Submitted by Zorawar Bhattal

Roll # 501504011

Question No1: Calculate the ROI for San Diego's ERP system. How can you quantify the

soft benefits of the System and include them in the analysis?

This question should include ROI calculations for the following three scenarios:-

a. ROI based on cost savings only

b. ROI based on cost savings & efficiency improvements

c. ROI based on cost savings, efficiency improvements & soft benefits

Solution: a) ROI based on cost savings only:

Total hard cost savings = $3316709

Total projected incremental yearly costs = $1820000

ROI = (3316709 1820000)/ 1820000 = 0.82

b) ROI based on cost savings & efficiency improvements:

Total hard cost savings = $6397834

Total projected incremental yearly costs = $1820000

ROI = (6397834 1820000)/ 1820000 = 2.51

c) ROI based on cost savings, efficiency improvements & soft benefits:

Total hard cost savings = $(6397834 + 320000 + 400000) = $7117834

Total projected incremental yearly costs = $1820000

ROI = (7117834 - 1820000)/1820000 = 2.91

Question NO2: With the information you have access to, what should Wiemann present

and recommend at the board meeting? Specifically, would you recommend going forward

with the HR system implementation? If not, what alternatives would you suggest?

Solution: There are some options to implementing a HR ERP system that will still achieve some

improvement in efficiency with a smaller upfront cost, but they are less effective in the long term

because of the lack of a central database and increased chance of resistance. There are some

good options or alternatives which can be useful for HR system implementation as given below:

The district could chose to use independent software packages for the different roles of

HR. They can choose to only upgrade the payroll process by installing an electronic sign-

in system and depositing checks directly. The lack of a central database, however, means

that HR employees still have to enter the same information into separate databases. This

approach will never realize the full benefits of an ERP system and will only increase the

cost of merging databases in the future.

Another alternative is to roll-out the HR ERP system to only a portion of schools in order

to test out the deployment. While this seems to be less risky than an all-at-once

deployment, it actually increases the chance for failure. Often, the experimental group

will encounter unexpected difficulties and give others a bad impression of the ERP

system. This causes resistance to the new system in the other school schools, and also

makes the deployment more time consuming and expensive. It is better to dive in at once

than to drag out deployment.

Question No3: What are the risks associated with the project? Would you advise the school

board of these risks?

Solution: The risk of decreased productivity in implementing the ERP project, but there are

other risks that a voter should be aware of, including the risks inherent in any ERP deployment

as well as the risks unique to the education industry.

There are following risks which given below:

Any ERP system can fail due to the difficulty of customizing the system for many users

in different locations, known as wide-scale deployment. San Diego City School District

has 180 schools and each needs to be upgraded to the new system.

Deploying a new system to multiple users and locations at one time greatly increased the

risk of project failure

Scope creep is another general ERP risk. It refers to expanding the requirements of the

ERP system over the course of implementation.

A unique risk to the education industry in implementing ERP is the lack of native IT

expertise.

To combat wide-scale deployment and scope-creep issues, the district has chosen to implement

only the Human Resources module of the ERP system. This will help make it easier to upgrade

each site to the new software, and discourage others from trying to add requirements that are

not related to HR