1. Computer Systems Development Plan Welcome! Make yourself comfortable Presentation begins at 10:30am

2. Presentation Introduction to NetWorksIntroduction to NetWorks Fitness on the Fraser’s outlookFitness on the Fraser’s outlook Proposed solutionProposed solution Alternate solutionAlternate solution Financial analysisFinancial analysis Implementation planImplementation plan ConclusionsConclusions

3. Introduction NetWorks Development CorporationNetWorks Development Corporation –Small business consulting firm –Information technology specialists Core TeamCore Team –Benjamin Davidson –Jonathan Friesen –Roan Hidalgo –Samuel McCullough

4. FOF Expansion 5% annual customer base growth5% annual customer base growth –Further growth through partner gyms Snack bar opening immanentSnack bar opening immanent Expansion to second outlet expectedExpansion to second outlet expected –400 new clients – 80% increase –6 new staff – 60% increase 80% Burst in client base 60% Burst in work force

5. Primary Labour Expenses Scheduling staffScheduling staff Scheduling classes and trainingScheduling classes and training Registering clientsRegistering clients Signing in clientsSigning in clients Managing inventoryManaging inventory Synchronizing membership information with other gymsSynchronizing membership information with other gyms

6. Primary Alterations Registration databaseRegistration database –Instant account verification –Photograph identification –Synchronization with partner gyms Inventory databaseInventory database –Stock counters for automatic order generation Scheduling systemScheduling system –Automatically generated from availability and preferences of staff

7. Network Overview Till Area Office Desk Network Closet

8. Point of Sales System IBM SurePOS 300 ExpressIBM SurePOS 300 Express –Software-controlled cash drawer with fixed till –PS/2 and USB support for PC peripherals –1.2GHz CPU/256MB RAM/40GB HDD –17” LCD monitor –Handheld barcode scanner –Integrated thermal printer

9. Inventory Management Live stock updatesLive stock updates –Fewer manual inventory checks required Trend analysisTrend analysis –Determine appropriate on-hand quantities Order form generationOrder form generation –Automatically place orders with suppliers

10. Scheduling Celayix eTime XpressCelayix eTime Xpress –Automated scheduling based on ▪Skills ▪Qualifications ▪Seniority ▪Experience –Automatic payroll summarization –Network-accessible –Attendance management –Vancouver-based company

11. Accounting Simply Accounting Pro 2007Simply Accounting Pro 2007 –Departmental breakdowns –Payroll management –Microsoft Outlook contact integration –Packing slip generation

12. Alternative Additions Multimedia centresMultimedia centres –Commercial-free content –Aim at your target demographic Health History ReportsHealth History Reports –Graph and monitor weight gain/loss progress –Build advertising statistics Web AccessWeb Access –Advertise in-store merchandise –Reduce time spent handling routine questions

13. Cost Breakdown HardwareHardware –Two Dell PowerEdge 2900s with extended service plan and 1500VA UPS - $7200 –Dell OptiPlex 745 with extended service plan, 20” monitor, HP LaserJet 3600n - $4200 –Three IBM SurePOS 300 Express with monitor, barcode scanner, cash drawer - $8050 –AlphaCard Duplex ID Card System - $5000 –Nortel Secure VPN Router 1002 - $1800 –Dell PowerConnect 2708 switch - $200

14. Cost Breakdown SoftwareSoftware –Simply Account Pro - $240 –Microsoft Office Small Business 2007 - $700 –Celayix eTime Xpress - $4400 –Database, web, point of sales software - $0 LabourLabour –Hardware installation – 40 hours @ $100/hour –Software installation – 300 hours @ $100/hour

15. Forecasted Benefits 125 members/day125 members/day Reduced unpaid admissionsReduced unpaid admissions –6 unpaid visits daily = $8640 Reduced lookup timesReduced lookup times –50 seconds per member per day = $6250 Eliminated synchronization timeEliminated synchronization time –30 minutes per day = $1800 annually 500 members * 25%/day = 125 and growing 30 seconds standard lookup time 300 if problems occur 10% likelihood 30 + (300 * 10%) = 60 seconds 10 seconds for new system – save 50 50 * 125 members * 360 days * $10/hour =$6250 2 new customers daily 3 facilities to synchronize with 10 minute phone call each = 30 minutes 30 * 360 * $10/hour =$1800 2-way expense to sync with own facilities 125 members * 5% invalid = 6 unpaid 6 unpaid * $4 value = $24 $24/day * 360 days/year =$8640

16. Forecasted Benefits Reduced scheduling managementReduced scheduling management –4 hours per week = $5200 Automation of class enrollmentAutomation of class enrollment –2 hours per week = $2600 Automation of order preparationAutomation of order preparation –1 hour per week = $1344 Lower office supply consumptionLower office supply consumption –14000 records = $500 50% monthly membership = 3000 records 30 drop-ins/day = 10800 records Binders Thick stock paper Pens=$500 Original schedule Adjustments 4 hours per week * 52 weeks * $25/hour =$5200 Tracking class queues Adjustments by class demand 2 hours per week * 52 weeks * $25/hour =$2600 Inventory overview – 1 hour each Inventory count – 30 man-hours each (1 * 52) + (30 * 2) = 112 hours/year 112 hours * $12/hour =$1344

17. Net Revenue Stream Annual Benefits - $26300Annual Benefits - $26300 Initial Expenses - $66750Initial Expenses - $66750 –Hardware - $27400 –Software - $5350 –Labour - $34000 Annual Upkeep - $7000Annual Upkeep - $7000 –10% of initial cost

18. Implementation Schedule Weeks 1 – 2Weeks 1 – 2 –Acquire hardware and software –Interview partner gyms to determine protocols for member sharing program Weeks 3 – 6Weeks 3 – 6 –Install hardware and software –Create appropriate databases, templates, etc. Weeks 7-8Weeks 7-8 –Train staff and test implementation

19. Conclusions Expansion predicted to cause operating expense boomExpansion predicted to cause operating expense boom Benefits outweigh costsBenefits outweigh costs –Breakeven within three years –$19300 annual savings before expansion Implementation within two monthsImplementation within two months –Staff access required for less than two weeks –Physical access to building required for one month

20. Recommendations Invest in simpler proposed solutionInvest in simpler proposed solution –Clear, tangible benefits –Breakeven point in under three years Alternate plan still possibleAlternate plan still possible –Very little cost overhead vs. single-stage implementation –Can test base system before large investment

21. Q&AQ&A Thank you for your interest