We started the course with the WHR case study and the mandate to perform the capital budgeting analysis. We have reached the point, that we are ready to not only generate the NPV of this project, but be able to perform sensitivity/risk analysis, and make recommendations on how to monitor this process to ensure that it delivers its expected value. This is the first objective for week 12.
While our focus has been on the value of IT investments and how to ensure that we maximize the value from these investments, another topic that deserves attention is that of IT budgets and IT portfolio management. Investment like the one undertaken by WHR constitute a substantial request for financial and human resources. The second objective for this week will be to review corporate budgets (pros and cons), the IT budgeting process & factors affecting levels of IT budgets, and IT portfolio management
Topics and Readings for Week 12
Theory: Chapter 8 (monitoring IT investments) and chapter 9 (IT budgets and IT portfolio management).
Seminar: We will use the Whirlpool case study to review the NPV analysis and perform a risk analysis (sensitivity analysis). We will use the feedback from the analysis to develop an ERP implementation balanced scorecard for WHR.
Assignments for Week 12
The online quiz will be a based on chapters 8 & 9 and material covered in the seminars of week 11 and 12. The quiz will be available on Friday at 12:30 pm.