MDCM Inc B Strategic IT Portfolio Management Case Solution

2. Recommendations

Of the several projects and initiatives, the company should conduct the following ones

i. Outsource Non-Strategic IT Services

This aspect is very important because it does not support the strategic objectives of the organization to also have non-strategic functions in the IT department. By outsourcing these activities the company will not only save costs on additional facilities but it will also be in a better position to manage the main functions that support the strategic objectives of the company in a more meaningful manner. As pointed out in the case, the company could generate savings by undertaking this step and it will be easy to undertake with the help of Atkins’ prior experience.

ii. Implement Enterprise Resource Planning

Although the step of implementing a full-fledged enterprise resource planning system will be high, the company should still consider it as it will help in the reorganization of production facilities and suppliers. The project needs to be completed with a renewed focus since it has already been delayed two times. Since the organization would already be enjoying savings with the help of outsourcing non-strategic IT services, they can bear the additional cost of the new system. Considering that the focus of the company is to choose those measures that will help them in achieving the strategic objectives, this approach will work because an enterprise planning system will help them in coordinating with other sites and projects in a more seamless manner. However, the true benefits might not come in the short term so taking a long term approach will be the appropriate strategy for the company.

iii. Begin CRM / Create Data Warehouse

This step has already seen some success in the company’s French subsidiary. This shows that it has the potential to succeed on a global scale. Like the previous step, the organization needs to invest a substantial amount of capital for this purpose and they must also not be in a hurry to expect good results. As the advantages of a good customer relationship system will be a primarily long term they will help the company achieve its strategic objectives more effectively. The management should realize that the requirement is to focus on improving their long term profitability and to do this they should be ready to invest a considerable amount of time and money. 

iv. Why others are not important

Unifying methodology and technical standards is a good step but it will require a lot of training that would not solve the problems the company is facing right now. Moreover, the consolidation option has several problems. For instance, the company will need to combine data from different locations and it will consume the efforts of network staff. The problem of relying on limited locations can be further worsened if connecting networks fail. Storing all data in one or two locations is also risky from the perspective of data security and data integrity. Standardizing servers and other hardware is not that important because it is a secondary support activity that the company will easily accomplish at a later stage.