Question

Assess the costs and benefits of a cloud CRM. A large food-processing company would like to determine the cost–benefit of installing a CRM app in a private cloud. Create a report that contains these analyses:

a. Calculate the tangible costs and benefits in a spreadsheet using the data provided.

b. List two intangible benefits of moving to the cloud.

c. Estimate the value of those two benefits and include them in your spreadsheet prepared for Question 1.

d. List two risks associated with the CRM app if it were moved to a public cloud.

Please answer using the following data in a spreadsheet:

Tangible Costs

• CRM in private cloud: $35 per user per month

• Technical support and maintenance: $250 per month• Total number of users: 100 (90 salespeople and

10 supervisors)

• Training of 90 salespeople for five days: productivity loss $200 per day per person

• Training of 10 supervisors for 5 days: productivity loss $300 per day per person

• Additional hardware, networks, and bandwidth: $15,000 per month

Tangible Benefits

• Increase in average sales revenues = $6,000 per month per salesperson

• Increase in sales revenues from an improvement in customer retention = $5,000 per month

• Gross profit from sales revenues = 20%

Answer 1