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Part 1 Integration Management

Intergration Management

Course

Project Management (PRM 2021)

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Part 1: Project Integration Management

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare

services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-

time employees. MYH recently updated its strategic plan; key goals include reducing internal costs,

increasing cross-selling of products, and exploiting new Web-based technologies to help

employees, customers, and suppliers work together to improve the development and delivery of

healthcare products and services. Below are some ideas the IT department has developed for

supporting these strategic goals:

1. Recreation and Wellness Intranet Project: Provide an application on the current

intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20

percent more than the industry average for employee healthcare premiums, primarily due to the

poor health of its employees. You believe that this application will help improve employee health

within one year of its rollout so that you can negotiate lower health insurance premiums,

providing net savings of at least $30/employee/year for full-time employees over the next four

years. This application would include the following capabilities:

 Allow employees to register for company-sponsored recreational programs, such as soccer,

softball, bowling, jogging, and walking.

 Allow employees to register for company-sponsored classes and programs to help them

manage their weight, reduce stress, stop smoking, and manage other health-related issues.

 Track data on employee involvement in these recreational and health-management programs.

 Offer incentives for people to join the programs and do well in them (e., incentives for

achieving weight goals, winning sports team competitions, etc.).

2. Health Coverage Costs Business Model: Develop an application to track

employee healthcare expenses and company healthcare costs. Healthcare premiums continue to

increase, and the company has changed insurance carriers several times in the past 10 years. This

application should allow business modeling of various scenarios as well as tracking and analyzing

current and past employee healthcare expenses and company healthcare costs. This application

must be secure and run on the current intranet so several managers and analysts can access it and

download selected data for further analysis. The new application must also import data from the

current systems that track employee expenses submitted to the company and the company’s costs

to the insurance provider. You believe that having this data will help you revise policies

concerning employee contributions to healthcare premiums and help you negotiate for lower

premiums with insurance companies. You estimate that this application would save your company

about $20/employee/year for full-time employees over the next four years and cost about

$100,000 to develop.

3. Cross-Selling System: Develop an application to improve cross-selling to current

customers. The current sales management system has separate sections for major product and

service categories and different sales reps based on those products and services. You see great

opportunities to increase sales to current customers by providing discounts when they purchase

multiple products and services. You estimate that this system would increase profits by $1 million

each year for the next three years and cost about $800,000 each year for development and

maintenance.

4. Web-Enhanced Communications System: Develop a Web-based application to

improve development and delivery of products and services. There are currently several

incompatible systems related to the development and delivery of products and services to

customers. This application would allow customers and suppliers to provide suggestions, enter

orders, view the status and history of orders, and use electronic commerce capabilities to purchase

and sell their products. You estimate that this system would save your company about $2 million

each year for three years after implementation. You estimate that the system will take one year

and $3 million to develop and require 20 percent of development costs each year to maintain.

Tasks

1. Summarize each of the proposed projects in the Running Case section

using a simple table format suitable for presentation to top management. Include the name of each

project, identify how each one supports business strategies, assess the potential financial

benefits and other benefits of each project, and provide your initial assessment of the value of

each project. Write your results in a one- to two-page memo to top management, including

appropriate back-up information and calculations.

Answer:

Project

Description

Support Business

strategies

Financial Benefits Other Benefits

Recreation and

Wellness Intranet

Project

Reduce cost $2 / 4 years Persuade employees join

groups

Health Coverage

Costs Business

Model

Reduce cost $1 / 4 years $100K upfront & monthly

Cross Selling

System

Improve cross-selling $3M / 3 years $800k develop

Web-Enhanced

Communication

System

Develop web-base $6M / 3 years $3M develop, $6M/year

2. Evaluate the four projects in the Running Case section by preparing a

weighted scoring model using the template provided on the companion Web site for this text.

Develop at least four criteria, assign weights to each criterion, assign scores, and then calculate

the weighted scores. Print the spreadsheet and bar chart with the results. Also write a one-page

paper that describes this weighted scoring model and the results.

Answer:

Criteria Weight

Recreation and

Wellness

Intranet

Project

Health

Coverage Costs

Business Model

Cross

Selling

System

Web-Enhanced

Communication

System

Satisfies business

objective 35% 30% 10,5 30% 10,5 30% 10,5 30% 10,

Provides positive

NPV 30% 50% 30% 9 70% 21 100% 30

Can be

implemented in 1

year or less 15% 100% 100% 15 30% 4,5 30% 4,

ROI within 3 years 20% 100% 100% 20 30% 6 0

Weighted Project

Scores

3. Prepare a business case for the recreation and wellness intranet project.

Assume that the project will take six months to complete and cost about $200,000. Use the

business case template provided on the companion Web site for this text.

4. Prepare a project charter for the recreation and wellness intranet project.

Assume that the project will take six months to complete and cost about $200,000. Use the project

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Part 1 Integration Management

Course: Project Management (PRM 2021)

69 Documents

Students shared 69 documents in this course

University: Đại học Hà Nội

Was this document helpful?

Part 1: Project Integration Management

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare

services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-

time employees. MYH recently updated its strategic plan; key goals include reducing internal costs,

increasing cross-selling of products, and exploiting new Web-based technologies to help

employees, customers, and suppliers work together to improve the development and delivery of

healthcare products and services. Below are some ideas the IT department has developed for

supporting these strategic goals:

1. Recreation and Wellness Intranet Project: Provide an application on the current

intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20

percent more than the industry average for employee healthcare premiums, primarily due to the

poor health of its employees. You believe that this application will help improve employee health

within one year of its rollout so that you can negotiate lower health insurance premiums,

providing net savings of at least $30/employee/year for full-time employees over the next four

years. This application would include the following capabilities:

Allow employees to register for company-sponsored recreational programs, such as soccer,

softball, bowling, jogging, and walking.

Allow employees to register for company-sponsored classes and programs to help them

manage their weight, reduce stress, stop smoking, and manage other health-related issues.

Track data on employee involvement in these recreational and health-management programs.

Offer incentives for people to join the programs and do well in them (e.g., incentives for

achieving weight goals, winning sports team competitions, etc.).

2. Health Coverage Costs Business Model: Develop an application to track

employee healthcare expenses and company healthcare costs. Healthcare premiums continue to

increase, and the company has changed insurance carriers several times in the past 10 years. This

application should allow business modeling of various scenarios as well as tracking and analyzing

current and past employee healthcare expenses and company healthcare costs. This application

must be secure and run on the current intranet so several managers and analysts can access it and

download selected data for further analysis. The new application must also import data from the

current systems that track employee expenses submitted to the company and the company’s costs

to the insurance provider. You believe that having this data will help you revise policies

concerning employee contributions to healthcare premiums and help you negotiate for lower

premiums with insurance companies. You estimate that this application would save your company

about $20/employee/year for full-time employees over the next four years and cost about

$100,000 to develop.

3. Cross-Selling System: Develop an application to improve cross-selling to current

customers. The current sales management system has separate sections for major product and

service categories and different sales reps based on those products and services. You see great

opportunities to increase sales to current customers by providing discounts when they purchase

multiple products and services. You estimate that this system would increase profits by $1 million

each year for the next three years and cost about $800,000 each year for development and

maintenance.

4. Web-Enhanced Communications System: Develop a Web-based application to

improve development and delivery of products and services. There are currently several

incompatible systems related to the development and delivery of products and services to

customers. This application would allow customers and suppliers to provide suggestions, enter

orders, view the status and history of orders, and use electronic commerce capabilities to purchase

and sell their products. You estimate that this system would save your company about $2 million

Part 1 Integration Management

Project Management (PRM 2021)

Đại học Hà Nội

Comments

Preview text

Part 1: Project Integration Management

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare

services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-

time employees. MYH recently updated its strategic plan; key goals include reducing internal costs,

increasing cross-selling of products, and exploiting new Web-based technologies to help

employees, customers, and suppliers work together to improve the development and delivery of

healthcare products and services. Below are some ideas the IT department has developed for

supporting these strategic goals:

1. Recreation and Wellness Intranet Project: Provide an application on the current

intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20

percent more than the industry average for employee healthcare premiums, primarily due to the

poor health of its employees. You believe that this application will help improve employee health

within one year of its rollout so that you can negotiate lower health insurance premiums,

providing net savings of at least $30/employee/year for full-time employees over the next four

years. This application would include the following capabilities:

 Allow employees to register for company-sponsored recreational programs, such as soccer,

softball, bowling, jogging, and walking.

 Allow employees to register for company-sponsored classes and programs to help them

manage their weight, reduce stress, stop smoking, and manage other health-related issues.

 Track data on employee involvement in these recreational and health-management programs.

 Offer incentives for people to join the programs and do well in them (e., incentives for

achieving weight goals, winning sports team competitions, etc.).

2. Health Coverage Costs Business Model: Develop an application to track

employee healthcare expenses and company healthcare costs. Healthcare premiums continue to

increase, and the company has changed insurance carriers several times in the past 10 years. This

application should allow business modeling of various scenarios as well as tracking and analyzing

current and past employee healthcare expenses and company healthcare costs. This application

must be secure and run on the current intranet so several managers and analysts can access it and

download selected data for further analysis. The new application must also import data from the

current systems that track employee expenses submitted to the company and the company’s costs

to the insurance provider. You believe that having this data will help you revise policies

concerning employee contributions to healthcare premiums and help you negotiate for lower

premiums with insurance companies. You estimate that this application would save your company

about $20/employee/year for full-time employees over the next four years and cost about

$100,000 to develop.

3. Cross-Selling System: Develop an application to improve cross-selling to current

customers. The current sales management system has separate sections for major product and

service categories and different sales reps based on those products and services. You see great

opportunities to increase sales to current customers by providing discounts when they purchase

multiple products and services. You estimate that this system would increase profits by $1 million

each year for the next three years and cost about $800,000 each year for development and

maintenance.

4. Web-Enhanced Communications System: Develop a Web-based application to

improve development and delivery of products and services. There are currently several

incompatible systems related to the development and delivery of products and services to

customers. This application would allow customers and suppliers to provide suggestions, enter

orders, view the status and history of orders, and use electronic commerce capabilities to purchase

and sell their products. You estimate that this system would save your company about $2 million

each year for three years after implementation. You estimate that the system will take one year

and $3 million to develop and require 20 percent of development costs each year to maintain.

Tasks

1. Summarize each of the proposed projects in the Running Case section

using a simple table format suitable for presentation to top management. Include the name of each

project, identify how each one supports business strategies, assess the potential financial

benefits and other benefits of each project, and provide your initial assessment of the value of

each project. Write your results in a one- to two-page memo to top management, including

appropriate back-up information and calculations.

Answer:

Project

Description

Support Business

strategies

Financial Benefits Other Benefits

Recreation and

Wellness Intranet

Project

Reduce cost $2 / 4 years Persuade employees join

groups

Health Coverage

Costs Business

Model

Reduce cost $1 / 4 years $100K upfront &amp; monthly

Cross Selling

System

Improve cross-selling $3M / 3 years $800k develop

Reduce cost $1 / 4 years $100K upfront & monthly