Originally Posted by
Final 3 Greens
I don't understand it, either. In presenting a business case, you are demonstrating that the costs are necessary to generate revenues that provide a margin. If you argue the case properly, spending the right amount of money is important in obtaining value for money, rather than the cheapest solution. Ergo having a properly maintained and viable IT infrastructure is a critical success factor in running an airline (not the only one) and thus requires the right amount of overhead being budgetted to do the job properly - to fail to provide the monetary resources (in capex and opex) is risking company/brand reputation and competitive position.
One doesn't need to have an MBA to understand this, I don't either and I don't teach on MBA classes.
While the monthly expenses and/or deprecation for a certain infrastructure projects are well defined, risks associated with failures mitigated by these are not. Risk is probability of occurence multiplied by damage and neither is clear until the event finaly set in and are therfore subject to manoeuvering, whitewashing, sugercoating. What attention gets a once in a decade or a semi-centurial event by decision-makers focused on the next quarterly?