Objectives: Key business objectives (Which are directly supported by IT)

Advancements in self-service & CRM technologies

Improved software optimizes inventory control & production capacity
IT systems to eliminate unnecessary uses of valuable resources
Optimizing working capital, cost structures, & margins
Improves information flow & forecasts

The major strategic objective of the company is to boost profits by increasing productivity. This
can be achieved with successful implementation of Information Technology. There is a
requirement to stem the losses it is suffering due to competition and inefficiency. The other
objective is to become a market leader in the medical product manufacturing industry. The
company should invest in information technology which will add value to its products,
increase market share and also increase profits recorded. The company should reduce its internal
costs. This can be achieved through the identification of functional areas where information
technology should be used for the reduction of costs. Such a strategy should be used to improve
the efficiency and effectiveness in the company. At last the organization aims at increasing its
market share.
Problem Statemet:
1. There was a dire need of alligning their IT strategy to their corportate strategy
because:
Information delay: Due to no proper IT infrastructure in place there was a
delay in information processing.
Forecasting issues: Due to no proper ERP system in place they spent almost
three times as much as they need on materials
Logistic issues.
2. Need for Strategic IT Portfolio Management in the support of strategic business
goals
Defining and prioritizing the top IT projects and initiatives.
Tofind optimal portfolio of IT investmentsthat not only balanced risk and
return but also are aligned with overall corporate strategy.

Introduction: A decision to overhaul an entire information system of a company and replace it

with another requires critical assessment and consideration. At Mdcm Inc, the overall goal of the
restructuring of the IT is to establish a well coordinated unit that could successfully and
effectively deliver the IT capabilities of MDCM on a global scale (Mark, & Norton, 2006).
Successfully restructuring the IT system would require that the differing information systems
standards utilized across the company are unified for easy access and management
IT MAXIMS: LINKING BUSINESS AND TECHNOLOGY

IT investment decisions are quite critical and important for a company. For the industry
following the trend of the times and continues to grow, the decision to invest in IT can be said to
be very important for the company, but the company's leaders who are responsible for decision-

making are often wrong in their decisions, making IT investments difficult because they do not
not fit with the business strategy. IT investment decisions are generally made seeing the
technical criteria than the long-term needs hence decisions may not fit the needs of the business
strategy.
IT infrastructure is the foundation for developing applications and information systems. The
decision to create the best IT infrastructure can use the framework called "management by
Maxim". This framework starts from defining companys strategic contex and its business unit
synergy. Maxim of business, IT and business managers jointly identify IT Maxim, which in turn
suggests the need of companies to access and use information, data and technology resources
needed to process the transaction and ensure compliance with technical capabilities, integration,
and standards. The Framework helps IT investments in terms of balancing the cost and long term
goals.

Considering Strategic Context

The context of the strategy provides insight into what should be coordinated at the company,
what should be developed from within the business unit, and what should be left out so at this

stage, the leader of the company (MDCM, in this case) determining the strategic intent of the
company in the form of long-term goals and business unit synergies.
References:
Management by Maxims: How Business and IT Managers Can Create IT
Infrastructure.By: Marianne Broadbent, Peter Weill

Articulation Business Maxim

After obtaining the objectives of the company, what should be further developed to the stage is a
business maxim that describes the company's mission. At this stage IT managers and businesses
should work together to anticipate problems such as: some companies do not have an adequate
strategy and some companies have too much of documentation so its hard to focus. In context
with MDCM case, Business Maxim categorized into 6 categories:
1
2

4
5
6

Focus on costs: Prices of products / services at the lowest cost. Encourage

economies of scale through best practice
Value Differentiation perceived by customers: Meet customer expectations with
quality and at a reasonable cost. Make a selection of consumer products as easy as
possible.Provides all the information needed for the service to all customers through
one-stop service.
Flexibility and agility: Having the flexibility to respond to new markets. MDCM
should develop the ability to cross-selling andevelop new products and new services
quickly.
Growth
Human Resources: Creating intellectual environment with maximum productivity.
Better managing professional and technical experts.
Orientation management: Maximizing independence in local activities

IT Maxim: IT Maxims describes how companies connect, share and organize information on the
company.The five categories of the IT Maxim are: Expectations for IT investment in the
company.
1. Expectations for IT Investments in the Firm
2. Access to and use of data.
3. Hardware and software resources.

4. Ability to communicate and services.

5. Architecture and standardized approach.