Sample Essay on Homework table

Homework table

Year 0 1 2 3 4 5 Total
Software licence (annual) $120000000 $8000000 $10000000 $5000000 $11000000 $5000000 $159000000
Implementation $250000000           $250000000
Support $15000000 $10000000 $10000000 $5000000 $12000000 $3000000 $100000000
Hardware (refresh every three years) $6000000     $5000000     $11000000
Productivity loss   $15000000         $15000000
Annual cost $7000000 $3000000 $2000000 $6000000 $3000000 $4000000 $405000000
Present value cost              


Chart pull saving   $200000000 $20000000 $5000000 $15000000 $20000000 $80000000
Transcription saving   $15000000 $10000000 $15000000 $20000000 $10000000 $70000000
Prevention of adverse drug events     $5000000 $20000000 $25000000 $10000000 $70000000
Drug savings     $35000000 $10000000 $23000000 $22000000 $90000000
Laboratory savings         $30000000 $20000000 $50000000
Radiology savings         $60000000 $25000000 $850000000
Charge capture improvement         $45000000 $30000000 $75000000
Billing error decrease         $30000000 $30000000 $60000000
Annual benefits   $35000000 $70000000 $50000000 $248000000 $167000000 $5550000000
Present value benefits              
Net benefits (cost) $70000000 $5000000 $50000000 $70000000 $2180000 1270000 $150000000
Present value of net benefits/cost              


Look back analysis entails evaluation of the various projects or mechanisms put in place mostly by businesses to enhance efficient and sustainable growth. Post implementation audit is notably the most common approach to evaluate the effectiveness of projects or programs initiated in an organisation. The effectiveness of the said projects is determined by the return on investment commonly referred to as (ROI). A good projection of return on investment outcome is achieved when post implementation audit is carried out in line with the basic steps required. However, before the project implementation audit is carried out, several factors should be considered and implemented. Like many projects or researches, a clear draft on the expected return on investment and the worthiness of the project should be formulated. The draft acts as a guideline in the process of evaluating the expected return on investment of the organisation or sector under study. Its importance is basically to give an idea of what is expected and how the process should be carried out without channelling efforts in unwanted sectors.

Moreover, mechanisms should be put in place to note and keep records of all changes that may have been initiated in the project. This will help in evaluating the effectiveness of these changes if any and also incorporate the cost incurred as a result of the same. The outcome of a good project or a research for that matter is a reflection of the individuals or a team that was entrusted with the same (Levinson, 2003). Consequently one should choose a reliable team that would carry out the intended audit. After coming up with an audit team, a strategy meeting should be held to evaluate and examine the appropriate method and manner in which the audit will be carried out. The follow up should be done to examine the business case together with the team tasked with implementation.

The team members will basically give their opinions on how well or effective they think the various tasks were met. To get vast knowledge in all the mechanisms involved and their operation, it is advisable that the test on systems and its control should be carried out. This will indeed confirm that the outcomes and general findings at the end are indeed true and valid. After examining the system and its control, the data should then be examined to ensure it is correct and valid and treatment of the same is advisable in situations where there are more outliers. It should be noted that some of the error s occur during the processing stages consequently rendering the whole process however correct it was unworthy. To curb this, a sample of transaction should be taken to confirm that the whole process is being carried out in the correct manner. This gives a chance for correction in case an error is detected during this stage (Levinson, 2003).

After processing this information, the next important stage should involve the finance wing to evaluate the system’s payoff or return. The evaluation should be done in a manner that incorporates every aspect that took place or that was involved. The audit team should at the end present a full audit report which should be compared to the business case or draft initiated earlier to evaluate if the intended goal was realised. The evaluation should further entail examining whether there were stages that things were wrongly done and also identify the stages or pints where things were correctly done. The conclusion of the whole process is that one or an organisation should work on the weak areas while maintaining the areas which were perceived to be strong.

To put into perspective the whole idea about post implementation audit, an example of IT installation project will be studied (‘Eight Steps for a Successful Post-Implementation Audit’, 2003). The study involves examining if there was any effect in installing web-based procurement system from ePlus. There was un-proofed hypothesis that indeed the installation of this technology enhanced efficiency in dealing with orders. To proof this hypothesis, a post implementation audit was conducted. Higgins who was from the IT department was behind the post implementation audit and revealed a number of factual information after the audit. Despite the return investment being lowered by the cost of ordering licences, the web-based procurement process turned out to be effective in that it was saving the company a substantial amount of money ($150,000 annually) which exceeded the costs by far.

From this outcome of the audit, it is clear that the information initially submitted was correct since the results proofs the hypothesis that there was a positive effect due to web-based procurement. The outcome is thorough since it tends to evaluate the general cost on newly incorporated mechanisms and compares it with the benefits that come along with it. It is through this comparison that the return on investment is found (‘Eight Steps for a Successful Post-Implementation Audit’, 2003).

To improve the analysis and future evaluations, some factors ought to be considered to realise this. The issue of having the correct personnel or the correct people to carry out such missions is highly recommended. This ensures competency and smooth execution of the whole process. The choice of correct personnel also minimizes chances of having biased or skewed analysis of the audit process. The appropriate timing should also be considered to ensure that the audit reflects the real situation of the subject study. The timing also ensures the process is carried out in a confined time to allow facilitation and implementation. The timing should also be appropriate to enhance there is enough data to be evaluated or analysed in the process. Wrong timing definitely leads to incomplete results since the data itself is not complete and hence the results cannot be relied on. Experts recommend that post implementation audit should be carried out a year after installation.

The other important aspect to consider is collecting the right or appropriate documents and materials. This ensures that the appropriate audit is carried out with the correct information being considered for analysis and evaluation. Good documentation further creates time for review in future in case need be. The documentation should also contain in details any changes made in the subject study at any given time. The other weighty aspect to put into consideration is implementation or actualisation of the lessons learned. However a meeting by audit team is encouraged to look at what went right or wrong in the whole process. The lessons learned should be availed to all stakeholders to ensure they are well conversant with them hence smooth implementation can be realised. The last factor is maintaining the momentum of post implementation audit. This should be easy since there is tangible proof that the post implementation audit has more advantages compared to demerits. The return on investment can also be easily realised as a result of well implementation and maintaining the post implementation audit.


Levinson, M. (2003). How to Conduct Post-Implementation Audits. CIO. Retrieved 4 November 2015, from http://www.cio

“Eight Steps for a Successful Post-Implementation Audit.” (2003). Retrieved from