NATURA NOSCERE BERZA Australian National University Research School of Management ANU College of Business and Economics LF Crisp Building 26, Rm 1088 Canberra ACT 0200 Australia T: +61 2 612 59839 F: +61 2 612 59982 E: enquiries.rsm@anu.edu.au www.anu.edu.au http://rsm.anu.edu.au INFS2024 - Information Systems Analysis Tutorial 3 - THREE Tutorial Questions/Exercises 1. Consider the automated optometry system known as the 'EyeKinetix'. You can familiarise yourself with the system here: EyeKinetix Overview on Vimeo or the video on the 2nd page (to the right of request for information) here: EyeKinetix Objective Pupillometer | Konan Medical Complete the following benefits map, where the benefits and strategic objectives are supplied. Three or more project outputs and outcomes are required. There are benefits such as lower staff costs and reduced dispensing time. Think about the outcomes (changes to behaviours) that will be required to achieve these benefits. Don't forget to add arrows between the outcomes and benefits. Project deliverables or products Trained Staff An inert asset The behavioural change. A person will ... Larger orders Increased Revenue EveKinetix Lower Staff to revenue ratio Lower Costs Project Output Capability Outcome Benefit Corporate Objective 2 2. You are responsible for doing an NPV, ROI and Break-even analysis for a proposed EveKinetix information system project. The information system has a projected lifespan of 6 years. Assume estimated monetary benefits for the system of $400,000 in the first year (i.e., year 1, the year after the current year, which is year 0), with those benefits increasing by $100,000 a year for the next 5 years. These benefits are productivity gains. Non-Financial benefits (such as new technology attracting staff and customer satisfaction have not been included. One-time installation and Reduced dispensing time following CRICOS Provider No. 00120C Lower staff costs
configuration costs are $1,200,000 in the current year (year 0) and recurring costs (beginning in year 1) are estimated to be 10% of year 0 and increase by 4% per year over the duration of the system's scheduled life. The recurring costs include staff costs for two certified personnel. The discount rate the company concerned uses is 2.0 percent. This project is using new technology and involves an area of the business that currently has a manual system. As a result the project is regarded as high risk. Note that a spreadsheet is ideal for working out the answer to a question like this. You can find such a spreadsheet on the course website. You are not assessed on your ability to do maths, many of the calculations are done in formulas, so just fill in the shaded cells for discount rate, benefits and costs. Complete the spreadsheet to calculate the net present value, return on investment and present a break-even analysis for the proposed information system. Think carefully about how to present this information within the single file you submit (e.g. copy and paste the chart to show BEA but still include discussion to explain figures). 3. Think about what the results you obtained in answer to question