D2Hawkeye Growing The Medical IT Enterprise Case Solution

1. Read the case study to identify the main point and key players. Highlight the main points and identify themes. Review, asking questions: What is really going on? What are the problems? What is the main issue? How do the problems relate? What are the underlying issues? Describe how or why these issues developed.

This case talks about a healthcare IT company based in Nepal. This business had presented the healthcare market and the insurance industry with a breakthrough innovation of healthcare financial risk analysis. The company had grown to offer several products to its customers and gained the attention from several investors. The business was at a point at which it required investments to grow. The founder of the company was looking for a financial security for himself as he was nearing his retirement age. He was presented with three alternatives. One was a sellout option to Atlanta; the second was a 20% share and a large share in management by Beacon Capital. The third alternative arose because of the financial crisis that had lowered the value of D2’s assets. Atlantic was offering lower, and that was the first option. The third option was to wait for competitive buyers to make Atlantic raise its price again. 

2. Research the problem or issue you have identified to help frame the issue and to make connections to secondary issues. Use journal articles, and not website-based sources. 

It is said that technology giants such as IBM and Microsoft have the capacity to deal with large sets of data enabling them to offer their services to large corporations. Also, these companies are leading in the technology analytics market. This means that companies that have less finance available cannot expand their data services as much as IBM can offer (Gandomi & Haider, 2015). However in the past there are examples available when IBM was slow in exploiting a certain business idea that enabled Intel to get the opportunity. With the right funding, D2 can also compete with the technology giants just as IBM did with its improvement in the speed of processing. It was a small chip-maker company previously (Moorthi, 2011). Thus with the right strategic partnership, D2 can compete with Microsoft that has not yet developed a data analytics system as per the case. 

3. Decide how to solve or manage the issue. Consider who should be involved: what their responsibilities might be, strengths and weaknesses, and so on.

To solve the issue the current scenario of competitiveness and the long-term predicted situation of the entrepreneur, Kryder should be taken into account. To solve the issue, the Beacon Capital representative should be called upon to discuss the level of control that Kryder would have in the business after the shift of 20% shares in the company. The business Atlantic’s situation should also be considered, and the implications of a strategic partnership with a company with low quality should be assessed. Kryder’s decision is the main involvement in this case. In this case, his weakness is that he is overworked and on the other hand, his entrepreneurial mindset fears the loss of control. The risk involved in waiting for Atlantic to raise its price for the shares is high and would unsecure Kryder’s financial condition and the company’s ability to develop new products. 

4. Identify at least two alternative solutions and analyze their strengths and weaknesses (or describe why they would or would not be effective).

The two alternative strategic investors are the Atlantic and Beacon Capital. The strengths of Atlantic is that the company is a large healthcare analytics company. It also has a portfolio of other healthcare analytics companies that it has acquired over the past years. However, its services are not superior or equivalent to the services that D2 offers. As a result some customers opted for D2 after a bad experience with Atlantic. This strategic partnership can have a negative effect on D2’s brand name. 

Beacon Capital was offering to take 20% of shares in the business and it was not putting Kryder out of control. It also was suitable to take D2 to the larger insurance market. The weakness of the offer was that it was not offering Kryder a full liquidation. 

5. Select the best alternative and explain how you will measure effectiveness. 

The best alternative is the offer by Beacon Capital. The reason is that the company is strong financially and its financial support can help D2 reach to the larger insurance market. It will allow D2 to expand and grow in terms of customers as well as financials to offer new products into the market. Its effectiveness can also be measured by the involvement of Kryder in the business. This offer means that the entrepreneur’s fear of giving full control of his business would be minimal. The wish of reducing the workload would also be fulfilled. Its effectiveness also lay in the fact that Atlantic has lost its credibility in its customer’s perception. The amalgamation into the Atlantic group would mean developing the credibility that D2 has again.