MDCM, Inc. (A)
MDCM, Inc. (A): IT Synchronization Strategy
Question no 1: Articulate a Corporate Strategy based on evidence from the case An sw swer er : MDCM used following corporate strategies to carry out its business globally: Consolidation Strategy MDCM Inc. used the consolidation strategy primarily by growing into the geographical areas such as US, France, UK etc. The company was aimed to serve the customers in a best way delivering quality products with absolute commitment. They made several acquisitions targeting the non US based companies that had competencies especially in contract manufacturing to help serve the local customers. Moreover, the company became more efficient by outsourcing all the inbound and outbound logistics, thus saving the cost and serving the customers in a better way. McMullen ensured that all the outsourcers hired were the ex-MDCM employees and had been a part of the logistics group for ensuring sincerity and efficiency efficiency at the same time.
Global Strategy MDCM Inc. being a US based company globalized by acquiring firms in all the major regions of world other than US and started using the global strategy by making its first acquisition of a UK based company in 1987, and made more than 20 acquisitions till mid 1990’s.
E-Business Strategy Keeping pace with the emerging global economy and the e-business trends MDCM felt serious flaws in its IT system. And to overcome the ina ccurate forecasting, scheduling, inventory and supply chain problems and to make its business more cost effective it needed to modify its IT
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MDCM, Inc. (A) system. For the purpose Atkins made high level snapshots of the IT systems in the entire major departments of MDCM, and developed a solid proposal to make recommendations for the identified IT problems.
Question no 2: Define a set of business goals and high level IT objectives An swer : Business Goals: The main goals of MDCM as defined in the case study can be described as:
To deliver quality products with absolute commitment
Ensure assembly on time
Surveying local customers efficiently
To further relationships with the customers
Becoming more globally focused
To increase the working capital
To make the organization cost efficient
Making customers do the marker’s job by the use of self -service technologies
Efficient forecasting
To align IT initiatives with the corporate strategies
Provision of end to end package of medical device contract manufacturing services
To produce highly customized versions of medical equipment tailored to the customer needs.
IT Objectives:
Atkins, a graduate of Kellogg School of Management realized the need for including the top executives in IT planning and for setting IT objectives. Atkins observed bloated cost from seriously flawed IT practices. Following IT objectives were established for boosting the profits of MDCM:
Implementation of major accounting IT system was needed
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MDCM, Inc. (A)
The lags in information flow between the different departments such as purchase, supply, logistics etc. should be removed, so that the information could move smoothly between the departments.
Different systems should be introduced for each type of financial calculation
Sales forecast pricing, invoicing all should be done using accurate information from the different departments
IT systems for logistics and transportation should be introduced
Standardized infra-structure to be introduced for intra organizational emailing. Such as POP mails and Microsoft exchange etc.
Error free networking to be introduced
Proper data base to be maintained for all the departments
To become the IT leader amongst companies of its kind.
Question no. 3: Align Business Goals and IT Objectives An swer :
Alignment of the Business goals and IT objectives: Business goals can be aligned with the IT objectives in the following way:
To deliver quality products with absolute commitment This business goal can be fulfilled using IT objectives in that the IT systems should be used for delivering the accurate information about what the customer wants and where. This can be done by the introduction of efficient networking systems connecting the customers, company and the suppliers etc., so that the company might have the timely and accurate information.
Ensure assembly on time By the use of efficient IT systems MDCM can ensu re the assembly and delivery on time.
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MDCM, Inc. (A) Surveying local customers efficiently MDCM can use the data base maintained o provide extra services to maintain the brand loyalty of the customers. This can be done by providing discounts, coupons etc. to the frequent customers who can be identified using the data base maintained by MDCM.
To further relationships with the customers The data base maintained by MDCM can be used to maintain and keep the loyal customers as described above.
Becoming more globally focused MDCM can use the IT systems and the strong networking of the IT systems to better serve the customers both locally and globally. By the use of efficient IT systems the cost, demand, pricing, discrepancies can be removed and an error free global delivery of the products can be ensured.
Efficient forecasting IT systems can be used for the efficient forecasting of the future needs of the customers according to the trends that can be generated using the data maintained with the company.
To produce highly customized versions of medical equipment tailored to the customer needs Using the IT systems MDCM can take the customized orders online from its customers both locally and globally. The error free IT system can ensure the efficient delivery of the right products tailored to the needs of the customers.
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MDCM, Inc. (A)
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