Mdcm, Inc. (a): It Strategy Synchronization

3512 words 15 pages
For the exclusive use of X. LIU

KEL170

MARK JEFFERY AND JOSEPH F. NORTON

MDCM, Inc. (A):
IT Strategy Synchronization

Introduction
MDCM, Inc., one of the world’s largest contract manufacturers for medical devices, had just announced its fifth consecutive quarterly loss. The firm posted revenues of $1.12 billion with net losses of $33 million for the second quarter of 2002. For Max McMullen, this was yet another agonizing episode since he took over as CEO two years earlier. Despite major company reorganizations, his promises to the shareholders for operational and cost improvements had not been realized. Given the company’s lackluster record, the next twelve months were critical in proving that these promises could indeed be
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The firm’s machine shops were staffed with highly skilled prototype machinists and had won many industry awards for product quality. The company also assisted customers with parts design for manufacturability. Through a joint venture it offered complete printed circuit board assembly, including through-hole and surface-mount, employing state-of-the-art equipment. In addition, the company performed product sterilization through gamma and electron beam irradiation as well as ethylene oxide gas processes. As an adjunct to its medical device contract manufacturing services, the firm designed and fabricated specialized equipment used in the assembly of medical devices. MDCM was renowned for its ability to produce highly customized versions of this equipment for unique applications.

Company Position
MDCM was one of the largest companies in the contract manufacturing and packaging services sector of the medical devices industry. MDCM recognized early that success as a medical contract manufacturer depended on customers’ success with the devices that the company manufactured for them. The firm practically pioneered close partnership arrangements

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KELLOGG SCHOOL OF MANAGEMENT
This document is authorized for use only by Xing Liu in IT Strategy and Policy (Spring 2013) taught by Eleanor Loiacono from January 2013 to July 2013.

For the exclusive use of X. LIU
KEL170 MDCM, INC. (A): IT STRATEGY SYNCHRONIZATION

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