Do we have answer for the above post? XYZ. is one of the worlds fastest growing biotechnology firms. In addition to performing basic research, the company provides several FDA-approved drugs. They have recently expanded into the genetically modified food market and energy market, as well. The company has over 30,000 employees today, having added almost 10,000 people last year alone. They predict that they will continue to grow in the future. They currently are headquartered in California and have offices in six other states and five other countries. They plan to open four additional offices next year. Part of the reason for the companys success has been their strong work culture. The companys founders wanted to focus on using science and innovation to improve peoples lives. They believe in hiring highly talented and motivated individuals who can work well on self-managed teams.

Due to their rapid growth, the CIO (David) and the VP (Liz) of Human Resources have both made this project a priority to help manage the companys workforce. Their current system is not working well for doing basic functions like applicant tracking, new employee orientation, benefits management, employee security, compensation, etc. There are several decentralized systems various managers use for managing their people currently, including software to help assign people to various projects. The main goal of this project is to provide one centralized yet flexible system to more effectively manage all of Biotech, Inc.s people. Senior managers believe it will take about one year and $1 million for this important project. They also feel it would be best to purchase an existing application and tailor it, as needed.

David and Liz formed a search committee to find the best candidate for managing the Human Resource Management System Project. Since this was a high priority project that should be completed in one year, they felt it was appropriate to go outside the company in this case. After reviewing many strong candidates, they decided to hire You to manage this critical project. You worked for a consulting firm where you had successfully implemented several human resource systems in large organizations. They knew they were paying a premium for yours contract, but a lot was at stake. David and Liz agreed to be joint project sponsors. They would let the new project manager, You, form the rest of the project team.

Tasks

1. Develop a Business case for the project. Use the template provided in Template folder 02_Business Case and Financial analysis. Be as specific as possible in the various sections. Assume some of the main functions this system must provide include applicant tracking, new employee orientation, benefits management, employee security, and compensation. The sponsors want the system to be able provide team-based, awards and assist in making team assignments across the organization. Liz, the VP of HR, would also like this project to consider providing professional development management and tracking, too, so they can make sure their people stay abreast in their fields and continue to develop their skills.

For Sections 1 and 3, include your findings (citing at least three references) from briefly researching the biotechnology market, including applications in the medical field, food industry, and fuel/energy areas. Who are some of the key players in this industry? What are some of the largest markets for biotechnology products and services? Also include information from briefly looking at systems that help manage human resources. How do large companies use information systems to help manage their resources? Who are some of the popular suppliers of this type of software? What are some of the functions these systems perform?

Senior managers now want to see some high level financial analysis for this project to help them make some important decisions on functionality and system life:

• Assume it will cost $1 million in year 0 to provide the basic software functionality required (software license and software development).
  • If you add the ability to make team assignments across the organization and professional development management and tracking, it will cost an additional $500,000 in year 0.
• Maintenance costs each year are estimated to be 20% of the initial investment cost.
• Assume the benefits of the basic system are conservatively projected to be $500,000 each year for the life of the system.
  • Assume the benefits would be $700,000 each year for the life of the system with the added capabilities.
• Assume a three-year system life and discount rate of 8% in calculating the ROI, NPV, payback period and IRR.
  • Use the same information but assume a 5-year system life.

kindly fill the financial analysis template