In this case, the assistantdeputy manager of air travel security, Kim Dickie, and her team chose Quantum Secure's SAFE software suite as the new Terminal 2 credentialing system, howevershe required creating a business case fast that would convince senior management to give the green light to finance the purchase. This case focuses on a scenario that happens often in real life, in which a decision offers some actual but qualitative worth in ways that are difficult or impossible to quantify.
The discussion and investigation gives students the chance to to consider the variables which will drive the internal rate of return (IRR), net present value (NPV), and discounted payback period computations without building comprehensive spreadsheet models. Assessing the case suggests the limits of such approaches in instances where sensed value is hard to quantify. The case prepares the students to evaluate and justify the purchasing decisionswheninteractingwith the financial gatekeepers such asCFOs and CEOs by introducing a framework to examine the quantifiable gains of a capital expenditure while keeping in mind the important intangible benefits.
PUBLICATION DATE: July 12, 2016 PRODUCT #: KEL954-PDF-SPA
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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