Essay on Mdcm, Inc. (a): It Strategy Synchronization

3511 Words Apr 13th, 2013 15 Pages
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KEL170

MARK JEFFERY AND JOSEPH F. NORTON

MDCM, Inc. (A):
IT Strategy Synchronization

Introduction
MDCM, Inc., one of the world’s largest contract manufacturers for medical devices, had just announced its fifth consecutive quarterly loss. The firm posted revenues of $1.12 billion with net losses of $33 million for the second quarter of 2002. For Max McMullen, this was yet another agonizing episode since he took over as CEO two years earlier. Despite major company reorganizations, his promises to the shareholders for operational and cost improvements had not been realized. Given the company’s lackluster record, the next twelve months were critical in proving that these promises could indeed be
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If we don’t do our due diligence we will never get this right. This is not the time to just blindly cut IT spending. I need us to work together as a team for the benefit of MDCM. We clearly need to align our IT initiatives with our corporate strategy. I need your help to understand the primary strategic business goals and how IT should support these goals. I think we should do a daylong session and really hammer out the details.”

MDCM, Inc.
Medical device contract manufacturing is our business. That’s why we named the firm MDCM. —MDCM, Inc. chairman and CEO Max McMullen, 2001 Annual Report

For more than thirty years, MDCM, Inc. had specialized in medical device contract manufacturing and assembly, clean room medical injection molding, and the design and fabrication of specialty assembly equipment for medical device manufacturers. Although the firm’s corporate domicile was in the United States, it had nineteen foreign subsidiaries with locations in thirty-five cities. Its U.S. arm, MDCM Corp., was the oldest and largest subsidiary and was an FDA-registered firm. It had facilities in eight states, including New Jersey, Ohio, Colorado, and California. Founded in 1972, the company had a staff with decades of experience in the design and manufacture of medical products. The company’s focus was to provide an end-to-end package of medical device contract manufacturing services. As a pure contractor in the business, it did neither research and

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