SEG 3430 Tutorial 2

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SEG 3430 Tutorial 2

• SDLC Job Role and
• Economic Analysis

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Role Business Analyst

• Job Duties
• Re-engineer the Business Process
• Study and implement ERP System
• Analyze the Workflow and streamline the Group's
  Operation

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Role Business Analyst

• Requirements
• Tertiary 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

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Role Systems Analyst

• Job Duties
• Conduct technical study to provide project
  estimate and proposals
• Capture IT requirements and translate into
  solutions
• Plan, design, develop and implement IT related
  systems fitting 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

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Role Systems Analyst

• Requirement
• Degree in IT, Computer Engineering, Computer
  Science or related discipline
• Minimum 5 years' experience in systems
  development, with not less than 3 years' systems
  analyst role
• Good business sense and application experiences
• Experience and Knowledge in any of the following
  areas will be an advantage
• Human Resources Systems, Customer Relationship
  Management Systems, MIS
• Material flow control system
• Optimization and computing algorithm, or other
  operational research methodology
• Familiar with project management methodology
• Source Dec 30 2004, www.jobsDB.com

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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 sales team to prepare project proposal,
  perform presentation and demonstration.
• managing a call center, handling customer
  complaints and coordinating event's ticketing
  with event organizers.

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Role Project Manager

• Requirement
• University degree holder in Computer Science /
  Software Engineering or equivalent.
• 10 years' post-qualification IT experience with
  at least 3 of those in a project management role.
• Experience in ticketing business and customer
  service is desirable.
• Competence in several technical areas such as
  Internet, e-commerce, security, n-tier
  application, Unix and Windows.
• Ability to communicate effectively with both
  technical and non-technical customers
  and co-workers
• Source Jan 08 2005 , www.jobsDB.com

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Job comparison

• Common requirements
• University Degree in Computer Science or related
  disciplines
• Good command of both English and Chinese
• Ability to speak Mandarin
• Good interpersonal skills for communicating with
  users
• Hardworking, able to work independently and under
  pressure
• Strong problem/analytical skills

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Working Experience

• Business Analyst
• Minimum 2 years' relevant working experience,
  preferably in related field, e.g.
  banking industry
• System Analyst
• Min. 5 years' working experience 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

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Job comparison
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Job comparison
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Economic Analysis

• 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
• 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

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Economic Analysis

• 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
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Economic Analysis

Development Cost

Operational Cost

• Given rate of changes for money is 3

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Economic Analysis

• 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)

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Economic Analysis

• 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
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Economic Analysis

• Calculate Break-Even Point
• Graph Break-Even Point
• Understand how long it will take before the
  system creates real value
• Plot the yearly costs and benefits on a line
  graph

1415119/ 2094731 0.68 years Break-even Point
10.68 1.68 years
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Example

• Economics Analysis for VMiner Inc. Start-up
  Business Plan
• An intelligent financial advisory company
• Provide investment advice service for retail
  investors in Great China

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Require RMB 4.1 Million Investment
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Breakeven
Breakeven in 17 Months
Low Cost, High Return
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Financial Projection
RMB000
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Exit Strategy
Become an Acquisition Target
April 30, 2007, ClearForest (with gross asset
3.8M) acquired by Reuters for 25M