This assessment item relates to the unit learning outcomes as in the unit descriptors.

This assessment covers the following LOs.

LO1 Adapt information systems to strategically achieve organisational goals and be able to

design, develop and manage IT systems implementation to achieve Business IT Alignment.

LO2 Develop an IT Plan that designs, implements, and manages the technology supporting these

information systems including computing devices, storage, and processing (both systems

processing and application processing).

LO3 Identify, synthesize, and model individual functions of a database system to be used for

organization data management and decision making.

LO4 Apply appropriate eCommerce or mCommerce business operations and activities that

contribute to effective business productivity.

LO5 Appraise an organization’s competitive position by applying standards approaches and

analyse activities/issues in recruitment, employment relations and performance management and

explore emerging business trends through study of published research work.

Instruction

In this assignment, a scenario is presented in the form of a description of a company. Based on

your understanding on the scenario, you are asked to write a report answering the questions at

the end of this assignment.

Case Study

Abbott Laboratories develop, manufacture, and sell a broad and diversified line of health care

products. Abbott has product lines of branded generic pharmaceuticals, diagnostic systems and

tests, pediatric and adult nutritional products (including well-known brands such as Similac and

PediaSure), and medical devices for the treatment of cardiovascular diseases, including diabetes

care products for people with diabetes, neuromodulation devices for chronic pain and movement

disorder management. The US accounts for about 40% of company's total sales. Abbott was

founded in 1888 by physician and drug store proprietor Dr. Wallace C. Abbott. With activities

ranging from filling baby bottles to making generic medications and cardiovascular devices,

Abbott Laboratories is a diverse health care products manufacturer. Its cardiovascular and

neuromodulation segment makes products for cardiac rhythm management, electrophysiology,

and other areas of cardiovascular care. Abbott's diagnostics division makes laboratory testing

systems and point-of-care tests. The nutritional products division makes such well-known brands

as Similac infant formula and Ensure supplements. Abbott also sells branded generic medicines

(including gastroenterology and women's health products) in emerging markets and makes the

FreeStyle diabetes care line. Abbott operates in four reportable segments: Diagnostic Products,

Medical Devices, Nutritional Products, and Established Pharmaceutical Products. The

Diagnostics Products (more than 35% of total sales) makes laboratory systems that screen and

diagnose for cancer, cardiovascular disease, fertility, and infectious diseases, among others. It
also makes rapid diagnostics systems for infectious diseases and other conditions; point-of-care

testing systems; molecular diagnostics for genetic (DNA and RNA) and genomic testing; and

laboratory informatics and automation tools. A global leader in cardiovascular product sales,

Medical Devices segment brings in about 35% of total sales. It researches and manufactures

devices in the areas of cardiac rhythm management, heart failure, electrophysiology, vascular

disease, and structural repair, as well as neuromodulation devices to treat movement and chronic

pain disorders. Products include Assurity and Endurity pacemakers, MitraClip valve repair

systems, XIENCE drug-eluting stents, and TactiCath and Navitor transcatheters. The Nutritional

Products segment (around 20% of sales) sells pediatric and adult formulations around the world.

Brands include Similac, Ensure, Isomil, Glucerna, PediaSure, and Zone Perfect. The segment

also provides nutritional products used for enteral feeding in health care facilities. Abbott's

Established Pharmaceutical Products (over 10% of sales) are branded generics marketed in

emerging markets. These include gastroenterology drugs (such as Creon, Duspatal, and Heptral),

women's health products (Duphaston and Femoston), cardiovascular and metabolic offerings

(Lipanthyl, Teveten, and Synthroid, among others), pain and central nervous system medications

(Serc, Brufen, and Sevedol), and respiratory drugs and vaccines (Influvac, Biaxin, Klacid, and

Klacirid). The company had a revenue of $43.1 billion, a 24% increase from the previous year's

revenue. The increase in total net sales in 2021 reflects volume growth across all of Abbott's

segments. In 2021, Abbott's COVID-19 testing-related sales totaled approximately $7.7 billion

led by combined sales of approximately $6.6 billion related to Abbott's BinaxNOW, Panbio, and

ID NOW rapid testing platforms. In 2021, the company had a net income of $7.1 billion, a 57%

increase from the previous year's net income of $4.5 billion. The company's cash at the end of

2021 was $9.8 billion. Operating activities generated $10.5 billion, while investing activities
used $2 billion, mainly for acquisitions of property and equipment. Financing activities used

another $5.5 billion, primarily for proceeds from stock options exercised. Abbott Park, Illinois-

based Abbott has more than 90 manufacturing plants, as well as R&D facilities, in countries

around the globe including China, Colombia, India, Singapore, Spain, and the UK. The

company's products are sold in more than 160 countries, allowing the company to reduce

dependence on any specific market. Abbott earns about 40% of its sales in the US. Other major

markets include Puerto Rico, Switzerland, Ireland, the Netherlands, Costa Rica, Singapore, and

Malta, all of which accounting for over 60% of the revenue. In late 2021, Abbott acquired Walk

Vascular, LLC, a commercial-stage medical device company with a minimally invasive

mechanical aspiration thrombectomy system designed to remove peripheral blood clots. Walk

Vascular's peripheral thrombectomy systems will be incorporated into Abbott's existing

endovascular product portfolio. The acquisition of Walk Vascular fits well into Abbott's leading

vascular device offerings and further drives Abbott's ability to provide one-of-a-kind

endovascular therapy solutions to improve patient care. Financial terms were not disclosed.

Abbott conducts distribution operations both from its own distribution centers and through third-

party partners. Established pharmaceutical and nutritional customers include health care

organizations, wholesalers, pharmacies, retailers, government agencies, consumers, and

distributors. Diagnostic products are generally marketed and sold directly to blood banks,

hospitals, commercial laboratories, clinics, physicians' offices, retailers, government agencies,

alternate care testing sites, and plasma protein therapeutic companies from Abbott owned

distribution centers, public warehouses or third-party distributors. n the US, certain medical

devices are generally marketed and sold directly to wholesalers, hospitals, ambulatory surgery

centers, physicians' offices, and distributors from Abbott-owned distribution centers and public
warehouses. Outside the US, sales are made either directly to customers or through distributors,

depending on the market served. New product approvals and launches across Abbott in 2021

continue to bolster the company's product pipeline. Significant gains were made in Structural

Heart with Abbott receiving FDA approval of two key minimally invasive devices — Amplatzer

Amulet Left Atrial Appendage Occluder and Portico with FlexNav transcatheter aortic valve

implantation/replacement (TAVI/TAVR) system — and CE Mark for Navitor, its latest-

generation TAVI/ TAVR system. Abbott also received FDA approval of its Neurosphere Virtual

Clinic — a first-of-its-kind remote neuromodulation patient-care tech in the U.S. — and

expanded Medicare reimbursement for MitraClip. Dr. Wallace Abbott started making his

dosimetric granule (a pill that supplied uniform quantities of drugs) at his home outside Chicago

in 1888. Aggressive marketing earned Abbott the American Medical Association's criticism,

though much of the medical profession supported him. During WWI, Abbott scientists

synthesized anesthetics previously available only from Germany. Abbott improved its research

capacity in 1922 by buying Dermatological Research Laboratories; in 1928 it bought John T.

Milliken and its well-trained sales force. Abbott went public in 1929. International operations

began in the mid-1930s with branches in Argentina, Brazil, Cuba, Mexico, and the UK. Abbott

was integral to the WWII effort; the US made only 28 pounds of penicillin in 1943 before the

company began to ratchet up production. Consumer, infant, and nutritional products (such as

Selsun Blue shampoo, Murine eye drops, and Similac formula) joined the roster in the 1960s.

The FDA banned Abbott's artificial sweetener Sucaryl in 1970, saying it might be carcinogenic,

and in 1971 millions of intravenous solutions were recalled following contamination deaths.
Considering the above description of Abbot (Case study), write a report by answering the

following questions.

1. Analyse how Abbot may identify the value that it obtains from its current portfolio and

evaluate the techniques that may be used in assessing future IS investments.

2. In many parts of the company, it is clear that Abbot do not have a coherent IS strategy.

Analyse how it may construct an IS strategy that is supportive of its business strategy and the

benefits that it would derive from this.

3. Analyse the strategic potential for greater investment in information systems and technology at

Abbot both from a divisional and company-wide perspective. Could business process re-

engineering be a useful tool in maximising the potential of IS and IT within the company?

Explain and justify your answers.