Business Information Systems
AIEN-SOU Semester 5, 2011
Assignment 3 - Business Project
Due Date and Time:
8:00 pm (Shanghai-time) Friday, 2
30% (of Total Marks for the unit)
a minimum of 3 students and a maximum of 4 students.
Students are free to choose the group they join, but please speak to
the others you plan to join with before joining a group. A group sign-
up sheet is available from the Assessment page of the KXO101
Students who have not signed into a group by Friday, 11
2011, will be automatically assigned into a group by the lecturer
Each student within the group will receive the same mark, however,
active participation and equal contribution is required from each
member of the group. Student who do not participate and / or
contribute to the assignment will not be included in the group’s mark.
If there is an issue with a student or students not participating and / or
contributing to your group, please contact your lecturer.
Telifone Solutions operates a call centre in Teaklands, Tasmania.
Koolplex PBX, which is Telifone Solutions’ main information system, is a 10 year old
Customer Relationship Management (CRM) system. Although when it was purchased
Koolplex PBX was the state of the art in CRM systems, it now requires a lot of maintenance
and the long periods of downtime is frustrating the Telifone staff and annoying their
customers. Telifone currently have a maintenance only contract with Koolplex that costs
them $125,000 per year.
The Chief Executive Officer (CEO) and the Chief Information Officer (CIO) have had
discussions with Koolplex about updating their CRM from Koolplex PBX to Koolplex
IXL, the latest version of Koolplex, which would cost Telifone $1,250,000. This cost takes
into account any value of their current system, and includes a maintenance fee of $110,000
per year for the next 3 years.
Koolplex would also supply a training program for the call centre staff and this would cost
The Koolplex IXL system and training program will cost $1,425,000, which could be
financed using $750,000 the company has budgeted for the replacement, and the balance
needing to be borrowed from their bank at 6.5% annual interest with the repayments
spread over 3 years.