Wk 6 – ROI Of Implementation
ROI is one of the most common financial measuring tools. Being able to calculate the ROI or expected ROI allows us to make the best decisions about where to invest our funds for the most return on our investment over time.
Using the numbers in Course Scenario: Phoenix Fine Electronics, which was provided in Week 1, calculate the estimated ROI for an ERP implementation.
Calculate the estimated productivity as a result of implementing ERP system.
Note: If you need help calculating ROI, review this weeks activity, Lynda.com: Content Marketing ROI by Honigman.
Complete your business case to present to the management team of Phoenix Fine Electronics. Incorporate your analysis and instructor feedback from the previous weeks assignments. Include the following in your final business case:
High-level overall business needs and desired outcomes
Scope of project
Measurable values of new system
An explanation of the strategic alignment
Estimated ROI and productivity (from Part 1)
Course Scenario: Phoenix Fine Electronics
Perspective: How to Bring Val
Read the following scenario and refer to it when you complete the weekly assignments:
Week 1: Business vs. IT Strategy Presentation
Week 2: System Recommendation
Week 3: Measurable Values
Week 4: Strategic Sourcing Plan
Week 5: SWOT Analysis
Week 6: ROI Calculation and Business Case
Phoenix Fine Electronics (PFE) is a medium or mid-sized company but growing rapidly each year selling
technology products to retail consumers. They have an annual revenue of $15 million in sales. PFE started with
one store but has grown to 25 stores and has expanded into a second state.
PFE has one store in a town with a population of 100,000, and three stores in towns with populations exceeding
200,000. The goal of the company is to continue expansion into an additional 3 neighboring states within the next
5 years. PFE wants to utilize the same population numbers to determine the number of stores it should open. It
would also like a marketing firm to do an analysis of each town that meets the population criteria to determine the
best cites in which to open new stores.
Each store employs a store manager and an IT manager who both directly report to the Chief Executive Officer
The current IT plan for each store is to utilize technology to support the store; increase sales; track inventory;
secure store customer data; perform payroll; and report all sales, inventory, and payroll data to the main office.
The IT manager is responsible for managing the IT systems, making decisions on what technology and software
are needed, and implementing the systems while ensuring accurate reporting to the main office. The store
manager is responsible for all staffing, inventory, and sales functions within the store.
With expansion and the acquisition of smaller independent stores, the CEO is worried about how department and
customer data can be aggregated to allow the company to make better, timely business decisions. Even with such
a wide footprint the company must ensure unique, outstanding customer service and provide value to the
consumer base. The CEO lacks IT experience and has been hesitant to adopt the suggestions of the store and IT
managers, which is to give the company an online presence and advance the company into national competition
with other consumer electronics stores.
The CEO hired a Chief Financial Officer (CFO) and Chief Information Officer/Chief Technology Officer (CIO/CTO).
The CFO will oversee the company finances for the expansion. The CIO/CTO will oversee the consolidation of the
disparate systems and technologies that exist between the stores, streamline the information gathering and
reporting to the main office, and develop an online presence that will catapult the company into a competitive
position on a national level.
Your job is to help the new CIO/CTO move PFE toward the future.