HPS Order System

1 HPS Order System Author's Name Course Name/ Number University Name Due Date

2 HPS Order System Requirement List I have been privileged to be hired by Hullabaloo Party Supplies (HPS) as a system analyst to help them design an online ordering system. The design system should allow the customers to place their orders, obtain complete information about the customers, calculate the total order cost, including taxes, pay via credit card or PayPal, debit the ordered items from inventory, and offer multiple choices for shipping. HPS will receive $185,000 annually as a benefit for customers ordering using the system. The company will incur an initial cost of 275,000 and a recurring cost of $85,000 for maintenance. A 12% discount rate is assumed for a five-year horizon. The report will evaluate the financial feasibility of the system and propose recommendations for the development methodology. When developing an e-commerce system, it is critical to consider various criteria that will make it user-friendly, secure, and effective. The client registration page, which acts as the cornerstone of the whole system, is one of the most important components of this procedure. Collecting client information in a safe, ethical, and privacy-conscious manner is critical. According to Shandrow (2015), collecting consumer data has always come with privacy hazards. It may lead to happier consumers, lower client turnover, and more revenues if done effectively. As a result, while collecting client data, privacy should be a primary consideration. A clean homepage with prominent product displays is required to make the client registration page engaging and user-friendly. It is also critical to have menu selections that are thorough yet basic to avoid confusing or overcomplicating the menu. Algorithms should be in place to assist in displaying alternative goods that a consumer may be interested in based on their browsing history and prior purchases.

4 3.00 85,000.00 185,000 .00 0.71 60,501.32 131,679.35 $ 4.00 $ 85,000.00 $ 185,000 .00 $ 0.64 $ 54,019.04 $ 117,570.84 $ 5.00 $ 85,000.00 $ 185,000 .00 $ 0.57 $ 48,231.28 $ 104,973.97 Total $ 581,405.98 $ 666,883.60 NPV $ 85,477.62 ROI Ye ar Discounted Cost of Investment Discounted Profit Cumulative Cost of Investment Discounted Final Value RO I 0 $ 275,000.00 $ - 275000 0 - 100 % 1 $ 75,892.86 $ 165,178.57 $ 350,892.86 $ 165,178.57 - 53 % 2 $ 67,761.48 $ 147,480.87 $ 418,654.34 $ 312,659.44 - 25 % 3 $ 60,501.32 $ 131,679.35 $ 479,155.66 $ 444,338.78 - 7%

5 4 $ 54,019.04 $ 117,570.84 $ 533,174.69 $ 561,909.63 5% 5 $ 48,231.28 $ 104,973.97 $ 581,405.98 $ 666,883.60 15 % Break-Even Point Initial Cost $ 275,000.00 Yearly Cost $ 85,000.00 Yearly Profit $ 185,000.00 Break-Even Point (Fixed Cost/Contribution Margin) Break-Even Point 2.75 Based on the current parameters and the calculated values, implementing an online ordering system for Hullabaloo Party Supplies (HPS) would be a financially feasible and profitable venture. The calculation of the Net Present Value for the intended project shows that the venue is worth pursuing because it has a positive NPV. A positive NPV indicates that the business will be profitable. Based on the discounted value, the business will start making profits in the fourth year ( Marchioni & Magni, 2018) . The result was arrived at by subtracting total discounted benefits from total discounted costs and dividing the result by the total discounted costs. By the fourth year, the business will make a profit of 5%, and by the fifth year, the profit will rise to 15%. The Break-Even analysis shows that the system will break even in 2.75 years. The total discounted profit by the fifth year will be 666,883.60. With this understanding, the creation of the online ordering system must begin as soon as possible to optimize profit potential.

7 increments rather than the whole thing at once, we can start reaping the yearly advantage of $185,000 sooner. When it comes to finances, Agile also provides benefits for cost management. Agile's focus on continual development and adaptability allows for efficient management of the annual $85,000 maintenance cost. Agile permits tweaks and improvements as the system matures and new needs emerge without jeopardizing the project. This flexibility helps optimize long-term maintenance costs ( Al-Saqqa & AbdelNabi, 2020) . In addition, the Agile approach is a good fit for the ever-changing e-commerce sector. Agile allows for smoothly incorporating changes in client preferences, technology, and market trends. This guarantees that the online ordering system will always be competitive and useful. Conclusion Based on economic analysis show that setting up an online ordering system for HPS would be a profitable venture. In developing this system, I will use agile software development, protecting the privacy of customers' information and preventing bots from interfering with their purchases simultaneously. These measures will allow HPS to maximize its economic potential while also ensuring the safety and convenience of its online store for its clients.

8 References Al-Saqqa, S., Sawalha, S., & AbdelNabi, H. (2020). Agile software development: Methodologies and trends. International Journal of Interactive Mobile Technologies , 14 (11). Carr, T. (2020, December 1). Bots are buying up the season's hottest gifts before you can. Quartz. https://qz.com/1940136/how-bots-are-buying-up-the-seasons-hottest-gifts-before-you- can/. Gheorghe, A. M., Gheorghe, I. D., & Iatan, I. L. (2020). Agile Software Development. Informatica Economica , 24 (2). López-Alcarria, A., Olivares-Vicente, A., & Poza-Vilches, F. (2019). A systematic review of the use of agile methodologies in education to foster sustainability competencies. Sustainability , 11 (10), 2915. Marchioni, A., & Magni, C. A. (2018). Investment decisions and sensitivity analysis: NPV- consistency of rates of return. European Journal of Operational Research , 268 (1), 361- 372. Shandrow, K. L. (2015, February 8). 10 Questions to Ask When Collecting Customer Data. https://www.entrepreneur.com/article/231513.