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CostBenefitAnalysis_Week3_Team.xlsxSimple Cost Benefit Analysis
| SIMPLE COST BENEFIT ANALYSIS TEMPLATE | |||||||
| COMPANY NAME | Intuit Inc. | DATE CONDUCTED | 9/14/20 | ||||
| PROPOSED PRODUCT/INITIATIVE/SERVICE | Cloud-based Systems | COMPLETED BY | 9/14/20 | ||||
| QUANTITATIVE ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | TOTAL | |
| NON-RECURRING COSTS | |||||||
| Hardware | $ 100,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 180,000.00 | |
| Servers | $ 15,000.00 | $ 15,000.00 | |||||
| Desktop | $ 20,000.00 | $ 20,000.00 | |||||
| Telecommunication Equipment | $ 10,000.00 | $ 10,000.00 | |||||
| Software (Packaged or Custom) | $ 50,000.00 | $ 50,000.00 | |||||
| Computer Room Upgrades | $ 2,000.00 | $ 2,000.00 | |||||
| Furniture and Fixtures | $ 10,000.00 | $ 10,000.00 | |||||
| Project Organizational/Support Costs | $ 15,000.00 | $ 15,000.00 | |||||
| Planning (upon Approval) | $ 10,000.00 | $ 10,000.00 | |||||
| Procurement | $ - 0 | ||||||
| Contract Negotiations | $ 5,000.00 | $ 5,000.00 | |||||
| Labor | $ 160,000.00 | $ 160,000.00 | |||||
| Infrastructure | $ 30,000.00 | $ 30,000.00 | |||||
| Development | $ 75,000.00 | $ 75,000.00 | |||||
| Business Process Owners (Users) | $ 25,000.00 | $ 25,000.00 | |||||
| Management | $ 40,000.00 | $ 40,000.00 | |||||
| Training of Employees (Pre-Implementation) | $ 30,000.00 | $ 30,000.00 | |||||
| Transition Costs (Parallel Systems) | $ 10,000.00 | $ 10,000.00 | |||||
| Post-Implementation Reviews | $ 5,000.00 | $ 5,000.00 | |||||
| TOTAL NON-RECURRING COSTS | $ 612,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 692,000.00 | |
| RECURRING COSTS | |||||||
| Hardware/Software | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 | $ 25,000.00 | |
| Software Maintenance and Upgrades | $3,600 | $3,600 | $3,600 | $3,600 | $3,600 | $ 18,000.00 | |
| Computer Supplies | $400 | $400 | $500 | $500 | $600 | $ 2,400.00 | |
| Desktops (Incremental to the Project) | $10,000 | $2,500 | $2,500 | $1,000 | $1,000 | $ 17,000.00 | |
| Help Desk Support | $5,300 | $4,800 | $4,800 | $4,800 | $4,800 | $ 24,500.00 | |
| Ongoing Additional Labor | $ 10,000.00 | $ 5,000.00 | $ 2,500.00 | $ 2,500.00 | $ 1,000.00 | $ 21,000.00 | |
| IT Staff Costs (including Benefits) | $ 80,000.00 | $ 85,000.00 | $ 9,000.00 | $ 95,000.00 | $ 100,000.00 | $ 369,000.00 | |
| User Training | $ 10,000.00 | $ 6,000.00 | $ 4,000.00 | $ 1,500.00 | $ 1,500.00 | $ 23,000.00 | |
| Other | $ - 0 | ||||||
| Telecommunications | $ 2,400.00 | $ 2,400.00 | $ 2,400.00 | $ 2,400.00 | $ 2,400.00 | $ 12,000.00 | |
| Office Leases | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 22,000.00 | $ 22,000.00 | $ 104,000.00 | |
| TOTAL RECURRING COSTS | $ 146,700.00 | $ 134,700.00 | $ 54,300.00 | $ 138,300.00 | $ 141,900.00 | $ 615,900.00 | |
| TOTAL COSTS | $ 758,700.00 | $ 154,700.00 | $ 74,300.00 | $ 158,300.00 | $ 161,900.00 | $ 1,307,900.00 | |
| QUANTITATIVE BENEFITS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | TOTAL | |
| REVENUES | |||||||
| Shared Resource Revenue | $ 20,000.00 | $ 40,000.00 | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 | $ 210,000.00 | |
| $ - 0 | |||||||
| $ - 0 | |||||||
| TOTAL REVENUES | $ 20,000.00 | $ 40,000.00 | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 | $ 210,000.00 | |
| COST SAVINGS | |||||||
| Decreased Cost of Services Provided | $ 75,000.00 | $ 75,000.00 | $ 75,000.00 | $ 75,000.00 | $ 75,000.00 | $ 375,000.00 | |
| Savings from Business Process Improvements | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 200,000.00 | |
| Productivity Gains | $ 25,000.00 | $ 25,000.00 | $ 25,000.00 | $ 25,000.00 | $ 25,000.00 | $ 125,000.00 | |
| Savings from Structural Changes | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 5,000.00 | $ 25,000.00 | |
| Savings from Optimized Information (or Flow) | $ 10,000.00 | $ 10,000.00 | $ 8,000.00 | $ 8,000.00 | $ 8,000.00 | $ 44,000.00 | |
| Decreased Information Publishing Cost | $ 3,600.00 | $ 3,600.00 | $ 4,200.00 | $ 4,200.00 | $ 4,800.00 | $ 20,400.00 | |
| Reduced Staffing Cost (including Overtime) | $ 25,000.00 | $ 25,000.00 | $ 25,000.00 | $ 27,000.00 | $ 27,000.00 | $ 129,000.00 | |
| Reduced Staff Turnover Costs | $ 15,000.00 | $ 15,000.00 | $ 15,000.00 | $ 10,000.00 | $ 10,000.00 | $ 65,000.00 | |
| TOTAL COST SAVINGS | $ 198,600.00 | $ 198,600.00 | $ 197,200.00 | $ 194,200.00 | $ 194,800.00 | $ 983,400.00 | |
| COST AVOIDANCE | |||||||
| Hardware Operating Costs | $ 18,000.00 | $ 18,000.00 | $ 19,000.00 | $ 19,000.00 | $ 20,000.00 | $ 94,000.00 | |
| Hardware Upgrade Costs | $ 10,000.00 | $ 12,000.00 | $ 22,000.00 | ||||
| TOTAL COST AVOIDANCE | $ 28,000.00 | $ 18,000.00 | $ 19,000.00 | $ 19,000.00 | $ 32,000.00 | $ 116,000.00 | |
| OTHER BENEFITS | |||||||
| (Enter Other Benefits Here) | $ - 0 | ||||||
| $ - 0 | |||||||
| TOTAL OTHER BENEFITS | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | |
| TOTAL BENEFITS | $ 246,600.00 | $ 256,600.00 | $ 266,200.00 | $ 263,200.00 | $ 276,800.00 | $ 1,309,400.00 | |
| CLICK HERE TO CREATE SIMPLE COST BENEFIT ANALYSIS TEMPLATES IN SMARTSHEET | |||||||
Analysis Summary
| SIMPLE COST BENEFIT ANALYSIS TEMPLATE | |||||||
| QUANTITATIVE ANALYSIS | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | TOTAL | |
| BENEFITS | |||||||
| COST SAVINGS | $ 198,600.00 | $ 198,600.00 | $ 197,200.00 | $ 194,200.00 | $ 194,800.00 | $ 983,400.00 | |
| COST AVOIDANCE | $ 28,000.00 | $ 18,000.00 | $ 19,000.00 | $ 19,000.00 | $ 32,000.00 | $ 116,000.00 | |
| REVENUE | $ 20,000.00 | $ 40,000.00 | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 | $ 210,000.00 | |
| OTHER | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | $ - 0 | |
| TOTAL BENEFITS | $ 246,600.00 | $ 256,600.00 | $ 266,200.00 | $ 263,200.00 | $ 276,800.00 | $ 1,309,400.00 | |
| ACCUMULATED BENEFITS | $ 246,600.00 | $ 503,200.00 | $ 769,400.00 | $ 1,032,600.00 | $ 1,309,400.00 | ||
| COSTS | |||||||
| NON-RECURRING | $ 612,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 692,000.00 | |
| RECURRING | $ 146,700.00 | $ 134,700.00 | $ 54,300.00 | $ 138,300.00 | $ 141,900.00 | $ 615,900.00 | |
| TOTAL COSTS | $ 758,700.00 | $ 154,700.00 | $ 74,300.00 | $ 158,300.00 | $ 161,900.00 | $ 1,307,900.00 | |
| ACCUMULATED COSTS | $ 758,700.00 | $ 913,400.00 | $ 987,700.00 | $ 1,146,000.00 | $ 1,307,900.00 | ||
| NET BENEFIT OR COST | $ (512,100.00) | $ 101,900.00 | $ 191,900.00 | $ 104,900.00 | $ 114,900.00 | $ 1,500.00 | |
Cost Benefit Analysis
ACCUMULATED BENEFITS 246600 503200 769400 1032600 1309400 ACCUMULATED COSTS 758700 913400 987700 1146000 1307900
