Essay about R.L.Polk Case Study

1391 Words Nov 26th, 2009 6 Pages

What is the business rationale for making the technology investment? This is one of the most important questions to ask. Almost all companies depend on some technology solution to deliver goods and services. Investing in new technologies for the sake of having the latest up-to-date systems, just does not seem to cut it in the minds of most industry executives, nor does trying to rationalize a major technology investment solely on the basis of reducing ongoing maintenance costs of the old systems. Information technology usually does not have a direct impact on the bottom line. “IT is applied to business processes, and it is those business processes that increase revenue or reduce expenses” [Berman,Knight]. This implies
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Having a separate company allowed him to effectively manage other factors active in a garbage can model such as staff, budget constraints, and external resources such as consultants and physical space.

The cost and benefit analysis was done on the basis of three high level objectives, referred to in shorthand as "50/50/100": The new system needed to be 50% more efficient (in other words, cost half as much to operate); deliver data 50% more quickly; and aim for 100% data accuracy. Setting these goals made it easier to determine the success of the project as well as to calculate the tangible benefits achieved by this project. It also helped in estimating the cost and timeframe for the project. In the article Vasconi convinced the management by stressing on the business return on investment and focusing on what it will mean for the bottom line. He does not, however, make a case for indirect benefits that might come from this solution such as greater market share, customer loyalty, and the potential for new products and markets. I am quite sure the company was aware of these indirect benefits but most of the time they are not used in ROI calculation because estimating the value for indirect benefits is much harder then calculating value for direct and tangible benefits. Based on Henry. C. Lucas opportunity matrix the Re-Fuel project falls in the strategic as well as no other way categories.

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