This assessment item relates to course learning outcomes numbers 1, 2 and 6 as stated on the course profile.
This part emphasises on the use of a DSS tool, and students are required to demonstrate proficiency with Visual DSS™ (a DSS development language/DSS generator).
Solve Questions 1, 2 and 3 using VISUAL DSS™.
YourCloud Pty Ltd is a cloud-based software development company located in Brisbane. The company is planning to introduce new responsive cloud based software application into the market. In recent times, the dynamic market competition has created some bad software investment decisions. Now senior management require a thorough analysis of every new product that is introduced to market. As a senior business analyst, you have been appointed to advise the senior management on the feasibility of the new product.
An initial analysis conducted by other analysts for the product claim the anticipated net present value (NPV) for the new product line is over $2 million and they have recommended the manufacture of the product based on this assessment.
Your task is to use a decision support system (DSS) and report to the senior management on whether the claim of the NPV being over $2 million is correct or incorrect using the relevant information given in Table 1.
Table 1: Summarised product details
|Cost of production: $25.00 per unit|
|Annual overhead cost: $210,000 (cloud hosting is outsourced)|
|Initial investment needed: $1,750,000|
|Estimated selling price: $55.00 per unit|
|Market at time of introduction: 420,000 units per year|
|Market growth: 15% per year|
|Market share: Most likely 10%|
|Assumed economically useful lifetime: 4 years, commencing 2018|
|Discount rate used to analyse new product proposals is 12%|
You need to assume that the overhead and initial investment occurs at the START of the respective year, profit occurs at the END of the year and initial investment was only applicable to the first year.
You are now asked to analyse the variations on the impact of market share, cost of producing, overheads and initial investment on the NPV. You need to conduct a risk analysis based on the information below:
The senior management decided on the following decision criteria:
Decision criteria: The company is unwilling to proceed if there is a 20% or greater chance that the net present value will be less than $1,000,000 (1 million).
When the above analysis reached the Chief Executive Officer (CEO) of your company, he became very concerned about the assumptions made in the model. His experience has taught him to consider the uncertainty associated with selling price and production costs more thoroughly. He required further analysis to be done by incorporating the following uncertainties to Question 1 model:
He applied different decision criteria and was willing to go ahead with the product proposal if there was at least an 80% chance the net present value would be greater than $1,850,000.
In this part, the students are required to demonstrate data validation by using Power BI.
Power BI is a business analytics service provided by Microsoft. It provides interactive visualizations with self-service business intelligence capabilities, where end users can create reports and dashboards by themselves, without having to depend on information technology staff or database administrators.
Download Microsoft Power BI Desktop from https://powerbi.microsoft.com/en-us/downloads/
Download Power BI sample files from https://github.com/apress/pro-power-bi-desktop Download, Zip
Open Microsoft Power BI Desktop. Use CarSales.xlsx as the Source Data. This is a worksheet of British car sales. Create the following on one Page Dashboard.
|Matrix||CountryName, ReportingYear, SalePrice|
Visit Queensland Government data. https://data.qld.gov.au/dataset
Search for: Advance Queensland Funding Recipients https://data.qld.gov.au/dataset/advance-queensland-funding-recipients
Select Committed Funding Recipients
Download the CSV file. Open Microsoft Power BI Desktop. Select the CSV as a source.
Create the following on one Page Dashboard.
|Pie Chart||Program, Count of Program|
|Stacked Bar Chart||Sector, Funding_Committed|
You are required to write a report to discuss how smart, connected products contribute to business analytics and transform companies by using business intelligence from a case study “How Smart, Connected Products Are Transforming Competition” (maximum 1,000 words).
The assignment is to be submitted as 4 separate files using the electronic assignment submission system that can be accessed from the link on the course website. The four files to be submitted are as follows: