Giant Foods Case Analysis
Case Analysis of Giant Foods.
Introduction:
This case involves convergent technologies, a blending of traditional and cutting-edge business models and an alliance between an established pharmaceutical provider and a fledgling, Information Technology based, Drug marketing firm. Together, these two companies endeavored to create a patient education and prescription drug compliance program by deploying the deep well of customer data acquired by Giant Foods and the proprietary software of Elensys Care services, Inc. Elensys uses information from Giants pharmacy to send personalized letters, written on pharmacy letterhead but often paid for by pharmaceutical companies, that remind customers to refill prescriptions and pitch new products to customers with particular ailments. Giant first tested the feasibility of running a drug compliance program in-house but quickly determined that its’ Information System requirements were too overwhelming and decided to outsource the program to Elensys.
However, the backlash to this new initiative was negative and strong as dozens of angry customers called officials at Giant to complain. Privacy specialists said the practice raised new questions about patient confidentiality and also blurs the line between medicine and marketing."People assume that their medical information, including prescription information, is held in the strictest confidence," said Beth Givens, director of the Privacy Rights Clearinghouse, a nonprofit consumer group in San Diego. "When that information is shared with a third party, they're surprised and outraged."
This case exemplifies the privacy issues surrounding Giant Food's decision to outsource a prescription drug compliance program to Elensys. Ignoring for a moment the underlying profit motive of this program, approximately half of all patients stop taking their medication within the first six months of being prescribed, compliance programs remind patients to refill their prescriptions and help
Introduction:
This case involves convergent technologies, a blending of traditional and cutting-edge business models and an alliance between an established pharmaceutical provider and a fledgling, Information Technology based, Drug marketing firm. Together, these two companies endeavored to create a patient education and prescription drug compliance program by deploying the deep well of customer data acquired by Giant Foods and the proprietary software of Elensys Care services, Inc. Elensys uses information from Giants pharmacy to send personalized letters, written on pharmacy letterhead but often paid for by pharmaceutical companies, that remind customers to refill prescriptions and pitch new products to customers with particular ailments. Giant first tested the feasibility of running a drug compliance program in-house but quickly determined that its’ Information System requirements were too overwhelming and decided to outsource the program to Elensys.
However, the backlash to this new initiative was negative and strong as dozens of angry customers called officials at Giant to complain. Privacy specialists said the practice raised new questions about patient confidentiality and also blurs the line between medicine and marketing."People assume that their medical information, including prescription information, is held in the strictest confidence," said Beth Givens, director of the Privacy Rights Clearinghouse, a nonprofit consumer group in San Diego. "When that information is shared with a third party, they're surprised and outraged."
This case exemplifies the privacy issues surrounding Giant Food's decision to outsource a prescription drug compliance program to Elensys. Ignoring for a moment the underlying profit motive of this program, approximately half of all patients stop taking their medication within the first six months of being prescribed, compliance programs remind patients to refill their prescriptions and help