ITECH 7401

Leadership in IT Project Management

Assessment 3
Team Business Case Study

Submitted By:
SL Name Student ID
1 Md Shams Uddin Mim 30449795
2 Md Ataullah Al Mahmud 30446498
3 Ahmed Arbaaz Mohammed 30434906
4 Akhil Raj 30446964

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Executive Summary
Heartland Equestrian Centre (HEC) is a full-service boarding & show facility with multiple
riding arenas, where two of them are indoor riding arenas and multiple other arenas. They
also offer trail riding, full ranch experiences, rest rooms and café arena rental. The company
continuously focusing on improving its website and mobile app. They are currently
developing its mobile app and HEC wishes the app to enroll/pay for riding lessons, horse
boarding, book trail rides, and subscribe to newsletters and upcoming company events.
Equine Development Inc will be developing the mobile app for them. This 5-months project
had a estimated budget of $260,000.
The SWOT analysis outlines the primary strengths, weaknesses, opportunities, and threats of
the project. The report examined some critical assumptions and limitations associated with
the project. After three years (with a 10% discount rate), the financial analysis revealed a net
present value (NPV) of $293,901 and an internal rate of return (IRR) of 15%, indicating the
investment's viability. Potential financial benefits for HEC are almost guaranteed, as the
project's objectives, scope, constraints, and assumptions were thoroughly examined. As
showed in the Work Breakdown Structure (WBS), the app development will be divided into
five categories: project management control, financing, marketing, development setup, and
operations. The budget breakdown shows financial allocations for each development phase,
totaling $259,959. The Gantt Chart and network diagram illustrate the development sequence
and time requirements for each phase. Finally, potential project risks are also assessed
carefully and explained properly.
In conclusion, it is almost guaranteed that the project will really help HEC to keep grow and
perform better in the equestrian market. Better website and useful mobile app will ensure
that, they'll make more profit and their customers will be coming back for their services.

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Table of Contents
Executive Summary...............................................................................................................................2
Table of Contents...................................................................................................................................3
1. Introduction...................................................................................................................................4
2. Business Case Report for Heartland Equestrian Centre (HEC)........................................................4
2.1 Project Background......................................................................................................................4
2.2 Mission statement and project objectives...................................................................................5
2.3 SWOT Analysis.............................................................................................................................5
2.4 Opportunity statement................................................................................................................6
2.5 Critical assumptions and constraints...........................................................................................6
2.6 Analysis of options and recommendations..................................................................................7
2.7 Financial analysis.........................................................................................................................8
2.8 Project scope and WBS................................................................................................................8
2.9 Cost model and baseline............................................................................................................10
2.10 Schedule, Gantt chart and network diagram...........................................................................13
2.11 List of risks...............................................................................................................................15
3. Conclusion...................................................................................................................................16
4. References...................................................................................................................................17

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1. Introduction
A project is a group of tasks done to achieve a specific goal. Project management helps to organize,
keep track of, and carry out these tasks effectively. Good project management helps in managing
tasks properly and achieving goals, it reduces confusion, makes things run smoother, help in
communication, and makes teams work better together (Anantatmula, 2020).

In this assignment, the group will explain the different parts of managing a project to improve a
website and create a mobile app for both Android and iOS Operating system. The client for this
project is Heartland Equestrian Centre (HEC).

HEC already has a website but they want to upgrade it and wants to develop a mobile app to run its
business more efficiently. The project is very important for the so to ensure that the project run
smoothly, it should be well managed. Agile methodology will be followed to manage this project.
Equine Development Inc. (EDI) will develop the mobile app. This report will discuss the different
stages involved in project management.

2. Business Case Report for Heartland Equestrian Centre (HEC)

2.1 Project Background
HEC provides full boarding services for riders, trainers, and clinicians, along with lesson programs
covering various riding disciplines. They have multiple arenas which two of them are indoor,
including jumping and dressage, as well as facilities like stables, a round yard, and a horse wash.
Additionally, HEC offers trail riding, a full dude ranch experience, café and rest room rental. In
according to expand their business, HEC plans to upgrade their profile by enhancing their website
and launching a mobile app for both iOS and Android platforms. HEC operates under Heartland Pty
Ltd and is overseen by director Jack Bartlett.

Currently, HEC is facing challenges such as a decline in boarding horses and private lessons, mostly
because of the departure of a respected trainer for an overseas opportunity. Moreover, there's
growing competition from a newly established large training horse center. HEC already has a basic
online presence, but now they are aiming to upgrade their website and develop a mobile app.

The project's estimated initial investment includes $220,000, $10,000 in the next year, and $15,000
in 3rd year, which will be $260,000 in total. After a 10% reduction, the project budget stands at
$390,000, with an expected ROI of 25%. The project goal is to create a mobile app compatible with
Android and iPhone devices. The app will enable clients to book and pay for riding lessons, horse re-
training, boarding, and trail rides. Clients can also subscribe to newsletters and view upcoming
events. Features include access to trail maps, videos showcasing facilities, a photo album highlighting
horses and trainers, and the ability to rate services.

The estimated project duration is 20 weeks, with a budget of $260,000 and a 10% contingency. HEC
offers a premium contract rate of $120 per hour for two days a week. The project will follow an agile
methodology, aiming to successfully deliver the scope within the specified time and budget
constraints.

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 2.2 Mission statement and project objectives
The primary objective is to enhance the customer experience at HEC by creating a functional,
enjoyable, and user-friendly website and mobile application. This goal aims to meet the needs and
desires of HEC.

The success of HEC depends on this initiative. The research goals and objectives are as follows:

 The main goal of the project is to design and develop a mobile app for HEC.
 The app will enable customers to register for various services offered by HEC.
 It will facilitate online payments and include features for subscribing to newsletters and
upcoming services.
 The project is allocated a budget of $260,000 with a completion time of 20 weeks, utilizing
agile methodology.
 The project scope must be achieved within the specified time and budget to serve customers
effectively.

2.3 SWOT Analysis

The SWOT analysis identifies the strengths, weaknesses, opportunities, and threats of a given
situation (Yu, 2021). Below is the SWOT analysis for HEC:

Strengths
 HEC offers a diverse range of equestrian services.
 The center provides comprehensive lesson programs covering various riding disciplines and
multiple arenas, including jumping and dressage. It has two indoor arenas.
 EDI, the company developing the app, has a very great success history with as they have a
great team, proper experience and expertise for the project.
 The app will be used in both android and iOS system, facilitating extensive reach.
 The project will follow an Agile implementation methodology.

Weakness
 One of the best trainers has departed from HEC, potentially impacting the quality of training
services and customer satisfaction.
 The potential vendor, "Equine Development," specializes in horse game development for
kids, which differs significantly from the marketing app required for this project. This
variance may pose challenges in aligning the vendor's expertise with project requirements,
potentially impacting the app's development.
 Increased competition from a nearby competitor company offering similar equestrian
services poses a threat to HEC's market share and profitability.

Opportunities
 The growing preference for mobile apps, driven by their portability, accessibility, and
flexibility, presents an opportunity for HEC to enhance customer engagement and
accessibility through a mobile app.

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  HEC's reputation as a renowned equestrian center, offering diverse services like
jumping, dressage, horse wash, round yard, among others, positions it well to
leverage a mobile app to reach and serve a broader audience.
 There is potential for partnerships and advertising collaborations with other
companies through the mobile app and website, enabling HEC to expand its network
and revenue streams.
Threats
 Competitors are likely to utilize similar mobile apps to target the same customer
demographic, intensifying competition for HEC.
 The development team's expertise is primarily in horse game development for kids,
lacking significant experience in creating a marketing app for equestrian services.
 Developing a mobile app for marketing purposes necessitates extensive background,
knowledge, and skillsets that may not align with the current capabilities of the
development team.

2.4 Opportunity statement

HEC provides a range of services encompassing horse riding, boarding, and horse training, among
others. With the goal of enhancing its business operations, the company intends to upgrade its
website and introduce a user-friendly mobile app. The project's objective is to enhance the website's
functionality and develop a mobile app that facilitates clients' booking of various services and
enables online payments for these bookings. The project should be implemented in next five months
and with a total budget of $260,000.

2.5 Critical assumptions and constraints

At the beginning of the project, assumptions and constraints are identified and subsequently
analyzed and fine-tuned throughout the project's life cycle. These assumptions and constraints are
integral components of the project's scope statement. An assumption reflects a belief in the
truthfulness of certain aspects based on our knowledge, information, and experience. Conversely, a
constraint denotes any factor that governs or confines the actions of the project team, including
limitations related to schedule, resources, and costs (Al-Qordhowi, 2021).

Constraints in the project are grounded in the following areas:

 Budget
 Scope
 Schedule
 Quality
 Risk
 Resources

The constraints for the mobile app development project are outlined as follows:

 Estimated time and schedule for project completion: 5 months.

 Estimated budget for project implementation: $260,000.
 Project objective to enable clients to book services offered by HEC and facilitate online
payments.

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  Adding of features allowing users to subscribe to newsletters and receive updates on
upcoming events.
 Integration of videos demonstrating all services within the mobile app.
 Functionality enabling users to provide ratings for the services.
 Limitation of the mobile app to the iOS and Android platforms.

The assumptions for the project are outlined as follows:

 No budget fluctuations are anticipated. The project budget will remain consistent as initially
estimated.
 Staff will receive training at no additional cost.
 The project scope will remain unchanged once stakeholders have signed it.
 End users will be available to test the deliverables within the agreed-upon timeframe.

2.6 Analysis of options and recommendations

Based on the SWOT analysis, the development of both the website and mobile app for HEC emerges
as the best option. The analysis suggests that this project is not only feasible within the assigned
time and budget but also aligns with the strengths and opportunities identified. With strengths and
opportunities outweighing threats and weaknesses, the project is ready for success. Additionally, the
development of the mobile app is expected to enhance business productivity. Overall, the website
and mobile app development project appears to be a strategic and beneficial initiative for HEC.

Here are some recommendations for managing the website and mobile app development project for
Heartland Equestrian Centre:

i. Conduct a thorough hazard identification process before start developing the project and
implement measures to mitigate their impact if they occur. Utilize contingency reserves to
address unforeseen issues.
ii. Develop contingency plans specifically for high risks with a high impact on project objectives,
ensuring readiness to address potential disruptions.
iii. Allocate time and resources for analyzing current information, gathering new materials, and
conducting research to enhance the project team's understanding of the app development
project.
iv. Utilize project management tools and other relevant communication platforms to facilitate
effective administration and communication of changes throughout the project lifecycle.
v. Define clear success criteria for the app development project from the outset to enable
stakeholders to assess project performance upon completion.
vi. Prevent scope creep by establishing a precise work breakdown structure (WBS) aligned with
the project scope and monitoring adherence to it.
vii. Determine the project's resource requirements and budget allocation to ensure adequate
support for project activities.
viii. Implement effective communication techniques to foster a collaborative and comfortable
working environment for project team members.
ix. Identify key stakeholders and maintain regular communication with them, providing progress
reports and seeking their input and feedback as needed.
x. Encourage project team members to provide weekly progress updates to the Project
Manager, facilitating transparency and accountability.
xi. Hold weekly project meetings to review progress, address challenges, and ensure alignment
among team members regarding project status and objectives.

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 2.7 Financial analysis
The Net Present Value (NPV) is the disparity between the current value of cash inflows and outflows
over a specified period. In capital budgeting and investment planning, NPV is utilized to gauge the
profitability of a proposed investment or project. It is derived from calculations aimed at determining
the current value of future payment streams (Jory, Benamraoui, Boojihawon, & Madichie, 2016).

Period Cashflow
0 0
1 130,000
2 130,000
3 130,000

ROI 10%

NPV $293,901
Table-1: Calculation of NPV

The calculated value of $293,901 is achieved after a 3-year duration at a discount rate of 10%.
Internal Rate of Return (IRR) is the discount rate employed to equate a project's net present value
(NPV) to zero. In simpler terms, it represents the anticipated annual compound rate of return on a
project or investment (Magni, 2016).

Initial Investment -260,000

0 0
1 130,000
2 130,000
3 130,000

ROI 0.25

IRR 15%
Table-2: IRR Calculation

Obtaining a positive IRR of 15% indicates that the investment is a favorable option for the planned
project. This result signifies that the project is anticipated to generate a compound annual rate of
return of 15%, further affirming its viability and attractiveness as an investment opportunity.

2.8 Project scope and WBS

Goal:
The goal of the project is to design and develop both the website and mobile app for HEC.

Scope:
Scope refers to a comprehensive set of features or deliverables of a project, which are derived from
the project requirements (Han, 2021). Project scope outlines the work to be executed to deliver a
service or product with specified functions and attributes. The key processes in project scope
management include planning, controlling, and closing (Zhang, Veltri, Calvo-Amodio, & Haapala,
2021).

Features of the system to be developed include:

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  The system will enable clients to register for various services offered by the center.
 Clients will be able to complete the payment process online.
 Clients can subscribe to newsletters and receive updates on upcoming events.
 The system should provide access to maps and videos to showcase the HEC’s services.
 Clients can provide feedback on their experiences with the HEC’s services.

Project Constraints:
The set of constraints for the project "development of site along with app" are outlined as follows:

 Estimated budget for completing the project is $260,000.

 Estimated time schedule for project completion is 5 months.
 The project will be executed using the agile project management methodology.

Project Assumptions:
Project assumptions can be classified into various categories, including:

 Resources
 Budget
 Finances
 Scope
 Schedule
 Methodology
 Technology
 Architectural and design

Assumptions for the given website development project:

 No budget fluctuations are anticipated. The project's budget will remain consistent as initially
estimated.
 Training will be conducted internally, with no additional cost required for training.
 The scope of the project will remain unchanged once stakeholders have signed off on it.
 End users will be available to test the deliverables within the agreed-upon timeframe.

Work Breakdown Structure

The Work Breakdown Structure (WBS) in project management breaks down intricate projects into
modules, facilitating more efficient and prompt project completion. Its objective is to break down
large, complex projects into smaller, manageable components, allowing tasks to be carried out
concurrently by various team members. It's crucial to evaluate the project's scope before establishing
the Work Breakdown Structure (Han, 2021). WBS is provided below:

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 Fig-1: Work Breakdown Structure.

2.9 Cost model and baseline

Project management and control
This initial stage marks the beginning of the application development process. During this phase, all
stakeholders convene for a meeting to discuss project management and formulate a plan for the
entire application development process. The emphasis is on project management aspects and their
integration with strategies for overseeing project management activities. This phase involves active
participation from all stakeholders in the oversight process.

Financing
This stage represents the second phase and is deemed one of the most pivotal stages. It involves a
comprehensive discussion to identify the primary stakeholders for the project and determine the
necessary resources required to accomplish all tasks. The phase encompasses all aspects of project
management activities, such as budgeting, scheduling, and other project-related tasks. The
overarching plan is conceptualized, and factors related to budgeting and scheduling are integrated
into the model. The project sponsor's role is assessed, and their models are evaluated in terms of
financing and modeling. Subsequently, the finance manager, project sponsor, and other pertinent
models are finalized.

Project schedule
In this phase, the overall project schedule is estimated and managed within the allocated
timeframe. Analysis is conducted based on internal and external factors. Strengths,
weaknesses, opportunities, and threats are assessed within the model. Subsequently, the
schedule factor is deliberated upon within the model. Customer analysis is then performed,
prioritizing the most critical requirements to model the specific necessary functions. Finally,
the final schedule is calculated based on these considerations.

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 Hardware setup
This phase centers on acquiring the hardware essential to fulfill all requirements. Evaluation
of resource allocation for the hardware model is conducted, and necessary resources are
obtained from raw materials and suppliers. All application hardware requirements are
compiled, and resource management is implemented. Infrastructure setup is modeled
across all stages in this phase. Development of the project model is executed with precise
estimation. This phase stands as one of the crucial models required for cost setup and
modeling.
Software development
In this phase, the staffing model is estimated across all project phases, and software models
are evaluated with robust project support. Team meetings are reviewed to align with
project-related tasks. Additionally, the necessary application development and
implementation software is assessed during this stage.
Contingency Cost
The contingency plan serves as an alternative strategy to the proposed plan. This phase
emphasizes the assessment of contract costs and the estimation model. The objective is to
formulate an evaluation plan based on the computed model of the evaluation factor.

Project Budget
Project Info
Project Lead: Ty Borden
Start Date: 05-05-2024
Labor Materials Fixed costs
D
a Travel
Tasks Hours Rate Units $/Unit Material Other Budget
y
s
Phase or Category Title $81,046

Project Management 640 $120.00 77,100.00

&Control 0 300.00
Financing -

Project charter 24 $14.00 586.00

250.00
Business Plan 40 $14.00 560.00

Sponsor approval 120 $14.00 1,680.00

5

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 Private Funding 80 $14.00 1,120.00
0
Project schedule $4,800

Customer Analysis 160 $12.00 1,920.00

0

SWOT Analysis 120 $12.00 1,440.00

5

Tactics 120 $12.00 1,440.00

5
Hardware Setup $81,000

50,000.00
Facility Requirements 0 400 $14.00 55,600.00

App search 200 $85.00 17,000.00

5

Infra setup 440 $14.00 6,160.00

5

Test setup 160 $14.00 2,240.00

0
Software Development $69,480

5,000.00
Mobile App 0 5,000.00

Staffing 480 $85.00 40,800.00

0

Design 80 $85.00 6,800.00

0

Testing 160 $85.00 13,600.00

0

Sign off 32 $85.00 2,720.00

Go Live Readiness 40 $14.00 560.00

Contigency cost (10% of the total budget) $23,633

Total Budget
$259,959

Payback analysis
Payback analysis involves determining the payback period for an initial investment. The estimated
duration for the investment to recuperate will be contingent upon the cash flow generated from

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assets and is typically expressed in years. The payback period is calculated by dividing the initial
investment by the annual net cash flow. In this case:

Payback period = Initial investment / Annual net cash flow

Payback period = $259,959 / $99,590 = 3 years

Fig-2: Payback Model for HEC

2.10 Schedule, Gantt chart and network diagram

A summary schedule is a chart that monitors significant milestones and deliveries, while a Gantt
chart is a type of bar chart illustrating a project's progress. In a Gantt chart, tasks to be completed are
listed on the vertical axis, and time intervals are listed on the horizontal axis. The duration of each
activity is represented by the width of horizontal bars in the graph. Gantt charts display the start and
end dates of a project's terminal and summary elements, which are part of the project's work
breakdown structure. Modern Gantt charts also show dependency links, indicating the precedence
network between activities. A network diagram in project management illustrates the sequential and
logical relationships between tasks, providing a clear timeline of tasks and events. Typically depicted
as a chart with a series of boxes and arrows, a project network diagram is used to visualize task
dependencies and project flow (Ronald, 2018).

The Gantt Chart below shows the phases of the development with sample months and years:
(Starting from the assignment submission last date)

Gnatt Chart

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 Fig-3: Gantt Chat

Network Diagram

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 Fig-4: Network Diagram

2.11 List of risks

Potential risks for implementing website for HEC are as follows:

Technology
Website development necessitates the utilization of web technologies for project implementation,
thereby posing risks to data security, information security, and compliance. Risks associated with
technology stem from the need for training and software acquisition. Additionally, outsourcing
services from third parties can introduce further risks, potentially leading to project failure and
delays.

Communication
Effective and timely communication is crucial for the success of any project. Regular and
reliable meetings involving stakeholders, sponsors, and team members facilitate tracking
changes, reallocating tasks, and nurturing a positive and productive team atmosphere.
Conversely, ineffective communication can result in the project veering off course and
ultimately failing.
Scope creep
Scope creep refers to changes, ongoing, or uncontrolled expansion in a project's scope after
initiation. This typically occurs when the project's scope is inadequately defined,
documented, or managed. Scope creep is widely regarded as risky (Anantatmula, 2020).
Changes in scope often lead to increased time spent completing the project, exceeding
budgetary limits, and depletion of resources required to finish the project.

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Cost
Effective management of project funds is crucial to prevent both cost overruns and
underruns. Additionally, attention should be given to the following factors:
 Skill resources
 Company staff health and safety
 Employee performance

3. Conclusion
Based on the presented figures, the project appears poised for success. The agile methodology
played a pivotal role in ensuring the accuracy and precision of these figures. The project aims to
enhance the HEC website and develop a mobile app compatible with both iOS and Android
platforms. With a meticulously computed budget of $259,959 and a projected completion timeline of
5 months, the project scope, constraints, and assumptions have been clearly delineated. The Work
Breakdown Structure (WBS) has been articulated comprehensively in this report.

Financial analysis of the project, including metrics such as NPV, IRR, ROI, and payback period,
indicates strong prospects for success, which would positively impact HEC's business. The budget,
derived from the WBS, has been visually represented in a chart for clarity. Additionally, potential risks
have been identified and listed to address anticipated challenges that the project may encounter.

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4. References
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management. Enrichment: Journal of Management, 12(1), 957-964.
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Anantatmula, V. S. (2020). Operations management - emerging tred in the digital era.

doi:10.5772/intechopen.93766

Han, X. (2021). WBS-free scheduling method based on database relational model. International
Journal of System Assurance Engineering and Management, 12(3), 509-519. doi:10.1007/s13198-
021-01106-x

Jory, S. R., Benamraoui, A., Boojihawon, D. R., & Madichie, N. O. (2016). Net present value analysis
and the wealth creation process: a case illustration. The Accounting Educators' Journal, 26, 85-99.
Retrieved from
https://www.researchgate.net/publication/313435109_Net_present_value_analysis_and_the_
wealth_creation_process_a_case_illustration

Magni, C. (2016). Average internal rate of return and investment decisions: A new perspective.
UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR, Documentos de Trabajo, 55.
doi:10.1080/00137911003791856

Ronald, S. K. (2018). Project scheduled management. Conference: Atlantic international university.

USA. Retrieved from
https://www.researchgate.net/publication/273759807_Project_Schedule_Management

Yu, P. (2021). R&D project risk management research. In E3S Web of Conferences. 251, p. 01100. EDP
Sciences. doi:10.1051/e3sconf/202125101100

Zhang, H., Veltri, A., Calvo-Amodio, J., & Haapala, &. K. (2021). Making the business case for
sustainable manufacturing in small and medium-sized manufacturing enterprises: A systems decision
making approach. Journal of Cleaner Production, 287. doi:10.1016/j.jclepro.2020.125038

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