IT Strategy Synchronization

MDCM, Inc. (A) Shreetam Naik

-Apply concepts from the strategic frameworks we have discussed to analyze MDCMs strategic focus and current competitive position. The following is an analysis to discuss about MDCMs strategic focus and its current competitive position. This analysis has been developed using Porters five forces. Substitution of labor with IT Systems One of the important ways through which MDCM Inc. can achieve competitive advantage is 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, the vice president of marketing and sales, there is an immediate requirement of online ordering and account management systems which would then increase the productivity of the organization. Also the systems would replace labors who are supposed to undertake such tasks and thus increase efficiency. (Mark Jeffrey) 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 and 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 and 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 much more efficient way with better quality and matching higher standards. Products would be better when compared to that of its competitors and 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. 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 and intensive competition in the industry. From the above analysis it can be observed that the five forces of Porter are intensive.

IT Strategy Synchronization
MDCM, Inc. (A) Shreetam Naik

The organization can have turning point at this moment if it implements the new suggested Information System. -What are the companys key business strategy objectives, according to the case? 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 and 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 and 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 and effectiveness in the company. At last the organization aims at increasing its market share. -What does the company need to do to align its Information Systems, organizational and business strategies? The company needs to select a core team of IT leaders which will provide changes to overhaul the current IT systems. They need to look into areas in the company where IT systems have resulted to huge lags in the information flow. Also they must focus on proper implementation of IT projects to reduce the maintenance costs. Manufacturing of the products can be efficiently carried out with the implementation of the new system. The system can be used to keep a track of the processing of products status of the suppliers, so the facilities can provide finished product on time. Initiatives such as Horizon 2000 should be carried out on a regular basis. Employee engagement events should be encouraged to boost motivation among employees. Regular training sessions should be organized within the firm to increase the familiarity of IT systems among the employees. Another area of concern is to integrate different legacy systems across different locations for each module such as sales, finance and material. Also emails need to have standard infrastructure. In order to implement the changes successfully, there is need of coordination the top executives in the information technology strategy and planning, as said by Shawn Atkins, CIO MDCM Incorporated. (Mark Jeffrey) -What structural changes need to be made to the IS function (e.g., governance, organization) to implement the necessary strategies? IT governance is used to ensure that decisions about IT investments should be made in a way that maximizes business value, minimizes risk, and complies with all regulatory requirements. (Symon, 2005) Making right decisions and implementing them is one of the major changes that

IT Strategy Synchronization
MDCM, Inc. (A) Shreetam Naik

should be undertaken. The following is a list of structural changes and modifications that should be undertaken to implement the necessary strategies by the organization. -Formation of core team of IT leaders (Weill, 2004) -Managing project and project requirements better by performing efficient requirement analysis -Setting proper IT standards -Integrating different IT systems within the organization -Developing capability to access information across subsidiaries -Better planning and scheduling across projects -Information Technology should be given more importance to bring in change -Regular meeting sessions between the technical team and the management

Bibliography Mark Jeffrey, J. F. (n.d.). IT Strategy Synchronization. Kellog School of Managemnt, 17. Symon, C. (2005, November). IT Strategy Maps: A Tool For Startegic Alignment. 13. Weill, P. (2004, March). Don't Just Lead, Govern. MIS Quarterly Executive, 17.