Neelkanth Drugs Pvt. Ltd (NDPL) is a leading pharmaceutical distributor in Delhi and Uttar Pradesh with 205 employees and 47 outlets. NDPL has first mover advantage with no major competition in a non-competitive environment allowing for further expansion. NDPL implemented information sharing and IT systems from 1998-2012 to increase operational efficiency from 25% to 100% and reduce manual processes and HR requirements. However, issues arose with cloud computing implementation including limited experience of the software provider and connectivity and availability problems. An ERP system would have been a better solution than cloud computing for NDPL's needs.

1. CASE STUDY-NEELKANTH
DRUGS PVT. LTD
SUBMITTED BY
ADARSH SHARMA
ANSHUL GARG
DAVID YADAV
GAURAV KUMAR
MRUDULA SWAMY

2. OVERVIEW OF NDPL
 Leading Pharmaceutical Distributors in Delhi
 The distribution is in Delhi and Uttar Pradesh
 Number of employees-205
 Number of outlets-47(Delhi and NCR)

3. NDPL
ENVIRONMENT-
PORTERS FIVE
FORCE MODEL
COMPETITION
No major competition
First mover advantage
THREAT
OF ENTRY
BUYING
POWER
THREAT OF
SUBSTITUTES
SUPPLIER
POWER
• NDPL is basically a
distributor i.e, the middle
man
• Non-Competative
Environment
• Further expansion is
possible
Wholesalers bought
from NDPL
Retailors accounted for
70 to 80%of sales
=low buyer power
Stockist marketed
only 6 to 8 pharma
companies
=low supplier
power
Very few chances of
new wholsalers to
enter as VAT charges
are increased
=low threat of entry
Few
Substitutes

4.  Information sharing(IS) was used with the finance, sales and purchase division
 1998-2001
 INR80,000 to 100,000 spent on IT
 HR requirements reduced
 Operational efficiency increased from 25%to 100%
 2002-2004
 Manual system replaced by telephone system
 Integration and centralization of the modules
 Easy Sol Software
 2005-2006
 Manufacturers started interacting electronically with NDPL
 Automatic bill generation. Hence time reduction from 8 hours to 30 minutes
TIME LINE OF NDPL IT

5.  2007-2009
50 new systems were introduced,IBM Servers(Data and appications together)
Hence 3 application server 1 data server
W-LAN was introduced
Software-From INR200,000 to 300,000
Hardware- From INR300,000 to 4820,00
 2010-2011
 Huge IT expenditure incurred ,hence cloud computing was suggested.
 2012- Standalone systems were used with no integration with other
departments.
TIME LINE OF NDPL IT

6. KEY PROBLEMS WITH CLOUD
COMPUTING IMPLEMENTATION
 The computing software provided to NDPL had limited experience and
couldn't satisfy the requirements of pharmaceutical industry.
 Connectivity between the parties involved and availability of the software
round the clock.

7. REASONS FOR THE USE OF IT
 NDPL wanted that to expand. Therefore IT would have been a better solution
as it would have helped them to centralize the different departments and
reduce the operation time.

8. RECOMMENDED SOLUTION
 AN ERP Would have been a better solution compare to that of cloud
computing.
 If still interested in cloud computing then NDPL must make sure that the
platforms shared by the interned provider and the cloud vendor must be
same so that no connectivity issues happen.