Business Intelligence Commercial and Financial

Question: Discuss about theBusiness Intelligencefor Commercial and Financial. Answer: Deliverability of Recommended Solution Details of Recommended Solution The business is recommended to be a single project business. The business is a car rental business where cars will be available for rent on hourly basis. There are some major assets required for this business. Firstly, a building is required where the cars will be stored and for the purpose of office works. Secondly, a lot of cars will be required for the purpose of rent. It is recommended that the staffing of the business will be done from Veterans Placement and Staffing agency. The funding source will be equity shares, preference shares and long term loans. There will be a management team which will be responsible for the all over progress of setting up of the new business. The primary objective of the business is to deliver the best in the car rent industry. There is a very good scope of expansion in the near future as there is a few players in this business. There will be three stages of the project. In the first stage, the fund will be raise. The second stage will involve the development of the project. In the third stage, the business will be commenced (Anandarajan, Anandarajan and Srinivasan 2012). Commercial and Financial Procurement There should be enough cars to meet the requirements of the customers. The organization is experienced enough for this industry. Thus, this company knows how to procure the business of this industry. The total system will be maintained by special software which will track record of how many cars are rented. The payment can be done by cash or by card. There will be a special process of online payment system. Risk Assessment and Management Risk Management strategy [Describe risk] [Outline strategy for management] There are various risks involved in the business. Firstly, the risk of competitors. The second risk is the risk of losing the money of the investors. Thirdly, the risk of uncertainty. As the future cant be predicted, there is always risk involved in the business operations. Firstly, there should be an effective business strategy which will differentiate the business with the other businesses. Secondly, the money of the investors should be invested in such a way that there is minimum risk. This process will eliminate the risk of losing money. Thirdly, there should be precautions for the business operations so that unpredicted risks can be avoided. Due to the risk factor, it is recommended that the project should be flexible. The project manager needs to take precautions against the odds. The financial planning should be effective (Isik, Jones, and Sidorova 2013). Table X: Key risks to the success of this investment Detailed Costing and Economic Evaluation Element Estimate Table reference Base cost estimate $100m (Table 2) Base risk allocation $40m (Table 3) Project cost estimate $70m Contingency $20m (Table 3) Project budget $250m Table 1: Headline project cost element summary BASE COST ESTIMATE Effective date of BCE: dd/mm/yy Estimated date of commencement of construction: dd/mm/yy 1 Direct Costs 1.1 Materials 1.2 Labour 1.3 Plant Hire Sub total $50m 2 Indirect Costs 2.1 Recurrent overheads 2.1.1 Site facilities 2.1.2 Plant Equipment site maintenance 2.1.3 Project management costs 2.1.4 Commercial 2.1.5 QA and Safety 2.2 Non-recurrent overheads 2.2.1 Establishment and mobilisation 2.2.2 Disestablishment and demobilisation 2.2.3 Project insurances 2.2.4 Professional fees design, legal, financial, etc Subtotal $30m 3 Owners Cost 3.1 Contracted professional staff 3.2 Investigations 3.3 Land costs resumptions 3.4 Authority fees 3.5 Owner supplied plant and equipment Subtotal $10m 4 Contractors Fee 4.1 Profit margin 4.2 Corporate Overheads Subtotal 5 Provisional Sums 5.1 Subtotal $10m TOTAL OF BASE COST ESTIMATE $100m Table 2: Base cost estimate BASE RISK ALLOCATION AND CONTINGENCY 6 Base Risk Allocation 6.1 Escalation (period between BCE and construction) 6.2 Project Risk A 6.3 Project Risk B etc Sub total $40m 7 Contingency 7.1 Subtotal $20m TOTAL OF PROJECT RISKS $60m Table 3: Project risks Funding Sources The investors will be allowed to invest in the company. The source of capital will be equity shares, preference shares, debentures and long term debts. Another way of capital rising will be the sale of old or unproductive assets. On the other hand, the private sector as well as the government sector will be invited to for capital (Loshin 2012). Management Governance There will be a separate team to govern the progress of the project. The team will report the progress to the higher authority. Stakeholder Engagement and Communications Plan The major stakeholders will be the employees, debtors, creditors and shareholders. There will be a meeting every quarter of the year to communicate with them. Project Management Strategy The project managers will be responsible for the management of the project. Everything about the project will be on them and they will be liable for the progress of the project. Delivery Change Management There will be change in the operation of the company as well as in the work force if there is no satisfied result from the business. It is recommended that the business must be examined time to time and will be re-engineered if needed. Timelines and Milestones It is recommended that the service should be delivered on a highest priority. The milestone of the company will be to be the best company in this business (Chang 2014). Performance Measures Output name: Performance Measures Unit of measure Change in target if proposal is endorsed 2012-13 2013-14 2014-15 2015-16 2016-17 Quantity No. Of Cars 25 30 32 40 50 Quality Feedbacks Timeliness Efficiency Readiness and Next Steps The company will be publishing an annual report every year so that the investors can trust the company and go to the next level of investment. Signoff The signoff form will be approved by all the relevant persons involved with the business project. Exit Strategy The company will exit from the operation when the company will incur loss for consecutive 5 years. References Anandarajan, M., Anandarajan, A. and Srinivasan, C.A. eds., 2012.Business intelligence techniques: a perspective from accounting and finance. Springer Science Business Media. Chang, V., 2014. The business intelligence as a service in the cloud.Future Generation Computer Systems,37, pp.512-534. Isik, ., Jones, M.C. and Sidorova, A., 2013. Business intelligence success: The roles of BI capabilities and decision environments.Information Management,50(1), pp.13-23. Loshin, D., 2012.Business intelligence: the savvy manager's guide. Newnes.