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Bundooraville is a small, private school in Victoria, Australia. For the past 10 years, it has offered a curriculum for preschool through grade 3. It also offers after-school care, usually referred to as after-care, on premises. Last year the school added a new classroom to allow the curriculum to expand to provide a grade 4-6 program. Bundooraville is experiencing significant increases in enrolment applications for all programs from pre-school through the Grade 4-6 program. Increases in applications coupled with the expanded program and increased demand for after-care have led to a very high workload for the administrative staff. Bundooraville is a nonprofit, and is not in a position to hire another full-time administrative position, which is what the principal and administrator think would be needed to handle the increased workload. You are an IT consultant, specialising in developing IT solutions for small business needs. You have been contacted by the parent of one of the students to speak to the school principal, administrator and teaching staff about the possibility of setting up an information system to handle some of the school’s administrative and financial tasks. While there is not money in the budget to add a full-time position, the school does have a very active board of directors and parent committees that are experienced and enthusiastic about fund-raising for projects that do not fit into the budget. It is the hope of the school that it might be feasible to use a combination of grants and fund-raising to cover the initial cost of purchasing and setting up and information system, and the ongoing cost of a part-time support position for the system. After an initial conversation between yourself and the school staff, you summarise the organisational and functional information (see Appendix 1).

 

Conduct cost-benefit analysis to determine if the information system development project described below should proceed.

Simon is considering building an information system for his business - Simon’s Pizza and Pasta Take-Away to manage its daily operation. The information system takes 12 months and $34K to develop and install. It also requires a network upgrade which costs $15K. Staff training can be conducted during the system’s development and the cost is $3K. After installation, the system can start its normal operation immediately. The cost to maintain its normal operation is $2K annually. The system can be used for 7 years, and it generates $9K of salary saving and $2K intangible benefit in the first year of its operation. The salary saving increases each year by 10%. The intangible benefit remains the same in the following years.

 

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