Role IS Plays in the Pharmaceutical Industry
Information sharing (IS) is essential for any business’s smooth functioning and survival. With the current technological advancements, competition is high and demands practical approaches for sustainable business operations. Thus, small and big businesses have IS technologies that facilitate operations, management, decision-making, team collaboration, and client interactions (Kim & Chai, 2017). Neelkanth Drugs Pvt. Ltd (NDPL) can use IS to collect, store, analyze and manage data from different departments, geographical areas, allied companies, and manufacturers. The information technology (IT) based-ERP solution is an overall system that facilitates business operations and management at a multi-lateral level (Khan & Siddiqui, 2018). Considering India’s production and distribution chain of pharmaceutical products, NDPL needs an efficient information-sharing system to manage the supply and distribution of its products. The pharmaceutical chain of product supply is complex, where products must pass through the clearing and forwarding agent (CFA) and stockist before wholesale companies like NDPL can access the product (Kashyap, 2013). With an efficient IS, NDPL can monitor their stock and order products on time to avoid delays in the long distribution chain.
Information sharing technology helps in stock-taking and management for smooth operations and demand and supply of products. According to Kashyap (2013), NDPL had problems managing bulk stock leading to the late realization of expiring drugs. Using IS database, the company can control the flow of products and return drugs before expiry to avoid losses. Information sharing enables organizations and small business enterprises such as NDPL to collaborate with associates and employees worldwide. With internet connectivity, electronic devices such as computers, tablets, and mobile phones can facilitate communication over long distances (Khan & Siddiqui, 2018). Considering NDPL’s market penetration in India’s significant towns, IS can assist in sharing files, collaborating with co-workers, and remotely accessing information from company devices for effective operations.
Information sharing helps in decision-making through a thorough analysis of market trends, consumer habits, and demands. NDPL serves a broad market, and the products are always in demand for numerous uses. For instance, consumers have varied tastes in beauty products demanding careful analysis and updates on market trends to make informed decisions on sales supply. NDPL can use the information system to track client orders, employee activities, and opportunities for collaboration with manufacturers, super stockists, and retailers (Kim & Chai, 2017). Software applications such as EasySol can assist in the automatic analysis of market trends and managing clients according to their needs
On the same note, IS helps make informed decisions towards strategic planning for the business’s success. Relating to the pharmaceutical company, NDPL can use IS to access the company’s demand, shortcomings, and productivity to find the best development approaches. NDPL can utilize IS to make decisions on the organization’s growth, products to distribute, and managerial duties and functions. Finally, IS enhances the consolidation of data in one platform. Streaming data from a central point enhance easier access and flexibility in sharing information (Kim & Chai, 2017). Clients, employees, and collaborative entities can find needed data in one place, which helps make decisions on products, services, and company ratings without hindrance.
IS and NDPL
Information sharing is vital in the growth and development of an organization. Since the adoption of IS in NDPL, the company’s sales have increased at a rate of 30% annually. According to Kashyap’s (2013) financial report, the company’s turnover was INR 2,420,000,000 (US$38.56 million) in 2013, indicating a considerable increase from INR 1,670,000,000 (US$26.61 million) in 2011. The increase in sales and profits occurs due to computerizing inventory control networks and sales management systems. Further, the company attributes the sales increase to an efficient department for collecting payments and ensuring an updated reconciliation of accounts.
Through IS connection, NDPL’s supply chain had a smooth and constant flow of products creating an efficient supply chain. Once the company automated its operating system with IS, the services for human resources became minimal, leading to employee reduction. Although terminating employees affects their lives due to losing a source of income, the company can benefit significantly with reduced capital on wages. At the same time, the efficiency of information systems is higher than human capital, which increases the company’s productivity. Kashyap (2013) states that the adoption of IS led to a reduction of more than 200 employees, from 400 to 100. At the same time, the company achieved maximum efficiency from 25% to 100%, enhancing the company’s development.
Adopting IS reduced the probability of errors in stock taking, delivery, and processing of client orders. The company replaced the manual approach of taking orders by feeding information into the system, facilitating quick recording, monitoring, and accessibility of information. Thus, minimal errors were recorded in the data processing. Similarly, adopting IS enhanced time management where computerized orders could be billed quickly, reducing the time of manually writing invoices.
How Can NDPL’s Operations Leverage IS
Having an effective information-sharing strategy is a significant achievement in a business. However, digital advancements continue to evolve and require keeping up with the trends for competitive advantage. Therefore, a business must leverage its IS using the available and appropriate technologies for better operations and management. NDPL has an automated workflow that reduces errors and saves time. With the automation in place, employees can focus on other projects and develop new ideas that can positively impact the company’s productivity (Khan & Siddiqui, 2018). Installing specialized software comes with a risk of security threats. Cybersecurity is a significant worldwide crime, with severe financial consequences for businesses (Ogiela et al., 2020). NDPL should have adequate security for safeguarding sensitive data to avoid theft from their servers and software malfunctioning. Information technology offers numerous forms of data protection covering client data and organization information, including collaborating companies (Kim & Chai, 2017). Some security tools include VPN, firewalls and password manager which enhance security and facilitate the smooth flow of business operations.
Distinctly, cloud migration is a trending method in leveraging information sharing in organizations. Numerous businesses are migrating their desktop, web, and mobile applications to cloud software, enhancing the quick accessibility of information anywhere (Park & Park, 2017). Unlike other storage devices such as USB drives that need transportation or movement to access data, cloud computing works with a web connection allowing quick and efficient data retrieval. NPDL can use the software application to manage the vast volume of data on products, employees, supply, affiliated companies, and market trends.
Cloud Computing
Cloud computing is among the trending technological advancements in businesses today. The cloud refers to an all-encompassing system of virtualized information systems. Manvi (2021) defines cloud computing as a virtualized computing system where organizations and individuals can access, manage and store information on a web-based shared platform or application. In basic terms, cloud technology is a contract management system that provides storage and computer processing operations through the internet, which may be accessed from anywhere in the world (Ogiela et al., 2020). The technology has enhanced organizational operations such as data storage, accessibility and sharing of information, and collaborating in the management of computing resources. Conversely, the company does not require physical infrastructure to access the cloud since the service providers allow the business to access the cloud from any location. Thus, organizations only pay for the service delivery saving the cost of physical and IT infrastructure.
Cloud computing technology comprises backend and frontend computing processes. Frontend applications are the visible tools that allow users to operate and access data from the cloud storage system (Manvi, 2021). The applications use internet connectivity to facilitate users’ access to data. Components of backend cloud computing include the servers, databases for storage, and hardware infrastructure such as a computer (Park & Park, 2017). The technology provides cost-effective approaches to business operations. The feature enables a company to function virtually and effectively, lowering the additional costs associated with infrastructure purchase and management (Ogiela et al., 2020). Reducing the expense of purchasing IT infrastructure allows the organization to save capital resources that can be used in other projects enhancing the growth and development of the business.
Cloud computing offers flexible service delivery options to all businesses regardless of firm size. The technological application allows upscaling or downscaling of the service, which fulfills the demands of the business according to their financial resources and needs (Alzakholi et al., 2020). Cloud services provide data security and disaster recovery for their clients. Securing a company’s data is a significant concern today with the rise of cyber security and hacking practices (Park & Park, 2017). With cloud computing, businesses have access to security features such as encryption and data managers, ensuring sensitive data protection. Finally, virtual data availability enables businesses to access information from any place and equipment (Ogiela et al., 2020). At the same time, many users can access information, making communication and collaboration easier. Thus, investors can manage their business regardless of physical presence.
Despite the benefits, cloud computing has several shortcomings that an organization must consider before adopting the service technology. Internet connectivity is a primary concern in cloud computing since the system operates using the web (Manvi, 2021). Disconnection or low internet leads to a slowdown in business operations. Integrating cloud connectivity in a different location or vendor can pose challenges due to incompatibility issues. Thus, changing service providers or relocating can be difficult and lack of integration threatens data exposure. Regarding service delivery, business owners have limited control in cloud computing due to rented services (Alzakholi et al., 2020). An organization must consider the control limits and license agreement before transitioning to the system. Although cloud computing offers data security, sharing sensitive information with a third party risks the business. A business can lose data due to theft, stolen credentials, or misconfiguration, which is a setback in the organization’s development.
Failure of the Cloud-Based Solution Implemented at NDPL in 2010
The pharmaceutical company failed to implement the first cloud-based solution due to inexperienced IT personnel. Although the hired IT experts had knowledge about information technology and installing the cloud computing components, they had inadequate experience creating an efficient end-to-end cloud system. Implementing cloud-based ERP involves the installation of numerous moving parts that are interdependent. All interdependent components need mapping and proper timing for migrating information to avoid overlapping and mix-ups while operating applications (Alzakholi et al., 2020). Thus, the software had problems reading bar codes and generating customer invoices, which was the first indication of an implementation failure.
Consequently, NDPLS cloud-based ERP was a failure due to connectivity challenges. Internet connectivity is a significant challenge in the efficient operation of web-based cloud computing software systems. Storing, managing, retrieving, and sending data require an active web connection. Since the company chose separate companies to provide internet services and the other to vend cloud computing services, it became a setback due to incompatibility.
Is Cloud-Based ERP the Right Solution for NDPL
Cloud-based ERP is the appropriate solution for NDPL. Considering the high financial investments incurred for purchasing software and hardware since 2006, the company might have financial strains as the trend continues. Cloud computing offers affordable services with less to no expenditure on hardware and software infrastructure. Thus, utilizing software as a service provides for effective data storage, administration, and accessible across a large geographical region (Ogiela et al., 2020). Although Hybrid ERP software offers more options such as allowing a business to utilize cloud and onsite data management, the cost of implementation may be higher for NDPL. As a growing company, cloud-based ERP is appropriate to leverage the existing IS system. The recommended action is for the company to try re-initiating the cloud computing software using experienced individuals and new strategies to approach the initiation. For instance, the company should find specialized vendors who have worked in the same business set-up to identify the gaps and way forward in re-initiating the technology.
References
Alzakholi, O., Haji, L., Shukur, H., Zebari, R., Abas, S., & Sadeeq, M. (2020). Comparison among cloud technologies and cloud performance. Journal of Applied Science and Technology Trends, 1(2), 40–47.
Kashyap, M. (2013). Information system strategy at Neelkanth drugs. India.
Khan, A., & Siddiqui, D. A. (2018). Information sharing and strategic supplier partnership in supply chain management: A study on pharmaceutical companies of Pakistan. Asian Business Review, 8(3), 117–124.
Kim, M., & Chai, S. (2017). The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective. International Journal of Production Economics, 187, 42–52.
Manvi, S. (2021). Cloud computing: Concepts and technologies. CRC Press.
Ogiela, L., Ogiela, M., & Ko, H. (2020). Intelligent data management and security in cloud computing. Sensors, 20(12), 3458.
Park, J., & Park, J. (2017). Blockchain Security in cloud computing: Use cases, challenges, and solutions. Symmetry, 9(8), 164.