IFSM300 Exercise 2

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” *

System Requirement(s)	Model, Type, etc.	Labor Rates, Hours, etc.	Quantity, etc.	Cost
Hardware
Computer	Dell 3210 (32G RAM)		2 @ $1,720.00 ea	$3,440.00
Printer	HP 6220i		1 @ $345.00	$345.00
Software
Sage CRM	Basic			$11,120.00
Quicken	Premiere			$129.99
Service/Support
Sr Analyst		$157.00 hr @ 12 hours		$1,884.00
Trainer		$57.00 hr @ 4 hours		$228.00
12 month support	Sage CRM Basic			$1,000.00
Data/DB Support
Oracle DAAS	Online Data as a Service		1st 20GB / every 5 GB thereafter	($2,000.00 / $400.00)
			(Need 25 GB)	$2,400.00
HelpDesk Support	Basic			FREE
MISC Items
PC-Ready Cash ter	Whatever It Takes		2 @ 1,750.00 ea	$3,500.00
Paper & Printer Supplies			24 Months Supply	$7,200.00
Network/Comms
ISP	Charter	18MBps w/30MB Free Space for Web Site	$37.50 month / 24 Months	$900.00
In-House WiFi	LinkSys D3100 Secure Router with WPA-2			$200.00
Secure VPN	Transact-a-Lot (Bank)		$27.00 month / 24 Months	$648.00
			Sub Total	$32,994.99
			Taxes (@ 9%)	$2,969.55
			Other Direct Costs (S&H, etc)(@5%)	$1,649.75
			Total	$37,614.29

* NOTE:
This data is fictitious (Example Only), whereas your information cannot be

Use resources at your disposal—please ensure you
properly cite your resources.

When indicating your “Total” cost, specify what
percentage it entails of your budgetary amount (see “Budgetary
Constraints”). Of course, I do not
expect this work to be exact, but your model should at least show the detail
that the example provides.

The “right” and “wrong” answers have to
do with whether or not you correctly model a data and cost analysis. Your model
will be evaluated on whether it is applicable to the process identified (Stage
1), all major areas are included (per the template), and it is appropriate to
the Deli. Use the Rubric below to be
sure you have covered all aspects.

GRADING RUBRIC:

Attribute	Full Points	Partial Points	No points	Possible Points	Points Earned
Model Completeness	The model presents the major areas.	The model presents most of the major areas.	No major areas are included.	16
Organization of Data	Data (to include cost) in the areas are organized in a logical manner, and all system, software, etc. is properly represented.	Data may not be organized logically, or may be lacking in demonstration of analysis, and/or presentation.	Data is not organized at all.	12
Analysis Presentation	Analysis is professionally presented; uses a logical structure, and spelling is correct.	Analysis is not professionally presented, and/or contains spelling/mathematical errors.	Analysis is poorly presented and does not convey the information.	12
			TOTAL Points	40
		40 points =10% of final course grade	Points Recorded (total points x .10)