COSTS
PROJECT STARTUP Estimated Software Costs Database $130,000.00 $0.00 Document Management $250,000.00 $0.00 Business Process Automation $500,000.00 $0.00 Customer Relationship Management $300,000.00 $0.00 HR Database $300,000.00 $0.00 Business Intel and Data Management $200,000.00 $0.00 TOTAL $1,680,000.00 $0.00 Ongoing License Fee costs (Per year @17%) Database $22,100.00 $22,100.00 Document Management $42,500.00 $42,500.00 Business Process Automation $85,000.00 $85,000.00 Customer Relationship Management $51,000.00 $51,000.00 HR Database $51,000.00 $51,000.00 Business Intel and Data Management $34,000.00 $34,000.00 TOTAL $285,600.00 $285,600.00 Estimated Consulting Costs Database $20,000.00 $10,000.00 Document Management $65,000.00 $20,000.00 Business Process Automation $220,000.00 $50,000.00 Customer Relationship Management $30,000.00 $10,000.00 HR Database $100,000.00 $10,000.00 Business Intel and Data Management $80,000.00 $20,000.00 TOTAL $515,000.00 $120,000.00 Estimated Expensed Costs (3 Years) Estimated Savings Annualised Benefits DIRECT BENEFITS (Resource) UNITS (PM) TOTAL YEAR 1 (Illustrative per 1 X resource) Reduced IT Support Costs 40 480 $90,000.00 Increased Staff productivity(50%) 80 960 $180,000.00 Reduced Business downtime 40 480 $90,000.00 Reduced product rework (Sales & Tech) 60 720 $135,000.00 Reduced administrative overhead (HR & 30 Fin) 360 $67,500.00 Training costs 20 240 $45,000.00 Reduced customer care costs 15 180 $33,750.00 Reduced logisitics costs 70 840 $157,500.00 TOTAL SAVINGS $798,750.00 DIRECT BENEFITS (Operational) Estimated Savings (Illustrative) Units Description Hiring avoidance / Recruitment Costs 5 (resource units) $360,000.00 Increased customer retention 2 (contract units) $180,000.00 Reduction in Paper costs 15000 (per page) $11,700.00 Reduction in associated paper costs 12 (per machine) $40,000.00 Improved inventory management 15 (per item) $30,000.00
Annual Cost of Ownership YEAR 1
TOTAL SAVINGS Estimated Total Savings NPPV (payback) Annual Return on Investment
$621,700.00
Annual Cost of Ownership YEAR 2 YEAR 3 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
TOTALS
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ########
$22,100.00 $22,100.00 $42,500.00 $42,500.00 $85,000.00 $85,000.00 $51,000.00 $51,000.00 $51,000.00 $51,000.00 $34,000.00 $34,000.00 $285,600.00 $285,600.00 ######## $10,000.00 $10,000.00 $20,000.00 $20,000.00 $50,000.00 $50,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $20,000.00 $20,000.00 $120,000.00 $120,000.00 Annualised Benefits YEAR 2 YEAR 3
$875,000.00 ######## NET Savings
$90,000.00 $90,000.00 $270,000.00 $180,000.00 $180,000.00 $540,000.00 $90,000.00 $90,000.00 $270,000.00 $135,000.00 $135,000.00 $405,000.00 $67,500.00 $67,500.00 $202,500.00 $45,000.00 $45,000.00 $135,000.00 $33,750.00 $33,750.00 $101,250.00 $157,500.00 $157,500.00 $472,500.00 $798,750.00 $798,750.00 ########
$360,000.00 $180,000.00 $11,700.00 $40,000.00 $30,000.00
$360,000.00 ######## $180,000.00 $540,000.00 $11,700.00 $35,100.00 $40,000.00 $120,000.00 $30,000.00 $90,000.00
$621,700.00 $621,700.00 ######## ######## $563,950.00 28.60%
Resource Values Average cost PM Recruitment Costs Cost per hire Paper Costs
Rands $30,000.00 Rands
Work Units 160 Unit $187.50
####### $72,000.00 Rands $0.78 Rands $40,000.00 Unit
Associated Paper Costs Per machine
Unit $3,333.33
Based on Administrative and Managerial Staff Costs