iv.

Economic/Cost-Benefit Analysis
To see the cost-benefit analysis of the proposed system:
COSTS OF THE NEW ONLINE SYSTEM BENEFITS
System Development and Average costs incurred by
Installation 125,000 the Current System 184,679

Projected costs incurred 72,780

System Maintenance 3,000 by Proposed System

Utilities 6,100

TOTAL COSTS 134,100 BENEFIT 111,899

For a more detailed computation:

System Development- To build and develop a suitable online service appointment

system, the company will hire a system developer from the Company of Geneca. This
company requires the developers to be paid with an amount of Php 28,000 monthly.

AKCL is a pioneering company thus, the company agreed to pay Php 30,000 monthly
for 3 months and 3 weeks and will have a separate payment for the system’s
installation. According to the agreement between the system developer and the
company, the rate oof the system shall depend on the number of hours the developer
worked on building the system.

Php 187.5 (hourly rate)

x 8 hours per day

Php 1,500 per day

Php 1,500 per day x 5 days a week = 7,500 per week

Php 7,500 per week x 4 weeks a month = 30,000 a month
Php 30,000 x 4 months = Php 120,000

or
Php 7,500 x 16 weeks (excluding installation week) = 120,000
https://www.glassdoor.com/Salaries/manila-software-developer-salary-
SRCH_IL.0,6_IM995_KO7,25.htm (Accenture Software Developer salaries)

System installations- This process depends on the number of workers hired to install
the system and examine its effect and sustainability on the company’s operation.

Number of persons= 1 x

Payment per day = 1,000

Number of days = 5 working days

Php 5,000

Total System Development and Installation is Php 125,000

System Maintenance- This is necessary to sustain the capability of a system to provide

a better service and helps the system to run more smoothly as well as reduce risk of
them breaking down. According to WebFX, monthly system maintenance starts at Php
250 monthly.

When computed yearly

Php 250 x 12 months = 3,000

The total system maintenance paid for the year is amounting to 3,000
Price reference:

https://www.webfx.com/website-maintenance-pricing.html

Utilities- To compute for the total amount paid under utilities, especially that electricity
has been used throughout the system development, Meralco’s standard Php 8.9071 per
kWh for the online transactions is used.
Php 8.9071 per kWh x 8 hours = 71.2568 per day

Php 71.2568 x 5 (working days a week) = 356.3 a week

Php 356.3 a week x 17 weeks = Php 6,057.1 rounded to 6,100

Price reference:

https://cnnphilippines.com/news/2021/7/9/Meralco-July-2021-rates.html
The total cost or investment on the new online service appointment system is
Php 134,100

For the computation of the benefit, one must find the average costs incurred from from
when the current system was in use and projected costs from when the new online
system was already installed.

To begin with, the table below shows the average costs incurred by the current system
in its operations. This is when the proposed system has not yet been installed.

AVERAGE COSTS OF THE CURRENT SYSTEM

COSTS PRICE (Php)
Office Supplies 14,160
Utilities 79,752
Sony UHD 65-inch, 4K Ultra 55,000
HD Android TV
Converge FiBer X 2,500
Canon Pixma TR8520 8,618
Wireless
Ink Set 13,650
Computer 10,999
TOTAL AVERAGE COSTS 184,679.16

A detailed description of the costs:

Office Supplies- The Current System makes use a great number of office supplies that
are used yearly.

Bond Papers (HARD COPY) Php 160 per ream

Php 160 x 4 (number of reams used per month) = Php 640

Php 640 x 12 (yearly cost) = Php 7,680

Price reference:

https://shopee.ph/product/315482291/7878284633?smtt=0.436628724-1634370729.9

Panda Crystal Pens costs Php 105 for a set of 25 pieces.

Php 105 x 4 (number of pen sets per month) = Php 420

Php 420 x 12 (yearly cost) = Php 5,640

Price reference:

https://shopee.ph/product/127484950/9112540715?smtt=0.436628724-1634372617.9

Markers Php 35 for a set of 12 pieces

Php 35 x 2 (sets of markers used per month) = Php 70

Php 70 x 12 (yearly cost) = Php 840

Price reference:

https://shopee.ph/product/315475459/7769660597?smtt=0.436628724-1634373373.9

Total Office Supplies: Php 7,680 + Php 5,640 + Php 840 = Php 14,160
Utilities- According to Expatistan, the average amount of a utility bill in the Philippines
is Php 6,646.
Php 6,646 x 12 (yearly cost) = Php 79,752

Price reference:

https://www.expatistan.com/.price/utilities/manila

Sony UHD 65-inch, 4K Ultra HD, Android TV- This is used to cater students to the
different learning styles, by offering a unique combination of sight, sound, motion and
emotion, which can give the students a greater understanding of the world around them.
Cost around Php 55,000.

Price reference:

https://www.lazada.com.ph/products/sony-uhd-65-inch-4k-ultra-hd-android-tv-
i1825842462-s77
61666813.html?exlaz=d_1:mm_150050845_51350205_2010350205::12:12598959962!
121452
561322!!!pla-297612067635!c!297612067635!7761666813!
388356792&gclid=CjwKCAJw*KmL
BhB8EiwAQbqNoLQWFxISZ9q5dRGLTO0mZq4iXTqS6_7JY1LHVBZfhC8HM8_D0JCN
phoCk
R4QAvD_BwE

Converge FiBer X- Php 2,500 installation fee, a great WiFi connection will benefit the
teachers as well as the students from a variety of factors that will speed up the learning
process.

Price reference:

https://www.google.com/url?sa=i&url=https%3A%2F%2Fshopee.ph%2FCONVERGE-
FIBER-INTERNET-i.343330744.9656203594&psig=AOvVaw14-
40t1djjKEGJpNFd_fum&ust=1634463046357000&source=images&cd=vfe&ved=0CAsQ
jRxqFwoTCKDM1rTPzvMCFQAAAAAdAAAAABAD
Canon Pixma TR8520 Wireless- Is utilized for producing forms and other papers
needed in the operations, with a price of approximately Php 8,618

Price reference:

https://www.google.com/shopping/product/18348418227603244596?q=best+printer+
price&sxsrf=AOaemvKtp-rrZ_Fuv0b8TaPhMfnXK4iyhA:1534377568963&biw
=2048&bih=962&dpr=0.94&prds=eto:7338033977652718770_0,rsk:PC_917083126333
331355&sa=X&ved=0ahUKEwiS98n00s7zAhWpyosBHXLlDRoQ8wII6wc

Ink Set- Used as a fuel for the printer with a price of approximately Php 4,550 per set.

Php 4,550 x 3 (Ink used yearly) = Php 13,650

Price reference:

https://www.google.com/url?url=https://www.galleon.ph/product/detail/41203425&rct=j&
q=&esrc=s&sa=U&ved=0ahUKEwiP_dD81M7zAhUzKqYKHT5aBGIQ2SkI7AM&usg=A
OvVaw0eIfoxTzLN7AG8Kmk__6XA

Computer Set- Used for encoding, printing, and for projection with a price of
approximately Php 10,999

Price reference:

https://www.google.com/url?url=https://shopee.ph/FUNHOUSE-Intel-G5420-8G-
Memory-240G-SSD-24-Inch-Curved-Monitor-Free-Keyboard-Mouse-a-set-of-Desktop-
i.199257947.5045414784&rct=j&q=&esrc=s&sa=U&ved=0ahUKEwiZysnv1c7zAhWRfd4
KHUmTAfkQ2SkI5gM&usg=AOvVaw2FC23eW4d4XWujiT6ibPO5

Thus, the Total average cost is Php 184,679

To compare the projected costs to be incurred when using the proposed system:
Projected costs when using the proposed system
 Cost Price (Php)
Office Supplies 6,780
Utilities 36,000
Internet Fee 30,000
Total Projected Costs 72,780

Office Supplies- The system is conducted online, so therefore, office supplies usage
decrease thus cutting costs incurred by the company.
Bond Papers- Since the proposed information system is online, pen-and-paper is
reduced, thus instead of using four reams of bond paper a month, the company decided
to use only two. Still, the company incurs its bond papers from the same supplier at the
same price.
Php 160 x 2 (number of ream used per month) = Php 320
Php 320 x 12 (yearly costs) = Php 3,840

Panda Crystal Pens And Markers- Instead of buying multiple sets of pens and
markers, the company also reduce the supply of it to two sets of pens and one set of
markers for monthly supplies from the same supplier at the same price.
Pens
Php 105 x 2 (number of pen sets per month) = Php 210
Php 210 x 12 (yearly costs) = Php 2,520
Markers
Php 35 x 12 (yearly costs) = Php 420

Total Office Supplies: Php 6,780

Utilities- Since the AKCL company is online platform, many usage of appliances and
machines will be reduced, because of this, utilities have decreased to Php 3,000
Php 3,000 x 12 =Php 36,000

Internet- Since AKCL is online based, it needed a strong connection of internet. The
internet connection is supplied by converge fiber x plan that costs Php 2,500.
Php 2,500 x 12 (yearly costs) = 30,000

Total Projected Incurred Cost In Online System is Php 72,780

To get the benefit or saved costs:

Php 184,679 (Average Costs incurred without the new online system)
-Php 72,780 (Projected Costs incurred with the new online system installed)
Php 111,899 is the benefit or profit

v. Return on Investment

To compute for the Return on Investment (ROI), the net profit composed of the
revenue minus the cost should be divided by the total investment multiplied by 100%.

Return on Investment = Net Profit

Total Investment x 100%
Net Profit = Revenue – Maintenance and Costs
Net Profit = 111,899.16 (Profit) – 72,780 (Projected costs to be incurred in the proposed
system)
Net Profit= 39,119 39,119 (Net Profit)
Return on Investment =
x 100%
134,100 (total investment)
= 0.29 x 100%

Return on Investment = 29%

The Return on a Php 134,100 Investment is 29%

vi. Payback Period

The cost of Investment in the new online Information System is 134,100. The
computed annual earning, on the other hand, is 111,899 while the projected annual cost
to be paid in utilizing the new online system is 72,780.

To compute for the payback period, the initial investment is to be divided by the
annual net cash inflow. To get the annual net cash inflow, annual cash outflow is
subtracted from annual cash inflow.

Initial Investment
Payback Period =
Annual Net Cash Inflow

Annual Net Cash Inflow = Annual Cash Inflow – Annual Cash Outflow
Php 111,899 (Annual cash inflow) – Php 72,780 (Annual cash outflow) = 39,119 (Annual
Net cash inflow)
Payback Period =
134,100 (Initial Investment)
38,119 (Annual net cash inflow)
Payback Period= 3.43 years or 3 years and 5 months

It will take 3 years and 5 months before the company recovers its investment.

vii. Benefits

a. Tangible – This section of the paper elaborates more on the benefits discussed
specifically the tangible ones.

Average costs incurred in the current system and projected costs incurred in the
new online information system – this computation measures how costs and expenses
are saved once the online information system has already been installed. The current
system has a total cost of Php 184,679 while the newly installed online system amounts
to a lesser cost of Php 72,780.

To compute the Tangible Benefit:

Php 184,679 (Average costs incurred in the current system)

– Php 72,780 (projected costs incurred in the online system)
Php 111,899 (Tangible Benefit)
b. Intangible- referred as the ones that do not have a monetary value but are as
important as the tangible ones.

Easier access of Information- Online system organizes information, well kept and

much easier to access and because of the automated system, information processing

becomes more direct and accurate.

Increase in Employee Morale- According to Matchr, online system can increase

employee morale and sometimes even help reduce turnover.

Increased Student’s Satisfaction- According to TandF, satisfaction with online

learning is a significant aspect of promoting successful educational processes.

Students’ responses to the open-ended questions were analysed using the thematic

analysis method. The response rate was 97.8%. The highest areas of satisfaction for

students were communication and flexibility, whereas this proposed online system will

be a great platform for sped students wherein they will be able to communicate

comfortably in their own spaces.

Less Processing Errors- According to Yin, an online system can reduce errors

committed by manual systems utilized beforehand. The automated systems becomes

much more accurate and direct, hence, there will be less processing errors.
Reduces Waiting for information- according to Matchr, online system reduces the

amount of time that both staff and student has to wait for information about some

important aspects. Online system may also include scheduling functions, allowing

employees to access schedules as soon as they are available.

Design

a. decomposition diagram

Service Appointment
System

1 2 3 4

Academic Transcript Online Registration Course File User Management

Management

Course Grade Data Upload Course Add data

Input Registration File user
Input

Transcript Course Upload

Assignment Edit data
Release Approval user
File

Delete
data user
b. context diagram

Student Application
STUDENT
Schedule and Information

Course offered &

Schedule of Student
FACULTY
Requirements

REGISTRAR
Student Data
Statistics & reports

ADMISSION PORTAL
c.