Develop two to four paragraphs that summarize your insight into this particular case study, and what conclusions you can draw from it -- parallels, textbook insights, personal insights, etc.Ideas for Further Concern - Ask three to six questions about the case that should be addressed to develop a better understanding of this situation. You only have to formulate the questions, not answer them.
"Why should Middleton fund an IS project with "intangible" benefits?"
Issue:
There is a question lingering at Middleton, should they fund an IS project with "intangible benefits? Laudon and Laudon (2016), states Intangible benefits are things such as more efficient customer service or enhanced decision making, cannot be immediately quantified but may lead to quantifiable gains in the long run" (p. 553). Middleton Mutual is a large insurance company headquartered in Philadelphia. The chief information officer, Dennis Devereaux, and vice president of information systems planning, Max Vargo, are about to request $1 million to develop an expert system for Linda Peterson's property and casualty (P&C) underwriting department. The president Bill Hayes doesn't believe the IS project will not pay for itself and he demands that CIO, Mr. Devereaux provide concrete and proof of immediate financial benefits. He knows that the board committee wants the project to produce financial results and not what it could produce in the future.
Mr. Devereaux believes in this product and the rewards it will yield in the future for the company. The CIO has every intention on catapulting Middleton's IS past the other competition; he is trying to explain to the Mr. Hayes that there are phases for this project, but it will be a success. Mr. Hayes is willing to let Mr. Devereaux present the proposal, but he must provide accurate numbers that will support the efficiency of the expert systems and how they will make the company money. CFO Hal Atkins is against this project because he believes that it will be another project that will take the company's money and it not worth it. The president wants to take a chance, but is on the fence. He is asking all his people and getting their opinion on the new project. Hayes must decide for himself if the project is important because expert systems can have a tremendous impact on how the organization is positioned for the future. If the project gets taken off the table, then the company will be left behind and their future in competing with the other companies will be a complete failure.