Parallel models produced via "what if" scenarios in spreadsheets

A specific task in the graphic arts can present an opportunity to build a model in parallel domains. The project to be undertaken is the promulgation of a product catalog, and the models to be built will compare production techniques.

There are a few concepts from business which require definition at the outset. First, the Peter Principle is a theory that individuals in a hierarchy will be promoted to the level of their incompetence. Next, Parkinson's Law proposes that any task will expand to fill the time allotted to complete it. Third, opportunity cost is the value forgone of desirable, yet mutually exclusive options.

The tool will be developed to serve learners who are the top of the marketing food chain at their firms. By using the tool, they will reflect upon the core competence of their organization. The use of a spreadsheet based on the internet will facilitate an answer to the question of what is the most valuable use of resources.

The model will use actual specifications to show all internal costs. This will then be compared to using an outside specialty marketing services firm to complete the entire task. Production inside of or outside of the firm are the two domains to be compared. For the purposes of this learning experience, the design assumes that either execution would generate the same revenue.

Jim Klein, in his article about social networking in the schools in Saugus, felt that the development cost for his project was zero, even though it took three professional staff members three weeks to execute. This is a typical fallacy in bureaucratic organizations. In business, this would be referred to as a "soft" cost, because the infrastructure already exists inside the institution.

Soft costs are very real, despite the fact that no separate cash outlays are included. Through the use of this tool, the learner will consider "what if" other opportunities had been exploited using company resources. While this developer recognizes the importance of Mr Klein's project to education, is the client firm in the catalog business, or the widget business?