Design Alternatives Matrix. v1.0. Robert Bell Anthony Helms Amanda Hollingsworth Seth Johnson Tiffany Pike A.J. Withem

Transcription

1 Design Alternatives Matrix v1.0 Rbert Bell Anthny Helms Amanda Hllingswrth Seth Jhnsn Tiffany Pike A.J. Withem

2 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight TECHNICAL FEASIBILITY Size Mderate Mderate Mderate Mderate All team 3 All team 3 All team members have members have members have been clients f been clients f been clients f a fitness center a fitness center a fitness center and therefre and therefre and therefre have a basic have a basic have a basic understanding understanding understanding f fitness f fitness f fitness center systems. center systems. center systems. Familiarity with Business Prcesses One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. 3 Dataprise Inc., is an I.T. cnsulting firm that has helped thusands f businesses which have benefited frm their unique brand f cmprehensive, affrdable and persnalized IT supprt. Dataprise cnsultants are well adept at slving business prblems using technlgy. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll Kim Allen has wned ADD- Life fitness center fr 11 years. Emplyees are usually students wh have mderate fitness center knwledge. Management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Kim Allen has wned ADD- Life fitness center fr 11 years. Emplyees are usually students wh have mderate fitness center knwledge. Management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Kim Allen has wned ADD- Life fitness center fr 11 years. Emplyees are usually students wh have mderate fitness center knwledge. Management is extremely knwledgeable f all the business prcesses required t maintain a fitness center.

3 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight Size Mderate Lw Mderate Lw Fur team members currently have r have had experience in a technical jb. Familiarity with Technlgy All team members have the high level f technical understanding needed t implement the system due t a CIS curriculum. The prpsed systems will utilize the existing web server (ff-site), 2 new wrkstatins, and a new server (client database). All team members have varying backgrunds in prgramming languages. 3 N BSG team member r management has extensive knwledge r experience with Micrsft SQL Server N BSG team member r management has extensive knwledge r experience with Intuit QuickBks Assisted Payrll. 3 Dataprise has cnsultants with skills and abilities in all areas f IT fr small and medium-sized businesses. Dataprise als has cnsultants wh specialize in netwrk installatin, infrmatin security, Micrsft and Cisc supprt, and help desk administratin. Dataprise cnsultants are well adept at using many frms f technlgy t slve business prblems. 3 Team members are familiar with different types f clud cmputing sftware, and ne team member has significant wrking knwledge f the EZ- Facility sftware Management has n trubleshting skills. Management and emplyees have n experience with database management and prgramming.

4 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight Size Small Mderate Mderate Small The prpsed 4 The prpsed system will system will utilize ne utilize ne web web server, server, ne ne server, server, and tw and tw wrkstatins. wrkstatins. Size Descriptin Management Supprt The prject team will cnsist f six team members. 4 The prpsed sftware packages will be installed n the server and tw wrkstatins used by emplyees and management. The prject team will cnsist f apprximately three Dataprise, Inc. cnsultants. 3 The prpsed system will utilize tw wrkstatins using Windws Operating System. The prject team will cnsist f six team members. Sftware will be web-based; therefre will nt need t be installed lcally n any f the wrkstatins. ORGANIZATION FEASIBILITY Size High High High Lw Kim Allen is 1 Kim Allen is 4 Kim Allen is the senir the senir the senir management management at management at at ADD-Life. ADD-Life. ADD-Life. Kim is fully Kim is fully Kim is fully supprtive f supprtive f supprtive f the prpsed the prpsed the prpsed system, but system, but is system, but ADD-Life uncmfrtable des nt want des nt have because t expse the in-huse management is ADD-Life t expertise unfamiliar with the risks required t the packaged assciated with take n a sftware, utsurcing, prject such Micrsft SQL such as she is as this. Server 2008 unwilling t and allw utside Intuit access t QuickBks financial Assisted infrmatin. Payrll, which wuld be required fr this type f system. 2 Kim Allen is the senir management at ADD-Life. Kim is fully supprtive f the prpsed system, and is in favr f using EZFacility, because there wuld be little t n training, and since the sftware will be web-based, there is n need t fr it t be installed lcally n any f the wrkstatins

5 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight User Supprt The primary users f the t-be system will be managers, emplyees, and clients f ADD-Life. 2 The primary users f the t-be system will be managers, emplyees, and clients f ADD-Life. 3 The primary users f the t-be system will be managers, emplyees, and clients f ADD-Life. 1 The primary users f the t-be system will be managers, emplyees, and clients f ADD-Life There is n in-huse expertise t design n a new infrmatin system. If the packaged sftware alternative is selected, there wuld need t be a cnsiderable amunt f user training because users have limited cmputer skills, and wuld have t learn the new sftware. If the utsurcing alternative is selected, there wuld need t be a cnsiderable amunt f user training because users have limited cmputer skills, and wuld have t learn the new system designed by Dataprise, Inc. If the clud cmputing alternative is selected, ADD-Life will use EZFacility. EZFacility is already prven t be user-friendly and since it is web based, requires little t n user training. The system will build a sense f cmmunity that ADD- Life strives t attain and increase verall satisfactin amngst the clients.

6 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight ECONOMIC FEASIBILITY Size High Mderate High Lw Develpment Csts $54, $47, $96, $6, Increased sales: 10% client increase with a 1% lss 2 Increased sales: 10% client increase with a 1% lss 4 Increased sales: 10% client increase with a 1% lss 1 Increased sales: 10% client increase with a 1% lss 5 10 Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Tangible Benefits Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54)

7 Alternative 1 In-Huse Develpment Alternative 2 Packaged Sftware Alternative 3 Outsurcing Alternative 4 Clud Cmputing Weight Intangible Benefits Imprved client satisfactin: Clients will better understand the benefits f membership at ADD-Life in cmparisn f ther fitness centers in the area. 2 Imprved client satisfactin: Clients will better understand the benefits f membership at ADD-Life in cmparisn f ther fitness centers in the area. 4 Imprved client satisfactin: Clients will better understand the benefits f membership at ADD-Life in cmparisn f ther fitness centers in the area. 1 Imprved client satisfactin: Clients will better understand the benefits f membership at ADD-Life in cmparisn f ther fitness centers in the area Imprved management satisfactin: Ability t track membership trends by clients Imprved management satisfactin: Ability t track membership trends by clients Imprved management satisfactin: Ability t track membership trends by clients Imprved management satisfactin: Ability t track membership trends by clients Ttals RECOMMENDATION: Bulldg Slutin Grup recmmends Alternative #4: Clud Cmputing using EZFacility.

8 Technical Feasibility: Can we build it? (Mderate) Feasibility Analysis Alternative 1 In Huse Familiarity with Business Prcesses: (Mderate) Team: (Mderate) All team members have been clients f a fitness center and therefre have a basic understanding f fitness center systems. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. Client: (High) Kim Allen has wned ADD Life fitness center fr 11 years. Emplyees are usually high schl r cllege students and have mderate fitness center knwledge. Due t lengthy duratin f emplyment, management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Familiarity with Technlgy: (Mderate) Team: (High) Three team members currently have technical jbs. One team member has had previus experience in a technical jb. All team members have the high level f technical understanding that will be needed t implement the system due t CIS curriculum. Hardware: The prpsed systems will utilize the existing web server (ff site), 2 new wrkstatins, and a new server (client database). All team members have an adequate knwledge f the hardware t be implemented in the prpsed system. A cmmn access card (CAC) reader will be installed n the wrkstatin at the frnt desk. Sftware: All team members have successfully cmpleted prerequisite CIS curses at Luisiana Tech University including: Database management Prblem slving Entry and advanced Visual Basic All team members have varying backgrunds in prgramming languages. Client: (Lw)

9 Management has n trubleshting skills. Management and emplyees have n experience with database management and prgramming. Prject Size: (Small) The prpsed system will utilize ne web server, ne server, and tw wrkstatins. The prject team will cnsist f six team members. Organizatinal Feasibility: If we build it, will they cme? (High) Prject champin: Kim Allen, wner f ADD Life Senir Management: Kim Allen is ur sle cntact in senir management at ADD Life She is fully supprtive f the prpsed system, but she is currently unwilling t allw team access t financial infrmatin. Users: Emplyees, managers, and clients will be the primary users f the system. Implementatin f the new system will require little t n training due t the lw cmplexity f the prpsed system. The system will build a sense f cmmunity that ADD Life strives t attain and increase verall satisfactin amngst the clients. Other Stakehlders: Since ADD Life is a small, private cmpany, the stakehlders are limited t emplyees and clients. Ecnmic Feasibility: Shuld we build it? (High) (See Cst Benefit Analysis fr Develpment and Recurring Csts) Tangible Benefits: Increased sales: 10% client increase with a 1% lss Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54)

10 Intangible Benefits: Imprves client satisfactin Clients will better understand the benefits f membership at ADD Life in cmparisn f ther fitness centers in the area. Imprves management satisfactin Intangible Csts: Ability t track membership trends by clients Dissatisfactin f clients Clients will nw have t scan ID cards befre allwed access t gym. Dissatisfactin f wrkers Cst Benefit Analysis: A wrker will have t sit at the desk and scan membership ID cards. *A new wrker will nt need t be hired t scan membership cards. The emplyee currently wrking at ADD Life s frnt desk will assume this respnsibility, alng with their present duties (withut pay increase). Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increase Sales* $0.00 $16, $16, $17, $18, $18, Regained Lss f Revenue** $0.00 $36, $36, $36, $36, $36, Reduced Payrll csts*** $0.00 -$ $ $ $ $ Ttal Benefits $0.00 $51, $52, $52, $53, $54, in tday's dllars $0.00 $48, $46, $44, $42, $40, Csts One-time csts Servers $6, Wrkstatins and Hardware $1, Sftware Licenses $5, Server Sftware $1, Develpment Labr $40, Ttal One-time csts $54, Recurring csts Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Sftware**** $1, $1, $1, $1, $1, Operatinal Labr $27, $27, $27, $27, $27, Ttal Recurring Csts $0.00 $28, $28, $28, $28, $28, Ttal Csts $54, $28, $28, $28, $28, $28, in tday's dllars $54, $26, $25, $23, $22, $21, Net -$54, $23, $23, $24, $25, $26, in tday's dllars -$54, $21, $21, $20, $20, $19, NPV $48, Assumed interest rate 0.06 *Increased Sales Assumes 5% increase in custmers per year with a 1% lss.

11 24 clients * $75 ne time registratin fee = $1, clients * $50 membership fee * 12 mnths = $14,400. $1,800 + $14,400 = $16,200. **Lss revenue recvery Estimated 10% * 600 clients = 60 clients. 60 clients * $50 membership fee * 12 mnths = $36,000. ***Payrll reductin 52 hurs * $7.25 = $ hurs bi weekly per year =104 hurs spent n calculating emplyee payrll. $35,000 salary / 104 hurs= $ ****Sftware Estimated fr licensing, sftware versin updates, maintenance.

12 Technical Feasibility: Can we build it? (Mderate) Feasibility Analysis Alternative 2 Packaged Sftware Familiarity with Business Prcesses: (Mderate) Team: (Mderate) All team members have been clients f a fitness center and therefre have a basic understanding f fitness center systems. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. Client: (High) Kim Allen has wned ADD Life fitness center fr 11 years. Emplyees are usually high schl r cllege students and have mderate fitness center knwledge. Due t lengthy duratin f emplyment, management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Familiarity with Technlgy: (Lw) Team: (Lw) N team member in BSG has extensive knwledge r experience with Micrsft SQL Server N team member in BSG has any experience with Intuit QuickBks Assisted Payrll. Client: (Lw) Management has n database knwledge r experience with Micrsft SQL Server Management and emplyees have n experience with Intuit QuickBks Assisted Payrll. Prject Size: (Mderate) The prpsed sftware packages will be installed n the server and tw wrkstatins used by emplyees and management. Organizatinal Feasibility: If we build it, will they cme? (High) Prject champin: Kim Allen, wner f ADD Life Senir Management: Kim Allen is ur sle cntact in senir management at ADD Life She is fully supprtive f the prpsed system, but she is currently unwilling t allw team access t financial infrmatin.

13 Users: Emplyees, managers, and clients will be the primary users f the system. Implementatin f the new system will require little t n training due t the lw cmplexity f the prpsed system. The system will build a sense f cmmunity that ADD Life strives t attain and increase verall satisfactin amngst the clients. Other Stakehlders: Since ADD Life is a small, private cmpany, the stakehlders are limited t emplyees and clients. Ecnmic Feasibility: Shuld we build it? (Mderate) (See Cst Benefit Analysis fr Develpment and Recurring Csts) Tangible Benefits: Increased sales: 10% client increase with a 1% lss Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Tangible Csts: Micrsft SQL Server 2008 $5,999 Intuit QuickBks Assisted Payrll $49 netime fee, $ per mnth Intangible Benefits: Imprves client satisfactin Clients will better understand the benefits f membership at ADD Life in cmparisn f ther fitness centers in the area. Imprves management satisfactin Ability t track membership trends by clients Intangible Csts: Dissatisfactin f clients Clients will nw have t scan ID cards befre allwed access t gym. Dissatisfactin f wrkers

14 Cst Benefit Analysis: A wrker will have t sit at the desk and scan membership ID cards. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increase Sales* $0.00 $16, $16, $17, $18, $18, Regained Lss f Revenue** $0.00 $36, $36, $36, $36, $36, Reduced Payrll csts*** $0.00 -$ $ $ $ $ Ttal Benefits $0.00 $51, $52, $52, $53, $54, in tday's dllars $0.00 $48, $46, $44, $42, $40, Csts One-time csts Intuit Quickbks Payrll $49.00 SQL Server 2008 $5, Wrkstatins and Hardware $1, Develpment Labr $40, Ttal One-time csts $47, Recurring csts Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Sftware**** $1, $1, $1, $1, $1, Operatinal Labr $27, $27, $27, $27, $27, Ttal Recurring Csts $0.00 $28, $28, $28, $28, $28, Ttal Csts $47, $28, $28, $28, $28, $28, in tday's dllars $47, $27, $25, $24, $22, $21, Net -$47, $22, $23, $24, $24, $25, in tday's dllars -$47, $21, $20, $20, $19, $19, NPV $53, Assumed interest rate 0.06 *Increased Sales Assumes 5% increase in custmers per year with a 1% lss. 24 clients * $75 ne time registratin fee = $1, clients * $50 membership fee * 12 mnths = $14,400. $1,800 + $14,400 = $16,200. **Lss revenue recvery Estimated 10% * 600 clients = 60 clients. 60 clients * $50 membership fee * 12 mnths = $36,000. ***Payrll reductin 52 hurs * $7.25 = $ hurs bi weekly per year =104 hurs spent n calculating emplyee payrll. $35,000 salary / 104 hurs= $ ****Sftware Estimated fr licensing, sftware versin updates, maintenance.

15 Technical Feasibility: Can we build it? (Mderate) Feasibility Analysis Alternative 3 Outsurcing Familiarity with Business Prcesses: (Mderate) Team: (Mderate) All team members have been clients f a fitness center and therefre have a basic understanding f fitness center systems. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. Client: (High) Kim Allen has wned ADD Life fitness center fr 11 years. Emplyees are usually high schl r cllege students and have mderate fitness center knwledge. Due t lengthy duratin f emplyment, management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Familiarity with Technlgy: (Mderate) Team: (Mderate) Dataprise, Inc. ffers bth breadth and depth f technical skills. Dataprise has cnsultants with skills and abilities in all areas f IT fr small and medium sized businesses. Cnsultants wh specialize in netwrk installatin, infrmatin security, Micrsft and Cisc supprt, and help desk administratin. Hardware: Dataprise, Inc. cnsultants will determine what is best fr this prject. Sftware: Dataprise, Inc. cnsultants will determine what is best fr this prject. Client: (Lw) Management has n trubleshting skills. Management and emplyees have n experience with database management and prgramming. Prject Size: (Mderate) The prpsed system will utilize ne web server, ne server, and tw wrkstatins. The prject team will cnsist f apprximately three Dataprise, Inc. cnsultants.

16 Organizatinal Feasibility: If we build it, will they cme? (High) Prject champin: Kim Allen, wner f ADD Life Senir Management: Kim Allen is ur sle cntact in senir management at ADD Life She is fully supprtive f the prpsed system, but she is currently unwilling t allw team access t financial infrmatin. Users: Emplyees, managers, and clients will be the primary users f the system. Implementatin f the new system will require little t n training due t the lw cmplexity f the prpsed system. The system will build a sense f cmmunity that ADD Life strives t attain and increase verall satisfactin amngst the clients. Other Stakehlders: Since ADD Life is a small, private cmpany, the stakehlders are limited t emplyees and clients. Ecnmic Feasibility: Shuld we build it? (High) (See Cst Benefit Analysis fr Develpment and Recurring Csts) Tangible Benefits: Increased sales: 10% client increase with a 1% lss Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Intangible Benefits: Imprves client satisfactin Clients will better understand the benefits f membership at ADD Life in cmparisn f ther fitness centers in the area. Imprves management satisfactin Ability t track membership trends by clients

17 Intangible Csts: Dissatisfactin f clients Clients will nw have t scan ID cards befre allwed access t gym. Dissatisfactin f wrkers A wrker will have t sit at the desk and scan membership ID cards. *A new wrker will nt need t be hired t scan membership cards. The emplyee currently wrking at ADD Life s frnt desk will assume this respnsibility, alng with their present duties (withut pay increase). Cst Benefit Analysis: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increase Sales* $0.00 $16, $16, $17, $18, $18, Regained Lss f Revenue** $0.00 $36, $36, $36, $36, $36, Reduced Payrll csts*** $0.00 -$ $ $ $ $ Ttal Benefits $0.00 $51, $52, $52, $53, $54, in tday's dllars $0.00 $48, $46, $44, $42, $40, Csts One-time csts Servers $6, Wrkstatins and Hardware $1, Sftware Licenses $5, Server Sftware $1, Outsurced Labr $80, Training Cst $2, Ttal One-time csts $96, Recurring csts Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Sftware**** $1, $1, $1, $1, $1, Operatinal Labr $27, $27, $27, $27, $27, Ttal Recurring Csts $0.00 $28, $28, $28, $28, $28, Ttal Csts $96, $28, $28, $28, $28, $28, in tday's dllars $96, $26, $25, $23, $22, $21, Net -$96, $23, $23, $24, $25, $25, in tday's dllars -$96, $21, $21, $20, $19, $19, NPV $5, Assumed interest rate 0.06 *Increased Sales Assumes 5% increase in custmers per year with a 1% lss. 24 clients * $75 ne time registratin fee = $1, clients * $50 membership fee * 12 mnths = $14,400. $1,800 + $14,400 = $16,200. **Lss revenue recvery Estimated 10% * 600 clients = 60 clients. 60 clients * $50 membership fee * 12 mnths = $36,000.

18 ***Payrll reductin 52 hurs * $7.25 = $ hurs bi weekly per year =104 hurs spent n calculating emplyee payrll. $35,000 salary / 104 hurs= $ ****Sftware Estimated fr licensing, sftware versin updates, maintenance.

19 Feasibility Analysis Alternative 4 Clud Cmputing Technical Feasibility: Can we build it? (Mderate) Familiarity with Business Prcesses: (Mderate) Team: (Mderate) All team members have been clients f a fitness center and therefre have a basic understanding f fitness center systems. One team member has experience wrking at a fitness center. Three team members have experienced the inefficiency f paper based payrll. Client: (High) Kim Allen has wned ADD Life fitness center fr 11 years. Emplyees are usually high schl r cllege students and have mderate fitness center knwledge. Due t lengthy duratin f emplyment, management is extremely knwledgeable f all the business prcesses required t maintain a fitness center. Familiarity with Technlgy: (Mderate) Team: (Mderate) Team members are familiar with different types f clud cmputing sftware One team member has significant wrking knwledge f the EZ Facility sftware Hardware: Wrkstatins with Windws XP Operating System will be used, and all team members are prficient with this perating system. Sftware: Team members require n specific sftware knwledge fr EZ Facility sftware Client: (Lw) Management is nt familiar with the EZFacility Sftware Emplyees have n experience with any versin f the EZFacility Sftware Prject Size: (Small) The prpsed system will utilize tw wrkstatins using Windws Operating System. The prject team will cnsist f six team members. Sftware will be web based, therefre will nt need t be installed lcally n any f the wrkstatins. Organizatinal Feasibility: If we build it, will they cme? (High)

20 Prject champin: Kim Allen, wner f ADD Life Senir Management: Kim Allen is ur sle cntact in senir management at ADD Life She is fully supprtive f the prpsed system, but she is currently unwilling t allw team access t financial infrmatin. Users: Emplyees, managers, and clients will be the primary users f the system. Implementatin f the new system will require little t n training due t the lw cmplexity f the prpsed system. The system will build a sense f cmmunity that ADD Life strives t attain and increase verall satisfactin amngst the clients. Other Stakehlders: Since ADD Life is a small, private cmpany, the stakehlders are limited t emplyees and clients. Ecnmic Feasibility: Shuld we build it? (Lw) (See Cst Benefit Analysis fr Develpment and Recurring Csts) Tangible Benefits: Increased sales: 10% client increase with a 1% lss Lst revenue recvery: Estimated 10% f clients are using gym withut valid membership Payrll reductin: 15 emplyees Estimated 52 hurs per year are fudged by emplyees 52 hurs a year at 7.25 = $377 Time spent calculating payrll 104 hurs a year ($336.54) Intangible Benefits: Imprves client satisfactin Clients will better understand the benefits f membership at ADD Life in cmparisn f ther fitness centers in the area. Imprves management satisfactin Ability t track membership trends by clients Intangible Csts: Dissatisfactin f clients

21 Clients will nw have t scan ID cards befre allwed access t gym. Dissatisfactin f wrkers A wrker will have t sit at the desk and scan membership ID cards. *A new wrker will nt need t be hired t scan membership cards. The emplyee currently wrking at ADD Life s frnt desk will assume this respnsibility, alng with their present duties (withut pay increase). Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Benefits Increase Sales* $0.00 $16, $16, $17, $18, $18, Regained Lss f Revenue** $0.00 $36, $36, $36, $36, $36, Reduced Payrll csts*** $0.00 -$ $ $ $ $ Ttal Benefits $0.00 $51, $52, $52, $53, $54, in tday's dllars $0.00 $48, $46, $44, $42, $40, Csts One-time csts Wrkstatins and Hardware $1, Develpment Labr $5, Ttal One-time csts $6, Recurring csts Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Sftware**** $1, $1, $1, $1, $1, Operatinal Labr $27, $27, $27, $27, $27, Ttal Recurring Csts $0.00 $28, $28, $28, $28, $28, Ttal Csts $6, $28, $28, $28, $28, $28, in tday's dllars $6, $26, $25, $23, $22, $21, Net -$6, $23, $23, $24, $25, $25, in tday's dllars -$6, $21, $21, $20, $19, $19, NPV $95, Assumed interest rate 0.06 *Increased Sales Assumes 5% increase in custmers per year with a 1% lss. 24 clients * $75 ne time registratin fee = $1, clients * $50 membership fee * 12 mnths = $14,400. $1,800 + $14,400 = $16,200. **Lss revenue recvery Estimated 10% * 600 clients = 60 clients. 60 clients * $50 membership fee * 12 mnths = $36,000. ***Payrll reductin 52 hurs * $7.25 = $ hurs bi weekly per year =104 hurs spent n calculating emplyee payrll. $35,000 salary / 104 hurs= $ ****Sftware Estimated fr mnthly subscriptin t EZ Facility Management System.