Managing Technology Assets Pays Off for American Home Products

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Presentation transcript:

Managing Technology Assets Pays Off for American Home Products Jaime Oberg Bismarck Site

Executive Summary AHP managed IT assets chaotically Bluestone and team changed software and hardware and procedures Eliminated duplication of PC procurement Asset management systems will change to support software applications through ASP’s

AHP loss and profit margins In 1998 the profit of $2.5 million In 1999 loss of $1.2 million $13.5 billion annual sales

Lawsuits October of 1999 Fen-phen lawsuit 200,000 former fen-phen users On January 3, 2002, a national settlement, valued at $3.75 billion fen-phen

AHP computer assets Derek Bluestone New pharmaceutical division’s mgr global IT Changed how division’s managed asset records Estimated $1 million savings in 3 years 1998 selected new software Argis, NetCensus Implemented in all 20 U.S. pharmaceutical divisions

Competitors GlaxoSmithKline Pfizer Forest Laboratories Bayer Abbott

Conclusion Takes time to establish an asset management system Pharmaceutical division operates with single system for recording and managing all hardware and software assets They selected Argis and NetCensus to use

Recommendations Team should understand the business that the IT serves, business goals and objectives Need to identify current technology serving the business Determine criteria for choosing a system based on new functions Implement new system in a phase type manner

Questions??