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Moore Medical Corporation Business Case Study

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ISOM 5020 - Information and Technology Management 

Assignment #1

Student Name

Student No.

Mr. Luis Capelo De Almeida


Mr. King Wah Leung (Billy)


Mr. Tsun Hay Chow (Chauncy Chow)


Ms. Jiangning Zhou (Iris)


Ms. Yong Lin (Selina)


Ms. Yinan Liu (Alice)


Executive Summary – Moore Medical Corporation (Moore) Business Case

  1. Business Objective

The mission of this exercise is to determine whether Moore should purchase Customer Relationship Management System (CRM) and 4 new Enterprise Resource Planning (ERP) Modules to enhance demand planning and communication/ interactions with customers in order to provide excellent customer service to the existing ones (such as various practitioners in non-hospital setting) plus potentially more new customers in this growing market.

  1. Key Issues/Problems

In late 1997 – 1998, Moore spent US$7M to implement and launch the current ERP system (“Suite”) with support from J.D. Edwards. Moore’s management were somewhat pleased with its functions but also felt that this system was not fully utilized with following weaknesses:

  1. Complicated process for bids and quotes management
  2. No total marketing campaign solution was offered
  3. Less user-friendly order entry system
  4. Lengthy set up process for new account to customer calls (no review function to check against existing database & duplicated inputs are required)
  5. High churn rate (~30 – 35%) as compared to market average (25%)
  6. Share of wallet is relatively low
  7. Narrow product ranges
  8. Lack of demand planning and forecasting tool
  9. Did not utilize data stored in ERP for value-added activities
  10. Seemed that some user’s requirement was not catered during development stage
  11. Room for improvement in order management (only 68% orders were perfect while the remaining 32% orders had issues on split shipments, back orders & late shipments could be resolved simply with better demand planning/forecasting)

  1. Options for adding CRM and additional ERP modules or not
  1. “Clarify” CRM
  1. Install 4 modules to the existing ERP

(3) Both (1) & (2)

(4) No implementation


  • 5 different applications


  • 100 licenses


  • Technology escrow agreement


  • Annual customer service program


  1. Demand Planning
  2. Warehouse Transfer System
  3. Deal Management
  4. Stock Simulation

By implementing CRM application & any of 4 ERP modules from (1) & (2)

  • No change



* US$300,000/module

From US$892,000 to US$1,792,500



In parallel, Moore should explore website revamp as the trend of online purchases are on the rise. They have been doing good job with catalogues which they could also apply online in a very user-friendly way to facilitate more online purchases.



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