wyeth co. road to globalization and integration

Wyeth Corp.

A step towards integration and globalization

By Erti DhamoManagement Information Systems

Temple University 2009

Who is Wyeth Corp?• Originally founded in 1920 as “Wyeth Chemical Co.”. Periodically evolved

into “American Home Products” holding company primarily composed of 10 subsidiaries. It was mostly present in the U.S. but sales reached overseas markets as well.

Growth of Wyeth

• Primarily Acquisitions

• Licensing of new drugs

• General management style “Meet Your Numbers and we will leave you alone.”

Constant Obstacles1 •Product Delivery

2 •Non-Standardized data

3 •Regulatory procedures

4 •Physical distances

5 •Resistance to changes

COM

PETITION

Incentives towards Globalization

Business processes•Management style•“Local Thinking”

Product Delivery•Identifying enablers•Regulate Inefficiencies

Connect with Global Partners•Streamlined Reporting•Comprehensive data format for all members

Business Processes

•Introduce and facilitate ideas that leverage product development

Manager Workshop

•Promote globalization ideas to managersIntroduce global

thinking

•Create formal systems processes Establish global IT strategy

•Researching outsourcing strategies of current AS400 SystemsOutsourcing

Product Delivery

• Identification of inefficiencies among manufacturers and staff across world

• Explore IT as an enabler to deficiency problems

• Create a business solution model that benefits all company members worldwide

Connect With Global Partners

• Balance production across manufacturing facilities worldwide

• Establishment of Steering Committees• Implement an IT application System– JD Edwards was used extensively on AS400

systems worldwide

First Step

• “The Managers Workshop proved to be an excellent networking event for corporate leaders. Many ideas and processes introduced were similar in conform to ideas generated from other departments.”

Outcome of WorkshopNew motivation for key leaders

Many managers realized the important dynamics of enabling solutions to resolve business deficiencies

IT staff was reluctant due to the fact that most ideas proved too costly or non-beneficial to the Globalization effort.

Second Step

Establishment of Resource Service Centers (RCSs)

Resource Service Centers were established in every country where Wyeth affiliates were present

Henry Garcia integrated IT staff with business concepts

Information Manager/Relationship manager

Streamlined Reporting to Corporate IT

Key Reorganizations

IT MANAGERSBUSINESS

PROCESSESINFORTMATION

MANAGER

RESOURCE SERVICE CENTER (PRESENT IN EVERY REGION)

STEERING COMMITTEE

Third Step

• Establishment of Global Data Warehouse• Primarily used for business data exchange

– Present Software: SAP Corporate Enterprise• Accessible from all global affiliates

Global Data Warehouse

Europe

Africa

Middle EastAsia

North America

South America

Focal Point: Globalization, Standardization, and Integration

• Optimized business

procedures,

comprehensible to all

participating members

• Development of trust

• Inspiration to all

employees as “Global

Employees”