Information Technology Management Case Study

Managing Information Resources Angelo H. Catubig

A Case Study CBA Program Batch 12

Given:

Mercure Drug Company

– Global Pharmaceutical Firm

– Fortune Most Admired firm

– Cumulative Annual Growth Rate: 15% for five years

– 48,000 employees

– 160 countries, 8 R&D laboratories and 30 Global MFG and Supply sites

– 4 divisions

o Pharmaceutical – 57%

o Consumer Health – 24%

o Animal Care – 11%

o MFG – 8%

– Focus Market: Asia Pacific (67% of its consolidated revenue)

– 3 of Mercure's blockbuster drugs will lose patent in 24 months

– Strategy is to form alliances with other drug companies and buy out potential competitors

Projects Details Capital ROI Risks/Benefits

A Sales Force Automation 8.2 M 46 months Needs standardization which could affect over-all sales

B Customer Relationship Mgt. 6.0 M 72 months Innovation and no competitor has ventured into this strategy

C Customer Health internet Data Mine 4.7 M 48 months at most Only risk is that web users are very sensitive about information being collected and may create backlash from activist shareholders

D Animal Health: WOM 3.9M 76 months Cheapest but very complicated and would incur additional logistic costs, could contribute to at least 18% growth in the coming years

E Global and MFG Supply:JIT Concept 8.0 M 72 months Can significantly improve cash flow, but needs to implement a major change in the organization

Required :

2 projects that I will sponsor

In order to maintain competitiveness of Mercure we need to consider the following aspects in order to come up with the best IS strategies:

• The company will focus on Asia Pacific market since majority of its sales are happening in this region

• APAC includes China, SEA and other emerging countries which could be considered as significant markets with the greatest opportunities for growth

• Though