Spreadsheet supplement for case KEL174.

Should B&K Distributors implement a Web-based customer portal with an integrated marketing campaign? Asks readers to assist Jim Anfield, business development director for JDA Consulting, and Nancy O'Neil, B&K Distributor's sales VP, in determining the feasibility of this project. They must build the final ROI projections and develop recommendations for B&K's senior management team. Emphasizes the importance of assumptions and the range of possible outcomes. Based on a real-life management decision for a mid-size firm.

This case focuses on the challenge of quantifying the return on investment (ROI) of a large technology project, enterprise resource planning (ERP), in the nonprofit environment of the San Diego City Schools. The school district does not generate a profit, so traditional revenue enhancement arguments do not work. Instead, the case discusses the internal processes re-design and system consolidation enabled by the new ERP system. The system ROI is composed of two major components: cost savings from removal of legacy applications and productivity improvements. The cost containment benefits are relatively straightforward to quantify, but do not justify the system. The productivity improvements are harder to quantify, and many can be categorized as soft benefits. Furthermore, many of the productivity and cost-saving benefits will not be realized without personnel reductions, which are especially difficult in school districts and government agencies. The case debrief therefore discusses the tradeoffs quantifying soft benefits and productivity improvements, best practices for management decision making, and the organizational change necessary to realize the ROI.