In the year 2008 San Francisco International Airport (identified by its three-letter airport code, SFO) had declared a $383 million sketch to modernize and revive Terminal 2.
Assistant deputy manager of the air travel security Kim Dickie and her team had opted Quantum Secure's SAFE software suite as the new Terminal 2 credentialing system, but she wanted to come up with a small business case rapidly that will persuade senior management to give the green light to fund the procurement.
The case depicts a scenario that happens regularly in real life, in which a selection offers some actual but qualitative value in ways that are impossible or hard to quantify. The discussion and analysis gives students the chance to think about the variables which will drive the internal rate of return (IRR), net present value (NPV), and discounted payback period calculations without assembling complete spreadsheet models. Assessing the case suggests the limits of such approaches in cases where intellectual value is not easy to quantify. The case organizes students to evaluate and justify buying requests by introducing a framework to assess the quantifiable advantages of a capital expenditure while keeping in mind intangible advantages that are important when interacting with fiscal gatekeepers including CEOs and CFOs.
PUBLICATION DATE: March 22, 2013 PRODUCT #: KEL720-PDF-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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