Question: At Tune Source, new IT projects are reviewed and approved by a project steering committee that meets quarterly. The committee has representatives from IT as
At Tune Source, new IT projects are reviewed and approved by a project steering committee that meets quarterly. The committee has representatives from IT as well as from the major areas of the business. Carlys first step was to prepare a system request for the committee. The project sponsor is Carly, and the business needs are to increase sales and provide a music download capability demanded by a very competitive marketplace. Notice that the need does not focus on the technology associated with the project. The emphasis is on the business aspects: increasing sales and maintaining a competitive position in the companys market. In the system request, the project sponsor focuses on describing his or her vision of the business requirements at a very high level. Carly has expressed a clear vision of how this system will affect Tune Source: sales of individual music downloads, revenue from customer subscriptions, sales from crossselling of CDs, and sales of music download gift cards. Carly acknowledges customer demand for this capability and also recognizes the need to respond to this demand in order to retain the business of its loyal customer base. The estimates of tangible value were difficult to develop, since this venture is completely new to Tune Source. To prepare for this, Carly had several of her staff members conduct both an in-store customer survey and an online customer survey to assess the customers interest in individual music downloads, subscription programs, and gift cards. The surveys also attempted to gauge the customers price sensitivity for these offerings.
From the survey results, Carly and her staff developed a range of sales projections for the various revenue streams: a high-level estimate, a medium-level estimate, and low-level estimate. They also developed probability assessments for each of these outcomes, settling on a 25% likelihood for the high-level estimate, a 60% likelihood for the medium-level estimate, and a 15% likelihood for the low-level estimate. Based on the sales projections and the probability estimates, a weighted average estimated sales figure was computed for each revenue stream.
Based on the above scenario, prepare a systems request for this project. Fill in as much as possible based on the information provided.
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