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Richter: IT at Hungarys

Largest Pharma
SEC D - GROUP 2

Analysis of current IT
governance
Decision
Domain /
Archetype
IT Principles IT
Architecture
IT
Infrastructure
Strategies
Business
Application
Needs
IT
Investment
Business
Monarchy

IT Monarchy
Federal

IT Duopoly

Feudal
Anarchy

IT decision were taken with consultation from top management
IT architecture was developed by taking inputs from IT managers and IT leaders
IT departments and other departments identified business development needs
Their IT Strategy which was aligned to the business strategy
IT investment decision were taken by CIO along with consultation from CFO and other top
management
Evaluation of current IT
governance

1. Information Systems is not completely centralized which limits the growth opportunities for
Richter.
2. IT departments staff reports directly to affiliate management with a dotted line reporting
central Hungarian office
3. Not able to meet the increased demand of service. With the employee growth, number of PCs
have grown and correspondingly the demand for services have also increased
4. Maximum annual IT budget is 1.5 % of the companys sales
5. Design and implementation of applications and new technologies increase the workload of IT
staff



Recommendations to
Szucs for the next year

1. The way IT is budgeted has to be changed
2. IT has to be standardized, which can be achieved with the help of a
group that will work on it with Richter
3. SAP can be implemented in India and Russia
4. CEO of the Romanian affiliate must take a consultative approach
while making decisions regarding IT infrastructure

Information Technology
Structure for growing demands
1. Additional managers should be hired into the IT department to deal
with the increasing demand
2. Rest of the organization other than help desk must be served
through design and implementation of applications and new
technologies to cater to the increased service volume
3. New technologies like IP phones can be outsourced to reduce the
pressure on IT infrastructure
Centralization of affiliates
IT departments
1. As of now, only international staff members involved in SAP report
directly to the Hungarian head office
2. These staff members are happy to help affiliates who currently
report to the central office through the affiliate management
3. Since no one finds a conflict in the affiliates directly reporting to the
head office this change should be done

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