Making The Case: IT Investments In A $1.4Bn Transformation

This teaching case provides a practical illustration of the challenges in setting up an IT-based business transformation. The central focus is on the business case development for a new corporate IT platform and the portfolios of business unit initiatives. The Commonwealth Bank of Australia sought to improve its customer service and reduce its costs with a new business platform. The case discusses two persistent issues in IT management. First, how do organizations justify strategic investments in IT? Second, how do they allocate IT decision rights between the corporate centre and the business units? The teaching case shows the dynamic nature of this process. The case also allows students to explore key IT management issues including business and IT alignment and the roles of the CIO and business managers in IT-based change. There is a substantial teaching note available to faculty by contacting the lead author.