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Alipay-Benefit Cost Analysis
Insights from the Big Dig Project
Introduction:
Alipay is the leading third-party payment program owned by Ant Financial Services, a subsidiary of China’s Alibaba. The platform serves over 600 million customers in the global market majority of who are the Chinese and tourist visiting China (Aleid, 2017). The attractive features of the platform such as user-friendliness and efficiency are the factors attract people to use it in making payments. The desire to maintain the brand promise is the factor that fuels constant redevelopment of the platform. In response to the opportunities to expand in the new markets and in improving the features of Alipay, Alibaba sponsored this program (Aleid, 2017)
Benefit Cost Analysis:
A cost benefit analysis is a procedure organizations use to examine choices. The business or expert wholes the advantages of a circumstance or activity and afterward subtracts the expenses related with making that move. A few advisors or examiners likewise assemble the model to put a dollar esteem on immaterial things, for example, the advantages and expenses related with living in a specific town, and most investigators will likewise factor opportunity cost into such conditions.
The control of online payment in China is different from how it is in other countries. For instance, China does not have the Western Standard or the Automated Clearing House which runs the direct deposits. In place of that, China has the China National Advanced Payment System which has to be done through the licensed Payment Service Providers (Nino, 2017). This is a costly affair for the companies which run this kind of payment system as time has to be spent in monitoring the activities and security of the transactions which are made. The PSPs in have different capacities as some are fast while others are slow. For the company to attain the benefit of fast payment and absolute reliability to its customers, the cost of investing in the strict regulations is unavoidable. However, Alipay already has agreement with government.
Alipay’s with agreement is a result of the economic feasibility study as carried out in the Big Dig project. As per the Big Dig project, nothing can actually escalate the costs of the project if the prior conditions are well-researched. Keeping in view this point of view, costs will not be increased with the increase of the taxes in the country on the online payment system due to the agreement with the government.
The team identified several PMO challenges. The administrative function was one of the challenges identified. Importantly, the PMO scope should include the operations that would provide strategic and governance value to the company (Burke, 2014). In response to address such challenge, the team ensured that it implement responsible structures and methodologies of the performance management. Also, capacity development and implementation of integrated views of work plan were integral to the success of the program.
In comparison to the Big Dig project, the project was helpful in coming up with strategies that can help in overcoming administrative functions. Administrative functions should be defined prior hand so that no issues are raised afterwards.
Stakeholder buy in was another identified challenge in the benefit cost analysis. Big Dig project solved this challenge by defining the aspect of value of partnering in an organization. Partnering sessions helped big dig project.
Similar is the situation of Ali Pay. It was essential for the team to articulate the program benefits regularly. On the same note, it is critical to implement such effort at levels of leadership to pave the way for the effective cooperation of the teams at all levels of the management. It enables the team to accomplish goals and objectives.
Conclusion:
The Big Dig project is one of the way good ways to look into cost benefit analysis steps. Ali pay has taken some good insights from the project.
Aleid, W. (2017). The Role of Alipay in Commerce in Cina(Master's thesis).
Nino, D. (2017, November 29). The Unique Challenges And Opportunities Of Handling Payments In China . Retrieved from https://www.forbes.com/sites/outofasia/2017/09/28/the-unique-challenges-and-opportunities-of-handling-payments-in-china/#5f313c0a6c9e