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SAMS Feasibility Study
Revision Sheet
Revision Sheet
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SAMS Feasibility Study
FEASIBILITY STUDY
TABLE OF CONTENTS
Page #
1.0 GENERAL INFORMATION...........................................................................................2
1.1 Purpose............................................................................................................................2
1.2 Scope................................................................................................................................2
1.3 System Overview............................................................................................................2
1.4 Project References..........................................................................................................3
1.5 Definitions, Acronyms and Abbreviations...................................................................4
1.6 Overview of the Remainder of the document..............................................................4
2.0 MANAGEMENT SUMMARY.........................................................................................7
2.1 Environment...................................................................................................................7
2.1.1 Organizations Involved...........................................................................................................................7
2.1.2 Input/output.............................................................................................................................................7
2.1.3 Processing...............................................................................................................................................8
2.1.4 Security...................................................................................................................................................8
2.1.5 System Interaction..................................................................................................................................8
2.1.6 Physical Environment.............................................................................................................................9
2.2 Current Functional Procedures....................................................................................9
2.3 Functional Objectives..................................................................................................11
2.4 Performance Objectives...............................................................................................11
2.5 Assumptions and Constraints.....................................................................................12
2.6 Methodology.................................................................................................................12
2.7 Evaluation Criteria......................................................................................................13
2.8 Recommendation..........................................................................................................14
3.0 PROPOSED SYSTEM....................................................................................................16
3.1 Description of Proposed System..................................................................................16
3.2 Improvements...............................................................................................................19
3.3 Time and Resource Costs............................................................................................19
3.4 Impacts..........................................................................................................................20
3.4.1 Equipment Impacts...............................................................................................................................20
3.4.2 Software Impacts...................................................................................................................................20
3.4.3 Organizational Impacts.........................................................................................................................21
3.4.4 Operational Impacts..............................................................................................................................21
3.4.5 Developmental Impacts........................................................................................................................22
3.4.6 Office Facility Impacts..........................................................................................................................23
3.4.7 Security and Privacy Impacts...............................................................................................................23
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SAMS Feasibility Study
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SAMS Feasibility Study 2.0 Management
Summary
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SAMS Feasibility Study 2.0 Management
Summary
1.1 Purpose
The purpose of this study is to establish a recommendation as to whether or not it is worth
carrying on with the requirement engineering and system development process for the asset
management system for sigma pensions. This study will lead to a decision as to whether to go
ahead or not with the requirement gathering or to re-strategize. This Feasibility study tests the
proposed system according to its workability, ability to meet needs and effective use of the
resources. It is also intended to identify the potential problems that exist in the current system.
Other reasons for which the feasibility study is carried out include;
To creates focus for the project work.
To streamline the alternative options available to the business.
To help identify new opportunities available to the business.
To identify reasons not to proceed.
To affords the entity with valuable information for a go/no go decision criteria.
To identify the weakness of a proposed system early hence affords the entity the
opportunity to mitigate and increase the probability of success.
To provide documentation that the idea was thoroughly investigated.
1.2 Scope
The scope of the study covers the effect the asset management system will have on current and
future asset management processes and procedures of sigma pensions, it determines how effective
the proposed system is likely to be as well as its technical and economic efficiencies. The study
will also likely examine the social implications of the proposed system and other alternative
solutions.
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SAMS Feasibility Study 2.0 Management
Summary
The business entity is currently undergoing a series of major cooperate reconstruction with one of
its main objectives being to go 100% paperless this means the reduction of use of paper in order
to curb wastage and improve efficiency and effectiveness of its processes. As the asset
management System will be digitally based this reduces the need for keeping hard copy
documents associated with asset management e.g. Noncurrent asset schedules document etc.
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SAMS Feasibility Study 2.0 Management
Summary
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SAMS Feasibility Study 2.0 Management
Summary
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SAMS Feasibility Study 2.0 Management
Summary
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SAMS Feasibility Study 3.0 Proposed
System
2.1 Environment
2.1.2 Input/output
Input Requirements
Interaction with Entity's internal computer systems
The information entered into a computer system, e.g. typed text, mouse click, etc.
Output Requirements
Interaction with Entity's internal computer systems
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SAMS Feasibility Study 3.0 Proposed
System
The information retrieved from computer system monitor, and information printed
out from the system.
2.1.3 Processing
Minimum system Requirements of the proposed system include
Requirements
Windows
Operating system Windows Server 2003 or Higher
CPU Pentium processor at 90 MHz or higher
Memory 16 MB RAM
Hard drive 80 MB available in the hard disk
.
2.1.4 Security
Some security requirements of the proposed system include
The need for an authentication an authorization mechanism the will allow for data
manipulation of only privileged users and restrict access to un-authorized persons
The SAMS will not allow for embedded commands in data provided by users that force
the system to manipulate information stored in database table i.e. the application should
not be vulnerable to SQL injection attacks
Audit Log support to keep track of changes made by authorized users.
Configuration management: Restricting unauthorized access to administration
environment and configuration stores etc.
Session management
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SAMS Feasibility Study 3.0 Proposed
System
accounting policy documents as guide. The process involves manual asset record management
(manually registering assets in asset schedule) and manual tracking of net book value of the asset.
(Manually tracking and offsetting accumulated depreciation from asset acquisition cost or carrying
amount). The reporting process of net assets is also manual as accounting staff need to sieve
through long ledgers of asset registers to spool out the data and information needed for preparing
the companys financial statements and for management decision making.
Assets are manually entered into the entitys asset schedule depending on the class of the
asset.
In this case the current system performs the day to day activities in the following ways.
The assets are recorded manually and their required data is hot property kept
Financial treatment of assets such as depreciation, amortization, impairment and
revaluation are carried out manually by finance staff and the net book values and
accumulated depreciation of the assets are recorded manually as such data
becomes available. This can often take weeks and months depending on the
volume of assets owned by the entity as it is carried out on either per asset basis as
in the case of depreciation or per class basis as in the case of revaluation
Assets Information i.e. the date of acquisition, depreciation/amortization policy,
net book value, accumulated depreciation tax written down values, disposal values,
disposal date, gains on disposal etc. are then manually recorded for each asset or
asset class.
The current system requires excess cost on manpower and limits the productivity of
finance staff that might otherwise be put to other productive activities of the entity. In
addition a high volume of work is involved and requires staff with deep understanding of
the accounting standards as it related to the recording of companies current and non-
current assets, Valuation of assets etc. Hence requires staffs with expert skills
Generally, the existing system performs all the aspects of asset management and control manually.
Hence it will be in the interest of the organization to automate the process in order to reduce the
costs incurred by the company.
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
Another assumption is that most inputs to the system are entered into the system from
primary sources i.e. the users of the system.
That the processing requirements of the system is static and does not change over time.
That all output is in a predetermined format acceptable by all users of the system i.e all
users have uniform output expectations.
That the business entity will wish to minimize costs and maximize the benefits of the
proposed system
That all data pertaining to the proposed system and alternative systems are readily
available for decision making on an effective and efficient course of action.
That hardware and technology employed is static and does not change over time.
That software and operating system (operating environment) remains constant over the
operational life of the proposed solution.
Constraints/limitations
Limitation in the availability of Resource, financial to carry out adequate feasibility studies.
Unavailability of adequate and appropriate data for analysis of alternatives.
Lack of management buy in or buy in of some other stakeholder groups such as
employees.
Wide communication gap between users and solution providers.
2.6 Methodology
The methodology employed or strategy used in carrying out the feasibility analysis of the
proposed system includes and is not limited to survey of the operations of the organization,
modeling of its processes with and without the proposed system, benchmarking its performance
with competitors and other business entities that employ an automated asset management system,
observation of its activities and processes, interview of finance, administration and procurement
staff etc. to evaluate the proposed system to arrive at a feasible alternative.
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SAMS Feasibility Study 3.0 Proposed
System
Information
services
Market Feasibility: how sellable will the software be and will the employees of the entity
be likely to buy into the idea. It evaluates this based on the following criteria:
Hardware and software Requirements.
Suitability of production technology.
Availability and suitability of the system to meet user requirements.
System inputs/outputs and processing requirements
Financial/Economic Feasibility: The cost savings of additions that are likely to happen
as a result of the development project. This entails a Cost-Benefit analysis of the
alternatives and looks at such items of costs as:
Estimate the total capital requirements.
Estimate equity and credit needs.
Budget expected costs and returns from savings
Organizational/Managerial Feasibility: This looks at how the alternatives will affect or
impact on the stakeholders involved in the business and the development of the proposed
system
Business Structure of the entity.
Owners of the entity and other stakeholders and their likely needs.
Environmental feasibility: Examines the business environment to assess the impact of
the proposed system to environmental dynamics.
Environmental impact and their assessment
Legal feasibility: Looks at laws and regulations affecting the alternative and how those
affect the development of the proposed system. Answers the questions:
Is the project legally feasible?
What are the Legal requirements?
2.8 Recommendation
The results of the feasibility study carried out indicates that it would be in the best interest of the
entity Sigma Pensions to undertake the development project as this will likely reduce its overall
costs in the long run, reduce processing time for existing and new asset management, will likely be
easier to use for accounting staff as it does not require the deep expertise or understanding of
accounting policies as not going ahead with the development time might likely result in
information integrity issues for assets as valuations can be subjective depending on who is
carrying it out and might likely lead to the employment of different accounting policies for
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SAMS Feasibility Study 3.0 Proposed
System
different assets either within or outside the same asset class as each accounting staff will likely
select an accounting policy he/she is most comfortable with, Hence comparison based on
produced data with the existing system is likely to be unreliable. Failure to go ahead with the
project as earlier indicated might likely lead to increased labor costs, reduced productivity and
time wastage. There is always the risk that information is delayed and might not be available as at
when due.
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 3.0 Proposed
System
3.2 Improvements
The proposed system will be computerized/automated and will improve the effectiveness and
efficiency with which the business entity manages and maintains its current and non-current assets and
offers a much more reliable estimates and data to managers. It offers an easier and faster process of
asset management for users. Provides a comprehensive reporting system with readily available data for
decision makers. It is easier to manage operate and control, offers improved reliability, maintainability
and integrity of data. Better classification and organization of assets, an organized database, and
secured all information related to assets of the entity
Costs Requirements
The financial projections for the development of an asset management system for sigma pensions
is shown in the table below. These figures account for projected planning cost, projected
development cost, projected training and projected maintenance cost(web server and hosting
costs) for the proposed system.
All costs are incurred on a per annum and per activity basis.
Measure Year 1 Year 2 Year 3 Year 4 Year 5 5 Year Total
Planning costs 100,000 0 0 0 0 100,000
Development Cost Projections For the
2,725,000 0 0 0 0 2,725,000
SAMS
Additional Web Server and IT
22,000 25,000 30,000 35,000 40,000 152,000
Hosting/Maintenance
projected training 75,000 0 0 0 0 75,000
Time Requirements
Duration estimates of the proposed system are as shown below:
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System
Duration
Task Name Start End (days)
Planning 5/20/2017 5/27/2017 7
3.4 Impacts
The proposed system will have a tremendous impact on the processes of the entity as it is likely to
completely replace the manual methods or processes of asset management and control hence this
will lead to changes In different aspects of entity processes such as equipment used, software
employed, operations, organizational structure and culture, organizational development and
growth, security and privacy of data and information and other facilities. Some of the impacts of
the proposed system will not always be positive as theres likely to be potential problems
particularly inherent to the conversion process from the old system to the new system.
We take a look at the individual impacts of the proposed system to the business entity.
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System
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SAMS Feasibility Study 3.0 Proposed
System
Data entry procedures; Data entry will no longer be a manual process and data can be
obtained from primary sources (i.e. registered/imputed into the system by the AMS Staff)
and secondary sources (i.e. imported from other applications/systems).
Data retention requirements might also change as online automated data and information
is much more capable of staying longer than physical hardcopy data which requires
physical space. Millions of data can be stored on a compacted storage i.e. hard drives
unlike physical storage.
In the same vein retrieval procedures for stored data is likely going to be easier and faster
since data is stored in a structured database that provides for easy retrieval and
manipulation.
Reports can also be generated to stakeholders and decision makers in real time which
makes for effective decision making, storage and communication media for data goes from
manual paper methods to online computer documents and files. It becomes easier and
faster to identify fully depreciated items and obsolete items and replace them in a timely
manner. Processes and report generation can also be scheduled by the new system.
System failure can be much more catastrophic for an automated system than a manual
system hence contingencies such as backup and recovery processes, plans and procedures
need to be adequately put in place to reduce the risks of system failures.
The intended users of the system need to provide a comprehensive list of requirements for
the new system to the developers as failure to do this will likely create a communication
gap between the users and the developer and hence the development process will fail to
meet user requirements.
The development process will also require users to give ample information of what type of
data needs to be stored and how the structure of the data will need to be in order to
develop databases for the system. Such resources might include copies of the asset register
etc.
A development and a test environment will need to be set up in order to build the new
system, The development environment will strictly be meant for development activities and
be set up to support such, while the test environment will mimic the production
environment and provide a platform to carry out UAT by intended users.
With the increased dependence on technology it has become common occurrence for
nefarious individuals to hack into an entities systems and carry out malicious activities on
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System
those systems hence it has become important for the development activities to focus on
key privacy and security concerns affecting the proposed system. Hence key security
concerns like session management, authorization and authentication, protection against
SQL injections need to be at the fore front of development activities.
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SAMS Feasibility Study 3.0 Proposed
System
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SAMS Feasibility Study 4.0 Alternative
Systems
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SAMS Feasibility Study 4.0 Alternative
Systems
A Number of alternative systems (alternative solutions/causes of action) are available to the entity
which could all eliminate the issues and problems that are faced by the entity we take a summary
look at some of these solutions that have been considered in this feasibility study
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SAMS Feasibility Study 4.0 Alternative
Systems
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