Conduct feasibility analysis, using payback analysis (identifying payback period) and/or Indicating ROI (Return on Investment).
Sherediff College is a Liberal arts college heated on the West Coast. You are the systems analys assiened from the collepe IT dopartment to eveduct the systims analysis phase of the development of a new listing sysiem fer the sheod's housing effice- Backiround Based on your eartier roommendatioest, the bossing efrice decided oo contimue the systems development poocesi for a new listieg syitem. Now, at the end of the systerm analysis phase, yow are ready to frepare a system requirements document and give a presentarion to the houking effice. Yeu must evamine tangible costs and benefits to determine the ecosomic feasibility of sereral alternatives. If the housing effice decides to po aheed with the developmest precess, the system cither can be developed in-hosac or a vertical package can be purchased and configured to meet the noveds of the whice. Housieg listings are created by an cerployee at the bousing office. While the demanss cet her time vary throuphout the year, based on previous work logs keps by employess in the oftice yoa determine that the time speat naintaining the manual syutem (creating listing sheets for the various binders, copying, and filing listings in binders) by this cuployee woeks out to an average of 25 hours of esertime per month. This employee is paid 522 per hour, incluading overbead. Housing lotings are pulled thecophout the month, and all liseings are revicwed once a month to delele those more than tuo manths old. Currently, the sece a moech reviews are done by a student worker who spends 20 hours a month poing through the 15 binders at the lousing office and pulling al old listings fee review by a bosieg office daaf menher. This student is paid 512 per bour, including erethead. A new syslem would conduct 1his seview automatically and gencrabe a liuf fer review. Yeur estimates inclicale that the housing oftiee can expect wo have staft ipend 4 bour a week performing maiesenance, file backups, and updating of the new system, at 322 per hour. The university has lost revenve en some of its reatal propertics, having them lic idle for a month because of listings polled either erronecualy by staft, or deliberately by people using the housing listing service. Estimates pat the ameent of los revenue due os listing problems sach as these at three percent of anticipald yearly reetal receipts. In the current year, the anticiputed rental receipts total $44000. Rents are increased for pertend a year across the boand Bawed on your scseeich, you oniginally cstimated that an in-house development project could be completed it about three wecks. This time cotimate is based on 35 hoen a week fer yoe and another analyst from the IT department. The IT department uses a chargeback rale of 335 per hoer for week for other univerity departmeets. As an alserative to in homse developenent, a vertical software package is avaelable for about \$9,000, including an on-sibe day of triining and wechnical support for the first year. If the department buys the peckage, it would take you aboat four weeks to install, confipore, and iest it, wokking full-time. The vendor provides free rupport during the firs year of eperation, boe then the housing office must sign a technical suippot aprecment at an atenal cost of 51,000 Training and sappon for an in-hoese sysiem would roquire 30 bours from a training specialist in the IT dopartment, billod at $30 per hoer, to develop trainite malcrials and provide training. The training materials weeld be added to documeetation created during in-house developmeet, and a training session for IT scoperd staff would be presided, at at additional $10 per bour charge. Training and technical supgect for the first year for the vertical sothware package is included in the initial price. For both the in-house development and the vertical soetmare package, the nocesary hardesare will cost about 83,000 . Network uperading, nccessary for cither eption, has been estimated at 55,000 by the nenaork openations group
