Affiliations: School of Management, George Mason University, Fairfax, VA 22030, USA E‐mail: [email protected] | Network Startup Resource Center (NSRC), University of Oregon, Eugene, OR 97403, USA E‐mail: [email protected]
Abstract: The development of investment alternatives for the Government of Indonesia’s proposed scientific network forms the background to this case. The goal was to rationalize a structure for developing and sustaining a broad‐based network capable of serving scientists throughout the country, including very remote areas. It became clear that one approach could combine both technological as well as entrepreneurial elements, since the data communications linkages for serving scientists could also be available for private customers. The process of defining and costing out this approach was a textbook example of a bottom‐up analysis, beginning with customer needs and working toward structures to satisfy the needs. The World Bank and the Government of Indonesia are in the process of implementing several features of the recommended system. The proposed approach can ultimately pay for itself through private sector revenues for user services. While the context of the decision is telecommunications, the methodology is appropriate for many decision‐making situations. Samples of actual data and bottom‐line results are discussed.