EUROPE ASIA BUSINESS SCHOOOL

Case Study Analysis
American Hospital Supply Corporation The ASAP System (A)
Devendra Patil - 11104

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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: Information Technology provides gathering data, extraction of data, reduces human intervention and helps us to do calculations faster. Hence, Information & Technology definitely provides a competitive edge. In the context of the case study the system installed by American Hospital Supply Corporation was not great, in the sense that any one of the competitors could install and use the technology. But it is the way the technology will be used that will make the difference. Q2: How can company find opportunity for such uses of IT? Ans: Company can use technology to gather data related to its business so that it knows its current position vis-à-vis its goals. Company can identify processes where it can use technology to reduce human intervention, so that errors due to human intervention are reduced. It can also be used to get 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 would be written off. Company can perform the internal data analysis with the data collected over the period of time. The same data could be used to predict the trend and seasonal effects in the data so that finally the conclusion could be reached. Various tools are available in IT for the analysis purpose, same could be deployed to get out the concrete results. 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. Implementing CMS model could serve the purpose as it includes content creation; content management and content publication by implementing following in the model : User-friendly Interface Content Migration Tools Immediate Previews Workflow ; User Permission Management; Version Control & Archiving; Document Expiry Management Page Templates Publish Accessible Content 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 continues research over the customers 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 Page 2 of 4

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 which included sms sender etc. This model had peculiar facility of tracking the inventory levels and automatically placing the orders which saved the man hours of hospital and even the paper work which was a big problem at big hospitals. ASAP model was very unique which was helping in the reduction of time and cost investment in placing the order and delivery of the consignment. In health care sector reliability plays a vital role and this model was meeting requirements in terms of the data transfer and the order receipt with maximum efficiency. With implementation of ASAP there was less intervention in the SCM and more focus was on the sales part. With this product there was a facility and access was given to the customer for tracking of the treatment. 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 peculiar features like maintaining inventory level, focus on customer satisfaction, with time value for money and maximum reliability, this was becoming more favorite in the industry. To beat ASAP and as a competitor I would have focused 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 make added advantage b. Gather details of ASAP model till lower level to get a jest of how ASAP is leader in developing and maintain customers by providing more benefits to them. c. Develop and design a new model which is competent enough to stand before ASAP and which would be available to customers at cheaper rates. Q6: What should American Hospital do next to achieve competitive advantage through I.T? Ans: With the development, continues 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 through a. Reducing the cost to customer with more and 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 information system which works between two or more than two organization and is able to connect through the data of all the organization. Through IOA there is a single source access and control along with the central management. IOA has brought revolution in terms of distance Page 3 of 4

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. IOA is linked to different organization like Vendors / Hospitals / Distribution Centers Different players are involved in data handling and processing of the same. DBMS at all the positions and locations are maintained at same pace on real time basis. This gets a more transparency and reliability. With use of BI analysis of can be done easily as compared and which could be helpful in understanding the current scenario and projections could be established on strong grounds. This would serve as an input for strong decision making. 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. 2. This results into a better inventory management an optimize the supply chain management 3. Customers database is increased with new customers and there is strong retention of original customers 4. Paper work flow and maintenance has been reduced and SCM being streamlined more focus was developed on sales part. Customers are impacted with ASAP as: 1. Reliability has improved 2. Duplication of the items and paper work is avoided which results in reduction of man hours 3. There is ease in placing order and improved delivery measures has resulted in cutting the inventory levels

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