CASE ANALYSIS OF THE INFORMATION SYSTEM STRATEGEY AT NEEKLANTH

Case Analysis of the Information System Strategy at Neelkanth Drugs

Brandy Walden

King University BUSA 5610 LECT-0701A

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Table of Contents

Abstract................................................................................................................................3

Case Analysis of the Information System Strategy at Neelkanth Drugs.............................4

Introduction..........................................................................................................................4

The Challenge/s or Problem/s......................................................................................4

Data Analysis/Analysis of Issues/Approach................................................................4

Solutions, Recommendations and/or Action Plan.......................................................5

Results and/or Conclusion...........................................................................................5

References............................................................................................................................6

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Abstract

Neelkanth Drugs Pvt Ltd is one of the top leading pharmaceutical distributors in Delhi. The

company made plans for further expansion of the company. The company was leading small and

medium sized companies by implementing the enterprise resource planning system. Neelkanth

Drugs Pvt Ltd IT head prepared a report and presented it to the CEO. A cloud-based enterprise

resource planning system was the best solution compared to the other options available. The

CEO was skeptical because of the previous cloud experiences that resulted in disruptive and

unsatisfactory. The CEO was curious if the company would gain from choosing the cloud-based

ERP system or if the better solution would to look for other alternatives that would possible not

be as cost-effective but allows for less risk involved.

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 CASE ANAYLSIS OF THE INFORMATION SYSTEM STRATEGY AT NEELKANTH 4

Case Analysis of the Information System Strategy at Neelkanth Drugs

Introduction

Neelkanth Drugs Pvt. Ltd. Is a leading pharmaceutical distribution company in North

India. The company was incorporated on 19 April 1999. The company offers different

prescription and proprietary drugs, surgical, generics, vaccines, and wellness products. This

company serves consumers in India. The company had plans to expand to Punjab. The company

was on the verge of becoming the major global market and have a potential to grow at a

exponential rate.

The Challenge/s or Problem/s

One of the major problems was the bulk of expired medicine in the stock at the NDPL.

The system in use was completely manual which cause issues with employees not being able to

track stocks of the expired medicine within a timely manner. The manual system was considered

to be extremely undesirable for expansions. The expansions increased resources, even human

resources, which makes the resource management difficult. In turn, this resulted in huge profit

losses for the NDPL. Between 2007 through 2009 the company grew and introduced fifty new

IBM servers with data and applications that was previously on the same server that slow

performance of the system. Some of the other issues are that the business managers and the IT

managers have different objectives, have a lack of communication, and have little knowledge of

each other’s capabilities. The new cloud application, SaaS, had several bugs and problems from

day one.

Data Analysis/Analysis of Issues/Approach.

The head of IT brought a report to the CEO to move the company to cloud-based

systems. Between 2010 and 2011 the company achieved huge capital and operation IT

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 CASE ANAYLSIS OF THE INFORMATION SYSTEM STRATEGY AT NEELKANTH 5

expenditures; which allows for the decision to be made to research the possibility of cloud

computing.

Solutions, Recommendations and/or Action Plan.

The company decided to become one of the early adopters of the specific cloud-based

solution while implementing the cloud-computing software in phases. The application, SaaS, was

used into the retail format and was expanded to ten stores for trial. The action plan from the

company after faces several issues was to dump the cloud-based applications after six months

and to go back to purchasing software outright over the option of sourcing from the cloud. To

avoid this failure more reserch could have been reported and to wait longer before being an early

adoptor. NDPL could have used a vendor that was experieced in this type of large system instead

of one who was not prepared for this type of company.

Results and/or Conclusion.

The results are that Neelkanth Drugs had a failure of an expensive management system

through the cloud. The failure was caused by lack of preparation and implementation of the

system. The lack of the proper system analysis and involvement led to not meeting needs and

allowed for the system failure. The vendor was not able to meet the requirements of the company

by underestimating the size of the requirement. The company learned that with a cloud-based

system some of the technical failures and network issues are useful and the company and vendor

will know what to work on for future projects.

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 CASE ANAYLSIS OF THE INFORMATION SYSTEM STRATEGY AT NEELKANTH 6

References

Neelkanth Drugs Pvt Ltd. (n.d.). Retrieved May 5, 2019, from

https://www.bloomberg.com/profiles/companies/0557525D:IN-neelkanth-drugs-pvt-ltd

Routray, S., Nargundkar, R., Saini, S., & Saxena, R. (2014). Information System Strategy at

Neelkanth Drugs. Retrieved May 5, 2019, from https://hbsp.harvard.edu/download?

url=/courses/627691/items/W14392-PDF-ENG/content&metadata=e30=

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