Client

Information System
Implementation
Proposal

Information system implementation proposal

Client: SPORTS GO

CONFIDENTIAL 1
Document and information reviews

Document History:

Version Data Author Description

1.0 29-10-2020 Astrea Updating the cover and the

company presentation.
1.1 05-11-2020 Astrea Updating the team members.

1.2 19-11-2020 Astrea Fulfilled and updating the

following topics:
1.Introduction
2.Scope
2.Proposal Solution

1.3 26-11-2020 Astrea First draft of the topics 4 to 6.

1.4 05-12-2020 Astrea Fulfilled and updating the
sections 4 to 7.
2.0 13-12-2020 Astrea Updating the section 7.

Distribution list:

Name Firm

João Martins Astrea

Mafalda Antunes Astrea
Patrícia Torres Astrea
Eva Casal Astrea
Rodrigo Marcelino Astrea

CONFIDENTIAL 2
SUMMARY

1 Introduction.....................................................................................................................................
4

2 Proposal scope ........................................................................................................................... .

7

3 Proposed solution ......................................................................................................................

8

4 Project scope ...….......................................................................................................................

11
4.1 Phases and activities.............................................................................................................
11
4.2 Planning………....................................................................................................................... .
13

5 Project organization .................................................................................................................

14
5.1 Team ....................................................................................................................................
14
5.2 Requirements to begin project
……..........................................................................................15

6 Responsibilities and assumptions….................................................................................................

16
6.1 Responsibilities....................................................................................................................
16
6.2 Assumptions …......................................................................................................................
17

7 Costs and billing ….

…………...............................................................................................................18
7.1 Costs ..…………….......................................................................................................................
18
7.2 Conditions and payment Plan.................................................................................................
24
7.3 Copyright and validity of the proposal .....................................................................................
25

8 Signatures
….....................................................................................................................................26

CONFIDENTIAL 3
CONFIDENTIAL 4
1 Introduction
After the previous contacts between SPORTS and Astrea we hereby respond to the request
made to present a proposal to provide professional services to clean, design and implement a new
Information System to support the SPORTS GO chain stores.

We would like to thank for this opportunity, submitting this proposal and assuring that the
services offered here will be the subject of our best attention during all project.

Background and Objectives

The conducted analysis of the current business cases across the company enabled us to
design the main processes flows where an innovation digital transformation is required.

This overall view of how the company works let us understand the functional and technical
debts that employees and customers are now facing and represent several risks to the company.

Telephone Order Management

Functional/Technical Debts Risks/Business Impacts

 Time consumed by Telephone Operators to enter phone  Miss the customer phone call.
number in Excel and check the customer data.  Customer data maintained in silos since
there is no integration with register done in
Website/Front Stores.

 Time consumed by Telephone Operators to register the  Order data maintained in silos.
request in the Excel file.  No integration with registers done in
 Telephone Operators has no access to centralized Website/Front Stores.
information.

 Time consuming by Telephone Operators to print  Request/orders can be lost/delayed

request/order information.  Paper and printer costs
 Not possible to track the requests

 Time consumed by Managers (in stores), Designers and  Request/orders can be lost/delayed
Sellers to receive personally the request/orders information in
paper.
 Requests/Orders management is difficult since there is no
priority definition

 Order is not possible to be tracked by Managers and  Request/orders can be lost/delayed

Customers once it is delivered in Post Office

 No Real-Time Inventory Management  Overstocking or under-stocking of inventory

 Time consumed by Managers (in headquarter) to centralize  Decisions made supported by wrong
the request/order info sales/stock data.
 Susceptible to errors  Data privacy/Security issues regarding the
 No Real-Time Inventory/Sales Management Box cloud
 Overstocking or under-stocking of inventory
 Mismatched of marketing and selling
strategies

 Design concept of products based on the feedback from  Product offer can be biased
customers who call the Telephone Operators (not general
consumers)

 Sellers have no detailed information to support customers'  Product recommendations/support might

purchase decisions not be appropriated
 No direct access to Costumer profile  No customer satisfaction/retention/loyalty

CONFIDENTIAL 5
Website Order Management

Functional/Technical Debts Risks/Business Impacts

 Customers cannot access to the Web shop by a mobile app  No customer satisfaction/retention/loyalty
 Customers cannot track the order status on the website

 Time consumed by Telephone Operators to update orders  Customer and orders data maintained in silos
Info from a proprietary web system to the Excel file since there is no integration with register done in
 No Real-Time Inventory Website/Front Stores
 Susceptible to errors  Overstocking or under-stocking of inventory

 Time consumed by Managers (in headquarter) to centralize  Decisions made supported by wrong
the request/order info sales/stock data.
 Susceptible to errors  Data privacy/Security issues regarding the
 No Real-Time Inventory/Sales Management Box cloud
 Overstocking or under-stocking of
inventory
 Mismatched of marketing and selling strategies

Front Stores Order Management

Functional/Technical Debts Risks/Business Impacts

 No customer satisfaction/retention/loyalty
 Sellers support customer purchase decisions based on their
 The own branded products might not have
own experience since there is no data models for cross- and up-
enough visibility to customer which represents low
selling
margin in sales revenue.

 Time consumed by Managers to check orders with money

received and POS receipts  Decisions made supported by wrong
sales/stock data.
 Data privacy/Security issues regarding the
 Time consumed by Managers (in headquarter) to centralize
Box cloud
the request/order info
 Overstocking or under-stocking of inventory
 Susceptible to errors
 Mismatched of marketing and selling strategies
 No Real-Time Inventory/Sales Management

Stock Management

Functional/Technical Debts Risks/Business Impacts

 Time consumed by Managers (in headquarter) to register the
stock information of the products received from the suppliers  Overstocking or under-stocking of
and manual decide what should be delivered to other stores via inventory
post mail based on the received stock information

 The stock own branded products, which have

 There is no inventory information of the own branded
products received from partners until they are stock-out
higher margin of profit, will be replenished only
they are stock-out. Since it takes time to produce
by partner the sales margin will decrease since
only products from suppliers (lower margin) will
be available in Stores.

 Time consumed by Managers (in headquarter) to centralize  Decisions made supported by wrong
the stock information from all stores sales/stock data.
 Susceptible to errors  Data privacy/Security issues regarding the
 No Real-Time Inventory/Sales Management Box cloud
 Overstocking or under-stocking of
inventory
CONFIDENTIAL 6
  Mismatched of marketing and selling strategies

Production Management

Functional/Technical Debts Risks/Business Impacts

 The new products designed are based on the customer  Own branded product line might the
feedback who called to the Telephone Operators. biased.
 There is no possible of customer who purchase only in the
Web shop and/or Front Store provide feedback (reviews,
complaints, request, …)

 Products to be prototyped are decided only by the CEO  Own branded products might not fulfil the
vision. overall customer’s needs.
 There is no possibility to collect/analyse customer feedback
or similar/related products prototyped before.

 Products to be produced are decided only by the CEO vision.  No customer satisfaction/retention/loyalty
 There is no way to evaluate the possible retention of
customers to the products to be created.

 Campaigns are launched by CEO without any marketing  The investment on the new products might not
support. be reflected in profit to the company.

Retail Stores Order Management

Functional/Technical Debts Risks/Business Impacts

 Time consumed by Managers (in headquarter) to create the  There is no tracking of the payment transfer
Invoice from the Retails stores

 Time consumed by Managers (in headquarter) to store all  Decisions made supported by wrong
information regarding products and sales info send monthly by sales/stock data.
Retail Stores  Data privacy/Security issues regarding the
 Susceptible to errors Box cloud
 No Real-Time Inventory/Sales Management  Overstocking or under-stocking of
inventory
 Mismatched of marketing and selling strategies
in the retails business

CONFIDENTIAL 7
2 Proposal scope
The present agreement become effective after the last signature date and represent the
mutual agreement between the SPORTS GO and the Astrea, in order to consolidate the proposal for
the design and development of the new Information System to support the bicycles chain stores.

Therefore, it includes in the proposal the following services:

 The system will allow users to place and track orders through the company’s mobile app or
website;

 The staff will also be able to receive the orders through the app or website and update their
status to the clients;

 Stock management can also be done via app or website;

 Each customer will be able to create an account to log into the system, which will make the
processes of order and payment easier since the system is able to save the customer’s info;

 The platform can be used as guest;

 The design will be minimalistic and simple, making it very easy to navigate through.

CONFIDENTIAL 8
3 Proposed solution

In this chapter we present the solution description that we propose to be implement based
on the high-level requirements identified with the SPORTS GO.

The solution we chose is SAP Business One with the modules of ERP and CRM and then for
the Commerce System, SAP Commerce Cloud.

During the solution implementation we will always have in mind the objective of obtaining a
reliable, secure, scalable, and high-performance system, with an easy installation, administration,
operation, and use.

According to the needs identified, we consider that the solution can be divided into the
following modules, as shown in the diagram below and described thereafter:

CONFIDENTIAL 9
Features

The modules presented are described by presenting their main features to be developed or
delivered under this project.

User Management System

Main Functionalities To Whom

 Automate process that recognizes (if exists) the
customer phone number and automatically returns
customer data.
 Centralized system where Customer data can be easily
created, updated, and accessible by all employees and
deleted (if required by customer - GDPR compliance)
integrated with website/front stores.
 This system will support/help the telephone operators
answering phone calls.
 This system will improve the way how the telephone
operators update orders Info saved in a proprietary
web system.

Order Management System

Main Functionalities To Whom

CONFIDENTIAL 10
  A centralized system where Telephone Operators can
maintain the customer requests (leads, complaints,
etc) and cross them with requests from website/front
stores.
 A system that enables Telephone Operators to
support customer journeys in the web shop.
 A system that enables Telephone Operators in real-
time to check the stock available and processes the
requests/orders by forwarding them to the
responsible according to the customer needs.
 A system that enables Managers (in stores) to have a
dashboard to track the new requests in real-time and
prioritize work based on customer needs.
 A system that enables Managers (in
stores)/Designers/Sellers to have a dashboard to
provide the status of the orders in preparation in real-
time.
 A system that enables Customer to track their orders
status once they are delivered in Post Office.
Stock Management System
Main Functionalities
 A system that automatically updates the products
stock based on the requests delivered by the
Managers in real-time.
Marketing System
Main Functionalities
 A system that enables Designers to evaluate the
customer feedback to prototyped products
 A system that enables Sellers to perform appropriate
recommendations (cross- and up-selling) based on
predictive models that consider the customer data
and his order history.
 Create social media accounts in diverse networks to
advertise the company
Website
Main Functionalities
A Website that can be accessible by a mobile app
A Website that enables customer to check the order
status, order history, receive product recommendations,
provide feedback in a review section and a live chat help
CONFIDENTIAL
 This system will support/help managers (stores) to
receive the request/order info.
 This system will support/help managers (stores) to
receive the request/order info.
 This system will support/help managers (stores) to
receive the request/order info.
 This system will support/help managers (stores) to
receive the request/order info.
 This system will support/help managers (stores),
designers and sellers to receive the request/order
info.
 This system will support/help managers (stores) to
receive the request/order info.
To Whom
 This system will support/help managers (stores) and
managers (headquarters) to receive and centralize
the request/order info.
To Whom
 This system will support/help designers to receive
and centralize the request/order info.
 This system will support/help sellers to receive and
centralize the request/order info.
 This system will support/help the CEO to launch
campaigns.
To Whom
This system will support/help the customer to place the
order in Website.
11
 support

Billing Management System

Main Functionalities To Whom

 A system capable of POS WinSig integration for all  This system will support Managers (in stores) to make
stores. At the end of the day, after the store is closed, the processing of the sales registers.
a file is generated with all of day sales. This file will
automatically be uploaded to ERP system.

 A system capable to ensure that the information to  This system will support the Managers (in
create an invoice is provided via an electronic headquarter) to manage the Retail Stores’ Invoices.
message from the retailers’ system to us in order to
create an invoice upon manager’s approval. If the
retailers’ system is unable to provide this message, an
invoice template will be provided so it could be
uploaded in our system.

4 Project approach

This chapter describes the approach and the planning proposed by the Astrea for this project,
detailing the main phases and activities to be done.

We reinforce that the project realization does not depend solely on the Astrea, being
fundamental that SPORTS GO comply with their responsibilities, carrying out a set of activities that
are absolutely necessary and critical to the overall project success.

4.1 Phases and Activities

Analysis and Design

CONFIDENTIAL 12
 Understanding of the business flows and the current functional and technical debts faced by
Sports GO as well as the respective risks and business Impact;

 Meetings with Sports Go employees, in order to define the Business needs and the Functional
Requirements as part of the project Scope;

 Research about solutions available in the market to improve and update Sports GO Information
Systems and the modules that could be implemented to fulfil the desired features;

 Detail the features requirements (main functionalities) and the business expectations (to
whom);

 Considering the risks identified, the following implementation priorities of the systems were
defined:

1º
Ord
er
Man This system intend to support/help managers (stores), designers and sellers to receive the request/order info.
age
men
2º
t
Stoc
Syst
k
em This system will support/help managers (stores) and managers (headquarters) to receive and centralize the request/order
Man info.
age
men
3º
t
Billi
syst
ng
em This system will support the Managers (in headquarter) to manager the Retail Stores’ Invoices.
Man
age
men
4º
t
User
Syst
Man
em This system will support/help the telephone operators answering phone calls and improve the way how they update orders
age Info saved in a proprietary web system.
men
t
Syst
em
5º This system will support/help the customer to place the order in Website, improving customer satisfaction.
Web
site

6º
Mar This system will support/help designers and sellers to receive and centralize the request/order info, as well as support/help
keti the CEO to launch campaigns
ng
syst
em

 The effort to integrate the different information systems proposed also needs to be planned;

Development

 This digital innovation is going to

be achieved with the implementation of the proposed
Information Systems defined to meet the functional
requirements needed;

 Following an Agile Software Development values that aims

to encourage the customer collaboration and the responding to change capacity of the
development team, an appropriate information system development methodology was
selected for this phase. Therefore, the Scrum methodology is proposed for this development
phase since it will enable the re-planning of the backlog requirements according to the
customer needs along the project;

User Acceptance Testing

CONFIDENTIAL 13
  Testing in the quality environment all Information Systems (User Management System, Order
Management System, Stock Management System, Billing Management System, Marketing
System);

 Testing the Website and the App;

 Bug Fixing;

 Develop professional training about the Information Systems with Sports GO employees;

Go Live

 Ensure that the IS are working correctly;

 After the implementation assure the IS maintenance;

4.2 Planning

For the full implementation of the services described under this proposal we foresee a period
of 20 weeks.

The figure below is a summary plan of the main activities:

Analysis and Developement Testing Go Live

Design 12 Weeks 3 Weeks 3 Weeks
2 Weeks

Identification of Implementation Testing all Ensure that the IS

the business flows of the proposed Information are working
and the current Information Systems; correctly;
functional and Systems defined
technical debts; to meet the Testing the Ensure the IS
functional Website and the maintenance;
Define the risks CONFIDENTIAL
requirements App; 14
and business needed;
impact; Bug Fixing;
Re-planning of
 5 Project organization

5.1 Team
Understanding that this is a project that requires decision making and a strong commitment
by each of the parties involved, Astrea Company proposes the following organization for the project:

Monitoring Committee – The monitoring committee is going to be responsible for controlling the
project phases and the work in every aspect. We will ensure that any question or observation by
Sports Go will be directly assigned and heard by us, and we will always be available for any
assistance needed.
From Astrea Company, our director Rodrigo Marcelino will be part of this committee.

Project Management – We will make sure that our team is coordinated and ready to make decisions
in any situation, and we will prepare ourselves so that the project runs smoothly and without any
problems. Our project management team will assure that:
- All the procedures are and correctly implemented;
- The budget is respected and used wisely in order to maximize the values;
- Resolve any possible problem that might occur mid project;
- Ensure that the deadline is respected, meaning that we will guarantee that the project is done
on time and without delays;
From Astrea Company, our project manager will be João Martins.

Project Team – Our team will be distributed in relation to all activities and responsibilities necessary for
the execution of the project, identified under the project scope. We should ensure the needed reporting
to monitor the project, perform diagnostic meetings and decide on operation matters.

Our initial team proposal is: one developer and three business analysts (one CRM/Marketing
consultant, one ERP Consultant who has shared responsibilities as a Project Manager and a Commerce
Consultant). These numbers can be reviewed if necessary.

Project Team Responsibilities

Developer1  Designing, implementing and managing software;
 Identifying and developing modifications;
 Developing quality assurance procedures;
 Deploying software tools, processes and metrics;
 Maintaining and upgrading existing systems;
 Working closely with other developers and business analysts;
 Testing and support activities.
Business Analyst  Evaluating business processes, developing and implementing solutions;
(CRM/ Marketing  Reviews of business processes and developing optimization strategies;
Consultant and ERP  Conducting meetings and presentations to discuss business requirements;
Consultant/Commer  Requirements analysis;
ce Consultant)2  Documenting and communicating;
 Cross-functional communication and engagement;
 Providing training, coaching, and guidance;
 Ensuring solutions meet business needs and requirements;
 Performing user acceptance testing (UAT);
 Keep track of deliverables and ensuring timely completion of projects.

1
Roberthalf.com.au. 2020. Software Developer Job Description And Duties | Robert Half. [online] Available at:
<https://www.roberthalf.com.au/employers/it-technology/software-developer-jobs> [Accessed 5 December 2020].
2
Betterteam. 2020. Business Analyst Job Description. [online] Available at: <https://www.betterteam.com/business-analyst-job-description> [Accessed
5 December 2020].

CONFIDENTIAL 15
5.2 Requirements to begin project

In order to begin the project, there is a set of requirements that have to be met. These are:

 SPORTS should identify a single point of contact who will be responsible for coordinating the
execution of the project in conjunction with the Astrea’s project manager João Martins.

 SPORTS should identify the interlocutors that will facilitate the phases Analysis and design,
development, testing and Go Live, and those that will be part of the whole process and the
project implementation.

 We need to be aware of the main business needs of SPORTS GO to understand how we can
intervene in order to help them improve their business;

 After the meeting with the CEO of SPORTS GO, we believe that we possess all the information
and resources needed to assure the implementation of the Information systems;

 The project team will be 100% allocated to this project;

 Astrea Company decided that the project will be developed in SPORTS GO headquarters, so that
we can have a wider idea of our client, infrastructures and work environment;

 Astrea will provide to their consultant the IT resources (laptop, wireless router, phones) needed;

 We could assure that the professional formation of employees will be done by our company in
SPORTS GO headquarters;

 If everything goes according to the plan, Astrea Company will need roughly 2 weeks to do the
planning.

CONFIDENTIAL 16
6 Responsibilities and assumptions

6.1 Responsibilities
The Astrea project execution have in consideration the timely and effective execution of the
SPORTS GO’ responsibilities, described here in, as well as the timely decision making, and approvals
required during the project execution.

Because of the temporal limitation of the project, SPORTS GO undertakes to comply with each
of its responsibilities below in a timely and expeditious manner.

 Firstly, SPORTS GO needs to accept the terms and conditions of Astrea Company.

 Furthermore, SPORTS GO needs to assure that exists involvement of its key users. Key users
from areas that suffer transformation must be involved since the beginning of the project. This
allows the key users to assimilate the whole changing process. To achieve this, communication
and feedback from its employees it is crucial in order to understand the company doubts and
needs.

 Commitment by all the stakeholders is also relevant. The total commitment and involvement in
the project by all the levels in the organization bring forth a truly team spirit, even though all the
responsibilities assumed by each entity should be very well defined since the beginning of the
project.

 Privilege the use of standard solutions. Whenever possible the standard solutions of the systems
should be implemented as well as the less changes as possible on that systems.

 Besides that, we need to guarantee that our project is strictly confidential and the
implementation phases are only for the use of SPORTS GO, therefore this cannot be shared or
shown to third parties.

CONFIDENTIAL 17
6.2 Assumptions

The estimated duration of the project presented in this document and the corresponding fees
take into account the following additional assumptions:

 The project plan will be reviewed and detailed during the first days of the project, which must be
approved by SPORTS GO. This plan should be mutually agreed and not be exclusively an Astrea
plan;
 In order to ensure proper execution of the project, the remaining decision-making should be
timely taken by the SPORTS GO the team, no later than 20 days after request;
 Any modifications requested by SPORTS GO team with impact on the scope of services and
results, the project team and / or calendar should be the subject of a formal addendum to this
Agreement;
 In case of interruption, the project restart will occur after reaching agreement between the
parties, and only after remedied the causes that constituted grounds for interruption.
 The project implementation should start in 2021. This will be the reference year for the costs and
billing calculation.
 There may be reasons for the interruption and suspension of the project by the Astrea, if one or
more of the following facts occurs:

o The non-payment of the invoices within the due dates;

o The lack of compliance with deadlines for decision making by the SPORTS GO;
o SPORTS GO vacancies;
o The discontinuity in the leadership of the project or in the SPORTS GO management board,
which would jeopardize the ability to decide and to ensure the successful continuation of
the work.

 The effort and cost estimations are based on the following business assumptions:
o Planning:
 Our director will attend the monitoring committee with no cost associated
to SPORTS GO.
 Our project manager will have shared responsibilities as Commerce
consultant.
 Our developer is expert in the SAP suite systems.
o Implementation:
 Standard price of SAP Business One Solution – Cloud version
 Reference price solution for SAP Commerce Cloud
 Consulting services defined on chapter 7. Cost and billing
o Maintenance:
 No license and fees variation for the next three years
 Cost consideration concerning the new stores opening. One on 2021 and
two in 2022. The Setúbal store was taken as a reference.
 Encompasses the configuration of the stores to open 2021/2022
 In the maintenance years no other system implementation or upgrade is
considered.
o Through the implementation and maintenance phases the distribution of business
users per role considered is:
 Managers and sellers will be assigned one business user per function and
store;
 Designers and telephone operators will be assigned one business user per

CONFIDENTIAL 18
 function;
 CEO, CIO, and IT director will be sharing the same business user.

This will enable us to comply with the reference budget.

7 Costs and billing

7.1 Costs
The fees estimated for this project were based on our resources time involvement shown previously.
The fees and payment terms are detailed in accordance with the implementation scenario.

The full implementation of the project, including all phases proposed and described herein, have the
following value:

Value of services (excl. VAT) EUR 134.640

Value of hardware and software (excl. VAT) EUR 111.610

Value of services (excl. VAT) + Value of hardware and software (excl. VAT) EUR 246.250

Value of hardware and software (excl. VAT)

SAP Business One on Cloud uses financial model based on a subscription of users per month.
Due to this we need to determine the minimal of users for our systems.

Human Resources of SPORTS GO:

Role 2020 2021 2022 2023

Managers 7 8 10 10
Sellers 13 15 17 17
Designer 3 3 3 3
CEO 1 1 1 1
CIO 1 1 1 1
IT Director 1 1 1 1
Telephone Op. 3 3 3 3
Total 29 32 36 36

Number of business users needed:

Role 2021 2022 2023
Managers 5 6 6
Sellers 5 6 6
Designer 1 1 1
CEO/CIO/ IT Director 1 1 1
Telephone Op. 1 1 1
Total 13 15 15

Distribution of business users per role:

 Managers and sellers will be assigned one business user per function and store;

 Designers and telephone operators will be assigned one business user per function;
CONFIDENTIAL 19
  CEO, CIO, and IT director will be sharing the same business user.

Costs regarding the first year 2021 - Implementation

SAP Business One Cloud fees:

System (License and fees) 110 € *

Users (2021) 13
Business One System Cost (Monthly) 1,430 €
Business One System Cost (Year) 10,010 € **

*110€ per user/per month each Professional user SAP Cloud Hosted subscription3
**The total value represents the costs only for seven months of the initial year. The remaining five
months the system is not live, therefore no subscription fees applied.

SAP Commerce Cloud fees:

SAP Commerce Cloud

2,000 €
(Monthly)
14,000
SAP Commerce Cloud (Year)
€**

* The SAP Commerce Cloud fees aren’t publicly available. In order to get a realistic price, we took the
approach of consider the direct competitors (Magento Commerce, Shopify Plus) values as a
reference.4
**The total value represents the costs only for seven months of the initial year. The remaining five
months the system is not live, therefore no subscription fees applied.

Total Systems Value for 2021:

SAP Business One System Cost (Year 10,010

2021) €
14,000
SAP Commerce Cloud (Year 2021)
€
24,010
Total Systems value for 2021
€

Costs regarding the second year 2022

SAP Business One Cloud fees:

System (License and fees) 110 €*

Users (2022) 15
Business One System Cost (Monthly) 1,650 €
Business One System Cost (Year) 19,800 €

*110€ per user/per month each Professional user SAP Cloud Hosted subscription3

SAP Commerce Cloud fees:

3
Seidor.us. 2020. SAP Business One Price. [online] Available at: <https://www.seidor.us/content/seidor-us/en/blog/sap-business-one-price.html>
[Accessed 5 December 2020].
4
Shopify Plus. 2020. Shopify Plus Pricing. [online] Available at: <https://www.shopify.com/plus/pricing> [Accessed 5 December 2020].
CONFIDENTIAL 20
 SAP Commerce Cloud (Monthly) 2,000 €*
SAP Commerce Cloud (year) 24,000 €

* The SAP Commerce Cloud fees are not publicly available. In order to get a realistic price, we took the
approach of consider the direct competitors (Magento Commerce, Shopify Plus) values as a
reference.4

Total Systems Value for 2022:

SAP Business One System Cost (Year 2022) 19,800 €

SAP Commerce Cloud (Year 2022) 24,000 €
Total Systems value for 2022 43,800€

Costs regarding the third year 2023

SAP Business One Cloud fees:

System (License and fees) 110 €*

Users (2023) 15
Business One System Cost (Monthly) 1,650 €
Business One System Cost (Year) 19,800 €

*110€ per user/per month each Professional user SAP Cloud Hosted subscription3

SAP Commerce Cloud fees:

SAP Commerce Cloud (Monthly) 2,000 €*

SAP Commerce Cloud (year) 24,000 €

* The SAP Commerce Cloud fees aren’t publicly available. In order to get a realistic price, we took the
approach of consider the direct competitors (Magento Commerce, Shopify Plus) values as a
reference.4

Total Systems Value for 2023:

SAP Business One System Cost (Year 2023) 19,800 €

SAP Commerce Cloud (Year 2023) 24,000 €
Total Systems value for 2023 43,800 €

Value of services (excl. VAT)

Costs regarding the first year 2021- Implementation

Role Number of employees Rate 1 Month of Work (8h-22days) 5 Months

Analysts 2 30€ 5280€ 26400€
PM/Analyst 1 35€ 6160€ 30800€
Developer 1 20€ 3520€ 17600€
Total 4 14960€ 74800€

CONFIDENTIAL 21
 Costs regarding the second year 2022- Maintenance

Role Number of employees Rate 1 Month of Work (8h-22days) 2 Months

Analysts 2 30€ 5280€ 10560€
PM/Analyst 1 35€ 6160€ 12320€
Developer 1 20€ 3520€ 7040€
Total 4 14960€ 29920€

Costs regarding the third year 2023 Maintenance

Role Number of employees Rate 1 Month of Work (8h-22days) 2 Months

Analysts 2 30€ 5280€ 10560€
PM/Analyst 1 35€ 6160€ 12320€
Developer 1 20€ 3520€ 7040€
Total 4 14960€ 29920€

Return on Investment by SPORTS GO

Sales Values

Monthly Sales k€
Own branded 310
Accessories and 3rd Party 120
Total 430

Stores 6 8 9 9
Sales increase 10% 15% 30% 5%
Year 2019 2020 2021 2022 2023
Monthly Sales Total Total Total +15%* Total +30%** Total +5%***
Own branded 310000€ 341000€ 392150€ 51150€ 509795€ 117645€ 535284.75€ 25489.75€
Accessories and
120000€ 132000€ 132000€ 19800€ 132000€ 39600€ 138600€ 6600€
3rd Party
Total Monthly
430000€ 473000€ 524150€ 70950€ 641795€ 157245€ 673884.75€ 32089.75€
Value
Year 2019 2020 2021 2022 2023
Annual Sales Total Total Total +30% Total +15% Total +10%
Own branded 3720000€ 4092000€ 392162€ 613800 6117540€ 1411740€ 6423417€ 305877€
Accessories and
1440000€ 1584000€ 132000€ 237600 1584000€ 475200€ 1663200€ 79200€
3rd Party
Total Annual Value 5160000€ 5676000€ 524162€ 851400€ 7701540€ 1886940€ 8086617€ 385077€

*With the opening of 1 new store and the implementation of the information systems it is expected an
increase in sales.
**Taking in consideration the 1 new store that was open in 2021 and the 2 new stores open this year
(2022) it is expected the biggest increase in 2022.
***In the third it is expected that the number of sales become more constant again.

Margins Values

Margins %
Own branded 305
Accessories and 3rd Party 105

5
01 Sports GO - Minutes. (2020).
CONFIDENTIAL 22
 Year 2020 2021 2022 2023
Margins % +23% +23% +23%
Own branded 30 23* 23* 23*
Accessories and 3rd
10 23* 23* 23*
Party

*These values only take in consideration the increased caused by the implementation of the
information systems.6

Year 2019 2020 2021 2022 2023

Monthly Margin +23% +23% +23%
Own branded 93000€ 102300€ 11764.5€ 27058.35€ 5862.6425€
Accessories and 3rd Party 12000€ 132000€ 4554€ 9108€ 1518€
Total Monthly Value 105000€ 234300€ 16318.5€ 36166.35€ 7380.6425€
Year 2019 2020 2021 (7months) 2022 2023
Annual Margin +23% +23% +23%
Own branded 1116000€ 1227600€ 82351.5€ 324700.2€ 70351.71€
Accessories and 3rd Party 144000€ 1584000€ 31878€ 109296€ 18216€
Total Annual Value 1260000€ 2811600€ 114229.5€ 433996.2€ 88567.71€

Total costs recovered (2021-2023) 636 793.41€

Cost Savings
Knowing that SPORTS GO is going to open new stores and that are expected increases in sales,
without the Information Systems they would probably need to hire new employees. Therefore, we can
assume the following numbers:

- Hiring at least one telephone operator per year in the next three years;

- Hiring at least one designer per year in the first two years, were the biggest increase is
expected.

Considering the implementation of the Information Systems we can assume that SPORTS GO
will not need to hire anyone else because:

- The telephone operators will have less job since most of the sales are now made directly
through the website or the mobile app and these platforms are now able to process the order without
the need of a telephone operator intervention;

- The designers will also save time because with the new Information Systems they receive
directly the orders and the requests information.

Role Salary per Year

Designers 40000€
Telephone operators 25000€

Year 2021 2022 2023

Designers 1 1
Telephone Operators 1 1 1
Total costs per year 65000€ 65000€ 25000€

These values will be increased by VAT (value added tax), according to the legal value in place at
the invoice issuing date.

6
(2020). Retrieved 12 December 2020, from http://clients.23k.com/SAP/7910-SoH_Ebook/USHA/31294_USHA_BTS.pdf
CONFIDENTIAL 23
 As previously stated in this document, the value of the above-mentioned fees may be subject
to joint review in the event of any changes in the objectives, scope or assumptions, as needed.

Return On Investment

Return-Investment
ROI = X 100
Investment

Year 2021 2022 2023 TOTAL

Return 179229.5€ 498996.2€ 113567.7€ 791 793.41€
Investment 98810€ 73 720€ 73720€ 246 250€
ROI 81.39% 576.88% 54.05% 221.54%

To calculate the Investment value, it was considered all the costs regarding the new
Information Systems, as detailed in Value of services (excl. VAT) and Value of hardware and software
(excl. VAT) sections above.

To calculate the Return value, we take in consideration:

- The difference between the increase of sales after the opening of the new stores and the
implementation of the Information Systems, as detailed in Sales Values section above.

- The difference between the increases of the margins caused by the implementation of the
Information Systems, as detailed in Margins Values section above;

- Cost savings, as detailed in Cost Saving section above.

This performance metric demonstrates that the Return on the investment would be 2.21 times
the initial investment.

Therefore, it is clearly illustrated the added value that this Information System implementation
would represent to the SPORTS GO mainly after the second year (2022) where the expected increase
of sales leads to huge returned that covers all the costs regards services as well as hardware and
software (excl. VAT).

CONFIDENTIAL 24
CONFIDENTIAL 25
7.2 Conditions and payment plan
Invoices must be settled within 30 days from the date of issuance.

The services will be billed based on the following payment schedule and in accordance with
the project phases:

Value of services (excl. VAT) EUR 134.640

Annual 2021 2022 2023

Value of services (excl. VAT) EUR 74.800 EUR 29.920 EUR 29.920

 EUR 25.000
Option A  EUR 25.000  EUR 29.920  EUR 29.920
 EUR 24.800

 EUR 15.000
 EUR 15.000
Option B  EUR 15.000  EUR 29.920  EUR 29.920
 EUR 15.000
 EUR 14.800

For the value of services (implementation and maintenance), two options can be provided.

 In the option A, the implementation cost for 2021 can be paid in three partials: on the
signature of the project, once the development phase is finished, and immediately after
the GoLive, respectively. The maintenance costs are one-time annual fees paid in 2022
and 2023.

 In the option B, the implementation cost for 2021 can be paid monthly during the five
months of this phase. The maintenance costs are one-time annual fees paid in 2022 and
2023.

Value of hardware and software (excl. VAT) EUR 111.610

Annual 2021 2022 2023

Value of hardware and software (excl. VAT) EUR 24.010 EUR 43.800 EUR 43.800

The value of hardware and software (license and fees) is expected to be annual paid directly to
SAP.
Therefore, the payment terms must be agreed with SAP Account Manager.

CONFIDENTIAL 26
 Value of services (excl. VAT) + Value of hardware and software (excl. VAT) EUR 246.250

Annual 2021 2022 2023

Value of services (excl. VAT) + Value EUR 74.800 EUR 29.920 EUR 29.920
of hardware and software (excl. VAT) EUR 24.010 (SAP) EUR 43.800 (SAP) EUR 43.800 (SAP)

 EUR 25.000
 EUR 29.920  EUR 29.920
 EUR 25.000
Option A  EUR 43.800 (SAP)  EUR 43.800 (SAP)
 EUR 24.800
 EUR 24.010 (SAP)

 EUR 15.000
 EUR 15.000
 EUR 29.920  EUR 29.920
 EUR 15.000
Option B  EUR 43.800 (SAP)  EUR 43.800 (SAP)
 EUR 15.000
 EUR 14.800
 EUR 24.010 (SAP)

The total value of services (excl. VAT) and the value of hardware and software (excl. VAT)
can be paid according to the Astrea conditions presented above or upon further agreements with
SAP.

7.3 Copyright and proposal validity

The present document is owned by the Group 12, and cannot be transmitted to any other
entity, individual or collective, external to SPORTS GO.

The proposal is valid until December 31, 2020.

CONFIDENTIAL 27
8 Signatures

Accepted and agreed by: Accepted and agreed by:

SPORTS GO Astrea

Executive Director General Manager

Date and Place: .............................................. Date and Place:.................................................

.................................................................... ....................................................................
(Authorized Signature) (Authorized Signature)

CONFIDENTIAL 28