Group 12: Redesign of the Stevens Campus Network

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Group 12Redesign of the Stevens Campus Network

• Grace Shabo
• Philip Tan
• Nicholas Evans
• Hans Kim
• Jay Grossman
• http//sd.syphen.net
• E421 Midterm Presentation
• October 22, 2002

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Agenda Slide

• Project Description
• General Consulting Process
• Business Model
• Pricing and Parts and Labor
• Balance Sheet
• SEED Model Variables and Outcomes
• Financial Leveraging
• Pricing
• Breakeven Point
• Overview

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Project Description

• Consultant Company
• Basically companies hire us to design, redesign,
  or upgrade their Network
• Extension of Project
• Redesigning the Stevens Campus Network

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Project Description Cont.

• Services we Provide
• Increase speed of their Network
• Increase the reliability and uptime of their
  Network
• Increase the security of their Network
• Increase capacity

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Project Description Cont.

• Why would a company hire us?
• Combined 15 years experience of Network
  Information Systems
• Experience in the design and implementation with
  High Speed Media Networks
• Experience with Network and Internet Security
  Technologies
• Experience with Systems Integration

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General Consulting Process

• Evaluate and observe existing network
  configuration
• Define problems with the existing network
• Propose cost-effective solutions to existing
  problems and offer future expansion capability
• Provide simulation of proposed solution
• Implement customers chosen solution

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Business Model
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Parts Labor

• Parts per job
• Depends on what hardware the specific solution
  requires. Client pays hardware costs plus our
  markup
• Labor per job
• 100 per hour per person
• Figure about 250 hours per job combined

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Product Pricing

• service broken down into units of jobs
• 50,000 per job (completed project)
• number of yearly jobs increases annually starting
  with about 9 or 10 jobs a year

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Balance Sheet

• Assets and Liabilities
• End Of Year 0 43,800
• End Of Year 1 120,146
• End Of Year 2 264,847
• End Of Year 3 430,249
• End Of Year 4 613,648
• End Of Year 5 832,733
• End Of Year 10 828,083

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SEED Model

• IRR 2207.77
• NPV 504,666
• 5 year project life
• corporate income tax 9
• inflation 3
• baseline MARR 15

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Financial Leveraging

• 25,000 down
• 5,000 per person (5 of us)
• 40,000 borrowed
• 5 year loan _at_ 7 APR

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Sensitivity Analysis
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Wholesale/Retail Pricing

• This doesnt apply to us because we arent buying
  anything in bulk, nor do we require manufacturers
  or distributors
• The costs of the hardware and servers are
  specific to the job and will be paid for by the
  company that hires us
• We will select hardware that is the best for them
  to use but it is up to them to pay for it

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Sensitivity Analysis of Pricing

• This does not apply to our project because the
  pricing is different depending on the customers
  needs

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Breakeven Volume

• 9 work units (jobs)
• breakeven sales level 425,356
• relatively short time to breakeven about a year
  to 18 months

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Time To Reach Breakeven

• Approximately 18 months

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Sensitivity Analysis of Breakeven

• in progress...

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Table of possible designs with figures of merit

• This does not apply to our group project because
  our solutions vary from customer to customer,
  project to project

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Most Economical Design?

• This does not apply to us because we are not
  really selling a product per se, but our Business
  Model is our Business Design

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Sensitivity Analysis of Design Choices

• This is not applicable to our group project since
  we are not selling a design

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Project Overview

• Useful to companies because we will make them
  more efficient
• Useful to Stevens to fix existing problems and
  make more efficient
• Doesnt cost much and we will reach breakeven
  quickly
• Opening opportunities to expand