SCENARIO - SCENARIO There was a team meeting during the...

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SCENARIO There was a team meeting during the first week at your new job as a help desk support analyst. The Helpdesk Manager explained to everyone that there were problems with the current project to upgrade the customer relationship management (CRM) system. The project objective is to upgrade the in-house bespoke system to a new Microsoft Dynamics system using an outside technology consulting vendor. This upgrade would increase the capacity of the company to handle more clients. Once the new system is implemented, it is estimated that the company revenue could increase by approximately £90,000 at the end of the first year. o The project was planned for 6 months and has a budget of £30,000 for labour and licensing fees. Now , at the end of 5 months , £27,000 has been spent and there is only a 30% probability of the project completing on schedule. If the project does not complete on schedule, the manager estimates that the project would require an additional 3 months and £9,000 of labour costs. There is only a 5% probability for the project to fail even after the extra time and money. o Another option is to cancel the project with the outside technology consulting vendor and incur £1,500 fees to terminate the contract. This approach would save labour costs by having the in-house staff finish the project. However, the manager estimates that this approach would take 6 months because the in-house staff need time to learn the
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This note was uploaded on 02/28/2012 for the course ECO 4701 taught by Professor Ahmed during the Spring '11 term at Andhra University.

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SCENARIO - SCENARIO There was a team meeting during the...

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