2. 1926 – Holding Company
Multi-national, 140 countries
Collection of independent affiliates
Originally American Home Products -- Diversified
(Drugs, Household Products, Foods, etc…)
Early 90s: Focus on Health Care Products
Background
3. Early 90s: Business Model of diversified holding
company no longer makes strategic sense
Divesture of non-healthcare divisions
“Meet your numbers and we leave you alone”
Multi-national, but not “Global”
Geographic vs. Operational
Background
4. Global Marketing
NEED to market & Globaly Supply Chain
manufacture new Local thinking, lack of
products on global integration Challenge
basis, not local of global inventory!
And in 90s: Original
Scientific Discovery
(Global R&D)
Streamline
Reporting
Common complaint:
managers wanted
Development, Manufacturing, timely and accurate
Distribution, Sales & Current information
Marketing Operations
Need for Business Globalization
5. GLOBALIZATION PROCESS
Global Information Technology Platform catalyst for
Business Globalization
Business Globalization Enabler/Barrier: IT
6. Agreeing on definition of Globalization using IT
Re-Organizing Structure and Hierarchy ?
Standardizing Processes ?
Integrating Product Sourcing Solutions ?
Business Globalization Enabler/Barrier: IT
7. Pre-Globalization Benefits with IT
Role of IT
Fragmented IT COST reduction with
Enterprise
SHARING services
Used for support, not
core Standardize applications
R&D
and link businesses
Different systems with
different features across Integrate systems
Sourcing affiliates
No integration, no
Marketing sharing
Business Globalization Enabler/Barrier: IT
8. Pre-Globalization Benefits with IT
Role of IT
Focused on local market Optimizing and
Enterprise
and local data accelerating speed of
modeling and simulation
R&D
More data to work with
Sourcing
Marketing
Business Globalization Enabler/Barrier: IT
9. Pre-Globalization Benefits with IT
Role of IT
IT solutions support Plan and manage
Enterprise
Planning and production and capital on
Manufacturing for local large scale
affiliate and supplier
R&D
Complex network of
commercial and supply
partners --> Optimization
Sourcing
Marketing
Business Globalization Enabler/Barrier: IT
10. Pre-Globalization Benefits with IT
Role of IT
IT solutions provide local Business analytics based
Enterprise
data on large amount of data
-->
Planning campaigns at Better targeting, impact
R&D market/channel level measurement, proactive
responses
Sourcing
Marketing
Business Globalization Enabler/Barrier: IT
11. Initial PLAN
Global IT Unit
Reorganize
personnel to report
to Henry Garcia
Global IT IM Specialists
Strategy Information
Managers in charge
Formal system
of defining business
processes Plan for concepts for IT
Globalization
using IT as
enabler
Global
IT Global
Warehouse
Architecture
& AS400
infrastructure
Outsourcing
Reporting, Cost
Planning Globalization using IT
12. Barriers and Challenges
Financial restrictions
Resistance to help – Control and job?
Regulatory differences
Non-standardized data
Physical and Cultural differences
Planning Globalization using IT
13. Implementation of IT Globalization Plan
• Managers • IT • Relationship • Global Data • Globalization
Workshop Globalization Managers Warehouse to
Team Regionalization
• Resource • Visit to 40 • RSC for Latin • Standard •Adapted
Serving countires America Processes message for
Center mature
• Steering businesses
Commitees (e.g. Europe)
ERP
(1997)
SAP(19
99)
Execution
14. Successes
Data Modeling: 80% shared globally
Improved Reporting Lines
Increased budgetfor IT central (0.5 B USD & 1,800 ppl)
Link between local centers (affiliates) and RSC (corporate)
Servicing Latin America Region
Standarizing procedures
ERP, Global Warehousing
Results
15. Failures
Relationship Managers (Failure of IM position)
AS400 Consolidation
Change in reporting lines for EUROPE
Resistance of “mature” businesses and processes
Project time-line deffered every year
Selling “globalization” to EUROPE
Results
Global, research based pharmaceutical company$16 billion annual revenue53,000 employees100+ locations worldwide Established in 1926Formerly named American Home Products
Knowledge not well shared between parent andaffiliates
Top management knew the potential of IT, but didn’t know how to implement globalization using IT
We will see further along that they used a combination of all 3 definitions.
But first, let’s look at the role IT plays as a globalization enabler and the benefits it brings to the different parts of the organization.
1997, central IT, 22 people, 3 million USD budgetBruce Fadem CIO, 1997Theykinda tackled all three definitions of ‘globalization using IT’
Plan by 1998
More managerial Pressure, prioritization, compensation plans maybe ?
Internal adoption, barriersInfluenceIntegration vs. globalization consolidation and streamlining of global IT across difficult internal barriersCoordination of processes
