B&K Distributors: Calculating Return on Investment for a Web-Based Customer Portal

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.