WRITTEN CONSULTANT'S REPORT

Written consultant's report

Written consultant's report

Enterprise-wide information systems represent sets of business applications that allow for an organization-wide management of operations (Pawlowski, Boudreau, & Baskerville, 1999). These systems are currently widespread in the form of more application of enterprise resource planning (ERP) systems, which became one of the largest information technology system investments in the 1990s (Chung & Snyder, 1999; Sumner, 1999). ERP is defined (Nah, Lau, & Kuang, 2001) as: “a packaged business software system that enables a company to manage the efficient and effective use of resources (materials, human resources, finance, etc.) by providing a total, integrated solution for the organization's information-processing needs” (p. 285). Although it has a doctorate in corporate finance, I have gained experience to over many years in a range of different areas. For the evaluation of projects on a large scale, is a flawed critique merely examines the financial aspects. I was impressed by the professionalism and thorough evaluation of the extension of Canal. I believe that the financial and risk analysis is an excellent base to take a decision on whether to proceed with the expansion of the Canal.

After reviewing the financial and risk analysis, I think the project is viable. The rate of financial return is acceptable. When combined rate financial return to the rate of economic return to Panama, proposed expansion becomes very attractive.

ERP systems are seen as optimization and integration tools of business processes across the supply chain (within and beyond organizational boundaries; see Figure 1), implemented through modern information management systems (Stefanou, 1999). This integration provides visibility and consistency across business functions like manufacturing, finance, distribution, and project management. Moreover, ERP helps get the most benefits of databases and ensures that the system environment is built following an open system approach.

Overview of the recommendation

However I believe that financial analysis is conservative, models financial / risk reveal the intrinsic value of the expansion project. A lower discount rate (which I think is right), the value of magnification increases substantially. (Corning 2002)

And, more importantly, the financial analysis does not take into account the economic analysis. With modest assumptions about the value economic project for Panama, the internal rate of return increases significantly. Unlike the usual assessment of the project, the given indirect leads to higher GDP growth, more investment, more jobs, more income for the government.

Method

I spent my first day reviewing the financial models and project cost. I also spent much time talking about the competitive environment. Also discuss environmental issues and review some of the studies that been commissioned. Much of the day was devoted to reviewing it line by line models detail contained in many spreadsheet programs. The second day was divided into two parts. The first part of the day was devoted to examining the model risk. This review included scrutiny of the assumptions on the distribution risk factors. During the second part of the day reviewed the economic model. Interestingly, the first day I did a calculation on ...