Richter Case Study Example | Topics and Well Written Essays - 1750 words

Richter - Case Study Example The subsequent change in the political landscape meant that Richter’s market was largely restricted to the countries behind the Iron Curtain and it was only with the breakup of Russia into the newly created CIS states that it has been able to extend its reach to the Western nations and indeed, the rest of the world. Richter has been known for its work in the areas of oral contraception, cerebral oxygenation enhancers and products dealing with schizophrenia. Its success in creating generic drugs as well as APIs for other generic companies has enabled it to expand operations and production, storage and distribution facilities in Poland and Russia. However, the expansion has been putting increasing demands and pressures on the available IT infrastructure, IT support and IT project development teams as well as the direct reports for the affiliate businesses. The company’s CIO, Vince Szucs is faced with bringing up the need for changes in the customary June meeting with seni or management that addresses the IT plan and budget for the year. At the same time, the CIO is concerned that the changes should not result in the cost of IT exceeding 1.5 percent of sales for the company. Of course all decisions for the IT plan and initiatives should be considered in the context of the firms strategy, technological infrastructure and existing business systems such as the SAP R/3 modules already implemented in the company. The IT plans to be presented and initiatives that need to be considered by the CIO and senior management will undoubtedly depend on the value that the company attaches to its present MIS under SAP/R3. Any budgeting process in a large organization like Richter would be a selling and negotiation process for resource allocations from the budget that was created out of sales and profits. In any large organization, departments usually compete for resources on the basis of their performance and established needs. It is up to the CIO