Essays on Adoption of the SAFE Suite on the Basis of the Financial ROI Analysis Coursework

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The paper "Adoption of the SAFE Suite on the Basis of the Financial ROI Analysis " is a good example of a finance and accounting coursework.   The increased insecurity incidences, as well as the increasing number of airport users and the need to offer superior quality services to the customers hence ensuring their satisfaction, has necessitated airlines to adopt sophisticated security systems that enable them to overcome the above challenges. In this regard, SFO intends to adopt a new security system SAFE suite for its terminal 2 while its current security system calls for a complete infrastructure overhaul.

This report performs an ROI analysis with the aim of recommending whether or not the company should go on with the proposed installation of the SAFE suite. In this regard, the report starts with explaining its purpose before giving a brief background to the need for implementation of the SAFE suit. This includes the challenges facing the current security system as well as the benefits the new system will provide. The report then lays down the assumptions that are made in carrying out the ROI analysis before carrying out the ROI analysis.

In this regard, all the benefits are quantified. The ROI analysis results in a positive NPV and a high IRR. As such, the report recommends the adoption of the SAFE suite on the basis of the financial ROI analysis as well as other non-financial benefits expected to come with the new system. Purpose The purpose of this report is to provide an insight as to the return on investment for a new credentialing system for Francisco International Airport (SFO) Terminal 2. It is to be noted that the airport has announced a $383 million plan to renovate and reopen terminal 2 and the airport’ s assistant deputy director of aviation security Kim Dickie and her team have selected Quantum Securer’ s SAFE software suite as the new terminal 2 credentialing system.

The proposed new system has a lot of benefits when compared to the old system being used currently as will be discussed below (Mohamed and Rasil, 2012). However, its implementation and maintenance also have a lot of cost implications for the company. As such, the decision to go ahead with the implementation of the new credentialing system for terminal 2 ought to be backed by a strong business case to assure the management that the investment will be worthwhile and that the benefits to be derived from the Quantum Securer’ s SAFE software suite will greatly outweigh the costs while improving the customer experience through increased convenience.

Thus, the purpose of the report is to provide the management with the basis of making the investment decision based on the analysis of the new system’ s ROI. In so doing, assumptions will be made while costs and benefits will be analyzed as shown in the sections below. Background The new credentialing system is necessitated by the renovation and reopening of SFO’ s terminal 2 as a result of rising passenger numbers and increasing launch of service by low-cost carriers.

The new security system needs to be different from the old system given that the old security infrastructure needs a complete overhaul given the many loopholes around employees and passenger security, airside operations, badge credentialing, physical identity and access management.

The new system also needs to factor in the need to create a model generation model airport. There has also been increasing security threats as well as challenges in managing the identities of the many people frequenting the airport, their credentials as well as physical access to facilities that requires all airports to execute mission-critical processes (Mathews, 2016). The old security system being largely manual gives rise to a lot of security issues such as lack of a routine way of determining if an access card has been successfully deactivated after the termination of an airport worker or if a person without the required approval has access to a restricted area.

Furthermore, updating the numerous databases lags days or weeks behind actual changes such as terminations. This and other challenges mean that the airport is in need of a more effective security system with SAFE being proposed as an alternative.



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