Port Research & Logistic Routes
Executive Summary for MediSys Corp.
Introduction - MediSys needs to resolve debate over implementation of modular design in IntensCare in order to achieve project deadlines within competitive time frame. Any delay in achieving project deadlines would result in market share loss as competitors have announced products designed to compete with IntensCare. In order to tackle the competition and preserve the innovative culture of the organization, a parallel system for product development was introduced to fast forward the product development process as compared to sequential product development. However, the company culture & project hierarchy is not yet attuned to facilitate such a transition thus leading to issues in implementation of parallel product development and delay in project deliverables. MediSys is now faced with two scenarios to adopt on the basis of profit realization from the project. It can either invest more money in increasing staff and resolve communication gaps within company or just focus on uniting functional teams to achieve business goals.
Analysis
- Problem - Project deliverables which include timeline and business requirements are not being met
- Key issues
- Communication gap – everybody not on same page
- Organization transition – Improper allocation of resources & understaffing of project
- Unclear business goals – Module demand
Proposal
Company can seek resolution on the basis of projected profit margins for ideal situation, i.e.: when project deliverables are met within deadline. (Exhibit 1)
- Profit greater or equal to $9 m: The Company must increase budget by 50% so as to finish project on time and not lose market share, thus enabling higher revenues and profits. Increased budget is to be directed towards increasing efficiency of outsourced software development team and increasing manpower in the product engineering team. Efforts must be made to rationalize business deliverables to members of project and give equal leadership to Valerie Merz of marketing.
Pros: Strong market position, gain of customer trust and lower payback period
Cons: Higher investment
- Profit less than $9 m: The Company must focus on completing project within budget and launch IntensCare within deadline, with or without modularity function. Efforts need to be made to bring team on same platform in regards to business goal which is capturing market share via meeting customer demands rather than individual team performance.
Pros: Lesser capital involved, lower payback period
Cons: Loss of market share & lower profits
Recommendation– If project budget is to be increased to meet deadlines, then communication with software development team in India must be increased by appointing an experienced personnel from company to be positioned on-site while a manager oversees operations from base location. HR must recruit experienced manpower for software development team and production engineering team to bring project on track. Global team meetings should be scheduled to clarify business goals with one and all. Valerie Merz must be given equal leadership authority as Jack Fogel to make sure business requirements are met. Icebreaking sessions could enhance project productivity. However, if projected profit do not meet target criteria, then the company should focus on just improving communication channels within company, stating the importance of the common business goal. The president must define project parameters, specs and performance characteristics. Key leaders ought to be involved in defining the scope & plan the project at aggregate level so as to dispel fear of Valerie that modularity component of the project will be abandoned after project launch.