MITS4001

Business Information Systems

Assignment

Weightage: 30%

2023
MITS4001 Assignment

This assessment item relates to the unit learning outcomes as in the unit descriptors.

This assessment covers the following LOs.

LO1 Adapt information systems to strategically achieve organisational goals and be able to
design, develop and manage IT systems implementation to achieve Business IT Alignment.

LO2 Develop an IT Plan that designs, implements and manages the technology supporting these
information systems including computing devices, storage and processing (both systems
processing and application processing).

LO3 Identify, synthesize and model individual functions of a database system to be used for
organization data management and decision making.

LO4 Apply appropriate eCommerce or mCommerce business operations and activities that
contribute to effective business productivity.

LO5 Appraise an organization’s competitive position by applying standards approaches and

analyse activities/issues in recruitment, employment relations and performance management
and explore emerging business trends through study of published research work.

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MITS4001 Assignment

Marking rubric

Criteria A (80-100%) B (70-79%) C (60-69%) D (50-59%) Fail N (Below Weight

50%)

Question 1 Current Current portfololio Current portfololio Current Failed to 8

portfololio analysis and future analysis and future portfololio analyse
analysis and investiment investiment analysis and
future investiment analysis is analysis has room future investiment
analysis is thorough for improvement. analysis is a feeble
excellent. attempt

Question 2 An excellent IS IS strategy is very Both IS strategy IS strategy and Failed to 8

strategy is well constructed and benefits need benefits is a feeble construct an
constructed and and benefits need improvement attempt IS strategy
benefits are improvement and identify
elaborated. benefits

Question 3 Strategic potential Strategic potential Both strategic Is a feeble attempt Failed to 8
for greater is very good but potential and answer the
investment in business benefits business process question
information of business re-engineering appropriately
systems and process re- benefits need
technology at engineering needs improvement
Abbot both from a improvement.
divisional and
company-wide
perspective is
elaborated.
Business process
re-engineering
benefits are
elaborated

Grammar No grammar One or two Some grammar Grammary and Poor 3

and mistakes and grammar mistakes mistakes and vocabulary has a grammar and
Vocabulary excellent and and appropriate reasonable use of lot of room for vocabulary
appropriate use of use of vocabulary vocabulary improvement
vocabulary

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MITS4001 Assignment

References All references IEEE style is IEEE style is References are IEEE style not 3
provided in IEEE followed and few followed but most only provided followed;
style and in-text intext references intext references finally in IEEE intext
referencing is are missing are missing style; no intext reference not
intact references provided;
available

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MITS4001 Assignment

Instruction
In this assignment, a scenario is presented in the form of a description of a company. Based on
your understanding on the scenario, you are asked to write a report answering the questions at
the end of this assignment. Your report should be approximately 1800-2000 words long and
needs to be uploaded in Moodle by the due date as mentioned in Teaching and Assessment Plan
or as per Lecturer’s instruction.

Case Study
Abbott Laboratories develop, manufacture, and sell a broad and diversified line of health care
products. Abbott has product lines of branded generic pharmaceuticals, diagnostic systems and
tests, pediatric and adult nutritional products (including well-known brands such as Similac and
PediaSure), and medical devices for the treatment of cardiovascular diseases, including diabetes
care products for people with diabetes, neuromodulation devices for chronic pain and movement
disorder management. The US accounts for about 40% of company's total sales. Abbott was
founded in 1888 by physician and drug store proprietor Dr. Wallace C. Abbott.

With activities ranging from filling baby bottles to making generic medications and cardiovascular
devices, Abbott Laboratories is a diverse health care products manufacturer. Its cardiovascular
and neuromodulation segment makes products for cardiac rhythm management,
electrophysiology, and other areas of cardiovascular care. Abbott's diagnostics division makes
laboratory testing systems and point-of-care tests. The nutritional products division makes such
well-known brands as Similac infant formula and Ensure supplements. Abbott also sells branded
generic medicines (including gastroenterology and women's health products) in emerging
markets and makes the FreeStyle diabetes care line.

Abbott operates in four reportable segments: Diagnostic Products, Medical Devices, Nutritional
Products, and Established Pharmaceutical Products. The Diagnostics Products (more than 35% of

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MITS4001 Assignment

total sales) makes laboratory systems that screen and diagnose for cancer, cardiovascular
disease, fertility, and infectious diseases, among others. It also makes rapid diagnostics systems
for infectious diseases and other conditions; point-of-care testing systems; molecular diagnostics
for genetic (DNA and RNA) and genomic testing; and laboratory informatics and automation
tools. A global leader in cardiovascular product sales, Medical Devices segment brings in about
35% of total sales. It researches and manufactures devices in the areas of cardiac rhythm
management, heart failure, electrophysiology, vascular disease, and structural repair, as well as
neuromodulation devices to treat movement and chronic pain disorders. Products include
Assurity and Endurity pacemakers, MitraClip valve repair systems, XIENCE drug-eluting stents,
and TactiCath and Navitor transcatheters. The Nutritional Products segment (around 20% of
sales) sells pediatric and adult formulations around the world. Brands include Similac, Ensure,
Isomil, Glucerna, PediaSure, and Zone Perfect. The segment also provides nutritional products
used for enteral feeding in health care facilities. Abbott's Established Pharmaceutical Products
(over 10% of sales) are branded generics marketed in emerging markets. These include
gastroenterology drugs (such as Creon, Duspatal, and Heptral), women's health products
(Duphaston and Femoston), cardiovascular and metabolic offerings (Lipanthyl, Teveten, and
Synthroid, among others), pain and central nervous system medications (Serc, Brufen, and
Sevedol), and respiratory drugs and vaccines (Influvac, Biaxin, Klacid, and Klacirid). The company
had a revenue of $43.1 billion, a 24% increase from the previous year's revenue. The increase in
total net sales in 2021 reflects volume growth across all of Abbott's segments. In 2021, Abbott's
COVID-19 testing-related sales totaled approximately $7.7 billion led by combined sales of
approximately $6.6 billion related to Abbott's BinaxNOW, Panbio, and ID NOW rapid testing
platforms. In 2021, the company had a net income of $7.1 billion, a 57% increase from the
previous year's net income of $4.5 billion. The company's cash at the end of 2021 was $9.8 billion.
Operating activities generated $10.5 billion, while investing activities used $2 billion, mainly for
acquisitions of property and equipment. Financing activities used another $5.5 billion, primarily
for proceeds from stock options exercised. Abbott Park, Illinois-based Abbott has more than 90
manufacturing plants, as well as R&D facilities, in countries around the globe including China,
Colombia, India, Singapore, Spain, and the UK. The company's products are sold in more than 160

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MITS4001 Assignment

countries, allowing the company to reduce dependence on any specific market. Abbott earns
about 40% of its sales in the US. Other major markets include Puerto Rico, Switzerland, Ireland,
the Netherlands, Costa Rica, Singapore, and Malta, all of which accounting for over 60% of the
revenue. In late 2021, Abbott acquired Walk Vascular, LLC, a commercial-stage medical device
company with a minimally invasive mechanical aspiration thrombectomy system designed to
remove peripheral blood clots. Walk Vascular's peripheral thrombectomy systems will be
incorporated into Abbott's existing endovascular product portfolio. The acquisition of Walk
Vascular fits well into Abbott's leading vascular device offerings and further drives Abbott's ability
to provide one-of-a-kind endovascular therapy solutions to improve patient care. Financial terms
were not disclosed. Abbott conducts distribution operations both from its own distribution
centers and through third-party partners. Established pharmaceutical and nutritional customers
include health care organizations, wholesalers, pharmacies, retailers, government agencies,
consumers, and distributors. Diagnostic products are generally marketed and sold directly to
blood banks, hospitals, commercial laboratories, clinics, physicians' offices, retailers, government
agencies, alternate care testing sites, and plasma protein therapeutic companies from Abbott
owned distribution centers, public warehouses or third-party distributors.

n the US, certain medical devices are generally marketed and sold directly to wholesalers,
hospitals, ambulatory surgery centers, physicians' offices, and distributors from Abbott-owned
distribution centers and public warehouses. Outside the US, sales are made either directly to
customers or through distributors, depending on the market served. New product approvals and
launches across Abbott in 2021 continue to bolster the company's product pipeline. Significant
gains were made in Structural Heart with Abbott receiving FDA approval of two key minimally
invasive devices — Amplatzer Amulet Left Atrial Appendage Occluder and Portico with FlexNav
transcatheter aortic valve implantation/replacement (TAVI/TAVR) system — and CE Mark for
Navitor, its latest-generation TAVI/ TAVR system. Abbott also received FDA approval of its
Neurosphere Virtual Clinic — a first-of-its-kind remote neuromodulation patient-care tech in the
U.S. — and expanded Medicare reimbursement for MitraClip. Dr. Wallace Abbott started making
his dosimetric granule (a pill that supplied uniform quantities of drugs) at his home outside

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MITS4001 Assignment

Chicago in 1888. Aggressive marketing earned Abbott the American Medical Association's
criticism, though much of the medical profession supported him. During WWI, Abbott scientists
synthesized anesthetics previously available only from Germany. Abbott improved its research
capacity in 1922 by buying Dermatological Research Laboratories; in 1928 it bought John T.
Milliken and its well-trained sales force. Abbott went public in 1929. International operations
began in the mid-1930s with branches in Argentina, Brazil, Cuba, Mexico, and the UK. Abbott was
integral to the WWII effort; the US made only 28 pounds of penicillin in 1943 before the company
began to ratchet up production. Consumer, infant, and nutritional products (such as Selsun Blue
shampoo, Murine eye drops, and Similac formula) joined the roster in the 1960s. The FDA banned
Abbott's artificial sweetener Sucaryl in 1970, saying it might be carcinogenic, and in 1971 millions
of intravenous solutions were recalled following contamination deaths

Questions
Considering the above description of Abbot, write a report by answering the following questions.
It is recommended that up to 1 hour should be spent on each question.

1. Analyse how Abbot may identify the value that it obtains from its current portfolio and
evaluate the techniques that may be used in assessing future IS investments.
2. In many parts of the company, it is clear that Abbot do not have a coherent IS strategy.
Analyse how it may construct an IS strategy that is supportive of its business strategy and
the benefits that it would derive from this.
3. Analyse the strategic potential for greater investment in information systems and
technology at Abbot both from a divisional and company-wide perspective. Could
business process re-engineering be a useful tool in maximising the potential of IS and IT
within the company? Explain and justify your answers.

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