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Create a time-phased budget for implementing software. Identify the primary cost drivers.

Practice problem- no grade

Revise Excel Spreadsheet (attached) to a time-phased budget for implementing software. Identify the primary cost drivers.

Do not need to worry about depreciation of the software. Need to focus on understanding what the costs are, and when those costs will be incurred during the implementation process. Need the total cost for "startup."

When calculating the people (indirect) cost.... need to not only account for the time the 12 individuals will be trained, but also need to realize that the 2 people being trained by the vendor will be training the other 10 there is additional people time needed to account for.

The Managed Care Department of the hospital has decided to implement a Case Management System called Ultima. The cost of the software is $450,000. This includes the cost of the software, software configuration, conversion of existing data into the software database, training for 2 people, and on-site resources for 2 days during the initial installation and go-live. A total number of 12 users will need training to operate this software. Training time is 2 days per person. This will be accomplished by the 2 people in-house that are trained by the vendor. This software system will require the purchase of 3 servers ($1,250 each) that will be configured in a cluster to support the department's request for redundancy and failover. In addition, backup software for each server is $1,500. The average salary of an IT worker is $91/hour. You will need 1 programmer (40 hours), 1 database manager (65 hours), 1 project analyst (150 hours), 1 operations analyst (20 hours), 1 interface manager (20 hours), and 1 networking analyst (10 hours).

See attached chart to change and re-post


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