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Team_CostBenefitAnalysis_Week3_CMGT545_NewGroup2.pdf
SIMPLE COST BENEFIT ANALYSIS TEMPLATE
COMPANY NAME INTUIT, INC.
PROPOSED PRODUCT/INITIATIVE/SERVICE CLOUD-BASED SYSTEM
QUANTITATIVE ANALYSIS YEAR 1 YEAR 2
NON-RECURRING COSTS
Hardware $ 70,000.00 $ 10,000.00
Servers $ 15,000.00 $ -
Desktop $ 20,000.00 $ -
Telecommunication Equipment $ 10,000.00 $ -
Software (Packaged or Custom) $ 30,000.00 $ -
Computer Room Upgrades $ 7,000.00 $ -
Furniture and Fixtures $ 50,000.00 $ -
Project Organizational/Support Costs $ 30,000.00 $ -
Planning (upon Approval) $ 20,000.00 $ -
Procurement $ 5,000.00 $ -
Contract Negotiations $ 5,000.00 $ -
Labor $ 50,000.00 $ -
Infrastructure $ 10,000.00 $ -
Development $ 10,000.00 $ -
Business Process Owners (Users) $ 50,000.00 $ -
Management $ 17,000.00 $ -
Training of Employees (Pre-Implementation) $ 15,000.00 $ -
Transition Costs (Parallel Systems) $ 20,000.00 $ -
Post-Implementation Reviews $ 20,000.00 $ -
TOTAL NON-RECURRING COSTS $ 454,000.00 $ 10,000.00
RECURRING COSTS
Hardware/Software $ 50,000.00 $ 15,000.00
Software Maintenance and Upgrades $ 20,000.00 $ 5,000.00
Computer Supplies $ 15,000.00 $ 8,000.00
Desktops (Incremental to the Project) $ 5,000.00 $ 5,000.00
Help Desk Support $ 5,000.00 $ 5,000.00
Ongoing Additional Labor $ 7,000.00 $ 7,000.00
IT Staff Costs (including Benefits) $ 10,000.00 $ 5,000.00
User Training $ 5,000.00 $ 5,000.00
Other $ 5,000.00 $ 5,000.00
Telecommunications $ 10,000.00 $ 10,000.00
Office Leases $ 20,000.00 $ 20,000.00
TOTAL RECURRING COSTS $ 152,000.00 $ 90,000.00
TOTAL COSTS $ 606,000.00 $ 100,000.00
QUANTITATIVE BENEFITS YEAR 1 YEAR 2
REVENUES
Business profit $ 20,000.00 $ 60,000.00
TOTAL REVENUES $ 20,000.00 $ 60,000.00
COST SAVINGS
Decreased Cost of Services Provided $ 100,000.00 $ 70,000.00
Savings from Business Process Improvements $ 150,000.00 $ 150,000.00
Productivity Gains $ 200,000.00 $ 200,000.00
Savings from Structural Changes $ 100,000.00 $ 100,000.00
Savings from Optimized Information (or Flow) $ 180,000.00 $ 180,000.00
Decreased Information Publishing Cost $ 50,000.00 $ 50,000.00
Reduced Staffing Cost (including Overtime) $ 120,000.00 $ 120,000.00
Reduced Staff Turnover Costs $ 145,000.00 $ 145,000.00
TOTAL COST SAVINGS $ 1,045,000.00 $ 1,015,000.00
COST AVOIDANCE
Delaying increase in price of suppliers $ 100,000.00 $ 100,000.00
TOTAL COST AVOIDANCE $ 100,000.00 $ 100,000.00
OTHER BENEFITS
Improvement in method of operation $ 50,000.00 $ 80,000.00
TOTAL OTHER BENEFITS $ 50,000.00 $ 80,000.00
TOTAL BENEFITS $ 1,215,000.00 $ 1,255,000.00
CLICK HERE TO CREATE SIMPLE COST BENEFIT ANALYSIS TEMPLATES IN SMARTSHEET
SIMPLE COST BENEFIT ANALYSIS TEMPLATE
INTUIT, INC. DATE CONDUCTE 1/9/2021
CLOUD-BASED SYSTEM COMPLETED BY C-SUITE GROUP
YEAR 3 YEAR 4 YEAR 5 TOTAL
$ 10,000.00 $ 10,000.00 $ 7,000.00 $ 107,000.00
$ - $ - $ - $ 15,000.00
$ - $ - $ - $ 20,000.00
$ - $ - $ - $ 10,000.00
$ - $ - $ - $ 30,000.00
$ - $ - $ - $ 7,000.00
$ - $ - $ - $ 50,000.00
$ - $ - $ - $ 30,000.00
$ - $ - $ - $ 20,000.00
$ - $ - $ - $ 5,000.00
$ - $ - $ - $ 5,000.00
$ - $ - $ - $ 50,000.00
$ - $ - $ - $ 10,000.00
$ - $ - $ - $ 10,000.00
$ - $ - $ - $ 50,000.00
$ - $ - $ - $ 17,000.00
$ - $ - $ - $ 15,000.00
$ - $ - $ - $ 20,000.00
$ - $ - $ - $ 20,000.00
$ 10,000.00 $ 10,000.00 $ 7,000.00 $ 491,000.00
$ 15,000.00 $ 15,000.00 $ 15,000.00 $ 110,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 40,000.00
$ 7,000.00 $ 7,000.00 $ 7,000.00 $ 44,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 25,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 25,000.00
$ 7,000.00 $ 7,000.00 $ 7,000.00 $ 35,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 30,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 25,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 25,000.00
$ 10,000.00 $ 10,000.00 $ 10,000.00 $ 50,000.00
$ 20,000.00 $ 20,000.00 $ 20,000.00 $ 100,000.00
$ 89,000.00 $ 89,000.00 $ 89,000.00 $ 509,000.00
$ 99,000.00 $ 99,000.00 $ 96,000.00 $ 1,000,000.00
YEAR 3 YEAR 4 YEAR 5 TOTAL
$ 100,000.00 $ 200,000.00 $ 350,000.00 $ 730,000.00
$ -
$ -
$ 100,000.00 $ 200,000.00 $ 350,000.00 $ 730,000.00
$ 70,000.00 $ 70,000.00 $ 70,000.00 $ 380,000.00
$ 100,000.00 $ 200,000.00 $ 200,000.00 $ 800,000.00
$ 200,000.00 $ 200,000.00 $ 200,000.00 $ 1,000,000.00
$ 150,000.00 $ 150,000.00 $ 150,000.00 $ 650,000.00
$ 180,000.00 $ 180,000.00 $ 180,000.00 $ 900,000.00
$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 250,000.00
$ 120,000.00 $ 120,000.00 $ 120,000.00 $ 600,000.00
$ 145,000.00 $ 145,000.00 $ 145,000.00 $ 725,000.00
$ 1,015,000.00 $ 1,115,000.00 $ 1,115,000.00 $ 5,305,000.00
$ 100,000.00 $ 100,000.00 $ 100,000.00 $ 500,000.00
$ -
$ 100,000.00 $ 100,000.00 $ 100,000.00 $ 500,000.00
$ 140,000.00 $ 180,000.00 $ 250,000.00 $ 700,000.00
$ -
$ 140,000.00 $ 180,000.00 $ 250,000.00 $ 700,000.00
$ 1,355,000.00 $ 1,595,000.00 $ 1,815,000.00 $ 7,235,000.00
CLICK HERE TO CREATE SIMPLE COST BENEFIT ANALYSIS TEMPLATES IN SMARTSHEET
SIMPLE COST BENEFIT ANALYSIS TEMPLATE
QUANTITATIVE ANALYSIS YEAR 1 YEAR 2 YEAR 3
BENEFITS
COST SAVINGS $ 1,045,000.00 $ 1,015,000.00 $ 1,015,000.00
COST AVOIDANCE $ 100,000.00 $ 100,000.00 $ 100,000.00
REVENUE $ 20,000.00 $ 60,000.00 $ 100,000.00
OTHER $ 50,000.00 $ 80,000.00 $ 140,000.00
TOTAL BENEFITS $ 1,215,000.00 $ 1,255,000.00 $ 1,355,000.00
ACCUMULATED BENEFITS $ 1,215,000.00 $ 2,470,000.00 $ 3,825,000.00
COSTS
NON-RECURRING $ 454,000.00 $ 10,000.00 $ 10,000.00
RECURRING $ 152,000.00 $ 90,000.00 $ 89,000.00
TOTAL COSTS $ 606,000.00 $ 100,000.00 $ 99,000.00
ACCUMULATED COSTS $ 606,000.00 $ 706,000.00 $ 805,000.00
NET BENEFIT OR COST $ 609,000.00 $ 1,155,000.00 $ 1,256,000.00
1 2 3 4 5 $-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
Cost Benefit Analysis
ACCUMULATED BENEFITS ACCUMULATED COSTS
SIMPLE COST BENEFIT ANALYSIS TEMPLATE
YEAR 4 YEAR 5 TOTAL
$ 1,115,000.00 $ 1,115,000.00 $ 5,305,000.00
$ 100,000.00 $ 100,000.00 $ 500,000.00
$ 200,000.00 $ 350,000.00 $ 730,000.00
$ 180,000.00 $ 250,000.00 $ 700,000.00
$ 1,595,000.00 $ 1,815,000.00 $ 7,235,000.00
$ 5,420,000.00 $ 7,235,000.00
$ 10,000.00 $ 7,000.00 $ 491,000.00
$ 89,000.00 $ 89,000.00 $ 509,000.00
$ 99,000.00 $ 96,000.00 $ 1,000,000.00
$ 904,000.00 $ 1,000,000.00
$ 1,496,000.00 $ 1,719,000.00 $ 6,235,000.00
1 2 3 4 5 $-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
$7,000,000.00
$8,000,000.00
Cost Benefit Analysis
ACCUMULATED BENEFITS ACCUMULATED COSTS
- Simple Cost Benefit Analysis
- Analysis Summary
