Wearable
computing
Table of Contents
Activity
B
Executive
summary
Present report analyzes the concept of wearable
computing devices and explores financial viability of the wearable computing
project in an organizational environment so as to avoid issues in salary
processing system. Wearable computing devices can be effectively used for
developing automatic attendance system thereby maintaining an up to date time
sheet. Financial modeling for the present project provides the NPV, payback
time, PI and sensitivity analysis. Looking into the positive financial aspects
for the present project it is recommended to implement the project of wearable
computing in this organization for smooth salary processing system.
Part-1
1.0
Introduction
For human resource oriented organizations it is
important to keep up to date time sheet record so that salary processing can be
done smoothly without any issues faced in salary calculations for employees.
Such calculation sheet would provide accurate salary estimation and timely
salary processing of salary can be done in the organizational environment (Thorp, 2008).
The issue faced in the present context is pertaining to provide up to date time
sheet record for salary processing. As CTO of the organization such time sheet
preparation technology needs to be recommended in the organization which can be
used as a key tool in the organizational environment. Present report would
provide the background research into wearable identification tags project and
would develop the business case by analyzing financial aspects for the present
plan. The financial modeling for the present project would be aimed at getting
funding for the present project by providing payback period, NPV, IRR and
profitability index. Further sensitivity analysis would be done to understand
impact of change in various financial parameters on project.
2.0
Background of the wearable identification tags project
Wearable mobile computing can be understood as a
source of empowering professionals for the higher level of productivity with
intended seamless information flow, coordination and communication at the
workplace. A suitable example of the
wearable identification tag project can be an automatic attendance system
through which time sheet for the employees can be managed up to date for
calculating salary of the employees.
2.1
Utilization of wearable computing- automatic attendance system
An attendance tracking system can be developed with
the use of wearable computing method wherein with the help of scanning system
time wastage made in the card punching system can be saved and automatic attendance
can be updated by using the wearable technology. The first step to such a
system would require providing a unique ID to the each employee for which
attendance needs to be marked (Katherine, 2013). This ID provides would be
able to scan through the system with help of barcode, prox chip or magnetic
strip embedded into it. In case no such IDs have been provided by the company
it is recommended to develop the card printer with unique ID so that smooth
attendance tracking system can be developed in the organization.
Further organization need to locate number of
tracking systems at which ID would be scanned and such systems can be a
computer with reader embedded into it or independent terminal developed for the
attendance system. Terminal can be placed at locations where pc can’t be
located and would contain integrated reader and scanned with it. Both terminal
or pc systems managed at the entry point manage login for the individual
employees and record their timing. Such systems can be batch collecting system
or can be in form of network so as to provide real time updates for the
attendance of employees. Each terminal would record at least two basic aspects
which are user ID and timing while additional details as per the requirement
can also be collected through this system (Michael, 2012).
This system would be compatible with other systems
so that data from this system can be easily uploaded into payroll management
system and other accounting systems for the salary processing of
employees. With high level of software
in place time and attendance management systems used in the organization would
be able to develop fully integrated business solution in order to enhance
organizational performance & monitoring employee’s working timings.
2.2
Risk associated with wearable computing
Some of the major risks associated with wearable
computing systems can be enlisted below with their possible mitigates:
§ Threat
of losing sensitive information: A wearable computing device has high chances
for getting lost somewhere as these are present with a person at every time.
Hence the login credential or vital organizational information is at risk. In
order to mitigate this threat it is important to protect the wearable device
with hardware and data contained inside should be encrypted.
§ Authentication:
Wearable computing systems would not track the availability of particular
person at the time of attendance hence there is possibility that fraud can take
place in lack of proper authentication. It is recommended that proper biometric
solutions needs to be provided for authentication (John, 2011).
§ Hostile
environment and unsecure network: It is not recommended to make use of the
wearable computing systems and laptop outside from the area of wireless network
control. This may have several security, encryption and information integrity
issues associated with it. Usage outside the network area may lead to attack on
information system for the information sent as well as on the information
available on network. Integrity checks and encryption would require processing
power putting limitations to the encryption algorithm and encryption key used
for wearable computing devices (Urban et al, 2013).
§ Body
area network security: Body area network is formed by the wearable computing
device, sensors and other devices forming the entire system. The information
contained in system is at risk in case wearable are identified and electronic
identity is stolen.
2.3
Advantages and disadvantages
Advantages and disadvantages of using wearable
computing devices can be summed as under:
Advantages
1. Wearable
computing devices provide enhanced communication wherein with the help of
wearable computing range of communication increases and no manual intervention
is required
2. Wearable
computing devices offer unique solution for completing daily task as these can
be used in order to track the habits and movement of a person
4. Wearable
computing devices provide freedom as there is no physical contact required with
the reader devices (Edward, 2012)
5. There
is high degree of convenience associated with wearable computing devices
6. Work
from anywhere can be done using wearable computing devices
Disadvantages
1. Sometimes
equipment used for the wearable technology can be highly expensive and bulky
2. Wearable
computing devices on some instances may include complex wiring system which
would create problem while wearing
3. Wearable
computing devices can create harmful impacts on human body
4. There
can be several misuses of wearable computing devices
5. In
case the device is stolen information contained in the device or at system
might be at risk (Hubert, 2008)
2.4
Infrastructure required
In order to develop wearable computing system for
attendance tracking of employees in any organization four major components of
infrastructure would be required. Important elements of infrastructure required
for this project along with their specification can be given as specified
under:
§ Software
for tracking time: This software would be the central unit to entire attendance
or time tracking system. This system would determine details which need to be
tracked and the way in which these details would be reported. In order to
select particular time tracking software two important points of consideration
would be the compatibility of this software with other systems in organization
such as payroll system & accounting system and support extended for
different ID types (Bilton, 2012). These two factors would determine the best
fit in terms of time tracking software used for the time tracking or automatic
attendance system (Zieniewicz et al, 2012).
§ Terminal
or pc with reader: A fixed terminal or pc with reader would do the job of
identification of the ID card issued to the employees. It is recommended to use
fixed terminal in place of pc so as to save space and most of the terminal
would be having scanner and readers embedded into them for developing complete
attendance tracking solution.
§ Magnetic
strip, Prox reader or barcode scanner: In order to track any individual some
mean of tracking would be required. Based on the particular technology used for
the ID card identification readers can be implemented in the attendance tracking
systems (Collins, 2007).
§ ID
card printer: Every employee would be provided with an ID on which barcode or
magnetic strip would be employed for identification. ID card printer device
would help in developing cards keeping in mind security and customization
features for the particular organization.
2.5
Best practice for managing wearable tags
Best practices needs to be managed for the wearable
tags as these are the most vulnerable devices where information attacks can
happen and an organization may get invader to their information security
systems through wearable tags. Some of the major best practices for wearable
tags includes below mentioned:
§ While
uploading the data into wearable tags it should be properly encrypted so that
in case such tags are stolen or lost then other user might not make sense out
of the data contained in the tags
§ Wearable
tags should be embedded into hard body so that in case these are fallen down or
hit by something there is no damage to the tags (Steve, 2009)
§ Biometric
systems should be implemented at the terminal so that when someone makes
unauthorized use of the tag then through biometric technology that person can
be identified
§ Strong
security measures should be adopted in order to avoid pairing of the wearable
tags so that through pairing with other devices there are no data lose
happening from the wearable tags
§ Wearable
tags should be avoided against the threat of local read and write memory
Part-2
Business
case
This section present the business case for the
proposed wearable tag attendance system implemented for the organization.
Hypothetical value for benefits obtained through such system has been adopted
over four years by making correct salary calculations and saving cost through
timely processing of salary in a human resource intensive organization. As
evident through below table that present project has capability to generate
positive cash flows from second year only hence payback period for the present
project would be 2 years.
Year
|
Cash Flow
|
Cumulative Cash flow
|
0
|
0
|
0
|
1
|
-36000
|
-36000
|
2
|
37000
|
37000
|
3
|
94000
|
131000
|
4
|
94000
|
225000
|
Payback Period
|
2 Years
|
|
IRR
|
149%
|
|
Year
|
Cash Flow
|
PV @ 10%
|
PV
|
|||
0
|
0
|
0
|
0
|
|||
1
|
-36000
|
0.909
|
-32724
|
|||
2
|
73000
|
0.827
|
60371
|
|||
3
|
94000
|
0.752
|
70688
|
|||
4
|
94000
|
0.683
|
64202
|
|||
Total Present Value
|
162537
|
|||||
(Investment)
|
-125000
|
|||||
NPV
|
287537
|
|||||
PI
|
1.300296
|
Accept the Business Plan
|
||||
Internal rate of return for the present project
would be quite high at 149%. Further present project would provide NPV of
$287537 in four year duration and profitability index for the present project
would be 1.3 hence looking into the profitability index and positive NPV for
the current project it is recommended to accept the business plan.
Part-3
Sensitivity
analysis
Sensitivity analysis for the present project shows 4
year time duration and related sensitivity analysis by increase and decrease in
cost factors and benefit obtained through the current project. As shown in the figure below that project is
not highly sensitive to the increase in cost by some percentage as overall
profitability of the project is very high hence by some variation in cost
percentage there would not be much difference in overall project financial
analysis.
Particulars
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Net benefits
|
-36000
|
73000
|
94000
|
94000
|
Revenues
|
||||
Benefit Decrease by
25%
|
37500
|
75000
|
75000
|
75000
|
Benefit Increase by
25%
|
62500
|
125000
|
125000
|
125000
|
Expenses
|
||||
Infrastructure Costs
decrease by 25%
|
15000
|
15000
|
0
|
0
|
Infrastructure Costs
Increase by 25%
|
25000
|
25000
|
0
|
0
|
Total cost increase by
10%
|
94600
|
29700
|
6600
|
6600
|
Net Income if Volume
decrease by 25%
|
-48500
|
48000
|
69000
|
69000
|
Net Income if benefit
increases by 25%
|
-23500
|
98000
|
119000
|
119000
|
Net Income if
Infrastructure cost decrease by 25%
|
35000
|
85000
|
100000
|
100000
|
Net Income if
infrastructure cost increases by 25%
|
25000
|
75000
|
100000
|
100000
|
Net Income if Total
cost increase by 10%
|
-44600
|
70300
|
93400
|
93400
|
Conclusion
and recommendations
Present report has shows the technology of wearable
computing device which can be effective in order to resolve issue faced in
present context for the up to date time sheet for salary processing. Looking
into the financial analysis for the present project with positive NPV over four
year duration and above 1 profitability index it is recommended to implement
the wearable computing technology for resolving issues faced in the
organization for smooth salary processing.
References
Thorp, E (2008). "The Invention of the First Wearable
Computer". Digest of Papers.
Second International Symposium on Wearable Computers (Cat. No.98EX215):
4–8.
Katherine W (2013). "Marketing Wearable Computers to Consumers: An
Examination of Early Adopter Consumers' Feelings and Attitudes Toward Wearable
Computers". Washington, DC.
John E (2011). "The History and Evolution of the Wristwatch". International Watch Magazine.
Urban, K, Dick M and Tom B, 2013, Proceedings of Wearables in 2012,
Arlington, VA.
Edward O, 2012 "Optimal gambling systems for favorable game." Review of the International Statistical
Institute, V. 37:3, pp. 273–293.
Hubert U (2008). "Wearable Eyeglass Speechreading Aid". American Annals of the Deaf 113:
222–229.
Bilton, N (2012). "Behind the Google Goggles, Virtual
Reality". The New York Times.
Retrieved 24 April 2014.
Collins, L. Scadden, A and Alden, B, 2007, "Mobile Studies with a
Tactile Imaging Device," Fourth
Conference on Systems & Devices For The Disabled, Seattle WA.
Steve M, 2009, "An historical account of the 'WearComp' and
'WearCam' inventions developed for applications in 'Personal Imaging,'" in
The First International Symposium on
Wearable Computers: Digest of Papers, IEEE Computer Society, 1997, pp.
66–73
Zieniewicz, M. Johnson, D. Wong, J. (2012). "The Evolution of Army
Wearable Computers". Pervasive
Computing. 4 1: 30–40.
Appendix-A
Activity
A: Journal
Apr
1, 2014 Technology in context (2 days)
Brief introduction of the wearable technology along
with usage of wearable computing technology in present age organization was
studied by understanding the usage of wearable computing technology for the ID
management system. Website http://www.wearable-technologies.com/2012/05/wearables-for-identity-management/
was referred in order to understand the usage of wearable computing in present
age ID management and attendance systems.
Apr
5, 2014 Application of wearable computing (3 days)
In order to understand the application of wearable
computing systems in present age organizations case of Oracle HR system was
referred. Website named http://marksmith.ventanaresearch.com/2014/02/22/oracle-modernizes-hr-with-mobile-and-wearable-computing/
was referred in order to access the article named Oracle Modernizes HR with
mobile and wearable computing. This helped in building the basic understanding
about the application for attendance system and implementing ideal case for the
management of wearable computing systems in present age complex organization
for their HR functions such as payroll management.
Apr
10, 2014 Working of wearable computing
Working principle for the wearable computing systems
such as to manage the automatic attendance of employees in the organization was
explored with the help of site http://www.wearitatwork.com/home/discovering-ubiquity/.
Further book name “Invention of first wearable computer” by Thorp, 2008 was
referred. This provides the history of wearable computing methods and basic
technology behind the wearable computing systems.
Apr
15, 2014 Security threats of wearable computing
Information week was referred in order to explore
various security threats of wearble computing method with http://www.informationweek.com/big-data/big-data-analytics/wearable-computing-equals-new-security-risks/d/d-id/1113411
link. Several security threats which are probable into present age wearable
technology and can harm the organizational system for maintaining wearable
computing were understood so as to mitigate these risks with the technology and
employee training.
Apr
20, 2014 (4 days)- Financial modeling
In order to develop the financial viability for
present business case financial modeling principle were understood in detail so
that proper calculations for a project regarding NPV, IPP, Payback time and
sensitivity analysis can be done. Financial modeling was studied through
several internet resources and books providing financial information for the
viability of a project.
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