Flash Research Assignment: SharePoint
You are the CTA of a small but rapidly growing consulting firm that specializes in IT project
management. You have a team of 10 PMPs who are currently billing out 75% of their time
(1,500 hour/year out of a 2,000 hour work year) at an average rate of $175 per hour. Business is
good and you actually have a considerable backload of work.
Your PMPs spend a lot of time struggling with the management of documents related to their
projects. From sharing documents with the client and each other to managing multiple versions
of the same document, your PMPs are spending a lot of time managing documents and not
creating value for your clients. You do not bill you clients for this time! You believe that an
investment in SharePoint will increase the productivity of your team of PMPs and enable them to
increase their billable hours by 400 hours per year (each PMP will bill out another 400 hours per
year) which will enable you to just about eliminate your backlog of work and increase your
revenue.
One of your PMPs is actually also an expert in SharePoint. He has worked up an estimate of
$100,000 for the purchasing of hardware and software plus an additional 18% for annual
hardware/software maintenance. In addition, this person will need to spend 10% of their 1900
billable hours administering and supporting this system and will not be able to generate revenue
as a PMP for this portion of their time.
Prepare a paper for the CIO which describes this technology and describes the business case for
making investments in this technology. This organization always looks at investments over a 3year period.
The maximum length of the body of this paper is 1 page. Additional pages may be used for
optional diagrams and required references.
Anthony DeMaio
Mart Doyle
MIS 2501
October 9, 2014
Flash Research Assignment: SharePoint
Our company will increase revenue $1.84 million over a three year period by investing in
SharePoint. Microsoft Share Point is a web application that will allow our company to organize,
share, and access information more efficiently throughout the business. Implementing SharePoint
will solve the PMP’s current time problem with managing and sharing documents, resulting in
increased total billable hours.
Microsoft SharePoint is an online server that collaborates an entire company’s
information into a single system. Working within a single system allows for easy access and
transfer of documents throughout the entire business. The system allows for controlled
admittance to documents, reducing time spent by PMP’s on managing and sharing information.
Solving this time problem will improve billable hours generated by each employee from 1500 to
1900 per year, resulting in increased revenues.
Investing in SharePoint will cost us a total of $253,750 over a three year period for
hardware and maintenance cost, including a 10% cost for PMP administering and support. The
rise in PMP’s billable hours will increase revenue by $2.1 million during the same time period.
In three years, our company will receive a total net benefit of $1.84 million by investing in
Microsoft SharePoint.
Excel
Year 1
Hardware/Software $ 100,000.00
Maint
$ 18,000.00
10% of one person $ 33,250.00
Total costs
$ 151,250.00
Benefits
Increased Rev
Total benefits
Year 2
$
$ 18,000.00
$ 33,250.00
$ 51,250.00
Year 3
$
$ 18,000.00
$ 33,250.00
$ 51,250.00
Total
$ 100,000.00
$ 54,000.00
$ 99,750.00
$ 253,750.00
$ 151,250.00 $ 51,250.00 $ 51,250.00 $ 253,750.00
$ 700,000.00 $ 700,000.00 $ 700,000.00 $ 2,100,000.00
$ 548,750.00 $ 648,750.00 $ 648,750.00 $ 1,846,250.00
Net Benefits
Rev at 1900 hours
Rev at 1500 hours
Total
Year 1
$ 3,325,000.00
$ 2,625,000.00
$ 700,000.00
Year 2
$ 3,325,000.00
$ 2,625,000.00
$ 700,000.00
Year 3
$ 3,325,000.00
$ 2,625,000.00
$ 700,000.00
Total
$ 9,975,000.00
$ 7,875,000.00
$ 2,100,000.00
Workcited
MacComascaigh, Mike. "SharePoint Key Initiative Overview." Gartner. N.p., n.d. Web. 9 Oct.
2014.
Murphy, Jim. "Redefine Microsoft's Role in Your Web Strategy as SharePoint Moves to the
Cloud." Gartner. N.p., n.d. Web. 9 Oct. 2014.
"The New Way to Work Together." SharePoint – Team Collaboration Software Tools. N.p., n.d.
Web. 9 Oct. 2014.