MDCM as One of the Biggest Contract Manufacturers of Medical Devices in the World - Case Study Example

MDCM (B) Table of Contents Overview 3 Twelve Projects and Initiatives 4 Unify Methodology and the Technical Standards 4 2. Consoli Data Centers and Networks 4 3. Outsource Nonstrategic IT Services 5 4. Standardise Server Hardware and Platforms 5 5. Implement Enterprise Resource Planning 5 6. Create Employee Intranet Portal 6 7.Manage The Supply Chain 6 8.Streamline Design Systems 6 9.Improve Collaboration System 7 10.Begin CRM/Create Data Warehouse 7 11.Implmenting E-Procurement System 8 12.Customer Self-Service Portal 8 The IT Projects Appropriate For MDCM 8 Creation of Portfolio Application Model Matrix and Evaluation of Each of the Projects 10 Explanation Of The Diagram: Portfolio Application Model Matrix 11 Sequence of Implementing the Initiatives 12 Works Cited 17 Overview MDCM, Inc is one of the biggest contract manufacturers of medical devices in the world. It was found that the biggest challenge for the CIO, Shawn Atkins and the CEO, Max McMullen of the company was to define and to prioritize the IT projects that can endorse MDCM’s strategic business goals. The company did not have much experience in executing the large IT initiatives. Therefore, the biggest challenge for the team was to locate an optimal portfolio of IT investments that could assist in balancing the risks and the returns and to align this initiative with the corporate strategy. In light of this fact, it was decided to alter the overall IT systems. The CEO and the CIO decided to present before the board 12 numerous potential projects. However, the members were to keep into consideration that they ought to accomplish the desired goal within short period of time (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) Twelve Projects and Initiatives The main goal of these set of projects according to the IT Portfolio Management (ITPM) team was to overhaul MDCM’s IT system in the period ranging thirty-six months. In total, twelve major potential projects and initiatives were identified. 1. Unify Methodology and the Technical Standards The main objective of the team was to eradicate innumerable standards as well as IT methodologies all over the country. It can be examined that this initiative would require all the IT professionals, contractors and consultants to be trained as per the new methodology. This project would therefore require three months (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) 2. Consolidate Data Centers and Networks Network consolidation leads to increased needs for storage consolidation. Some companies as well consolidate the data centers together with the intranets, traditional LANs and computing networks (Blade, “Introduction”). The company found it beneficial to consolidate the data centers to three locations and therefore shift the network of the company to a virtual private network (VPN). It was estimated that the savings from this project would be approximately $1.1 million and the time required for successively completing the project would be six months (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) 3. Outsource Nonstrategic IT Services The company had decided to outsource its nonstrategic services of IT such as hardware maintenance and help desk support. Therefore, the time required to implement the project was twelve months. 4. Standardise Server Hardware and Platforms The main objective of the company was to standardize the hardware and the platforms. The main benefits that the organisation receives on standardizing them include reduced cost of IT deployment and easy IT support and training (Gantz & Turner, “Standardisation”). It was found that this project would in general require three months (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) 5. Implement Enterprise Resource Planning There are many underlying benefits of ERP system to the company. The companies are capable of reducing the operating cost by the proper implementation of the ERP systems and the top management can have a combined view of sales, receivables and inventories simultaneously (ITC InfoTech, “About Us”). It was noted that the implementation of this project would require twelve months and the cost estimated was nearly $30 million (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) 6. Create Employee Intranet Portal The main objective of this project was to make the HR supervision mechanized and accessible for the self-service to the employees. It can be estimated that the project would require nearly three months (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) 7.Manage The Supply Chain The company decided to employ the supply chain management system that would require approximately twelve months and would cost the company a fee of $12.3 million (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) 8.Streamline Design Systems By implementing CAD system, the storage and the recovery of the data become easier (Westone, “Advantages of Using CAD”). However, the main objective of this project was to standardize Cadam and Catia software in organization. The total time required for this project was estimated to be three months (Jeffery, M & Norton, J. F. “MDCM, Inc. (B): Strategic IT Portfolio Management”) 9.Improve Collaboration System The main goal of this project was to team up the systems such as e-mails, discussion boards, and knowledge management application. Nevertheless, they were highly disparate systems and were also underutilized. It was noted that strong commitment from IT would be required to consolidate these systems. The minimum time required to implement this system can be four to five months (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) 10.Begin CRM/Create Data Warehouse In this project, the team members made an attempt to consolidate data of customers into a data warehouse. The cost estimated for the project was $15 million, the time taken to complete the project was estimated to be twelve months (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) 11.Implmenting E-Procurement System With an attempt to administer the internal purchases of the company, E-Procurement system was applied. The estimated time for implementing the project was six months (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) 12.Customer Self-Service Portal The main objective of implementing this project was to create a customer portal with the motive to reduce the cost associated with customer service. It was noted that this project would require approximately six months (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) The IT Projects Appropriate For MDCM From the brief description of each project, it can be analyzed that the twelve projects have been designed according to the needs of organization and the benefits that the company can gain in effectively implementing these projects. The main aspect to keep into consideration is that only those projects can be executed which can solve the problem that the company is confronting at this moment (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) Therefore, it can be analyzed that ‘unify methodology and technical standards’ can be implemented by the company. Although the project is quite costly in comparison to other projects, MDCM can avail numerous benefits from these projects in short period of time. In addition to this, it is highly suggestible for the company to implement the E-Procurement systems, standardization of server hardware & platform, creation of the data warehouse and consolidation of data center & network. By properly implementing these projects the company will be capable of managing its IT systems and therefore achieve higher profitability and growth (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) Creation of Portfolio Application Model Matrix and Evaluation of Each of the Projects Fig: Portfolio Application Model Matrix Explanation Of The Diagram: Portfolio Application Model Matrix The upper left grid of the Portfolio Application Model Matrix has the projects containing high value. However, these projects are difficult to implement and are riskier as well. This grid contains four projects namely ‘Manage the Supply Chain’, ‘Consolidate Data Center and Network’ ‘Implement Enterprise Resource Planning (ERP)’ and ‘Outsource Non Strategic IT Services’ The reason behind these projects in the upper left quadrant is that though these projects can accumulate greater benefit to the company, yet they are quite riskier to undertake. It is because of this reason, ERP has also been allocated to this quadrant (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) The projects having high risk and offering low value to the company is placed in the lower left quadrant of the matrix. ‘Begin CRM/ Create Customer Warehouse’ seems to be quite unattractive for the company thereby requiring a period of three years to implement. Therefore, this project has been allocated in lower left matrix (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) The projects belonging to upper right grid of the portfolio matrix are quite beneficial for MDCM. Four projects are assigned in this grid. The risk associated with these projects is less. ‘Unify Methodology and the Technical Standards’, ‘Implement E-Procurement System’, ‘Create Employee Intranet Portal’ and ‘Standardize Server Hardware and Platforms’ are the projects falling in this grid. Although these projects will require great deal of time and money, the company can gain huge benefits while implementing these projects (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) The projects that require funding from the management and do not appear to be attractive according to the current scenario of MDCM have been assigned to the lower right grid of the matrix. The risk associated with these projects is quite lower. The various projects are ‘Improve Collaboration Systems’, ‘Streamline Design Systems’ and ‘Customer Self-Service Portal’ (Jeffery, M & Norton, J. F., “MDCM, Inc. (B): Strategic IT Portfolio Management”) Sequence of Implementing the Initiatives MDCM needs to execute the projects according to its immediate requirements in order to manage its IT systems. Therefore, the table below helps to reveal proper understanding of the projects sequence for the execution according to the time taken and the benefits that can be gained by implementing them. There are three columns in the table. The first column lists the projects that the company needs to implement. The second column lists the time taken for the projects to implement and the third column describes the benefit that the company will obtain by executing the project. Projects Time Required Related Benefits 1.Unify Methodology and the Technical Standards 3 months It can be recommended that MDCM should execute this project since the company can eradicate innumerable different standards as well as IT methodologies. The time that this project is taking is relatively lower in comparison to the benefits that it provides. 2. Standardize Server Hardware and Platforms 3 months Then, the company can consider executing this project in order to make the hardware server standardized and to enhance the efficiency of the overall organization. 3. Implement E-Procurement System 6 months The company can execute this project after having implemented ‘Standardize Server Hardware and Platforms’ project because the project will provide the company with greater benefits and therefore it is relatively less risky. 4. Customer Self-Service Portal 6 months After having executed the E-Procurement system, the company can consider executing Customer Self-Service Portal since it will reduce the overall expenses of MDCM. 5. Consolidate Data Center and Network 6 months Execution of this project after Customer Self-Service Portal seems to be appropriate because it can help the company to save $1.1 million. 6. Streamline Design Systems 3 months After having implemented Consolidate Data Center and Network, the company needs to execute this project according to the demands of the company and the resultant benefits that the project provides. 7. Create Employee Intranet Portal 3 month MDCM needs to consider executing Create Employee Intranet Portal because it can assist in enhancing the customer service and reduce the overall cost. 8. Improve Collaboration Systems 3 months This project needs to be executed immediately after ‘Create Employee Intranet Portal’ because of the underlying benefits that it offers. 9. Implement Enterprise Resource Planning 12 months The case study makes it apparent that this project provides huge benefits. However, the company cannot afford to execute projects that require huge time. Therefore, this project has been given less priority in executing. 10. Manage the Supply Chain 12 months This project also offers MDCM with greater benefits. However, it requires considerable amount of time to execute this project. Therefore, it has been given little priority in implementation phase. 11. Outsource Nonstrategic IT Services 12 months After having implemented ‘Manage the Supply Chain’, it is significant for MDCM to implement ‘Outsource Nonstrategic IT Services’ in order to enhance the efficiency of the overall operation. 12. Begin CRM/ Create Data Warehouse More than 12 months It is to be noted that this project requires huge capital. In addition to this the project seems to be quite costlier and risky. Therefore, MDCM must consider before executing this project at the end. Fig: Sequence of Implementing the Projects Works Cited Blade. “Introduction”. December 10, 2011. WhitePaper, 2009. . Gantz, John. & Turner, Vernon. “Standardisation”. December 10, 2011. Summary, 2002. . ITC InfoTech. “About Us”. December 10, 2011. Enterprise Resource Planning, 2011. . Jeffery, Mark & Norton, Joseph. F. MDCM, Inc. (B): Strategic IT Portfolio Management. Kellogg School of Management, 2006. Westone. “Advantages of Using CAD”. December 10, 2011. Furniture, No Date. Read More