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MDCM, Inc. (A)

MDCM, Inc. (A): IT Synchronization Strategy

Question no 1: Articulate a Corporate Strategy based on evidence

from the case Answer: MDCM used following corporate strategies to carry out its business globally:

Consolidation Strategy

MDCM Inc. used the consolidation strategy primarily by growing into the geographical areas

such as US, France, UK etc. The company was aimed to serve the customers in a best way

delivering quality products with absolute commitment. They made several acquisitions targeting

the non US based companies that had competencies especially in contract manufacturing to help

serve the local customers. Moreover, the company became more efficient by outsourcing all the

inbound and outbound logistics, thus saving the cost and serving the customers in a better way.

McMullen ensured that all the outsourcers hired were the ex-MDCM employees and had been a

part of the logistics group for ensuring sincerity and efficiency at the same time.

Global Strategy

MDCM Inc. being a US based company globalized by acquiring firms in all the major regions of

world other than US and started using the global strategy by making its first acquisition of a UK

based company in 1987, and made more than 20 acquisitions till mid 1990’s.

E-Business Strategy

Keeping pace with the emerging global economy and the e-business trends MDCM felt serious

flaws in its IT system. And to overcome the inaccurate forecasting, scheduling, inventory and

supply chain problems and to make its business more cost effective it needed to modify its IT

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MDCM, Inc. (A)

system. For the purpose Atkins made high level snapshots of the IT systems in the entire major

departments of MDCM, and developed a solid proposal to make recommendations for the

identified IT problems.

Question no 2: Define a set of business goals and high level IT objectives

Answer:

Business Goals:

The main goals of MDCM as defined in the case study can be described as:

To deliver quality products with absolute commitment

Ensure assembly on time

Surveying local customers efficiently

To further relationships with the customers

Becoming more globally focused

To increase the working capital

To make the organization cost efficient

Making customers do the marker’s job by the use of self-service technologies

Efficient forecasting

To align IT initiatives with the corporate strategies

Provision of end to end package of medical device contract manufacturing services

To produce highly customized versions of medical equipment tailored to the customer

needs.

IT Objectives:

Atkins, a graduate of Kellogg School of Management realized the need for including the top

executives in IT planning and for setting IT objectives. Atkins observed bloated cost from

seriously flawed IT practices. Following IT objectives were established for boosting the profits

of MDCM:

Implementation of major accounting IT system was needed

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MDCM, Inc. (A)

The lags in information flow between the different departments such as purchase, supply,

logistics etc. should be removed, so that the information could move smoothly between

the departments.

Different systems should be introduced for each type of financial calculation

Sales forecast pricing, invoicing all should be done using accurate information from the

different departments

IT systems for logistics and transportation should be introduced

Standardized infra-structure to be introduced for intra organizational emailing. Such as

POP mails and Microsoft exchange etc.

Error free networking to be introduced

Proper data base to be maintained for all the departments

To become the IT leader amongst companies of its kind.

Question no. 3: Align Business Goals and IT Objectives

Answer:

Alignment of the Business goals and IT objectives:

Business goals can be aligned with the IT objectives in the following way:

To deliver quality products with absolute commitment

This business goal can be fulfilled using IT objectives in that the IT systems should be used for

delivering the accurate information about what the customer wants and where. This can be done

by the introduction of efficient networking systems connecting the customers, company and the

suppliers etc., so that the company might have the timely and accurate information.

Ensure assembly on time

By the use of efficient IT systems MDCM can ensure the assembly and delivery on time.

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MDCM, Inc. (A)

Surveying local customers efficiently

MDCM can use the data base maintained o provide extra services to maintain the brand loyalty

of the customers. This can be done by providing discounts, coupons etc. to the frequent

customers who can be identified using the data base maintained by MDCM.

To further relationships with the customers

The data base maintained by MDCM can be used to maintain and keep the loyal customers as

described above.

Becoming more globally focused

MDCM can use the IT systems and the strong networking of the IT systems to better serve the

customers both locally and globally. By the use of efficient IT systems the cost, demand, pricing,

discrepancies can be removed and an error free global delivery of the products can be ensured.

Efficient forecasting

IT systems can be used for the efficient forecasting of the future needs of the customers

according to the trends that can be generated using the data maintained with the company.

To produce highly customized versions of medical equipment tailored to the customer

needs

Using the IT systems MDCM can take the customized orders online from its customers both

locally and globally. The error free IT system can ensure the efficient delivery of the right

products tailored to the needs of the customers.

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MDCM, Inc. (A)