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Essay R.L.Polk Case Study

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Introduction:

What is the business rationale for making the technology investment? This is one of the most important questions to ask. Almost all companies depend on some technology solution to deliver goods and services. Investing in new technologies for the sake of having the latest up-to-date systems, just does not seem to cut it in the minds of most industry executives, nor does trying to rationalize a major technology investment solely on the basis of reducing ongoing maintenance costs of the old systems. Information technology usually does not have a direct impact on the bottom line. “IT is applied to business processes, and it is those business processes that increase revenue or reduce expenses” [Berman,Knight]. This implies …show more content…

After evaluating different technologies R.L. Polk decided to implement grid computing, service oriented architecture and Oracle database due to the new capabilities it offered.

“A garbage can model of IT value portrays the factors most organizations confront when making investment in technology” [Henry C. Lucas Jr]. According to Henry C. Lucas’ Garbage Can model the value of a project depends on the level with which the variable affecting a project such as management buy-in, technology, cost, and IT staff converge to produce a useful output. The level of this convergence determines the value derived from the project. If an application is ideal for an organization and is configured and implemented correctly but is not embraced by the users it will not produce the anticipated value. In cases where technology becomes intertwined with the strategy of the organization, as was the case in the R.L Polk case study, it becomes even harder to determine the true value of the solution. In these scenarios the direct benefits might be easier to calculate, but assigning the value of the indirect benefits to the technology becomes difficult. For this reason, I agree with the approach adopted by Vasconi in this article. Creating a separate company for developing the new solution not only increases the probability of success, but it also makes it easier to measure the direct and indirect benefits created by the solution. Vasconi effectively used the garbage can

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