
Total Costs
$
71,500
$
4,500
$
4,000
$
3,000
$
3,000
$
86,00
0
Estimated Net benefit
from the proposed system
$
(24,500)
$
29,000
$
18,000
$
41,000
$
41,000
Cumulative
benefits/costs
$
(24,500)
$
4,500
$
22,500
$
63,500
$
104,500
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16INFORMATION SYSTEM
Break Even Period
2.
3132530
1
Use of the NPV analysis for the Project
Benefits of
option Y1 Y 2 Y 3 Y4 Y 5
Resource allocation
cost
$
20,000
$
1,500
$
10,000
$
10,000
$
10,000
Practice cost
$
15,000
$
12,000
$
12,000
$
10,000
$
10,000
Service
improvement cost
$
12,000
$
20,000
$
15,000
$
24,000
$
24,000
Total Benefits
$
47,000
$
33,500
$
37,000
$
44,000
$
44,000
Costs of
option Y1 Y 2 Y 3 Y 4 Y5
Improvement cost
$
65,000
$
-
$
-
$
-
$
-
Additional
hardware cost
$
4,000
$
2,000
$
2,000
$
1,000
$
1,000
Operational cost
$
1,500
$
1,500
$
1,500
$
1,500
$
1,500
Time duration
development cost
$
-
$
-
$
-
$
-
$
-
Post maintenance
cost
$
1,000
$
1,000
$
500
$
500
$
500
Total Costs
$
71,500
$
4,500
$
4,000
$
3,000
$
3,000
Net benefits/costs
$
(24,500)
$
29,000
$
33,000
$
41,000
$
41,000
Cumulative Benefit
from the System
$
(24,500)
$
4,500
$
37,500
$
78,500
$
119,500
Net Benefits
($23
,333.33)
$26,
303.85
$28,
506.64
$33,
730.80
$32,
124.57
Cumulative NPV
($23
,333.33)
$2,9
70.52
$31,
477.16
$65,
207.96
$97,
332.54
Assumptions made for the project
The assumptions are:
Break Even Period
2.
3132530
1
Use of the NPV analysis for the Project
Benefits of
option Y1 Y 2 Y 3 Y4 Y 5
Resource allocation
cost
$
20,000
$
1,500
$
10,000
$
10,000
$
10,000
Practice cost
$
15,000
$
12,000
$
12,000
$
10,000
$
10,000
Service
improvement cost
$
12,000
$
20,000
$
15,000
$
24,000
$
24,000
Total Benefits
$
47,000
$
33,500
$
37,000
$
44,000
$
44,000
Costs of
option Y1 Y 2 Y 3 Y 4 Y5
Improvement cost
$
65,000
$
-
$
-
$
-
$
-
Additional
hardware cost
$
4,000
$
2,000
$
2,000
$
1,000
$
1,000
Operational cost
$
1,500
$
1,500
$
1,500
$
1,500
$
1,500
Time duration
development cost
$
-
$
-
$
-
$
-
$
-
Post maintenance
cost
$
1,000
$
1,000
$
500
$
500
$
500
Total Costs
$
71,500
$
4,500
$
4,000
$
3,000
$
3,000
Net benefits/costs
$
(24,500)
$
29,000
$
33,000
$
41,000
$
41,000
Cumulative Benefit
from the System
$
(24,500)
$
4,500
$
37,500
$
78,500
$
119,500
Net Benefits
($23
,333.33)
$26,
303.85
$28,
506.64
$33,
730.80
$32,
124.57
Cumulative NPV
($23
,333.33)
$2,9
70.52
$31,
477.16
$65,
207.96
$97,
332.54
Assumptions made for the project
The assumptions are:
17INFORMATION SYSTEM
1. The functional requirements for the system will be clear in the initial stages which will
help the project team to complete the project in the given deadline.
2. The operations of the firm will be faster with the introduction of the Information System.
3. The activity management across the firm will be lot faster.
Conclusion:
Thus, it can be concluded that the proposed information system is expected to manage the
ordering of the customer, details of the customers, delivery regulation, billing of the products and
customize the products as per the earlier orders. Therefore, the system is appeared to be a strong
business case for the benefits it is expected to provide the firm.
It is highly recommended that the system must be proceeded to be a crucial part
of the final report due to its beneficial characteristics and easy implementation.
1. The functional requirements for the system will be clear in the initial stages which will
help the project team to complete the project in the given deadline.
2. The operations of the firm will be faster with the introduction of the Information System.
3. The activity management across the firm will be lot faster.
Conclusion:
Thus, it can be concluded that the proposed information system is expected to manage the
ordering of the customer, details of the customers, delivery regulation, billing of the products and
customize the products as per the earlier orders. Therefore, the system is appeared to be a strong
business case for the benefits it is expected to provide the firm.
It is highly recommended that the system must be proceeded to be a crucial part
of the final report due to its beneficial characteristics and easy implementation.
18INFORMATION SYSTEM
Bibliography
[1] C. Marnewick, “Benefits of information system projects: The tale of two countries,” Int.
J. Proj. Manag., 2016.
[2] J. S. C. Hsu, Y. Li, and H. Sun, “Exploring the interaction between vertical and shared
leadership in information systems development projects,” Int. J. Proj. Manag., 2017.
[3] O. P. Sanchez, M. A. Terlizzi, and H. R. de O. C. de Moraes, “Cost and time project
management success factors for information systems development projects,” Int. J. Proj.
Manag., 2017.
[4] J. Kostalova, L. Tetrevova, and J. Svedik, “Support of Project Management Methods by
Project Management Information System,” Procedia - Soc. Behav. Sci., 2015.
Bibliography
[1] C. Marnewick, “Benefits of information system projects: The tale of two countries,” Int.
J. Proj. Manag., 2016.
[2] J. S. C. Hsu, Y. Li, and H. Sun, “Exploring the interaction between vertical and shared
leadership in information systems development projects,” Int. J. Proj. Manag., 2017.
[3] O. P. Sanchez, M. A. Terlizzi, and H. R. de O. C. de Moraes, “Cost and time project
management success factors for information systems development projects,” Int. J. Proj.
Manag., 2017.
[4] J. Kostalova, L. Tetrevova, and J. Svedik, “Support of Project Management Methods by
Project Management Information System,” Procedia - Soc. Behav. Sci., 2015.
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