The contender: option 2, integrated CRM and e-commerce

The primary difference between the implementation approaches of the two solution options is that, while the WebSiteShopify option would be outsourced to Website Services, we would undertake to do option 2, the entire CRM-e-commerce project, in-house. Further, in terms of solution scope, instead of hosting our own server for the WebSiteShopify option, the CRM-e- commerce option would be hosted by the service provider.

The points below summarise much of the relevant discovery conversations you've had about

the CRM-e-commerce option:

22. Having researched two shortlisted platforms that offer the high-level functionality for both CRM and e-commerce, management agreed that the hosted solution we should use is "Sell It Online". We colloquially use the short name of "Sell It" when referring to the system itself, while we use the full name of "Sell It Online" when referring to the service provider.

23. The implementation would involve migrating the existing website and catalogue onto Sell

It. Go-live will use a big bang method where the old system would "disappear" moments before the new system is switched on.

24. The Sell It system will allow us to use the same root URL as our current URL, so we would have no problems with links in our old newsletters or other backlinks to our website's home page. However, we will lose linksto sub-pages. While we can re-create existing sub- pages on the new system, we won't have control over their URLs, which are generated automatically by Sell It. Thismeanswe might lose traffic and sales. In aworkshop, Vuyelwa and Mariusestimate that, because many of our salesare generated by click-throughsfrom

our monthly newsletters, this might initially cost about R50,000 in lost sales per month. The problem will eventually "die out" according to Marius and, to prove Marius' point, Vuyelwa calculated that it takes about five months for anewsletter to become "inactive". You agreed that you would account for thislossin the CBA asa cost that diminishesevenly

over the first five months. This means that the lost revenue would be 100%of R50,000 in month one, 80%in month two (R40,000, etc.) until R10,000 in month five and R0 lost sales in month six.

25. Costs for hosting the full system with Sell It Online equate to about $250 per month. This includesthe CRM and e-commerce plug-in moduleson top of the base platform. Thisbuys us their gold level package and gives usall basic functionality of the core platform and the two plug-ins, but limits us to 10,000 users (i.e. customer accounts) in the CRM module. The platinum licence, with e-commerce and CRM plug-ins and an unlimited number of

1.2 Economic feasibility: cost-benefit analysis

Instructions for completing the CBA table:

1. Complete the elements of a cost-benefit analysis for option 2 of Kabeljou's CRM-e-commerce website in the tables below.
2. Type the answer data in only the unshaded cells. Do not add or delete rows or change the formatting. Correct answers will show some blank cells.
3. Use a single row for each cost or benefit. Do not use multiple rows per cost / benefit or use one row for more than one cost / benefit.
4. For each cost or benefit item in column 1, reference the scenario's numbering to ensure your answers are traceable to the scenario.
5. Round all values to their nearest R1,000, e.g. enter "10,000" for R9,750.00. Use a comma as a thousands separator. Don't show currency signs.
6. The first benefit has been entered for you as an example. Use this benefit in your calculations. The value of this benefit was calculated as follows: 135 daily recons x 365 days per year x 2 mins per recon, at a cost of R9,000 salary PM 22 days PM 8 hours PD 60 mins PH. You need not explain the calculation or formula; merely state the cost item or benefit in column 1 and show its value in the corresponding year column(s).
7. Tip: follow the method and formatting used for the CBA for the WebSiteShopify solution [option 1] in the scenario document.
8. If you use a spreadsheet tool to draft your answers and calculate totals, do not overwrite the formatting here when pasting your answers.

Estimated costs for option 2 (Sell It Online)	Year 0	Year 1	Year 2	Year 3	Year 4
Total costs (per annum) (not cumulative)
Estimated benefits for option 2 (Sell It Online)	Year 0	Year 1	Year 2	Year 3	Year 4
#9 Reconciliation saving		84,000	84,000	84,000
Total benefits (per annum) (not cumulative)

Net benefit (per annum) (benefit PA less cost PA)

Net benefit (cumulative)

Return on investment (ROI) (round to whole number, state as %)

1.3 Feasibility analysis matrix

Instructions for completing the feasibility analysis matrix:

1. Identify the feasibility criteria for rating each solution option. Reminder: solution option 1 is WebSiteShopify and option 2 is Sell It Online.
2. Assign a weighting to each criterion so that the aggregate weighting of all criteria adds to 100.
3. For each criterion, rate each option using the weighting as the scale, where 0 is minimum and the weighting is the maximum. E.g. if criterion 1 has a weighting of 35 and option 1 is very weak, we might score it a 5 out of 35, while if option 2 is nearly "perfect", we might score 30 out of 35.
4. Aggregate the scores for each option to derive that option's total score, which should be a value between 0 and 100. The option with the higher total would be the better option overall and the ratio between the options' scores would indicate the degree to which the better option is better than the other option.
5. Remember, do not adjust the table's formatting.

Feasibility criterion: (Max. 2 lines each)	Weight	Solution option 1 (Max. 2 lines each)	Solution option 2 (Max. 2 lines each)
Total