Technology projects risky, research shows that large IT projects successfully, as originally planned, only 28 percent of the time. Construction of flexibility or real options, the project can help to cope with this risk. In addition, the flexibility of management options is irrelevant, since the risk of falling is reduced and growing up. The case is based on real options analysis, enterprise data warehouse (EDW) and analytical customer relationship management (CRM) software for a large U.S. company. The firm has been disguised as a global airline for confidentiality reasons. Consolidation of data marts or slightly EDW a blockage rate for firms analyzed using traditional net present value (NPV) analysis. However, various tactical deployment strategies can help reduce the risk of construction project options in the draft, and the traditional NPV will be expanded to the real value of an option. Students analyze various deployment strategies using the binomial model compounds macro options Excel, and calculate the volatility of a Monte Carlo analysis in Excel. Step-by-step tutorial is provided to teach students how to perform real options analysis simplified project, and this tutorial is easily generalized to the scenario of students. In addition to the tactical options, it also has a strategic choice of the growth of analytic CRM. Therefore, students need to analyze both the tactical and strategic growth opportunities and to make recommendation to management on project financing, as well as recommend the best strategy for the risk management of the project. "Hide
by Mark Jeffrey, Chris Rzymski 9 pages. Publication Date: January 1, 2006. Prod. #: KEL313-PDF-ENG
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