Richter

In: Computers and Technology

Submitted By cbarbar
Words 1980
Pages 8
i. EXECUTIVE SUMMARY
Richter is planning global expansion in a fast changing market. Currently a leader in their market, they could easily lose their competitive advantage should their information system (IS) not effectively support the expansion plans.

The current IS is not fully centralized and therefore could limit the pace at which they can expand, consequently losing their competitive edge. There is a greater demand for Information Technology (IT) support which is only due to increase as the organization expands; considering the IT strategic plan covers a one year period and the organization of IT staff is not centralized, current structure is not maximizing the overall efficiency and effectiveness of the organization and does not support global expansion.

This study presents four options as potential actions to take to address the issues and create a system which will provide an environment to deliver an IT strategy aligned with Richter’s long term business strategy. The options include the following:

 Alternative #1 - Maintain the status quo
 Alternative #2 - Abandon the current SAP system and centralize IT with in-house built ERP to be used globally and outsource the IT support
 Alternative #3 - Decentralize IT
 Alternative #4 - Create a more centralized IT system with current SAP modules at all affiliates with 100% outsourced IT support

Alternative #4 is the recommended option; creating a more centralized IT system with outsourced support will allow Richter to plan and standardize their operations so that they can execute global expansion more efficiently and effectively, maintaining their competitive edge.

ii. CURRENT SITUATION
Richter is Hungary’s largest pharmaceutical company and has wholly owned subsidiaries in 14 countries generating revenue through sales and distribution and has manufacturing capabilities in Romania,…...

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