AN ANALYSIS OF THE USE OF IT BY THE PHARMACEUTICAL INDUSTRY IN BANGLADESH

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Comparison in the besis of IS of Bximco, Square, Renata and Acme Phama

Comparison in the besis of IS of Bximco, Square, Renata and Acme Phama

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  • 1. AN ANALYSIS OF THE USE OF IT BY THE PHARMACEUTICAL INDUSTRY IN BANGLADESH
  • 2. Prepared ByMd. Mahabubur Rahaman Student ID: 10364038Marshal Richard Student ID: 10364057Rackib Jaman Student ID: 10364069Tushan Barai Student ID: 10364077Mashook Mujib Chowdhury Student ID: 10364004
  • 3. Introduction Bangladesh has a large pharmaceuticals market with over 2400 hundred crore taka business of more than 175 pharmaceuticals companies The top 10% company holds more than 90% of the market share. Our report follows the top four companies. This report will compare the issues regarding the use of information technology (IT) between the following pharmaceuticals companies. BEXIMCO Pharmaceuticals Limited (BPL) ACME Laboratories Limited (ALL) Square Pharmaceuticals Limited (SPL) Renata Pharmaceuticals Limited (RPL)
  • 4. Introduction The report will look at: How is the company currently using IT? What benefits are they having using IT? What drawbacks are they currently facing with the use of IT? How can they improve the use of IT? Perform SWOT Analysis
  • 5. Renata Pharmaceuticals Ltd.Year of Establishment: 1972Authorized Capital (Taka): Tk. 500 MillionPaid-up Capital (Taka): Tk. 180 MillionNet profit after tax: Tk. 851.428 MillionInternational Presence: Afghanistan, Cambodia, Guyana, Jordan, Kenya, Malaysia, Myanmar, Nepal, Philippines, Hong Kong, Sri Lanka, Vietnam, and United KingdomInvestment: 100% Shareholding in Renata Agro Industries Limited 100% Shareholding in Purnava Limited More then 300 product, like; ANTIMICROBIALS, ANTI- HYPERTENSIVE, ANTI-DIABETIC , HAIR REGROWTH, EYE-EAR AND TOPICAL PREPARATIONS, ANTI-TUBERCULOSIS AGENTS etc.
  • 6. IS Scenario Managers use IT as one of the many tools to cope with change Uses computer hardware, software, storage, and communication technology for its IT work Uses both manual and computerized information systems Computerized system includes  barcode scanning  handheld devices  an intranet connection  the Internet  many pieces of software for tracking packages, fee calculation, and customer account maintenance as well as managing logistics Its main focus is in supply chain management.
  • 7. IS Scenario Two main goals of the supply chain management are  to take full advantage of both the efficiency and effectiveness of the entire supply chain for everyone’s advantage  to maximize the opportunity for the customer purchase by ensuring sufficient stock levels at all stages of the process SAP ERP system have helped Renata manage its total supply chain Such systems include modules to help manage the entire supply chain and interact with suppliers Systems are continuously updated to support direct data interaction with both suppliers and customers, e.g. to support electronic data interchange (EDI) Platform: Windows Applications software: ERP – SAP
  • 8. SWOT AnalysisStrengths The system is faster, more responsive, and flexible in ordering, manufacturing, as well as distributing. The need for warehouses near the serving market has diminished.
  • 9. SWOT AnalysisWeakness The use of ERP is only properly used in case of supply chain management. The other departments do not use ERP. Employees are apprehensive of IT. Employees’ skills are less than what is required.
  • 10. SWOT AnalysisOpportunities Integrating ERP systems throughout the entire organization will allow them to be competitive in the market. Regular training sessions can be provided to improve employees’ confidence and becoming familiar with IT.
  • 11. SWOT AnalysisThreats Only the supply chain management will be competitive with the others but not the entire of the organizational activities. The issue of globalization will cause problems since countries from developed nations will be having competitive advantage.
  • 12. BEXIMCO Pharmaceuticals Ltd. Year of Establishment: 1976 Authorized Capital (Taka): Tk. 9,100 million Paid-up Capital (Taka): Tk. 2098.07 million Net profit after tax: Tk.1,051.65 million Number of Shareholders: Tk. 93,371 Beximco Pharma is the flagship company of Beximco Group, the largest private sector industrial conglomerate in Bangladesh. Only Bangladeshi company with an AIM listing on the London Stock Exchange. Its state-of-the-art manufacturing facilities have been certified by the global regulatory bodies such as TGA (Australia), GCC (Gulf Council), ANVISA (Brazil) and INVIMA (Colombia). The only pharmaceutical company in Bangladesh to enter the US market through the acquisition of an Abbreviated New Drug Application (ANDA) for a product.
  • 13. BEXIMCO Pharmaceuticals Ltd. The company has a visible and growing presence in emerging markets, including Malaysia, Kenya, Singapore, Myanmar, Sri Lanka, Nepal, Nigeria and the Philippines. It has received the National Export Trophy (Gold) on three separate occasions for its outstanding contributions to the country’s pharmaceuticals export. Achieved 33.33% sales growth over 2009, outperforming industry growth of 23.81%. The company is consistently producing more than 400 products in different dosage forms covering broader therapeutic categories which include antibiotics, antihypertensives, antidiabetics, antireretrovirals, anti asthma inhalers etc,
  • 14. IS Scenario Supporting hardware, developing and maintaining software, and all types of system support at the head office, factory, and the distribution centers Work of the MIS Department:  Taking care of total automation  Hardware and software network support for the company and factory  Providing services through SNA Server, WIN NT Server, and SQL Server The operational headquarter is linked to the corporate headquarters through fiber optic cable Also developing the access control & attendance monitoring system internally Maintains the radio-link between the factory and the head office and all distribution centers through dial-up Internet
  • 15. IS Scenario The In-house Software Development & Maintenance of the MIS department deals with  software design and development (such as their entire database)  monitoring the task of software (a post implementation task)  updating the databases and software if necessary. This department identifies each department’s requirement and develops the application on continuous basis Applications are in separate modules, but the company is going to integrate them and convert into an ERP Uses: for sales analysis, credit collection monitoring, etc. Platform  Windows  DOS (disk operating system) Programming language: Visual Basic and FoxPro Applications software: DBMS – MS SQL Server and FoxPro
  • 16. SWOT AnalysisStrength Technology is present virtually everywhere in the organization. Since the developers are within the organization, maintenance costs are very low. Developing own software means that the programs can be customized according to own needs.
  • 17. SWOT AnalysisWeakness Databases based on the prototyping method There is no formal Software Requisition System present in BPL. Different departments are informally using different software. Projects are incomplete and there is no intention for completion
  • 18. SWOT AnalysisOpportunity Using commercial, well-tested, and up-to-date ERP systems so that they can compete in the same level as other companies who are using modern systems. Usage of ERP systems also provide a “centralized” concept which can help in communication, sharing of information, etc. Provide training sessions to its employees to get fully accustomed to the use of technology and also have the will to do so.
  • 19. SWOT AnalysisThreats Local competitors who have been using ERP will have severely competitive against them. International companies looking to do businesses in the country will already be likely to have great advantage at least in terms of technology.
  • 20. Square Pharmaceuticals Ltd.Year of Establishment: 1958Authorized Capital (Taka): Tk. 5,000 MillionPaid-up Capital (Taka): Tk. 1207.22 MillionNet profit after tax: Tk. 2,532.055 MillionNumber of Shareholders: Tk. 19,617,390 Largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. Square Pharmaceuticals Limited develops, manufactures, and markets drugs for the health care of various living species primarily in Bangladesh.
  • 21. Square Pharmaceuticals Ltd. The company also provides local anesthetics, other anti- bacteria’s, other beta-lactic antibiotics, penicillin’s and cephalosporin’s, NSAIDs and antigun preparations, quinolone antibiotics, respiratory tract preparations, systemic antifungal, antiviral and anti-protozoan agents, systemic hormone, systemic sex hormone, thyroid therapy, topical preparations, vitamins and minerals, and water purification products. Exports its products to Europe, Asia, Africa, and South America. Square enlisted as UNICEPs global supplier.
  • 22. IS Scenario Initially used computers for supporting, developing and maintaining their own software, and all types of system support within the departments Only recently they started using SAP for its production related activities IT department takes care of automation of the company, supporting hardware and software Hardware: Repair & maintenance Software: Developing, maintaining, and monitoring the function of software and updating databases and software if required Support: Installation, system support, presentation support, troubleshooting
  • 23. IS Scenario In a similar manner to BPL, SPL offers services through WIN NT Server and SQL Server. Analysis their department, we find that the company is using the following platforms, programming languages, and applications software. Platform: Windows Programming language: Visual Basic Applications software: DBMS – MS SQL Server, ERP – SAP
  • 24. SWOT AnalysisStrength The company will be getting used to SAP Usage of SAP enables them to be competitive with others using the same technology. It also gives them competitive advantage against those who do not use the modern technology.
  • 25. SWOT AnalysisWeakness Only one department uses ERP; the others will not be efficient. Lack of use of sophisticated software (simple XLS sheets to maintain data for quite complex operations like monthly and yearly data for their work, departmental budget monitoring, purchase records etc.) Most of the programs are stand-alone (they are isolated and are being used only by a specific department) Fear or nervousness is present among employees regarding the use of technology
  • 26. SWOT AnalysisOpportunities Since a department will be already familiar with SAP ERP, integration to other departments will be relatively easier. Total integration will mean that they will be in a greater competitive advantage than others. Constant training sessions will enable the company’s employees to get over their fear/nervousness of IT.
  • 27. SWOT AnalysisThreats Only the production department will be competitive with the others but not the entire organizational activities. The issue of globalization will cause problems since countries from developed nations will be having competitive advantage.
  • 28. ACME Laboratories Ltd.Year of Establishment: 1954 Since it is not a listed company, the financial details were not possible to obtain Second largest manufacturer and exporter of Human, Herbal and Animal Health Pharmaceutical Products in Bangladesh. ACME is exporting medicines to several countries in neighboring South-East Asia, Africa, Middle East and the EU, maintaining a philosophy to ensure Health, Vigour and Happiness for the whole mankind within its means and resources.
  • 29. ACME Laboratories Ltd. Sales wise Afghanistan is the top among the 11 countries ACME is exporting to with a growth rate of 55%. MOU signed for mutual business interest with the Himalaya Drug Company of India.
  • 30. IS Scenario The company provided us with a document named “IT Security Policy” This lists the rules and regulations for an “IT User” It lists a wide range of security features including frequent changing of passwords, usage of removable devices, use of email, etc. This shows us that they seemingly have a well-organized system of the use of IT Current use of IT includes  automated buying process  first accounts  Inventory  sales
  • 31. IS Scenario All their departments are interconnected using a virtual private network (VPN) Such networks have advantage of increased security, as outsiders will not be able to breach in due to built-in firewalls ISP: Link-3 (provides broadband connection) Uses an ERP systemPlatform: Windows Programming language: Developer 2000 and Content-2 Applications software: DBMS – Oracle Database (XP) and Office suits
  • 32. SWOT AnalysisStrengths All transactions through computers Lack of errors Better control Maintaining discipline Reduction of documents Fixing double entry problem, and so on.
  • 33. SWOT AnalysisWeakness All information are not online since the current day’s data will be updated the next day (a sudden loss in between will cause data to be lost. Workforce skill is not up to what is required. Training sessions need to be conducted. The infrastructure of the departments suffers due to low bandwidth of the network.
  • 34. SWOT AnalysisOpportunities Improving the VPN system to increase bandwidth. Applications may be improved so that they are compatible with any browser. Constant training sessions will enable the company’s employees to get over their fear/nervousness of IT.
  • 35. SWOT AnalysisThreats There is no e-commerce facility currently. Hence any company using such service will be at an advantage. Companies from developed countries seeking to do business in Bangladesh will create problems when ALL tries to compete with them.
  • 36. Conclusion We have found that the use of IT does not affect the companies’ profit margins, value chain, inventory management, and various types of marketing procedures The reason for this may be because of the late use of modern technology thereby it is not possible to properly evaluate the impact of IT From our course, Information Management, we learn that IS is helping in various ways to help companies leverage their profit. Even the top companies of the world are getting benefitted by using IT. Bangladeshi companies are lagging way behind
  • 37. Conclusion Most important reason is lack of using IS technology; proper planning, monitoring, budgeting, lack of knowledge, etc. are missing. Our top ten pharmaceutical companies are now competing globally exporting their products to more than 30 countries around the word For competing with foreign pharmaceutical companies, our companies need to develop their ICT So far the way they use ICT is not sufficient. Although these companies have made good profit margins, they would make even greater levels with proper use of IT Good news is that they are realizing it and are trying to adopt modern technology It can be expected that after two years or more, we will see a good result being produced.
  • 38. Recommendation Main problems: employees’ fear or uneasiness with technology, the current technology not being fully up-to-date when compared with international companies, and also the choice of a proper technology, namely ERP1. Fear of technology  Regular training sessions are required  Such sessions will educate the people so that they understand that IT is nothing to be apprehensive about; it rather creates an advantage
  • 39. Recommendation2. Up-to-date technology  Once people are used to IT, upgrading or updating to newer and better systems become relatively easier  New trainings will be required3. Use of ERP  A well designed ERP helps a business flawlessly combine key computer applications  Purchase of such software from major software giants like SAP, Oracle, and IBM
  • 40. Thank You
  • 41. Any Question ?