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FREP-Business-Case-Presentation.ppt - BC Government Home

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					Feb 2007




     FREP IMS Handheld Business Case
              Paul K. Hooper – MBA, PMP



                                          1
    do Practices
WhyBesta Business Case?


    Decision-making tool
    View the long-term, big picture, Total Costs/Savings
    Non-emotional assessment
    Focus on incremental cash flows
    More than cost savings
        Qualitative valuation and Alignment
    Account for rather than avoid risk
    Work to continuous improvement



                                                            2
Key Components


    Strategic Alignment
    Stakeholders
    Alternatives
    Cost/Benefit
        Qualitative – Net Present Value
    Quantitative
    Risk Assessment
    Decision Point




                                           3
Using the Business Case
Assumptions
to Make Decisions (continued)

    6 year term for project
    3 year refresh of handheld since they are on a steeper obsolescence curve then
     desktops
    Cameras integrated during second refresh cycle
    100 users (3 handhelds per district at 30 districts) every year for five year term
    NPV tool for financial quantification.
    Discount Rate for NPV = 4%
    1200 Checklists per year
    Employee burdened annual cost = $78,000 and hourly cost = $39/hr in Year 1
    250 work days per year at 8 hours per day or 2000 hours per year
    3% salary increase per year
    3% inflation rate per year
    Assume no efficiency difference from filling out paper checklist versus handheld
     form

    $2,000 per device purchase cost

 Used BEST CASE for HANDHELD and WORST CASE for Non-HANDHELD
                                                                                          4
Findings
Findings




    50% difference ($500K) is a significant gap




                                                   5
Findings (cont)
Findings
    Minor Handheld Savings:
        Data Quality effort, Paper Management Costs and Single Data Entry
    Major Handheld Costs:
        Over $1m in hardware, software, support and management costs
    No Major Savings that are found in some Handheld Projects
        Not an audit-driven need (timeliness is critical)
        No fines, penalties or extra revenue with a handheld
        No safety, security or health issue
        No significant benefits from business process improvements, productivity
         savings, better information flow, decreased information publishing costs
         (minor), reduced staffing costs (overtime) or turnover.
        No significant qualitative benefits like: higher citizen or licensee
         satisfaction, improved staff efficiency, improved or timelier decision
         making, increased staff morale, regulatory or legislative compliance or
         significant cost avoidance

                                                                                    6
Questions


            7

				
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