MOORE MEDICAL CORP.

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 About Moore Medical…

• Moore Medical Group serves in the

area of medical products since 1947.
•It is serving in the USA, and decided to
implement new systems
to manage their office business in an
efficient manner.
•Autore is the CEO of this company.
•The company bought an ERP system,
and they are going to decide on whether
to buy a CRM package or not.
 WHY CRM SYSTEM ?
•The company evaluates employing a
CRM system in order to keep track of
practitioners and carry on the
management of relations in an
efficient way.
•The company changed its strategy
from providing pharmaceuticals to
supplying products for the
practitioners due to the large profit
margins, and it wants to acquire and
retain customers by the help of this
system.
 …WHY CRM SYSTEM ?
•The CEO wants to make sure that CRM will eliminate the causes of
the deficiencies.
•The company builds its strategy onto practitioners, so a powerful
system relating to that field should bring about a comparative
advantage.
 OUR SUGGESTION
•Since the system enables the company to store and reach different
kinds of important information with regard to the customers, it will
have a significant and positive effect in the operation of the company.

•So we suggest the usage of the CRM.

•It is also important to nail down these inefficiencies for acquisitions

and retentions, and the company should also investigate the ways of
supplying other related products such as x-ray devices.

•But anyway CRM seems to be necessary in this context.

 CRM vs ERP
•On the other hand, we think the
company should have delayed the
implementation of ERP.

•Although the ERP system was

successful on receiving online
orders and found to be appropriate
in pre-project planning "at the first
glance", it didn't comply with the
processes of the company very well.
 PROBLEMS
•It had some problems with keeping track of the quotes, causing
redundant data and deficiency of the company's operations such as
slowing down the order entry processes.
•The ERP system was very costly, and it had some problems with
the usage of the data in the firm.

•The G.D. Edwards system

was not flexible enough, and
people faced with
unnecessary information in
front of them.
 FINANCIAL ISSUES
•For such a company that is not newly established, not too big, or
not having a powerful IS system to make the necessary
customizations complying with the work system in the company; it
seems that a 7,000,000 dollars of expenditure is quite unnecessary.

•The most important point is to insure that the costs

are less than or equal to the benefits, and the
evaluation of possible alternatives which can be
customized according to the needs of the company
is a prerequisite to take an action for such big,
structural investments.
DECISION MAKING
•Actually the criteria for employing
such system should be to analyze the
needs, and therefore decide on the
system which provides the best
answer for the need.

•This requirement is also valid for

employing a CRM system.

•But there is a conflict between the

company's priority and G.D. Edwards
in this case.
 DECISION MAKING
•For example, Autore was
planning to make pro-active
planning to make the goods
available at the right place, but
the ERP was found to support
reactive planning instead of
proactive planning.

• Since there is a conflict with the

strategic goals, an alternative
solution which does not reflect
these inconsistencies may have
worked better.
 IT SYSTEM
•To determine whether IT provides a solution for a specific
problem or not, we should concentrate on every possible factor to
obtain a precise idea.

•If the results are mostly related to the accessing and organization
of data, it may mean that the IT system needs an enhancement.

•If the problem arises mostly from strategically management-

related concerns (such as problematic approaches to marketing
and finance), alternative solutions should be applied.
 IS SYSTEM
•The amount of spending which is realized for improving the IS
system within the company should be influenced by its
productivity and by its relevance.

•If we want to make a decision with regard to our realized

expenditures on the I.S, i.e if we want to make sure that we made
a good decision to employ a new information system in a big cost,
we should look at two things:
 THE RIGHT CHOICE
•How much could we earn only
for employing this new system?
(the net benefits related to the
system)

•How can the system be consistent

for our company, enabling it to
obtain a sustainable advantage for
using the system?
 FACTORS
•We should know the net income which we get for
implementing the system, and if it seems to amortize its cost in a
reasonable period of time, it may be a good decision to switch
on it.

•Here we should also consider the trend of the technology, i.e

today it is an obligation to make use of internet technology for
conducting day-to-day business

•For example we need to have the capability of receiving online

orders.
 FACTORS
•So the effect of future should also be considered by looking at
the trend.

•Besides:
oIf the system we paid a lot of money is not related to our
business experience
oIf it is not easy to modify the system for our specific needs
This is not appropriate to use this system.

•So shortly, the most important point is to know how much

value the system adds to our company.
 FACTORS
•In addition:

oIf our IS does not respond to the

needs of the business, and we are
behind our competitors, we need
to spend a bit more on IS.

oIf we can't implement the

obtained solution for our business
problems, or if our system has
some a lot of additional functions
other than what we need, it may
mean that we have spent a lot on
IS.
 FACTORS
If:

•Our system responds to our business needs without

additional payments for unnecessary functions

•Our system doesn't cost more than the systems that the
others in the industry use

it means that we have paid the optimal amount.

 QUESTIONS

1. What should we consider if we want to make sure that we

made a good decision to employ a new information system
in a big cost?

2. What are the problems in implementation of ERP system?

ANSWER 1:

• How much we could earn only for

employing this new system? (the
net benefits related to the system)

How can the system be consistent for

our company, enabling it to obtain a
sustainable advantage for using the
system?
ANSWER 2:

• Very costly
• Problems with keeping track of the
quotes causing:
– redundant data
– deficiency of the company's
operations
• Problems with the usage of the
data
• Not flexible