The pharmaceutical industry was under siege, with regular price rollbacks and the powerful advance of generics frequently making news headlines. Many of the industry's leading companies, including Novartis, were cutting their sales forces, while sales representatives who still had jobs felt increasingly disengaged. David Epstein, the head of Novartis's Pharmaceuticals division, bucked the trend. He introduced a strategic initiative that aimed to fundamentally transform Novartis' selling model. Epstein committed to an aspirational goal of equipping 80% of the company's field forces worldwide with the latest iPad technology by the end of 2012, in just 15 months. A few months later, he set his teams an even more ambitious challenge: to equip 100% of the sales force by the end of 2013, which meant rolling out 25,000 new devices across the globe within a two-year period. Novartis was about to embark on a digital transformation journey, with the ultimate goal of providing the right drug to the right patient at the right time.
As managers seek to exploit the tremendous amounts of data now available from internal and external sources, they're likely to use the approach they use with all their IT projects--that is, they'll focus on building and deploying technology on time, to plan, and within budget. That works for projects designed to improve business processes and increase efficiency, but when it comes to extracting valuable insights from data and using information to make better decisions, managers need a different approach and mind-set. A big data or analytics project is likely to be smaller and shorter than a conventional IT initiative, such as installing an ERP system. It's also more like scientific research. Commissioned to address a problem or opportunity, such a project frames questions, develops hypotheses, and then experiments to gain knowledge and understanding. The authors have identified five guidelines for taking this voyage of discovery: 1) Place users--the people who will create meaning from the information--at the heart of the initiative; 2) Unlock value from IT by asking second-order questions and giving teams the freedom to reframe business problems; 3) Equip teams with cognitive and behavioral scientists, who understand how people perceive problems and analyze data; 4) Focus on learning by facilitating information sharing, examining assumptions, and striving to understand cause and effect; and 5) Worry more about solving business problems than about deploying technology.
Drugs to cure the disease exist, however they don't reach the demand where it occurs and stock-outs of drugs to treat malaria cost lives. Jim Barrington, former chief information officer (CIO) at Novartis and current director of the SMS for Life project, had been trying to solve the problem since 2006, when he first heard about the "last mile" problem from Silvio Gabriel, executive vice president (EVP), Novartis Malaria Initiatives. The case talks about how he approached the supply-chain problem and established a public-private partnership to develop a simple solution suitable for the rugged African environment. The essential idea was to create an in-county forecasting system based on the use of SMS messaging between the health posts that dispense the drugs and the district and regional warehouses that distribute the drug. A data management system with a reporting interface using charts provided stock level information from all facilities to facilitate stock movement and supply, as well as improving stock forecasting and planning. The case describes the process of developing and implementing the solution through a pilot in three districts in Tanzania. The pilot was successful and the case ends with the question how to approach a country-wide and even a pan-African roll-out. Learning objectives: There are three learning objectives, and ways to teach the case: 1) To discuss a new, collaborative way, involving private and public companies (and contrast it other available approaches), to solve world-wide problems, which demand solutions beyond the capabilities and responsibilities of single players. 2) How simple technology, e.g. based on available mobile phone networks, can solve supply chain problems in most difficult environments. 3) How external collaborations can bring innovation into well established multinational players, and have a potential impact on their business model.
Since it was founded in 1988, Ping An Insurance has grown to become China's second largest life insurance underwriter and third largest property and casualty insurer. The company's ambition is to build on its local market success to become a leading regional and global integrated financial services provider within the next 10 years. The case focuses on strategy execution and illustrates how Ping An has developed and will continue to develop its business and information capabilities to meet existing and future customer needs. It examines the culture of the company and what it can and should do to drive its rapid growth through intense customer focus and market-based product innovations.
MAS is an apparel supplier to the world's leading brands. Beginning January 2005, a quota-free international textile trade regime will replace country-specific textile quotas for goods entering WTO member states. Small apparel manufacturers are not expected to survive - Chinese firms could corner as much as 50% of the worldwide market. The case looks at how MAS should be organized to best meet customer demands in a rapidly changing, fashion-driven industry where both speed and flexibility in operations are critical to success. How vertically integrated should MAS become? Should it invest in building a retail brand? Or should it go downstream and bring raw material suppliers in-house? Or instead focus on configuring its supply chain to optimize its existing business processes? How should MAS manage and deploy its IT systems to improve knowledge sharing and information management capabilities across the organization, and perhaps strive for a competitive edge?
CEMEX, based in Mexico, has grown through acquisitions from a local cement producer to the world's third largest. Over the last 20 years, the company has been a consistent leader in using IT and managing business information in innovative ways in the cement and ready-mix concrete business. CEMEX has also accumulated knowledge about integrating acquired companies across the world and developing business processes that incorporate best practices in diverse countries and regions. In 2000, CEO Lorenzo Zambrano decided to codify best-practice knowledge across the company around 8 key global business processes through a three-year project called the CEMEX Way. Although implementation cost $200 million, the company could save over $120 million per year in IT and procurement costs. In 2004, the project became a permanent part of CEMEX's approach to doing business globally, but had to be modified to incorporate more local innovation and flexibility as well as to capture best-practice changes more rapidly across the company. How can CEMEX align the behaviors and values of its people and strike the right balance between local business flexibility and global standardization to grow in the future?
In a decade, CEMEX has become the third largest cement company in the world and has achieved an enviable growth record. CEMEX has established its public image as a digital leader, leveraging information technology and e-business ventures in the traditional low-tech and conventional cement industry. The case, however, illustrates that being a digital leader is only part of the story. The CEMEX Way is focused on developing the right behaviors and values in CEMEX people globally to use information about products, customers, and operations effectively. This requires deploying common processes, information practices, and IT infrastructure to promote profitable growth globally and locally as well as integrate its acquisitions to its way of doing business rapidly. As the cement industry is rapidly consolidating worldwide, the case raises the issue of how a company competes with information, people, and IT capabilities to use its knowledge and information to bring the company's growth to new levels. This is an abridged version of a case.
In a decade, CEMEX has become the third largest cement company in the world and has achieved an enviable growth record. CEMEX has established its public image as a digital leader, leveraging information technology and e-business ventures in the traditional low-tech and conventional cement industry. The case, however, illustrates that being a digital leader is only part of the story. The CEMEX Way is focused on developing the right behaviors and values in CEMEX people globally to use information about products, customers, and operations effectively. This requires deploying common processes, information practices, and IT infrastructure to promote profitable growth globally and locally as well as integrate its acquisitions to its way of doing business rapidly. As the cement industry is rapidly consolidating worldwide, the case raises the issue of how a company competes with information, people, and IT capabilities to use its knowledge and information to bring the company's growth to new levels.
This is an MIT Sloan Management Review article. Excellence at investing in and deploying IT isn't sufficient to achieve superior business performance: companies must also excel at collecting, organizing, and maintaining information and at getting their people to embrace the right behaviors and values for working with information. The authors present the results of a two-and-a-half-year international research project led by the Institute for Management Development. They show that senior managers view strong IT practices, competent management of information, and good information behaviors as components of one higher level idea--Information Orientation" or IO--which measures a company's capabilities to manage and use information effectively. IO is also a predictor of business performance. Among the guidelines: Focus your best IT resources on what makes you distinctive; actively manage all phases of the information life cycle; develop an explicit, focused view of the information necessary to run the business; and do not compromise on information integrity.
Gives an overview of the collapse of a prestigious financial institution and the organizational failings that contributed to it. Outlines the history of Barings Bank, the creation of its securities business, particularly in the Far East, and how Nick Leeson, a Barings trader in Singapore, was able to run up massive losses in derivative trading, which caused the collapse of the bank. Identifies the cultural clashes, remuneration system, control failings, and other issues that severely weakened the effectiveness of the matrix management system, an important contributor to the collapse.
Describes how Nick Leeson, a Barings trader in Singapore, concealed his unauthorized trading activities, how Barings blindly financed them, and how the internal and external controls failed to identify the mounting losses. Identifies areas of poor internal control, inadequate computer systems, and a breakdown in information flow. Also discusses the failure of internal and external audit and regulatory systems.