Hi everyone we do have this a group project about the airbnb so i will attached the file you can see my part only about 5 and 6
(Briefly touching on) Risks and Critical Success Factors 6)
(Briefly touching on) Ethical/Regulatory/Political Issues/.
its like 2 paragraph for number 5 and one paragraph for 6
Team Project Section III – Implementation of the Solution
In Section III, you are asked to explain how you will implement your solution.
See Project Overview “Section III†and the sample reports for references.
Please clearly indicate who is responsible for which subsections
Section III should address the following topics:
1) An Entity Relationship Diagram for data you defined in the previous section
(with at least 4 entities)
2) Hardware & Software Specifications
•
Specify required hardware and software to support 5C’s
3) Implementation & Operation Costs, Benefits, and Return on Investment
•
Define one-time development costs vs. ongoing costs
•
Find ROI, break-even point for $ spent (Excel template available on BB)
4) Implementation Plan & Marketing campaign (how to get people to use it)
5) (Briefly touching on) Risks and Critical Success Factors
6) (Briefly touching on) Ethical/Regulatory/Political Issues
See page 2 for detailed explanations
Team Project Section III – Implementation of the Solution
III-1. Hardware & Software Specifications
– Specify what hardware and software that are required to implement your solution for Capturing, Conveying, Creating,
Cradling, and Communicating data.
– For cradling data, draw an Entity Relationship Diagram for data to be stored.
– Clearly indicate PKs and cardinality.
– Use 1-to-Many relationships ONLY (many-to-many relationships need to be decomposed)
III-2. Cost & Benefit Analysis (5-year Net Present Value Analysis)
– Total costs: For the hardware and software that you defined in III-1, find price for each of them and document them in
your report. This cost will be the one-time development cost, which occurs before the system actually goes live (year 0).
Also, think about other costs that occur every year such as operation, maintenance and personnel costs, etc. To estimate
the costs for developing an IT system, say a mobile app, go to www.guru.com or www.freelancer.com to find out
“market price†for web/app developers.
– Benefits: Estimate benefits from the implemented systems.
– For costs and benefits that occur every year, think whether they will increase or decrease over time. Justify your
thoughts in report and reflect those increments in column D of the spreadsheet.
– Use the template (on BB) to conduct a Net Present Value (NPV) Analysis on your project for a period of 5 years.
– Calculate break-even point and return on investment (ROI) using the Excel template provided.
III-3. Implementation and the System Use
– Explain the implementation plan for your proposed system. For example, you can hire programmers, or make a contract
to use SaaS (Software as a Service like Amazon), or purchase a system package from Oracle or SAP, etc.
– Then, explain how you can make your end-users to use the system. How will you persuade users of the benefits of using
the system? Do you need to consider a training program, or a policy of mandatory or voluntary use, etc?
III-4. Risks and Critical Success Factors
– Explain any potential risks in implementing the system and briefly explain how to handle such risks.
– Explain critical success factors that you need to take into account for successful implementation: for example, user
training, easy of use of the system, low maintenance costs, easy access, and so on.
III-5. Ethical Considerations and Issues: Consider some ethical or legal issues regarding the new system implementation.
Additional Resources for Section III
Attached Files:
Guideline for Section III – Implementation.pdf (460.486 KB)
NPVAnalysis_Template.xlsx (17.587 KB)
NPVAnalysis_Example.xlsx (18.424 KB)
For detailed instructions on Section III report, see p.2 of “Guideline for Section III” document above. In this report, members must clearly indicate who is responsible for
which subsection. Members may receive different grades.
Use “NPVAnalysis Template.xlsx” as a template to conduct a cost-benefit analysis for your project, following the instructions below. “NPVAnalysis_Example.xlsx” provides an
illustrative example.
1. Conduct quick research to estimate the cost of implementing your IT solution. Briefly justify your estimation in the write-up. Note that “Development” cost (C6) is an
one-time sunk cost item, whereas the other three types of costs (C7:C10) are recurring.
2. Provide an estimate on the benefits of implementing your IT solution. The new solution should either increase the sales (C13), lower the costs (C14), or both. Similarly,
briefly justify your estimation in the write-up.
3. For recurring items (C7:09, C13:C14), you can set various annual incremental rates in column D.
4. Since we are evaluating the project using “present values”, you can set a moderate discount rate in D18.
5. In D29, enter the first year when the accumulative NPV turns positive, and the spreadsheet will calculate the break-even point automatically. For example, in
“NPVAnalysis_Example.xlsx”, the value to enter should be 4, since the value in K26 is negative, but it turns positive in L26, implying that the break-even point must fall
between year 3 and year 4 (3.11 in this example).
Hardware & Software Specifications
Hardware
Due to the rise of smartphones and tablets and the advances of cloud computing our solution is relatively
easy to implement. Solution 3 of hiring local agents to do spot checks and quality control would require
the use of a smart phone for each agent so that they could take pictures, and write brief reports etc on the
go. The regional offices would also require laptops for the regional managers so that they could compile
and analyze the data that we gather. In the larger zones we would need data storage equipment due to
using video, and lots of pictures our solution would then also require a great deal of storage. Rather than
using our own data storage due to the high cost of setting up our own system, it would make the most
sense to use the cloud storage services of an outside company like Amazon or Alibaba.
Software
Our company would develop specific software for our assessments. According to our specifications, this
software should be easy to use, web-based and available in many languages. For this we would need to
hire a group of programmers. It would need to be web based so that we could easily implement changes to
our process rapidly. In addition it should allow us to have the same high standard of quality that we would
like to see in Airbnb’s future while at the same time allowing us to vary our questionnaire by region as it
is likely that there will be cultural differences to account for in each region/country.
Costs and Benefit Analysis
Costs
In order to develop our application, a development cost of $90000 will be incurred, but this development
cost is a one-time expense. This cost is for Airbnb to hire professional programmers to upgrade both their
existing website and app to match our application. Such as, adding subpages for agents to upload the
visual media (photos and videos), and for customers to view additional photos or videos of the place that
is uploaded by the agents. This cost is fairly expensive for a one-time website designer, but since our
labor also varies depending on the countries and the minimum wage in that country, we estimate this cost
to be around $2,500,000.
We expect our on-going costs to increase, since the operating cost is the rent for the working space, and
rent expense is generally unpredictable, often shifts up and down, but for most of the times, rent expense
will increase. We expect the maintenance costs to increase since the maintenance costs include the
salaries for programmers, this expense usually increases to retain talented programmers. The personnel
costs, we expect this cost to decrease since we expect the agents to become more and more familiar and
skilled with the inspection jobs and the company can reduce the number of agents in order distribute
the work more reasonably and evenly.
Benefit
The benefit of our application is that our application has established an excellent reputation for Airbnb’s
Company, by showing customers that the company listens to their concerns and complaints. The reason
for customers to leave negative reviews are mostly due to the fact that the place does not match their
expectation, not because of the service Airbnb provided to customers. Through our application, customers
can have a better understanding of what the place they choose actually look like, they pay for what they
want. This will increase customer satisfaction with the company gradually, which will result in more and
more customers choose this company, which will increase Airbnb’s revenue in the long term. We expect
our operating revenue to increase by 5% per year because of the improvement of reputation and
satisfaction.
Year o
Year 1
Year 2
Year 3
Year 4
Year 5
TOTAL
Costs
Parameters (in thousands)
Costs
Initial Amount
Development
(90,000)
Operation
(5,000)
Maintenance
(750,000)
Personnel
(2,500,000)
Increment
One-time
2%
3%
-1.0%
Development
Operation
Maintenance
Personnel
Total
($90,000)
SO
SO
$O
($90,000)
$0
($5,000)
($750,000)
($2,500,000)
($3,255,000)
$0
($5,100)
($772,500)
($2,475,000)
($3,252,600)
SO
($5,202)
($795,675)
($2,450,250)
($3,251,127)
$0
($5,306)
($819,545)
($2,425 748)
($3,250,599)
$0
($5,412)
($844,132)
($2.401,490)
($3,251,034)
($16,350,360)
Benefits
Benefits
Increased Sale
Cost Reduction
3,150,000
4%
Increased Sale
Cost Reduction
Total
$0
SO
$0
$3,150,000
$0
$3,150,000
$3,276,000
$0
$3,276,000
$3,407,040
$0
$3,407,040
$3,543,322
$0
$3,543,322
$3,685,054
$0
$3,685,054
$17,061,416
PV Analysis
Discount Rate
3%
Discount Rate
1.000
0.971
0.943
0.915
0.888
0.863
Yearly PV of Costs
Cumulative PVC
($90,000)
($90,000)
($3,160,194)
($3,250,194)
($3,065,887)
($6,316,082)
($2,975,242)
($9,291,323)
($ 14,983,809
($2,888,115)
($12,179,438)
($2,804,370)
($14.983,809)
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