To the Senior Executives Team

In determining to balance the risk and return of the IT investments, using the data provided
which describes the current IT capabilities, infrastructure, and ability to plan, our ITPM team
has concluded its findings on reducing future costs. In addition, we will also describe our teams
analysis and suggest improvements that can be made in order to make MDCM and its
subsidiaries find the optimal IT investments that align with the overall corporate strategy.

In order to find which projects were most likely to be chosen as first priority, we first
constructed a weighted table displaying all projects in a clearly defined standard of measure.
Once gathered, we fed the data into the DICE framework from Boston Consulting Group,
which measures the likelihood of a successful project. Using the DICE results, our team was
able to analyze which projects had the highest chances of being successful and would
ultimately benefit MDCM the greatest in the long run.

DICE pinpointed consolidation of data centers and networks across all the MDCM subsidiaries
as one of the most successful projects, resulting with a final score of 10 on a scale from 7 the
best scenario and 28 the worst likelihood of success. The next highest candidates of
prioritization included improving our collaboration systems, implementing a customer self-
service portal, and streamlining design systems (CAD), returning final scores of 10,10, and 11.5,
respectively. This indicates that the projects we have pinpointed are realistic and have the
greatest potential in benefiting MDCM and its subsidiaries.

Concerning the order of the chosen projects, we decided consolidation of data centers and
network as top priority. Next came improving collaboration systems, implementing the self-
service portal, and streamlining the design systems. To explain why consolidation of data
centers should be our primary issue, when our team identified MDCM and its subsidiaries
technical capabilities, we found that there are currently nineteen networks and thirty-seven
data centers worldwide. If we can consolidate all thirty-seven data centers into three primary
locations and shift the company network to a virtual private network, we have discovered it
could save $1.1 million and improve the reliability of our network. The next top priority project,
ameliorating the collaboration systems, would call for implementing a more globalized
communication system allowing for improvements in information flow via email, discussion
boards, etc. Furthermore, if we can develop a better customer self-service portal, we can
reduce much of the administrative expense while greatly improving customer satisfaction.
Lastly, if we renovate the current design system to streamline the design process by installing
custom-built CAD systems like the ones used in the UK, we can see an increase in efficiency
and reduce the need to continually purchase off-the-shelf software products.

It is important to note the limitations in our analysis, however. By looking at our findings it may
seem clear that data consolidation would be the highest priority. Yet, there is a hidden cost of
possible interruption to the company network services, and possibly occupying all of the
networking staff for about six months. In addition, if we upgrade our collaboration systems,
there is strong necessity for strong IT support, which would require a large amount of internal
resources as well. Furthermore, if we initiated with the development of the customer self-
service portal, the time required would be six months, but with it comes the risk of the system
failing due to the current outdated data centers and networks still in use. As an alternative to
building custom CAD systems, there is still the option to use off-the-shelf software products,
and have that as the standard across the entire enterprise. For these many reasons, there are a
lot of uncertainties still at play. However, with the current analysis, our team believes that we
can reach a favorable outcome with the recommended IT suggestions provided.

Appendix A: Weighted Scoring Model

To see more in depth the scaling of our criteria toward each project, our team has created the
following table, displaying in green highlight the weighted scores of the top priority projects.

Appendix B: Portfolio Application Model Matrix

Appendix C: Priority Funding Table