2015_03_26 ISM Flagship Final Business Case PDF

FLAGSHIP SOLUTIONS GROUP, INC.
980 NORTH FEDERAL HIGHWAY, SUITE 420
BOCA RATON, FL. 33432
BUSINESS CASE PROJECT
XYZ BANK INC.
Dr. J. Goo
Florida Atlantic University
ISM 6026
MARCH 26, 2015
Courtney Fenwick
Brendan McCauley
Carl Schachter
Eric Risi

Business Case Project
XYZ Bank Inc.
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
1.1. Issue
1.2. Anticipated Outcomes
1.3. Recommendation
1.4. Justification
2. BUSINESS CASE ANALYSIS TEAM
3. PROBLEM DEFINITION
3.1. Problem Statement
3.2. Organizational Impact
3.3. Technology Migration
4. PROJECT OVERVIEW
4.1. Project Description
4.2. Goals and Objectives
4.3. Project Performance
4.4. Project Assumptions
4.5. Project Constraints
4.6. Major Project Milestones
5. STRATEGIC ALIGNMENT
6. COST BENEFIT ANALYSIS
7. ALTERNATIVES ANALYSIS
8. APPROVALS

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1. EXECUTIVE SUMMARY
1.1. Issue
The scope of work for XYZ Bank to be provided by Flagship Solutions Group (FSG) crosses several
multi-functional regions of IT. Due to the separation of physical banking server processor locations by
distance and three distinct business divisions (Wealth Management, Life Insurance, and Bank Operations),
the segmentation and corralling of data and information is prevalent at XYZ Bank. The complex nature of
the tasks differentiated by compartmentalized job criteria and expectations, combined with the need for
top- flight security and data recovery capabilities (physical and virtual), necessitates on the job experience
and a positive track record of handling these disaster scenario issues. XYZ Banks numerous business
departments have become fragmented siloes, requiring security (physical and virtual), traceability,
accountability, and expert handling for sensitive client financial information. XYZ Bank desires the
development and maintenance of reliable back-up systems that can operate during, and quickly recover
from, a hurricane or other similar natural/man-made disaster. No down time, or at minimum a quick
recovery, is crucial in the banking industry. The bank also requires significant system optimization
services, data collection & correlation, virtual dashboard creation for ease of executive and managerial use
as the business scales up, and complete aggregation of all collected and stored information for the
formation of a common data pool on the cloud. This data pool needs the ability to be accessed
simultaneously from many locations at once, XYZ believes the cloud provides an optimal platform from
which to manage this problem. XYZ must utilize efficient operational processes for its system
maintenance and to monitor the repair/trouble ticket network that is constantly called upon in the banks
day to day operations. XYZ believes that the cloud will provide the perfects mobile platform to
disseminate selected data metrics which may signal business opportunities within the information
currently scattered throughout its fragmented systems. XYZ Bank needs the experience of field experts
and has minimal time for recruiting, training, and maintaining (or expanding) a new IT workforce as no
CIO currently exists within the company. Furthermore, a refinement and installation of processes for
ticket/problem resolution is necessary to continue with normal daily operations as the business grows and
scales up and to ensure that trouble tickets are handled and processed in a timely and acceptable manner.
1.2. Anticipated Outcomes
XYZ Bank will benefit from FSG, a tier 2 IBM partner, through the implementation of proprietary IP,
strategic IBM partnerships, access to IBM Global Services (IGS), creation of an interactive dashboard,
managed troubleshooting services (SDC “Help Desk”), system optimization, and proprietary IP. “FSG can
provide you with the best of IBM while shielding you form the worst”-Doug Paton, CFO of FSG.
Through the use of “Infralytics”, a term coined and copy-written by FSG, XYZ will have the best that
technology has to offer in the form of data aggregation and desired metric selection. Infralytics is the
systematic computational analysis of the basic physical and organizational information technology
structures needed for the operation and continuation of an enterprise, resulting from the analysis of data or
statistics. FSG software will find and utilize the specific data metrics requested by XYZ Banks’
management and business divisions, to help optimize business processes and to, in turn, more efficiently
serve the customers of XYZ Bank. Optimization will serve to increase revenues, bank reputation, and their
industry standing.
FSG will optimize XYZ’s current infrastructure, systems, and oversee the changeover to updated and
more efficient hardware from IBM/Lenovo. Through monitoring and Managed Services, FSG will
configure, deploy, and test all hardware, operating system software, and applications (Solution
Components) as well as apply routine and critical maintenance requirements for the entire system.
Through Engagement Management, Incident Management, Problem Management, Systems Management,
Ongoing support, and regular Reporting FSG will implement and oversee all critical and ancillary system
requirements for the life of the contract. Service Desk implementation by FSG will streamline, monitor,

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log, and track tickets & dispute resolution solutions. The system will ensure quality and the timeliness of
conflict resolution within XYZ banking systems (Wealth Management, Life Insurance, and Bank
Operations). FSG will also oversee all security, back-up systems management, and inter-silo data
aggregation for dashboard creation and information dissemination.
1.3. Recommendation
Through the use of Cloud based systems, FSG will aggregate all silos of data into one pool from which to
apply bots, applications, and tools to glean information for metrics desired by management for custom
dashboard displays. FSG utilizes United States government guarded server rooms in dedicated locations in
Miami exploiting Terra-Mark’s fortified network internet crossroads connections to ensure the safety of
data (physical and virtual) as well as timely restoration of services in the event of a disaster. FSG’s
experienced personnel will facilitate a quick and effortless changeover from XYZ’s current inadequate
legacy systems to IBM/Lenovo based hardware and operating platforms which will facilitate the cloud
based network that XYZ desires. FSG will implement a tested Help Desk 24x7 (Service Delivery Center;
SDC), tech support, and back-up systems for archiving & contingency planning will ensure XYZ
operations stay efficient and up to date. Through regular scheduled maintenance, on-boarding, and
incident reporting FSG will keep XYZ’s management abreast of all key issues at regular pre-determined
intervals as well as by addressing key issues on a request basis. Shifting the responsibility and
accountability of IT, archives, and information aggregation to FSG will free up XYZ management to focus
on bank operations and key issues ensuring an increased operational efficiency due to management’s
involvement in key business details. The freedom provided through accountability and peace of mind,
with FSG covering 3 locations with 6 distinct servers across 3 co-locations, supporting Capital Wealth
Management, Life Insurance, and Bank Operations will allow XYZ to save time, money, and to lower
operational costs thereby making the firm more profitable. By clearly stating objectives and through
achieving pre-set milestones, the project is ensured to be operational per agreed upon scheduling and
timeline constraints.
1.4. Justification
Undertaking this project through the utilization of FSG’s skills would allow XYZ Bank to realize both
significant short and long term savings through items such as hardware and software upgrades, data and
hardware migration oversight, implementation of proprietary applications, system development &
management, system maintenance & reporting, and a sizable reduction in overhead costs. The overhead
will be reduced through cloud based storage and networking models with proven processes and systems
supported by IBM. Another way is through the reduction of selling and general administrative expenses
by supplying all the necessary manpower, which saves XYZ the costs of recruitment, training, bonuses,
downtime, increases in management staff, and other expensive aspects associated with employee
procurement. The projected initial costs for XYZ Bank will include the following: initial on-boarding fee
and monthly contract charges totaling the entire agreed upon amount over the duration of 36 months. This
project represents the most savings in time and cost amongst the various alternate options. Choosing not to
implement FSG’s recommendations or going with a different, less experienced, or unsupported company
would cost XYZ Bank exponential amounts of time, money, and operational efficiency. FSG has
experienced double digit growth since its inception, with a 40% increase last year alone. FSG has the
experience, the knowledge, and the technical capabilities to streamline XYZ Bank’s system migration
with the greatest ease and least intrusive impact to normal company operations.

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Initial estimates for the project are:
Costs:
● On-Boarding Costs - $30,000
● Monthly Service Charges - $20,000 per month (36 months)
● 3-year Contract Totaling - $750,000
Savings:
● Migration assistance from existing infrastructure to IBM/Lenovo infrastructure - $283,495
● SDC (24x7) implementation resolves the root cause of an issue to lessen the impact of problems
created within the IT infrastructure and to inhibit the recurrence of such issues. - $471,744
● Archival and security services - $242,000
● CIO – Managerial oversight, accountability, and reporting - $450,000
● Manager under CIO - $270,000.00
● Reduce employee (technician) overhead expenses - $250,000
Net Savings - $1,217,239.00
2. BUSINESS CASE ANALYSIS TEAM
The following individuals comprise the business case analysis team. They are responsible for the analysis and
creation of the project business case.
 Courtney Fenwick
 Eric Risi
 Carl Schachter
 Brendan McCauley
3. PROBLEM DEFINITION
3.1. Problem Statement
Flagship Solutions group plans to address XYZ bank’s physical and virtual security issues associated with
out of date and inefficient legacy systems. FSG will provide a software service that includes back-up of
client data, monitoring agents, Service Desk, and administrative utilities. Currently XYZ bank’s wealth
management, life insurance, and bank operations information is consolidated in silos where FSG intends to
convert the fragmented information into a common aggregate program under a proprietary IP code on the
cloud.
3.2. Organizational Impact
The Flagship Solutions Group project will impact XYZ bank in several ways. Implementation of the XYZ
bank project by Flagship and the roles and responsibilities associated with:
Engagement Management, Incident Management, Problem Management, Systems Management and
Ongoing Support, Reporting, Change Management, and the On Boarding processes.

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Engagement Management: The role of an Engagement Manager will be created by FSG for ensuring the
setup of both operational and technical processes covered in the statement of work (SOW). This position
will be the point of contact to ensure the project parameters are met with regular meetings encompassing
open issues and environment reports.
Implementation of the Service Delivery Center (“SDC”) Service Desk will give XYZ bank a single central
location for any and all system issues and service tickets. The Service Desk also provides an interface for
other activities such as: maintenance contracts, software licenses, service-level management, configuration
management, and availability management.
Incident Management: Normal service operations will be supplemented with incident management,
ensuring optimized levels of service quality and maintenance to insure business continuity. Addressing
incidents will be prioritized by the degree of severity and duration.
Severity Levels are categorized as follows:
A-Critical: A work stoppage has been cause or has the ability to cause a stoppage of essential business
functions. Response time is within an hour of occurrence.
B-High: No work stoppage has occurred but the user’s ability to perform normal business operations have
occurred. A working alternative is not available and response time will be within 2 hours.
C-Medium: No work stoppage has occurred but has impaired the user’s ability to perform normal business
operation. A working alternative is available. Response time is within 8 hours.
D-Low: Service has not been impaired or disrupted and is classified as more of an inconvenience.
Response Time is within 24 hours.
Problem Management: Application of problem management resolves the root cause of an issue to lessen
the impact of problems created within the IT infrastructure and inhibit the recurrence of such issues.
Problem management is more preventative whereas incident management intends to return service back to
normal operational levels as fast as possible. This process is also designed to reduce the quantity and
frequency of incidents. FSG will evaluate all incidents with the intention to uncover underlying issues on a
monthly basis.
Systems Management and Ongoing Support: FSG will provide a continual system administration,
problem identification, technical assistance and management support services for the new datacenter
environment. These services include the monitoring and logging of operational events, alerts, and defined
system thresholds.
IT Infrastructure: XYZ Bank’s IT Infrastructure monitoring and management will be delivered with the
implementation of the Service Delivery Center (“SDC”). This system is maintained constantly with
manual health checks and monitoring processes while communicating with specified systems and report
conditions. This updating of IT monitoring and management will not only increase XYZ Bank’s security,
but its level of efficiency will be increased exponentially.
Response Management and Reporting: FSG will construct regular reports via the Engagement Manager
to review any changes and improvements that require to be made to the existing reporting systems and
developments. Such reports will have the ability to identify any trends, track recurring problems and
interpret technician notes.

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Conversion Management: should XYZ Bank require any changes within the newly designed operations
environment the following protocol will take place:
-XYZ Bank will complete a Project Change Request (“PCR”) that will establish the need for any
alterations. The PCR will state the change, reasons and overall effects on monitoring, system management
and or the monthly price of services provided.
-Both XYZ Bank and FSG will review and agree to any proposed changes recommended for further
research or to reject the proposal.
3.3. Technology Migration
Phase I: Project Acceptance
Initial meeting with XYZ Bank to understand and address current system issues at hand. Flagship will
present statement of work to XYZ to detail all general terms and delivery of solution components.
Phase II: Hardware/Software agreement
FSG will implement IBM platform systems as an upgrade over XYZ Banks’ legacy systems. This
includes the pre-installation of any hardware or managed devices in association with the delivery of
service.
Phase III: Hardware/Software Installation …
30 days
Phase IV: Dashboard Configuration/Implementation …
60 days
Phase V: Monitoring/Assessment/Evaluation/Monitoring
Monitoring of incidents will be categorized by severity level that will determine the priority of addressing
issues. 90 days and forward to contract renewal or cessation.
4. PROJECT OVERVIEW
4.1. Project Description
FSG shall provide systems monitoring and remote administration services for the Customer’s data centers and
computing environments. The detail of these services is contained below, and consists of:
 Engagement Management
 Incident Management
 Problem Management
 Systems Management and Ongoing Support
 Change Management
 Reporting
 On Boarding

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1. Engagement Management
a. Engagement Manager – FSG will assign a specific Engagement Manager responsible for the setup of all the
operational and technical processes encompassed in the Statement of Work (SOW). This resource will be
the primary point of contact to ensure that the SOW terms are met. This includes a regular review of open
issues and environment reports.
b. SDC Help-Desk – Provides a single central aggregation point for any and all system alarm condition and
corresponding trouble tickets. The Service Desk reviews, logs, and manages all incidents, service requests
and provides an interface for all other Service Delivery Center (SDC) processes and activities. Throughout
the process, the Customer is informed at regular intervals about their incidents’ status. The Service Desk
not only handles incidents, problems, and questions but also provides an interface for other activities such
as change requests, maintenance contracts, software licenses, service-level management, configuration
management, and available management.
2. Incident Management
Incident Management restores normal service operation as quickly as possible and minimizes the adverse
effect on business operations, thus ensuring that the best possible levels of service quality and service
availability are maintained.
a. Escalation
If an incident cannot be resolved by Level 1 support within the agreed time, then more expertise or
authority will become involved as a result of the escalation. The net effect of escalation is to raise the
priority of the incident. The escalation of incidents depend upon:
 Degree of severity of an incident
 Duration of an incident
The priority of a call is determined by its severity. All incidents are handles in priority order. The
escalation procedures are determined during the on-boarding process or the change control process.
The incident management process is responsible for resolving incidents and restoring services. An incident
is created via:
 Threshold being breached by a monitored event
 Incoming call
 E-mail
 Text message
In the event of an incident being reported (via any method, manual, or automated) the Service Desk will
open a trouble ticket, assess & document the situation, and begin remediation. As part of the assessing the
issue, the service desk determines the Severity and the level of support required.

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3. Problem Management
Problem Management resolves the root cause of an issue to minimize the adverse impact of problems that
are caused by errors within the IT infrastructure, and to prevent the recurrence of incidents related to these
errors. A ‘problem’ is an unknown underlying cause of one or more incidents, and a ‘known error’ is a
problem that is successfully diagnosed and for which either a work-around or a permanent resolution has
been identified.
4. Systems Management and Ongoing Support
a. Task Summary
FSG will perform ongoing system administration, problem determination, technical assistance, and
management support services for the datacenter environment. This is to include monitoring and reporting
of the operations events, alerts, log events and defined thresholds, and performance of predefined actions
for associated conditions. These task areas may include but not be limited to the following:
 Server hardware monitoring and alerts
 Migration assistance from existing infrastructure to IBM/Lenovo infrastructure
 System message (OS) monitors and alerts – “VMWare”
 Dashboard Creation and Maintenance/Support/Updating
 Virtualization layer
 Storage layer
 Backups (tapes rotates by Customer)
 SDC will manage the systems “from VMWare down”
 Patch management
 On premises tasks
b. Proactive Monitoring: Definition and Clarifications
Proactive monitoring and management of Customer’s IT infrastructure will be delivered through the Service
Delivery Center (“SDC”), which is maintained 24x7x365. In addition to manual health check and monitoring
processes, FSG will deploy a monitoring and management system that will communicate with each of the
specified systems and report on their conditions. Each system will have a set of determined rules and alarm
thresholds, which will be defined during the on boarding process. Monitoring events may include but are not
limited to:
 Ping response to monitored device
 CPU, disk, memory utilization and health
 Patch compliance
 Core operation system errors
 Data replication statuses

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c. Patch Management: Definitions and Clarifications
Patch management involves acquiring, testing, and installing multiple patches. Patch management tasks
include: maintaining current knowledge of available patches, deciding what patches are appropriate for
particular systems, ensuring that patches are installed properly, testing systems after installation, and
documenting all associated procedures and specific configurations.
d. Backup and Recovery: Definitions and Clarifications
 Participate in developing the policies for managing backups and will be responsible for ensuring the
backups complete successfully.
 Coordinate with Customer to implement recommendations, if needed.
 Assist with system restore should a catastrophic event occur.
 Monitor and respond to system messages related to backup processes.
e. External support coverage: FSG requires the Customer to maintain current hardware and software support
agreements with all vendors applicable to the environment, including coverage for 24x7 operations. FSG
requires the Customer to allow it to assess this external support should it be necessary to maintain or
remediate an incident within the hosted environment. FSG maintains an extended IBM support network
including IBM personnel and certified IBM Business Partners which it may engage to support portions of
the environment should it become necessary.
5. Change Management - Process to be followed if a change to the Customer’s environment is required:
 A project Change Request (PCR) will be the vehicle for communicating change. The PCR will
describe the change, the rationale for the change and the effect the change will have on the
monitoring, systems, or monthly price of the service
 Both parties will review the proposed change and agree to it, or recommend it for further
investigation, or reject it. Authorization must come from both parties and a PCR must be dual
signed to affect a change.
 A written Change Authorization and/or PCR must be signed by authorized representatives from
both parties to authorize implementation of the investigated changes. Until changes are agreed
upon in writing, both parties will act in accordance with the agreed upon SOW.
6. Reporting: FSG will provide regular reports. FSG Engagement Manager will meet with Customer Key
contact on a regular basis to go over the reports and understand any changes and improvements that may
need to be made to the reporting system and/or process.
 Provide a status of the current state of the production site environment
 Provide details and a monthly summary of the thresholds being monitored
 Provide details and a monthly summary of the utilization of server components such as CPU,
memory, and disk monitoring
 Provide details of trouble and their status and action taken to resolve the trouble ticket
 Provide device availability statistics for managed components

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7. On Boarding Process
 Install any software tools or agents required to monitor and manage the base components as
mutually agreed between FSG and the XYZ Bank. From the effective date of this agreement the
process will take approximately 90 days for full functionality
 Monitoring configurations will be discussed with customer to determine the proper thresholds
relative to established best practice and prior successful deployments
 Begin discovery assessment phase wherein FSG will obtain inventory, performance, and usage
data from the datacenter components to validate the optimal system architecture
 Establish monitoring portal with entry dashboard to display key performance and availability
metrics
4.2. Goals and Objectives
Managed system services for datacenter hardware and software components. 3 locations and 6 distinct
server systems across 3 co-locations. The businesses that are supported are Wealth Managed (Capital),
Life Insurance, and Bank Operations. Software includes FSG proprietary IP, Back-up and archiving,
monitoring agents, administrative utilities, and data mining. Systems management and On-going support
include Server hardware monitoring and alerts; Migration assistance from existing infrastructure to
IBM/Lenovo; System Message (OS) monitors and alerts – VMWare; Visualization layer; Storage Layer;
Back-ups; Patch management; On premises tasks; SDC will manage systems from “VMWare Down”.
These services are intended to assist XYZ Bank by creating a common platform for all business silos and
to retrieve key metrics for the intended use of data analytics and business advancement. Through the use
of bots, FSG will create custom Dashboards consisting of client specified custom metrics in order to
streamline processes, establish ease of use, and allow communication throughout the entire company
platform.
4.3. Project Performance
Key Resource / Performance measure
 Engagement Manager – Primary point of contact to ensure all SOW terms are met. Regular review
of open issues and environment reports.
 SDC Service Desk – Reviews, logs, manages all incidents, service requests, and provides an
interface for all SDC processes and activities. Customer is informed at regular intervals and on
request about incidents and their ticket status. Escalation of incidents – Degree of severity and
duration of incident. Problem Management Statement – Problem management resolves the root
cause of an issue to minimize the adverse impact of problems that are caused by errors within the IT
infrastructure and to prevent the recurrence of incidents related to these errors.
 Proactive monitoring – In addition to manual health checks and monitoring processes, FSG will
deploy a systems monitoring and management system that will communicate with each of the
specified systems and report conditions. Each system will have a set of determined rules and alarm
thresholds which will be defined during the on boarding process.
 Reporting –FSG engagement manager will also meet with XYZ Banks’ key contact on a regular
basis (monthly) to analyze reports, understand any changes. Reports will be run on demand in order
to analyze trends, track problems, and read technician notes. FSG will provide regular reports on the
following:

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1. A status of current state of the production site environment
2. Details and a monthly summary of the thresholds being monitored
3. Details and a monthly summary of the utilization of server components
4. Details of trouble tickets and their status and actions taken to resolve trouble ticket.
5. Device availability statistics for managed components
 Change management – Project Change Request (PCR), Dual review from FSG and XYZ, signed
authorization from both parties
 On-Boarding Process – 90 days for full functionality
4.4. Project Assumptions
 SOW covers the services in section 1 and 2 as defined in SOW intro section
 Customer must provide security credentials needed to access XYZ systems
 Some work may be performed by FSG techs remotely when appropriate, if agreed by XYZ and
appropriate VPN access is provided
 FSG normal hours are 8am to 6pm (EST) M-F except holidays. Managed service hours are
24x7x365 when specified in section 2.
 FSG will provide technicians on a best effort, first available basis. Techs are NOT “on call” unless
otherwise specified
 Prices do NOT include any applicable local sales taxes
 FSG will not be liable for delays in shipment or implementation caused by events not under
immediate control
 Customer must maintain current hardware and software technical support and maintenance
agreements with all applicable product manufacturers (ex. IBM, Lenovo, VMWare, Microsoft, etc.)
 FSG is not providing a dedicated resource tech. Services may be performed by a group of techs so
assigned by FSG and may change at any time without notice
 If any assumptions change or become invalid, the changes, estimated dates, or other terms and
conditions may change through invocation of the Project Change Request Procedure (PCR)
1. Special Note – FSG will coordinate pre-installation datacenter evaluation including:
Evaluation of electrical requirements and environmental conditions prior to deployment
in each location according to IBM specs and requirements for the equipment being
installed. Customer will be responsible for remediation of any deficiencies found by this
evaluation.
4.5. Project Constraints
 Within 90 business days of the execution of this service agreement, including all general terms, and
the delivery of the Solution Components (Commencement Date). FSG will make the solution
components and/or system ready (Activation Date), provided that customer supplies all customer
materials and necessary info.
 XYZ will provide, at no charge, prompt and reasonable access to information, documentation,
equipment, and personnel as requested by FSG to facilitate the performance of services under this
agreement
 Statement of Work (SOW) will be valid for 36 months from the activation date (Date of signed
SOW). SOW will automatically renew for a successive 12 month term unless XYZ submits a notice
to cancel 90 days in advance.

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4.6. Major Project Milestones
Table 1
Milestones/Deliverables Target Date
Project Proposal 01/15/2015
Project Plan Review and Change Procedure 03/01/2015
Project Acceptance - Start Date 03/10/2015
Phase I – Hardware/Software agreement - Complete 04/10/2015
Phase II - Hardware/Software Installation - Complete 05/10/2015
Phase III - Dashboard Configuration/Implementation - Complete 06/10/2015
Phase IV – Fully Operational - Complete 07/01/2015
Service Renewal/Closeout 03/10/2018
5. STRATEGIC ALIGNMENT
Flagship Solutions Group is in support of XYZ Bank Inc.’s Strategic Plans through Datacenter Infrastructure
Monitoring and Management Services. Performing these strategic plans will help improve XYZ Bank Inc.
business and streamline operations.
Table 2
Plan Goals/Objectives Relationship to Project
Flagship Solutions Group
Datacenter Infrastructure
Monitoring and Management
Services for XYZ Bank Inc.
Provide systems
monitoring and remote
administration services
for computing
environments
This project will allow for real-time analytics via
customized system networking and customized
dashboard creation
Management of data
hardware and software
services
Single data warehousing allowing for
consolidation, recovery, and protection of
customer’s private information
Provide a smoother
work flow inclusive of
multiple types of
management
New software and hardware infrastructure aims to
streamline the following: Engagement
Management, Incident Management, Problem
Management, Systems Management, and Ongoing
Support, Reporting, Change Management, On-
Boarding, and Exclusions
Creation of Service
Desk Center
Provide a 24x7 helpdesk, optimization of ticket
resolution, and timeliness of performance

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6. COST BENEFIT ANALYSIS
This section illustrates the associated costs of the project and compares them with the benefits and savings to
determine if the project is worth pursuing. The following table captures the cost and savings actions associated
with the project, descriptions of these actions, and the costs or savings associated with them through the first
year. At the bottom of the chart is the net savings for the project.
Table 3
Action Action Type Description Project Costs
Implementation of the Service Delivery Center (SDC)
“Service Desk” will give XYZ bank a single central
location for all system issues and service tickets.
Cost
The Service Desk also provides an interface for other activities such as: maintenance contracts,
software licenses, service-level management, configuration management, ticket resolution, and
reporting.
($125,000)
FSG will provide continual system administration,
problem identification, technical assistance and
management support services for the new datacenter
environment.
Cost
These services include the monitoring and logging of operational events, alerts & defined system
thresholds, key system upgrades and process implementation, dashboard creation, and data
aggregation.
($205,000)
XYZ bank’s IT Infrastructure (physical and virtual) will
be upgraded and supported through IBM/Lenovo
hardware & support, government on site protection, and
Verizon’s Terra-Mark.
Cost
This system is maintained constantly with manual system checks and monitoring processes while
communicating with specified systems, 24x7 security & monitoring, and reporting.
($274,500)
Archive & recovery services with with 24x7 ongoing
support and access to IBM IGS
Cost
Such reports will have the ability to identify any trends, track recurring problems and interpret
technician notes while implementing solutions and strategies used by successful fortune 500
companies.
($145,500)
Migration assistance from existing infrastructure to
IBM/Lenovo infrastructure
Savings Increase efficiency from hardware migration, partnership support, and cloud data networking $283,495
SDC (24x7) implementation resolves the root cause of
an issue to lessen the impact of problems created within
the IT infrastructure and to inhibit the recurrence of such
issues.
Savings
Problem management is more preventative whereas incident management intends to return service
back to normal operational levels as fast as possible. This process is also designed to reduce the
quantity and frequency of incidents. FSG will evaluate all incidents with the intention to uncover
underlying issues on a monthly basis.
$471,744
Archival and security services Savings
Less frequent use of IT resources working on non-value added tasks results in approximately $142,000
savings per year.
$242,000
CIO – Managerial oversight, accountability, and
reporting Savings
Technical oversight in regard to software/hardware transition, data migration, XYZ Bank back-up
systems & security.
$450,000
Manager under CIO
Savings
Managerial oversight of operational efficiency, provide direct report to CIO regarding day-to-day
operations.
$270,000.00
Reduce employee overhead expenses Savings
Savings in cost to out-source existing employee and recruit, hire, and train new employees is
approximately $250,000 in the first year.
$250,000
NPV Present Value Net present value, assuming 1.6% (FY 2014 inflation rate) $42,871.40
NPV Present Value Net present value, assuming 3% (Historic inflation rate) $12,187
IRR Return Rate Internal rate of return (Minimum required return to break even) 8%
Gross Savings
Value Added to
XYZ
Total project savings over a 36 month period. XYZ Bank will save on future expenses such as data
migration, application management, system maintenance, employee turnover, and cyber security
$1,967,239
Total Costs
Total
Costs
Total project cost over a 36 month period. ($750,000)
Net Savings $1,217,239.00
*approximate figures
**Table used to illustrate examples, not meant to be an exhaustive list

XYZ Bank Inc.
15
Based on the cost benefit analysis above we see that by authorizing the project, XYZ Bank will save $1,967,239
over the course of the contract. This represents a significant improvement in XYZ Bank’s operating costs and is
a clear indicator of the additional value this project will have on the firm. Please note, these savings are only a
reasonable projected estimate as XYZ Bank is responsible for its own best practices, contract negotiations, and
final expense approvals.
7. ALTERNATIVES ANALYSIS
The following alternative options have been considered to address XYZ Bank’s IT related issues. These
alternatives were not considered, or dismissed, for a number of reasons (See table below for explanations), not
limited to but including:
.
No Project (Status Quo) Reasons For Not Selecting Alternative
Maintain current information system
infrastructure and implement
necessary changes/fixes when
possible.
● Unnecessary expenditure of funds for increased staffing overhead
● Continued occurrence of a high number of data errors
● Poor and untimely reporting
● Lack of automation and essential business metrics
Alternative Option Reasons For Not Selecting Alternative
Outsource the implementation of a
web-based platform to an outside
vendor in order to improve current
infrastructure flaws.
● Significantly higher cost
● Expertise would have to be assembled from multiple independent sources
● Vendor’s lack of familiarity with XYZ internally generated requirements
● Lack of support from major industry software and hardware developers
Alternative Option Reasons For Not Selecting Alternative
Develop software internally and
recruit, train, and maintain staff to
implement necessary
changes/upgrades to improve
information system, operations,
archiving, security, and efficiency.
● Lack of qualified resources
● Significant cost associated with software design
● Timeframe required is too long
● Excessive employee overhead
● Lack of operational knowledge, experience, and implementation
● Lack of cutting edge software accessibility, knowledge, and application
8. APPROVALS
The signatures of the people below indicate an understanding and acceptance in the purpose and content of this
document by those signing it. By signing this document you indicate that you approve of the proposed project
outlined in this business case and that the next steps may be taken to create a formal project in accordance with
the details outlined herein.
Approver Name Title Signature Date
Goo, J. President and COO
Board of Directors Chairman

2015_03_26 ISM Flagship Final Business Case PDF

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2015_03_26 ISM Flagship Final Business Case PDF