Corrections to Information Systems and Business Values
LeeTampa
Cost-BenefitAnalysisExample2.pptxSeptember 8, 2018
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Cost Benefit Analysis on CRM
WestJet Airlines
Cost-Benefit Analysis:
Cost Benefit Analysis on CRM
This is the representation of obtaining a CRM quote
Calculations about user and data storage require, security, and customization
In house server maintenance cost is high compared to a cloud CRM
In about 2.7 year WestJet can recover CRM investment
Savings per year are about 149K that can be invested in future CRM strategies.
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CostYear 1Year 2Year 3Year 4
CRM Cost390,720.00$ 390,720.00$ 390,720.00$ 390,720.00$
Toronto and Calgary Server cost540,000.00$ 540,000.00$ 540,000.00$ 540,000.00$
Savings149,280.00$ 149,280.00$ 149,280.00$ 149,280.00$
ROI /Year149,280.00$ 298,560.00$ 92,160.00$
ROI in Years2.617
Cost savings/Year149,280.00$
(WestJet Assumptions)(Quote)
Storage15.00$
Customization20.00$
CMR Professional/User39.00$
Total/User/Month74.00$
Number of IT users240
WestJet Employees (Assumptions)200
Total/User440
Total/User/Month32,560.00$
Total/User/Year390,720.00$
Current
Cost of maintaining Calgary and
Toronto Servers/Month (Assumption)
45,000.00$
Cost of maintaining Calgary and
Toronto Servers/Year (Assumption)540,000.00$
