Discussion Questions November 1, 2012 POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: Dept. of Industrial & Management Engineering POSTECH

2 Discussion Questions ■Chapter 7. Choosing Innovation Projects 3.What are some of the reasons that a firm might use both qualitative and quantitative assessments of a project? –To provide a complete view of the project’s potential A project’s potential profitability is important but it is hard to assess using only information that is available in a quantitative form, and is also not the whole picture. The strategic implications of an innovation must also be taken into account and qualitative measures are more suited to evaluating this type of outcome.

3 Discussion Questions ■Chapter 7. Choosing Innovation Projects 4.Will different methods of evaluating a project typically yield the same conclusions about whether to fund its development? Why or why not? –On one level it is unlikely that different methods will yield the same conclusions because they apply different criteria (e.g. financial, strategic, etc.). –On another level we could expect different methods of evaluating a project to yield the same conclusions because all of these methods rest wholly or in part on managerial assumptions and these assumptions are likely to be the same regardless of the method used.