MDCM, INC.

A&B

ITC Team 5
IT Maxims
Expectations for IT investments in the firm
▪ Utilize IT to reduce cost by eliminating duplication
Strategic
▪ IT has a strategic role in achieving of firm objectives
Context
To cut down costs by ensuring optimization
at all department levels, ensuring flexibility in
terms of information flow, Ensure global
Data access & use expansion ,Improve business processes and
increase efficiency
▪ Data must be synchronised for it to be used by other departments and future purpose
▪ Centralized information flow - Rapid response

Hardware and Software resources

▪ Expansion of ERP, Implementation of new softwares that ensures optimization (Employee
intranet portal)
▪ Bridge gap between technical platform for effective data sharing between various departments

Architecture approach
▪ Develop a firm wide IT Architecture for covering data flow and sharing, Hardware and
Software resource implementation
▪ Implement standardise various platforms to reduce cost
Business Maxims
Value differentiation perceived by customers
▪ Meet customer expectations of providing quality products at reasonable prices
▪ Ensure to make information availability easy for client from a single service outlet

Flexibility and Agility

▪ Improve response time to market demand, by optimising production time
▪ Deploy resources required for new products quickly thereby reducing expedite orders

Growth
▪ Establish international presence and focus on increasing customer base

Human Resources
▪ Ensure to create a business environment to maximize productivity by ensuring proper
information share

Management orientation
▪ Create independence in local operations while leveraging synergies throughout the firm
Strategic Alignment Maturity Model
We feel that the Strategic Alignment Maturity is in Level 1 currently

Communications: Business and IT lacks understanding

Competency/Value: IT Metrics are not in place, there are no service level agreements, no formal
assessments
Governance: MDCM lacks strategic planning, there is no budgetary control redundant spending, no
prioritization process
Partnership: Business perception of IT is poor, therefore the lack of coordination, no shared goals and
planning
Scope: No standardization in process and architecture and software
Skills: Lack of employee training and change readiness is minimum

Regular meetings between the IT and Management teams are required and to
Recommendation
● Implement Enterprise Resource Planning systems as this would solve majority of the problems form
MDCM
○ Improve information flow among departments, suppliers and logistics,
○ Decrease internal costs due to forecasting errors and expedited orders for customers.
○ This ERP implementation tackles many problems that MDCM is facing
■ Take care of Financials reporting and accounting
■ Human Resource Management
■ Sales Forecasting, Pricing and Invoicing
■ Material resource Planning
○ ERP implementation will achieve consolidation of many systems into one global system achieve
helping MDCM solve many problems that they are facing.
○ Will reduce human resource requirement

● Standardize Server Hardware and Platforms: As 80% of the IT budget is being spent on maintenance,
especially on vendor services ($1.5 million/ year), it is important to reduce maintenance and support
costs through standardization.
○ Redundant IT Maintenance costs because of non-standardized infrastructure and software
Recommendation
● Unify Methodology and Technical Standards
○ Optimize the project cycles with enhanced knowledge sharing
○ Will cause minimum effect on the existing systems but all new projects would be conformed to
the same methodology and standards

● Create Employee Intranet portal

○ Create networking capabilities for communication between employees and departments.
○ Communication will allow for sharing of critical information between departments and reduce
deadlocks
Business Strategy I/T Strategy I/S Strategy
Business Scope

● Improved information flow

● Reduced maintenance costs
● Faster business cycle

PowerPoint
Presentation

Competencies Governance

● Enhanced networking capabilities ● Role of top management is key in

● Unified methodology and standard budgetary control
● Enable CRM and portals to be ● Role of I/S management is to
implemented have a robust architecture