In 2008, San Francisco International Airport (also known by its three-letter airport code, SFO) had a $ 383 million plan to renovate and reopen Terminal 2 announced. Assistant to the deputy director of air safety Kim Dickie and her team had Quantum Secure SAFE suite of software selected as the new Terminal 2 credentialing system, but they needed to develop a business case quickly, that would be to convince the management of it, the green light finance for the purchase to give. The case describes a scenario occurs, … Read more »

In 2008, San Francisco International Airport (also known by its three-letter airport code, SFO) had a $ 383 million plan to renovate and reopen Terminal 2 announced. Assistant to the deputy director of air safety Kim Dickie and her team had Quantum Secure SAFE suite of software selected as the new Terminal 2 credentialing system, but they needed to develop a business case quickly, that would be to convince the management of it, the green light finance for the purchase to give. The case describes a scenario. Often in the real world, but in which a decision has some real quality value in a manner that is difficult or impossible to quantify The discussion and analysis provides students with the possibility that factors to take into account the internal rate of return (IRR), net present value (NPV) and discounted payback period calculations go without building comprehensive spreadsheet models. The analysis of the case suggests the limits of such approaches in cases where perceived value is difficult to quantify. The case prepares students to evaluate and justify the purchase requests when interacting with financial gatekeepers as CFOs and CEOs by introducing a framework for the quantifiable benefits of an investment to analyze, without causing significant intangible benefits.
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from
Chief Daniel Meier,
Evan Meagher
Source: Kellogg School of Management
12 pages.
Release Date: 22 March 2013. Prod #: KEL720-PDF-ENG
San Francisco International Airport and Quantum Secure SAFE for Aviation Systems HBR case solution