COIT20248: Information Systems Analysis and Design Report for RME Inc.

This report presents an analysis of the information system for Repair-Made-Easy (RME) Inc. The study begins with an introduction to RME Inc., a Melbourne-based company, highlighting its current operational challenges due to manual data entry. The report then explores various approaches to systems development, proposing the waterfall methodology as the most suitable choice for the project. It outlines the functional and non-functional system requirements, followed by a cost/benefit analysis to assess the financial implications of the project. The report also includes a Gantt chart for project scheduling and discusses system information requirement investigation techniques, such as personal interviews and project reviews. Finally, it reflects on the knowledge gained and concludes with a summary of the project's goals and anticipated outcomes, including a budget of $0.8 million and an expected revenue increase of 9% within a year. References are provided using the Harvard referencing style.

COIT20248: Information Systems Analysis and Design
Term 2, 2019
Assessment 1 - Systems Development
Lecturer: Lecturer Name
Tutor: Tutor Name
Prepared by:
Student Name
Student Number

Table of Contents
1. Introduction.......................................................................................................................................2
2. Approaches to Systems Development...............................................................................................3
3. Systems Requirements......................................................................................................................4
4. Project Cost/Benefit Analysis.............................................................................................................5
5. Project Management and Scheduling................................................................................................7
6. System Information Requirement Investigation Techniques.............................................................9
7. Reflections and Conclusions............................................................................................................10
8. References.......................................................................................................................................11
Page 1

1. Introduction
Repair-Made-Easy (RME) Inc. is a Melbourne-based spare parts and service provider store
that provides the parts and services for a wide range of computers, laptops and notebooks
based on the orders of the customers. The services include repair of systems brought to the
store, sale of parts to the customers who want to do the repair work themselves or servicing
the systems brought by the customers without the need for adding new spare parts. With
the growth increasing significantly for the store, the management has decided to expand
and open new branches at various parts of the country. However, before expanding, there
are some internal system problems and issues that need to be solved. These problems are
mostly operational as manual data entry system is causing a lot of delay as well as errors in
the records like inventory and accounting. Hence, the authority has decided to implement a
new information system that will solve their current operational issues as well as allow the
company to prepare for further expansion.
The main aim of the project is to implement a new information system with cloud based
inventory and accounts management system included. The objectives of the project are as
follows.
To minimize errors in operations and data recording caused due to manual handling
and data entry
To implement a very efficient and effective system that will not only enhance
operations but will also reduce operational costs after the one time implementation
cost
Page 2

2. Approaches to Systems Development
There are many possible approaches to systems development that can be considered by
Repair-Made-Easy (RME) Inc. However, each of the systems development methods has its
own advantages and disadvantages considering the nature and requirements of the project
(Laudon and Laudon 2016). For the purpose of this project, the proposed methodology is
waterfall.
Some of the choices for the project methodology includes waterfall, agile, RAD and others.
However, considering the budget and other limitations to the project, agile cannot be used
as the repeated iterations and sprints may take up a significantly higher budget than
specified (Madon and Krishna 2018). RAD is also not suitable as this project involves direct
development and implementation of the information system rather than wasting time and
resources for development and testing of the prototype. Hence, the most suitable
methodology for the project is waterfall – the entire life cycle of the project will be divided
into six main stages that include requirement analysis, system design, implementation,
testing, deployment and maintenance (Kerzner 2017). This is a much more direct approach
and will also provide the organisation with a cost effective way to implement the proposed
new information system without going into any serious complications.
Page 3

3. Systems Requirements
As per the initial conditions set for the proposed information system, there are several
functional and non-functional requirements that are defined as follows.
Functional Requirements
 The system should include a cloud based inventory system where the sales and
procurement records will be stored and edited after each data entry.
 The system should have a cloud based accounts system that will contain all
automated accounting system, which will update the data records after each
transaction is completed and data is entered.
 Both the two features should be available within one common business portal
platform accessible only from all the new workstations available inside the store.
Non-Functional Requirements
 The system should be robust in nature in order to generate error free results.
 The interface should allow all the store staff to easily able to understand system
features.
 The system should be accessible from the store workstations at all times.
Page 4

4. Project Cost/Benefit Analysis
Cost benefit analysis is a project management techniques that is used to determine an
estimated financial benefit margin from the project against the total costs that are
encountered in the project (Schwalbe 2015). Generally, the projects with estimated high
financial returns along with high return on investment rate are accepted and allowed to
proceed.
Cost Benefit Analysis for RME Inc.
Total Project Budget 9
Implementation of IS System 800000 2000000
Operating Cost 500000 2180000 2376200 2590058 2823163.22 3077247.91
Total Cost for the project 1300000 180000 376200 2590058 2823163.22 3077247.91
Year of
Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic benefit $0.00 $1,80,000.00 $3,76,200.00
$25,90,058.0
0 $28,23,163.22 $30,77,247.91
Discount Rate 6% 1 0.9434 0.8900 0.8396 0.7921 0.7473
6
PV Of Benefits $0.00 $1,69,811.32 $3,34,816.66 $21,74,662.64 $22,36,209.70 $22,99,498.65
NPV of all BENEFITS $0.00 $1,69,811.32 $5,04,627.98
$26,79,290.6
2 $49,15,500.32 $72,14,998.97
$1,54,84,229.2
1
One Time Costs $13,00,000.00
Recurring Cost
Maintenance cost $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00
Discount Rate (6)% 1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
6
PV Of Maintenance Cost $0.00 $11,320.75 $10,679.96 $10,075.43 $9,505.12 $8,967.10
Operating Cost (Decrease 11%) $5,00,000.00 $4,45,000.00 $3,96,050.00 $3,52,484.50 $3,13,711.21 $2,79,202.97
11
Discount Rate (6)% $1.00 $0.94 $0.89 $0.84 $0.79 $0.75
6
PV of Operating Cost $0.00 $4,19,811.32 $3,52,483.09 $2,95,952.78 $2,48,488.66 $2,08,636.70
PV Of Recurring Costs $0.00 $4,31,132.08 $3,63,163.05 $3,06,028.21 $2,57,993.78 $2,17,603.80
NPV Of All Costs $13,00,000.00
$17,31,132.0
8 $20,94,295.12
$24,00,323.3
4 $26,58,317.12 $28,75,920.92
$1,30,59,988.5
7
Overall NPV $24,24,240.64
Page 5

Overall ROI = (Overall NPV / NPV Of All Costs 0.19
Break-Even Analysis
Yearly NPV Cash Flow $0.00 $1,58,490.57 $3,24,136.70 $21,64,587.21 $22,26,704.57 $22,90,531.55
Overall NPV Cash Flow $13,00,000.00 ($15,61,320.75)
($15,89,667.14
) $2,78,967.29 $22,57,183.20 $43,39,078.05
Project break-even occurs between years 2 and 3
Use 1st year of positive cash flow to calculate break-even fraction 2.7344 years
Table 1: Table Caption
Add your Project Cost Benefit Analysis table here.
Page 6

5. Project Management and Scheduling
From the requirements and scope of the project, it has been estimated that the overall
project will take around 3-4 months depending on the nature of work performed by the
project team. The estimated project schedule is shown in the following table and also
represented in the form of a Gantt chart.
WBS Task Name
0 Information System Development for RME Inc.
1 Requirement Analysis
1.1 Gathering Requirements
1.2 Analysis of Requirements
1.3 Finalising the Project
2 System Design
2.1 Develop System Blueprint
2.2 Define System Architecture and Parameters
2.3 Design and Develop the System
3 Implementation
3.1 Setting Up Central Server
3.2 Setting Up Workstations
3.3 Implementation of the Developed System
4 Testing
4.1 White Box Testing
4.2 Black Box Testing
4.3 Interface and Features Testing
5 Deployment
5.1 Deployment of the Information System
5.2 Checking for Errors
5.3 Checking the Interface after Deployment
6 Maintenance
6.1 Develop System Maintenance Plan
6.2 Provide Training Staff for Maintenance
6.3 System Handover
Add your Gantt Chart here.
FIGURE 1: Figure Caption
Page 7

The table above represents the overall work breakdown structure of the project that is also
scheduled in order to determine the schedule for the entire project. The Gantt chart
represents the schedule of the entire project and work allocation at different points of time
along with the linkages between the tasks (Fleming and Koppelman 2016). Work breakdown
structure is very closely related with Gantt chart as without the work breakdown structure,
the project cannot be accurately scheduled and the Gantt chart cannot be developed.
Page 8

6. System Information Requirement Investigation Techniques
The main stakeholders involved in the project are listed as follows.
Project Manager (Internal) – He will manage and control the entire project.
IT Supervisor (Internal) – He will determine IT requirements of the project and also perform
supervision and reporting duties in the project.
Finance Manager (Internal) – He will manage the finances of the project.
Information System Developer (External) – He will deploy a team who will execute the
information development, implementation and integration process.
Some system investigation techniques, there purpose and the justifications for the choices
are as follows.
PersonaI Interview – In this process, the employees are called one by one or in a team
meeting where they are needed to express the issues faced by them in operating them the
new information system. This will generate a clear view on the issues and the organisation
will be able to address the issues.
System Monitoring – Other than personal interview, the organisation can also identify issues
by constant monitoring of the project and note down any system issues found. This is an
effective technique because the company can regularly review the overall operations and
performance of the information system.
Project Review – The final technique discussed here is the review of the project report
document to identify gap areas that may cause issues at a later point of time. This is a
selected method because the company is able to identify the system related issues from the
root and thus appropriate mitigation plan can be developed easily.
Page 9

7. Reflections and Conclusions
From working in this project, I have achieved a lot in gathering knowledge that will help me
in my current course and as well as my upcoming professional journey. I have learned about
various project management tools and techniques that will help me to manage various
simple and complex projects in the near future.
The project will involve the implementation of an information system for RME Inc. such that
the manual operational errors can be minimised and the organisation is able to grow further
in the market. As per the initially decided parameters, the project will be done within $0.8
million budget and it is estimated that the revenue stream of the organisation will increase
by 9% within the next year.
Page 10

8. References
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Madon, S. and Krishna, S., 2018. The Digital Challenge: Information Technology in the
Development Context: Information Technology in the Development Context. Routledge.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Page 11