Robert Bell Anthony Helms Amanda Hollingsworth Seth Johnson Tiffany Pike A.J. Withem.

Robert BellAnthony Helms

Amanda HollingsworthSeth JohnsonTiffany PikeA.J. Withem

Agenda• Business Overview• Design Alternatives • Implementation Plan• Updated Work Plan• Lessons Learned• Summary

Business OverviewBusiness Information

• ADD-Life• Project GetFIT• Sponsor Name: Kim Allen

– Owner and Manager

ADD-Life is a locally owned and operatedfitness center. In comparison to franchises, you will get a more personal experience at ADD-Life.

Design Alternatives

• In House• Packaged• Outsourcing• Cloud Computing

Design Alternatives – In House

• The proposed systems will utilize the existing web server (off-site), 2 new workstations, and a new server (client database).

• Kim Allen is the senior management at ADD-Life. She is fully supportive of the proposed system, but ADD-Life does not have the in-house expertise required to take on a project such as this.

In HouseYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Benefits Increase Sales* $0.00 $16,200.00 $16,848.00 $17,521.92 $18,222.80 $18,951.71 Regained Loss of Revenue** $0.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00Reduced Payroll costs*** $0.00 -$713.54 -$713.54 -$713.54 -$713.54 -$713.54Total Benefits $0.00 $51,486.46 $52,134.46 $52,808.38 $53,509.26 $54,238.17in today's dollars $0.00 $48,572.13 $46,399.48 $44,338.93 $42,384.34 $40,529.91Costs One-time costs Servers $6,500.00 Workstations and Hardware $1,700.00 Software Licenses $5,000.00 Server Software $1,500.00 Development Labor $40,000.00 Total One-time costs $54,700.00

Recurring costs Hardware $0.00 $0.00 $0.00 $0.00 $0.00 Software**** $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 Operational Labor $27,180.00 $27,180.00 $27,180.00 $27,180.00 $27,180.00 Total Recurring Costs $0.00 $28,180.00 $28,180.00 $28,180.00 $28,180.00 $28,180.00Total Costs $54,700.00 $28,180.00 $28,180.00 $28,180.00 $28,180.00 $28,180.00in today's dollars $54,700.00 $26,584.91 $25,080.10 $23,660.47 $22,321.20 $21,057.74

Net -$54,700.00 $23,306.46 $23,954.46 $24,628.38 $25,329.26 $26,058.17in today's dollars -$54,700.00 $21,987.23 $21,319.38 $20,678.46 $20,063.14 $19,472.18NPV $48,820.40Assumed interest rate 0.06

Design Alternatives – Packaged

• If the packaged software alternative is selected, there would need to be a considerable amount of user training because users have limited computer skills, and would have to learn the new software.

• Kim is fully supportive of the proposed system, but is uncomfortable because management is unfamiliar with the packaged software, Microsoft SQL Server 2008 and Intuit QuickBooks Assisted Payroll, which would be required for this type of system.

PackagedYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Benefits Increase Sales* $0.00 $16,200.00 $16,848.00 $17,521.92 $18,222.80 $18,951.71 Regained Loss of Revenue** $0.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00Reduced Payroll costs*** $0.00 -$713.54 -$713.54 -$713.54 -$713.54 -$713.54Total Benefits $0.00 $51,486.46 $52,134.46 $52,808.38 $53,509.26 $54,238.17in today's dollars $0.00 $48,572.13 $46,399.48 $44,338.93 $42,384.34 $40,529.91Costs One-time costs Intuit Quickbooks Payroll $49.00 SQL Server 2008 $5,999.00 Workstations and Hardware $1,700.00 Development Labor $40,000.00 Total One-time costs $47,748.00



Design Alternatives – Outsourcing

• Dataprise, Inc. specializes in network installation, information security, Microsoft and Cisco support, and help desk administration. Due to their expertise, this would be a costly option for ADD-Life.

• Kim is fully supportive of the proposed system, but does not want to expose ADD-Life to the risks associated with outsourcing, such as she is unwilling to allow outside access to financial information.

OutsourcingYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Benefits Increase Sales* $0.00 $16,200.00 $16,848.00 $17,521.92 $18,222.80 $18,951.71 Regained Loss of Revenue** $0.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00Reduced Payroll costs*** $0.00 -$713.54 -$713.54 -$713.54 -$713.54 -$713.54Total Benefits $0.00 $51,486.46 $52,134.46 $52,808.38 $53,509.26 $54,238.17in today's dollars $0.00 $48,572.13 $46,399.48 $44,338.93 $42,384.34 $40,529.91Costs

One-time costsServers $6,500.00

Workstations and Hardware $1,700.00Software Licenses $5,000.00Server Software $1,500.00Outsourced Labor $80,000.00Training Cost $2,000.00

Total One-time costs $96,700.00



Design Alternatives – Cloud Computing

• If the cloud computing alternative is selected, ADD-Life will use EZFacility.

• Kim is fully supportive of the proposed system, and is in favor of using EZFacility because there would be little to no training. Since the software will be web-based, there is no need to for it to be installed locally on any of the workstations.

• Bulldog Solution Group recommends cloud computing using EZFacility. EZFacility is already proven to be user-friendly and since it is web based, requires little to no user training. The system will build a sense of community that ADD-Life strives to attain and increase overall satisfaction amongst the clients.

Cloud ComputingYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Benefits Increase Sales* $0.00 $16,200.00 $16,848.00 $17,521.92 $18,222.80 $18,951.71 Regained Loss of Revenue** $0.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00 $36,000.00Reduced Payroll costs*** $0.00 -$713.54 -$713.54 -$713.54 -$713.54 -$713.54Total Benefits $0.00 $51,486.46 $52,134.46 $52,808.38 $53,509.26 $54,238.17in today's dollars $0.00 $48,572.13 $46,399.48 $44,338.93 $42,384.34 $40,529.91Costs One-time costs Workstations and Hardware $1,700.00 Development Labor $5,000.00 Total One-time costs $6,700.00



Implementation PlanA. Preparing the Business

1. Conversion Strategy2. Contingency Plan

B. Preparing the Technology1. Hardware2. Software3. Convert data

C. Preparing the people1. Revised Management Policies

2. Cost Benefit Analysis3. Motivate adoption4. Conduct training

Preparing the Business

Conversion Strategy • Bulldog Solution Group has decided on a direct, simultaneous,

whole-system conversion. This decision was made based on the success of EZFacility at comparable gyms, and the relative ease of learning, use, and installation of the system. The methods chosen have the highest risk and the shortest time to implement. Though the risk of choosing these alternatives is high, Bulldog Solution Group feels that it is the most appropriate fit for this organization. The costs associated with direct and whole-system conversion are lower than alternative methods.

Preparing the BusinessContingency Plan

• In the event of a loss of connectivity, clients can still be granted access to the gym. Paper-based contracts have been and will continue to be kept on file at ADD-Life. Employees will pull the file of the member requesting access. The information present in the contract will confirm or deny the client’s access to the gym.

• In the event of a malfunction in the employee clock in/clock out system, employees will record their time manually on paper. The administrator will then manually record times into the payroll module of EZFacility.

• Employee payroll information will be backed up to a local machine in QuickBooks format in case of an extended loss of connectivity to the payroll module of EZFacility.

Preparing the Technology• Install Hardware

- Purchase of 2 Dell Workstations- Purchase of 1 ID card Printer from PlasticPrinters.com (an affiliate of

EZFacility)- Purchase Mini-Mag Magnetic Stripe Reader from EZFacility- Setup of Workstation- Setup of Printer and Stripe Reader

• Install SoftwareNo software will be installed on the any ADD-Life workstations. All software will be accessed via the web through the EZFacility website.

• Convert data

- Conversion of employee data from current payroll system to EZFacility

- Conversion of client data from file cabinet storage system to EZFacility

Preparing the PeopleRevised Management Policies

• Employees will be required to clock in/clock out daily, in comparison to completing a time log at the end of each biweekly pay period. Employees will not be able to modify existing entries to the time management system directly. Any change to previously entered time entry can only be performed by Kim Allen.

• Clients will be provided with personal ID card upon first visit after new system implementation. Clients must be instructed by the employee creating the ID card that entry will not be allowed without the ID card present.

• It is the responsibility of the employee that is working at the front desk workstation to scan in clients. The employee that was previously assigned the tasks of greeting clients and answering the phone will assume this responsibility. If a client is unable to enter due to error with the ID card or ID card reader, the employee must revert to the hard copy of their contract to verify entry.

• Management will print out biweekly reports from payroll software and store it for permanent records. This document will only be available through Kim Allen.

Preparing the PeopleCost Benefit Analysis

Tangible BenefitsIncreased sales:10% client increase with a 1% loss Lost revenue recovery: Estimated 10% of clients are using gym without valid

membership Payroll reduction:15 employeesEstimated 52 hours per year are “fudged” by employees52 hours a year at 7.25 = $377Time spent calculating payroll 104 hours a year ($336.54) Intangible BenefitsImproved client satisfaction:

Clients will better understand the benefits of membership at ADD-Life in comparison of other fitness centers in the area.

Improved management satisfaction:

Ability to track membership trends by clients

Tangible CostsOne time costs:Workstations and Hardware: $1,700Development Labor: $5,000Total one time costs: $6,700 Yearly recurring costs:EZFacility software: $1,200Operational Labor: $27,180Total Recurring Costs: $28,380 Intangible Costs:Dissatisfaction of clientsClients will now have to scan ID cards before allowed access to gym. Dissatisfaction of workersA worker will have to sit at the desk and scan membership ID cards.*A new worker will not need to be hired to scan membership cards. The employee currently working at ADD-Life’s front desk will assume this responsibility, along with their present duties (without pay increase).

Preparing the People

Motivate adoption

• Evident by the interviews conducted at ADD-Life and the new systems ease of use, management and employees are already motivated to adopt the new system. Clients, however, do not show the same level of enthusiasm for change. To resolve the issue, newly available promotions will be created emphasizing the new look of ADD-Life and will be sent to all current clients in attempt to motivate them. The new community forum will also be advertised to current clients to convince them of the added benefits of the new system.

Preparing the PeopleConduct training

• Kim Allen will be trained as the system administrator through computer-based training. She will be trained to enter payroll information into the system in the event of a connectivity issue or other problems with the payroll system. She will be trained to process and send reports to government agencies, and get the paychecks deposited into the bank.

• Classroom training will be provided to employees on clocking in and out using the new system. They will be taught what to do if they forget to clock in or clock out and how to handle system outages.

• Employees will also be taught how to create client cards, scan client cards for entry into the gym, and how to handle situations caused by the cards. This training will also be provided in a classroom.

• Kim Allen, trainers, and nutritionists will attend classroom training for forum moderation. They will be shown how to properly use and moderate a forum. They will also be given guidelines on proper forum decorum. This will cover how to make the forum more effective.

Work Plan

Work Plan (cont.)

Lessons Learned

Lessons Learned• Pick your group and sponsor before you even sign up for the class• Laptops are a must• Closed toe shoes are preferred… scents travel• Break up into smaller groups for work sessions

(And separate if you get easily distracted)• The Cenit is a nice meeting place, but there will often be karaoke,

beauty pageants, etc. in the Tonk. Enjoy the music/entertainment, or try the basement of the library

• Don’t keep tabs on group members, it’s not worth it• All group members should have unlimited texting• Don’t underestimate “quizzes” and tests• Keep meetings serious, but have a little fun too. Jokes and

sarcasm will keep you sane.• Be prepared to work hard

Summary• Business Overview• Design Alternatives • Implementation Plan• Updated Work Plan• Lessons Learned• Summary

Robert Bell Anthony Helms Amanda Hollingsworth Seth Johnson Tiffany Pike A.J. Withem.

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