Central Queensland University: Asset Management System Project Report

This report presents a business case for implementing a cloud-based asset management system within an organization. It begins by outlining the current situation, which involves traditional data collection methods, and contrasts it with the desired future state enabled by cloud technology. The report explores various cloud model options (public, private, hybrid) and details the proposal's assumptions, including the availability of resources. A financial analysis is conducted using investment appraisal techniques such as NPV, IRR, and payback period. The analysis reveals a negative NPV, a positive IRR, and an estimated payback period. The report also includes a breakdown of fixed and variable costs, along with the contribution margin. Furthermore, it highlights the non-financial benefits of the system, such as risk mitigation and environmental advantages. The conclusion emphasizes the benefits of the asset management system, asserting that the company can recover all expenses within six years. The report is supported by references to relevant literature.

Asset Management
System
(Project 2)

Table of content
• Introduction
• Current Situation and desired future state
• Options available
• Proposal Assumptions
• Financial analysis
• Fixed variable cost and contribution margin
• Non financial benefits
• Conclusion
• References

Introduction
Asset management system is a process of developing, growing, upgrading
and maintaining the assets of an organization. In this presentation, an
understanding about this system is developed by introducing a new asset of
cloud technology in a business organization

Current Situation and desired future state
Current situation of an organization includes traditional approaches of data
collection and storage such as flat files and manual accounts or records.
Desired future state of an organization after implementing the cloud
technology is estimated as managed data of company including employee
information and developed communication from clients.

Options available
• Public cloud model
• Private cloud model
• Hybrid cloud model

Proposal Assumptions
This proposal of cloud implementation has various estimates such as only
half of the materials are available to the organization This materials are
skills, equipment and tools. Another half of the required materials and
skills are assumed to be be procured from the external sources.

Financial analysis
Financial analysis of an proposal can be conducted by investment appraisal
techniques such as NPV, IRR and Payback period.
 NPV for this proposal is estimated as -1705.9227382
 IRR for this proposal is estimated as 7.12%
 Pay back period is estimated as 5-6 years

Fixed variable cost and contribution margin
 Fixed cost is estimated as 25000
 Variable cost is estimated as 9100
 Contribution margin will be as 50000-9100= 40900

Non financial benefits
 Risk mitigation
 Safety
 Environment
 Regulatory
 Social services

Conclusion
From this presentation, it has been concluded that asset management
system is a process by which an organisation can manage and
maintain their assets. In this project, cloud implementation of an
organisation is analysed that how it can benefit the organisation and it
has evaluated that a company can wave off all the expenses in less
than 6 years.

References
• Zhang, H., Keoleian, G.A. and Lepech, M.D., 2012. Network-level
pavement asset management system integrated with life-cycle analysis
and life-cycle optimization. Journal of infrastructure Systems. 19(1).
pp.99-107.
• Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human
resource management practice. Kogan Page Publishers

Thank you