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Case Study Analysis:

American Hospital Supply Corporation The ASAP System (A)

Q1: How much competitive advantage can IT really provide? Ans: At the first place, it would seem impossible that anyone could argue that information technology (IT) has been ineffective in the competitive edge. Information technology (IT) is emerging as a key force in shaping the basis of competition in many markets. Information systems (IS) have long been considered Centre for effective management, but recent interest in IT is based on its potential to influence the drivers of competition. Q2: How can company find opportunity for such uses of IT? Ans: Company can utilize the IT tools for the same. It can run along with the detailed feedback which would comprise of close ended questions and would provide recommendations at end of the feedback. With the right kind of question to customers for feedback purpose, with the use of the detailed data available the solutions can be easily catered. Q3: What can we do to make IT related competitive advantage sustainable over period of time? Ans: Sustainable competitive advantage is unique position that organization develops in relation to the competitor that allows it to outperform them consistently. This is possible with related to IT related advantage sustainable over period of time by possessing the value creating process and position that can be easily duplicated or imitated. Sustainable competitive advantage is different from Competitive advantage as it provides long term advantage and is not easily replicable. We can develop the same with continues evaluation and updating the IT within the organization i.e by using the main frame and designing the process and flow of data more user friendly. Q4: What factors which includes Industry, technology and others made ASAP successful? Ans: Analytical System Automatic Purchasing (ASAP) was the new order system, with the main frame computer support, developed by American hospital Supply Corporation. This system was evolved with continuous research of the customer s need of placing the order for the medicines with a view of minimizing the labor efforts and time to place and receive the order from AHSC. ASAP model was more user friendly with more customer involvement in placing the order. Model was full proof and technically sound that it hadn t crashed once over the life time of the same. This model was based on continues evolvement of the technical specification with ASPA1/2/3/4 being developed with taking main frame support more VIP services. Q5: As a competitor of American Hospital supplier in mid 1995 how would you respond to ASAP? Ans: ASAP model brought revolution in the health care industry sector. With features like maintaining inventory level, focus on customer satisfaction, with time value for money and maximum reliability, this was becoming one of the favorites in the industry. To beat ASAP and as a competitor I will focus on following points related to ASAP and industry:

a. More competent feedback model and appropriate analysis of the results. To concentrate on the recommendations of the customers, which would be an added advantage Q6: What should American Hospital do next to achieve competitive advantage through I.T? Ans: With the development, continuous evolvement and rolling out of ASAP in hospital industry brought a new revolution in this industry whose sole purpose was customer satisfaction. Apart from the features of ASAP, American hospital could do the following to achieve the competitive advantage a. Reducing the cost for the customer with additional support b. Developing a competent feedback model for customer and analyzing the result c. Receiving recommendations from customers to improve on the current model. d. It could move into preserving stock and designing competent inventory maintaining model.

Q7: As IOS evolved and develop, ASAP is an example of IOS. How do they impact different organizations they link? Ans: ASAP is IOS providing comp comp linkage between ASHC and its customers. IOS is an Internal Organization System and is different from the traditional distributed data processing technology. IOA is a system in which there is an information system which works between two or more than two organizations and is able to connect through the data of all these. Through IOA there is a single source access and control along with the central management. IOA has brought revolution in terms of distance data. Distance data results --- copies of the database at different geographic location --- results into multiple data sources ---- limits the in and out of the data also possess the chance of data lost or might lead to misleading data. Q8: How are AHSC and customers impacted by ASAP? Ans: ASHC is impacted with ASAP as: 1. It gets consistent business from hospitals i.e. there is stream line flow of business coming out from different hospitals on continues basis. This results into a better inventory management and optimize the supply chain management 2. Customers database is increased with new customers and there is strong retention of original customers Customers are impacted with ASAP as: 1. Reliability has improved 2. Duplication of items and paper work is avoided which results in reduction of man hours and manpower 3. There is ease in placing order and improved delivery measures has resulted in controlling the inventory levels