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Wyeth case study
- 1. WYETH CASE STUDY Nicholas Gormley
- 2. WYETH’S FINAL ENTERPRISE ARCHITECTURE Global data Warehouse Regional Support Center AS400’s JDE Local App Development Tech and Client Support Regional Support Center AS400’s JDE Local App Development Tech and Client Support Regional Support Center AS400’s JDE Local App Development Tech and Client Support
- 3. EVOLUTION OF WYETH’S ORGANIZATIONAL STRUCTURE Local IT Local IT Local IT Local IT Local IT Local IT 1997 2005 CorporateIT Regional Support Centers Local IT Local IT Regional Support Centers Local IT Local IT Pre-Bureaucratic & Divisional Bureaucratic & Divisional
- 4. WYETH’S IDEAL ORGANIZATIONAL IT STRUCTURE • Use of the “IT Is the Business” structure is crucial for continuation of Wyeth’s success
- 5. WYETH ORGANIZATION EXPERIENCE EVALUATION Create Sense of Urgency Build Guiding Coalition Form Strategic Vision Enlist Volunteer Army Enable Action Removing Barriers Generate Short-Term Wins Sustain Acceleration Institute Change The Big Opportunit y Create Sense of Urgency Build Guiding Coalition Form Strategic Vision Enlist Volunteer Army Enable Action Removing Barriers Generate Short-Term Wins Sustain Acceleration Institute Change Kotter’s 8-Step Process for Leading Change Wyeth’s Model Execution
- 6. SOURCES Kotter, J. 8-Step Process. In Kotter Inc.. Retrieved February 7, 2018, from https://www.kotterinc.com/8-steps-process-for-leading- change/ Mandviwalla, M., & Palmer, J. W. (2008, April 10). Globalization of Wyeth. In Harvard Business Publishing. Retrieved February 7, 2018 Organizational Structure. In Wikipedia. Retrieved February 7, 2018, from https://en.wikipedia.org/wiki/Organizational_structure Young, C. M. (2016, April 26). The Built-to-Purpose IT Organization. In Gartner. Retrieved February 7, 2018.
Editor's Notes
- Full utilization of the RSC model allowed Wyeth to maintain all of their various divisional locations, while keeping data and crucial information interconnected between every site. Before the RSC model overhaul, Wyeth was inefficiently using their hardware, software, and personnel, resulting in miscommunication between locations and inefficient operations.
- Wyeth began as a pre-bureaucratic and divisional structured company. Each separate business owned by Wyeth lacked structure of standardization of tasks. Wyeth is a multi-national company, containing employees who were responsible for certain markets and products separated into regional divisions. Along with the internal changes at Wyeth, the organizational structure transformed from a Pre-Bureaucratic to a Bureaucratic structure. As shown in the diagram, a hierarchical structure of IT was developed, along with tiers of management. Still following the divisional structure, Wyeth’s divisional employees gained clearly defined roles and responsibilities.
- IT is the business fits best because the structure around information flow is necessary for a company with multiple global divisions, such as Wyeth, which is expecting the same results from each location. Wyeth accomplished this goal by using the same information, processes, techniques. and materials across every divison.
- Create Sense of Urgency – Data modeling workshops made people realize “if I get on board I can likely make something of this; if I resist, I might get rolled over by others.” Build Guiding Coalition- New global departments were created, resulting in newly global products being developed and increased interest to move to sourcing the product from any plant in the world. Form Strategic Vision- Workshops organized for senior supply chain-related managers allowed the managers to understand the importance of IT globalization, showing them that about 80% of the data set was somehow shared globally. Enlist Volunteer Army- The implementation of IT globalization was met with resistance from certain divisions and took a lot of work and convincing to have every division cooperate Enable Action Removing Barriers- Wyeth used global product sourcing to overcome the barrier of the business model of a typical pharmaceutical company. Generate Short-Term Wins- in 2000, major steps forward towards the globalization initiative were made Sustain Acceleration- Small, but continuous successes in the implementation of the globalization of IT kept Wyeth on track for the end goal of the company. Institute Change- By 2004 the European implementation was close to completion and the global IT strategies were implemented.