Measurable Organizational Value

The Martial Arts Academy Information System Project will increase the number of
classes students attend per week by 20% within 6-months.
The Martial Arts Academy Information System Project will increase operational
efficiency and effectiveness lowering administration time by 50% within 6-months.
Area of Impact

Operational
o More efficient processes
o More effective processes
Financial
o Increased Revenue
Lower Costs

Alternatives
Descriptions of the selected alternative
A. Base Case: MAA will keep the current paper-based system and try to improve on
the effectiveness and efficiency. The goal would be to limit instructor errors on the
card system.
B. Purchase a Martial Arts School Management Software package: MAA will
purchase a software package out-of-the-box. Paying a monthly fee for up-keep of
the database, service of the system, and any additional support. Additional features
are already included in package and will be ready for install within a few weeks of
order. Rainmaker is the recommended software package of choice.
Estimated ROI for (6-month time period) 54%
C. Build a stand-alone database management system: MAA will hire
developers to create a custom software package to replace the paper-based card
system to improve operational efficiency and effectiveness. To keep costs lower
additional features may not be added within the first 6-month timeframe.
Estimated ROI (6-month time period) - NEGATIVE 71%
Note: The developmental up-front costs cannot be paid back within the 6-month
time period. Even though the overall benefits may exceed the other alternatives it
will take longer to recoup the initial investment.
RECOMMENDED SOLUTION
It is recommended by the project team to invest in the RainMaker software package.
With low-upfront costs and additional support included during the transition from
the paper-based system to the IS system this is the preferred choice. It will
effectively meet the MOV in both areas of impact with little risk. The service can be
cancelled at any-time and has a free 30-day trial without any upfront fees. The

strategic goal of increasing operational effectiveness and efficiency will be met with
this system that will help eliminate administrative error and hourly costs. The
system will also benefit customer satisfaction with less time needed to sign-up
students, record information, and determine when students will need their next test.
An additional benefit of the software is its data-analytics tools which will help
determine future strategies in marketing, operations, and finances. See project
comparison and costs for further detail on specifics.
TOTAL BENEFITS OF OWNERSHIP:
Alternative A: Base Case
1. No up-front or additional costs
2. Instructors and students know process
Alternative B: Buy Software
1. Pre-package and used by other Martial Arts Academies
2. Training and setup included for all staff
3. Decrease administration time for instructors
4. Increase operational errors and customer satisfaction (Increase class attendance
per week)
5. Increase instructor attentiveness with students (more time for instructing more
black belts)
6. Data analysis Increase awareness of students wants and needs to pin-point
organizational strategies
7. Revenue Increase
Estimated Classes Attended (6-month time period)
Current Student 35 students
Average 6 months at 2 classes a week at an average of $450.0
2 Classes * 4 = 8 classes/Month * 6-months = 48 Classes/6-months
Estimated Classes Attended with 10% Increase (6-month time period)
9.6 Additional classes in 6 months * $4,160 Benefit
8. Cost Savings 50% decrease in administration costs.
Current Admin Time $12,960 / 6 Months
With new system $6,480 / 6 months
SAVE $6,480 / 6 months

Alternative C: Develop Software

1.
2.
3.
4.

Customer software specs specifically to our Academy

Decrease administration time for instructors
Decrease operational errors from instructors
Increase customer satisfaction (Increase class attendance per week)

5. Increase instructor attentiveness with students (more time for instructing more
black belts)
6. Data analysis Increase awareness of students wants and needs to pin-point
organizational strategies
7. Revenue Increase
Estimated Classes Attended (6-month time period)
Current Student 35 students
Average 6 months at 2 classes a week at an average of $450.0
2 Classes * 4 = 8 classes/Month * 6-months = 48 Classes/6-months
Estimated Classes Attended with 10% Increase (6-month time period)
9.6 Additional classes in 6 months * $4,160 Benefit
8. Cost Savings
Current Admin Time $12,960 / 6 Months
With new system $6,480 / 6 months
SAVE $6,480 / 6 months
RELEVANT CASE NOTES:
Currently has 35 students
60 Minute classes (each with a specific amount per week
Pay testing fee for test - $20.00
Discounts for increase in classes attended
36 class hour minimum before next test.
ERRORS instructor does not circle initials but is corrected
1 out of 100 students who enroll earn black belt
Competition other martial arts schools and kid activities.
TOTAL COSTS/ PROJECT COMPARISON/ ROI Attached in Excel
Assumptions and references
SOFTWARE DEVELOPER HOURS:
http://www.peopleperhour.com/freelance/software+developer
http://www1.salary.com/Software-Engineer-I-hourly-wages.html
SOFTWARE DEVELOPMENT PROJECT TIMES
http://www.qsm.com/blog/2014/typical-software-project-over-time
RAINMAKER SOFTWARE INFORMATION - $197/ Month
https://addmembers.com/rainmaker-pricing/