Information System Strategy at Neelkanth Drugs Harvard Case Solution & Analysis

Key Problems

Although, it is evident that the NDPL had enjoyed a huge success and increased its profitability since it had converted its operations from manually based to an automated software based system, but it was still facing a number of problems in improving its production and the operational structure of its retail outlets. The company had expended huge amounts on the installation of cloud technology to control their internal organizational departments and the capabilities of its retail outlets. Executives of the company thought that cloud technology would help the organization to leverage computing resources without investing huge amounts on the development of the infrastructure. Through cloud technology, the company would only purchase services based upon the concept of pay-per-usage, which would be controlled and maintained by the cloud developer through the internet technology.

The management had decided to adopt the cloud technology for their organization and initially it had sourced the software applications (SaaS) and NaaS, through the cloud and planned to shift the hardware in the next phase. From the very first day of the implementation of this new technology, the company had started facing a number of problems, i.e. the new program was unable to read some barcodes and failed to generate invoices, which had made the customers annoyed and hurts the company’s brand image. However, the well-motivated store managers were expecting that the software would perform better in the future, but it was mere a thought because on the next day the software had stopped working, while a large number of customers were standing in the store. The network refused to support the store processes and totally crashed down, which had let the managers and other store staff to record the invoices and bills manually. The problem was increasing day by day and at last the company had declared the integration of cloud technology into its organization as a huge failure. Beside the heavy financial losses associated with the experimentation of cloud technology, the company had also lost a huge customer base and its brand image was negatively affected in the market.

All the departments of the NDPL were using automated systems for the execution and recording of their work, but the major problem was that the existing system of the company was a standalone system with very little integration between different departments and the company’s operations were mostly information centric, Therefore, information sharing took place between various departments of the company and each of them depends upon the information provided by the other department for the successful execution of their work. Therefore, it has been observed that if an error occurred even at some isolated point, even then it could disrupt the functionality of the whole supply chain of the company and could cause huge losses. Another problem that the company faced with the existing systems was that most of the work was performed by the employees through applying certain manual procedures, i.e. recording and sorting the data according to their respective departments, physical inventory count and confirmation of the orders, physical security checks to ensure that no theft had occurred. So, a high level of manual interventions in the value chain could also cause a number of errors, which could also affect the company’s bottom line. Therefore, it has been suggested that the company should implement a competent ERP system, which could integrate data throughout the value chain of the organization and also provide a suitable platform for the integration of external data with the internal data of the organization, which could reduce the human intervention and the risk of potential errors due to weak communication among...................

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