Using the IS alignment work and the financial analysis from Week 6, submit a complete IS strategic plan. Your paper should include at least 5 references from peer-reviewed journals associated with how other companies are using the technologies you are recommending. The strategy should include the technologies you plan to implement, your plan for sourcing the IS work, and the governance model you plan to use to sustain the IS operation over the long term. You should include specific projects with a timeline for implementation in your strategy. Make sure you also include the financial analysis. Your IT strategy should also specify some key performance indicators (KPIs) to measure the effectiveness of IT. The website below can help you identify the KPIs for your strategy.
Your total paper should be 5-7 pages of text in APA format, not counting the title and reference pages, and not counting any tables or figures. Make sure you include in-text citations. Please use the template attached above. In developing your IT strategy, please refer to the resources from previous weeks. You can reference these resources in your paper, but you must also reference at least 5 peer-reviewed articles. Make sure on your references page you include a reference with the URL to the case study you chose, in addition to at least 5 references from peer-reviewed journals.
BUDGET TOOL
| Jimmy Beans Wool | ||||
| Technology Budgeting Tool | ||||
| 8/8/23 | ||||
| Company Data | ||||
| Required rate of return | 10% | |||
| Tax rate | 25% | |||
| Initial Investment | YEAR | 1 | 2 | 3 |
| Hardware costs (e.g., servers, networking hardware, PC upgrades) | $5,000 | |||
| Purchased software costs / licenses (e.g., e-commerce, ERP, CRM software) | $1,500 | |||
| Development costs (e.g., systems design and configuration / development) | $2,000 | |||
| Training costs (e.g., develop and conduct initial training) | $3,000 | |||
| Conversion costs (e.g., initial data conversion from existing systems being replaced) | $500 | |||
| Marketing | $2,000 | |||
| [Other initial investments] | $1,000 | |||
| Total Initial Investments | $15,000 | |||
| Benefits from Technology Strategy | YEAR | 1 | 2 | 3 |
| Increased sales and revenue | $13,000 | $20,000 | $30,000 | |
| Reduced personnel costs | $3,900 | $2,000 | $1,000 | |
| Reduced product costs | $1,600 | $1,000 | $800 | |
| Reduced distribution costs | $2,000 | $1,000 | $800 | |
| Reduced advertising and marketing costs | $1,800 | $2,200 | $3,000 | |
| Total Benefits | $22,300 | $26,200 | $35,600 | |
| Costs (Excluding Initial Capital Investments) | YEAR | 1 | 2 | 3 |
| Depreciation on capital expenditures (calculation uses three-year period) | $4,000 | $5,000 | $5,000 | |
| Software licensing fees | $0 | $500 | $500 | |
| Ongoing user support and training (e.g., help desk and training personnel) | $0 | $1,500 | $2,000 | |
| Ongoing systems support (e.g., IT maintenance) | $0 | $3,000 | $3,000 | |
| Hosting / Cloud computing | $2,000 | $2,000 | $2,500 | |
| General and administrative | $1,000 | $1,500 | $2,000 | |
| [Other costs] | $1,000 | $1,500 | $2,000 | |
| Total Costs | $8,000 | $15,000 | $17,000 | |
| Totals | YEAR | 1 | 2 | 3 |
| Net Benefits (Costs) | $11,633 | $11,200 | $18,600 | |
| Tax | $2,908 | $2,800 | $4,650 | |
| Value after tax | $7,143 | $8,400 | $13,950 | |
| Depreciation added back | $4,000 | $5,000 | $5,000 | |
| Cash flow | ($15,000) | $11,143 | $13,400 | $18,950 |
| Cumulative cash flow | ($15,000) | ($3,857) | $9,543 | $28,493 |
| Evaluation Metrics | ||||
| Net present value (NPV) | $20,442 | |||
| Internal rate of return (IRR) | 70.30% | |||
| Payback period (in years) | 1.29 | |||
| Three-year total ROI: (total benefits before taxes – total costs)/total costs | 110.25% |
