ASSIGNMENT 5

INFORMATION SYSTEMS
AND MANAGEMENT
MOORE MEDICAL

Group 6, Section G
Adithya Nair Satheesan (2015PGP009)
Alka Dawar (2015PGP021)
Bhushan Kiranrao Chavan (2015PGP089)
Chetan Duddagi (2015PGP091)
Karkhanis Rucha Umesh
(2015PGP171)
Shashank Bhardwaj (2015PGP338)
Sindhuri Vankina (2012IPM107)

Q1.Which new information systems, if any, should Moore purchase? How did you arrive
at this decision?
Decision factors

New CRM

Bolt-on modules to existing ERP

Install both

Costs

Total cost of implementation =

$ 592,500

Estimated cost per module = $ 300,000

Total cost = $ 300,000 * 4 = $ 1,200,000

Total cost = $ 1,792,500

(Assuming all 4 modules
are installed with CRM)

Benefits

Makes processing bids and

quotes with their customers
easier and allows them to have
an integrated network through
all of their channels such as
phone, E-mail, and web.

Module 1 - Demand planning

Benefit: Purchase based on previous sales history
and expected future activity.
Module 2 - Warehouse transfer system
Benefit: Check all distribution centers for excess
stock before an order is placed to a vendor.
Module 3 - Deal management
Benefit: Compare and analyze different vendor
deals to determine optimal stock levels.
Module 4 - Stock simulations
Benefit: Determine customer service levels that
would result from different stock levels.

Achieving the benefits of the

CRM system and also being
able to choose which modules
they would like to add to their
ERP system.

Analysis

- Expensive
- Greater visibility
- Integrated records bringing
together customers from every
channel

- Problems with the existing system

- Complexity a major issue

- Expensive
- Difficult to implement
- Adaptation and
acceptance from internal
users

Based on the above observations, implementing CRM alone or with Bolt-on modules is expensive, requires time for
adaption and the companys vision and mission should be aligned with CRM initiative. In addition, the company was not
profitable in 2000. However, to better utilize the existing ERP and reap benefits out of it, for which a huge amount of $
7million has already been spent, it is a good option to install Bolt-on modules to existing ERP.

Q2: What are the most important things that Moore does not know
about its customers at the time of the case? What are the best
ways for the company to obtain this knowledge?
Important things that Moore doesnt know about its customers:
Moore did not completely understand why some of its customers left?
Average company loses half its customers over a five year period. Due to
this, Moore is spending 5 times more on customer retention that acquisition.
65-75 % of the customers who deflect say they were satisfied with the
supplier.
Moore did not fully understand why penetration rates and shares of wallet
were so different across its customer segments.
Moore also did not fully understand why there penetration rates across the
six groups identified by them varied widely: approximately 75% of U.S.
podiatrists had ordered from the company, while fewer than 5% of
physicians
Best ways
for the had.
company to obtain this knowledge:
Moore should take the help of CRM system and analytics which would
enable it to gather and analyse the data about its customers. CRM System
will manage the marketing, sales and customer functions of the customer
relationship. Analytics will help it to understand why its customers are
behaving in this particular manner.

Q3. What are the pros and cons of Moore's move into e-Commerce /
online ordering? Do you agree that this was a good move for the
company
PROS

Increase in the number of visitors as well as orders. Orders/month

grown from 1423 to 2218.
87% of the customers were there existing customers who converted
from other methods of ordering & 13% were actually a new customers.
Thus their customer base is expanding because of this move.

Enhanced service and availability for customers and reduced

cost for the company.
CONS
Customer may find the web site unfriendly for use. They may
find the website difficult for navigating.
They spent very high amount ($1.5mn) for the website
development.
Hiring new 2 to 3 people with programming skills will also
incurred cost of $75000 to $100000 per person. Training the
existing sales people.
marketing and promotional activities of the website might need
more spending.