ANALYSIS PHASE

In the wake of meticulous planning, our journey into the heart of SHOENIVERSE's Employee Information System (EIS) takes an exciting turn as we delve into the analysis phase. Imagine this phase as the unfolding of a captivating mystery novel, where each layer reveals crucial details about the plot. The focus shifts towards a comprehensive analysis to evaluate the financial viability and long-term benefits of the proposed system.

The analysis phase is a critical juncture where we delve into the intricacies of investment returns, with tools such as Net Present Value (NPV) and Payback Period taking center stage. The Analysis Phase is our telescope into the future, allowing us to gaze at the stars of potential improvements, productivity enhancements, and strategic decision-making.

NPV serves as a financial compass, guiding decision-makers in assessing the project's economic attractiveness. By discounting future cash flows to their present value, NPV enables us to gauge the net impact of the EIS on SHOENIVERSE's bottom line. A positive NPV indicates a potentially lucrative investment, aligning with our commitment to delivering value to the organization.

In addition to NPV, the Payback Period is a metric employed to evaluate the time it takes for the initial investment in the EIS to be recouped through generated cash flows. This metric provides a tangible timeframe, allowing us to understand when the project will start contributing positively to the company's financial position.

As we move from planning to analysis, the focus on NPV and Payback Period underscores our commitment to not only implement an efficient Employee Information System but also ensure its economic sustainability.

NET PRESENT VALUE (NPV):


The payback period for the EIS’s investment is five years, it means that the initial investment made in EIS is expected to be fully recovered through the generated cash inflows within a period of five years. The payback period of five years indicates the time it takes for the investment to recoup its initial cost through the cash flows it generates. In simpler terms, SHOENIVERSE invested RM 510,000 in EIS, and can expect to recover that entire investment within a span of five years from the profits or cash inflows the EIS.


Comments