Business Intelligence: Analyzing Feasibility of New Cloud Software

This report assesses the feasibility of Cloud-Pty Limited, an Australian cloud-based software development company, launching a new software product. It uses Visual DSS software and Monte-Carlo simulations to provide insights to senior management. The analysis covers NPV calculations, risk analysis considering market share, production costs, overheads, and initial investment. The CEO's concerns regarding uncertainties in the NPV model are addressed, focusing on selling price distribution, unit costs, and desired NPV probability. The report also includes demonstrations using Power BI to analyze car sales data and funding information in Queensland. Furthermore, it discusses how smart, connected products are transforming competition by enhancing functionality, reliability, and utilization, impacting value chains and industry boundaries, ultimately concluding with the product's capability to meet necessary criteria for a successful market launch.

Running head: BUSINESS INTELLIGENCE
Business Intelligence
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Part A...............................................................................................................................................2
Answer 1......................................................................................................................................2
Answer 2......................................................................................................................................3
Answer 3......................................................................................................................................4
Overall Interpretation...................................................................................................................5
Part B...............................................................................................................................................6
Demonstration 1...........................................................................................................................6
Demonstration 2...........................................................................................................................8
Part C...............................................................................................................................................9
How Smart, Connected Products Are Transforming Competition..................................................9
Introduction..................................................................................................................................9
Discussion..................................................................................................................................10
Conclusion.................................................................................................................................11
References......................................................................................................................................13

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Part A
The company, which has been chosen in this case, is “Cloud-Pty Limited”. It is actually a
cloud-based software development company that is based in Brisbane, Australia. The
organisation is deciding to start newer and better responsive cloud-based software applications in
the required market. Not very long ago, the dynamic and competitive advantage has formulated
some very wrong decisions of investment. At present the senior management requires a crucial
analysis of all sorts of innovative products in the market. The aim in this case is to give valuable
insights to the senior management regarding the feasibility of the new product. Visual DSS
software and Monte-Carlo Simulation procedures are utilized for proper understanding regarding
the software launches.
Answer 1
Based on the decision support models which have been developed utilizing the visual DSS, the
value of NPV has been obtained is $5440551. It can therefore be said that the summarized NPV
is higher than $2 million. Thus it can be said that in case the manager launches the software in
the market at present, it would prove to be a correct decision. The software launch decision
would have been correct.

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Answer 2
In case of risk analysis, it is required to analyse the effect of variation in the share of the market,
the cost of producing, overheads and also the primary investment regarding the NPV. In this
connection it can be said that
 It is most probable that the market share will range between 5% to 15% and the most
probable value would be 10%
 The unit cost follows a normal distribution. Its mean is $30 and its standard deviation is
$12
 The interval between which the overhead cost can vary can be in the interval between of
$15000 and $35000. The most suitable value in this case can be $215000 each year.

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 The initial investment requirement follows a uniform distribution with the range
$1000000 to $2000000
The decision, which is to be taken in this case, is regarding the launch of the
software when it needs to be 20% or more probability is in the case that the net value at
present would be $1000000. It needs to be understood whether the launch decision is
correct or not.
The calculated cumulative NPV in case of a 20% chance is $3030930 which is
seen to be greater than the value $1000000. In cases it is considered that the chance for
the cumulative NPV is 10%, the value of the cumulative NPV is found to be $2421586.
Therefore, it can be said that not only a 20% but in fact a 10% value of the chance of risk
also shows the net present value which is considered to be greater than $1 million.
It needs to be interpreted if the software can be launched easily in the market for
the NPV $1 million with risk which is less than 10%.

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Answer 3
As the CEO of the organisation got the analysed outcomes he was concerned regarding the
assumptions which had been mentioned in the NPV model. The CEO basically focuses on

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certain uncertainties of the particular model. The CEO needs to focus on certain problems in the
model.
 The distribution of the selling price is between $65 and $45.
 The unit cost follows a normal distribution, which as a mean of $25 and standard
deviation is $5.
 CEO requires to move forward for the launch of the software in case there was an 80%
chance that the NPV would be greater than the value of $2500000.
 Based on the analysis of the Visual DSS model, the cumulative NPV with more than
80% probability is not less than $6,138,115. It can be seen that the value is much lesser
than $2500000. Thus it can be said that the software possesses the credibility to be
worthy of a market launch.
Overall Interpretation
Based on the market value as well as the assumptions and uncertainties, the product is
capable of clearing the criteria and the check points which are necessary for interpretation.
The understanding and analysis of the questions has led to the interpretation that the CEO
needs to accept the proposed production of a specific product. The main reason for this is
because the product meets all the criteria which impacts a particular decision.

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Part B
Demonstration 1
Figure 1: Complete Car sales
The analysis of the car sales data is represented in the above figure. The analysis helps us
find whether the information is there about car models’ sales. The model clearly shows that
the image shows that highest labour cost is for the United Kingdom after which comes the
United States of America. It is clearly seen that the highest sum of the price of sales is for
United Kingdom. The highest sum of the sales price for the United Kingdom is considered to
be 15725000.

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Figure 2: Car Sales DB9
The image above is derived from the filtering of the data in the Power BI. The
data needs to be shown for the model DB9. The value of the total spare parts the company sells is
44K. The sum of the total sales price for the United States is 3609410.
The usage of the Power BI has led to the information that has been analysed on the car
sales their models as well as spare parts. The data contains detailed information on the sales parts
irrespective of counties and years. After section of a model, the information connected to the
DB9 was derived. Using of the Power BI the information was segregated. There is also the
possibility of assumption validation.

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Demonstration 2
Figure 3: Information on Funding Recipients
The figure presents information on funding in Queensland. The top right hand
corner gives information on the funding got by the department.

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Figure 4: Research Funding’s on Research Fellowships
The research fellowship funding is available for purpose of agriculture, forest and
fisheries along with art and recreational sectors. A total amount of 9300000 has been
committed for fellowships. The second figure analyses the information of Research funding
in Queensland. The lower left hand corner shows all the departments, though the department
has a funding for research. The filtering of the data in this case was not operationally
accurate.
Part C
How Smart, Connected Products Are Transforming Competition
Introduction
As discussed by Mohelska and Sokolova (2016), in the recent times the role of
information technology has been depicted with revolutionizing the products. “Smart, connected
products” are seen to offer several opportunities in various categories of products. Some of the
main understanding needs to be considered with the “higher product utilization, greater
reliability, new functionality and capabilities” to transcend across the traditional product
boundaries. In general, these technologies are comprised with of three core elements- “physical
components, smart components and connectivity components”. The physical components are
depicted with mechanical and electrical parts. The smart components are further referred with the
components such as “control software, engine control unit, sensors and microprocessors”. The
connectivity aspect is seen to include the protocols with the wired and wireless connections
including ports and antennae. The changing aspect of the product is depicted with the disrupting
value chains which compels the organizations to retool and innovate in their internal strategies.
In addition to this, smart, connected products allows for the application for the implementation of
the new set of strategies to capture a significant aspect of sensitive data. The different types of
the other benefits of the smart connected products has been depicted with the redefining the