IT Projects for MDCM - Report Example

MDCM (B) Table of Contents Table of Contents 2 Introduction 3 Discussion of 12 IT Projects 4 Recommendation of Appropriate IT Projects for MDCM 8 Scorecard 10 Portfolio Application Model Matrix 12 13 Sequences of Projects During Execution 14 Conclusion 15 Works Cited 16 Introduction MDCM is one of the leading agreement manufacturers of medical devices in the world. Its key corporate domicile was in United States. MDCM had been a prominent provider of medical devices but unfortunately, the firm could not sustain in the long run primarily due to inappropriate information technology (IT) systems within the organization. In order to tackle the critical situation, Shawn Atkins was hired as CIO by Max McMullen, the CEO. After analyzing the situation, Mr. Atkins suggested the utmost need of an appropriate IT system in the organization for free flow of information regarding product requirements as well as enhancement of market share. Moreover, this can also improve the positioning of the company among competitors and in the international market (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). In this report, the most efficient and value-added IT project for MDCM is discussed as well as recommended in a brief manner being a member of the IT Portfolio Management executive committee working along with the CIO of the company. Moreover, with the help of scorecard, each of the top projects are evaluated as well as compared with Portfolio Application Model Matrix and are arranged in a sequential manner in order to maintain a sustained brand image and position in the market. Discussion of 12 IT Projects MDCM is one of the foremost contract manufacturers of medical devises with main headquarter in United States with subsidiaries all round the world. But due to its mismanaged IT services, the firm could not sustain in the market. The reports of audit initiated by Shawn Atkins suggested the utmost need of an appropriate IT system in the organization for free flow of information regarding product requirements as well as enhancement of market share. This led to the establishment of a disciplined IT Portfolio Management (ITPM) executive committee with the task of discussing and recommending the top IT projects that can maintain MDCM’s strategic business objectives and brand image. The various projects and initiatives are stated below: Unify Methodology and Technical Standards This is one of important projects discussed for improving the global IT of MDCM. This project would facilitate the sharing of IT knowledge and also enhance the IT methodologies among all the teams as well as the members across the organization. It would require 195 internal IT professionals and a single technically educated consultant (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Consolidate Data Centers and Networks It is another project which facilitates in consolidating the data centers into certain specific locations along with the virtual private network (VPN) for the organization. This network would prove to be much more reliable than others as is managed by a telecommunication provider. In addition, this can reduce the estimated IT cost of the firm as well (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Outsource Non strategic IT Services Outsourcing of nonstrategic IT services such as hardware maintenance and help-desk support are important services which can facilitate cost saving of the organization (Jeffery, M & Norton, F., J. “MDCM, INC. (B): Strategic IT Portfolio Management”). Standardize Server Hardware and Platforms In order to reduce the maintenance and support costs, the IT team thought of implementing UNIX and Windows systems rather than previously utilized numerous hardware platforms in the organization. Moreover, standardization can save approximately $1.5 million each year (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Implement Enterprise Resource Planning An enterprise resource planning (ERP) project among production team and suppliers was implemented but unfortunately it lacked coordination among the local IT teams and proved to be ineffective for MDCM. Furthermore, it includes technically sound consultants, long time period and an estimated cost of $30 million to complete (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Create Employee Intranet Portal This mainly facilitates the human resource administration such as the function of employee benefits which became extremely popular by establishment of intranet. It provides the facility of self service through automated machines. Along with this human resource expenses and administration also reached desired efficiency due to employee intranet portal systems. This helps in reducing the number of employees from the organization (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Manage the Supply Chain Proper management of supply chain is essential for efficient running of the organization. In order to fulfill this motto, the IT team decided to choose a software vendor i2 as the partner for implementing the supply chain system in the organization. It can facilitate effective functioning of the organization (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Streamline Design Systems In order to modernize the design system of MDCM, the IT team used the computer-assisted design (CAD) in the organization. It can reduce the timings of product design cycle as well as enhance the quality control of the firm. Thus, the use of AutoCAD, Cadam and Catia can prove to be beneficial for MDCM (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Improve Collaboration Systems In spite of uncalculated Return of Investment (ROI), there are certain opportunities such as emails, discussion boards, calendars and knowledge management applications which can improve the functioning of the organization and its brand image globally (Jeffery, M & Norton, F. J., “MDCM, INC.(B): Strategic IT Portfolio Management”). Begin CRM/Create Data Warehouse The subsidiary of MDCM located in France, successfully implemented a customer relationship management (CRM) system that enhanced its sustainability globally. It also helps to collect data about customers and store into a data warehouse. But it requires more than $15 million to implement (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Implement E-procurement System MDCM started to aggregate the purchasing function of all materials in order to take the benefit of the power of buyers. This lead to huge cost savings. The implementation of an e-procurement system such as Ariba can facilitate both the purchasing function as well as cost savings of the firm and can be employed within six months (Jeffery, M & Norton, F. J., “MDCM, INC.(B): Strategic IT Portfolio Management”). Customer Self-service Portal Customer Self-service portal can decrease the administration expenses of the organization. By this system, the customers can directly communicate with the account managers, place orders according to requirements as well as enquire about the position of the orders. The portal can be established within six months and can enhance better service and brand loyalty among others (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Recommendation of Appropriate IT Projects for MDCM According to the case study, it is evident that the crisis faced by the management of MDCM was primarily due to the problem of information technology (IT) systems of the organization. In order to solve the problem of IT, Shawn Atkins was hired by CEO, Max McMullen. The primary objective of IT was to implement a smooth information flow among the departments, subsidiaries, management, suppliers and logistics. Thus, various IT projects were discussed and evaluated by the ITPM team members keeping in mind the business strategy of MDCM. From the above discussion, it is apparent that the project of ‘unify methodology and technical standards’ can be implemented in the organization as it facilitates the sharing of IT knowledge and enhancement of the IT methodologies among all the members of the organization. This can improve the internal coordination and working of the organization which can improve the brand image in the market (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Moreover, ‘consolidate data centers and networks’ can also be recommended in MDCM as it facilitates in assimilation of data centers along with the virtual private network (VPN) for the better functioning of the organization. It also facilitates in cost saving of the firm. Other than this, ‘outsource non strategic IT services’ is another vital project which can be recommended for MDCM. It can decrease the estimated cost as well. ‘Standardize server hardware and platforms’ can also be recommended as it reduces the maintenance and support cost of $1.5 million on vendor services by implementation of UNIX and Windows systems among others. Along with these, creation of ‘employee intranet portal’ mainly facilitates the human resource administration such as the function of employee benefits which became extremely popular by establishment of intranet website. It provides the facility of self service through computerized machines. It helps in efficient running of the organization (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Proper managing of the supply chain can be done by developing a software vendor i2 in the organization which is essential for efficient running of the organization. Furthermore, in order to modernize the design system of MDCM, the IT team used the computer-assisted design (CAD) in the organization which can reduce the timings of product design cycle as well as enhance the quality control of the firm. There are certain opportunities such as emails, discussion boards, calendars and knowledge management applications which can improve collaboration systems of the organization. Apart from this, the implementation of an e-procurement system such as Ariba can assist both the purchasing function as well as cost savings of the firm and can be implemented only within six months. Finally, customer self-service portal can also be recommended as it reduces the administration expenses of the organization and can be enforced within six months (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Thus, it can be stated that the implementation of these suggested projects can enhance the brand image and positioning of the organization both in the market and among consumers as well. Scorecard According to the case study, it can be suggested that, the numerous projects are evaluated with the help of scorecard by analyzing various factors. The scorecard is shown below: Unify Methodology and Technical Standards Consolidate Data Centers and Networks Improve Collaboration Systems Outsource Non strategic IT Services Standardize Server Hardware and Platforms Implement Enterprise Resource Planning Create Employee Intranet Portal Manage the Supply Chain Streamline Design Systems Begin CRM/Create Data warehouse Implement E-procurement System Customer Self-service Portal Technical standards 21% 20% 18% 15% 20% 16% 18% 12% 11% 15% 20% 21% Skills, capability and training 10% 18% 20% 19% 18% 11% 18% 15% 17% 19% 10% 11% Scope and complexity 21% 15% 14% 14% 19% 17% 18% 11% 23% 12% 13% 10% Business alignment 21% 18% 19% 20% 21% 19% 21% 11% 13% 13% 14% 15% Management capability 21% 20% 20% 12% 12% 13% 21% 14% 17% 10% 20% 18% Risk 6 % 6% 7% 10% 9% 6% 4% 10% 10% 5% 7% 8 % Total 100% 97% 98% 90% 99% 82% 100% 73% 94% 79% 84% 93% Financial return 13% 18% 12% 10% 14% 17% 10% 11% 23% 12% 14% 10% Customer and consumer focus 19% 11% 20% 22% 12% 19% 10% 10% 18% 13% 22% 13% Technology efficiency 19% 21% 10% 12% 11 % 10% 17% 13 24 13% 11% 12% Knowledge advantage 18% 16% 16% 11% 10% 11% 24% 12% 21% 12% 16% 15 Supply chain business benefits 19% 11% 18% 13% 13% 11% 12% 5% 20% 13% 14% 13% Total 88% 77% 76% 68% 60% 68% 70% 71% 62% 63% 77% 63% Source: (Jeffery, M & Norton, F. J., “MDCM, INC. (B): Strategic IT Portfolio Management”). Thus, it can be stated that from the scores in the above table, it is clear that the factor of likelihood of success criteria is more emphasized rather than value to the business. Portfolio Application Model Matrix The use of portfolio concept includes bringing together present, planned and potential information systems and judgment of their involvement in business. It includes two variables such as value to business and ability to succeed. From the above discussion, it is clear that nine recommended projects are more focused as these can lead to success of the organization along with addition of value in the business. ‘Unify methodology and technical standards’ is essential along with ‘consolidated data centre and networks’. Moreover, websites, intranet, e-procurement system as well as facility of AutoCAD are required for efficient functioning and cost saving of the organization. The risk factor is also very less as compared to others. On the other hand, implementation of Enterprise Resource Planning (ERP) and Customer Relationship Program (CRM) include high cost as much time during enforcement. Thus, these are not as such beneficial for MDCM (University of Gothenburg, “Application Portfolio Management”). Figure: Portfolio Application Model Matrix Sequences of Projects During Execution Sequence of Projects Time to be Incurred Streamline Design Systems 4 months Unify Methodology and Technical Standards 6 months Create Employee Intranet Portal 3 months Standardize Server Hardware and Platforms 3 months Outsource Non strategic IT Services 2 months Consolidate Data Centers and Networks 6 months CRM/Create Data warehouse 12 months Improve Collaboration Systems 12 months Manage the Supply Chain 8 months Self service portal 7 months Implement Enterprise Resource Planning 9 months Implement E-procurement System 10 months Thus, it would be beneficial for MDCM, if the IT recommended projects are implemented in the above sequential manner. Conclusion Conclusively, it can be stated that from the above analysis it is clear that the likelihood to success for the nine mentioned projects are more as compared to others. Apart from this, the recommended projects also add significant value to the organization’s business. Hence, the above discussed projects can facilitate in enhancing the brand image as well as the market share of MDCM. These can improve the sustainability in the market among competitors and at the same time augment the operation and business strategy of the organization. Works Cited Jeffery, M & Norton, F. J. MDCM, INC. (B): Strategic IT Portfolio Management Kellogg School of management, 2006. University of Gothenburg. “Application Portfolio Management”. December 12, 2011. Bit Stream, 2002. Read More