Creating a System Creating a System to Sell Sporting to Sell Sporting Event TicketsEvent Tickets

Alex PopoutsisAlex Popoutsis

Final ProjectFinal Project

CS 403CS 403

Mission StatementMission Statement

To provide a positive experience to To provide a positive experience to consumers looking to purchase consumers looking to purchase tickets to sporting events, an tickets to sporting events, an experience which will make them experience which will make them want to return in the future.want to return in the future.

Objective StatementsObjective Statements We will provide the simplest and most efficient We will provide the simplest and most efficient

ticket purchasing experience to our users.ticket purchasing experience to our users. We will offer tickets to as many sporting events We will offer tickets to as many sporting events

as possible.as possible. Our service will be secure and trustworthy.Our service will be secure and trustworthy. Unlike larger ticket services, we will not charge Unlike larger ticket services, we will not charge

extensive additional fees for doing business with extensive additional fees for doing business with us.us.

We will offer exceptional customer service.We will offer exceptional customer service. Our pricing will be competitive with similar Our pricing will be competitive with similar

servicesservices

Competitive StrategiesCompetitive Strategies We will focus on sporting events. Unlike We will focus on sporting events. Unlike

larger companies, we cannot provide larger companies, we cannot provide tickets to all types events, so we will tickets to all types events, so we will have a niche.have a niche.

We will focus mainly on sporting events We will focus mainly on sporting events in the United States to start, until we in the United States to start, until we can build to the point where we can can build to the point where we can expand elsewhere.expand elsewhere.

We will focus on affordable tickets. The We will focus on affordable tickets. The best, highest-priced tickets are often best, highest-priced tickets are often difficult to obtain and sell.difficult to obtain and sell.

Competitive Strategies Competitive Strategies (continued)(continued)

We will make our system easier to use in We will make our system easier to use in order to differentiate the service we offer order to differentiate the service we offer and gain repeat customers.and gain repeat customers.

We will not charge hefty additional fees, We will not charge hefty additional fees, helping to make our prices even more helping to make our prices even more competitive with the bigger services.competitive with the bigger services.

We will sell advertising space in areas of We will sell advertising space in areas of the website as an additional revenue the website as an additional revenue stream.stream.

Users can print their own tickets from Users can print their own tickets from home, saving us extra overhead costs.home, saving us extra overhead costs.

Business FunctionsBusiness Functions PlanningPlanning

Deciding which markets and sporting events to focus onDeciding which markets and sporting events to focus on Designing the web siteDesigning the web site

MarketingMarketing Making the service appeal to potential customersMaking the service appeal to potential customers

Sales and SupportSales and Support Processing transactions, dealing with credit card Processing transactions, dealing with credit card

information, refunds, etc.information, refunds, etc. Customer support for users having issuesCustomer support for users having issues

FinanceFinance Managing revenuesManaging revenues Purchasing additional ticket suppliesPurchasing additional ticket supplies

Maintenance/SecurityMaintenance/Security Keeping site running smoothlyKeeping site running smoothly Securing customer informationSecuring customer information

Data EntitiesData Entities

EventsEvents TicketsTickets CustomersCustomers OrdersOrders SuppliersSuppliers

List of Information Systems List of Information Systems to be Developedto be Developed

Accounts PayableAccounts Payable Accounts ReceivableAccounts Receivable InventoryInventory Customer Data ProcessingCustomer Data Processing

IS Planning MatricesIS Planning Matrices

IS -> IS -> Data Data EntityEntity

EventEvent TicketTicket CustomCustomerer

OrderOrder SupplieSupplierr

Acct’s. Acct’s. PayablPayablee

XX XX

Acct’s Acct’s Rec’v.Rec’v.

XX XX

InventoInventoryry

XX XX XX

CustomCustomer Dataer Data

XX XX XX XX

Preliminary Feasibility Preliminary Feasibility ReportReport

This would be a feasible e-commerce This would be a feasible e-commerce system to set up. It would take some time system to set up. It would take some time to build the system up and make it to build the system up and make it competitive with bigger companies. competitive with bigger companies. However, it could be started small with However, it could be started small with room to grow. Off-the-shelf software also room to grow. Off-the-shelf software also could be used for portions. There would be could be used for portions. There would be some initial costs, and it would take some some initial costs, and it would take some time to recoup those costs, but relatively time to recoup those costs, but relatively speaking, this is a project worth taking on.speaking, this is a project worth taking on.

Tangible BenefitsTangible Benefits

Revenue from ticketsRevenue from tickets Revenue from advertisingRevenue from advertising Physical footprint is smallPhysical footprint is small Customer growth through word of Customer growth through word of

mouth and repeat customers due to mouth and repeat customers due to site’s design and usabilitysite’s design and usability

Intangible BenefitsIntangible Benefits

Users can save time by printing their Users can save time by printing their tickets from their computerstickets from their computers

We can measure demand trends for We can measure demand trends for various eventsvarious events

All Benefits and CostsAll Benefits and Costs

BenefitsBenefits Increased revenuesIncreased revenues Small physical Small physical

footprintfootprint Customer growthCustomer growth Convenience and Convenience and

ease of use for ease of use for customerscustomers

Easily measure and Easily measure and target certain target certain industry trendsindustry trends

CostsCosts Significant initial Significant initial

investment (time investment (time and money)and money)

Expansion will have Expansion will have to take place slowlyto take place slowly

Competitive Competitive industryindustry

Break Even AnalysisBreak Even AnalysisYear 0 Year 1 Year 2 Year 3 Year 4 Year 5 TOTALS

Net Economic Benefit $0.00 $50,000.00 $75,000.00 $100,000.00 $125,000.00 $150,000.00

Discount Rate (12%) 1 0.892857143 0.797193878 0.711780248 0.635518078 0.567426856

PV of Benefits $0.00 $44,642.86 $59,789.54 $71,178.02 $79,439.76 $85,114.03

NPV of all Benefits $0.00 $44,642.86 $104,432.40 $175,610.42 $255,050.18 $340,164.21 $340,164.21

One-time Costs ($500,000.00)

Recurring Costs $0.00 ($35,000.00) ($35,000.00) ($35,000.00) ($35,000.00) ($35,000.00)

Discount Rate (12%) 1 0.892857143 0.797193878 0.711780248 0.635518078 0.567426856

PV of Recurring Costs $0.00 ($31,250.00) ($27,901.79) ($24,912.31) ($22,243.13) ($19,859.94)

Break Even Analysis Break Even Analysis (continued)(continued)

NPV of all Costs ($75,000.00) ($106,250.00) ($134,151.79) ($159,064.09) ($181,307.23) ($201,167.17) ($201,167.17)

Overall NPV $138,997.04

Overall ROI 69.10%

Break-Even Analysis

Yearly NPV Cash Flow ($500,000.00) $13,392.86 $31,887.76 $46,265.72 $57,196.63 $65,254.09

Overall NPV Cash Flow ($75,000.00) ($61,607.14) ($29,719.39) $16,546.33 $73,742.96 $138,997.04

Break even occurs between 2 and 3 years

2.932 years

Break Even Analysis Break Even Analysis (continued)(continued)

Break Even Analysis

($100,000.00)

($50,000.00)

$0.00

$50,000.00

$100,000.00

$150,000.00

1 2 3 4 5 6

Year

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NP

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Series1

Baseline Project Plan Baseline Project Plan ReportReport

The expectation is that this project will take a little The expectation is that this project will take a little over a year to complete. Initial costs to create over a year to complete. Initial costs to create the Information System are estimated to be the Information System are estimated to be about $500,000. We will spend at least six about $500,000. We will spend at least six months in the planning and analysis stages, months in the planning and analysis stages, because we plan on using this system for a long because we plan on using this system for a long time. Once we have a firm grasp on exactly what time. Once we have a firm grasp on exactly what we want and what is achievable, we will send out we want and what is achievable, we will send out a Request for Proposals. Once we select a a Request for Proposals. Once we select a company, we will work with them for several company, we will work with them for several months to make a firm plan. Finally, after months to make a firm plan. Finally, after revisions have been completed and therevisions have been completed and the

Baseline Project Plan Baseline Project Plan Report (continued)Report (continued)

design is approved, implementation will begin. design is approved, implementation will begin. Several months will be allotted to the actual Several months will be allotted to the actual programming of the Information System, programming of the Information System, and then a significant of time (roughly six and then a significant of time (roughly six months) will be spent rigorously testing the months) will be spent rigorously testing the system to verify that it is stable, secure, and system to verify that it is stable, secure, and able to handle a sizable volume of users. able to handle a sizable volume of users. Once the system has been adequately Once the system has been adequately tested, it will be released for public use. tested, it will be released for public use. Maintenance costs from that time on are Maintenance costs from that time on are estimated at $35,000 per year.estimated at $35,000 per year.

Gantt ChartGantt Chart

Part TwoPart Two

InterviewsInterviews

Interview with Manager/Owner/ClientInterview with Manager/Owner/Client Five goalsFive goals

Ease of use by many users with varying Ease of use by many users with varying experienceexperience

SecuritySecurity International Support (flexible user interface International Support (flexible user interface

with reusable code)with reusable code) Operates well across browsers/screen Operates well across browsers/screen

resolutions/connection speedsresolutions/connection speeds No fee for usersNo fee for users

InterviewsInterviews

Interview with Manager/Owner/Client Interview with Manager/Owner/Client (continued)(continued) Takes 6-8 months to solicit ideasTakes 6-8 months to solicit ideas Key ComponentsKey Components

Human/Computer Interaction (GUI)Human/Computer Interaction (GUI) Database Structure/Connections (Search Database Structure/Connections (Search

engine?)engine?) Security (Payments, login information, Security (Payments, login information,

protection from hackers)protection from hackers) Help and SupportHelp and Support Communication/FeedbackCommunication/Feedback

InterviewsInterviews

Interview with Systems DeveloperInterview with Systems Developer ChallengesChallenges

Meeting schedulesMeeting schedules Coordinating between the client and the Coordinating between the client and the

development teamdevelopment team Important aspects of developmentImportant aspects of development

Having firm requirements Having firm requirements in writingin writing Compromising with the client in terms of Compromising with the client in terms of

planningplanning Code reusabilityCode reusability TestingTesting

InterviewsInterviews

Interview with potential userInterview with potential user Five requirementsFive requirements

Variety of eventsVariety of events Reasonable pricesReasonable prices Ease of use – search engine is very importantEase of use – search engine is very important SecuritySecurity Readily available customer supportReadily available customer support

No additional fees were an appealing No additional fees were an appealing ideaidea

He almost always buys his tickets onlineHe almost always buys his tickets online Online ticket sales clearly are a growing Online ticket sales clearly are a growing

market that would be good to get intomarket that would be good to get into

System RequirementsSystem Requirements

The following is a list of ten items that The following is a list of ten items that will be absolutely necessary in the will be absolutely necessary in the development of this information development of this information systemsystem Easy to useEasy to use Low-maintenanceLow-maintenance SecureSecure Can handle large amount of users online Can handle large amount of users online

(up to several thousand concurrently)(up to several thousand concurrently) We want to make sure we have room to growWe want to make sure we have room to grow

Likewise, can handle large database of Likewise, can handle large database of events and ticketsevents and tickets

System Requirements System Requirements (continued)(continued)

Can support several online payment Can support several online payment optionsoptions

Uses off-the-shelf components where Uses off-the-shelf components where availableavailable

Highly reliableHighly reliable Tested rigorouslyTested rigorously

Expandable and customizableExpandable and customizable Built to last at least five years, hopefully Built to last at least five years, hopefully

moremore

System ConstraintsSystem Constraints

We have several constraints that a We have several constraints that a system developer must agree to.system developer must agree to. The system must be developed in no more The system must be developed in no more

than 15 months.than 15 months. Our budget is $500,000 and the Our budget is $500,000 and the

development costs for this system should development costs for this system should not exceed that amount.not exceed that amount.

If it becomes necessary, we would be willing to If it becomes necessary, we would be willing to exceed our budget by no more than 5%exceed our budget by no more than 5%

We have a limited staff for maintenanceWe have a limited staff for maintenance We cannot afford high maintenance costsWe cannot afford high maintenance costs

System Constraints System Constraints (continued)(continued)

We cannot afford for the system to be built We cannot afford for the system to be built completely from scratchcompletely from scratch

We won’t be able to replace this system in the We won’t be able to replace this system in the very near future, so it needs to be long-lastingvery near future, so it needs to be long-lasting

We cannot afford the most expensive database We cannot afford the most expensive database software available, such as Oraclesoftware available, such as Oracle

We cannot afford the latest technology, so it We cannot afford the latest technology, so it must be able to run well on current technology must be able to run well on current technology for awhile without massive upgradesfor awhile without massive upgrades

We do not have many computer-savvy employeesWe do not have many computer-savvy employees We cannot afford to pay a full fledged support We cannot afford to pay a full fledged support

team, so any problems that come up must be team, so any problems that come up must be easy to resolve, and the system must be reliable easy to resolve, and the system must be reliable so that we don’t have to face many support callsso that we don’t have to face many support calls