Feasibility Evidence Description (FED)

Transcription

1 Feasibility Evidence Description (FED) NICE E-Commerce Team 7 Deborah Baker Assistant PM, QFP (Team & Web Req), IIV & V, Team Website Admin Antonis Papantoniou Project Manager, Prototyper, Software Architect, Feasibility Analyst Runxuan Wei Prototyper, Life Cycle Planner Weijiang Dang Developer, Operational Concept Engineer King Lun Au Developer, Life Cycle Planner Dhananjay Nakrani Prototyper, Operational Concept Engineer, Team Website Admin December 1, 2015

2 Version History Date Author Version Changes made Rationale 08/20/05 PP 1.0 Original template for use with LeanMBASE v1.0 08/30/06 SK, RT 1.6 Add template table Remove Section 3. Requirement Traceability 10/06/06 SK 1.61 Removed Section 1.6 Initial draft for use with LeanMBASE v1.0 Consistent format Move to Supporting Information Document Section 1.6 was duplicated with section 1.7 due to Format error 09/14/07 SK 1.9 Updated Section 2 Consistent with LeanMBASE1.9 08/25/08 IC /14/09 SK 2.1 Moved Section 1.1 to 1.2 Add Section 1.2 Updated Section 3 and add Updated Section 6, 6.3 Embedded description in each Table Removed Section Definition Consistent with IICM-Sw To be consistent with ICM EPG template set standard V2.1 To leanify the artifact 08/17/12 TK 2.2 Updated Section 2, 3, and 6 To be consistent with IICSM-Sw 12/1/15 DB 2.5 Updated for NICE Project Used for NICE Project 12/7/15 DB 2.6 Updated after TRR Updated after TRR FED_TRR_F15a_T07_V2.6.docx ii Version Date: 08/17/12

3 Table of Contents Feasibility Evidence Description (FED)...i Version History... ii Table of Contents... iii Table of Tables...iv Table of Figures... v 1. Introduction Purpose of the FED Document Status of the FED Document Business Case Analysis Cost Analysis Benefit Analysis ROI Analysis Architecture Feasibility Capability Feasibility Evolutionary Feasibility Process Feasibility Risk Assessment NDI/NCS Interoperability Analysis Introduction Evaluation Summary FED_TRR_F15a_T07_V2.6.docx iii Version Date: 08/17/12

4 Table of Tables Table 1: Personnel Costs... 2 Table 2: Hardware and Software Costs... 3 Table 3: Benefits of NICE E-Commerce System... 4 Table 4: ROI Analysis... 5 Table 5: Level of Service Feasibility... Error! Bookmark not defined. Table 6: Capability Requirements and Their Feasibility Evidence... 6 Table 7: Evolutionary Requirements and Their Feasibility Evidence... 6 Table 8: Rationales for Selecting COTS-Based (NDI) Systems Model... 8 Table 9: Risk Assessment... 9 Table 10: NDI Products Listing Table 11: NDI Evaluation FED_TRR_F15a_T07_V2.6.docx iv Version Date: 08/17/12

5 Feasibility Evidence Description (FED) for Architected Agile Template Version x.x Table of Figures Figure 1: ROI Analysis Graph... 5

6 1. Introduction 1.1 Purpose of the FED Document The purpose of Feasibility Analysis is to objectively and rationally uncover: The strengths and weaknesses of an existing business or proposed venture Opportunities and threats as presented by the environment The resources required to carry through And ultimately the prospects for success Several methods of performing this analysis include: Cost vs benefits analysis Technology feasibility Economic feasibility Legal feasibility Operational feasibility Schedule feasibility 1.2 Status of the FED Document This is the final release of the document, and has been updated for the TRR at the end of the semester and project. FED_TRR_F15a_T07_V2.6.docx 1 Version Date: 08/17/12

7 2. Business Case Analysis Assumptions People are interested in buying the clients products online There is a market for these products people desire health-related products Vendors are interested in selling Stakeholders Initiatives Value Propositions Beneficiaries Developers Clients Maintainers Customers/Consumers Vendors/Suppliers Design & develop the new system Maintain the system Training, documentation and tutorials Marketing Host a blog with information to educate consumers Cost (Cost factors) Development costs Maintenance costs Web server hosting, domain name Connect suppliers with consumers Educate consumers Provide economic development Empower entrepreneurs Provide a platform to purchase herbal & health related products Consumers Vendors/Suppliers Benefits (Key performance indicators KPIs) Increase in net income generated from suppliers sales Increase in the number of suppliers, customers and subscribers 2.1 Cost Analysis Costs include personnel costs, specific to the client s hours, and costs for hardware and software related to the system operations. We have established the ROI for a one-semester project, after determining that the NDI software we are utilizing provided most of the capabilities we were looking for Personnel Costs Table 1: Personnel Costs Activities Time Spent (Hours) FED_TRR_F15a_T07_V2.6.docx 2 Version Date: 08/17/12

8 Development Period (12 weeks) Valuation and Foundations, and Development and Operations Phases: Time Invested (C577a, 12 weeks) Client: Meeting via , phone and other channels [2 hrs/week * weeks * 3 people] Client: Architecture Review Boards and Core Capability Drive-through 13.5 session [1.5 hours * 3 times * 3 people] Client: Deployment of system in operation phase and training 20 - Installation & Deployment [2 hrs * 2 times * 2 people] - Training & Support [2 hrs * 2 times * 3 people] Total Maintenance Period (1 year) Maintenance [4 hr/month * 12 weeks] 48 Total Hardware and Software Costs Table 2: Hardware and Software Costs Type Cost Rationale Web Hosting and Domain $4.99/month GoDaddy provides Economy web hosting services including domain name to deliver the minimum capabilities needed and can scale as necessary to meet growth Payment processing fees 2.9% +.30 Stripe fees for payment processing per transaction Web Hosting Maintenance $25-$100/hr For website changes and fixes Software Licenses (potential) Unknown May need capabilities above and beyond free e-commerce tools 2.2 Benefit Analysis Benefits for this project are very subjective, as there is no current business model or existing process that can be improved on. The overall objective of the system is: Increase supplier sales Create NICE income as a percentage of supplier sales Increase in NICE reputation and outreach to the alternative health community Currently the clients have approximately 10 vendors that sell through other means. FED_TRR_F15a_T07_V2.6.docx 3 Version Date: 08/17/12

9 Table 3: Benefits of NICE E-Commerce System Current activities & resources used % Increase Time Saved (Hours/Year) No direct connection between local healthcare suppliers and customers Increase customer base for suppliers 25% Not quantifiable Increase sales for suppliers 25% Not quantifiable Increase health awareness for customers 25% Not quantifiable Create income for NICE business 100% No income exists today Total 2.3 ROI Analysis As there is no current system, calculating an ROI is extremely hard. The bottom line is that if the website does not generate enough income to cover the cost of web hosting, domain fees and web hosting maintenance, then it is not feasible to continue. The numbers below are a general assumption of when the amount of client hours and income will impact cost. For our purposes, we converted personnel costs to currency to better understand costs and benefits. We will use $100/hour as the basis for labor cost estimation. For initial development costs for the client, we are estimating hours of client time, at $100/hr = $10,550. For maintenance costs, we used 48 hours annually at an average of $50/hour, increasing by 10% annually. For cost calculations, we plan to increase annual costs by 10% to accommodate for maintenance and growth. For benefit calculations, we calculated based on net income alone without consideration of the soft benefits such as increasing health awareness for customers. As the store owner, the commission that will be collected from the multiple vendors is planned to be 10% of total sales, however, PayPal payment process fees are 2.9% of the sale price, and it is expected that the store owner will cover these fees. The client has provided a baseline for one vendor s current sales: $48K per year. They expect to have 10 vendors added during the first year, and expect to double their vendor base annually for the next 3 years. For the first year of business, based on $3,408 commission per vendor (48000x7.1%), they can expect from $3,408 to $34,080 in commission during the year. For the purposes of the ROI, we will use the midpoint of this range for our calculations for the first year, or $18,744. And last, the natural healthcare industry is projected to grow at a rate of 7.2% per year. 1 1 Source: Euromonitor International, Health and Wellness the Trillion Dollar Industry in 2017: Key Research Highlights, by Ewa Hudson. LINK FED_TRR_F15a_T07_V2.6.docx 4 Version Date: 08/17/12

10 Year Cost (10%) Table 4: ROI Analysis Benefit (vendor base + 7.2%) Cumulative Cost Cumulative Benefit ROI 2015 $10,550 + $60 0 $10, $66 + $2400 $18,744 $13,076 $18, $73 + $2640 $73,068 $15,789 $91, $80 + $3194 $156,657 $19,063 $248, $88 + $3514 $335,872 $22,665 $584, Figure 1: ROI Analysis Graph ROI FED_TRR_F15a_T07_V2.6.docx 5 Version Date: 08/17/12

11 3. Architecture Feasibility 3.1 Capability Feasibility A trade-study was completed on various e-commerce COTS solutions that are available today. See Section 6.2 for the full results of the trade study. As a result, WordPress with the WooCommerce and WC Vendors plugins was selected as the solution for this project. Table 5: Capability Requirements and Their Feasibility Evidence Capability Requirement CR-1: Multi-Vendor Capability CR-2: Vendor Product Listings and Management CR-3: Customer search, combined shopping cart and purchase CR-4: Website owner/moderator CR-5: Blog posting and management CR-6: Account Management Product Satisfaction Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Vendor use case Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins. Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Vendor use case Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins. Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Buyer use case Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins. Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Administrator use case Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins. Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Vendor and Admin use case Software/Technology used: WordPress with WooCommerce and WC Vendors Plugins. Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: Manage account settings use case 3.2 Evolutionary Feasibility Table 6: Evolutionary Requirements and Their Feasibility Evidence Evolutionary Requirement Product Satisfaction FED_TRR_F15a_T07_V2.6.docx 6 Version Date: 08/17/12

12 ER-1: Add additional capability for user forums Software/Technology used: WordPress with bbpress Plugin Feasibility Evidence: see Section 6.2 for trade study Referred use case diagram: User Forums use case FED_TRR_F15a_T07_V2.6.docx 7 Version Date: 08/17/12

13 4. Process Feasibility Decision Criteria Rating Scale; 0:Very Low; 1:Low; 2: Medium; 3:High; 4:Very High Importance Rating Scale: 1:Low; 2: Medium; 3:High Table 7: Rationales for Selecting COTS-Based (NDI) Systems Model Criteria Importance Project Status Rationales 30 % of NDI/NCS features 3 4 Multiple NDIs Used Single NDI/NCS 2 4 Using one NDI as a platform and integrating the rest Unique/ inflexible business Very flexible, and non unique. 1 1 process Ecommerce is common Need control over upgrade A lot of upgrades will be done 2 1 / maintenance directly by NDI owners Rapid deployment 3 3 Website must be running ASAP Critical on compatibility 2 2 Critical for different NDIs to be compatible Internet connection Ecommerce is internet 1 1 independence dependent Need high level of services Professional look and payment 2 3 / performance process required Need high security 2 3 Secure payments and accounts are essential Asynchronous No requirement on 2 1 communication asynchronous communications Be accessed from Website must be accessible 3 3 anywhere from internet Critical on mass schedule constraints 1 1 No important constraints Lack of personnel capability 2 2 Require little upfront costs 2 3 Require low total cost of ownership Not-so-powerful local machines Company doesn t have maintainers/developers employed Startup nonprofit company has limited budget Running costs must be kept low since there is no profit involved Client doesn t have any hardware infrastructure FED_TRR_F15a_T07_V2.6.docx 8 Version Date: 08/17/12

14 5. Risk Assessment Table 8: Risk Assessment Risks Customer-developer-user team cohesion Risk Exposure Potential Probability Magnitude Loss Risk Exposure Deployment Risk Risk Mitigations Team members are being held accountable for their tasks, and micro-managing methods have produced some improvements. Still, sometimes other team members have to step in to cover for uncompleted tasks. Write detailed deployment manual for the client FED_TRR_F15a_T07_V2.6.docx 9 Version Date: 08/17/12

15 6. NDI/NCS Interoperability Analysis 6.1 Introduction We evaluated quite a few different COTS systems available, as e-commerce is a common and popular capability today. See section 6.2 for a full summary of our Trade Study COTS / GOTS / ROTS / Open Source / NCS Table 9: NDI Products Listing NDI/NCS Products Apache MySQL Xcart WordPress WooCommerce Plugin for WordPress WC Vendors Plugin for WooCommerce Stripe PayPal phpbb bbpress Solr Google AJAX search Oauth Purposes Web Server Database Product listing, payment blogging Additional blogging functionality E-Commerce capability Multi-vendor capability Payment processing Payment processing Forum tool Forum tool Search tool Search tool Authentication tool Connectors In this project, we use PHP/MySQL Connector to enable the PHP web application to retrieve and query data from the database. This is provided in the base WordPress functionality Legacy System No legacy systems exists. FED_TRR_F15a_T07_V2.6.docx 10 Version Date: 08/17/12

16 6.2 Evaluation Summary Table 10: NDI Evaluation Summary * Ranking and market share: Trade Study For our purposes, we needed a specific type of E-Commerce COTS, one that incorporated a Multi-Vendor marketplace. This allows multiple vendors the permission to create their own store, list and sell product, yet be separate from other vendors that sell on the same E-Commerce website. In addition, there must be a global cart, so that multiple vendors products can be purchased in one transaction. FED_TRR_F15a_T07_V2.6.docx 11 Version Date: 08/17/12

17 Of the various E-Commerce COTS, there were a handful that had the Multi-Vendor capability available, with varying degrees of cost and capability. We initially narrowed the choices down to two: shopify and xcart. We quickly dismissed shopify, as the pricing scheme did not meet cost requirements. xcart s Multi-Vendor module had a cost of $1495. After further evaluation of other xcart capabilities, we thought we might be able to develop the Multi-Vendor capability ourselves, but were not sure how long this would take, and even if we had the resources to do this. At this point, we found another COTS that seemed to provide the capabilities we needed, without significant development, and without the significant cost of the xcart Multi-Vendor module. As you can see from the table results, we decided that the Wordpress, WooCommerce and WC Vendors Module combination was the best fit based on minimal cost and minimal development. There are a few areas that may require development, but we feel that we have the resources to be able to do this. Going forward, modules are inexpensive and would provide opportunities for additional features. FED_TRR_F15a_T07_V2.6.docx 12 Version Date: 08/17/12