Mis Mdcm Case Analysis

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Management Information Systems Term III

Group – 3, Subgroup-2

Section - F

MDCM Inc.
Case Study Solution

Submitted to Prof. Ashwani Kumar By Section – F, Group – 3, Subgroup-2 Avin Piparsania Vamshidhar Pasikanti PGP27347 PGP27390 Vikas Siddheshwar Vinay Karodia PGP27392 PGP27393

On 24th Mar 2012
1|Page IIM Lucknow

Management Information Systems Term III

Group – 3, Subgroup-2

Section - F

MDCM Inc. (A): IT Strategy Synchronization
You are a member of the MDCM executive team. Use the information given in this case to help solve this management crisis with the other executive team members in your group. Your team should define the overall corporate strategy for MDCM, the business goals matched to this strategy, & the related high-level IT objectives. Be prepared to present your recommendation to the MDCM corporate board

MDCM’s Overall Corporate Strategy
MDCM Inc. used to be a market leader in terms of market share (54%, 1985) but over the years the figure has deteriorated due to increased internal costs & intensive competition in the industry. The major strategic objective of the company is to boost profits by increasing productivity. This can be achieved with successful implementation of Information Technology. There is a requirement to stem the losses it is suffering due to competition & inefficiency. The other objective is to become a market leader in the medical product manufacturing industry. The company should invest in information technology which will add value to its products, increase market share & also increase profits recorded. The company should reduce its internal costs. This can be achieved through the identification of functional areas where information technology should be used for the reduction of costs. Such a strategy should be used to improve the efficiency & effectiveness in the company. At last the organization aims at increasing its market share. The following is an analysis to discuss about MDCM’s strategic focus & its current competitive position. Substitution of labor with IT Systems: MDCM Inc. can achieve competitive advantage by substitution of labor with information technology. The major problem which the company faces is the existence of custom systems that increases administration costs. As mentioned by Pat Perry, VP of Marketing & sales, there is an immediate requirement of online ordering & account management systems which would then increase the productivity. Also the systems would replace labors who are supposed to undertake such tasks & thus increase efficiency. Information Sharing: Information Sharing would be one of the ways which would improve services provided to customers. This would also affect the various departments of the firm by improving the quality of the products & thus meet the requirements of its customers. Cooperation with competitors: A shared It system with competitors would encourage cooperation among them as this would help them gain price power over their customers & would thus increase the selling prices of the products. As a result the higher prices would help the organization achieve higher profitability. Product Innovation: This would be one of the major factors required to achieve competitive advantage for the organization. Introduction of information technology would help production of products in a

2|Page

IIM Lucknow

Management Information Systems Term III

Group – 3, Subgroup-2

Section - F

much more efficient way with better quality & matching higher standards. Products would be better when compared to that of its competitors & would thus be potential substitutes. Reduced switching costs: The IT system implemented in the organization would help reduce switching costs as it would facilitate easier methods to recognize potential suppliers who may supply products at better prices. As a result the organization can achieve competitive advantage over its customers.

Matching business goals matched to the strategy,...
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