Busines and IT Department of MDCM - Essay Example

MDCM Information Technology Business Plan Before recently, MDCM was one of the world’s leading providers of medical equipment. However, the company has begun to lose revenue. Despite, posting revenue of $1.12 billion, the company has lost $33 million in the second quarter, MDCM, Inc. IT strategy synchronization, (1). This cannot happen any longer. The key business objective for MDCM to overhaul the Information Technology (IT) department, and implement one system throughout the company, when MDCM can successfully implement one IT system throughout the company, the company will begin to prosper again. There are many things wrong with the IT department throughout the company. Because, the company acquired many other companies during the 1990s, the company lost touch with the IT department. Because, prior too now the company lacked a Chief Information Officer (CIO) the company has had a haphazard IT department. The current position of the IT department is the possible cause of lost revenue the company has been faced with. Only after Horizon 2000 was implemented was it discovered that it is almost impossible for someone in Detroit, Michigan to adequately receive information from someone working for the company in Taiwan. If the company cannot adequately, and efficiently share information throughout the company, the company will begin to lose revenue. The company loses revenue through the loss of accounts. The company loses accounts, because orders are being shipped untimely. Only when the company begins to implement a new Information Technology department will the company began to prosper again. The competitors have an advantage over the company, because the competitors have their IT departments organized. The competitors do not necessarily have more accounts than MDCM; but the competitors do have an advantage over the company; because, these companies are able to share information on a timely basis. Because, the competitors can share information on a timely basis, the competitors are able to fill customers’ orders in a timely manner. If MDCM were able to fill customer orders in a timely manner, MDCM may have an advantage over the competitors. When MDCM lost those four counts within 12 months, the company not only lost revenue, but the company lost these accounts competitors. When Max McMullen as Chief Executive Officer (CEO) of MDCM in 2000 he discovered some of the sales staff were competing against each other for the same account, MDCM, Inc. Information technology strategy synchronization, (4). This is why him McMullen decided to implement Horizon 2000. Because, the company acquired so many businesses through Horizon 2000 and the company is unable too efficiently, and adequately share information the customers began to lose faith in the company. Today, the company is losing those customers to the competitors who are able to share information in a timely, and adequate manner. McMullen also notices through the implementation of Horizon 2000 the company’s Information Technology department is in disarray. The objective at MDCM is to implement a new strategy to revamp the Information Technology department, in implementing a new strategy to revamp the Information Technology department the company is attempting to regain the trust of current customers, and to gain new customers. Before the company can implement a new strategy to revamp the IT department, the company needs to decide on a plan for revamping the IT department. The company plans to begin revamping the Information Technology department by purchasing new desktop computers to use throughout the company. When there are computers in company that used different operating systems it may be difficult to communicate within the organization. The company will have one operating system on all computers throughout the company. The company will begin to implement an intranet system. By implementing an intranet system the company will begin to expedite communication throughout the entire organization. Having only one computer system throughout the organization will allow those in France to communicate effectively with those in the United States. Because the company will have only one operating system, each computer per will be compatible with any other computer in the organization. Each of the regional managers will have a company e-mail address. If the regional managers, and top officials at MDCM each have a company e-mail address, information can be easily accessible. Without having company e-mail addresses regional managers, and top officials are not able to communicate effectively. Because there was no way to obtain in an e-mail address for everyone in the organization who needs to communicate with one another, it made it is almost impossible to communicate in a timely, and effective manner. The company will begin to use only one logistics and transportation method. Currently there are five different methods the company uses for logistics and transportation. By implementing a uniform system for this department the company is attempting to cut costs in this department. Having a uniform system will make this department more efficient. This is a very important department for the company. The company needs to deliver the customer’s products in a timely manner. The company will begin using Microsoft Access for the data system. Everyone in the company will begin to use the Microsoft Access database system. When the company purchases the new computers, the company will install the latest Microsoft Office along with Microsoft Access. Having only one data system throughout the company will ensure that the computers in Taiwan will be able to access data entered into the database in Manhattan. Ensuring that all computers are compatible with the database systems will ensure those who need access to this information will have adequate access to the information. Material’s requirement planning will have a new leader. This new leader will implement the plan to train all Associates within this department one system to use in this department. When the company has a uniform plan to operate each department, the company will have consistency. Without consistency the company is in disarray. Having a uniform system will ensure that each associate is conducting business the same way in France, and the United Kingdom. Every 90 days the company will assess the progress of the new changes. The company’s goal is to begin making a profit again within 24 months. The company has enough assets to withstand a 24-month window. If the company is measuring the success of the changes within the Information Technology department, every 90 days the company will keep track of the progress. By keeping track of the progress the company will immediately notice whether, or not any additional changes need to be made in these departments. The objectives set by the company are achievable within 24 months. Within the first 90-day assessment the company would like to see a revenue increase over this quarter last year. The company is expecting to achieve these goals within 24 months. This is not an unrealistic goal. If the company were expecting to see profits within 90 days it would be considered an unrealistic goal. However, the company expects to begin showing marginal profits within 24 months. Because the company is not expecting to post profits for 24 months the company is leaving a little room for error. The CEO, the CIO, and the CFO expect it will not take the full 24 months to begin posting profits again. Works cited Jeffrey, M. & Norton, J. (2006). MDCM, Inc. Information Technology strategy synchronization. Kellogg School of Management. http://www.academia-research.com/filecache/instr/m/d/528577_mdcm_a_.pdf. May 8, 2011 Read More