MDCMs Business Objectives:

1. Consolidate investments and operations wherever possible and

rationalize redundant investments/operations
2. Achieve scale efficiencies (economy of scope and economy of scale)
3.
4.
5.
6.

across different functions (logistics, transportation etc.)

Migrate towards a single global company
Focus on core competencies and outsource non-strategic services
Improve customer relationships (end-consumer as well as vendor)
Increased Revenue generation

Defining IT Objectives in alignment with business objectives <Elaborate (12 lines ) Bose>
1. Integration of accounting system across geographies
2. Optimize information flow between different departments and across
geographies to eliminate lags in information flow
3. Forecasting Systems should be made more accurate and efficient
4. IT systems for logistics and transportation must be introduced
5. Redefine Enterprise Information Architecture to ensure a single view
of all entities for better asset lifecycle management
6. Infrastructure must be standardized to reduce maintenance and
training costs
7. Implement robust networking infrastructure to ensure timely flow of
communication between departments
8. Leverage IT to deliver quality customized products tailored to the
needs of the customer
9. Further relationships with vendors as well as customers to achieve
Sales and Market Excellence
Taking into consideration all the above, it requires deciding on the optimum
portfolio mix of projects which balances between:

Running the Business: Business As Usual to sustain operations

Efficiency: Improving productivity relative to cost
Growth: Revenue generation through improved customer satisfaction

and customer intimacy

Innovation: Looking out for new avenues for business models to
achieve competitive difference

Classification of Proposed IT Projects

The following IT projects are proposed with regards to MDCMs business

objectives:
1. Unify Methodology & Technical Standards

2. Consolidate

Data Centers
3. Outsource Non-Strategic IT Services

4. Standardize

Server H/w & Platform

5. Implement ERP

6. Create Employee Intranet

Portal
7. Manage Supply Chain

8. Streamline Design

Systems
9. Improve Collaboration Systems

10. Begin CRM/Create

data-warehouse
11. Implement e-procurement system

13. Customer self-

service portal
These are classified according to the following diagram

Based on the above projects the following decisions need to be undertaken:

1. Establishing the portfolio mix
2. Identifying dependencies and/or synergies between projects

3. Determining budget
4. Evaluating and selecting the projects relative to
benefits/costs/budgets etc.
5. Establishing metric for measuring investment performance
6. Manage and maintain across investment lifecycle
Evaluation of the project according to the Information Economics
Framework entails balancing Business Value and Likelihood Of Success
for each project according to the following criteria:

The result of applying this framework to all 12 projects is as shown below:

Portfolio Model
100
90

Likelihood Of Success
0

10

20

30

80
77.65
70 65.7
66.35 60
63.6 64.25
62 60
58
49.5
53
50
40
50
60
70
80
40
44
30
20

18.25

10
0
Business Value

90

100

Inferences from the above model <Please write the choice of projects and
their inferences acc. To the above framework- Bose>

Scheduling Projects across 36 months <Ankit>

Assumptions (Sabya)
Data Analysis (Aniket)
Recommendations (Bose)