Business Case Spreadsheet

Busines Case Spreadsheet (Template)
Business Case Spreadsheet (Template)

Table of Contents
Introduction
This workbook is called the Business Case Spreadsheet Template (BCT). Its purpose is to provide the user with a head start in building a thorough financial analysis and justification
The BCT was constructed as a result of research and analysis of cross-industry, commercial best practices.
The delivery of the BCT is part of the Enterprise Integration Toolkit which provides a structured method, guidance and tools to DOD personnel in applying cross-industry, commercial
Commercial Off-The-Shelf (COTS) software application procurement and project implementations per OMB circular A-94.
Overview
The BCT is a multi-tabbed Excel workbook containing pre-constructed forms for input of all key project estimates, financial analysis, sensitivity analysis and summary charting of resu
The goal of the BCT is to guide the user through the process of gathering project parameters and financial estimation input, iterating on and refining project estimates, completing a d
producing summary metrics, and, ultimately, using these results to support a "go"/"no-go" decision for project approval and funding.
The BCT allows for 3 increasingly precise methods of estimation for each major category of cost or benefit. The three estimation types are High-Level, Parametric & Actual. Many of
headings for each of these three types of estimation in the left margin.
Information flow within the BCT generally goes from tabs on the right (detail) to tabs on the left (calculation, aggregation and summarization). Therefore, navigation for user familiarit
from left (view results/outcomes at summary level) and proceed to the right (understanding of detailed input & estimations).
Conventions: Fields to be used for user input are in red text, fields carried forward or referenced by other tabs are bold, calculated fields are in black text.
Overview instructions are provided below. More detailed, supplemental instructions are provided within each tab on its use.
EI Toolkit
Document version 1.0, December 2003
Last validated: December 2003
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Per Tab Details

Cash Flow & ROI Analysis
Input & Tornado Sensitivity Analysis
Cost & Benefit Summary
Savings Benefit Estimates
Revenue Benefit Estimates
Sample Benefits Identification Model
Incremental Ongoing Costs
Project Expenses
Project Capital Expenditures
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Glossary
Charts
Simulation
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Installation
SimTools add-in
Instructions
1 Read the Business Case Developers Guide to understand the overall approach to developing a business case.
2 Familiarize yourself with the overall structure of the workbook, the approach used for each tab and its subsequent information flow.
3 Use the Benefits ID tab to identify all savings and revenue benefits of the potential project.
4 Perform ballpark parameter research.
5 Revise benefit scenarios in the Savings and Revenue tabs.
6 Revise Incremental Ongoing Costs, if necessary.
7 Revise Project Expenses and Project Capital tabs as this information becomes available.
8 Revise and proof workbook calculations.
Ensure "x" marks are provided in the appropriate column of the CostBenefit Summary tab and point to the most accurate/appropriate section/information in each detailed tab. At this
9 be "parametric" estimates.
10 Enter all key input parameters in the Input of Assumptions section of the Input Tornado tab. Then, create references to them from all appropriate, underlying detailed tabs.
11 Run preliminary sensitivity analysis & produce tornado diagram by using the Tornado macro.
Follow the instructions in the Input Tornado tab and within the macro, itself. NPV is recommend as the best output cell as demonstrated in the sample.
A new sheet will be created in your workbook. It will contain the new tornado diagram, sorted so that the parameters having the most influence on the output cell (NPV in our sample
contain the largest horizontal bars.
12
13
14
15
16
17
18
19
20
21
Identify high impact input parameters by looking at top of tornado (largest bars mean degree of influence).
Perform parametric research, prioritizing those parameters that were at the top of the most recent tornado diagram.
Refine accuracy of all estimates used as input parameters.
Run 2nd sensitivity analysis & produce tornado diagram.
Download SimTools and place in appropriate directory
Select key parameters and run simulation sensitivity analysis.
Produce charts.
Utilize results as recommended in the Guide
Refresh input parameters as more accurate or reliable estimates or information become available. Repeat steps 16 -19 as necessary.
After project is implemented and operations are expected to be enjoying the estimated benefits, capture actual Key Performance Indicator (KPI) data.
22 Utilize the information gathered in the step above as Actual Results-level input parameters. Ensure "x" marks in in the appropriate columns in CostBenefit Summary tab. Perform ca
ROI & summarize/chart results for use in executive presentation.
Troubleshooting
Immediately upon opening the BCT, click on the Enable Macros button to allow the proper operation of the Tornado diagramming macro for sensitivity analysis.
If you don't see the Tornado macro under the Tools\Macros sub-menu, your instance of Excel has been configured to disable macros. Please consult with your helpdesk to have mac
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If the user is attempting to build a reference to a cell within Project Capital or Inctl Ongoing Costs and the typical Excel cursor turns into a hand, preventing specific cell reference, typ
instead.
EITK0304
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ness Case Spreadsheet Template (BCT). Its purpose is to provide the user with a head start in building a thorough financial analysis and justification for a project.
esult of research and analysis of cross-industry, commercial best practices.
the Enterprise Integration Toolkit which provides a structured method, guidance and tools to DOD personnel in applying cross-industry, commercial best practices to
S) software application procurement and project implementations per OMB circular A-94.
workbook containing pre-constructed forms for input of all key project estimates, financial analysis, sensitivity analysis and summary charting of results.
he user through the process of gathering project parameters and financial estimation input, iterating on and refining project estimates, completing a detailed financial analysis,
, ultimately, using these results to support a "go"/"no-go" decision for project approval and funding.
y precise methods of estimation for each major category of cost or benefit. The three estimation types are High-Level, Parametric & Actual. Many of the detail level tabs have
types of estimation in the left margin.
enerally goes from tabs on the right (detail) to tabs on the left (calculation, aggregation and summarization). Therefore, navigation for user familiarity is recommended to start
at summary level) and proceed to the right (understanding of detailed input & estimations).
or user input are in red text, fields carried forward or referenced by other tabs are bold, calculated fields are in black text.
ed below. More detailed, supplemental instructions are provided within each tab on its use.
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This tab contains various measures of financial feasibility, Return on Investment (ROI) and justification, including: Net Present Value (NPV), Internal Rate of
Return (IRR), and Breakeven. Pulls data mainly from the Cost & Benefit Summary tab. Also pulls a few, key input parameters from Input of Assumptions area
of Input Sensitivity tab.
Also contains the underlying year-to-year estimated financial results, which roll-up into a Cash Flow (CF) analysis containing the following sub-categories:
One-time costs (expenses and capital), Ongoing Costs, Ongoing Benefits, Depreciation.
Location of all key input parameters. Also, provides workspace to run the integrated Tornado macro. This macro takes user-defined input parameters and
produces a tornado diagram. This chart allows the user to analyze the relative importance of the input parameters in terms of their influence on the outcome
of the BCT model (typically outcome is measured in 5 year NPV). This type of sensitivity analysis is in compliance with OMB circular A-74.
Summarizes major categories of costs and benefits. Acts as a rudimentary "pivot table" for user selection of level of estimate. As directed by "x" marks from
the user, the CostBenefit Summary tab pulls information from the appropriate estimation type area of each supporting, detailed workbook tabs: Savings,
Revenue, Incremental Ongoing Costs, Project Expenses & Project Capital.
Provides a workspace for user quantification of incremental cost savings benefits of a project at three, increasingly accurate/detailed levels of estimation.
Pulls key input parameters from Input of Assumptions area of Input Sensitivity tab.
Provides a workspace for quantification of incremental revenue generating benefits of a project at three, increasingly accurate/detailed levels of estimation.
Pulls key input parameters from Input of Assumptions area of Input Sensitivity tab.
Provides an approach to thinking through the potential benefit areas, benefit metrics and benefit calculations associated with a proposed project in a
commercial setting. Currently no inbound or outbound links to/from the rest of the Business Case Template.
Provides a workspace for user quantification of various, incremental, ongoing costs as a result of implementing the project. This sheet provides for this
quantification at three, increasingly accurate/detailed levels of estimation. Pulls key input parameters from Input of Assumptions area of Input Sensitivity tab.
Provides a workspace for quantification of project expenses required for project implementation. In IT projects, this typically consists of consulting, integration,
programming, related travel & expenses, and computer hardware, network equipment, or software that does not fulfill the rules for availability to depreciate
over time. Internal labor costs and associated travel & expenses are also typically counted in this category.
Provides a workspace for quantification of project capital goods required for project implementation. In IT projects this typically consists of computer
hardware, network equipment, some custom-developed computer software and some consulting. On occasion, this category might also include other capital
items such as buildings, furniture, telecommunications equipment, or building renovations.
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Provides a listing of key words or phrases, their definition, and how their used.
Provides graphical summaries of financial and other analysis results from the BCT.
Provides workspace where the user may run a separately downloadable Excel add-in to automatically simulate many scenarios of the BCT, with user-specified
variance of a parameter to generate an inverse cumulative distribution curve.
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http://www.kellogg.nwu.edu/faculty/myerson/ftp/addins.htm
The BCT uses an Excel add-in, SimTools, which is available for download at the above URL. SimTools supports Monte Carlo simulation and additional
statistical analysis of uncertainty in the cost-benefits model. Click on the above link and follow the instructions for downloading to enable these features.
pers Guide to understand the overall approach to developing a business case.
all structure of the workbook, the approach used for each tab and its subsequent information flow.
y all savings and revenue benefits of the potential project.
avings and Revenue tabs.

ts, if necessary.
oject Capital tabs as this information becomes available.
the appropriate column of the CostBenefit Summary tab and point to the most accurate/appropriate section/information in each detailed tab. At this stage, most are likely to
the Input of Assumptions section of the Input Tornado tab. Then, create references to them from all appropriate, underlying detailed tabs.
is & produce tornado diagram by using the Tornado macro.

ut Tornado tab and within the macro, itself. NPV is recommend as the best output cell as demonstrated in the sample.
ur workbook. It will contain the new tornado diagram, sorted so that the parameters having the most influence on the output cell (NPV in our sample) are at the top and
s.
ters by looking at top of tornado (largest bars mean degree of influence).

oritizing those parameters that were at the top of the most recent tornado diagram.
used as input parameters.
oduce tornado diagram.
appropriate directory
mulation sensitivity analysis.
e accurate or reliable estimates or information become available. Repeat steps 16 -19 as necessary.
operations are expected to be enjoying the estimated benefits, capture actual Key Performance Indicator (KPI) data.
n the step above as Actual Results-level input parameters. Ensure "x" marks in in the appropriate columns in CostBenefit Summary tab. Perform calculations of actual project
r use in executive presentation.
CT, click on the Enable Macros button to allow the proper operation of the Tornado diagramming macro for sensitivity analysis.
ro under the Tools\Macros sub-menu, your instance of Excel has been configured to disable macros. Please consult with your helpdesk to have macros enabled.
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a reference to a cell within Project Capital or Inctl Ongoing Costs and the typical Excel cursor turns into a hand, preventing specific cell reference, type in the cell location
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Charts
1
Summary Cash Flow

5,000,000
4,000,000
3,000,000
Inflows
Outflows
2,000,000
Net Cash
Flow Annua
Cumulative
Cash Flow
1,000,000
0
0
(1,000,000)
(2,000,000)
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Note that this single chart incorporates all significant cash flow measures. For some presentations it may be advisable to produce multiple, simpler charts.
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Inflows
Outflows
Net Cash
Flow Annual
Cumulative
Cash Flow
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Simulation Sensitivity Analysis

Step # Sensitivity Simulation Instructions
1 Generate a tornado diagram following steps in Tornado Diagram section of Input Tornado tab. Identify top influencial parameters.
2 Plug the following formula into the best estimate cell for a key parameter of the Input Sensitivity tab:
Where NORMINV is the function that best approximates the shape of the distribution for this parameter.
Where the mean of the distribution is 15% and the standard deviation is 10%.
=NORMINV(RAND(),0.15,0
Where RAND() is used to generate random numbers between 0 and 1
Where the NORMINV function uses this random number to genarate simulations of outcomes (typically NPV in cell D4) for this key parame
it by
varies.
using the Tools, SimTool, SimTable menu command from within the BCT
3 Run SimTable
4 Follow on screen instructions, using 2 columns and approx. 100 rows, starting from cell C4
5 Sort cells D5 to end in descending order.
6 Use Chart Wizard to plot a line graph as above.
7 Observe line graph "tilt": the more horizontal the majority of the curve, the more predictable outcome (NPV) is as the key parameter varies according
shape of the selected distribution curve.
8 Refine the chart for use in summary presentations
9 If warranted, the user can perform this process for another, key parameter: to isolate the results of each simulation, start by re-keying a "hard-coded"
not reference)
input
of the variation
parameter
in step
2. Then
go to step
select akey
new
parametersimultaneously.
and repeat stepsTo2do
on.this, the user w
10 formula,
A more sophisticated
and
thorough
onfirst
stepchosen
9 above
is to run
a simulation
on 1,
multiple,
parameters
execute step 2 for select parameters (ex: top 5).
* Keep in mind that after the first time Simulation is run
according to the steps above, the model outcome (NPV)
will change each and every time the user causes the
workbook to re-calculate. Therefore, the BCT will not be
re-usable for reliable ROI metrics until all parameters in
the Input Sensitivity tab are again "hard-coded."
Simulation of NPV Outcomes Varying % of Improvement in Volume Discount Across an Inverse No
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
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Column R
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2,000,000
1,000,000
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012
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Column R
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=NORMINV(RAND(),0.15,0.1)
cell D4) for this key parameter as
arameter varies according to the
y re-keying a "hard-coded" (not

tusly.
stepsTo2do
on.this, the user would
nt in Volume Discount Across an Inverse Normal Distribution
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Project XXX Business Case Template
Enterprise Integration Toolkit
Input & Tornado Sensitivity Analysis

1. Ensure all key input parameters are "hard coded" (typed in, not calculated or referenced) into the section below. Start with column D. The user may have to point key cells of the many detailed cost and benefits tabs to these cells in this tab. These "pointer" cells in the detail tabs are colored black in this BCT sample to show that they
are not input cells. Also within the table below, provide Minimum (column F) and Maximum (column G) data points for the Best Estimate of Input parameter provided in column D.
Input of Assumptions
(Assumptions)
Tab Name
Section Name
ROI and CF Analysis

ROI and CF Analysis
ROI and CF Analysis
ROI and CF Analysis
ROI and CF Analysis
Savings
Savings
Savings
Savings
Savings
Savings
Assumptions Per Year

Depreciation & Interest Schedule
Purchasing
Purchasing
Purchasing
Purchasing
Purchasing
Maintenance & Repair
Savings
Savings
Savings
Savings
Savings
Savings
Savings
Savings
Savings
Savings
Revenue
Warehousing/Inventory
Logistics, et al.
Logistics, et al.
Logistics, et al.
Customer Service
Customer Service
Customer Service
IS
Finance
HR
Sales
Sales
Sales
Sales
Sales
Customer Service
Customer Service
Best Estimate Parameter

15.00%
2.5%
2.5%
42%
8.5%
10%
10%
10%
10%
15%
10%
10%
10%
20%
25%
10%
50%
50%
3
10%
10%
5%
10%
10%
10%
10%
10%
10%
Low Estimate of
Parameter
High Estimate of
Parameter
Discount Rate
Annual Cost Increases
Annual Benefit Increases
Corporate Tax Rate
Interest Rate
Est. % improvement in Purchasing productivity
Est. incremental % of comparable products identified
Est. % improvement in price per P.O.
Est. incremental % of same vendor/same month orders
Est. % improvement in volume discount
Est. improvement in Maintenance & Repair worker productivity
10%
0%
0%
35%
6%
0%
5%
7%
4%
5%
5%
25%
7%
7%
49%
12%
25%
15%
15%
18%
40%
15%
Est. avg. reduction in # parts per warehouse

Est. improvement in Logistics worker productivity
Est. avg. reduction in cost per work order
Estimated reduction in premium freight shipments
Est. avg improvement in C.S. & O.M. worker productivity
Est. % reduction of incorrect orders
Est. % reduction in complaint calls
Est. # decomissioned systems
Est. avg improvement in Finance worker productivity
Est. avg improvement in HR worker productivity
Est. % increase in price per order
Est. % improvement in close rate
Est. % decrease in order processing time
Est. % improvement in sales travel efficiency
Est avg annual reduction in customer loss
Est. % improvement in customer satisfaction
Est. incremental % of leads passed per C.S. worker
7%
5%
10%
0%
5%
35%
10%
2
5%
5%
2%
0%
3%
0%
5%
2%
5%
13%
15%
30%
30%
15%
60%
70%
4
15%
15%
10%
20%
13%
25%
15%
14%
30%
Name of Parameter
Benefits ID
Ongoing Costs
Project Expenses
Project Capital
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2. From the Tools menu, select Macros, highlight TORNADO and click on the "Run" button. Then, follow the pop-up instructions provided by the macro itself. The resulting chart will appear within a newly inserted tab (Sheet 1) in this workbook.
Tornado Sensitivity Analysis
5 Year NPV
2,827,104
Savings Sensitivity Analysis Outputs

Output D48 with low value from F4:F24 Output D48 with high value from G4:G24
for parameter in D4:D24
Output Differences:
1,614,270
5,069,681
1,712,996
3,786,243
3,245,260
1,624,707
2,094,042
3,109,019
2,297,037
3,109,019
2,986,293
2,216,767
2,478,708
2,835,470
2,520,332
2,723,328
2,520,332
2,682,728
2,500,033
2,652,279
2,530,711
2,672,349
2,551,938
2,651,123
2,560,931
2,642,129
2,560,931
2,642,129
2,560,931
2,642,129
2,560,931
2,642,129
2,560,931
2,642,129
2,576,156
2,606,605
2,584,448
2,612,918
2,601,530
2,601,530
2,601,530
2,601,530
Parameters:
Discount Rate
Corporate Tax Rate
Interest Rate
3,455,411
2,073,246
1,620,553
1,014,977
811,982
769,526
356,762
202,995
162,396
152,247
141,638
99,186
81,198
81,198
81,198
81,198
81,198
30,449
28,470
0
0
Key Savings Parameters

Discount Rate
Corporate Tax Rate
A nnual Cost Increases
Est. avg. reduction in # parts per w arehouse
Est. avg. reduction in cost per w ork order
Est. improvement in Maintenance & Repair w orker productivity
Est. improvement in Logistics w orker productivity
Est. avg improvement in C.S. & O.M. w orker productivity
Est. avg improvement in Finance w orker productivity
Est. avg improvement in HR w orker productivity
Estimated reduction in premium f reight shipments
A nnual Benef it Increases
Interest Rate
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
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Revenue Sensitivity Analysis Outputs
5 Year NPV
2,827,104
Output D46 with low value from F28:F34 Output D46 with high value from G28:G34
Output Differences:
2,505,863
2,975,924
2,598,236
2,984,093
2,624,439
2,960,811
2,635,471
2,788,590
2,727,748
2,819,661
2,733,408
2,748,379
2,740,894
2,740,894
Parameters:
470,061
385,857
336,372
153,119
91,912
14,971
0
Key Revenue Parameters
Est. incremental % of leads passed per C.S. w orker
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
2,700,000
2,800,000
2,900,000
3,000,000
3,100,000
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Cash Flow & ROI Analysis
5 Year NPV
2,827,104
5 Year IRR
60%
Payback (Yrs.)
1.6
Project Name: Generic IT Project

Project #:
ASSUMPTIONS PER YEAR
Yr 0
Assumptions
Discount Rate
Corporate Tax Rate
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
Yr 8
Yr 9
15%
0%
0%
42%
Yr 1
2.5%
2.5%
42%
Yr 2
2.5%
2.5%
42%
Yr 3
2.5%
2.5%
42%
Yr 4
2.5%
2.5%
42%
Yr 5
2.5%
2.5%
42%
Yr 6
2.5%
2.5%
42%
Yr 7
2.5%
2.5%
42%
Yr 8
2.5%
2.5%
42%
ONE TIME PROJECT COSTS
Yr 0
Yr 9
Capital Outlays
External Consulting Fees
Computer & Other Equipment
Asset Category 3
Asset Category 4
Asset Category 5
Sub-Total Capital Outlay
(show as negative numbers)

0
(1,659,619)
0
0
0
(1,659,619)
One Time Expenses

Internal Personnel Costs
IT Installation Costs
Sub-Total One Time Expenses
(621,575)
(582,981)
0
(1,204,556)
Total Outlays
(2,864,175)
EARNINGS IMPACT
Projected Costs
Depreciation
On-going costs
One Time Expenses
Total Costs
Yr 0
(show as negative numbers)
Yr 2
Yr 3
Yr 4
Yr 5
(331,924)
(874,016)
0
(331,924)
(670,740)
0
(331,924)
(571,778)
0
(331,924)
(531,886)
0
(1,204,556)
(331,924)
(1,240,720)
0
(1,204,556)
(1,572,644)
(1,205,940)
(1,002,664)
(903,702)
(863,810)
1,908,801
1,918,201
3,827,002
1,344,640
1,966,156
3,310,796
1,031,907
2,015,310
3,047,217
879,659
2,008,025
2,887,684
818,287
2,039,475
2,857,762
2,254,357
2,104,856
2,044,554
1,983,982
1,993,952
Projected Benefits
Additional on-going benefits
Incremental contribution/profits
Total Benefits
Net Projected Impact
(1,204,556)
Yr 1
Yr 6
Yr 7
Yr 8
Yr 9
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Tax
Income After Tax
505,914
(698,642)
(946,830)
1,307,527
(884,040)
1,220,817
(858,713)
1,185,841
(833,272)
1,150,709
(837,460)
1,156,492
0
0
0
0
0
0
0
0
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CASH FLOW
Yr 0
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
Yr 8
Yr 9
0
0
1,220,817
331,924
1,552,740
0
0
1,185,841
331,924
1,517,765
0
0
1,150,709
331,924
1,482,633
0
0
1,156,492
331,924
1,488,416
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,827,104
5,322,744
6
2,827,104
5,322,744
7
2,827,104
5,322,744
8
2,827,104
5,322,744
9
Yr 7
Yr 8
Yr 9
Capital Outlay
One-time Exp. (after tax)
Income After Tax
Depreciation
Net Cash Flow
(1,659,619)
(698,642)
(2,358,261)
0
0
1,307,527
331,924
1,639,451
Discounted Cash Flows

Cumulative Discounted
Cumulative Nominal
(2,358,261)
(2,358,261)
(2,358,261)
0
1,425,610
(932,652)
(718,810)
1
1,174,095
241,443
833,930
2
997,955
1,239,398
2,351,695
3
847,700
2,087,098
3,834,328
4
740,006
2,827,104
5,322,744
5
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
0
1,659,619
0
0
0
1,659,619
0
1,327,695
0
0
0
1,327,695
0
995,771
0
0
0
995,771
0
663,848
0
0
0
663,848
0
331,924
0
0
0
331,924
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3
5
3
5
10
0
331,924
0
0
0
331,924
0
331,924
0
0
0
331,924
0
331,924
0
0
0
331,924
0
331,924
0
0
0
331,924
0
331,924
0
0
0
331,924
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,659,619
0
0
0
1,659,619
0
1,327,695
0
0
0
1,327,695
0
995,771
0
0
0
995,771
0
663,848
0
0
0
663,848
0
331,924
0
0
0
331,924
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
126,961
98,747
70,534
42,320
14,107
DEPRECIATION AND INTEREST SCHEDULE

Beginning Balance
Asset Category 3
Asset Category 4
Asset Category 5
Total Outlay
Close
Depreciation
Asset Category 3
Asset Category 4
Asset Category 5
Total Outlay
Life (# of years)
Ending Balance
Asset Category 3
Asset Category 4
Asset Category 5
Total Outlay
Interest on Avg Balance
Interest Rate
0
1,659,619
0
0
0
1,659,619
Yr 6
8.5%
Page 24 of 78
Yr 10
Total
2.5%
2.5%
42%
Yr 10
Total
0
(1,659,619)
0
0
0
(1,659,619)
(621,575)
(582,981)
0
(1,204,556)
(2,864,175)
Yr 10
Total
0
0
(1,659,619)
(3,889,141)
(1,204,556)
(6,753,316)
5,983,294
9,947,167
5,983,294
(770,022)
Page 25 of 78
0
0
(4,360,314)
(5,130,337)
Page 26 of 78
Yr 10
Total
0
0
0
0
0
(1,659,619)
(698,642)
6,021,386
1,659,619
5,322,744
2,827,104
5,322,744
10
Yr 10
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
1,659,619
0
0
0
1,659,619
0
0
0
0
0
0
0
352,669
Page 27 of 78
Cost & Benefit Summary
Generic IT Project
Level of Estimation*
All rows must have an "x" in only one of the three columns below.
1
Year 0
Year 1
Year 2
Year 3
Year 4
- BENEFITS $
$
$
$
1,908,801 $
1,918,201 $
$
$
$
$
$
$
286,320 $
763,520 $
190,880 $
$
$
621,575 $
582,981 $
Gross Benefit
(1,204,556) $
2,586,281 $
2,436,780 $
2,376,477 $
2,315,905
Cumulative Gross Benefit
(1,204,556) $
1,381,725 $
3,818,505 $
6,194,983 $
8,510,888
Incremental Revenue
Incremental Cost Savings
x
x
1,344,640 $
1,966,156 $
1,031,907 $
2,015,310 $
879,659
2,008,025
- COSTS Incremental Commissions & Cost of Sales

Incremental Cost of Operations
Incremental SG&A Cost
External Project Expenses (Fees & Other Expenses)
Internal Project Expenses (Personnel & Other Expenses)
x
x
x
x
x
$
$
201,696
537,856
134,464
-
$
$
$
$
$
154,786
412,763
103,191
-
$
$
$
$
$
131,949
351,864
87,966
-
* Level of Estimation Footnotes:

1 - High level ("ballpark") estimates are typically based on preliminary research on similar projects, RFI responses and/or non-binding estimates.
2 - Parametric estimates are typically based on in-depth research, RFP response and/or documented contractual obligation.
3 - Actual costs and benefits as measured post-implementation for validation.
Page 28 of 78
Year 5
Avg.
$
$
818,287
2,039,475
$
$
$
122,743
327,315
81,829
$
$
2,325,876
10,836,764
2,408,264
Page 29 of 78
Project Capital Expenditures

Level 1 - High Level Estimates
Year 0
Total CapEx
Year 1
-
Year 2
-
Year 3
-
Year 4
-
Buildout
PCs
Servers
Network Components
Application Software License
OS/DB/Utilities Software License
Premise-base Telecom Equip.
Other Infrastructure
Page 30 of 78
Level 2 - Parametric Estimates
(Sample) Project Capital Expenditures For a New Call Center
Number of sites required
Year 0
1.00
Total CapEx
Year 2
-
Year 3
### $
Year 4
-
###
CapEx Per Site
Variables
Agent Stations
175
Non-Agent Stations
1,659,619
75
Sq. Ft. (120 per seat)
30000
CapEx Cost/Seat
$
One Time CapEx Costs
Year 1
1,659,619 $
Unit Cost
Quantity
9,484
Total
Buildout
6,000
30 $
LAN Server (Novell)
6,739
1 $
180,000 LAN Sub-Total

6,739
Front end Cisco Router
10,000
2 $
20,000
100Mb Fault tolerance Transceiver
4,500
1 $
Accelar Backbone switch
35,000
2 $
70,000
Cisco Switch (24 port)
2,500
9 $
22,500
LAN Tape backup
3,400
1 $
Tapes
20
40 $
800
LAN Management workstations
3,000
1 $
3,000
Sniffer Network probe
17,000
1 $
17,000
HP Laser jet 4000
1,500
1 $
1,500
Fax server
4,800
1 $
4,800
PC Workstation
1,000
250 $
250,000
Surge protectors for PC's
14
250 $
3,500
Equipment racks
300
1 $
300
Tools, Tywraps, Labels
500
1 $
500
Novel 4.11 OS
40
250 $
10,000
Novell Gateway Sessions
50
25 $
1,250
Managewise LAN software
10,000
1 $
10,000
HP Openview
18,000
1 $
18,000
Optivity Switch management software
10,000
1 $
10,000
Cisco works
18,000
1 $
18,000
Remote access software
1,000
1 $
1,000
Attachmate for Windows
360
25 $
9,000
E-mail software
71
250 $
17,750
539,254
279,865
4,500 Voice Sub-Total
3,400 Brick and Mortar Sub-Total

$
840,500
10%
10%
Page 31 of 78
MSOffice
500
1 $
500
Communications line frame
3,000
1 $
3,000
Modems FRADS
500
1 $
500
Training equipment
5,000
1 $
5,000
SUN Sparc 250 IWS Intranet server
16,865
1 $
16,865
Intel based intranet server
4,000
1 $
4,000
Wiznet gateway
2,400
1 $
2,400
SUN Backup unit
2,200
1 $
2,200
IWS Backup tapes
20
40 $
800
Solaris License
150
3 $
450
SUN Sparc 250 IWS Intranet server
16,865
1 $
16,865
Lucent PBX
Installation
1 $
Cost per station
2000
Paraphonics IVR
150,000
1 $
150,000
Genesis CTI Server
20,000
1 $
20,000
Open Client Sybase License
31,000
3 $
93,000
Furniture (Cubes)
2,000
250 $
500,000
Wiring for PC's and Cubes
120
250 $
30,000
Security System
75,000
1 $
75,000
Reception Area
20,000
1 $
20,000
Cafeteria
20,000
1 $
20,000
PC Installation
50
250 $
12,500
Data roomsetup
3,000
1 $
3,000
1,659,619
Page 32 of 78
Level 3 - Actual Results

Year 0
Total CapEx
Year 1
-
Year 2
-
Year 3
-
Year 4
-
Page 33 of 78
Year 5
$
Page 34 of 78
Year 5
$
Page 35 of 78
Page 36 of 78
Year 5
$
Page 37 of 78
Project Expenses
Assumptions
Year 0
$
Year 1
-
Year 2
-
Year 3
-
Year 4
-
Page 38 of 78

Assumptions
External Fees Contingency
Travel & Expenses
Integrator Fees
(Daily Rate)
$
15% $
Year 0
621,575
81,075
15% $
1,000 $
70,500
470,000
Year 1
Year 2
Year 3
Year 4
Project Work Breakdown Structure (WBS) for

Generic IT Project
Participants
# Occurrences
Estimating Factor
Duration (Days)
Project Name
Phase I
FTEs
1890.0
Workstream 1
Task Package 1
1220.0
Task 1
Task 2
Task 3
4
2
3
5
Meetings
Tables
10
20
120.0
200.0
Task 1
Task 2
4
2
3
5
Meetings
Tables
25
60
300.0
600.0
Task Package 2
Workstream 2
Task Package 1
670.0
Task 1
Task 2
Task 3
4
2
2
3
5
5
Meetings
Tables
Sessions
10
35
20
120.0
350.0
200.0

Page 39 of 78
Assumptions
Year 0
$
Year 1
-
Year 2
-
Year 3
-
Year 4
-
Page 40 of 78
Year 5
$
Year 0
-
Year 1
-
Year 2
-
Page 41 of 78
Year 5
Assumptions
$
Internal Project Costs Contingency
15% $
Travel & Expenses
Internal Labor Cost
(Daily Cost)
5% $
340 $
Year 0
582,981
76,041
Year 1
Year 2
24,140
482,800
Corresponding Government Cost Categories
(From OMB Circular No. 76: Revised Supplemental Han

Activities
% External
Integra Client FTEs

470.0
1420.0
210.0
1010.0
50%
0%
60.0
0.0
60.0
200.0
50%
0%
150.0
0.0
150.0
600.0
260.0
410.0
60.0
0.0
200.0
60.0
350.0
0.0
50%
0%
100%
Page 42 of 78
Year 5
$
Year 0
-
Year 1
-
Year 2
-
Page 43 of 78
Year 3
$
Year 4
-
Year 5
-
Page 44 of 78
Year 3
Year 4
Year 5
Personnel
Travel
Personnel
orresponding Government Cost Categories
From OMB Circular No. 76: Revised Supplemental Handbook, Performance of Commercial
ctivities
Page 45 of 78
Year 3
$
Year 4
-
Year 5
-
Page 46 of 78
Incremental Ongoing Costs

Incremental Commissions & Cost of Sales
Estimated as percentage of revenues from prior operating financial data.
- used in row 10 of CostBenefit Summary tab

Year 0
Estimate: Commissions & Cost of Sales
Year 1
0%
Year 2
15%
Year 3
15%
Year 4
15%
Year 5
15%
15%
Description of supporting research and data source(s):

Year 0
Year 1
Year 2
Year 3
Estimate: Cost of Operations
0%
40%
40%
Year 4
40%
Year 5
40%
40%

Year 0
Year 1
Year 2
Year 3
Estimate: SG&A Cost
0%
10%
10%
Year 4
10%
Year 5
10%
10%
Page 47 of 78

(Insert parametric estimates of Commissions & Cost of Sales sub-categories in this space.)
Year 0
Total Commissions & Cost of Sales
Year 1
-
Year 2
### $
Year 3
-
Year 4
### $
Year 5
-
(Insert calculations in row above to sum sub-categories of parametric estimates of ongoing Commissions & Cost of Sales from rows in Level 2 section above.)
(Sample) Ongoing Operating Costs of a Call Center

Year 0
Total Annual Cost of Operations
Year 1
-
Year 2
15,037,991 $
13,770,359 $
Year 3
Year 4
13,770,359 $
Year 5
13,770,359 $
13,770,359
# Sites
Variables
Center Size (seats)

Sq. Ft. (120 per seat)
Turnover % - Annual
Benefits loading factor
250
30000
60%
24%
Administrative Seats
Training Seats
Agent Seats
Operating Cost/Seat
$
52,521
47,450.64
7,630.80
70%
34
41
175
250
1.00
Annual Operating Costs Per Site

Variable - Year one
$
Variable - Out years
$
Fixed - Every year
13,130,291
11,862,659
1,907,700
Page 48 of 78
Year One Operating Costs
Corresponding Government Cost

Categories
Out Years Operating Costs
(From OMB Circular No. 76: Revised

Supplemental Handbook,
Performance of Commercial Activities
Headcount
Salary/
Cost
per unit
Total Loaded Cost
Variable based on headcount
Total
Salary/
Cost
per unit
Total Loaded Cost
Headcount
Variable based on headcount
Center Director
Managers
Supervisors
1
2
11
$
$
$
70,000 $
57,324 $
32,913 $
1
2
11
$
$
$
70,000 $
57,324 $
32,913 $
Leads
Agents
Tech Support
Facility Manager
Workforce coordinator
Admin
9
219
1
1
3
2
$
$
$
$
$
$
28,198
19,608
55,000
35,000
20,640
20,640
Leads
Agents
Tech Support
Facility Manager
Workforce coordinator
Admin
9
219
1
1
3
2
$
$
$
$
$
$
28,198
19,608
55,000
35,000
20,640
20,640
$
$
$
$
$
$
314,690
5,318,670
68,200
43,400
76,781
51,187
Personnel
Personnel
Personnel
Personnel
Personnel
Personnel
HR Coordinator
Trainers
2
2
$
$
32,913 $
32,913 $
81,624
81,624
HR Coordinator
Trainers
2
2
$
$
32,913 $
32,913 $
81,624
81,624
Personnel
Personnel
Initial Recruiting
Initial Hiring
253
253
$
$
1,500 $
2,000 $
379,031
505,375
Initial Recruiting
Initial Hiring
0
0
$
$
1,500
2,000
Initial Training
Recruiting for Churn
Churn Hiring Fees
Churn Training Cost
253
131
131
131
$
$
$
$
1,200
1,500
2,000
1,200
$
$
$
$
303,225
196,875
262,500
157,500
Initial Training
Recruiting to cover churn
Churn Hiring Fees
Churn Training Cost
0
131
131
131
$
$
$
$
1,200 $
1,500 $
2,000 $
1,200 $
196,875
262,500
157,500
Personnel
Personnel
Personnel
Personnel
Vacation Exp.
Bonus Exp.
Service awards
Incent. Pay
253
253
253
253
$
$
$
$
2,400
1,300
100
275
$
$
$
$
606,450
328,494
25,269
69,489
Vacation Exp.
Bonus Exp.
Service awards
Incent. Pay
253
253
253
253
$
$
$
$
2,400
1,300
100
275
$
$
$
$
606,450
328,494
25,269
69,489
Personnel
Personnel
Personnel
Personnel
Unemployment taxes
Payroll taxes
Grp. Medical Ins.
Pens. Plan contrib..
401K Contrib..
Sick pay exp.
253
253
253
253
253
253
$
$
$
$
$
$
1,100
3,000
4,200
480
4,050
410
$
$
$
$
$
$
277,956
758,063
1,061,288
121,290
1,023,384
103,602
Unemployment taxes
Payroll taxes
Grp. Medical Ins.
Pens. Plan contrib..
401K Contrib..
Sick pay exp.
253
253
253
253
253
253
$
$
$
$
$
$
1,100
3,000
4,200
480
4,050
410
$
$
$
$
$
$
277,956
758,063
1,061,288
121,290
1,023,384
103,602
Personnel
Personnel
Personnel
Personnel
Personnel
Personnel
Other EE Benefits
Seminars and classes
Educational Reimb.
Other pers. Exp.
253
253
253
253
$
$
$
$
410
140
$
$
$
$
103,602
35,376
Other EE Benefits
Seminars and classes
Educational Reimb.
Other pers. Exp.
253
253
253
253
$
$
$
$
- $
- $
410 $
140 $
103,602
35,376
Personnel
Personnel
Personnel
Personnel
Temp Help Days
500
200 $
100,000 $ 25.00 / hour
Temp Help Days
100
200 $
20,000
Personnel
11,862,659
314,690
5,318,670 $
68,200
43,400
76,781
51,187
13,130,291
100 ratio
20 ratio
25 ratio
9.50
Total
$
$
86,800
142,164
446,383
Personnel
Personnel
Personnel
Personnel
Center Director
Managers
Supervisors
$
$
$
$
$
$
86,800
142,164
446,383
Personnel
Personnel
Page 49 of 78

Fixed Annual costs - every year
Travel and entertainment

Lodging
Airfare
Rent Cars
Other
24
8
0
253
$
$
$
$
Meals
Meals-entertainment
Meetings
Postage
Office supplies
24
24
3
253
253
$
$
$
$
$
50
50
5,000
75
75
$
$
$
$
$
1,200
1,200
15,000
18,952
18,952
Travel
Travel
Travel
Materials & Supply Costs
Stationary/forms
Office eq.
Rent- office eq.
Depreciation of PC's
Depreciation of Furniture
253
1
1
1
1
$
$
$
$
$
0.50
288,000
84,000
80,340
61,956
$
$
$
$
$
126
288,000
84,000
80,340
61,956

Depreciation
Depreciation
Computer supplies
Hardware maintenance
Software maintenance
Bank charges
Dues/subscriptions
253
1
1
1
253
$
$
$
$
$
20
49,116
24,567
1,000
14
$
$
$
$
$
5,054
49,116
24,567
1,000
3,538

Other Costs
Other Costs
30000
30000
30000
30000
$
$
$
$
22
9.50
4.20
5.75
$
$
$
$
660,000
285,000
126,000
172,500
1,907,700
Facilities - rent
Utilities
Facil. Repair
Other Occ. Exp.
Total
200 $
800 $
- $
- $
4,800
6,400
-
Travel
Travel
Travel
Travel
Travel
Rent
Utilities
Insurance

(Insert parametric estimates of SG&A Cost sub-categories in this space.)
Year 0
Total Annual SG&A Costs
Year 1
-
Year 2
### $
Year 3
-
Year 4
### $
Year 5
-
(Insert calculations in row above to sum sub-categories of parametric estimates of ongoing SG&A from rows in Level 2 section above.)
Page 50 of 78

(Insert quantification of actual Commissions & Cost of Sales sub-categories in this space.)
Year 0
Total Annual Commissions & Cost of Sales
Year 1
-
Year 2
### $
Year 3
-
Year 4
### $
Year 5
-
(Insert calculations in row above to sum sub-categories of actual ongoing Commissions & Cost of Sales from rows in Level 3 section above.)

(Insert quantification of actual Cost of Operations sub-categories in this space.)
Year 0
Total Annual Cost of Operations
Year 1
-
Year 2
### $
Year 3
-
Year 4
### $
Year 5
-
(Insert calculations in row above to sum sub-categories of actual ongoing Cost of Operations from rows in Level 3 section above.)

(Insert quantification of actual SG&A sub-categories in this space.)
Year 0
Total Annual SG&A Costs
Year 1
-
Year 2
### $
Year 3
-
Year 4
### $
Year 5
-
(Insert calculations in row above to sum sub-categories of actual ongoing SG&A from rows in Level 3 section above.)
Page 51 of 78
Savings Benefit Estimates

Year 0
Year 1
Year 2
Year 3
Year 4
(Insert high level cost savings sub-category estimates in this space.)
Grand Total Cost Savings
### $
(Insert calculations in row bove to sum sub-categories of high-level savings from rows in Level 1 section above.)
Page 52 of 78

Dept.
Description
Purchasing
Improvement in efficiency of personnel
Actual annual burdened cost of worker
Avg number of workers in dept. using system
Annual Cost Savings
Better visibility of purchased product quality
Avg. annual number of purchase orders
Avg. P.O. amount
Annual Cost Savings
Better visibility of same vendor purchases
Avg. annual number of purchase orders
Avg. P.O. amount
Annual Cost Savings
Units
YR 1
10%
40,000
10
$
$
10.0%
43,076
10
43,076
1,000
51,250 $
10%
10%
512,500 $
1,000
52,531 $
10%
10%
525,313 $
1,000
53,845
10%
10%
538,445
1,000 $
52,531 $
10%
15%
787,969 $
1,000
50,000
10%
15%
750,000
750,000 $
1,290,000 $
1,322,250 $
1,355,306 $
1,331,521
40,000 $
10.0%
41,000 $
10
41,000 $
10.0%
42,025 $
10
42,025 $
10.0%
43,076
10
43,076
10
10%
30,000 $
- $
10
10%
30,000
-
43,076
0
10
10%
30,000
$
$
$
10
10%
30,000 $
- $
40,000 $
41,000 $
42,025 $
10.0%
41,000 $
10
41,000 $
10.0%
42,025 $
10
42,025 $
10.0%
43,076
10
43,076
10.0%
10,000
3
10.0%
10,000
3
10.0%
10,000
3
10%
40,000
10
10%
10,000
3
10.0%
42,025 $
10
42,025 $
$
10%
40,000
10
YR 4
10.0%
41,000 $
10
41,000 $
$
$
YR 3
1,000 $
51,250 $
10%
15%
768,750 $
500,000 $
1,000
50,000
10%
15%
Total Maintenance & Repair

Warehousing/Inventory Control
Est. improvement in warehouse/inventory worker productivity
Actual number of workers in dept. using system
Annual Cost Savings
Reduced Carrying Costs
Avg # parts per warehouse
Actual # warehouses
40,000 $
1,000
50,000
10%
10%
Total Purchasing
Annual Cost Savings
Placeholder
Actual
Actual
Estimate
Actual
Annual Cost Savings
$
$
YR 2
40,000 $
Page 53 of 78
Dept.
Description
Avg annual carrying cost per part
Annual Cost Savings
Total Warehousing
Units
$
YR 1
25.43
YR 2
$
76,290 $
116,290 $
YR 3
26.07
78,197
$
$
119,197 $
YR 4
26.72 $
80,152 $
122,177 $
27.39
82,156
125,232
Page 54 of 78
Dept.
Description
Logistics/ Shipping/ Receiving

Annual Cost Savings
Improvement in non-labor cost of work order handling
Actual avg non-labor cost per work order
Actual annual number of work orders
Annual Cost Savings
Reduce Premium Freight
Avg annual shipments
Actual avg. cost per premium shipment
Actual % of premium freight shipments
Annual Cost Savings
Units
YR 1
10%
40,000
10
54.29
20%
4,500
10,000
50.00
10%
25%
Customer Service & Order Mgt.

Avg annual number of workers in dept. using system
Annual Cost Savings
Increased accuracy of orders
Actual avg annual # customer orders
Avg annual % of orders that are incorrect
Actual % returns of incorrect orders
Avg cost to re-stock returns
Annual Cost Savings
Decreased customer complaint calls
Actual avg annual # customer complaint calls
Avg cost per complaint call
Annual Cost Savings
10%
40,000
10
2,200
10%
50%
85%
300
$
5,000
50%
25
$
Total Customer Service / Admin.

Information Systems
Est. avg improvement in IS worker productivity
Actual avg burdened cost of worker
Annual Cost Savings
Reduction in maintenance costs (consolidation)
55.65 $
20.0%
4,500 $
50,083 $
57.04 $
20.0%
4,500 $
51,335 $
58.46
20.0%
4,500
52,618
12,500 $
10,000
51.25 $
10%
25%
12,813 $
10,000
52.53 $
10%
25%
13,133 $
10,000
53.84
10%
25%
13,461
101,361 $
103,895 $
40,000 $
$
48,861 $
10%
40,000
10
109,155
40,000 $
10.0%
42,025 $
10
42,025 $
10.0%
43,076
10
43,076
$
28,050 $
2,200
10.0%
50%
85%
308 $
28,751 $
2,200
10.0%
50%
85%
315 $
29,470 $
2,200
10.0%
50%
85%
323
30,207
$
62,500 $
5,000
50%
25.63 $
64,063 $
5,000
50%
26.27 $
65,664 $
5,000
50%
26.92
67,306
130,550 $
133,814 $
$
$
106,492 $
10.0%
41,000 $
10
41,000 $
$
$
10.0%
43,076
10
43,076
Total Distribution
YR 4
10.0%
42,025 $
10
42,025 $
YR 3
10.0%
41,000 $
10
41,000 $
$
$
YR 2
40,000 $
10.0%
41,000 $
10
41,000 $
137,159 $
10.0%
42,025 $
10
42,025 $
140,588
10.0%
43,076
10
43,076
Page 55 of 78
Dept.
Description
Est. # decommissioned systems
Actual annual cost of software maintenance contracts per system
Actual annual cost of hardware maintenance contracts per system
Annual Cost Savings
Total Information Systems
Units
YR 1
3
10,000
30,000
YR 2
YR 3
3
10,250
$
120,000 $
160,000 $
30,750
123,000
YR 4
3
10,506
$
$
164,000 $
31,519 $
126,075 $
168,100 $
3
10,769
32,307
129,227
172,303
Page 56 of 78
Dept.
Description
Finance/ Accounting
Annual Cost Savings
Placeholder
Actual
Actual
Estimate
Actual
Annual Cost Savings
Units
YR 1
10%
40,000
10
10
0%
30,000 $
- $
10
0%
30,000
-
43,076
$
$
40,000 $
41,000 $
42,025 $
40,000 $
10.0%
41,000 $
10
41,000 $
10.0%
42,025 $
10
42,025 $
10.0%
43,076
10
43,076
$
$
10
0%
30,000 $
- $
10
0%
30,000 $
- $
10
0%
30,000
-
10%
40,000
10
0
10
10%
30,000
-
$
Year 0
40,000 $
10.0%
43,076
10
43,076
10
0%
30,000 $
- $
Total Human Resources
YR 4
10.0%
42,025 $
10
42,025 $
0
10
10%
30,000
YR 3
10.0%
41,000 $
10
41,000 $
$
$
Total Finance & Accounting

Human Resources
Annual Cost Savings
Placeholder
Actual
Actual
Estimate
Actual
Annual Cost Savings
YR 2
40,000 $
Year 1
41,000 $
Year 2
1,918,201 $
1,966,156 $
42,025 $
Year 3
43,076
Year 4
2,015,310 $
2,008,025

Year 0
Year 1
Year 2
Year 3
Year 4
(Insert actual cost savings sub-category quantification in this space.)
Page 57 of 78
Dept.
Description
Units
YR 1
YR 2
YR 3
YR 4
(Insert calculations in row bove to sum sub-categories of actual savings from rows in Level 3 section above.)
Page 58 of 78
Year 5
Page 59 of 78
YR 5
$
$
$
$
$
Total Improvement
10.0%
44,153
10
44,153 $
210,253
1,000
55,191
10%
10%
551,906 $
2,628,164
1,000
50,000
10%
15%
750,000 $
3,806,719
1,346,059 $
6,645,136
10.0%
44,153
10
44,153 $
210,253
$
$
10
10%
30,000
- $
44,153 $
210,253
10.0%
44,153
10
44,153 $
210,253
$
$
10.0%
10,000
3
Page 60 of 78
YR 5
$
$
Total Improvement
28.07
84,210 $
128,362 $
401,005
611,258
Page 61 of 78
YR 5
$
$
$
$
$
Total Improvement
10.0%
44,153
10
44,153 $
210,253
59.93
20.0%
4,500
53,933 $
256,829
10,000
55.19
10%
25%
13,798 $
65,704
111,884 $
532,787
10.0%
44,153
10
44,153 $
210,253
$
$
2,200
10.0%
50%
85%
331
30,962 $
147,440
$
$
5,000
50%
27.60
68,988 $
328,521
144,103 $
686,214
10.0%
44,153
10
44,153 $
210,253
$
$
Page 62 of 78
YR 5
Total Improvement
3
11,038
$
$
33,114
132,458 $
630,759
176,610 $
841,013
Page 63 of 78
YR 5
Total Improvement
10.0%
44,153
10
44,153 $
$
$
10
0%
30,000
- $
44,153 $
210,253
10.0%
44,153
10
44,153 $
210,253
$
$
10
0%
30,000
- $
44,153 $
210,253
210,253
Year 5
2,039,475 $
9,947,167
Year 5
Page 64 of 78
YR 5
Total Improvement
Page 65 of 78
Revenue Benefit Estimates

Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
(Insert high level revenue sub-category estimates in this space.)
Grand Total Incremental Revenue
### $
###
(Insert calculations in row above to sum sub-categories of high-level revenue estimates from rows in Level 1 section above.)
Page 66 of 78

Dept.
Description
Sales & Marketing

1
Increased revenue per order
1a
Avg. annual customer orders
Actual price per order
1b
Annual Revenue Increase
2
Improved close rate
2a
Avg annual # of customer orders
2b
Customer order price
2c
Avg annual close rate
2d
3
Shortened processing time for orders
3a
Annual customer orders
3b
Customer order price
3d
3e
Resulting incremental customer orders
4
Better efficiency for personnel who travel
4a
4b
Avg annual sales per rep
4c
Avg annual number of reps
5
Increase in Customer Retention
5a
Avg annual # of customers
5b
Average customer loss per year
5c
Average annual revenue per existing customer
5d
YR 1 Increased
Revenues
Units
2,200
2,000
5%
6a
6b
6c
7
7a
7b
7c
7d
8
Improvement in market share due to customer satisfaction

# of existing customers
Avg annual incremental customers
Average annual revenue per existing customer
Incremental Sales Leads passed by Customer Service
Actual leads passed per C.S. worker
Avg annual C.S. workers using new system
Avg annual % leads that turn into deals
Average customer order size
220,000
2,200
2,000
72%
10%
$
316,800
Annual Est. Change
2,200
2,000
10%
220
$
50%
$
440,000 $
Annual Est. Change
10%
50%
440,000
10
$
440,000 $
500
5%
8,800
10%
Total Sales & Marketing

6
Customer Service & Order Mgt.
6
$
$
YR 2 Increased
Revenues
22,000
1,438,800 $
YR 4 Increased
Revenues
YR 5 Increased
Revenues
Total Improvement
2,200
2,100 $
5.0%
231,000 $
2,200
2,205 $
5.0%
242,550 $
2,200
2,315 $
5.0%
254,678 $
2,200
2,431
5.0%
267,411 $
1,215,639
2,200
2,100 $
72%
10%
332,640 $
2,200
2,205 $
72%
10%
349,272 $
2,200
2,315 $
72%
10%
366,736 $
2,200
2,431
72%
10%
385,072 $
1,750,520
2,420
2,100 $
5.0%
121
254,100 $
2,541
2,205 $
2.5%
64
140,073 $
2,605
2,315 $
1.3%
33
75,377 $
2,637
2,431
0.6%
16
40,067 $
949,617
5%
484,000
10
242,000 $
3%
508,200
10
127,050 $
1%
520,905
10
65,113 $
1%
527,416
10
32,964 $
907,127
500
5.0%
8,800 $
10.0%
22,000 $
500
5.0%
8,800 $
10.0%
22,000 $
500
5.0%
8,800 $
10.0%
22,000 $
500
5.0%
8,800
10.0%
22,000 $
110,000
747,515 $
4,932,902
867,238
$
$
YR 3 Increased
Revenues
1,081,740
880,945 $
783,903
523
5.0%
26
8,800
229,900 $
521
2.5%
13
8,800
114,663 $
508
1.3%
6
8,800
55,826 $
488
0.6%
3
8,800
26,849 $
$
$
165
10%
10
10%
2,000 $
33,000 $
182
10%
10
10%
2,000 $
36,300 $
200
10%
10
10%
2,000 $
39,930 $
220
10%
10
10%
2,000
43,923 $
183,153
70,772 $
1,050,391
Annual Est. Change
500
10%
50
8,800
50%
440,000
150
10%
10
10%
2,000
Total Customer Service / Admin.

Year 0
30,000
470,001 $
Year 1
262,900
Year 2
150,963 $
Year 3
95,756
Year 4
Year 5
Page 67 of 78
Grand Total Benefit Sales, Mktg., C.S. & Admin.
1,908,801 $
1,344,640
1,031,907 $
879,659
818,287 $
5,983,294
Page 68 of 78

Dept.
Description
YR 1 Increased
Revenues
Units
YR 2 Increased
Revenues
YR 3 Increased
Revenues
YR 4 Increased
Revenues
YR 5 Increased
Revenues
Total Improvement
(Insert actual revenue sub-category quantifications in this space.)
Grand Total Incremental Revenue
### $
###
(Insert calculations in row above to sum sub-categories of actual revenue quantification from rows in Level 3 section above.)
Page 69 of 78
Page 70 of 78
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checked
checked
checked
checked
checked
checked
checked
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checked
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Page 71 of 78
Page 72 of 78
Page 73 of 78
Sample Benefits Identification Model

Financial Levers
Increase net
operating
profit after
tax (NOPAT)
(I/S)
Increase
gross
profit
Operational Levers
Increase price
Increase
revenues
Increase volume
EnterpriseWide
Value Creation
Profit-driven sales efforts:

Offer right mix
Improve tactical pricing management
Improve mix
Improve process
Decrease
manufacturing
costs
Reduce cost of materials
Optimal manufacturing processes

Most profitable capacity allocation/utilization
Improve plant utilization
Reduce
selling costs
Decrease
operating
expenses
Critical Success Factors
Increase productivity
Decrease staffing
Optimize scheduling
Reduce
distribution
costs
Optimize physical network

Decrease staffing
Use alternative
distribution
Lower
Customer Service &
Administration Costs
Reduce
administrative
costs
Lower I/S costs
Focus on high-profit accounts

Reduced sales management layers
Improved inventory flow visibility
Lower transportation costs
Higher facilities utilization
Less firefighting, more accurate planning
Better carrier evaluation /mgmt.
Improved Customer Service access to information
More consistent service
Faster problem resolution
Lower C.S. cost
Improved Admin. access to information
- Significantly lower G&A "overhead"
Lower Finance/Acctg. costs
Reduce
R&D
Improve
capital
allocation
(B/S)
Lower HR costs
Improve capital planning/

investment process
Capital
deployment
Reduce inventories
Reduce A/P increase A/R
Cost of
capital
N/A
Improved Supply Chain visibility

Improved order fill rates
Improved capital stewardship
Increased capital productivity
Reduced inventory investment & carrying costs
Reduced receivables investment
Page 74 of 78
Key Performance Indicators (KPIs)
# of lost customers
Avg cost per same size P.O.
# days to fill an avg order

# returns
$ per work order
Avg $ of premium frieght cost/order
# of complaint calls
# IS personnel
$ annual maintenance contract cost
Avg days for order fill

% of orders filled in less than 1 day
Page 75 of 78
Benefit Calculations
Sales & Marketing
Purchasing
Maintenance &
Repair
Warehousing/Inventor Logistics/ Shipping/

y Control
Receiving
Customer Service &

Order Mgt.
Information Systems Finance/ Accounting
HR
($/FTE) x FTEs
saved = Reduction in
labor
($/system/maintenan
ce agt.) x systems
consolidated =
Reduction in
maintenance contract
cost
Page 76 of 78
Glossary
Method/Metric
Definition/Brief Description
Net Present Value (NPV)
is the sum of the discounted (at the cost of capital) cash flows of the project.
Internal Rate of Return (IRR)
is the discount rate, which when applied to the cash flows of the project
produces a NPV equal to zero.
is the length of time required for the sum of the net cash flows of the project to
equal zero.
Payback Period (aka Breakeven)
Parameter
is an estimate or assumption provided as input.
tornado diagram
is a set of calculations and a chart summarizing the relative influence of

various parameters on the defined output cell.
Page 77 of 78
Use
To compare projects using a common cost of capital or discount rate. NPV does not explicitly reflect the uncertainty
of the cash flow forecasts.
IRR provides a uniform measure for evaluating different projects. It is a special case of NPV.
Used to compare projects in terms of time to produce positive nominal results. Many organizations will not
undertake projects which take longer than x years to "pay for themselves"
Allows user to tailor the business case template to the specific project at hand.
Provides preliminary analysis of the sensitivity or relative strength of influence of a parameter provided in 3 point
(Minimum, Best Estimate, Maximum) range. Allows easy visualization of parameters that carry the most influence in
a model's outcome. In the Business Case Template, NPV is typically used as the best measure of BCT outcome.
Page 78 of 78

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