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Specific, Measurable, Assignable, Realistic, Time-related 1 THEORACTICE TTA Studio Project Kim, HyungChoul Han, SangJin Hong, KangWoon DEC. 09, 2005

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Specific, Measurable, Assignable, Realistic, Time-related 2 THEORACTICE Project Overview High-level function diagram

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Specific, Measurable, Assignable, Realistic, Time-related 3 THEORACTICE Internationalization Issue DBGenerator ;should reflect the kinds of ;should reflect the kinds of databases that TTA want to test. databases that TTA want to test. While the kinds of databases that our product supports are limited, local industry may require other local industry may require other kinds of databases. kinds of databases.

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Specific, Measurable, Assignable, Realistic, Time-related 4 THEORACTICE Solution 1 Without considering client’s target nations, we design the product to support only three DBMS: Oracle, MS-SQL, and MySQL Additional development or customization is needed customization is needed,but low initial cost,but low initial cost

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Specific, Measurable, Assignable, Realistic, Time-related 5 THEORACTICE Solution 2 With considering client’s target nations, we intensively survey nations, we intensively survey the kinds of DBMS used in the nations. the kinds of DBMS used in the nations. Based on the survey result, we design and develop the product to support all kinds of DBMS in the result report. No additional development,but high initial cost,but high initial cost

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Specific, Measurable, Assignable, Realistic, Time-related 6 THEORACTICE Economic Approach–Assumption(1-2) 1) The life of the product is five years because the recent big changes of because the recent big changes of TPC-H occurred every five year on TPC-H occurred every five year on average. average. 2) Interest rate is 5% based on 3-yr government bond rate in Korea. 3-yr government bond rate in Korea.

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Specific, Measurable, Assignable, Realistic, Time-related 7 THEORACTICE Economic Approach–Assumption(3-4) 3) THEORACTICE team three members Each has equal development capacity Each has equal development capacity : the economic value of each member is : the economic value of each member is approximately 3,000,000 won per month, approximately 3,000,000 won per month, In addition, the present value of the wage is In addition, the present value of the wage is same for five years. same for five years. 4) In the case of solution (1), the number of the new kinds of DBMS the number of the new kinds of DBMS to be added annually is 0.6 on average. to be added annually is 0.6 on average. In fact, TTA(our client) gets 3 requests In fact, TTA(our client) gets 3 requests annually on average. annually on average. When the market share of Oracle, MS-SQL, and When the market share of Oracle, MS-SQL, and MySQL is almost 80%, MySQL is almost 80%, 3 * (1- 0.8) = 0.6 3 * (1- 0.8) = 0.6

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Specific, Measurable, Assignable, Realistic, Time-related 8 THEORACTICE Economic Approach–Assumption(5-6) 5) In the case of solution (2), the number of the kinds of DBMS the number of the kinds of DBMS that DBAuditor supports is seven that DBAuditor supports is seven because some existing tools because some existing tools support those seven kinds of support those seven kinds of DBMS and TTA’s target nations DBMS and TTA’s target nations are the same as the are the same as the existing tools’ target nations. existing tools’ target nations. 6) The cost is calculated largely according to human resource used.

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Specific, Measurable, Assignable, Realistic, Time-related 9 THEORACTICE Economic Approach–Assumption(7-8) 7) The time for three members to comprehend one DBMS and implement DBGenerator to support the DBMS is one month. By estimation based on informal historical data of each member By estimation based on informal historical data of each member 8) TTA earns 10,000,000 won per one DBMS test. And, as mentioned on Assumption 4, there are 3 requests annually on average.

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Specific, Measurable, Assignable, Realistic, Time-related 10 THEORACTICE Economic Approach – Assumption(9) 9) The time for three members to concentrate on software architecture is full one month. Next spring semester is for 5 months and the portion of studio project is 20%. In addition, for next semester, we will make only software architecture. For more extensible and robust architecture, 20 % of total time will be added; that is, 1.2 month for more extensible and robust one.

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Specific, Measurable, Assignable, Realistic, Time-related 11 THEORACTICE Analysis – ROI (SOLUTION1) Earning per year = 3 * 10M = 30M (won) = 3 * 10M = 30M (won) Initial Investment = 3 * 10M (for 3 DBMS support) = 3 * 10M (for 3 DBMS support) + 1.2 month / person * 3M / month + 1.2 month / person * 3M / month * 3 person (for more extensible and * 3 person (for more extensible and robust architecture) robust architecture) = 40.8M (won) = 40.8M (won) Additional Investment each year : 0.6 * 3M * 3 person each year : 0.6 * 3M * 3 person = 5.4M (won) = 5.4M (won)

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Specific, Measurable, Assignable, Realistic, Time-related 12 THEORACTICE Analysis – ROI (SOLUTION1) YearTotal Benefit (in PV)Total Net Income (in PV) Total Investment (in PV) ROI 000 – 40.8M = -40.8M 40.8M 130M/(1.05) ¹ = 28.6M 28.6M – 46.2M = - 17.6M 40.8M + 5.4M = 46.2M -0.38 228.6M + 30M/(1.05) ² = 55.8M 55.8M – 51.6M = 4.2M 46.2M + 5.4M = 51.6M 0.08 355.8 + 30M/(1.05) ³ = 81.7M 81.7M – 57M = 24.7M 51.6M + 5.4M = 57M 0.43 4 81.7M + 30K/(1.05) ⁴ = 106.4M 106.4M – 62.4M = 44M 57M + 5.4M = 62.4M 0.71 5106.4 + 30K/(1.05) 5 = 129.9M 129.9M – 67.8M = 62.1M 62.4M + 5.4M = 67.8M 0.92

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Specific, Measurable, Assignable, Realistic, Time-related 13 THEORACTICE Analysis – ROI (SOLUTION2) Earning per year = 3 * 10M = 30M (won) Total Investment = 7 * 10M (for 3 DBMS support) = 7 * 10M (for 3 DBMS support) + 1 month / person * 3M / month + 1 month / person * 3M / month * 3 person (for architecture) * 3 person (for architecture) = 79M (won)

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Specific, Measurable, Assignable, Realistic, Time-related 14 THEORACTICE Analysis – ROI (SOLUTION2) YearTotal Benefit (in PV)Total Net Income (in PV) Total Investment (in PV) ROI 000 – 79M = - 79M 79M 130M/(1.05) ¹ = 28.6M 28.6M – 79M = -50.4 79M-0.64 228.6M + 30M/(1.05) ² = 55.8M 55.8M – 79M = - 23.2M 79M-0.29 355.8 + 30M/(1.05) ³ = 81.7M 81.7M – 79M = 2.7M 79M0.03 4 81.7M + 30K/(1.05) ⁴ = 106.4M 106.4M – 79M = 27.4M 79M0.35 5106.4 + 30K/(1.05) 5 = 129.9M 129.9M – 79M = 50.9M 79M0.64

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Specific, Measurable, Assignable, Realistic, Time-related 15 THEORACTICE Analysis – Cost/benefit (SOLUTION1) YearTotal Costs (in PV)Total Benefits (in PV)Cost/Benefit 040.8M0N/A 146.2M28.6M1.62 251.6M55.8M0.92 357M81.7M0.70 462.4M106.4M0.59 567.8M129.9M0.52

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Specific, Measurable, Assignable, Realistic, Time-related 16 THEORACTICE Analysis – Cost/benefit (SOLUTION2) YearTotal Costs (in PV)Total Benefits (in PV)Cost/Benefit 079M0N/A 179M28.6M2.76 279M55.8M1.42 379M81.7M0.97 479M106.4M0.74 579M129.9M0.61

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Specific, Measurable, Assignable, Realistic, Time-related 17 THEORACTICE Analysis – Synthesis Solution1Solution2Preferable ROI0.920.64Solution1 C/B0.520.61Solution1

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Specific, Measurable, Assignable, Realistic, Time-related 18 THEORACTICE Conclusion Based on the result, solution 1 is more desirable solution 1 is more desirable (solution1’s ROI > solution2’s ROI solution1’s cost/benefit ratio solution1’s cost/benefit ratio < solution2’s cost/benefit ratio) < solution2’s cost/benefit ratio) In terms of both ROI and In terms of both ROI and Cost/benefit analysis, Cost/benefit analysis, solution 1 is better than solution 2. solution 1 is better than solution 2.

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Specific, Measurable, Assignable, Realistic, Time-related 19 THEORACTICE Thank You

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