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American Hospital Supply Corporation case study-Divvya

American Hospital Supply Corporation case study-Divvya

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Published by surojitsaha15094
American Hospital Supply Corporation case study
American Hospital Supply Corporation case study

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Categories:Types, Business/Law
Published by: surojitsaha15094 on Feb 27, 2012
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05/13/2014

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Case AnalysisAmerican Hospital Supply Corporation
Q1: How much competitive advantage can IT really provide? Ans: The role of IT cannot be questioned in the current information age. IT and ISsystems play an important role in helping companies create a competitiveadvantage in their segments. IT helps processing endless data with minimumtime and effort on part of the user eliminating the human error that was creatingmismanagement and problems for the organizations.Q2: How can a company find opportunity for such uses of IT? Ans: Companies now have the technology to crunch out scores of feedback itreceives from its customers and can also figure out certain trends that may emitfrom consumer behaviors and preferences that could not be done previously.Various tools are being used by organizations that have a global footprint to helpthem get data from anywhere in matter of minutes if the IT and IS systemsflawless.Q3 What can we do to make IT related competitive advantage sustainable over agiven period of time? Ans: Sustainable competitive advantage can be achieved by making one of theprocesses within the organization virtually impossible to replicate as either beingtoo expensive to replicate or having a completely revolutionary system of workflow to carve out a niche for the company. As the technology keeps updatingit is important for organizations to keep itself updated as well otherwisecompetitors can take advantage and take its place in the market, IT should makethe flow of information within the organization much easier and user friendlywhich has to be useful not only internal users but external users.Q4 What factors, which includes industry, technology and other made ASAPsuccessful? Ans: ASAP was the new order system that AHSC had created after one of thewest coast offices had gone through some problem trying to process a largeorder from one of its customers. This system came about in existence as thecustomers need of less order placing time and effort. The model had a capabilityof tracking inventory levels and later by automatically placing orders. As was thecase with AHSC we saw that the ASAP product that the company had createdwasn¶t outstanding which the customers declared, but it was easy to use andefficient and got the job done. This benefited the company with increasedfrequency of orders taken and also larger orders as the customers got the
 
information about their orders whenever they wanted. This helped the companycreate a competitive advantage amongst its competitors but the company did notrest its laurels there but came out with new and improved systems to cement itsplace as a leader. The key to success was not only coming out with a newinformation system but also backing that up with excellent service to itscustomers.Q5 AS a competitor of American Hospital Supplier in mid 1995 how would yourespond to ASAP? Ans: AHSC realized very early that the industry would not be the same for verylong and that IT and IS would play a revolutionary role in changing the landscapeof the industry. So the company saw how the customers were facing difficultyand acted the quickest. Customers were satisfied with the model but they did notregard it as an outstanding one, which should have made one of its competitorscurious as to where was the scope of improvement available. This would take thecompetitor not much time as it can take feedback from its existing customersabout the model and make appropriate improvements. But customers were notonly using the model because of its ease of use but were ready to pay a premiumto AHSC because it had outstanding service which was key to its success.Q6 What should American Hospital do next to achieve competitive advantagethrough IT? Ans: The ASAP model brought about a revolution in the hospital industry and thecompany should continue to focus on the customer by bringing out models,which have customer satisfaction in mind. As we observed that even though theproducts are slightly higher priced compared to its competitors the customersplaced more orders because the service and ease of use of the ASAP modelmade the whole strenuous job of order placing much more easier and fun to do.The company also provided information of materials management to help itsclients keep the costs down which was brought in by the government.Q7 As IOS evolved and developed, ASAP is an example of IOS. How do theyimpact different organizations they link? Ans: IOS is an ³Internal Organization System´ and is different from the traditionaldistributed system, which the AHSC¶s ASAP model was. The IOS model ismainly for those within the organization while the ASAP model was basically for the customers. IOA was the system that brought different data of variousorganizations together. It was basically for distance data sharing across differentgeographic locations limits the chance of lost data because of it being in a centrallocation.

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