INFORMATION SYSTEMS FOR MANAGERS RICHTER: INFORMATION TECHNOLOGY AT HUNGARY’S LARGEST PHARMA Summary: Richter is the largest pharmaceutical company in Hungary and is considered to be one of prominent producers of generic drugs and generic active pharmaceutical ingredients (APIs). The company is a leader in the global market, but currently it is facing a lot of challenge from other pharmaceutical companies and because of which they can lose their competitive advantage in the pharmaceutical industry. And to cater to this problem they are planning for a global expansion in IT. Currently their information system (IS) is not fully centralized and this is causing a lot of problem in their expansion and cross-company …show more content…
* Decentralization may also limit the pace of growth of the organization and may affect its position as a market leader. 3. Centralized IT system for the affiliates with the rollout of new technologies outsourced – * Centralization of the core processes and standardizing of the IT infrastructure would leverage technology expertise across the organization and the affiliates. It would also enable cost effective contracts from the software suppliers and would facilitate global business processes. * With Richter now aiming for an international expansion, centralization of the core processes is essential for smooth expansion and their corresponding integration into the system. * Also a centralized system would enable the IS to be better aligned with the business strategy of the organization. * Centralization will provide a consistent flow of information across the organization and the affiliates and better structure and control to this fast growing organization. * Centralization would also ensure better involvement of the business team in the decision making for the IT matters. * Employing third party for rolling out the new technologies (once they are successfully implemented at a particular location) would reduce the pressure on the IT structure and the central IT team. This would allow them to focus more on the projects which may provide breakthrough for the
There is an opportunity for upgrading the technology in the IT infrastructure as a result of the extensive research and development investment that the organization is considering. AEnergy has such a unique product, that there is little in
This allows the industry to be better connected and function as a whole to allow for best productivity, volume, revenue, and rates.
Rock Solid Industrial Parts, Inc. (RSI) is not well prepared to expand their business to cover the entire west coast and mountain states. In case of RSI, the company is not very technology oriented. Most of the works are being done with desktop computers. Many processes depend heavily on paper forms. Excel and Quicken are only two computer programs being used in the company. The company has an undeveloped, simple and basic form of online presence and a plain old telephone service system for business activities. Besides, most of the employees are conservative and older. They don 't want to try new technology, social platform and services such as Facebook or SMS text message that could be used for faster
IT support is the vital part for this improvement. ‘Fast forwarding’ must arrange software team to establish and maintain tracking system. IT outsourcing is an appropriate choice for organisation.
Modify the organizational structure to facilitate collaboration among the company's various regional and local offices and central office; and
Company has four key line of business – Internet, mobile, landline, and cable TV service. Each one line of business had own individual divisional CIO with no central leadership. Each division CIO had their own system and functioned based on how it affects its department only. Thus, providing no coordination between other divisions and unable to ensure that the decision made in one division might affects negatively to rest of the division or organization as a whole. The new VP suggested to divisional CIOs to unify the systems and management which was a no go from the leaders. DIOs were so imbedded with individualism that the unified system and management seemed to them loosing the power and control which led for rejection. To implement a centralized system which delivers new products/services, company’s value and fast customer service Vince was forced to fire four CIOs who thought the centralized system will not work and tried to sabotage the implementation process.
Such is the change that is difficult for all entities to keep up with it - even for Tech companies is a heavy burden that limits and endanger their growth. This raises the question, “does our business needs to have in-house IT infrastructure or can be outsourced?”
The current IT infrastructure is strong enough to meet the current operational needs of the organization, but is constructed with a combination of commercial-off-the-shelf hardware/software and home developed middleware with no comprehensive documentation available. Even though policy management, standardization and documented procedures needed a lot of work, there were some operational practices such as password management, business continuity, disaster recovery, and data backup and storage that seem to work. VTBC was able to continue processing orders if there was a failure in network conductivity. VTBC’s e-commerce applications were hosted outside of Vermont which gave them a position to capitalize on the nation’s internet infrastructure. There are seven veteran IT employees that possess a lot of the current working knowledge of the IT infrastructure and successful procedures but are limited in practical IT applications to make the infrastructure more efficient. With the implementation of various hardware and software applications, change control is not implemented or executed. Vermont Teddy Bear Company successfully operates three different product brands, using four different communication channels and but each of those channels is supported by different software. Vermont Teddy Bear Company utilized the “best of breed” approach for software acquisition. This method allowed the organization to
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
Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the
The decision to outsource the critical infrastructure platform of an enterprise, which often includes support for enterprise applications essential for the business ot function, is one with long-range, strategic implications. The role of the CIO is quickly changing to be a strategist first and technologist second, concentrating on how IT infrastructure can be successfully used for aligning IT resources to strategic plans and programs. This decision to outsource a critical component of the overall architecture needs to balance the cost reductions possible on the one hand and the potential to augment internal expertise on the other. This is a complex decision that needs to take into account the business case, cultural factors, IT-based technology factors, and managerial implications as well. The intent of this analysis is to provide guidance to CIOs who need to make this decision and emerge with a stronger IT infrastructure capable of getting their enterprises to their goals and objectives.
Secondly, he must make a recommendation on whether the current IT organizational chart should remain centralized or not, and how this will affect the overall business.
Various previous studies viewed outsourcing concept and have tried to explain its fact including challenges, risks, motivation, and determinates. Where, the decision of outsourcing is usually seen as logical and rational decision by senior management with prediction to gain various benefits and avoid the expected risks. So, both side of outsourcing should be noticed and taken into considerations when deciding to take any outsourcing decision, below explanation of these opportunities as well as risks associated with IT outsourcing, according to (Kremis, 2006; Mui, 2003; sell et al., 2004):
is the attempt of this paper to explain outsourcing , it's pro's and con's and