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Canadian Shield Case Essay

Decent Essays

Using the Accenture document on governance presented with the Alcan case, place Canadian Shield in the appropriate quadrant.
According to the Accenture document, I would place Canadian Shield within the efficient, predictable operator category. The slow rate of change and need to compete on operational efficiencies characterized by most companies in this quadrant is detailed by the following quote from the case authors. “Sustainability for Canadian insurance companies greatly depended on investments in projects that increased customer service and improved operational efficiency.” This comment is aligned with the predictable operator company practices and is evidence that in order to gain a competitive advantage in the Canadian insurance …show more content…

However, to AC and Seamus that unfortunately is the truth.
Since the proximity of the new ISS system being implemented is close and it has taken so long to arrive at this point, taking a traditional view of sunk costs will not be easy for the employees at CS. Despite this sentiment, it is important that executives remain objective when determining the future direction of the company. This project should be treated the same as if were any other business project such as a building and if it no longer viable it should be seen as a sunk cost and a new project should be selected for implantation.
A sunk cost is not necessarily considered a loss however, if CS decides to abandon the ISS project that is exactly what it could and in my opinion should be.

Using your scorecard from question #6 and your own experience, complete the summary scorecard included below.

System
ALPHA
ISS
AIS
Scorecard value 25 23 18
Scorecard rank 3 2 1
NPV
5.01 6.3 3.6
NPV rank 2 3 1
Extra revenue possibilities? 3 2 1
Strategic Considerations 3 2 1
Control over IS retained? 2 1 3
Implementation Date 1 3 2
Decision “reversible”? 2 3 1
Key employees vulnerable? 1 2 3
Vulnerable to outside supplier? 2 1 3
Develop competitive advantage through IS? 3 2 1
Updates?
3 2 1
Pressure to keep system current? 3 2 1

Here's your obvious final question- what would you recommend and

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