Richter Information Technology
Executive Summary
Richter is the biggest pharmaceutical company in Hungary and is preparing a global expansion in one of the quickest alternating markets- the pharmacy industry. The firm currently belongs to the worldwide market leaders and faces the chance of losing their top market position. As a result their current information system (IS) has to successfully assist the firm’s expansion plans in order to guarantee a top market leader position.
Currently the IS is not completely centralized and limits the speed at which Richter can expand. Obviously a significant require for information technology (IT) support exists, due to the organizational expansion. Currently the IT strategic plan covers a one-year stage, IT workers are not centralized and the present constructions are not exploiting overall efficiency and effectiveness of Richter.
This case analysis describes four possibilities, which Richter could take in order to develop a system that can supply an IT strategy associated with the firm’s long-term business strategy. The first alternative is simply to maintain the current status quo. The second option recommends developing a decentralized IT system. The third option could be to end the present SAP system and centralize IT with an in-house built ERP system which can be used globally and simply outsource the IT support. The last alternative, which this case analysis discusses, is that Richter should establish a more centralized IT system with all present SAP modules for all global members and have a complete outsourced IT support.
This case analysis proposes option four, because a more centralized IT system with global outsourced support can allow the company to set up and regulate their operations so that Richter can complete its global expansion plan more efficiently and effectively and at the same time preserve their competitive advantage.
Richter’s Current Situation
Richter is Hungary’s biggest pharmaceutical firm and consists of
Richter is the biggest pharmaceutical company in Hungary and is preparing a global expansion in one of the quickest alternating markets- the pharmacy industry. The firm currently belongs to the worldwide market leaders and faces the chance of losing their top market position. As a result their current information system (IS) has to successfully assist the firm’s expansion plans in order to guarantee a top market leader position.
Currently the IS is not completely centralized and limits the speed at which Richter can expand. Obviously a significant require for information technology (IT) support exists, due to the organizational expansion. Currently the IT strategic plan covers a one-year stage, IT workers are not centralized and the present constructions are not exploiting overall efficiency and effectiveness of Richter.
This case analysis describes four possibilities, which Richter could take in order to develop a system that can supply an IT strategy associated with the firm’s long-term business strategy. The first alternative is simply to maintain the current status quo. The second option recommends developing a decentralized IT system. The third option could be to end the present SAP system and centralize IT with an in-house built ERP system which can be used globally and simply outsource the IT support. The last alternative, which this case analysis discusses, is that Richter should establish a more centralized IT system with all present SAP modules for all global members and have a complete outsourced IT support.
This case analysis proposes option four, because a more centralized IT system with global outsourced support can allow the company to set up and regulate their operations so that Richter can complete its global expansion plan more efficiently and effectively and at the same time preserve their competitive advantage.
Richter’s Current Situation
Richter is Hungary’s biggest pharmaceutical firm and consists of