Info: Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcareservices 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 healthcareproducts and services. Below are some ideas the IT department has developed for supporting thesestrategic goals:1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to helpemployees improve their health. A recent study found that MYH, Inc. pays 20 percent more than theindustry average for employee healthcare premiums, primarily due to the poor health of itsemployees. You believe that this application will help improve employee health within one year ofits rollout so that you can negotiate lower health insurance premiums, providing net savings of atleast $30/employee/year for full-time employees over the next four years. This application wouldinclude 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 managetheir 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
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.
: Evaluate the four projects above by preparing a weighted scoring model using the templateprovided. Develop at least four criteria, assign weights to each criterion, assign scores, and thencalculate the weighted scores. Also write a one-page paper that describes this weighted scoringmodel and the results.
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