CASE:

Just got to do the tasks in bold, book used is Information Techonolgy Project Management 9th Edition by Kathy Schalbe

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of healthcare products and services. Below are some ideas the IT department has developed for supporting these strategic goals:

• 1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the industry average for employee healthcare premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least $30/employee/year for full-time employees over the next four years. This application would include the following capabilities:
• Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, and walking.
• Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health-related issues.
• Track data on employee involvement in these recreational and health-management programs.
• Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).

Managers at Manage Your Health, Inc. (MYH) selected Tony Prince as the project manager for the Recreation and Wellness Intranet Project. The schedule goal is six months, and the budget is $200,000. Tony has previous project management and systems analysis experience within the company, and he is an avid sports enthusiast. Tony was starting to put the project team together. He knew he would have to develop a survey to solicit input from all employees about the new system and make sure it was user-friendly.

Recall that this system would include the following capabilities:

• Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, and walking.
• Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health-related issues.
• Track data on employee involvement in these recreational and health-management programs.
• Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).

Assume that MYH would not need to purchase any additional hardware or software for the project.

Tasks

1. Document your approach for collecting requirements for the project. Include at least five requirements in a requirements traceability matrix.
2. Develop a first version of a project scope statement for the project. Use the template provided on the companion Web site for this text and the example in Chapter 3 as guides. Be as specific as possible in describing product characteristics and requirements, as well as all of the projects deliverables. Be sure to include testing and training as part of the project scope.
3. Develop a work breakdown structure for the project. Break down the work to Level 3 or Level 4, as appropriate. Use the template on the companion Web site and samples in this text as guides. Print the WBS in list form. Be sure the WBS is based on the project charter earlier, the project scope statement created in Task 2, and other relevant information. If needed below are 1) summary, 2) Weighted scoring model and 3) business case for reference
4. 

(1) Project Name Business Strategy Financial Benefits Other Benefits Initial Assessment Recreation and Wellness Intranet Reducing cost $2.4M over 4 years Improve health and productivity High potential, upfront costs and need to persuade people to join the team or program. Lower premiums (20,000 x $30 x 4 years) Less costs Health Coverage Business Model Reducing cost High potential $1.6M over 4 years Negotiate lower premiums Less cost Cost $100,000 upfront $3M over 3 years Increased sales Medium Cross-Selling System Increase cross selling Less cost Better customer service Cost $800,000 per year Exploit the Web $6M over 3 years Low Web-Enhanced Communication System Improve communication Cost $3M to develop and $600,000 per year to maintain (2) Weighted Scoring Model Company: Manage Your Health Created by: Rijesh Baichoo Date: 25/04/2017 Inc Criteria Weight (%) Project 1 Project 2 Project 3 Project 4 Tie to business strategy 10 90 90 90 90 Upfront Cost 25 70 80 20 10 Potential net saving 25 90 70 50 20 Realistic Technology 15 90 70 60 50 In-House Expertise 10 90 80 60 50 Potential resistance 15 50 90 90 50 Total Weighted Scores 100 79 78.5 55 36.5 Total Weighted Scores Total Weighted Scores 100 90 80 70 60 50 40 11 30 20 10 0 Project 1 Project 2 Project 3 Project 4 (3) 1.0 Introduction/Background Manage your Health Inc (MYH) business goal is to provide a variety of health care services. The CEO believes it can enhance development and delivery of its products and services by updating its strategic plan, reducing internal costs, increasing cross-selling of products and exploiting new web-based technologies for the customers and suppliers. 2.0 Business Objective MYH information technology department strategic goals include continuing growth and profitability. The Recreation and Wellness Intranet project will support these goals by increasing visibility of the current employees. It will also enhance the profitability by reducing internal costs by improving employees health within one year of its rollout. Since MYH information technology department focuses on identifying profitable projects and measuring their value after completion, this project must meet those criteria. 3.0 Current situation and Problem/Opportunity Statement A recent study found that MYH Inc pays 20% more than the industry average for employees health care premiums, primarily due to the poor health of its employees. There is an opportunity to provide a new section on the intranet dedicated to sharing health care information across the organization to help improve employee health within one year. 4.0 Critical Assumption and Constraints The proposed intranet site must support the company's business goals and strategy. Current employees must actively support this project. Besides that, it needs to pay itself within 4 years to reduce the internal costs and exploiting new web-based technologies. The project manager must lead the effort, and project team must include participants from various parts of the company. 5.0 Analysis of Option and Recommendation There are 3 options for addressing this project: 1. Continue to operate without introduce the new project 2. Purchase access to specialized software to support the capability with little in-house development 3. Design and implement the new intranet capability using existing hardware and software Recommendation: based on the discussion with stakeholders, we agree that the option 3 is the best option 6.0 Preliminary Project Requirement The main features of the Recreation and Wellness Intranet Project are as follows: 1. Accept to intranet for registering recreational programs. Employees are allowed to accept the intranet and register for company-sponsored recreational programs such as soccer, softball, bowling and other. 2. Accept the registering health-related issues classes and programs. They also can register for company-sponsored classes and programs to help them to manage their weight, reduce stress and other health-related issues. 3. Track data on employees involvement in these recreational and health-management program. 4. Offer incentives for people to join the program and do well in them. For example, incentives for achieving weight goals, winning sports team competitions and so on. 5. Other featured suggested by employees, if they add value to the business. 7.0 Budget Estimate and Financial Analysis A preliminary estimate of the cost for the entire project is $200,000. This estimate is based on the project manager working about 20 hours per week for six month and other internal staff working a total of about 60 hours per week for six months. Project benefits are based on a negotiating lower premiums that saving about $30/employee/year for full time employees over the next four years. Exhibit a summarizes the projected costs and benefits and shows the estimated net present value (NPV), return on investment (ROI), and a year in which payback occurs. It also lists assumptions made in performing this preliminary financial analysis. All of the financial estimated are very encouraging. This estimated payback is within four years, as requested by the sponsor. The NPV is $1,621,670 and the discounted ROI based on a four-year system life is excellent at 444%. 8.0 Schedule Estimate The sponsor would like to see the project completed within the six months but there are still more flexibility in the schedules. We also assume that the new system will have a useful life of four years 9.0 Potential Risks There are several risks involved with this project. The foremost risk is lack of interest in the new system by employees. There are technical risks in choosing the type of software to track, analyze, delivery, searching, the use of electronic commerce capabilities and so on. The main business risks is investing the time and money into the project and not realizing the projected benefits. Financial Analysis for Recreation and Wellness Intranet Project Created By: Rijesh Baichoo Date: 25/04/2017 Discount rate Year Assume the project is completed in year 1 2 3 4 Total Cost 200,000 50,000 50,000 50,000 50,000 Discount Factor 1.00 0.93 0.86 0.79 0.74 Discounted Costs 200.000 46.296 42.867 39,692 36,751 365,606 Benefits 600,000 600,000 600,000 600,000 Discount Factor 1.00 0.93 0.86 0.79 0.74 Discounted Benefits 555.556 514,403 476,299 441,018 1.987,276 NPV (200.000) 509,259 471,536 Discounted benefits- costs 436,608 404.266 1,621,670 (200.000) Cumulative benefits- costs 309,259 780,796 1,217,403 1,621,670 RO 44496 Payback before end of year 1 Assumptions Costs Hours 25,000 PM (500 hours $50/h) 105,000 Staff (1500 hours $70/h) 35% of dev cost/year 70,000 200,000 Total project cost [year 0) (1) Project Name Business Strategy Financial Benefits Other Benefits Initial Assessment Recreation and Wellness Intranet Reducing cost $2.4M over 4 years Improve health and productivity High potential, upfront costs and need to persuade people to join the team or program. Lower premiums (20,000 x $30 x 4 years) Less costs Health Coverage Business Model Reducing cost High potential $1.6M over 4 years Negotiate lower premiums Less cost Cost $100,000 upfront $3M over 3 years Increased sales Medium Cross-Selling System Increase cross selling Less cost Better customer service Cost $800,000 per year Exploit the Web $6M over 3 years Low Web-Enhanced Communication System Improve communication Cost $3M to develop and $600,000 per year to maintain (2) Weighted Scoring Model Company: Manage Your Health Created by: Rijesh Baichoo Date: 25/04/2017 Inc Criteria Weight (%) Project 1 Project 2 Project 3 Project 4 Tie to business strategy 10 90 90 90 90 Upfront Cost 25 70 80 20 10 Potential net saving 25 90 70 50 20 Realistic Technology 15 90 70 60 50 In-House Expertise 10 90 80 60 50 Potential resistance 15 50 90 90 50 Total Weighted Scores 100 79 78.5 55 36.5 Total Weighted Scores Total Weighted Scores 100 90 80 70 60 50 40 11 30 20 10 0 Project 1 Project 2 Project 3 Project 4 (3) 1.0 Introduction/Background Manage your Health Inc (MYH) business goal is to provide a variety of health care services. The CEO believes it can enhance development and delivery of its products and services by updating its strategic plan, reducing internal costs, increasing cross-selling of products and exploiting new web-based technologies for the customers and suppliers. 2.0 Business Objective MYH information technology department strategic goals include continuing growth and profitability. The Recreation and Wellness Intranet project will support these goals by increasing visibility of the current employees. It will also enhance the profitability by reducing internal costs by improving employees health within one year of its rollout. Since MYH information technology department focuses on identifying profitable projects and measuring their value after completion, this project must meet those criteria. 3.0 Current situation and Problem/Opportunity Statement A recent study found that MYH Inc pays 20% more than the industry average for employees health care premiums, primarily due to the poor health of its employees. There is an opportunity to provide a new section on the intranet dedicated to sharing health care information across the organization to help improve employee health within one year. 4.0 Critical Assumption and Constraints The proposed intranet site must support the company's business goals and strategy. Current employees must actively support this project. Besides that, it needs to pay itself within 4 years to reduce the internal costs and exploiting new web-based technologies. The project manager must lead the effort, and project team must include participants from various parts of the company. 5.0 Analysis of Option and Recommendation There are 3 options for addressing this project: 1. Continue to operate without introduce the new project 2. Purchase access to specialized software to support the capability with little in-house development 3. Design and implement the new intranet capability using existing hardware and software Recommendation: based on the discussion with stakeholders, we agree that the option 3 is the best option 6.0 Preliminary Project Requirement The main features of the Recreation and Wellness Intranet Project are as follows: 1. Accept to intranet for registering recreational programs. Employees are allowed to accept the intranet and register for company-sponsored recreational programs such as soccer, softball, bowling and other. 2. Accept the registering health-related issues classes and programs. They also can register for company-sponsored classes and programs to help them to manage their weight, reduce stress and other health-related issues. 3. Track data on employees involvement in these recreational and health-management program. 4. Offer incentives for people to join the program and do well in them. For example, incentives for achieving weight goals, winning sports team competitions and so on. 5. Other featured suggested by employees, if they add value to the business. 7.0 Budget Estimate and Financial Analysis A preliminary estimate of the cost for the entire project is $200,000. This estimate is based on the project manager working about 20 hours per week for six month and other internal staff working a total of about 60 hours per week for six months. Project benefits are based on a negotiating lower premiums that saving about $30/employee/year for full time employees over the next four years. Exhibit a summarizes the projected costs and benefits and shows the estimated net present value (NPV), return on investment (ROI), and a year in which payback occurs. It also lists assumptions made in performing this preliminary financial analysis. All of the financial estimated are very encouraging. This estimated payback is within four years, as requested by the sponsor. The NPV is $1,621,670 and the discounted ROI based on a four-year system life is excellent at 444%. 8.0 Schedule Estimate The sponsor would like to see the project completed within the six months but there are still more flexibility in the schedules. We also assume that the new system will have a useful life of four years 9.0 Potential Risks There are several risks involved with this project. The foremost risk is lack of interest in the new system by employees. There are technical risks in choosing the type of software to track, analyze, delivery, searching, the use of electronic commerce capabilities and so on. The main business risks is investing the time and money into the project and not realizing the projected benefits. Financial Analysis for Recreation and Wellness Intranet Project Created By: Rijesh Baichoo Date: 25/04/2017 Discount rate Year Assume the project is completed in year 1 2 3 4 Total Cost 200,000 50,000 50,000 50,000 50,000 Discount Factor 1.00 0.93 0.86 0.79 0.74 Discounted Costs 200.000 46.296 42.867 39,692 36,751 365,606 Benefits 600,000 600,000 600,000 600,000 Discount Factor 1.00 0.93 0.86 0.79 0.74 Discounted Benefits 555.556 514,403 476,299 441,018 1.987,276 NPV (200.000) 509,259 471,536 Discounted benefits- costs 436,608 404.266 1,621,670 (200.000) Cumulative benefits- costs 309,259 780,796 1,217,403 1,621,670 RO 44496 Payback before end of year 1 Assumptions Costs Hours 25,000 PM (500 hours $50/h) 105,000 Staff (1500 hours $70/h) 35% of dev cost/year 70,000 200,000 Total project cost [year 0)