Case Study I3
Johnson & Johnson: Building an Infrastructure
to Support Global Operations Analysis
Since 1935 Johnson & Johnson's credo embraces the idea of true customer service, giving the consumer the best product in a timely manner at a fair price It also states how the company must constantly "purchase new equipment" to keep up with times to create an honest "return" (Johnson & Johnson, 2005) Many businesses today would go a lot farther should they adopt such a business motto they could hold themselves and their employees to everyday. General Robert Wood Johnson and his two brothers began a company in 1885 that would go on to help revolutionize the surgical and medical fields with their innovative products. Johnson & Johnson, with approximately 109,900 employees, is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. Johnson & Johnson has more than 200 operating companies in 57 countries, selling products throughout the world. (PR Newswire 2005) , Besides making and marketing a great product, J & J has won numerous awards on being a top diversity employer, a top company for working moms , and a large contributor to organizations that support women and girls. (Johnson & Johnson, 2005) It is no wonder that such a large corporation would find it necessary, in today's high tech world of mass telecommunications, to solve the need for all of their businesses to have a cross-company infrastructure. J & J seeks to have all of it's companies sharing like product information, customer data, invoicing procedures and communication technology. Having one mind and one point of contact makes the business to business flow an easier activity for their customer as well as being a leader in global e-business. (Charles, 2000) Analysis
Management Practices & Independent Businesses
Structured as a business that "embraced operating company autonomy", J & J gained strong financial position in the market by "managing it's operating companies as independent businesses." (Ross, 1995) However this structure made it difficult for vendors to do one stop shopping with J & J as a whole. Executives tried to solve this problem by organizing the operating companies into groups Consumer, Pharmaceutical and Professional. In 1992 & 1995 Customer Support Center and J & J Health Care Systems were introduced respectively to work with US companies to specifically market J & J products to large managed care providers. (Ross, 1995) Even with the reorganization, they were not sharing data. The systems in place were not able warehouse all the data, and sell all that J & J offered to every U S company. J & J's Infrastructure
Networking and Computing Services (NCS) handled all the J & J global network and mainframe computing for all the businesses in the US . Every company had it's own independent IS responsible for systems planning development, operations and maintenance. (Ross,1995) Because of the various platforms and subnetworks, NCS could not handle systems management(Source?). J & J's European companies were managed from a centralized support team in Belgium that their network as a subset of J & J's global network(Source?). As Jos DeSmedt noted, "
we can automate the management more uniformly over the region from this central location." (Ross, 1995, p.157) Four problem areas were identified(Source?):
Too much time was spent infrastructure and not focusing on applications
Lack of technology standards was costly and inhibited services to businesses.
Lack of funding for building and enterprise wide infrastructure
Lack of data standards block the ability to share data across companies (Ross 1995) Setting Standards
J & J has multiple companies with multiple ways of defining the same sort of data(Source?). With...
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