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Strategic Data Driven Marketing, Prof. Mark Jeffery

Biography

Kellogg School of Management
Adjunct Professor of Executive Education

Mark Jeffery is Adjunct Professor of Executive Education at the Kellogg School of Management. His research, teaching, and consulting focuses on enterprise performance management, unlocking business value from marketing and IT, and customer relationship management (CRM) strategy and execution. Mark has an active research program at Kellogg and has recently surveyed 252 Fortune 1000 firms on strategic marketing performance management, capturing $53 billion of marketing spend. He has also previously surveyed 179 Fortune 1000 firms and 44 Federal Government agencies on IT management best practices, capturing $70 billion of IT spend.

Mark directs multiple Kellogg executive programs including Managing Customer Relationships for Profit and Creating Strategic Value Through IT. He also teaches the Kellogg executive MBA course Strategic Data Driven Marketing, and in custom executive programs at organizations including Microsoft, DuPont, Sony, Nissan, and Phillips. In 2008 Mark launched the Kellogg Technology Network, an intense knowledge sharing forum for CIO/CTO and VP level executives.

He has more than 30 publications in scientific and technology journals, and three book chapters including the chapter on return on investment analysis in the forthcoming Wiley 2008 Handbook of Technology Management. Mark has also developed 22 original case studies distributed through Harvard Case Publishing. His most recent academic research publications are on the value of flexibility and using real options for enterprise technology project risk management.

Consulting clients include Microsoft, Intel, Waste Management, Teradata, Blue Cross Blue Shield Association, AAA Northern California, CCCIS, US. Department of Veterans Affairs, and the US.Navy e-Business Operations Office.

He holds a Ph.D. in theoretical physics from Drexel University (1991) and an MBA from the Kellogg School of Management (2001).

Areas of Expertise Information Systems
Information Technology
Portfolio Management
Technology
Technology Infrastructure

Education MBA, 2001, Northwestern University

PhD, 1991, Theoretical Physics, Drexel University

MS, 1989, Theoretical Physics, Drexel University

BS, 1988, Theoretical Physics, Drexel University

Education

Read about executive education

Cases

Gershbeyn, Alex, Mark Jeffery and Derek Yung. Forthcoming. "Case - A&D High Tech Case B: Managing Scope Change.".

Jeffery, Mark, Lisa Egli, Jessica Lambert, Liz Neely, Andy Gieraltowski, Jason Miller and Rakesh Sharma. 2009. Air France Internet Marketing: Optimizing Google, Yahoo!, MSN, and Kayak Sponsored Search. Case 5-407-753 (KEL319).

Rob Griffin, senior vice president and U.S. director of search for Media Contacts, a communications consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France. At the time of the case, SEM had become an advertising phenomenon, with North American advertisers spending $9.4 billion in the SEM channel, up 62% from 2005. Moving forward, Griffin wants to ensure that the team keeps its leading edge and delivers the results Air France requires for optimal Internet sales growth.

The case centers upon Air France’s and Media Contacts’ efforts to find the ideal SEM campaign to provide an optimal amount of ticket sales in response to advertising dollars spent. This optimal search marketing campaign is based on choosing effective allocation of ad dollars across the various search engines, as well as selecting appropriate keywords and bid strategies for placement on the search result page for Internet users.

In determining the optimal strategy, the case presents background information on the airline industry as well as the Internet search options available at the time, including Google, Microsoft MSN, Yahoo!, and Kayak. Additionally, background information is provided on SEM and its associated costs and means of measuring the successfulness of each marketing effort.

The case illustrates how one must first determine the key performance indicators for the project to guide analysis and enable comparison of various SEM campaigns. Cost per click and probability to produce a sale differ among publishers. Therefore, using a portfolio application model’s quadrant positions can be used to determine optimal publisher strategies. Additionally, pivot tables help illustrate campaigns and strategies that have historically been most successful in meeting Air France’s target Internet sales. Multiple recommendations on how Media Contacts can assist Air France in improving its SEM strategy can be derived from the data provided.

Spanish translation available.

Jeffery, Mark, Robert A Cooper and Debarshi Sengupta. 2007. Danaka Corporation: Growth Portfolio Management. Case 5-306-511 (KEL300).

A major barrier for growth of large multi-business unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. Danaka is a fictional company based on real business experiences. The company has strong growth markets as well as markets that are commoditizing. Unfortunately, the latter represent a sizeable portion of the company's business. A framework is given that establishes a matrix to analyze the Danaka businesses using their critical financial criteria—cash generation and top-line growth. Projects are divided into four categories based on how they fit into the matrix, and resource allocations are then analyzed. Students discover that the current allocation does not enable Danaka to meet its aggressive growth goals. The case incorporates an interactive spreadsheet model in which students can dynamically change the various resource allocations and see the impact on future top-line growth. The essence of the case is how to manage the resource allocation for a multi-business unit firm when present allocations will not meet future growth goals. The case is used in the Kellogg three day executive program Driving Organic Top-Line Growth and in the Kellogg MBA class TECH922 Managing Portfolios and Projects.

Jeffery, Mark and Saurabh Mishra. 2006. Sony-FIFA Partnership Marketing Program: The Value of Sponsorship. Case 5-206-250 (KEL195).

On April 6, 2005, Sony Corporation announced the signing of a global partnership program contract with the Fédération Internationale de Football Association (FIFA) and the organizer of the FIFA World Cup. The contract, which represented the first global marketing and communications platform for the Sony Group, would run from 2007 to 2014 with a contract value (excluding services and product leases) of ¥33.0 billion (approximately $305 million). This was a very significant marketing investment for Sony, since the cost of event sponsorship with advertising was typically two or three times the cost of the sponsorship rights: Hence, Sony was potentially investing a billion dollars or more on FIFA related marketing campaigns over the next several years. Many Sony senior executives were questioning the return on investment (ROI) of the FIFA sponsorship opportunity. The case tasks students with designing a creative marketing campaign to “Activate the FIFA sponsorship opportunity and maximize ROI beyond conventional sponsorship marketing.” This open ended challenge encourages students and executives to be creative, and is the same task that faced Sony executives. Beyond designing a new marketing campaign, a key objective of the case is to focus students on designing metrics for measurement into a campaign plan. As a first step, it is important to clearly articulate the campaign and business strategy, and key business objectives mapped to the strategy. Students create a balanced score card for the campaign they create. This score card should include both financial and non-financial metrics to quantify value.

Jeffery, Mark and Justin Williams. 2007. DuPont NASCAR Marketing. Case 5-107-014 (KEL166).

In 1992, Joe Jackson, former manager of DuPont Motorsports for twelve years, was angling to get the paint business at Rick Hendrick’s sixty-five automotive dealerships across the United States. In order to win the Hendrick car dealership paint contract, Jackson and Hendrick met to discuss the possibility of sponsoring Hendrick’s new team and rookie NASCAR driver—Jeff Gordon. As a result of that meeting, DuPont signed on to be the primary sponsor. By 2006 Gordon was a NASCAR superstar and the DuPont logo—viewed by millions—was a household brand. While this level of exposure was exciting for the company, executives at DuPont could not help but wonder if they were fully leveraging this tremendous marketing opportunity. Gordon was on fire—but was DuPont maximizing the heat? The DuPont-NASCAR case tasks students and executives with designing a creative marketing campaign to activate the NASCAR sponsorship opportunity and maximize value beyond conventional sponsorship marketing. This open-ended challenge encourages students and executives to think outside of the traditional marketing tactics typically employed by business-to-consumer (B2C) NASCAR sponsors. Additionally, the nature of DuPont creates the need to develop a multi-dimensional plan that caters to a breadth of brands. Beyond designing a new marketing campaign, a key objective of the case is to focus students and executives on designing metrics for measurement of the return on investment (ROI) into a campaign plan. As a first step, it is important to clearly articulate the campaign and business strategy, and key business objectives mapped to the strategy.

Jeffery, Mark, Derek Yung and Alex Gershbeyn. 2006. A&D High Tech (A): Managing Projects for Success. Case 5-404-761(A) (KEL156).

The case is based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. The A&D High Tech case examines how to create and analyze a project plan in Microsoft Project. Specifically, data is given to build the project plan step-by-step and then analyze the plan using the Microsoft project management tool. In order to make the case manageable for students we reduced the size of the project, and corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. The project plan that students construct from the data given in the case is fraught with risks, and students must apply risk management techniques to diagnose the plan. Ultimately, students must answer the management question: Will the project be completed for the holiday shopping season? This case is the first in a series; the second is the case entitled "A&D High Tech (B): Managing Scope Change." The case can also be taught using other project management software tools, such as Primavera.

Jeffery, Mark, Derek Yung and Alex Gershbeyn. 2006. A&D High Tech (B): Managing Scope Change. Case 5-404-761(B) (KEL158).

The case is based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. Part (B) takes place three months into the original project plan. The project manager has just been fired and the management challenge is to find out what is wrong with the project and recommend fixes. In addition, the scope of the project has changed: the VP of marketing has an additional promotional bundle requirement. A&D High Tech (A) examines how to create and analyze a project plan in Microsoft Project. In order to make the case manageable for students we reduced the size of the project, and corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. Part (B) gives actual work done on each task three months into the project. Students must answer the management questions: Can the project be fixed and completed in time for the holiday season? Can the additional requirements be incorporated, and if so, what is the best approach? In order to answer these questions, earned value data can be extracted from Microsoft Project and analyzed. These data provide important insights into the root cause of problems with the project. The next step is to reduce the scope of the project and reassign resources. However, one must be aware that indiscriminately adding people can slow a project down, not speed it up. Finally, the additional promotional bundle requirement from the VP of marketing provides an important outsourcing management discussion. The case can also be taught using other project management software tools, such as Primavera.

Jeffery, Mark, Derek Yung, Joseph Norton and Alex Gershbeyn. 2006. Ariba Implementation at MED-X: Managing Earned Value. Case 5-404-763 (KEL224).

The Ariba Implementation at MED-X case is designed to teach students how to analyze a program that is experiences problems and recommend solutions. Specifically, the case introduces students to Earned Value Analysis and program oversight for an e-procurement technology program. The case centers on MED-X’s need to quickly discover why the company’s e-procurement implementation project was not going according to plan. Once a cause has been discovered students will need to make a recommendation to fix the problem. Data for the simplified program, consisting of two concurrent projects, is given to students in the case, who should in turn analyze the project using Earned Value Analysis. The case is an easy introduction to program management and oversight for executives and MBA students, and teaches the essentials of earned value project management. This case and the associated teaching note are used as an introduction to project management in the Kellogg MBA course entitled Managing Technology Portfolios and Projects and in multiple Kellogg executive programs including Driving Strategic Results through IT Portfolio Management.

Jeffery, Mark. 2011. Meteor Solutions: Measuring the Value of Social Media Marketing. Case 5-110-008 (KEL548).

Lessons on how to measure and leverage social media marketing from studying the case of the Resident Evil 5 Kijuju Campaign, utilizing technology from Meteor Solutions to track word of mouth.

Jeffery, Mark, Robert J Sweeney and Robert J Davis. 2006. Teradata Data Mart Consolidation Return on Investment at GST. Case 5-404-774 (KEL196).

The case Teradata Data Mart Consolidation Return on Investment at GST is based on a real life consulting engagement with a major Fortune 100 telecommunications company. The name of the firm has been disguised for confidentiality reasons. Completing the case teaches students how to develop a cost containment ROI analysis and develop a business case for a large enterprise technology project. The class discussion focuses on strategies to understand and manage the risks of the project and organizational issues. In addition, the case teaches students good questions to ask when reviewing a complex project business case, and how to present a project for funding approval. This case is the second in a series of three cases designed to teach students ROI analysis for technology projects; the first is B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal and the third of the series is the case ROI for a Customer Relationship Management Initiative at GST. These cases were originally developed for the Kellogg MBA course entitled Managing Technology Portfolios and Projects, and are also used in the Kellogg CIO/CXO 3-day executive program Driving Strategic Results through IT Portfolio Management.

Jeffery, Mark, Robin Barnes and Chuck Olsen. 2006. ProSight: New Millennium Financial Technology Portfolio Management. Case 5-404-771 (KEL191).

Mergers and acquisitions (M&A) are often very complex management endeavors. The case analyzes the IT component of M&A for two financial institutions. Students are tasked with assisting Mike Farrell, the CIO of New Millennium Financial (NMF), a new company created through the merger of FinStar Financial and D&L Bank, in determining the optimal combined IT portfolio. To accomplish this task the strategic business objectives of the firm must be clearly understood and the IT projects in the pipeline of both institutions analyzed. Students must make an IT portfolio management decision and answer the question: What is the optimal IT strategy and project portfolio for New Millennium Financial (NMF)? Completion of this case gives students a framework for analyzing similar portfolio management decisions. The case is an action learning exercise with students using ProSight Portfolios, a leading Web-based portfolio tool, to analyze the portfolio and make the management decision. LEARNING OBJECTIVES: The key learning of this case is that a framework may be applied to organizing and managing a company’s IT portfolio. This framework includes understanding the strategic context of the company, developing business objectives that are aligned to the corporate strategy, developing the rationale for assessing (approving or rejecting) different IT investments, and developing an appropriate portfolio of IT projects that support the business objectives. In addition, the framework is an iterative process wherein IT investments are assessed and monitored on a regular basis based on their performance and risk/return trade-offs. Finally, this case also introduces the students to a leading Web-based tool called ProSight that assists managers in organizing their IT portfolio.

Jeffery, Mark, H Nevin Ekici, Cassidy Shield and Michael Conley. 2006. AMG Inc. & Forsythe Solutions: Lease vs. Buy Decisions. Case 5-404-762 (KEL217).

The AMG Inc and Forsythe Solutions case examines the lease versus buy decision for investments in technology. The case addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company’s overall financial strategy. The scenario is for a real financial services firm that has been disguised of confidentiality reasons. The case poses the student with an investment decision; should the company buy or lease technology with a relatively short useful life? The new controller at AMG Inc., a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next twelve months. This is a $6.7M investment decision and the roll out schedule adds significant complexity to the case solution. The controller must chose between buying or leasing the computers over 24- or 36-month time frames. Completion of the case gives students a framework for analyzing similar investment decisions. The key learning point of the case is that leasing information technology can be cheaper than buying. This is contradictory to a car lease that students may be familiar with in their everyday experience. A new car has a potentially long useful life and can retain significant value after several years. Hence, a student’s intuition is that buying should always be cheaper than leasing. The AMG case shows that this is not the case for information technology. Students also learn the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating versus capital leases and off-balance sheet financing. In the process, students will familiarize themselves with the four tests for a capital lease. Finally, the students will see how creative analysis techniques can be utilized to simplify complex decisions. These techniques will enable the student to arrive at a conclusion faster and with less effort.

Jeffery, Mark, Susan Deutsch and Paolo Cuomo. 2004. Technical Note: Lease vs. Buy Decisions for Technology . Case 7-404-753 (KEL263).

This technical note illustrates the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. This note is designed for instructors, and provides them with a background for an introductory lecture on information technology (IT) leasing. It can also function as a companion to the Kellogg cases “AMG, Inc. & Forsythe Solutions: Lease vs. Buy Decisions” and “Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing.”

Jeffery, Mark, Derek Yung and Joseph Norton. 2006. MDCM, Inc. (A): IT Strategy Synchronization. Case 5-404-770(A) (KEL170).

MDCM, Inc. (A): IT Strategy Synchronization examines the issues of formulating an IT strategy and a set of IT objectives aligned with corporate strategy. Specifically, the case describes a firm that has grown rapidly through global acquisitions. As a result of these acquisitions, the new conglomerate is not responsive to the competitive environment. The firm has therefore launched a new transformation strategy called Horizon 2000, but it has yet to develop a corresponding IT strategy. Students solve Case A by applying the management by business objective framework and develop an executive level IT strategy for the firm. This case is the first in a series where the second of the series is the case MDCM, Inc. (B): Strategic IT Portfolio Management. These cases were originally developed for the Kellogg CIO/CXO 3-day executive program Driving Strategic Results through IT Portfolio Management, and are used in the Kellogg MBA course entitled Managing Technology Portfolios and Projects.

Jeffery, Mark, H Nevin Ekici, Cassidy Shield and Michael Conley. 2006. Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing. Case 5-404-773 (KEL259).

The case centers on Shilling & Smith’s acquisition of Xteria, Inc. and the resulting need to quickly scale their IT infrastructure to accommodate the acquisition. The case is based upon a real leasing problem faced by a major retail firm in the Chicago area, as they purchased a small credit card processing firm and scaled the operations to handle the retail firm’s credit card transactions. In the actual case the new leasing contract was in excess of $50 million; in order to make the numbers manageable for students the scale of the leasing deal has been reduced to approximately $7 million. The Shilling & Smith case examines how to evaluate different lease options when acquiring data center information technology infrastructure. Specifically, the case addresses software versus hardware leasing, different lease terms, and how to choose between different lease structures depending on the strategy and needs of the company. This case enables students to understand the different types of technology leases and what situations these leases would be employed. Three different lease scenarios are given explicitly in the case: 1. Lease everything over a 36-month term. 2. Lease the hardware only over either a 24-month or 36-month term and purchase the software and professional services. 3. Lease the high-end upgradeable servers (HP Keystone servers) for 36 months, lease the data storage and web servers (EMC and HP Netservers) for 24 months, and purchase the Cisco network equipment, all the software and the professional services. The case also alludes to a fourth scenario, which is the option of a step-up lease whereby the lease payments are delayed six months to match the cash flows of the company. The CIO of Shilling & Smith needs to determine which lease option is the best means of providing the technical infrastructure needed to support Shilling & Smith after the acquisition of Xteria. Several issues drive this decision, including the value and useful life of the equipment, as well as the strategic context of the firm.

Jeffery, Mark, Ichiro Aoyagi and Ed Kallett. 2006. Marketing @ Microsoft: The Value of Customer Perception. Case 5-106-004 (KEL189).

The case centers upon the Microsoft Security Guidance marketing campaign, a Microsoft marketing campaign designed to change perception of IT professionals toward the security of Microsoft’s software products. The integrated marketing campaign involved print media, analyst relations, and online advertising. The advertising was designed to drive IT professionals to a Web site on security guidance. The goal of the campaign was to sign up IT professionals for free in-person security training classes, since these trainings had been shown to have the highest impact on changing perception. The case illustrates two important best practices for marketing in the Internet age: First, the campaign was designed to be measured, and second, agility was specifically designed into the campaign. That is, click-through data from the print and online advertising was monitored daily, and rolled up weekly. In addition to tracking weekly click-through data, the campaign also utilized online pop-up customer perception surveys. These surveys enabled monthly tracking of customer perception towards Microsoft security. The click-though data are given in the case, similar to the actually data analyzed by Microsoft marketing executives. Analyzing these data, Microsoft realized that at the end of the first week of the campaign they had a problem—the numbers of signups for the training sessions were much less than anticipated. Further analysis revealed the source of the problem. By the end of the second week the campaign was changed, resulting in an order of magnitude improvement in efficacy. As a case assignment, students can create a score card illustrating the pros and cons of the Microsoft approach compared to a more traditional campaign.

Jeffery, Mark, Tim Riitters and James Anfield. 2006. B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal. Case 5-404-764 (KEL149).

The purpose of the case is to teach ROI analysis best practices for technology project investments. As part of the case questions, students must decide if B&K Distributors should implement a Web-based customer portal with an integrated marketing campaign, and are assigned 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. Completion of this case will give the students a framework for analyzing similar investment decisions. This case is designed to be a self-contained introduction to ROI analysis and is based on a real life management decision for a mid-sized firm. The technology involved in the project—the implementation of a Web-based customer portal—was selected specifically since students find it easy to understand. In addition, ROI spreadsheet templates are provided so that the basic analysis follows a simple format. However, significant learnings are built into the case. The key learning of this case is that ROI analysis for technology and marketing projects is not a straight forward activity—several factors need to be analyzed in order to conduct a thorough review of the feasibility of the investment. For example, financial elements such as payback period, sensitivity analysis, and outcome ranges are essential to the decision-making process. The case discussion emphasizes the importance of assumptions and the range of possible outcomes.

Jeffery, Mark, Derek Yung, Joseph Norton and Alex Gershbeyn. 2006. Clothes ‘R’ Us Point-of-Sale Initiative: Managing IT Programs. Case 5-404-765 (KEL304).

The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom built in-store Customer Relationship Management (CRM) system and a new point-of-sale system in 400 stores of a national retail chain. The name of the company has been disguised for confidentiality reasons. Once deployed the system should give Clothes-R-Us a significant strategic advantage over competitors in the marketplace; with the new system, in-store manager productivity should increase, the system will cut costs, and ultimately drive increased sales for the retail chain. The program is in crisis, however, since the product managers have just left to join a competitor. The explicit details of the program are given, including examples of best practice program governance and the real activity network diagram for the program. Detailed Excel spreadsheets are also provided with the actual earned value data for the program. Students analyze the spreadsheets and the data given in the case to diagnose the impact of the most recent risk event, and past risk events that occurred in the program. Ultimately, students must answer the essential executive questions: What is wrong with the program? How should it be fixed and what is the impact in time and money to the program? In addition, qualitative warning signs are given throughout the case—these warning signs are red flags to executives for early proactive intervention in troubled projects.

Walker, RussellMark Jeffery, Linus So, Sripad Sriram, Jon Nathanson, Joao Ferreira and Julia Feldmeier. 2010. Netflix Leading with Data: The Emergence of Data-Driven Video. Case 5-110-006 (KEL473).

By 2009 Netflix had all but trounced its traditional bricks-and-mortar competitors in the video rental industry. Since its founding in the late 1990s, the company had changed the face of the industry and threatened the existence of such entrenched giants as Blockbuster, in large part because of its easy-to-understand subscription model, policy of no late fees, and use of analytics to leverage customer data to provide a superior customer experience and grow its e-commerce media platform. Netflix’s investment in data collection, IT systems, and advanced analytics such as proprietary data mining techniques and algorithms for customer and product matching played a crucial role in both its strategy and success.

However, the explosive growth of the digital media market presents a serious challenge for Netflix’s business going forward. How will its analytics, customer data, and customer interaction models play a role in the future of the digital media space? Will it be able to stand up to competition from more seasoned players in the digital market, such as Amazon and Apple? What position must Netflix take in order to successfully compete in this digital arena?

Jeffery, Mark, Derek Yung and Joseph Norton. 2006. MDCM, Inc. (B): Strategic IT Portfolio Management. Case 5-404-770(B) (KEL172).

The MDCM, Inc. (B): Strategic IT Portfolio Management case examines the steps involved in developing a portfolio of IT projects aligned with a company’s strategic objectives. Specifically, the case describes a situation where a firm has launched a transformation strategy but has yet to develop a complementary IT strategy. Students must select the optimal portfolio of projects aligned with the strategic objectives and define the global project execution strategy. The projects have both risks and dependencies. U.S.-based MDCM, Inc. specializes in medical device contract manufacturing and assembly. For the past five years, MDCM had grown by making over twenty acquisitions of companies based outside of the United States. This growth strategy enabled MDCM to better match its services to its customers who have become larger and more global. In MDCM, Inc (A) the CIO of MDCM, needed to determine the company’s IT strategy and objectives. In doing so, he needed to ensure that they were properly aligned with the company’s overall strategy and the new organization developed under an initiative called Horizon 2000. In a lecture prior to the cases, students were introduced to the framework of IT portfolio management and how it can help in focusing IT efforts. In MDCM Inc (B) the CIO has performed an audit of the MDCM’s IT and found twelve projects that are potential investment candidates for the next three years. The challenge for the IT Portfolio Management team is to identify the priority and appropriate sequence of investments to be made. The case assumes that students have knowledge of corporate IT. More specifically, the case is targeted for those who are or plan to become executives who would manage IT strategy and IT investment decisions either directly or in an oversight role. This case is the second case in a series; the first of the series is the case MDCM, Inc. (A): IT Strategy Synchronization. These cases were originally developed for the Kellogg executive program Driving Strategic Results through IT Portf

Jeffery, Mark, Scott Buchanan and Robert A Cooper. 2006. DuPont Tyvek®: Commercializing a Disruptive Innovation. Case 5-306-510 (KEL194).

What happens when a company is faced with a unique market challenge with the potential to change the way business is done—a true market disruption? This was the challenge faced by the European business team of DuPont’s Tyvek Housewrap business. The adoption of the Kyoto protocol created new challenge on the construction industry in Great Britain that the DuPont team felt they could meet. To enforce the Kyoto Protocol, the UK government threatened to fine utility companies and builders who did not adhere to new emissions standards. This case deploys the Innovation Radar framework that encourages a business to think through all the issues of a business system leading to a successful introduction and a sustainable business. DuPont’s European Tyvek team had to devise a solution at the intersection of multiple elements. Specifically: who should they target? How would they describe the product’s value proposition? Through what channels could they reach the key decision makers? How could they overcome the inertia of the existing business system? LEARNING OBJECTIVE: The key learning of this case is that all the issues relevant to bringing an innovation to market must be recognized and dealt with in an integrated fashion when introducing major new business initiatives. The Innovation Radar is a useful framework that integrates key questions around WHAT the product is, to clearly define WHO key customers are, HOW the product affects their desired outcomes, and WHERE the product should be placed in market. The elements in the Radar comprise a complete business system of innovation.

Jeffery, Mark, Robert J Sweeney, Chris Rzymski and Sandeep Shah. 2006. The Value of Flexibility at Global Airlines: Real Options for EDW and CRM. Case 5-404-768 (KEL266).

Technology projects are inherently risky; research shows that large IT projects succeed as planned only 28 percent of the time. Building flexibility, or real options, into a project can help manage this risk. The management flexibility of options has value, as the downside risk is reduced and the upside is increased. The case is based on real options analysis for an enterprise data warehouse (EDW) and analytic CRM program at a major U.S. firm (disguised as Global Airlines).

The data mart consolidation or the EDW marginally meets the firm's hurdle rate as analyzed using a traditional net present value (NPV) analysis. However, different tactical deployment strategies help mitigate the risk of the project, by building options into the project, and the traditional NPV is expanded by the real option value. Students analyze the different deployment strategies using a binomial model compound option Excel macro, and calculate the volatility using Monte Carlo analysis in Excel. A tutorial is provided to teach students how to accomplish the real options analysis for a simplified project, and this tutorial is easily generalized by students to the case scenario.

In addition to the tactical options, the case has a strategic growth option of analytic CRM. Students must analyze both the tactical and strategic growth options and make a management project funding recommendation and also recommend an optimal deployment strategy to manage the project risk. The case teaches real options for technology projects. Students learn how to calculate real option values, where the key input of volatility is obtained by Monte Carlo analysis in Excel. Students also learn that the real option value is "real," resulting from active management mitigating project risk and improving the upside. Most important, students understand the difference between tactical vs. strategic growth options and make a management recommendation on funding the project and also recommend an optimal deployment strategy to manage the project risk.

Jeffery, Mark and James Anfield. 2009. Outsourcing at Office Supply Inc.. Case 5-107-013 (KEL308).

This case is designed to teach how to structure information technology (IT) infrastructure outsourcing deals from both the outsourcer and the client perspective. Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions is an opportunity to both reduce costs and complexity for the firm, but students first must consider whether outsourcing is a good strategic fit for OSI. Detailed spreadsheet templates are given that are based on a real outsourcing client engagement for a major infrastructure outsourcing company. The spreadsheets are complex but have been simplified so that they automatically calculate when populated, allowing the students to quickly move to answering the management challenge: how should TIS price and structure the outsourcing deal? Answering this question provides deep insights into the business case for IT outsourcing and how outsourcers financially engineer a deal structure to ensure a win-win outcome for both the client and outsource service provider.

Jeffery, Mark, Robert J Sweeney and Robert J Davis. 2006. ROI for a Customer Relationship Management Initiative at GST. Case 5-404-766 (KEL232).

In this Return on Investment (ROI) for Customer Relationship Management (CRM) case scenario students must calculate the ROI for analytic CRM enabled by an enterprise data warehouse (EDW). The case is based upon a real-life consulting engagement with a major Fortune 100 telecommunications company. In this case the executive management team’s strategic objective is to grow the customer base by 5 percent annually by customer acquisition. The internal rate of return (IRR) calculated from the data given in the case is over 800 percent for one year, and sensitivity analysis shows this is a robust projection suggesting it should be funded without question. However, the strategy of the firm is customer acquisition in an environment of high customer churn. As a result of these dynamics, the revenues and net income of the firm are actually decreasing by hundreds of millions of dollars each year. A better solution would realize that the executive team has the incorrect strategic objective. Customer acquisition is the wrong approach in an environment of high customer churn and executives should focus on customer retention and cross-sell and up-sell to high value customers. The case discussion therefore takes students beyond CRM ROI to focuses on the key strategic concepts of customer relationship management.

Jeffery, Mark, Daniel Fisher, Mirron Granot, Anuj Kadyan, Albert Pho and Carlos Vasquez. 2010. Strategic IT Transformation at Accenture. Case 5-110-002 (KEL471).

In 2001 Accenture took the bold step of separating from its parent, Arthur Andersen. The new firm that emerged had a bright future ahead, but it also faced the challenge of building a new IT infrastructure that could support a global organization that consults on leading-edge technology. Accenture’s CIO at the time, Ed Schreck, knew that becoming a master of your own trade was not an easy task. Frank Modruson, Schreck’s successor and the person responsible for carrying forward the IT transformation challenge from 2002 on, had ambitious plans for the new technology infrastructure that was to replace Arthur Andersen’s legacy systems. Difficult decisions had to be made. Should the firm continue with a decentralized approach to managing technology platforms, in which each country chooses its own IT platforms and has autonomy to run them? Or should the firm take a mixed approach, in which the same standard applications would run throughout the enterprise but would be managed independently by individual offices? Or should Accenture espouse a “one-firm” approach and boldly shoot for a centralized implementation of its most critical systems, with all its offices interconnected on the same “instance” of a software platform? Furthermore, should the firm retain its traditional conception of IT as cost center, or should it migrate to a scheme that recognizes IT as a service provision center that generates measurable value for the organization? These questions and many others drove Accenture’s CIO team to undertake one of the most remarkable IT transformations in a global organization in recent years.

Jeffery, Mark, Lisa Jackson, Derek Yung, David Bibbs, Michael Dowhan, Daniel Grace, Woody Maynard and Steven Johnson. 2006. Supply Chain Outsourcing at DB Toys. Case 5-404-767 (KEL256).

The case is based upon a real supply chain outsourcing management decision at a major manufacturing company. The company has been disguised for confidentiality reasons. The case discusses different types of outsourcing, supply chain management, the benefits and risks of outsourcing, and various pricing models for outsourcing contracts. Students must make a management decision and answer the following questions:
- Is supply chain outsourcing a viable option for DB Toys? - What will be the return on investment? - What is the best outsourcing model? - What is the best pricing model?

Cooper, Robert A and Mark Jeffery. 2008. Danaka Corporation: Healthcare Solutions Portfolio Management. Case 5-108-006 (KEL363).

A major barrier for growth of large multi-business-unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. The Healthcare Solutions business unit of Danaka is a fictional business based on real business experiences. The principle challenge is the need for this business to free up $300 million of current, budgeted R&D projects to fund new, unfunded initiatives to meet its five-year growth objectives. Tools and processes are introduced via interactive spreadsheets that show how to make the tough portfolio decisions on a project-by-project basis.

When business leaders set financial goals, they must understand how they are expending their resources. More often than not, significant changes must occur that could be wrenching to the organization. The key learning objectives of the case are: (1) realizing the importance of doing the portfolio analysis, (2) discussing the processes and issues involved in making the changes, and (3) understanding how to put the decision process in place.

Jeffery, Mark, Nancy Kulick, Tim Riitters, Scott Abbott, Douglas Papp, Tiffany Schad, Jed Wallace and Jeff Weimann. 2006. San Diego City Schools: Enterprise Resource Planning Return on Investment. Case 5-404-772 (KEL174).

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 straight forward 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.

Gershbeyn, Alex, Mark Jeffery and Derek Yung. Forthcoming. "Case - A&D High Tech Case B: Managing Scope Change.".

Jeffery, Mark, Lisa Egli, Jessica Lambert, Liz Neely, Andy Gieraltowski, Jason Miller and Rakesh Sharma. 2009. Air France Internet Marketing: Optimizing Google, Yahoo!, MSN, and Kayak Sponsored Search. Case 5-407-753 (KEL319).

Rob Griffin, senior vice president and U.S. director of search for Media Contacts, a communications consulting firm, is faced with the task of optimizing search engine marketing (SEM) for Air France. At the time of the case, SEM had become an advertising phenomenon, with North American advertisers spending $9.4 billion in the SEM channel, up 62% from 2005. Moving forward, Griffin wants to ensure that the team keeps its leading edge and delivers the results Air France requires for optimal Internet sales growth.

The case centers upon Air France’s and Media Contacts’ efforts to find the ideal SEM campaign to provide an optimal amount of ticket sales in response to advertising dollars spent. This optimal search marketing campaign is based on choosing effective allocation of ad dollars across the various search engines, as well as selecting appropriate keywords and bid strategies for placement on the search result page for Internet users.

In determining the optimal strategy, the case presents background information on the airline industry as well as the Internet search options available at the time, including Google, Microsoft MSN, Yahoo!, and Kayak. Additionally, background information is provided on SEM and its associated costs and means of measuring the successfulness of each marketing effort.

The case illustrates how one must first determine the key performance indicators for the project to guide analysis and enable comparison of various SEM campaigns. Cost per click and probability to produce a sale differ among publishers. Therefore, using a portfolio application model’s quadrant positions can be used to determine optimal publisher strategies. Additionally, pivot tables help illustrate campaigns and strategies that have historically been most successful in meeting Air France’s target Internet sales. Multiple recommendations on how Media Contacts can assist Air France in improving its SEM strategy can be derived from the data provided.

Spanish translation available.

Jeffery, Mark, Robert A Cooper and Debarshi Sengupta. 2007. Danaka Corporation: Growth Portfolio Management. Case 5-306-511 (KEL300).

A major barrier for growth of large multi-business unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. Danaka is a fictional company based on real business experiences. The company has strong growth markets as well as markets that are commoditizing. Unfortunately, the latter represent a sizeable portion of the company's business. A framework is given that establishes a matrix to analyze the Danaka businesses using their critical financial criteria—cash generation and top-line growth. Projects are divided into four categories based on how they fit into the matrix, and resource allocations are then analyzed. Students discover that the current allocation does not enable Danaka to meet its aggressive growth goals. The case incorporates an interactive spreadsheet model in which students can dynamically change the various resource allocations and see the impact on future top-line growth. The essence of the case is how to manage the resource allocation for a multi-business unit firm when present allocations will not meet future growth goals. The case is used in the Kellogg three day executive program Driving Organic Top-Line Growth and in the Kellogg MBA class TECH922 Managing Portfolios and Projects.

Jeffery, Mark and Saurabh Mishra. 2006. Sony-FIFA Partnership Marketing Program: The Value of Sponsorship. Case 5-206-250 (KEL195).

On April 6, 2005, Sony Corporation announced the signing of a global partnership program contract with the Fédération Internationale de Football Association (FIFA) and the organizer of the FIFA World Cup. The contract, which represented the first global marketing and communications platform for the Sony Group, would run from 2007 to 2014 with a contract value (excluding services and product leases) of ¥33.0 billion (approximately $305 million). This was a very significant marketing investment for Sony, since the cost of event sponsorship with advertising was typically two or three times the cost of the sponsorship rights: Hence, Sony was potentially investing a billion dollars or more on FIFA related marketing campaigns over the next several years. Many Sony senior executives were questioning the return on investment (ROI) of the FIFA sponsorship opportunity. The case tasks students with designing a creative marketing campaign to “Activate the FIFA sponsorship opportunity and maximize ROI beyond conventional sponsorship marketing.” This open ended challenge encourages students and executives to be creative, and is the same task that faced Sony executives. Beyond designing a new marketing campaign, a key objective of the case is to focus students on designing metrics for measurement into a campaign plan. As a first step, it is important to clearly articulate the campaign and business strategy, and key business objectives mapped to the strategy. Students create a balanced score card for the campaign they create. This score card should include both financial and non-financial metrics to quantify value.

Jeffery, Mark and Justin Williams. 2007. DuPont NASCAR Marketing. Case 5-107-014 (KEL166).

In 1992, Joe Jackson, former manager of DuPont Motorsports for twelve years, was angling to get the paint business at Rick Hendrick’s sixty-five automotive dealerships across the United States. In order to win the Hendrick car dealership paint contract, Jackson and Hendrick met to discuss the possibility of sponsoring Hendrick’s new team and rookie NASCAR driver—Jeff Gordon. As a result of that meeting, DuPont signed on to be the primary sponsor. By 2006 Gordon was a NASCAR superstar and the DuPont logo—viewed by millions—was a household brand. While this level of exposure was exciting for the company, executives at DuPont could not help but wonder if they were fully leveraging this tremendous marketing opportunity. Gordon was on fire—but was DuPont maximizing the heat? The DuPont-NASCAR case tasks students and executives with designing a creative marketing campaign to activate the NASCAR sponsorship opportunity and maximize value beyond conventional sponsorship marketing. This open-ended challenge encourages students and executives to think outside of the traditional marketing tactics typically employed by business-to-consumer (B2C) NASCAR sponsors. Additionally, the nature of DuPont creates the need to develop a multi-dimensional plan that caters to a breadth of brands. Beyond designing a new marketing campaign, a key objective of the case is to focus students and executives on designing metrics for measurement of the return on investment (ROI) into a campaign plan. As a first step, it is important to clearly articulate the campaign and business strategy, and key business objectives mapped to the strategy.

Jeffery, Mark, Derek Yung and Alex Gershbeyn. 2006. A&D High Tech (A): Managing Projects for Success. Case 5-404-761(A) (KEL156).

The case is based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. The A&D High Tech case examines how to create and analyze a project plan in Microsoft Project. Specifically, data is given to build the project plan step-by-step and then analyze the plan using the Microsoft project management tool. In order to make the case manageable for students we reduced the size of the project, and corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. The project plan that students construct from the data given in the case is fraught with risks, and students must apply risk management techniques to diagnose the plan. Ultimately, students must answer the management question: Will the project be completed for the holiday shopping season? This case is the first in a series; the second is the case entitled "A&D High Tech (B): Managing Scope Change." The case can also be taught using other project management software tools, such as Primavera.

Jeffery, Mark, Derek Yung and Alex Gershbeyn. 2006. A&D High Tech (B): Managing Scope Change. Case 5-404-761(B) (KEL158).

The case is based on a real $25 million project at a major U.S.-based computer manufacturer. For confidentiality reasons the company has been disguised as A&D High Tech. The Web-based online ordering system project is required by sales and marketing for the fall holiday season. If the project misses this window, the firm will lose substantial market share to competitors. Part (B) takes place three months into the original project plan. The project manager has just been fired and the management challenge is to find out what is wrong with the project and recommend fixes. In addition, the scope of the project has changed: the VP of marketing has an additional promotional bundle requirement. A&D High Tech (A) examines how to create and analyze a project plan in Microsoft Project. In order to make the case manageable for students we reduced the size of the project, and corresponding number of resources, to approximately $1 million, but retained all of the features of the original project. Part (B) gives actual work done on each task three months into the project. Students must answer the management questions: Can the project be fixed and completed in time for the holiday season? Can the additional requirements be incorporated, and if so, what is the best approach? In order to answer these questions, earned value data can be extracted from Microsoft Project and analyzed. These data provide important insights into the root cause of problems with the project. The next step is to reduce the scope of the project and reassign resources. However, one must be aware that indiscriminately adding people can slow a project down, not speed it up. Finally, the additional promotional bundle requirement from the VP of marketing provides an important outsourcing management discussion. The case can also be taught using other project management software tools, such as Primavera.

Jeffery, Mark, Derek Yung, Joseph Norton and Alex Gershbeyn. 2006. Ariba Implementation at MED-X: Managing Earned Value. Case 5-404-763 (KEL224).

The Ariba Implementation at MED-X case is designed to teach students how to analyze a program that is experiences problems and recommend solutions. Specifically, the case introduces students to Earned Value Analysis and program oversight for an e-procurement technology program. The case centers on MED-X’s need to quickly discover why the company’s e-procurement implementation project was not going according to plan. Once a cause has been discovered students will need to make a recommendation to fix the problem. Data for the simplified program, consisting of two concurrent projects, is given to students in the case, who should in turn analyze the project using Earned Value Analysis. The case is an easy introduction to program management and oversight for executives and MBA students, and teaches the essentials of earned value project management. This case and the associated teaching note are used as an introduction to project management in the Kellogg MBA course entitled Managing Technology Portfolios and Projects and in multiple Kellogg executive programs including Driving Strategic Results through IT Portfolio Management.

Jeffery, Mark. 2011. Meteor Solutions: Measuring the Value of Social Media Marketing. Case 5-110-008 (KEL548).

Lessons on how to measure and leverage social media marketing from studying the case of the Resident Evil 5 Kijuju Campaign, utilizing technology from Meteor Solutions to track word of mouth.

Jeffery, Mark, Robert J Sweeney and Robert J Davis. 2006. Teradata Data Mart Consolidation Return on Investment at GST. Case 5-404-774 (KEL196).

The case Teradata Data Mart Consolidation Return on Investment at GST is based on a real life consulting engagement with a major Fortune 100 telecommunications company. The name of the firm has been disguised for confidentiality reasons. Completing the case teaches students how to develop a cost containment ROI analysis and develop a business case for a large enterprise technology project. The class discussion focuses on strategies to understand and manage the risks of the project and organizational issues. In addition, the case teaches students good questions to ask when reviewing a complex project business case, and how to present a project for funding approval. This case is the second in a series of three cases designed to teach students ROI analysis for technology projects; the first is B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal and the third of the series is the case ROI for a Customer Relationship Management Initiative at GST. These cases were originally developed for the Kellogg MBA course entitled Managing Technology Portfolios and Projects, and are also used in the Kellogg CIO/CXO 3-day executive program Driving Strategic Results through IT Portfolio Management.

Jeffery, Mark, Robin Barnes and Chuck Olsen. 2006. ProSight: New Millennium Financial Technology Portfolio Management. Case 5-404-771 (KEL191).

Mergers and acquisitions (M&A) are often very complex management endeavors. The case analyzes the IT component of M&A for two financial institutions. Students are tasked with assisting Mike Farrell, the CIO of New Millennium Financial (NMF), a new company created through the merger of FinStar Financial and D&L Bank, in determining the optimal combined IT portfolio. To accomplish this task the strategic business objectives of the firm must be clearly understood and the IT projects in the pipeline of both institutions analyzed. Students must make an IT portfolio management decision and answer the question: What is the optimal IT strategy and project portfolio for New Millennium Financial (NMF)? Completion of this case gives students a framework for analyzing similar portfolio management decisions. The case is an action learning exercise with students using ProSight Portfolios, a leading Web-based portfolio tool, to analyze the portfolio and make the management decision. LEARNING OBJECTIVES: The key learning of this case is that a framework may be applied to organizing and managing a company’s IT portfolio. This framework includes understanding the strategic context of the company, developing business objectives that are aligned to the corporate strategy, developing the rationale for assessing (approving or rejecting) different IT investments, and developing an appropriate portfolio of IT projects that support the business objectives. In addition, the framework is an iterative process wherein IT investments are assessed and monitored on a regular basis based on their performance and risk/return trade-offs. Finally, this case also introduces the students to a leading Web-based tool called ProSight that assists managers in organizing their IT portfolio.

Jeffery, Mark, H Nevin Ekici, Cassidy Shield and Michael Conley. 2006. AMG Inc. & Forsythe Solutions: Lease vs. Buy Decisions. Case 5-404-762 (KEL217).

The AMG Inc and Forsythe Solutions case examines the lease versus buy decision for investments in technology. The case addresses pivotal investment decision issues such as varying the length of the lease, the useful life of the equipment, and alignment with the company’s overall financial strategy. The scenario is for a real financial services firm that has been disguised of confidentiality reasons. The case poses the student with an investment decision; should the company buy or lease technology with a relatively short useful life? The new controller at AMG Inc., a Fortune 500 financial services firm, has been tasked with determining how to finance the acquisition of 7,542 new PCs to be rolled out over the next twelve months. This is a $6.7M investment decision and the roll out schedule adds significant complexity to the case solution. The controller must chose between buying or leasing the computers over 24- or 36-month time frames. Completion of the case gives students a framework for analyzing similar investment decisions. The key learning point of the case is that leasing information technology can be cheaper than buying. This is contradictory to a car lease that students may be familiar with in their everyday experience. A new car has a potentially long useful life and can retain significant value after several years. Hence, a student’s intuition is that buying should always be cheaper than leasing. The AMG case shows that this is not the case for information technology. Students also learn the correct application of the mid-quarter convention within MACRS depreciation for technology, and the implications of operating versus capital leases and off-balance sheet financing. In the process, students will familiarize themselves with the four tests for a capital lease. Finally, the students will see how creative analysis techniques can be utilized to simplify complex decisions. These techniques will enable the student to arrive at a conclusion faster and with less effort.

Jeffery, Mark, Susan Deutsch and Paolo Cuomo. 2004. Technical Note: Lease vs. Buy Decisions for Technology . Case 7-404-753 (KEL263).

This technical note illustrates the fundamentals of lease vs. buy decisions in technology and how they differ from the typical capital equipment lease vs. buy decision. This note is designed for instructors, and provides them with a background for an introductory lecture on information technology (IT) leasing. It can also function as a companion to the Kellogg cases “AMG, Inc. & Forsythe Solutions: Lease vs. Buy Decisions” and “Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing.”

Jeffery, Mark, Derek Yung and Joseph Norton. 2006. MDCM, Inc. (A): IT Strategy Synchronization. Case 5-404-770(A) (KEL170).

MDCM, Inc. (A): IT Strategy Synchronization examines the issues of formulating an IT strategy and a set of IT objectives aligned with corporate strategy. Specifically, the case describes a firm that has grown rapidly through global acquisitions. As a result of these acquisitions, the new conglomerate is not responsive to the competitive environment. The firm has therefore launched a new transformation strategy called Horizon 2000, but it has yet to develop a corresponding IT strategy. Students solve Case A by applying the management by business objective framework and develop an executive level IT strategy for the firm. This case is the first in a series where the second of the series is the case MDCM, Inc. (B): Strategic IT Portfolio Management. These cases were originally developed for the Kellogg CIO/CXO 3-day executive program Driving Strategic Results through IT Portfolio Management, and are used in the Kellogg MBA course entitled Managing Technology Portfolios and Projects.

Jeffery, Mark, H Nevin Ekici, Cassidy Shield and Michael Conley. 2006. Shilling & Smith Acquisition of Xteria Inc.: Data Center Technology Leasing. Case 5-404-773 (KEL259).

The case centers on Shilling & Smith’s acquisition of Xteria, Inc. and the resulting need to quickly scale their IT infrastructure to accommodate the acquisition. The case is based upon a real leasing problem faced by a major retail firm in the Chicago area, as they purchased a small credit card processing firm and scaled the operations to handle the retail firm’s credit card transactions. In the actual case the new leasing contract was in excess of $50 million; in order to make the numbers manageable for students the scale of the leasing deal has been reduced to approximately $7 million. The Shilling & Smith case examines how to evaluate different lease options when acquiring data center information technology infrastructure. Specifically, the case addresses software versus hardware leasing, different lease terms, and how to choose between different lease structures depending on the strategy and needs of the company. This case enables students to understand the different types of technology leases and what situations these leases would be employed. Three different lease scenarios are given explicitly in the case: 1. Lease everything over a 36-month term. 2. Lease the hardware only over either a 24-month or 36-month term and purchase the software and professional services. 3. Lease the high-end upgradeable servers (HP Keystone servers) for 36 months, lease the data storage and web servers (EMC and HP Netservers) for 24 months, and purchase the Cisco network equipment, all the software and the professional services. The case also alludes to a fourth scenario, which is the option of a step-up lease whereby the lease payments are delayed six months to match the cash flows of the company. The CIO of Shilling & Smith needs to determine which lease option is the best means of providing the technical infrastructure needed to support Shilling & Smith after the acquisition of Xteria. Several issues drive this decision, including the value and useful life of the equipment, as well as the strategic context of the firm.

Jeffery, Mark, Ichiro Aoyagi and Ed Kallett. 2006. Marketing @ Microsoft: The Value of Customer Perception. Case 5-106-004 (KEL189).

The case centers upon the Microsoft Security Guidance marketing campaign, a Microsoft marketing campaign designed to change perception of IT professionals toward the security of Microsoft’s software products. The integrated marketing campaign involved print media, analyst relations, and online advertising. The advertising was designed to drive IT professionals to a Web site on security guidance. The goal of the campaign was to sign up IT professionals for free in-person security training classes, since these trainings had been shown to have the highest impact on changing perception. The case illustrates two important best practices for marketing in the Internet age: First, the campaign was designed to be measured, and second, agility was specifically designed into the campaign. That is, click-through data from the print and online advertising was monitored daily, and rolled up weekly. In addition to tracking weekly click-through data, the campaign also utilized online pop-up customer perception surveys. These surveys enabled monthly tracking of customer perception towards Microsoft security. The click-though data are given in the case, similar to the actually data analyzed by Microsoft marketing executives. Analyzing these data, Microsoft realized that at the end of the first week of the campaign they had a problem—the numbers of signups for the training sessions were much less than anticipated. Further analysis revealed the source of the problem. By the end of the second week the campaign was changed, resulting in an order of magnitude improvement in efficacy. As a case assignment, students can create a score card illustrating the pros and cons of the Microsoft approach compared to a more traditional campaign.

Jeffery, Mark, Tim Riitters and James Anfield. 2006. B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal. Case 5-404-764 (KEL149).

The purpose of the case is to teach ROI analysis best practices for technology project investments. As part of the case questions, students must decide if B&K Distributors should implement a Web-based customer portal with an integrated marketing campaign, and are assigned 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. Completion of this case will give the students a framework for analyzing similar investment decisions. This case is designed to be a self-contained introduction to ROI analysis and is based on a real life management decision for a mid-sized firm. The technology involved in the project—the implementation of a Web-based customer portal—was selected specifically since students find it easy to understand. In addition, ROI spreadsheet templates are provided so that the basic analysis follows a simple format. However, significant learnings are built into the case. The key learning of this case is that ROI analysis for technology and marketing projects is not a straight forward activity—several factors need to be analyzed in order to conduct a thorough review of the feasibility of the investment. For example, financial elements such as payback period, sensitivity analysis, and outcome ranges are essential to the decision-making process. The case discussion emphasizes the importance of assumptions and the range of possible outcomes.

Jeffery, Mark, Derek Yung, Joseph Norton and Alex Gershbeyn. 2006. Clothes ‘R’ Us Point-of-Sale Initiative: Managing IT Programs. Case 5-404-765 (KEL304).

The case concerns a real $25 million program consisting of nine concurrent projects to deliver and implement a custom built in-store Customer Relationship Management (CRM) system and a new point-of-sale system in 400 stores of a national retail chain. The name of the company has been disguised for confidentiality reasons. Once deployed the system should give Clothes-R-Us a significant strategic advantage over competitors in the marketplace; with the new system, in-store manager productivity should increase, the system will cut costs, and ultimately drive increased sales for the retail chain. The program is in crisis, however, since the product managers have just left to join a competitor. The explicit details of the program are given, including examples of best practice program governance and the real activity network diagram for the program. Detailed Excel spreadsheets are also provided with the actual earned value data for the program. Students analyze the spreadsheets and the data given in the case to diagnose the impact of the most recent risk event, and past risk events that occurred in the program. Ultimately, students must answer the essential executive questions: What is wrong with the program? How should it be fixed and what is the impact in time and money to the program? In addition, qualitative warning signs are given throughout the case—these warning signs are red flags to executives for early proactive intervention in troubled projects.

Walker, Russell, Mark Jeffery, Linus So, Sripad Sriram, Jon Nathanson, Joao Ferreira and Julia Feldmeier. 2010. Netflix Leading with Data: The Emergence of Data-Driven Video. Case 5-110-006 (KEL473).

By 2009 Netflix had all but trounced its traditional bricks-and-mortar competitors in the video rental industry. Since its founding in the late 1990s, the company had changed the face of the industry and threatened the existence of such entrenched giants as Blockbuster, in large part because of its easy-to-understand subscription model, policy of no late fees, and use of analytics to leverage customer data to provide a superior customer experience and grow its e-commerce media platform. Netflix’s investment in data collection, IT systems, and advanced analytics such as proprietary data mining techniques and algorithms for customer and product matching played a crucial role in both its strategy and success.

However, the explosive growth of the digital media market presents a serious challenge for Netflix’s business going forward. How will its analytics, customer data, and customer interaction models play a role in the future of the digital media space? Will it be able to stand up to competition from more seasoned players in the digital market, such as Amazon and Apple? What position must Netflix take in order to successfully compete in this digital arena?

Jeffery, Mark, Derek Yung and Joseph Norton. 2006. MDCM, Inc. (B): Strategic IT Portfolio Management. Case 5-404-770(B) (KEL172).

The MDCM, Inc. (B): Strategic IT Portfolio Management case examines the steps involved in developing a portfolio of IT projects aligned with a company’s strategic objectives. Specifically, the case describes a situation where a firm has launched a transformation strategy but has yet to develop a complementary IT strategy. Students must select the optimal portfolio of projects aligned with the strategic objectives and define the global project execution strategy. The projects have both risks and dependencies. U.S.-based MDCM, Inc. specializes in medical device contract manufacturing and assembly. For the past five years, MDCM had grown by making over twenty acquisitions of companies based outside of the United States. This growth strategy enabled MDCM to better match its services to its customers who have become larger and more global. In MDCM, Inc (A) the CIO of MDCM, needed to determine the company’s IT strategy and objectives. In doing so, he needed to ensure that they were properly aligned with the company’s overall strategy and the new organization developed under an initiative called Horizon 2000. In a lecture prior to the cases, students were introduced to the framework of IT portfolio management and how it can help in focusing IT efforts. In MDCM Inc (B) the CIO has performed an audit of the MDCM’s IT and found twelve projects that are potential investment candidates for the next three years. The challenge for the IT Portfolio Management team is to identify the priority and appropriate sequence of investments to be made. The case assumes that students have knowledge of corporate IT. More specifically, the case is targeted for those who are or plan to become executives who would manage IT strategy and IT investment decisions either directly or in an oversight role. This case is the second case in a series; the first of the series is the case MDCM, Inc. (A): IT Strategy Synchronization. These cases were originally developed for the Kellogg executive program Driving Strategic Results through IT Portf

Jeffery, Mark, Scott Buchanan and Robert A Cooper. 2006. DuPont Tyvek®: Commercializing a Disruptive Innovation. Case 5-306-510 (KEL194).

What happens when a company is faced with a unique market challenge with the potential to change the way business is done—a true market disruption? This was the challenge faced by the European business team of DuPont’s Tyvek Housewrap business. The adoption of the Kyoto protocol created new challenge on the construction industry in Great Britain that the DuPont team felt they could meet. To enforce the Kyoto Protocol, the UK government threatened to fine utility companies and builders who did not adhere to new emissions standards. This case deploys the Innovation Radar framework that encourages a business to think through all the issues of a business system leading to a successful introduction and a sustainable business. DuPont’s European Tyvek team had to devise a solution at the intersection of multiple elements. Specifically: who should they target? How would they describe the product’s value proposition? Through what channels could they reach the key decision makers? How could they overcome the inertia of the existing business system? LEARNING OBJECTIVE: The key learning of this case is that all the issues relevant to bringing an innovation to market must be recognized and dealt with in an integrated fashion when introducing major new business initiatives. The Innovation Radar is a useful framework that integrates key questions around WHAT the product is, to clearly define WHO key customers are, HOW the product affects their desired outcomes, and WHERE the product should be placed in market. The elements in the Radar comprise a complete business system of innovation.

Jeffery, Mark, Robert J Sweeney, Chris Rzymski and Sandeep Shah. 2006. The Value of Flexibility at Global Airlines: Real Options for EDW and CRM. Case 5-404-768 (KEL266).

Technology projects are inherently risky; research shows that large IT projects succeed as planned only 28 percent of the time. Building flexibility, or real options, into a project can help manage this risk. The management flexibility of options has value, as the downside risk is reduced and the upside is increased. The case is based on real options analysis for an enterprise data warehouse (EDW) and analytic CRM program at a major U.S. firm (disguised as Global Airlines).

The data mart consolidation or the EDW marginally meets the firm's hurdle rate as analyzed using a traditional net present value (NPV) analysis. However, different tactical deployment strategies help mitigate the risk of the project, by building options into the project, and the traditional NPV is expanded by the real option value. Students analyze the different deployment strategies using a binomial model compound option Excel macro, and calculate the volatility using Monte Carlo analysis in Excel. A tutorial is provided to teach students how to accomplish the real options analysis for a simplified project, and this tutorial is easily generalized by students to the case scenario.

In addition to the tactical options, the case has a strategic growth option of analytic CRM. Students must analyze both the tactical and strategic growth options and make a management project funding recommendation and also recommend an optimal deployment strategy to manage the project risk. The case teaches real options for technology projects. Students learn how to calculate real option values, where the key input of volatility is obtained by Monte Carlo analysis in Excel. Students also learn that the real option value is "real," resulting from active management mitigating project risk and improving the upside. Most important, students understand the difference between tactical vs. strategic growth options and make a management recommendation on funding the project and also recommend an optimal deployment strategy to manage the project risk.

Jeffery, Mark and James Anfield. 2009. Outsourcing at Office Supply Inc.. Case 5-107-013 (KEL308).

This case is designed to teach how to structure information technology (IT) infrastructure outsourcing deals from both the outsourcer and the client perspective. Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions is an opportunity to both reduce costs and complexity for the firm, but students first must consider whether outsourcing is a good strategic fit for OSI. Detailed spreadsheet templates are given that are based on a real outsourcing client engagement for a major infrastructure outsourcing company. The spreadsheets are complex but have been simplified so that they automatically calculate when populated, allowing the students to quickly move to answering the management challenge: how should TIS price and structure the outsourcing deal? Answering this question provides deep insights into the business case for IT outsourcing and how outsourcers financially engineer a deal structure to ensure a win-win outcome for both the client and outsource service provider.

Jeffery, Mark, Robert J Sweeney and Robert J Davis. 2006. ROI for a Customer Relationship Management Initiative at GST. Case 5-404-766 (KEL232).

In this Return on Investment (ROI) for Customer Relationship Management (CRM) case scenario students must calculate the ROI for analytic CRM enabled by an enterprise data warehouse (EDW). The case is based upon a real-life consulting engagement with a major Fortune 100 telecommunications company. In this case the executive management team’s strategic objective is to grow the customer base by 5 percent annually by customer acquisition. The internal rate of return (IRR) calculated from the data given in the case is over 800 percent for one year, and sensitivity analysis shows this is a robust projection suggesting it should be funded without question. However, the strategy of the firm is customer acquisition in an environment of high customer churn. As a result of these dynamics, the revenues and net income of the firm are actually decreasing by hundreds of millions of dollars each year. A better solution would realize that the executive team has the incorrect strategic objective. Customer acquisition is the wrong approach in an environment of high customer churn and executives should focus on customer retention and cross-sell and up-sell to high value customers. The case discussion therefore takes students beyond CRM ROI to focuses on the key strategic concepts of customer relationship management.

Jeffery, Mark, Daniel Fisher, Mirron Granot, Anuj Kadyan, Albert Pho and Carlos Vasquez. 2010. Strategic IT Transformation at Accenture. Case 5-110-002 (KEL471).

In 2001 Accenture took the bold step of separating from its parent, Arthur Andersen. The new firm that emerged had a bright future ahead, but it also faced the challenge of building a new IT infrastructure that could support a global organization that consults on leading-edge technology. Accenture’s CIO at the time, Ed Schreck, knew that becoming a master of your own trade was not an easy task. Frank Modruson, Schreck’s successor and the person responsible for carrying forward the IT transformation challenge from 2002 on, had ambitious plans for the new technology infrastructure that was to replace Arthur Andersen’s legacy systems. Difficult decisions had to be made. Should the firm continue with a decentralized approach to managing technology platforms, in which each country chooses its own IT platforms and has autonomy to run them? Or should the firm take a mixed approach, in which the same standard applications would run throughout the enterprise but would be managed independently by individual offices? Or should Accenture espouse a “one-firm” approach and boldly shoot for a centralized implementation of its most critical systems, with all its offices interconnected on the same “instance” of a software platform? Furthermore, should the firm retain its traditional conception of IT as cost center, or should it migrate to a scheme that recognizes IT as a service provision center that generates measurable value for the organization? These questions and many others drove Accenture’s CIO team to undertake one of the most remarkable IT transformations in a global organization in recent years.

Jeffery, Mark, Lisa Jackson, Derek Yung, David Bibbs, Michael Dowhan, Daniel Grace, Woody Maynard and Steven Johnson. 2006. Supply Chain Outsourcing at DB Toys. Case 5-404-767 (KEL256).

The case is based upon a real supply chain outsourcing management decision at a major manufacturing company. The company has been disguised for confidentiality reasons. The case discusses different types of outsourcing, supply chain management, the benefits and risks of outsourcing, and various pricing models for outsourcing contracts. Students must make a management decision and answer the following questions:
- Is supply chain outsourcing a viable option for DB Toys? - What will be the return on investment? - What is the best outsourcing model? - What is the best pricing model?

Cooper, Robert A and Mark Jeffery. 2008. Danaka Corporation: Healthcare Solutions Portfolio Management. Case 5-108-006 (KEL363).

A major barrier for growth of large multi-business-unit firms is the inability to resource the critical initiatives to win—both in terms of dollars and people. The underpinning of the challenge involves the conflict between resourcing current cash-generating legacy businesses vs. new initiatives which may not, in the short term, produce positive financial results. Most companies do not have a formal portfolio process to deal with this fundamental issue. The Healthcare Solutions business unit of Danaka is a fictional business based on real business experiences. The principle challenge is the need for this business to free up $300 million of current, budgeted R&D projects to fund new, unfunded initiatives to meet its five-year growth objectives. Tools and processes are introduced via interactive spreadsheets that show how to make the tough portfolio decisions on a project-by-project basis.

When business leaders set financial goals, they must understand how they are expending their resources. More often than not, significant changes must occur that could be wrenching to the organization. The key learning objectives of the case are: (1) realizing the importance of doing the portfolio analysis, (2) discussing the processes and issues involved in making the changes, and (3) understanding how to put the decision process in place.

Jeffery, Mark, Nancy Kulick, Tim Riitters, Scott Abbott, Douglas Papp, Tiffany Schad, Jed Wallace and Jeff Weimann. 2006. San Diego City Schools: Enterprise Resource Planning Return on Investment. Case 5-404-772 (KEL174).

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 straight forward 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.

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Heisley Family Chair Professor of Global Manufacturing, Co-Director of Programs for Study of Global Logistics,The McDonough School of Business, Georgetown University Kasra Ferdows is the Heisley Family Chair Professor of Global Manufacturing and Co-Director of Global Logistics Research Program a...
Education Ph.D., Finance, McCombs School of Business, University of Texas at Austin, 1992. Capital Markets, International Finance, Monetary Theory & Policy. B.A., Economics, Summa Cum Laude, University of Notre Dame, 1982. Certificate in Latin American Studies Academic Experience University ...
Mark Horenstein is an Associate Professor in the Electrical and Computer Engineering Department at Boston University. He received his Bachelors in Electrical Engineering in 1973 from Massachusetts Institute of Technology, his Masters in Electrical Engineering in 1975 from University of California...