Burlington Northern: The ARES Decision (A) Harvard Case Solution & Analysis

Burlington Northern decision about whether to invest in ARES, an automated train control system is ($ 350 million), strategic investments in information technology. Although the installation in the service sector (railway) issues associated with this decision arise in many organizations and require the company to review the project in many ways. ARES has the potential to change the basis of competition in the industry through technology. The company should consider the value, if any, to be the first in the industry to adopt technologies, the potential impact on customer service, quality and reliability, as well as the role and importance of information technology systems. Burlington grips with how to quantify both tangible and intangible benefits, and confers the investment, which give improved difficult to quantify factors such as a reduction in delivery time and improve reliability of service may be subject to the same financial controls as equipment replacement decisions such as new locomotives. Demonstrates thoughtful, creative approach to the measurement of benefits is difficult to quantify. "Hide
by Julie H. Hertenstein, Robert S. Kaplan Source: Harvard Business School 26 pages. Publication Date: February 21, 1991. Prod. #: +191122- PDF-ENG

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