Value Assessment

           There are numerous tangible benefits of using ADP as IVK’s human resource system.

VALUE

            Below is a chart of the estimated costs associated with each plan, based on the assumptions listed.

• Plan A is the current model, with no HR software system in place. This plan is very inefficient, time-consuming and has multiple redundancies.
• Plan B and Plan C are cases implementing the ADP HR Software at the 2 subscription models provided.

BENEFITS

            Below is a table outlining the benefits of implementing each plan. Each item is broken down to understand the greatest cost savings for Fiscal Year 1.  The largest benefits are an increase in efficiency, through employee self-service and the correct distribution of resources, targeting over-allocated resources.  Table 2 is a Figure that graphically shows the benefits of each plan. 

The table and chart above demonstrate a significant impact when instituting ADP HR Software into IVK. The tangible benefits in year one alone provide savings of over $434,000 and $560,000 for Plan B and Plan C, respectively. 

Intangible benefits to implementing the ADP system include:

• Environmental benefits:
• Reduced use of paper products and other resources. 
• Using less power to run printer and ink cartridges for printing. 

• HRMS are more organized and expedient document management/increased accuracy of employee info. The trend for business is going toward the intangible and service-based industry for consumers as well as for employees. 

• Engaged employees seem to remain with the company longer.More organized and expedient document management systems allow employees to have more autonomy to organizing their data and be more engaged (Weill & Woerner, 2014).  

• Careless users are the weakest link in any security system (Gallaugher, 2018).  Human resource management systems restrict access to employee information, limiting access to the employee and HR personnel designated for access. 
• Restricted access reduces the risk potential breaches & provides a better work environment.  Employees know that their information can't be found just lying around or upon just anyone's desktop. 

RECCOMENDATION

IVK should implement ADP as an HRIS solution. The up front cost for training, implementation, as well as the ongoing cost of the subscription service is minor compare to the illustrated savings. The labor force will be more efficient, streamlined, and better allocated. 

 References

Austin, R., Nolan, R.L., O’Donnell, S., (2016). The Value of IT. The Adventures of an IT

Leader. (pp. 71-88). Boston, MA: Harvard Business School Publishing.

Gallaugher, John. (2018) Information Security: Barbarians at the Gateway (and Just About 

Everywhere Else. (pp. 465-498). Information Systems: A Manager’s Guide to Harnessing 

Technology (Ver. 6). Boston, MA. FlatWorld

Garton, E. (2017, January 30). HR’s Vital Role in How Employees Spend Their Time, Talent and Energy. Harvard Business Review.  Retrieved from:  https://hbr.org/2017/01/hrs-vital-role-in-how-employees-spend-their-time-talent-and-energy

Lohrey, J. (2017, November 21). How to Evaluate Tangible Benefits. Retrieved October 22, 2018, from https://smallbusiness.chron.com/evaluate-tangible-benefits-78851.html

Weill, P. & Woerner, S. (2014). Optimizing Your Digital Business Model. MIT Sloan 

            Management Review. (pp. 1-7). Retrieved from: http://marketing.mitsmr.com/PDF/IT0314-MIT-CIO.pdf?cid=1