Chapter 13-Minicase 1 (page 598) – Intranets: Invest First, Analyze Later?
- Where and under what circumstances is the “invest first, analyze later” approach appropriate? Where and when is it inappropriate? Give specific examples of technologies and other circumstances.
- How long do you think the “invest first, analyze later” approach will be appropriate for intranet projects? When (and why) will the emphasis shift to traditional project justification approaches? (Or has the shift already occurred?)
- What are the risks of going into projects that have not received a thorough financial analysis? How can organizations reduce these risks?
- Based on the numbers provided for Candence Design System’s intranet project, use a spreadsheet to calculate the net present value of the project. Assume a five-year life for the system.
- Do you see any relationship between the “invest first, analyze later” approach to financial analysis and the use of behavior-oriented charge back systems?
- Relate the Needham case to knowledge base (Chapter 10).