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Business Problem Background:Intel, the world’s #1 e-Corporation in terms of Online Revenue, is engaging in an in-depth portfolio study of its E-Business Applications. Our Goal is to calculate the value we derive from using Business Systems and Internet Technologies to Re-Engineer and Automate internal business processes with our Customers, Employees, and Suppliers.This valuation program has Five components, and the MIT MBA student will perform a project that will enable Two of Five Program Modules. The Five components of our eBusiness activity are:1. Keep-the-Business-Running Base Expectations (KTBRBE): Established Applications running our electronic business at a base level, on par with external offerings that could be obtained from an outsource provide (Application Service Provider – ASP). Our desire is to productize our KTBRBE activity in a manner thataligns with ASP offerings for Benchmark comparison studies.2. Keep-the-Business-Running Competitive Advantage (KTBRCA): Established Applications running electronic business with features that are unique to Intel’s business solutions and not readily available from external Application Service Providers. The value of these installations will be measured via Indicators on Productivity, Inventory, Working Capital, Sales Uplift, etc.3. Evolve Development Efforts: Application Development Efforts evolving existing KTBR capabilities to new releases, revisions, or enhanced capabilities. These efforts create yet unrealized benefits measured via traditional Finance NPV.4. R&D Development Efforts: Development efforts with little immediate business impact, but heavily engaged in R&D of new cutting edge technologies. Needed for staying abreast of the technology environment and spurring future innovations. Investments in R&D yield yet unrealized benefits measured via Financial Real Options Valuations.5. Innovation Development Efforts: These efforts are applying cutting edge technology for high business impact and are generally deployed via controlled pilots. Like R&D efforts, these unrealized benefits are measured via Real Options Valuation.KTBRBE and KTBRCA efforts require: KTBR Productization (a split of applications activity into individual products); Alignment of these resulting products to ASP’s Service Offerings for Future Bechmark Comparisons; An understanding of existing ASPs and their service offerings; The Development of Benefit Measurements that Match Industry/ASP definitions; and the Development of Indicators that relate productivity measures from eBusiness Applications to Financial Measures.The Project Deliverables for the MIT MBA Student Include:Definition of the ASP Environment: Who are the Major ASPs? What are their Product Offerings? What are their Value Measurements? How do we align for Benchmarking? This task requires solid coordination with our Productization Program Manager.Definition of Financial Indicators for KTBRCAand Quantifying the Value: An existing effort will create some initial productivity indicators and measurements of eBusiness Benefits realized over the past 2 years. These indicators will need to be refined and converted into Financial Measures. They will likely be incomplete – and need augmentation. The Student will work closely with the Intel eBusiness Portfolio Program Manager and Finance Methods Analyst to accomplish this task.Identifying Additional Opportunities: The end goal of our eBusiness Value Measurementsis to guide our investments for optimal return realized from increasing our responsivenessto customers, streamlining our supply chain and interaction with our suppliers, and improving our services and tools for our employees. The student will identify investment changes to optimize this value.The Project engagement can be 1, 2, or 3 months – we will scope the expectations to fit. Your contact at Intel, eBusiness Group Finance is: Tom Pope , Intel Finance Manager1900 Prairie City Road, FM5-225Folsom, CA 95630(916)356-5047eBusiness Portfolio Value MeasurementPast BenefitsQuantificationKTBRBaseExpectationKTBRCompetitiveAdvEVOLVER&DINNOVATEProductizationROV/NPVROV/NPVNPVIndicatorsASP Alignment Benchmarking$Value$Value$Value$Value$Value$Portfolio ValueMIT Student engages


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MIT 15 823 - Business Problem Background

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