United International University

Assignment

On

System Analysis and Design:

Cost Benefit Analysis

Submitted to:

Imtiaz Murshed,
United International University

Submitted by:
Atahar Hussain

Id: 112 191 051

Cost benefit analysis
There are numerous approaches to characterize a cost/benefit analysis, and the definitions can
rapidly get confused. So to keep it straightforward:

"A money saving advantages investigation is a procedure through which business choices are
broke down. The advantages of a given circumstance or business-related activity are added, and
afterward the expenses related with making that move are deducted."

While analyzing the cost benefit analysis we have to consider a few things like-

 comparing Expected costs

 Expected benefits
 Issues
 Estimating costs
 Estimating benefits
 Use of financial models to evaluate

Benefits
 Direct benefits
 Indirect benefits
 Intangible advantages

Advantage Estimation

 Estimate advantages of new framework dependent on

 Estimation of cost investment funds and cash age when conveyed
 Value of data acquired for objective driven task
 Value of intangibles at the end of the day:
 immediate, aberrant and impalpable advantages
The way that a data framework has no immediate incentive in its own privilege implies that the
business advantages of a data framework can't be seen straightforwardly or all alone, freely of
the business targets and procedures the framework plans to help. It is those goals and procedures
that would basically decide the commitment of the framework to the association's exhibition.
There is a following figure that will show an example of how it creates value.
A model: The Benefits
How about we investigate this idea inside the setting of a theoretical IT anticipate. Let's assume
you need to smooth out your account office's month to month close cycle. You gauge that by
coordinating independent frameworks in buying, money, and different regions of the
organization, and by presenting IT computerization and business process overhauls into the
month-end close procedure, you can spare account two days every month in a month to month
close that currently takes a sum of three days month to month with each individual in fund taking
a shot at it.

The advantage from this framework redesign venture is that money gets its whole staff opened
up from work for the two days that are spared from the nearby. This investment funds can be
organized by including the day by day pay figures for all the representatives who are associated
with the nearby. The opened up individual force can be redeployed in different exercises that
may return more an incentive to the business.

You additionally work with back and find that records of sales will be modernized, so you will
have the option to get and process installments from clients sooner. This helps organization
incomes and incomes, along these lines lessening the measure of cash (with premium) that the
organization needs to get to continue itself while trusting that installments will clear. You work
with fund to concoct a reserve funds figure.

You add to this the cost reserve funds the organization will see from the de-execution of heritage
framework equipment, programming, server farm costs, and so on., that are currently utilized for
the month-end close and that will be killed.

Speculatively, we'll state that you anticipate an investment funds of $1,000,000 every year.

Costs
 Development costs
 Setup costs
  Operational costs

Pre-usage investigation

The principal speculation is a basic examination of the current corporate procedures and data
frameworks. The yield of the examination is a venture record that depicts the computerization of
your procedures in another framework and fills in as the reason for its ensuing usage. Set out in
the task will be the extent of the work, the technique for tending to singular advances, and an
exact work plan and timetable of financing.

Permit

The essential thing of the expense of the data framework is its permit, which is determined
dependent on either the modules or clients. Permitting modules requires plainly characterizing
the extent of utilizing the framework for every client. Authorizing clients permits clients to
utilize all the apparatuses of the framework - the main restriction is get to rights. At times the
measured methodology is monetarily better, in some the client.

Extraordinary contacts

The standard establishment of a mind boggling data framework expects it to be adjusted to the
points of interest of each organization. Somehow or another, standard apparatuses can be
excessively point by point and complex and should be rearranged. On the other hand, at times the
standard highlights should be amplified utilizing uncommon contents. The measure of
extraordinary alterations will have an effect on the complete obtaining cost, however regularly
likewise on the future expense of any framework refreshes.

Information change

With the end goal for you to contrast your noteworthy information and current figures or the
future aftereffects of your organization, the information from unique data frameworks, Excel
spreadsheets and paper archives should be changed over. It is important to build up and complete
registers and afterward make transformation contents that will move this information to the new
data framework.
Preparing and help with the arrangement

A brief log jam in the running of the organization happens after the progress to the new
framework since clients need to become acclimated to the new procedures, exercises and the
product condition. It is in this way important to retrain every single future client before
organization. The better they are readied, the quicker they will become accustomed to the new
condition. It is in like manner important to rely on the nearness of advisors during the main long
stretches of activity to give information and good help to clients during their initial steps.

The cost for working a data framework

Month to month expense

Notwithstanding procurement costs, you should likewise deal with a month to month expense for
the framework seller that ensures support for required administrative changes, maybe the
constant turn of events and improvement of the framework standard so it reflects current patterns
in the market for business programming. It can likewise incorporate charges for different
administrations like hotline or crisis support.

Framework redesign

Data frameworks additionally become old. Our experience reveals to us that the existence pattern
of corporate frameworks is approximately seven years, after which the framework should be
executed again or, in all likelihood an alternate framework picked. The perfect arrangement is to
actualize minor moves up to the framework at yearly stretches or each other year. Thusly the
time and money related requests of reimplementation are spread out across progressing stages
and keep the framework in the most ideal structure.
A model: The expenses
Presently, how about we take a gander at the other side of the record - which comprises of the
expenses of the task.

To put in new frameworks that can encourage quicker month-end closes, you gauge equipment,
programming, and server farm costs, amortized through the span of a five-year permit.
Moreover, you should submit 10 IT staff full an ideal opportunity for one month to finish the
coordination work required for the new frameworks. At that point, there are preparing needs on
new frameworks and business forms required for IT and money staff, and maybe for people in
offices who will be influenced by changes in business forms. There may even be expenses of
telling clients and colleagues of changes- - and unquestionably some cash put in a safe spot for
lawful and consistence audits.

Again speculatively, we'll state that this signifies $4,000,000.

You register your figures, and you enter the spending survey process, where you go over the
cost/advantage investigation - on the grounds that the CEO and surely the CFO will need to
know the recompense of the speculation.

In our improved model, no doubt the earn back the original investment point for the innovation
venture would happen in year four. From that point forward, there would be some continuous
expenses, however the business would for the most part be receiving the rewards.

Building up a cost/advantage investigation for any IT anticipate can get intriguing when
expenses and advantages are hard to evaluate, or when the business estimation of various tasks
must be weighed against one another.

Figuring an IT anticipate's expenses and advantages requires mastery in arranging and executing
ventures, creating financial plans, and seeing how the two expenses and advantages change over
the life of a specialized activity. This refreshed number cruncher gives an adjustable Excel
spreadsheet to gathering and ascertaining IT anticipate expenses and advantages.
Cost-benefit methodologies for information systems
The better piece of this decade has since slipped by. Given the expanding significance of cost—
advantage investigation to business processing. it is again opportune to evaluate the situation.

 A great part of the tried and true way of thinking of cost-benefit analysis has withstood
the passage of time the utilization of discounted income examination to represent the time
estimation of cash;
 the utilization of life cycle cost investigation to distinguish and catch the extent of
important expenses at each phase of a framework's life the utilization of steady (or
negligible) investigation, as opposed to average qualities, to measure expenses and
advantages;
 the appropriation of the with/without, as opposed to the previously/after, point of view in
contrasting other options;
 The utilization of affectability. Or on the other hand "imagine a scenario where,"
examination to investigate the impacts of various suspicions and parameters on results
and ends.
 the utilization of net present worth (NPV) as the single best monetary standard in totaling
expenses and advantages after some time; the utilization of the corporate open door cost
of capital as the fitting markdown rate in limited income calculations.

Best practices
IT directors who are entrusted with these investigations can improve their outcomes in the event
that they think about the accompanying accepted procedures and know about specific
entanglements:

 Always assess any task against the needs of different activities that are additionally
sitting tight for endorsement and financing. Because an undertaking takes care of quicker
than others, that doesn't mean it ought to be the first to execute. The primary goal of the
business is consistently what it needs most to remain serious operationally and as far as
income.
  Don't attempt to do a cost/advantage investigation without anyone else. There are many
shrouded costs that solitary somebody in the division where the framework will be
conveyed could think about. Thus, it's essential to have somebody from that office
working with you.
 Show where hard dollars are spared or earned. Delicate expenses are difficult to measure.
I have consistently seen it as a diligently sell when I attempted to persuade a CFO that
such a significant number of individual hours would be spared by another framework.
The explanation is that there is in every case more work to be done somewhere else - so
the organization doesn't perceive any cost investment funds in its finance.
 Check your numbers. Such a large number of IT'ers create cost/advantage investigations
and afterward neglect to cross-check their figures for exactness. You would prefer not to
go to the CFO and clarify that you're going spare 10 full-time representatives' labor for
two days in the event that you smooth out the month-end close, when in all actuality, it
may appear as though 10 individuals are dealing with the nearby, yet just four of them are
working all day.

Main concern
The significant thing to recall in a cost/advantage investigation is to keep your vision unclouded
and objective- - in light of the fact that there are numerous different undertakings vieing for
subsidizing as well.

Additionally, it's basic to know your organization. Pioneering organizations regularly needn't
bother with cost/advantage examinations. On the off chance that they think an undertaking is
advantageous and they can bear the cost of it, they get it done. In different cases, venture
proposition get a lot of examination, and you'll be requested each and every number that shows
that a task is a wise speculation.

All of this discussion is been try to explained by a hypothetical tax information system is given
below,
A cost and benefit analysis of an hypothetical Tax information
system

Enhancements to burden frameworks can appear as improved laws, managerial practices, and
preparing programs. This brief spotlights on an improved assessment organization data
framework (TAIS) for charge specialists. This incorporates the TA!S essential organization
apparatus that interfaces to permit citizens to enlist, document, and give pay electronically;
information distribution centers; information coordinating; inner control capacities; and the
executives data frameworks.

An improved TAIS permits a degree of straightforwardness that streams onto different offices
and to the administration. For instance, a high net riches singular unit in a duty authority that
adequately works can recognize riches gains by degenerate common workers, government
officials, and crooks, and help carry these individuals to equity. Assessment specialists can give
data to, or lead joint tasks with, police and other government divisions such as those dealing with
standardized savings installments and government contracts.

Benefits of Information and Communication Technology in Tax Administration

Assessment specialists here and there utilize the revitalization of their data and correspondence
innovation (ICT) frameworks as a driver of change. There are two alternatives:

i. implementation of another in-house arrangement (a bespoke or exceptionally

manufactured framework), created by staff or a specialist co-op;
ii. Cost of a business off-the-rack (COTS) item to supplant the framework that will be
suspended.

Governments can support another TAIS for the expense authority, yet they may come up short
on the assets or political will to do as such. In the primary case, global loan specialists and
contributors may step in to subsidize the restoration of ICT frameworks of duty specialists. It is
important that right choices are made on whether to utilize a COTS or a bespoke framework and
that great choices are made in obtainment, expert enrollment, business process mapping, venture
the board, change the executives, and inner and outside correspondence to guarantee the
productive and powerful utilization of assets.
Settling on the correct choices can prompt results that expansion household incomes, diminish
defilement in the income authority, decrease extortion openings in the taxpaying network, and
give affirmation to the administration that the duty authority is by and large appropriately
oversaw. All around administered charge specialists ought to be a need for contributors with
constrained assets to target nations for the most productive and powerful utilization of assets,
with the point of amplifying DRM and lifting individuals out of destitution.

A United States Agency for International Development report suggests four principle abilities of
innovation answers for charge organizations:

I. A center duty framework offers help, computerization, work process the board, what's
more, approval the executives to burden organization capacities;
II. An e-charge framework gives data, instruction, and backing to citizens and encourages
consistence and organization;
III. A consistence execution framework sends chance based techniques to distinguish and
hinder rebelliousness;
IV. And the board data framework encourages the assortment and dispersal of execution data
to staff and the executives.'

If either a COTS or a bespoke framework is thought of, it is accepted that the present framework
(called the inheritance framework, after the new framework has been implemented} has been
resolved as excessively obsolete or destroyed to adequately bolster the business.

A bespoke framework requires the advancement of another product. An outside firm might be
locked in to build up a program as per the duty authority's necessities. The business usefulness
needs to be reported as a lot of necessities, the multifaceted nature of which, for example, the
information size, number of clients, and different variables, is to be cost by ITC specialists. The
new modules can be executed in staged methodology after some time to diminish the expense of
a huge coincidental turn of events or buy.
Then again, a COTS item requires acquirement from a firm. Over twelve organizations sell
exclusive duty organization COTS, either as a major aspect of or as the aggregate of their
business. These items might be utilized at either the national or subnational levels of government
organization.

The COTS item will have an out-of-the crate usefulness that is promptly operational subsequent
to being arranged (e.g., every nation has its own expense rates and limits) and different parts that
should be redone (acclimated to the one of a kind particulars of the duty authority's business
forms). The less that the COTS item should be redone, the better, as this decreases the expenses
of usage and of turning out resulting redesigns. At times, business procedures may profit by
being adjusted to the product accessible—as opposed to the familiar axiom that the business
should drive the ICT.

Cost benefit analysis for an information system of tax collection for

our country
The executives Information System of Taxation (MIST) is an activity by National Board of
Revenue (NBR) proposed to give a solitary window framework to the Circles people group in
Bangladesh to safely trade the archives and data electronically with their partners engaged with
the tax assessment chain including the expense lenders and government organizations.

The association has a tremendous activity that incorporates Circle Offices, Ranges, Zonal
HQs/Zonal-level Offices and the Head-Office itself. The principle capacity of the NBR is
requesting duty to the surveys and gathering of assessment from them. These exercises are
chiefly based at the Field Offices i.e Taxes Circles of the Department.

The objective of the product to lessen the time span of the appraisal, accessibility of the data to
the partners, information sharing between all other related offices like VAT, Customs and
Income Tax Department, extension to be made to gather data different sources like bank ,
protections, stock trades, RAJUK and City Corporations, BTRA and so forth. The framework
additionally focuses to screen the yearly or month to month targets and assortment all the more
rapidly and accurately. The framework is relied upon to create all the necessary reports to assist
the authority with deciding on issues on schedule.

Others Modules

• Organizational Structure

• Employee Management

• Budget Management

• TIN Management

• Return Management

• Collection Management

• Assessment Management

• Information Received Management

• Tax Holiday Management

• Penalty Management

• Refund Management
• Appeal Management

• Notice Management

• Audit Management

• Re-Open Management

• Sections/SRO Management

Highlights and Benefits

• Preserving TIN, Budget target, Return, Collection, Assessment and Appeal related data in
made sure about way

• Generating TIN testaments naturally

• Finding Assesses data by Assesses Category, Sub Category, Location and so on.

• Generating Challan (IT-31/TR-6) naturally

• Tracking segment astute Assessment, Collection, Penalty, Refund and Appeal related
exercises

• Managing Deducting authority data for at source assortment.

• Providing auto at source Credit.

• Calculating personal duty or Return pay naturally

• Calculating basic intrigue consequently

• Generating personal duty request notice consequently

• Generating under area shrewd Penalty list consequently

• Assessment should be possible without calling physical document

• Generating circle's Arrear list consequently

• Generating Assessment year savvy request and assortment data against specific Assessee

• Preparing articulation of assortment against spending objective of zone and circle

• Generating Notice naturally by various under segment

• Generating Order sheet for all inclusive/self and recorded case Assessment

• Indicating questioned request consequently against Appeal documenting

• Managing TIN move from hover to circle including all accounts

• Preparing various registers and record naturally

• Providing current status of any Assessee precisely.

• Faster dynamic of giving Arrear request.

• Assessee and its comparing records can be gotten to immediately by approved individual.

• Less-tedious for appropriate administration.