IT Strategy of MDCN - Case Study Example

IT Strategy of MDCN Medical device contract manufacturing or MDCM, Inc. is one of the world’s major contract manufacturers for medical devices. The business of the MDCM, Inc. has acquired the lot of new businesses and attained a significant growth in the business. As business acquired lot of new business, so there is a need for the better and more enhanced business structure. To tackle these problems there is a new transformation strategy that is known as Horizon 2000 (JEFFERY and NORTON). In case of Horizon 2000 implementation the overall corporate structure has completely transformed that requires a corresponding IT strategy. This research will present detailed analysis of the new IT strategy that will be implemented at MDCM. This paper will outline the main business and corporate objectives and potential enhancements that can be achieved at the business through the new corporate IT strategy. Before defining and presenting the corporate business strategy we need to initially define the main business problems those are affecting the business of MDCM. According to case study, the technology and IT related problems have emerged after the MDCM acquiring of lot of new related businesses. This has created the problem of the combining different business technologies to a similar structure. I have outlined some main problems areas of the business; The overall business is not having a single financial and accounting system. The overall business is running on the legacy systems. Each business division is operational through a different system. And, the operating system, databases and other business management systems are completely different at different locations. Also, there is no standard emailing and business communication structure. Moreover, the overall business is lacking a centralized business platform, that can handle and communicate to all business areas (JEFFERY and NORTON). MDCM, Inc. was the largest company in the industry; it had the worst operating and profit margins. The overall manufacturing was so poorly coordinated. The sales departments are also running through some of the ethical dilemmas (JEFFERY and NORTON). Enterprise-wide strategic intent and business objectives The main intention of the business of MDCM, Inc. is to attain a better and more cooperative business environment. The business infrastructure is demanding a better management of all departments all through the business enterprise. The main objectives of the business are listed below; Better management of corporate operations Effective handling of all business areas Establishment of a similar management and business handling structure Potential enhancement of business market share Attaining a better competitive edge Establishment of a new IT based business management structure Developing a new and effective business communication Increasing the business average revenue Competently renovating the business through a single business name Deploying effective business management at all levels of business divisions Key Business Objectives The key business objective of MDCM, Inc. is to improve the business revenue. Then MDCM, Inc. administration is mainly focusing on the enhancement of the corporate market place share. The business is requiring presence in overall marketplace business. Then business wants to attain a better competitive edge. There are lot of new business exist in market and offering better services and pricing. MDCM, Inc. needs to attain a better edge regarding quality, pricing, delivery and handling of business products and services. Corporate strategy The corporate strategy regarding the establishment of new and effective business and corporate management systems at the business is given below. The business of MDCM, Inc. basically requires the completely transformation of the IT based structure and presenting a new and needs more effective business management and handling systems. The new IT based infrastructure will offer a centralized business management that can offer to all subseries a better communication and business management link with the central office of management headquarter. For defining the corporate new business and IT based strategy I will perform the following analysis. 5.1- Porters 5 forces - Porter's Five Forces This section is about the Porter's Five Forces analysis regarding the new centralized IT based business management structure implementation at MDCM, Inc. business. Figure 1- Five Force: Source[http://articles.bplans.com/business/porters-five-forces/119] The explanation and its implementation to MDCM, Inc. business will offer an improved business and operational management overview. The five forces are given below (Berry, 2009): Existing competitive rivalry between suppliers In this scenario we can assess the present competition among present business organizations in the market. We can improve them by establishing a better strategy for handling them. Threat of new market entrants In the scenario it can be viewed that we need to access a new market place and we require a better and enhanced business policy and effective business support through the new effective technology based structure implementation at MDCM, Inc. business. In this way we need to analyze how business arrangement will be effective for handling and surviving in business market place. Bargaining power of buyers Buyers always require some bargaining for the business. In this scenario we need to establish goods cost at some appropriate cost as compared to business competitors. This can happen due to new better IT based business structure implementation that effectively lessen the cost of overall product development, delivery, better management and handling. In this way MDCM, Inc. business will be more capable to diminish the products cost and development delivery time that will offer the customer to have considerable less product cost. Power of suppliers We also need to view the supplier power regarding the business products manufacturing and handling. In this way we would be able to gain in a better way and also able to maintain an effective demand and production cycle. Threat of substitute products (including technology change) In implementation of new business system we need to analyze the overall competitive technology. Here we need to assess that if any business is offering a better business system as compared to market place. We need to develop our products with state of the art technology that offers better services and effective working as compared to business competitor. Value chain According to Kotelnikov (2009), the value chain analysis offers the enhanced understanding of the business activities through which a firm develops a competitive advantage as well as produces shareholder value; it is helpful to split the business structures into a sequence of value-generating tasks referred to like the value chain. The main intention of value chain analysis for the MDCM, Inc. business is to assess the objective of these activities and to present the client a level of value that goes beyond the cost of the tasks, thus ensuing in a profit scope. In the value chain analysis regarding the MDCM, Inc. business we will have following activities (Kotelnikov) & (Laudon and Laudon): Inbound Logistics: This factor is about the receiving new business systems and their implementations in business environment. In this scenario we need to analyze the all the related factors such as their contracting and implementation in business framework. Operations: After the implementation of the new IT and business management system in the organization structure we need to assess the how main business information inputs are transformed into the finished effective business handling services. Outbound Logistics: the scenario of value chain analysis incorporates the detailed analysis of the management and handling of the manufacturing and distribution of finished goods through the new information based system. Marketing & Sales: the recognition of customer requirements as well as the generation of sales is also a main factor of the new business management systems. The new systems implementation needs to effectively support and handle the marketing and sales setup. Service: The new technology based business systems need to effectively support and uphold the customers’ products and services those are sold to them. Figure 1- value chain Source; http://www.quickmba.com/strategy/value-chain/ Swot Analysis The SWOT analysis of the new business technology systems implementation at MDCM, Inc. will offer detailed overview of main strengths, weakness, opportunities and threats. Strengths The main strength of the new technology based business system implementation at MDCM is that this new technology based structure will standardize the overall business operations and management handling at all business accusations. These systems will automate the overall MDCM, Inc. business operations and will offer the easy handling of business data recording and effective management. Weakness The main weakness behind this technology implementation is need for the effective human resource regarding the implementation of the new technology based platform. This will require the extensive investment in all areas. These can be human resource as well as physical resource (hardware, technology resource, new working platforms). This main weakness in this new business transformation is regarding the extensive business investment and long term infrastructure establishment. Opportunities The new IT based business technology implementation will offer the opportunity in getting a better competitive edge in the overall business market. Through this technology infrastructure implementation business will gain more. Business management and operational management will be more effective and efficient. Threats The main threat regarding this technology implementation is the successful completion and implementation of the new information technology based business management and handling structures implementation. In case of huge investment, implementation of the high quality resource and spending hundreds of man house project completion if project fails then the business will be in very critical condition regarding the business operational enhancement. SMART Objectives In this section I will present the SMART business objectives regarding the new business technology and IT based structure implementation at MDCM, Inc. 1. Specific –Attaining a better business management and enhanced corporate communication. 2. Measurable – The potential enhancement in the business supply chain, effective management of supply and demand and attaining the pre-settled business objectives will offer us to assess business performance. 3. Achievable – the objective are settled are achievable through the effective business investment and dedication of the corporate management. 4. Realistic – The realistic establishment of business objective is possible. Because lot of new and effective IT and business management technologies are available currently like SAP/R3 systems. 5. Time – This overall business transformation can tackle approximate more than one year. Conclusion The new IT technology based business management is turning out to fundamental need of every business. This new technology offers better management, enhanced business handling and festive corporate business management. In case of MDCM, Inc business management I have defined the new IT based business strategy. This strategy is purely aimed at attaining a better business management, increase business revenue and obtain a better competitive edge. In this research based analysis I have tried to elaborate the different business aspects and objectives in form of new business strategy. I hope this report will offer a better analysis of the new IT based business strategy. Work Cited JEFFERY, MARK and JOSEPH F. NORTON. "MDCM, Inc. (A): IT Strategy Synchronization." 2001. Kotelnikov, Vadim. "What is Value Chain?" 2009. 20 11 2009 . Laudon, K.C. and J.P Laudon. Essentials of Business Information Systems. 7th ed . London: Prentice Hall, 2007. Read More