Business Case for Online Bookshop Website
Date: 06/01/2012
Prepared by: Le Manh Tuong
1.0 Introduction/
Background
Tien Phong Companry’s core business goal is
to provide a clean and highly-interact online bookshop service to consumers
throughout the country and all over the world in the future. The CEO, Pham
Gia Bao, believes that they can gain much more profits from this online
service, beside the normal offline transaction at their branch book shops.
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2.0
Business Objective
To grow the business and achieve sales of $2000 in the market in 2012.
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3.0 Current
Situation and Problem/Opportunity Statement
Tien Phong Book Company has witnessed the problem of
decreasing demands from customers visiting the shop. This might somehow be
the consequence of ineffective-marketing.
From the foundation day till now, Tien Phong Book
has not develop any website to support marketing the service and publicize
book list for online user to order online. Book-lovers now tends to surf the
web for price before make any decision where to buy books.
Along with the growth of technology and
globalization as well as e-commerce, many corporations have found their ways
in making use of the Internet to gain profit for them. The approach of using
website to show goods and review online, for customer to purchase goods
online is now becoming more and more popular in the society. |
4.0
Critical Assumption and Constraints
The proposed new website must address all the current problems the
company are facing to.
Current director of Tien Phong Company must actively support the
project.
The new system must purchase the required software and hardware, and
must run on those. Moreover, it should require minimal technical support. Its
frontend must be easily accessible by all customers, and its backend must be
secure from unauthorized user.
.
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5.0
Analysis of Option and Recommendation
There are two options for addressing this opportunity:
1)
Purchase an inherent website available in the
Internet to meet the demand and attach to it with some self-reconfiguration.
2)
Design and implement the brand new website using the
totally new software and hardware.
Based on discussions with stakeholders, we believe that option 2 is
the best option.
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6.0
Preliminary Project Requirements
The main features of the Online Bookshop include the following:
1)
Administrator role is able to manage
(add/view/update/delete) category, book, user, order, shopping cart list
2)
Frontend unregister users are able to browse
category, browse all books, browse books by category, manage their shopping
carts (add/delete items, update quantity, remove items, clear cart), and do check
out to fill related information for an shipping order.
3)
Frontend registered users are able to give comments
on books and change user profile
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7.0 Budget
Estimate and Financial Analysis
A preliminary estimate of costs for the
entire project is $1000. The estimate is based on the project manager working
about 25 hours per week for 4 months and other internal staff working a total
of about 40 hours per week for 4 months. The customer representatives would
not be paid for their assistance. A staff project manager would earn $3 per
hour. The hourly rate for the other project team members would be $3.5 per
hour, since some hours normally billed to clients may be needed for this
project. The initial cost estimate also includes $1000 for purchasing
software and services from suppliers.
After the project is completed, maintenance costs of $200 are included
for each year, primarily to update the server and software.
Projected benefits are based on a great
amount of orders received. Projected benefits are also based on a huge
increase in profits due to new business generated by this project as well as
advertisement. Total benefits, therefore, are about $2000 per year.
Exhibit A summarizes the projected costs
and benefits and shows the estimated net present value (NPV), return on
investment (ROI), and year in which payback occurs. It also lists assumptions
made in performing this preliminary financial analysis. All of the financial
estimates are very encouraging. The estimated payback is before one year, as
requested by the client. The NPV is $3712, and the discounted ROI based on a
three-year system life is excellent at 253%.
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8.0
Schedule Estimate
The sponsor would like to see the project completed
within 4 months, but there is some flexibility in the schedule. We also
assume that the new system will have a useful life of at least 5 years.
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9.0
Potential Risks
There are several risks involved with this project. The foremost risk
is a lack of interest in the new
website by the client’s customers. Also, user input are crucial for
populating information into the website and realizing the potential benefits
from using the system. Moreover, as for technical risks, it is determining
among the inherent frameworks or inherent content management system (CMS)
which is the most suitable for this project.
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10.0
Exhibits
Exhibit A: Financial Analysis for Online Bookshop Website Project
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