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 Prior to beginning work on this assignment, review the Bright Day Wellness Center (BDWC) case studyand each tab in the Build versus Buy ToolMicrosoft Excel workbook beginning with the purpose and instructions and including the total cost of ownership (TCO calculator) and the tab showing graphical results. Analyze the challenge scenario presented in the case study regarding the acquisition of a technology platform to schedule clients for services at BDWC as well as the financial information in the BDWC case study.

When completing the Workbook,

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  • Analyze the workbook instructions located in the first Microsoft Excel worksheet tab labeled “Purpose & Instructions.”
  • Develop the second Microsoft Excel worksheet for both a build and buy option in the tab labeled “TCO Calculator” by inputting data from the Bright Day Wellness Center (BDWC) case study.
  • Input financial data in dollars into the “TCO Calculator” worksheet tab in cells which are relevant to the case study; do not delete rows or columns in the TCO Calculator worksheet; leave any nonapplicable cells blank.
  • Articulate brief comments that explain your numbers in each row where you input data in the TCO Calculator by right clicking on the cell and adding a new comment in it for the applicable row.
  • Formulate an impression of which option (build versus buy) is costlier in its initial state and over time by observing your calculated results in the worksheet tab labeled “Results.”
  • Critique the TCO results for reflection in your Week 5 Journal entry.

The BDWC Build Versus Buy Microsoft Excel workbook must be uploaded to the classroom in its entirety including the three worksheets: Purpose and Instructions, TCO Calculator, and Results.

1. Purpose & Instructions

Build vs. Buy Tool
Purpose
This Total Cost of Ownership (TCO) calculator provides enterprises with a framework for comparing the cost of building a new application to that of buying a new software package. The table below lists the various cost categories associated with the lifecycle of an enterprise application. The categories and items in this tool should not be taken as an exhaustive list; there are spaces within each section of the TCO spreadsheet to add additional costs as required.
Cost Categories
Project management• Costs associated with preparatory work and due diligence associated with the software adoption. • Includes requirements gathering, training, and evaluation.
Software• Software development costs in the case of building. • The capital expenditure of software licenses and related fees in the case of buying.
Maintenance and support• Cost of upgrading and administering the hardware, application, and database. • The support staff labor hours and costs, training labor and fees, travel, support contracts and management overhead.
Opportunity costs• Staff time allocated to the project. • Time lost to schedule delays.
Instructions
1. Go to the worksheet labeled “TCO Calculator.” Fill in the appropriate values for each cost category (cells to be filled in are highlighted in white). Please note that this calculator does not account for the depreciation of capital assets.
2. After filling in the necessary values, go to the Results tab to see a graphical comparison of the two adoption approaches in terms of cumulative cost.
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2. TCO Calculator

Total Cost of IT Ownership (TCO) Calculator
Cumulative Costs
Year 1Year 2Year 3Year 4Year 5
Build$0$0$0$0$0
Buy$0$0$0$0$0
BuildYear 1Year 2Year 3Year 4Year 5Total ($)% of Total Cost
Project management
Research$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Requirements gathering$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Budget approval$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Input data collection$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Model/methodology development$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
End-user training$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Project Management Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Software
Software analysis & design$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – client/server$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – Web$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – software localization (if applicable)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – integration modules$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – data localization$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – data mapping$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – data migration$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Testing (code, integration, performance, user acceptance)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Documentation$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Rollout$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Software Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Maintenance & Support
Ongoing maintenance$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Software upgrades$ – 0$ – 0$ – 0$ – 0$ – 0
Auto-update tools$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Help desk$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Issue tracking$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Maintenance & Support Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Opportunity Costs
IT staff time$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Business staff time$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Schedule delays$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Opportunity Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
BuyYear 1Year 2Year 3Year 4Year 5Total ($)% of Total Cost
Project management
Research$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Requirements gathering$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Budget approval$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Input data collection$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Software evaluation$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Software selection$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Gap analysis$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Proof of concept modeling$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
End-user training$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Vendor management$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Project Management Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Software
License fees$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Implementation fees (and/or internal costs)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Testing (integration, performance, user acceptance)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Configuration fees$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Integration fees$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – integration (if necessary)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – data mapping$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Development – data migration$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Customization fees$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Annual maintenance fees$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Software Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Maintenance & Support
Software upgrades (implementation)$ – 0$ – 0$ – 0$ – 0$ – 0
Helpdesk (beyond vendor-provided support)$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Maintenance & Support Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Opportunity Costs
IT staff time$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Business staff time$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Schedule delays$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Opportunity Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0
Total Costs$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0

&LInfo-Tech Research Group&CPage &P&R2006

3. Results

TCO Comparison Graph

&LInfo-Tech Research Group&CPage &P&R2006

3. Results

Year 1Year 1
Year 2Year 2
Year 3Year 3
Year 4Year 4
Year 5Year 5

BuildBuyTimeCumulative CostBuild vs. Buy TCO Comparison0000000000

Bright Day Wellness Center (BDWC) Case Study Background:

Bright Day Wellness Center (BDWC) is a health and wellness facility with one location in the San Diego California area. The facility offers the following services: License chiropractic visits, licensed physical therapy visits, licensed massage therapy services and yoga instruction. The facility is licensed to operate as a provider within the state of California and provider staff such as the chiropractors, physical therapist and massage therapist are currently licensed professionals in their fields.

In terms of information technology platforms, the center uses a claims and billing

application called Pronto to collect and store insurance information for clients and submit claims for billable services. The system runs online through computers at the wellness center. Physical therapist also used a secure online system called PT FIMS which is a clinical information system that automatically calculates functional independence measure her scores for PT clients allowing compliant billing for physical therapy services. Clinical documentation is done manually and paper charts that are stored in file drawers in various locations throughout the center. BDWC has a website. Currently the website is not used as an interactive tour but a passive web page with information about the center. There are testimonials and deidentified images on the website for marketing purposes. Current Challenge/Opportunity Scenarios: Scheduling: the clinical leaders and board of trustees who govern the wellness center would like to investigate moving toward a secure online scheduling application for used by both clients and internal staff. There is a perception that there is a great deal of inefficiency and confusion with regard to clinical scheduling. This is especially true of billable services such as physical therapy and chiropractic visits. There is a local technology company (the company who runs the wellness center website) called Technology Zoom who has offered to develop a customized scheduling application for BDWC. Biometrics: Recently the lead physical therapist attended a conference and developed a low- cost deal with a vendor who provides PT biometric tracking activity devices for clients who require intensive physical therapy. The PT director at BDWC obtained five of these devices and allocated these devices to his most active current physical therapy patients. The devices were put on the BDWC network so that the physical therapist could see client data uploads on a real time basis from the devices through wireless connectivity. IP addresses for these pilot testing devices were provided remotely by a technician at the Technology Zoom company who maintains the BDWC network.

BDWC Volume Information: 6000 billable client visits per year about 1/3 PT and the reminder chiropractic 750 massage appointments per year 350 Yoga clients IT Scheduling Solutions: Financial Information: A local information technology development company called Technology Zoom Inc. has offered to develop the clinical scheduling platform for BDWC.

• Cost of programming $85.00/hour

• Cost of analyst time $85.00/hour

• Cost of project manager time $110.00/hour

• Estimates for end user requirements gathering time required of PTs, office staff and chiropractors is 200 hours

• Programming time is unknown until requirements are completed and signed off.

• Recent occupational therapy office scheduling application was 300 programming hours and 200 analyst hours to develop.

In terms of investigating other purchased software options for client scheduling, the

manager of the DWC has been meeting with sales representatives from a software as a service company such as Luma Health and others. Based on current volumes for physical therapy and chiropractic appointments, Luna helper has submitted a preliminary bed determining that they could run the BWC physical therapy and chiropractic appointments on a secured software as a service cloud basis through their application for $15,000 per month. This fee includes all maintenance and upgrades and reporting for the software once it is up and running. The initial fee to get the clinic up and running and configured on the software is estimated to be approximately $35,000 in consultative and end-user training fees. Luma Software retrieved from: https://www.lumahealth.io/cp-appointment-

scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEi

wA8K_4O_zXbb6jqfU3iZ26XVR1S6myuuBGxYqSEGcsno_IhWMfzD7emWjYhBoCzYwQA

vD_BwEio/cp-appointment-scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEiwA8K_4O_zXbb6jqfU3iZ26XVR1S6myuuBGxYqSEGcsno_IhWMfzD7emWjYhBoCzYwQAvD_BwE”>https://www.lumahealth.io/cp-appointment-scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEiwA8K_4O_zXbb6jqfU3iZ26XVR1S6myuuBGxYqSEGcsno_IhWMfzD7emWjYhBoCzYwQAvD_BwEhttps://www.lumahealth.io/cp-appointment-scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEiwA8K_4O_zXbb6jqfU3iZ26XVR1S6myuuBGxYqSEGcsno_IhWMfzD7emWjYhBoCzYwQAvD_BwEhttps://www.lumahealth.io/cp-appointment-scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEiwA8K_4O_zXbb6jqfU3iZ26XVR1S6myuuBGxYqSEGcsno_IhWMfzD7emWjYhBoCzYwQAvD_BwEhttps://www.lumahealth.io/cp-appointment-scheduling?ppc_keyword=%2Bscheduling%20%2Bhealthcare&gclid=CjwKCAjwyqTqBRAyEiwA8K_4O_zXbb6jqfU3iZ26X

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