Investment project analysis of e customs for the authorized economic operator

TRNG I HC M TP. HCM UNIVERSITÉ LIBRE DE BRUXELLES
HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBAVB4


DO NGUYEN SON KHIEM




INVESTMENT PROJECT ANALYSIS OF E-CUSTOMS FOR
THE AUTHORIZED ECONOMIC OPERATOR




MASTER PROJECT
MASTER IN BUSINESS ADMINISTRATION
(PART-TIME)

Ho Chi Minh City
(2011)


i

ACKNOWLEDGEMENT:
I would like thank to all professors from Solvay Business School, they gave
the value knowledge which help me a lot during doing the thesis and also in daily
work.
Besides, I would like to say thank you to professors, doctors of the Ho Chi
Minh City Open University for the basic knowledge which I did not have during my
engineering degree. The basic knowledge helps me a lot during most of courses of
the MBA.
I highly appreciate for all of the help from counselors of Solvay Business
School and Ho Chi Minh City Open University.
Especially, I would like to say thank you to Dr. Nguyen Minh Ha, my tutor of
the final thesis. His guidance, information, patience are invaluable. My thesis will
not be completed without his tutoring.
My family, especially my daughter, supports a lot during past two and half
years studying. With all of family‟s encourage, supporting, sympathizing, I finished
the program.
Last but not least, thank for all of patience, supporting, opening, guidance
from my classmates and colleagues.

ii

COMMITMENTS

With the academic knowledge learning from whole course of MBA and
guiding from tutor, I applied in studying and doing the study. This study with topic
“Investment Project Analysis of E-Customs for the Authorized Economic Operator”
is my own work
All data obtained in this study are true, confidential, might be the business
opportunity and never announced in any other projects.

iv

TABLE OF CONTENTS

ACKNOWLEDGEMENT: i
COMMITMENTS ii
TUTOR‟S COMMENTS iii
TABLE OF CONTENTS iv
LIST OF FIGURES vii
LIST OF TABLES viii
ACRONYMS x
EXECUTIVE SUMMARY 1
CHAPTER ONE: INTRODUCTION 3
1.1 Problem statement: 3
1.2 Objective of the study 6
1.3 Scope of study: 7
1.4 Method and data of study 8
1.5 Significance of this study 8

1.6 The project structure: 9
CHAPTER TWO: INTRODUCTION TO COMPANY AND THE PROJECT 10
2.1 Overview of company 10
2.2 Overview of project 12
CHAPTER THREE: THE PROJECT ANALYSIS 15
3.1 Market analysis: 15
3.1.1 Demand from authorized economic operator in Vietnam 17
3.1.2 Supply to authorized economic operator in Vietnam 20
3.2 Technology analysis 21
3.2.1 Steps to make one declaration: 24
3.2.2 Technical requirement: 25
3.2.3 Investment: 27
3.2.4 Operating cost: 29
3.3 Labor and organization analysis: 32
v

3.3.1 Organization chart 32
3.3.2 Project team chart: 33
3.4 Financial analysis 35
3.4.1 Capacity of the application 37
3.4.2 Revenue of the project 38
3.4.3 Labor cost 39
3.4.4 Cost of Goods Sold (COGS): 40
3.4.5 Operating expense: 41
3.4.6 Pro income statement: 42
3.4.7 Working capital: 44
3.4.8 Pro cash flow statement: 45
3.4.9 Project evaluation: 48
3.4.10 Risk analysis 51
3.4.10.1 Financial perspective risk: 51

3.4.10.2 Technical perspective risk: 59
3.4.11 Simulation 60
CHAPTER FOUR: CONCLUSION AND RECOMMENDATIONS 65
4.1 Conclusion 65
4.2 Advantages of the project 66
4.3 Recommendations 67
REFERENCES: 68
APPENDIX 71
Appendix 1: Salary expenses 71
Appendix 2: Revenue and COGS 72
Appendix 3: Investment and Expenses 73
Appendix 4: Cash flow statement of the normal case 75
Appendix 5: Cash flow statement in the good case 77
Appendix 6: Cash flow statement of the bad case 79
vi

Appendix 7: Cash flow statement of the case of volume of cargo reduced 50% 81
Appendix 8: Cash flow statement in the case of inflation 83
Appendix 9: Sensitive analysis of price and volume of CDS to NPV 85
Appendix 10: Examples of quotation 87
Appendix 11: IT equipment technical specifications 89
vii

LIST OF FIGURES

Figure 1-1: Topology of E-customs 6
Figure 1-2: Process of project 7

Figure 2-1: Corporate structure 11
Figure 2-2: Project timeline 14

Figure 3-1: Market share of freight forwarder 15
Figure 3-2: AFR market share 15
Figure 3-3: OFR market share 16
Figure 3-4: E-Customs message flow 22
Figure 3-5: XML routing for import 23
Figure 3-6: XML routing for export 23
Figure 3-7: Organization chart 32
Figure 3-8: Project chart 33
Figure 3-9: Operation team 34
Figure 3-10: Macroeconomic data and forecasts of Vietnam 49
Figure 3-11: Macroeconomic data and forecasts 56
Figure 3-12: Price assumption 60
Figure 3-13: NPV in the case of price changed 61
Figure 3-14: Volume of CDS changed 62
Figure 3-15: NPV in the case of volume of CDS changed 62
Figure 3-16: Price assumption 63
Figure 3-17: Volume of CDS changed 63
Figure 3-18: NPV in the case of volume of CDS changed and price changed 64
viii

LIST OF TABLES

Table 1-1: Real GDP growth 3
Table 1-2: Logistics Performance Index 4

Table 2-1: Customs declaration method comparison 12

Table 3-1: Volume of CDS of the project during 6 years 18
Table 3-2: Volume of CDS declared as service during 6 years 19

Table 3-3: Total investment 27
Table 3-4: Onetime cost 27
Table 3-5: ICT equipment 28
Table 3-6: Depreciation and amortization („000USD) 29
Table 3-7: Maintenance cost 29
Table 3-8: Power consumption 30
Table 3-9: Price of electricity for corporations 30
Table 3-10: Power consumption expense – operator usage 30
Table 3-11: Power consumption expense – IT usage 31
Table 3-12: Office rental expense for operator 31
Table 3-13: Office rental expense for IT 32
Table 3-14: Cost for labor during project implementation (in 6 months) 33
Table 3-15: Salary expenses, number of labor required for production 34
Table 3-16: Advantage and Disadvantage of financial evaluate method 37
Table 3-17: Revenue of the project ('000 USD) 38
Table 3-18: Salary expense during 6 years production („000 USD) 39
Table 3-19: Salary for direct labor for customs clearance service („000 USD) 40
Table 3-20: Salary for indirect labor of customs clearance service („000 USD) 40
Table 3-21: Expense for CDS per year 41
Table 3-22: Cost of Goods Sold (COGS, „000 USD) 41
Table 3-23: Operating expense in 6 years („000 USD) 42
Table 3-24: Pro income statement of the project („000 USD) 43
Table 3-25: Account receivable, account payable, cash balance („000USD) 45
Table 3-26: cash flow statement for freight supplier („000 USD) 46
Table 3-27: Financial figure in normal case 50
Table 3-28: Payback period in normal case 50
Table 3-29: Financial figure in good case 51
Table 3-30: Payback period in good case 51
Table 3-31: Financial figure in the case of increasing one line per year 51
Table 3-32: Payback period in the case of increasing one line per year 52

Table 3-33: Financial figure in the case of volume of cargo is reduced 52
Table 3-34: Payback period in case volume of cargo is reduced 52
Table 3-35: Sensitive analysis of price and initial investment to NPV 53
ix

Table 3-36: Sensitive analysis of price and volume of CDS to NPV 54
Table 3-37: Financial of project with inflation impact („000 USD) 57
Table 3-38: Financial figure in the case of inflation impacts 58
Table 3-39: Financial figure in the case of no inflation impacts 58
Table 3-40: Payback period with inflation impacts 59
Table 3-41: Table of standard deviation 61
Table 3-42: Table of standard deviation 63
Table 3-43: Financial figures summary 65
Table 3-44: Risk cases summary 66
x

ACRONYMS

AEO : Authorized Economic Operator
AFR : Air Freight
AP : Account payable
APEC : Asia-Pacific Economic Cooperation
AR : Account receivable
AS2 : Applicability Statement 2
ASEAN : Association of Southeast Asian Nations
ASEM : Asia–Europe Meeting
BCP : Business Continuity Plan
BOM : Bill Of Material
CDS : Customs Clearance Sheet
COGS : Cost of Goods Sold

CPV : Communist Party of Vietnam
DB2 : Database 2
EDI : Electronic Data Interchange
EDIFACT : Electronic Data Interchange For Administration Commerce
And Transport
EPV : Equity Points of View
FCF : Free Cash Flow
GDP : Gross Domestic Product
IRR : Internal Rate of Return
MDN : Message Disposition Notification
MOF : Ministry of Finance
NPV : Net Present Value
OFR : Ocean Freight
PBP : Payback Period
SEV : Samsung Electronics Vit Nam
SHTP : Saigon High-Tech Park
SQL : Structured Query Language
SSL : Secure Sockets Layer
xi

SWOT : Strengths Weaknesses Opportunities Threats
TIP : Total investment points of view
TVM : Time Value of Money
URL : Uniform Resource Locator
XML : Extensible Markup Language
Y-O-Y : Year on Year
WCO : World Customs Organization
WTO : World Trade Organization

1

EXECUTIVE SUMMARY

Starting from the requirements of integration and development trends of
international customs, Vietnam Customs need to fulfill international commitments
related to customs within the framework of WTO, ASEAN, APEC, ASEM, WCO
and other international organizations. Performing customs clearance simple,
transparent and providing information quickly, openly, especially to clear the goods
faster to reduce costs for businesses are basic requirements for Vietnam

Customs. The number of foreign trade is increasing while the number of customs
officers could not rise in proportion; in the other hand, information technology and
e-commerce in many areas is developing, a new method of customs management
procedures is the need, it is the e-customs procedures.
E-Customs not only changes the customs management method following
the modernization trend, in accordance with international customs practices, but
also holds the important role in foreign trade, import export developing and
attracting foreign investment.
In order to attract foreign investment with huge capital, Vietnam government
in general and Vietnam Customs in particular grant the advantage for some
corporates, which meet the requirement about finance, law criteria, as the
authorized economic operator with many advantages in customs procedure.
To apply E-customs for authorized economic operator with advantages in
customs clearance process, Vietnam Customs proposes the new E-Customs
standard, which is different to E-Customs for normal business. Freight forwarder
which provides import export services to authorized economic operator may invest
the customs clearance system under new standard. Since this is the pilot project,
no one knows exactly how good it is, the project should be analyzed on several
aspects such as technical, market, and financial perspective.
Technical perspective provides the understanding about requirement of
system, how freight forwarder utilizes resource for technical; besides, freight
forwarder needs to have the market overview on this special segment; together
with aspects about technical and market overview, financial figure of project
should be analyzed by popular methods: Net Present Value (NPV), Internal Rate
2

of Return (IRR) and Payback Period (PBP); based on result from financial
analysis, investors make the decision whether or not to invest in.
Under financial perspective, the project is analyzed in normal situation and
inconvenience situation. Since the result in normal situation gives NPV positive,

IRR greater than discount rate and PBP shorter than duration of contract, it is
optimistic to say to invest in the project is the right decision. Besides the financial
analysis in normal situation, where the project is in good condition, the study also
brings some risk cases (e.g. inflation, business growth not good, more
competitors) that might lead the project fails; the results bring clear picture about
financial perspective. It helps investors easy to make a decision to invest in.
3

CHAPTER ONE: INTRODUCTION

1.1 Problem statement:
Stance on economic reforms will continue over the coming years. Vietnam‟s
socioeconomic target for 2011 indicates an increased focus on achieving
macroeconomic stability and controlling inflation, and also target for the real GDP
growth at 7.5%. Vietnam also stances on economic reforms continue over the
coming years.
The direction of Vietnam‟s economic policies would remain unchanged,
continue to center on opening the economy to foreign competition, addressing
corruption, promoting trade and upgrading the country‟s infrastructure and
technology, also remains dedicated towards continuing the „Doi Moi‟ (meaning
„renovation‟) process of market-oriented reforms, tries to become a fully
industrialized economy by 2020. Vietnam will continue to move in the direction of a
market-based economy (Business Monitor International, 2011).
The economy of Vietnam is growing fast within period from 2000 to 2010
with average of GDP growth 7.2%.

Table 1-1: Real GDP growth
Year
2008
2009e

2010e
2011f
2012f
2013f
2014f
2015f
Real GDP growth,
% change y-o-y
6.3
5.3
6.8
6.3
7.2
7.2
7.2
7.2
Notes: e: estimate, f: forecast
Source: Business Monitor International, 2011

Based on the growth of GDP from table 1-1, it is optimistic to say the
economics of Viet Nam is stable, safe, and well growth; with the good economic
environment, Vietnam attracts foreign investment in many factors, it premises the
developing of logistics segment.



4

Picture of Vietnam Logistics and Freight:
Business Monitor International (BMI) forecasts 2011 GDP growth of 6.3%

(down from 6.8% in 2010). Outlook for 2012 is for growth to accelerate again to
7.2%. In the five years to 2015 growth is expected to hit the average 7.0% per
annum, confirming Vietnam as one of the fastest-growing economies in Southeast
Asia.
According to Logistics Performance Index (LPI), Vietnam ranked at 53
rd
out
of 155 countries. Besides, total revenues from logistics services estimated at
about 15%-20% of Vietnam's GDP (about 12 billion USD per year).

Table 1-2: Logistics Performance Index
Int.
Country
LPI
Customs
Infrastructure
International
shipments
Logistics
competence
Tracking &
tracing
Timeliness
2
Singapore
4.1
4.02
4.22
3.86
4.12

4.15
4.23
27
China
3.5
3.16
3.54
3.31
3.49
3.55
3.91
29
Malaysia
3.4
3.11
3.5
3.5
3.34
3.32
3.86
35
Thailand
3.3
3.02
3.16
3.27
3.16
3.41
3.73
44

Philippines
3.1
2.67
2.57
3.4
2.95
3.29
3.83
53
Vietnam
3
2.68
2.56
3.04
2.89
3.1
3.44
75
Indonesia
2.8
2.43
2.54
2.82
2.47
2.77
3.46
118
Lao PDR
2.5
2.17

1.95
2.7
2.14
2.45
3.23
129
Cambodia
2.4
2.28
2.12
2.19
2.29
2.5
2.84
133
Myanmar
2.3
1.94
1.92
2.37
2.01
2.36
3.29
Source: World Bank, 2011

Many huge corporations of high-tech manufacturing are investing billions of
dollars in Vietnam since last ten years, especially after Vietnam became the 150
th

member of WTO. Japanese investors arrived Vietnam earliest with many projects

from huge corporations (e.g Canon, Sony, Fujitsu, Toshiba, Panasonic, Nidec,
etc), and currently are pouring more capital to expand the business. For instance,
Nidec invested 100 million USD for factories at Tan Thuan Export Processing
Zone (HCMC), 50 million for two factories at SHTP (Saigon High-Tech Park),
these projects are just a small part of the plan of 1 billion USD investments to
SHTP of Nidec Corporation. Another Japanese corporation invests in the north of
5

Vietnam, Canon, with 100 million USD for printer factory at Thang Long Industry
zone (Ha Noi), and 200 million for other factories at Que Vo Industry Zone (Bac
Ninh). Same place with Nidec is Intel, the US giant semiconductor corporation,
with the investment of 1 billion USD; and Jabil with 100 million USD joined the
SHTP. Not only Canon invests to Bac Ninh, but also several huge electronics
corporations like Foxconn which provides electronic component for most of
famous brand name such as HP, Lenovo,Nokia; Foxconn is investing to Que Vo
and some other locations with total investment of 5 billion USD; Samsung
Electronics Vietnam with 1 billion USD for the cell phone factory with capacity of
1.5million set/month. In year 2012, Nokia will arrive Bac Ninh with 200 million Euro
(Hung Minh, 2011).
In order to deliver high-tech product quicker and safer, high-tech companies
prefer using air freight to lift their cargo. The pilot authorized economic
organization also needs the procedure of customs clearance to be speeded up as
much as possible.
Starting from the requirements of integration and development trends of
international customs, Vietnam Customs needs to fulfill international commitments
related to customs within the framework of WTO, ASEAN, APEC, ASEM, WCO
and other international organizations. Requirements for Vietnam Customs are to
perform customs clearance simple, transparent and providing information quickly,
openly, especially to perform fast clearance in order to reduce costs for
businesses. While the numbers of export import goods, passengers increasing,

the number of customs officers could not rise in proportion, on the other hand with
the development and application of information technology and e-commerce in
many areas, the E-Customs procedure is a new method of management of
customs procedures.
As a part of administrative reform, in line with Decision 149/2005/Q-TTg
dated 20/06/2005, the E-Customs procedures were implemented by Vietnam
Customs. 15/12/2009, Vietnam Customs decided to expand the pilot for E-
Customs following Decision 103/2009/Q-TTg and Circular 222/2009/TT-BTC.
The E-Customs procedure is not only applied for normal business
organizations but also is applied for the authorized economic operator (AEO). To
6

give more advantage for the authorized economic operator with huge investment,
Vietnam Customs proactive to issue special decisions that help a declaration
procedure simpler, clearer (i.e. Decision 1608/Q-TCHQ for pilot authorized
economic operator).

Figure 1-1: Topology of E-customs
INTERNET
VAN Data Center
Customs Broker
Vietnam Customs
Standard xml format file
Customs Broker
Customs Broker
Customs Officer
Customs Officer
Customs Officer
E-Customs Application for
business organization

E-Customs Application for
business organization


Source: Drawing by author based on Vietnamese version from Vietnam Customs
website

1.2 Objective of the study
This study describes the project of implementation system of E-Customs
with special standard at import export organizations, freight forwarders in order to
support to the pilot authorized economic operator.
The study is chosen in order to show how good benefit of project brings to
freight forwarders based on technical perspective and financial perspective.
In order to prove that the project should be invested in, the study shows the
full picture of following aspects:
7

 Supply and demand for authorized economic operator.
 How the system looks like.
 Capacity of the system.
 Estimation of labor cost, initial cost.
 Total investment cost.
 Calculation of NPV, IRR, PBP.
 Showing risks may impact to result of project.
 Analysis results give conclusions whether investor should implement this
project.

1.3 Scope of study:
The project is a kind of the implementation of information technology project based
on the need of business. The process of project is described as figure 1-2

Figure 1-2: Process of project

Source: Frailey, 2005

8

The E-Customs mentioned in this project is E-Customs for authorized
economic operator. Another customs declaration using internet which so-call E-
Customs may be out of this scope.

Limitation of the study:
In order to prove that the project of implementation system of E-Customs
for authorized economic operator is the key element for freight forwarders which
provide services for authorized economic operator and the decision of investment
this project is value decision.

1.4 Method and data of study
Primary data: Because the segment for authorized economic operator is currently
in pilot stage, no historical data; besides, this study links to confidentiality business
information of freight forwarder itself, customer, counterparts; so key information is
collected through directly interviewing from high level colleagues, colleagues who
are supporting the first authorized economic operator, internal sales team; also
from people are working for customer, counterpart who have the information,
knowledge about the project.
Secondary data: Business Monitor Magazine is the main source of macro-
economic, political, country outlook.
General Department of Vietnam Customs, Ministry of Finance and Vietnam
Government portal provide sources about legal documents, circulars, decrees,
decisions.

Other information is based on realistic of company report, competitor report.

1.5 Significance of this study
In overall, this study is aimed to:
 Describe the new electronic data interchange (EDI) technology to transfer to
Vietnamese electronic business solution.
 Possibility to provide more effective service to customers.
9

 Possibility to give a chance to improve company market share and
competitive advance by having new standard E-Customs system.
 Provide the figure to make a decision whether to invest in the system in
freight forwarder.

1.6 The project structure:
The project has four chapters, chapter one introduces why the project
becomes an objective to be researched, where supporting data come from,
and scope of the study. The overview about freight forwarder and the project
are illustrated in chapter two. Chapter three brings the detail about technical,
market, and financial analysis. Finally, chapter four contains the conclusion and
recommendations for the project.

10

CHAPTER TWO: INTRODUCTION TO COMPANY AND THE PROJECT

The freight forwarder is operating in Vietnam under the status of foreign
trade, customs, which is mentioned in chapter one. And based on this status, the
project is proposed applying at the freight forwarder to support its daily business.
The overview about the freight forwarder and the project are introduced in chapter
two.

2.1 Overview of company
The freight forwarder in this study is a global famous freight forwarder,
holding top position among foreign forwarders in Vietnam (top of airfreight market
share); since 2007, with the 10 million USD investment within 5 years for the
expansion of facilities, employee training, upgrading of information systems and
the introduction of an enhanced range of services for businesses in Vietnam. It
provides all main service such as:
 International and domestic cargo freight forwarding services by road, rail,
waterways, oceans, air and multimode transport contracts.

 Freight transportation (marine and airline) agency services.
 Logistics services (labeling and packaging services, other supporting and
auxiliary transportation services).
 Storage and warehouse services.
 Customs clearance services.
 Container station and depot services.
 Domestic cargo transport services by road, railway, sea, inland waterway
and airlines (using services of licensed cargo transport providers, no direct
involvement in cargo transport).
The corporation now a day is the result of several times of merger and
integration from mailing, forwarding companies; global forwarding is one sector
among four main business sectors of the corporation (Internal report 2009).


11

Figure 2-1: Corporate structure







Because the main service between freight forwarder and authorized
economic operator is air freight, the customs clearance service is just the
additional service. Although being not mentioned in this study; however, air freight
is main service so the SWOT of air freight impacts on business between freight
forwarder and authorized economic operator, and also impacts on customs
clearance service. SWOT of the company on air freight segment is stated as

below:
Strengths:
 Holding the number one position of air freight in Vietnam.
 Getting best service from many strong airlines.
 Having experience about special goods shipment.
Weaknesses:
 Depending third party trucking company.
 Lacking of man power.
Opportunities:
 Logistics segment is developing.
 High tech corporations are investing in Vietnam.
 Vietnam government plans to open new airport and expand current
international airports
Threats:
 Fuel prices are not stable.
 Inflation rate is high.
 Exchange rates are not stable.


SUPPLY
CHAIN


EXPRESS


MAIL
GLOBAL
FORWADING

12

 More competitors arrive
 Vietnam remains one of the world‟s most corrupt countries. Its score in
Transparency International‟s 2010 Corruption Perceptions Index was 2.7,
placing it in 22
nd
place in the Asia Pacific region.

2.2 Overview of project
To become the key supplier of transportation for the authorized economic
operator with the three year contract, freight forwarder has to provide a
transportation service parallel with providing the customs clearance service under
new procedure, E-Customs for authorized economic operator. Not only to be the
advantage to get a contract as key supplier, but also the E-Customs system is the
advantage condition for contract renewal after three years and helps freight
supplier wins another new business.
Therefore, to develop the E-Customs for authorized economic operator is
the key factor to keep a good deal with pilot authorized economic operator, and
win business with other authorized economic operators in future.
Here below is a table of comparison of manual customs clearance and E-
customs clearance, it show how the advantage the E-customs brings to freight
forwarders in general, and particularly E-customs for authorized economic
operator.

Table 2-1: Customs declaration method comparison

Normal customs declaration
E-Customs

declaration
E-customs for
authorized
economic
operator (B2B
solution)
Process
Within business day (8 hours),
or next business day if
submitting the declaration in
the afternoon
Immediately

Immediately

13

Reject due to
wrong data
depend on numbers of
broker/company waiting to get
result, sometimes, have to wait
few hours to get the result
Immediately
Immediately
Acceptance ID
depend on numbers of
broker/company waiting to get
result, sometimes, have to wait
few hours to get the result

Immediately
Immediately
Reject due to
wrong
information or
missing
relevant
document
depend on numbers of
broker/company waiting to get
result, sometimes, have to wait
few hours to get result
Within 30
minutes
Within 15
minutes
CDS ID
depend on numbers of
broker/company waiting to get
result, sometimes, have to wait
few hours to get the result
Within 30
minutes
Within 15
minutes
Lane
Depend on numbers of
broker/company waiting to get
result, sometimes, have to wait
few hours to get the result.

Three lanes: green lane,
yellow lane, red lane
Within 30
minutes
Three lanes:
green lane,
yellow lane,
red lane
Within 15
minutes
Two lanes:
green lane, red
lane, but
normally is
green lane
Archiving
document
Freight supplier has to keep in
five years with the huge
amount of paper, take a lot of
space for storage room.
All data,
transaction is
on server.
Archiving is
put on
tape/DVD
All data,
transaction is on
server.

Archiving is put
on tape/DVD
14


The project is implemented within six months with key steps: internal
development and testing, systems end to end testing, user acceptance test (UAT),
pre-deployment, Go Live

Figure 2-2: Project timeline
ww 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
User Acceptance Test (UAT)
Pre-deployment
Go Live and Stabilization
internal developing, testing
system end to end testing