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Case Prompt:
The Chicago Transit Authority (CTA) has received $300MM and wants to prioritize which of its 20 different technology projects should be implemented and in what order. Their current 30-year-old mainframe system controls all their systems, and they have written bridge/translation code to interface with some of their newer systems. They have asked for your advice on which projects to implement first.
Exhibit:
- The CTA has enough money to implement all 20 projects.
- The mainframe system in use is from the 1970s, and there are not many people who can support it.
- Almost all CTA technology employees know only old mainframe systems.
- No one knows the original code for the mainframe system.
- Bug fixes are being done by people who only know bits and pieces of the system.
- CTA is a public service and may prioritize projects based on public needs rather than financial needs.
- CTA may take on negative NPV projects if it serves the public.
- CTA does not want to fire its employees.
- Two high-profile projects are the ERP system and Smartcard for toll booths.
Background:
The CTA has an outdated 30-year-old mainframe system that controls all their systems. The bridge/translation code allows for interfacing with some of their newer systems. However, there are no original codes available, and bug fixes are being done by employees who only know bits and pieces of the system. The CTA is a public service, and they may prioritize projects based on public needs. Additionally, they have the budget to implement all 20 technology projects. The two high-profile projects are the ERP system and Smartcard for toll booths.
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Analysis:
To advise the CTA on which projects to implement, an analysis of the impact of each project on three areas of the CTA's technology infrastructure would be necessary: 1) impact on the core mainframe system, 2) impact on translation/bridge software, and 3) impact/requirement for the new system. It would also be necessary to assess the person-hours needed to implement each project.
Projects would then be organized based on the following criteria:
- How critical is the project to public needs?
- Does the project impact critical systems of existing infrastructure?
- The economic impact of the project is measured in dollars and person-hours.
- Personnel training is required for the new system.
Given these criteria, the Smartcard project is likely to be more critical than an ERP implementation.
It is important to keep in mind that the CTA's goal is not to cut costs but to provide service. Furthermore, the CTA is legally obligated to implement some money-losing projects. The interviewer wants to see if the criteria used to prioritize different projects are logical, and structured, and consider the impact of the recommendations on the technology infrastructure and business goals of the client.
Frequently asked questions
What is the main challenge faced by the Chicago Transit Authority in this case?
The CTA must prioritize 20 tech projects after receiving $300MM in funding, while still running on a 30-year-old mainframe system with limited support. They must balance public service needs, technical complexity, and employee limitations without cutting jobs.
What factors should be considered when prioritizing CTA’s technology projects?
Projects should be ranked based on their impact on the legacy mainframe, public necessity, technical complexity, training needs, and person-hours required. High-priority projects must ensure smooth system integration and align with public service obligations even if they lack financial returns.
Why is the CTA’s mainframe system a major concern?
The mainframe is outdated, undocumented, and poorly understood. Few employees know how to maintain it, making bug fixes unreliable and future upgrades risky. Any tech project affecting this core system should be approached with extreme caution and careful planning.
Which project should CTA prioritize first—Smartcard or ERP?
The Smartcard project should be prioritized over ERP, as it directly improves public convenience, streamlines toll collection, and impacts a wider commuter base. It’s more aligned with CTA’s public service goals and carries higher urgency in terms of citizen benefit.
Can CTA implement negative NPV projects?
Yes. As a public service agency, CTA can take on negative NPV projects if they significantly benefit the public. Unlike private firms, CTA’s decisions must consider social value, accessibility, and service continuity alongside financial metrics.
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