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 Delis 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 2nd 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 Register

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 disposalplease 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)

Exercise 2: Data & Cost AnalysisBefore 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
DeliFor your Stage 1 Project of the Case Study, you
identified a strategic area for improvement of your Hometown Delis 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 AssignmentThis 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: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 ConstraintsSince 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 2nd 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
AnalysisHometown Deli *System
Requirement(s)Model,
Type, etc.Labor
Rates, Hours, etc.Quantity,
etc.CostHardware ComputerDell 3210 (32G RAM)2 @ $1,720.00 ea$3,440.00 PrinterHP 6220i1 @ $345.00$345.00Software Sage CRMBasic$11,120.00 QuickenPremiere$129.99Service/Support Sr Analyst$157.00 hr @ 12 hours$1,884.00 Trainer$57.00 hr @ 4 hours$228.00 12 month supportSage CRM Basic$1,000.00Data/DB
Support Oracle DAASOnline Data as a Service1st 20GB / every 5 GB thereafter($2,000.00 / $400.00)(Need 25 GB)$2,400.00 HelpDesk SupportBasicFREEMISC
Items PC-Ready Cash RegisterWhatever It Takes2 @ 1,750.00 ea$3,500.00 Paper & Printer Supplies 24 Months Supply$7,200.00Network/Comms ISPCharter18MBps w/30MB Free Space for Web Site$37.50 month / 24 Months$900.00 In-House WiFiLinkSys D3100 Secure Router with WPA-2$200.00 Secure VPNTransact-a-Lot (Bank)$27.00 month / 24 Months$648.00Sub
Total$32,994.99Taxes
(@ 9%)$2,969.55Other
Direct Costs (S&H, etc)(@5%)$1,649.75Total$37,614.29* NOTE: This data is
fictitious (Example Only), whereas your information cannot beUse resources at your disposalplease 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:Full
PointsPartial
PointsNo
pointsPossible PointsPoints EarnedModel
CompletenessThe
model presents the major areas.The
model presents most of the major areas.No
major areas are included.16Organization
of DataData
(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.12Analysis
PresentationAnalysis
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.124040
points =10% of final course grade(total points x .10)