INF80042 TECHNOLOGY ESSENTIALS FOR MANAGERS

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INF80042 TECHNOLOGY ESSENTIALS FOR MANAGERS
Assignment 4: Cost Benefit Analysis
Assessment Structure: Report
Individual or Group: Individual
Learning outcomes assessed: This assessment task is designed to test your achievement of learning
outcomes 1,2,3,4
Word limit: 1800 +/- 10%
Weighting: This assessment task contributes 30% to your final grade
Due Date & Submission details: This assessment is due by: 9am 07/10/2019. This assessment task must
be submitted inside the Assessment 4 Canvas submission link.
In this assignment you will create a Cost Benefit Analysis (CBA) report for an Financial Technology
(FinTech) start-up organisation looking to expand into a second location within the same city and
considering changing from a current 1-staff-per-office to an open plan hot-desking model with a Bring
Your Own Device (BYOD) infrastructure model. Your CBA will analyse a set of criteria and put forward a
recommended preferred solution.
What is a Cost Benefit Analysis (CBA)?
A Cost Benefit Analysis is a process businesses use to analyse decisions. A CBA normally takes into
consideration the Net Present Value (NPV) and a discount value* of costs and benefits. An analyst sums
the benefits of a situation or action and then subtracts the costs associated with taking that action. The
CBA technique assumes that a monetary value can be placed on all the costs and benefits of a
programme, including tangible and intangible returns to other people and organisations in addition to
those immediately impacted.
* For the purpose of this CBA, a simple payback calculation will be used instead, which removes the
complex NPV discount, while at the same time is reflective of the most basic question that management
and finance expect – i.e. Will it pay back in less than X years?
Key Points
• Cost-benefit analysis is a relatively straightforward tool for deciding whether to pursue a project.
• To use the tool, first list all the anticipated costs associated with the project, and then estimate
the benefits that you’ll receive from it.
• Where benefits are received over time, work out the time it will take for the benefits to repay the
costs.
• You can carry out an analysis using only financial costs and benefits. However, you may decide to
include intangible items within the analysis. As you must estimate a value for these items, this
inevitably brings more subjectivity into the process.
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Background and context
SwinX is a Financial Technology (FinTech) start-up company based in Hawthorn, Australia. The
organisation currently has 30 employees. The company has developed a revolutionary new electronic
mobile payment gateway system called ‘Swindle’ and uptake from consumers in Australia and around the
world has surprised the organisation. Expansion is required quickly with an additional 15 staff to be
expected to be recruited ASAP. This recruitment will include:
• 1 x Project Manager with (5-10 years-experience);
• 9 x Business Analyst (Entry-level);
• 3 x Business Analytics /Reporting Analyst (Entry-level); and
• 2 x Admin (Entry-level)
SwinX management do not want to leave their current office at Hawthorn which is conveniently located
inside the Swinburne University of Technology Innovation Precinct but the physical constraints of the
office space inside the innovation precinct have led management to begin a search for a second office.
Management have identified Burnley (an adjacent suburb to Hawthorn) as the ideal second location.
Currently, the 30 SwinX Hawthorn-based staff are assigned 1 staff member per private office (6 x 6
metres, each with a 27-inch LCD monitor, laptop docking station and Internet and Cisco phone). Staff are
each supplied 1 x HP Spectre laptop with Office 360 and 1 x iPhone XRs for their work on-the-go. All work
is backed up in a basic Amazon Web Service (AWS) Cloud platform model.
Management are open to considering changes from PC to Mac laptops and iOS to Android for their
smartphones.
Currently all staff have their ID photo taken and are provided a swipe card with lanyard to enable access
into the Hawthorn offices. The swipe cards are also used for printing and for purchases from the kitchen
kiosk (at no extra cost). The average printing cost per employee is $125 per year and the cost of providing
the kitchen Kiosk is $250 per employee per year.
Your Task
Conduct a Cost Benefit Analysis for SwinX which explores the following three (3) options:
1. Keeping the current architecture, infrastructure (software, vendor relationships) and building
office setup model for Hawthorn and Implementing a hot-desking and BYOD policy for staff
deployed at the new Burnley Office (OPT1);
2. Keeping the current architecture, infrastructure (software, vendor relationships) and building
office setup model for BOTH locations (Innovation Precinct and Burnley) (OPT2);
3. Implementing a hot-desking and BYOD policy for BOTH locations (Innovation Precinct and
Burnley) (OPT3);
Steps for conducting your CBA:
Step One: Brainstorm Costs and Benefits.
Step Two: Assign a Monetary Value to the Costs.
Step Three: Assign a Monetary Value to the Benefits.
Step Four: Compare Costs and Benefits
Overall considerations for you to complete the CBA:
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• What Are the Goals and Objectives of the Project? The first step is perhaps the most important
because before you can decide if a project is worth the effort, you need a clear and definite idea
of what it is set to accomplish.
• What Are the Alternatives? Before you can know if the project is right, you need to compare it to
other projects and see which is the best path forward.
• Who Are the Stakeholders? List all stakeholders in the project.
• What Measurements Are You Using? You need to decide on the metrics you’ll use to measure all
costs and benefits.
• What Is the Outcome of Costs and Benefits? Look over what the costs and benefits of the project
are, and map them over a relevant time period (ProjectManager 2019)
These tasks will be explained further in class and time set aside to work up your CBA prior to submission.
Project Manager 2019, The process of Cost Benefit Analysis, viewed 03/08/2019, < https://www.projectmanager.com/blog/costbenefit-analysis-for-projects-a-step-by-step-guide >.
Structuring your CBA report
Your report should be 7 pages in length and structured as follows:
• Page 1: Title, Student ID and name.
• Page 2: Description of the CBA, any assumptions (3 marks)
• Page 3: Identification and description of the Costs (5 marks)
• Page 4: Identification and description of the Benefits (5 marks)
• Page 5: Analysis (10 marks)
• Page 6. Preferred Recommendation to SwinX Management (5 marks)
• Page 7. Reference & Resource List (2 marks)
Assignment 4 Rubric
Please see the copy of the Assignment 4 Rubric in the Assignment 4 Folder in Canvas. Read the rubric
carefully to identify where marks are awarded.
Referencing
You must use the Harvard Referencing style and list all references and resources used in your report.
Other expectations
Keep a MS Word Doc backup of your Report submissions. If your assessment goes astray, whether your
fault or ours, you will be required to re-produce it.
It is expected that all work submitted, will have been edited for spelling, grammar and clarity.
Extensions and Late Submission
Please reread the section on Extensions and Late Submission that can be found in the Unit Outline.
Plagiarism
Please reread the section on plagiarism that can be found in the Unit Outline.
Any evidence of plagiarism will result in referral of your assessment to the Chair of Department,
Business Technology and Entrepreneurship, Swinburne Business School.
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Collaborative discussion with other participants in the unit around concepts and additional examples is
highly recommended, but don’t copy.
Assessment Help
If you have any queries or concerns, you may discuss with the convenor and/or tutor in the Canvas
discussion board in the appropriate discussion forum or by email or during the unit’s consultation hours.
IT Technical Help
Technical assistance on any IT related issues can be obtained from the Swinburne Service Desk (03)
9214 5000.

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