Case Detail

Case Summary

MDCM, Inc. (B): Strategic IT Portfolio Management

Case Number: 5-404-770(B), Year Published: 2006

HBS Number: KEL172

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Authors: Mark Jeffery; Derek Yung; Joseph Norton

Key Concepts

Portfolio Management, Business Objectives, Strategic Alignment, IT Strategy, Score Card, Business Strategy, IT Management, Manufacturing, Medical Devices

Abstract

The MDCM, Inc. (B): Strategic IT Portfolio Management case examines the steps involved in developing a portfolio of IT projects aligned with a company’s strategic objectives. Specifically, the case describes a situation where a firm has launched a transformation strategy but has yet to develop a complementary IT strategy. Students must select the optimal portfolio of projects aligned with the strategic objectives and define the global project execution strategy. The projects have both risks and dependencies. U.S.-based MDCM, Inc. specializes in medical device contract manufacturing and assembly. For the past five years, MDCM had grown by making over twenty acquisitions of companies based outside of the United States. This growth strategy enabled MDCM to better match its services to its customers who have become larger and more global. In MDCM, Inc (A) the CIO of MDCM, needed to determine the company’s IT strategy and objectives. In doing so, he needed to ensure that they were properly aligned with the company’s overall strategy and the new organization developed under an initiative called Horizon 2000. In a lecture prior to the cases, students were introduced to the framework of IT portfolio management and how it can help in focusing IT efforts. In MDCM Inc (B) the CIO has performed an audit of the MDCM’s IT and found twelve projects that are potential investment candidates for the next three years. The challenge for the IT Portfolio Management team is to identify the priority and appropriate sequence of investments to be made. The case assumes that students have knowledge of corporate IT. More specifically, the case is targeted for those who are or plan to become executives who would manage IT strategy and IT investment decisions either directly or in an oversight role. This case is the second case in a series; the first of the series is the case MDCM, Inc. (A): IT Strategy Synchronization. These cases were originally developed for the Kellogg executive program Driving Strategic Results through IT Portf

Number of Pages: 8

Extended Case Information

Teaching Areas: Management, Manufacturing, Operations, Strategy, Technology

Teaching Note Available: Yes

Geographic: US

Industry: Medical Devices

Organization Name: MDCM, Inc.

Organization Size: Large

Decision Maker Position: CIO

Decision Maker Gender: Male

Year of Case: 2002