ITM426 Module 4 SLP: Feasibility Study & Quality Development
Module 4 - SLP
FEASIBILITY STUDY AND QUALITY DEVELOPMENT
For Module 4, Part I of the assignment is to become familiar with the cost benefit analysis method to justify software selection. Follow the example given at FreeTutes, available at the link below. The CBA template is a good example of a typical cost benefit analysis, and the site contains other links to systems analysis. Use the cost categories given on the site to develop the SLP. You will not be calculating the "select evaluation methods" since this requires math formulas.
For Part II of the assignment, the purpose is to introduce you to Object-Oriented modeling techniques and use the output model to document the system and train users. Structure process and data models were introduced in previous modules. Object-oriented systems analysis and design have adopted the concept of Use Cases to analyze processes and data and corresponding behaviors. Use Cases are a representation of an individual actor (user or entity) interfacing with a system. For example, selling a product to a customer can be represented with two actors, the customer and the seller, if the transaction is face-to-face. In online systems the seller is the online store, and it is redefined as the purchasing database system.
Use Cases are specified through UML (Unified Modeling Language) notations and written scripts. For the time being, your main concern should be expressing Use Cases in a clear and easily-understood write-up, so that others can interpret them. The following sites provide information on Use Cases.
Search Software Quality. (2012). Use case definition. Retrieved from http://searchsoftwarequality(dot)techtarget(dot)com/definition/use-case
Sparx Systems (2012). The use case model. Retrieved from http://www(dot)sparxsystems(dot)com/resources/uml2_tutorial/uml2_usecasediagram.html and http://www(dot)sparxsystems(dot)com/resources/map_uc.html
GatherSpace. (2012). Writing effective use cases and user story examples. Retrieved from http://gatherspace(dot)com/static/use_case_example.html
SLP Assignment
SLP Assignment Part I
Calculate a cost benefit analysis (CBA) for the inventory COTS acquisition you investigated in Case 4. Include major cost categories associated COTS purchase price, personnel, equipment, supplies, 5-year maintenance, training, and consultant fees. Be detailed in your categories to show where the money is being spent and what the benefits will be for the proposed system. Follow the CBA example for this assignment and include a short written explanation of your analysis.
Use the following site as a reference to the Performing Cost Benefit Analysis.
Please note that tangible benefits are those that can be quantified in terms of dollars or unit volumes such as reduced expenses, increases throughput, or fewer processing errors. Alternatively, intangible benefits cannot be quantified and examples are customer goodwill, employee morale, better decision making, etc.
FreeTutes. (2012). Cost benefit analysis. Systems Analysis and Design. Retrieved from http://www(dot)freetutes(dot)com/systemanalysis/sa3-cost-benefit-analysis.html
Plowman, M. (September, 2011). Writing a cost benefit analysis. Bright Hub. Retrieved from http://www(dot)brighthub(dot)com/office/project-management/articles/58181.aspx
Eresource. (2010). What are the tangible and intangible benefits of ERP systems. Retrieved from http://www(dot)eresourceerp(dot)com/tangible-and-intangible-benefits-of-ERP-system.html
Additionally, review a system configuration and hardware requirements for the Fishbowl inventory application as a guideline to deliver your inventory system CBA.
Fishbowl. (2012). Setup guide and system requirements. Retrieved from http://www(dot)fishbowlinventory(dot)com/files/system-requirements-setup-guide.pdf
For SLP Part II, you will be describing the assignment as a scripted Use Case and not as a UML notation. Please complete the Use Case Template as noted in the following website under pages 1-3 and up to the Main scenario section in page 3. You do not need to complete extensions, variations and special requirements in pages 3-5. Select the Microsoft Word format "Use Case Template" to download the template.
Tecno Solutions. (2012). Use case templates. Retrieved from http://www(dot)technosolutions(dot)com/use_case_template.html
SLP Assignment Part II
Provide a Use Case detailed description for the following user and system interactions. For this assignment the customer is the “actor” and Amazon database is the system.
Create a Use Case for a customer searching Amazon.com for the availability of products wishing to purchase such as books, music, apps for Android, and digital games. The customer will also place an order for the multiple items via the Amazon screen for “add to cart” and “add to wish list” options.
Use the Techno Solutions Use Case Template.
Segment the Use Case into separate activities and number the step.
Show alternative courses of action or events separately (i.e., system steps when phone is busy or customer enters an invalid ID).
SLP Assignment Expectations
Your paper will be evaluated on the following criteria:
For Part I, complete the cost benefit analysis in a Word table. The accompanying explanation must be written in 2-3 pages and be double spaced. Include a cover page with the assignment.
For Part II, complete the Techno Solutions Use Case Template.
Deliver a single paper containing SLP Parts I and II properly labeled for a total of 5-7 page paper excluding cover page and reference list.
The essay will be graded on these requirements
Precision: the question asked is answered.
Clarity: Your answer is clear and shows your good understanding of the topic.
Breadth and Depth: The scope covered in your answer is directly related to the questions of the assignment and the learning objectives of the module.
Critical thinking: Incorporate your reactions, examples, and applications of the material to business that illustrate your reflective judgment and good understanding of the concepts.
Your short essay is well written and the references are properly cited and listed.
Cost-Benefit Analysis for Inventory Commercial Off-the-Shelf Acquisition and Creation of Use Case for an Amazon.com Customer Purchasing a Product
Name
Institution
Cost-Benefit Analysis for Inventory Commercial Off-the-Shelf Acquisition and Creation of Use Case for an Amazon.com Customer Purchasing a Product
Cost-benefit analysis is a method of estimating the total benefits and potential costs of a project to determine if the project is viable, or if the organization should abandon it and another project pursued (Boardman, 2010). The method is useful in comparing projects as well as ascertaining the feasibility of the investment decision.
Costs for the Proposed Software
Year 1
Year 2
Year 3
Year 4
Year 5
Costs
Purchase Price
20,000
Personnel
8,000
10,000
12,000
14,000
15,000
Equipment
10,000
Maintenance
0
1,000
2,000
3,000
4,000
Training
1,000
1,200
1,200
1,400
1,500
Consultation Fees
1,200
Costs at Year End
40,200
12,200
15,200
18,400
20,500
Cumulative Costs
40,200
52,400
67,600
86,000
106,500
Benefits for the Proposed Software
Year 1
Year 2
Year 3
Year 4
Year 5
Benefits
System Value
10,000
10,000
10,000
10,000
10,000
Increase in Sales
15,000
17,000
19,000
20,000
21,000
Benefits at Year End
25,000
27,000
29,000
30,000
31,000
Cumulative Benefits
25,000
52,000
81,000
111,000
142,000
The figures are in USD
Profits = Benefits – Costs
= 142,000 – 106,500
= USD 35,500
The system brings benefits to the organization. Hence, it is a financially feasible project.
Cost Categories
Purchase Price
The purchase price covers software costs. The reason for acquiring the new software is to allow the tasks be done more efficient than the current system. The need for the new software is to reduce expenses as well as to allow for market differentiation. In this era, having an advantage in technology is synonymous with having a business advantage (Bharadwaj, Sawy, Pavlou & Venkatraman, 2013). It is, therefore, a viable venture to upgrade current systems and purchase the up-to-date software. One has to employ an efficient method to allow for the selection of the best software from the available alternatives.
Personnel
Personnel costs are those who associate with the compensation of persons involved in system development as well as all their fringe benefits. Compensation includes salaries, overtime, and other bonuses. On the other hand, fringe benefits include pension funds, insurance plans, and special allowances among others.
Equipment
Equipment acquisition depends on their suitability for the organization use, ease of maintenance, cost, and performance. Amongst others, the equipment to be acquired include computers, servers, and networking devices.
Maintenance
The maintenance costs of the software are as a result of software changes after the user receives it. There are three types of software maintenance costs. These are corrective, adaptive and perfective maintenance costs (Grubb & Takang, 2003). Corrective costs constitute costs that come as a result of software modifications aimed at correcting issues detected after software deployment. Adaptive maintenance costs, on the other hand, are the costs incurred during the modification of the software to retain its efficiency in a business environment that is changing. Finally, perfective maintenance costs are those that come by as a result of modifying the software solution to improve its performance.
Training
Training programs are essential to allow for the proper use of the system. It may be difficult to decipher the training costs without having an efficient method of cost analysis. Facilities, where the training would take place, the instructors and the materials required, need identification for a proper estimation of the training costs. Some of the intangibles that are to be known include company expectations, ...
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