SEG 3430 Tutorial 2

SDLC Job Role and

Economic Analysis

Role : Business Analyst

Job DutiesRe-engineer the Business ProcessStudy and implement ERP SystemAnalyze the Workflow and streamline the Gr

oup's Operation

Role : Business Analyst

RequirementsTertiary Education in Industrial Engineering,

Manufacturing Engineering, Statistics, Operational Research, Logistics or equivalent

Sound experience in the combination of Quality Management Knowledge (familiar with QC tools); ISO Implementation; ERP Implementation

Source : Jan 08 2005, www.jobDB.com

Role : Systems Analyst

Job Duties Conduct technical study to provide project estimate and propo

sals Capture IT requirements and translate into solutions Plan, design, develop and implement IT related systems fi

tting the business needs of corporate development; e.g. Human Resources related system, Customer Relationship Management System, Management Information System, Cargo Operations System, as well as Logistics System

Perform technology search and research Manage vendors to deliver solutions Perform application architectural and detailed design Assist in infrastructure planning and implementation

Role : Systems Analyst

Requirement Degree in IT, Computer Engineering, Computer Science or rel

ated discipline Minimum 5 years' experience in systems development, with n

ot less than 3 years' systems analyst role Good business sense and application experiences Experience and Knowledge in any of the following areas will b

e an advantage: Human Resources Systems, Customer Relationship Managemen

t Systems, MIS Material flow control system Optimization and computing algorithm, or other operational resea

rch methodology Familiar with project management methodology

Source : Dec 30 2004, www.jobsDB.com

Role : Project Manager

Job Duties responsible for managing, monitoring, coordinating

and controlling all project events planning and monitoring project resources monitoring project progress and product quality and

project reporting In a pre-sale situation, you will be assisting the sale

s team to prepare project proposal, perform presentation and demonstration.

managing a call center, handling customer complaints and coordinating event's ticketing with event organizers.

Role : Project Manager

Requirement University degree holder in Computer Science / Software Engi

neering or equivalent. 10 years' post-qualification IT experience with at least 3 of tho

se in a project management role. Experience in ticketing business and customer service is desir

able. Competence in several technical areas such as: Internet, e-co

mmerce, security, n-tier application, Unix and Windows. Ability to communicate effectively with both technica

l and non-technical customers and co-workers Source : Jan 08 2005 , www.jobsDB.com

Job comparison

Common requirements University Degree in Computer Science or related d

isciplines Good command of both English and Chinese Ability to speak Mandarin Good interpersonal skills for communicating with us

ers Hardworking, able to work independently and under

pressure Strong problem/analytical skills

Working Experience

Business Analyst Minimum 2 years' relevant wor

king experience, preferably in related field, e.g. banking industry

System Analyst Min. 5 years' working experien

ce in system development and support field

Project Manager 10 years' post-qualification IT

experience with at least 3 of those in a project management role

Project Manager

System Analyst

Business Analyst

Job comparison

Duties Business Analyst

Systems Analyst

Project Manager

Business Process Reengineering Yes Yes Yes

Collect and confirm detailed requirements with clients

Yes Yes

Develop specifications, and possi

bly programs Yes Yes

Prepare system documentation Yes Yes

Perform system integration test and load test

Yes Yes

Job comparison

Duties Business Analyst

Systems Analyst

Project Manager

Understand the functions of the system and set Functional specification

Yes Yes

Setting data models and process models

Yes Yes

Deliver the assigned work from Project Manager in good quality and on time

Yes

Presentation and demonstration Yes

Economic Analysis

1) Identify costs and benefits Development costs, e.g. equipment Operational costs , e.g. software upgrade Tangible benefits , e.g. sales Intangibles , e.g. brand , supplier relations

2) Assign Values to Costs and Benefits Do the best you can to come up with reasonable

cost Work with business users and IT professionals to

create numbers for each of the costs and benefits

Economic Analysis

3) Determine Cash Flow Over a period of time, usually 3-5 years Apply the growth rate to the number, if

necessary

PV = Cash flow amount (1 + interest rate)n , where

interest rate = required return n = number of years in future

Economic Analysis

DevelopmentCost

OperationalCost

Given rate of changes for money is 3%

Economic Analysis

4) Determine Net Present Value (NPV) Compare the present value of future cash

flows with the investment outlay Select a rate of growth to apply the NPV

formula (i.e. 3%)

Economic Analysis

5) Determine Return on Investment The amount of money an organization

receives in return for the money it spends Only consider the end points of

investment, not the cash flow in between

ROI = (Total benefits – Total Costs)/ Total Costs = (5,041,515 – 1,531,638) / 1,531,638 = 229.16 %

Economic Analysis

6) Calculate Break-Even Point

7) Graph Break-Even Point1) Understand how long it will take before the

system creates real value

2) Plot the yearly costs and benefits on a line graph

1415119/ 2094731 = 0.68 yearsBreak-even Point: 1+0.68 = 1.68 years

Example

Economics Analysis for VMiner Inc. Start-up Business PlanAn intelligent financial advisory companyProvide investment advice service for retail

investors in Great China

Mainly used for technology research and service development

Require RMB 4.1 Million Investment Require RMB 4.1 Million Investment

BreakevenBreakeven

Breakeven in 17 Breakeven in 17 MonthsMonths

Low Cost, High ReturnLow Cost, High Return

Financial Financial ProjectionProjection

YearYear

Sales RevSales Revenue enue (B(B BB C)C)

Sales RSales Revenue evenue ((B B CC ))

Total Total Sales Sales RevenuRevenuee

Net Net Profit Profit after after TaxTax

Profit Profit MarginMargin

1 684 0 684 -3227

-4731

%2 13274 421 13695 4646 34%3 34534 2304 36838 18367 50%

RMB’000

Exit StrategyExit Strategy

April 30, 2007, ClearForest (with gross asset $3.8M) April 30, 2007, ClearForest (with gross asset $3.8M) acquired by Reuters for $25M acquired by Reuters for $25M

April 30, 2007, ClearForest (with gross asset $3.8M) April 30, 2007, ClearForest (with gross asset $3.8M) acquired by Reuters for $25M acquired by Reuters for $25M

Become an Acquisition TargetBecome an Acquisition TargetBecome an Acquisition TargetBecome an Acquisition Target