Topic > Wyeth's IT and Globalization - 1267

SynopsisFor much of its history, Wyeth was a holding company that sold a variety of products through about a hundred companies organized into 10 subsidiaries. Wyeth grew primarily through the acquisition of other companies, where the original management was usually retained. In the early 1990s, Wyeth embarked on a strategy to focus the company on the healthcare sector and divest all non-healthcare divisions. The company also began to consolidate operations including manufacturing and staffing functions; however, Wyeth did not have the culture or business processes of a global organization. Wyeth did not have a culture of sharing information experiences among affiliates or comparing performance. Prevailing local thinking and lack of integration were causing operational challenges for global inventory management. Furthermore, the R&D group produced internally developed products that could not be commercialized or manufactured on a local basis. In the late 1990s, after successfully divesting its nonpharmaceutical operations, Wyeth was faced with the challenge of organizing the company into an integrated global entity. An in-depth study and analysis was conducted and the final recommendations were presented to the top management. While there was widespread support, funding was not necessarily available. In the remainder of 1998 and 1999, Wyeth focused on planning and communicating its IT globalization plan that emphasized regional support centers (RSCs). In parallel with the IT globalization initiative, Wyeth was also considering, planning and implementing ERP and SAP implementations. Additionally, a global data warehouse has been introduced to normalize all data and streamline products. In the early 2000s, the globalization of IT... in the middle of paper... of architecture. The implementation of ERP and SAP software was one of the key contributions to a unified system. It led to the creation of a global data warehouse where SAP-generated transactional data and other non-SAP data would be stored. The global warehouse project provided an integrative process of data collection and data normalization in one place. It also featured product streamlining, which allowed franchisees to see what was being produced and when it would arrive. Finally, one of IT's most elusive contributions to globalization has been the global mindset it has created in managers and employees. Thanks to IT, Wyeth had a cultural shift from a “local thinking” company to a globally aware entity. Not only has physical information and infrastructure been globalized, but also intangible resources in the form of workers, managers, and executives.