2. HISTORY
Started in 1901 by Gedeon Richter by the name Sas.
Company known for its innovation.
From 1901 to the end of war, 86 patents were done.
By the 1960s, Richter was the prominent supplier throughout the Soviet Union.
3. First oral contraceptive in 1966.
Cavinton, a cerebral oxygenation enhancer for the CNS in 1977.
In the early 1990s, it faced tough competition.
Eric Bogsch focused on the company’s specialty and brought many reforms.
4. RICHTER IN 2007
Hungary’s largest pharmaceutical company.
It sold drugs to nearly 100 countries.
Three major categories of products:
Generic Drugs
Company Developed Compounds
Licensed-in products
Two domestic production facilities, at Budapest and Dorog.
Active manufacturing capabilities in 4 countries.
6. HISTORY OF IT AT RICHTER
No Integration among different functional domain
Improper IT infrastructure
No centralization
No proper goal measurement in system.
7. SAP-FIRST WAVE
Implementation Module:
1. Finance and accounting-Financial data becomes more reliable.
2. Asset Management
3. Controlling-More integration among functional department
4. Sales and Distribution module
8. SAP-SECOND WAVE
Reasons:
Y2k problem
Expansion of Web
Internationalization
New Modules:
Material Management
Production Planning
Cross functional team structure to integrate system.
Problems:
Record tracking
Different bussiness process in SAP module
9. MAJOR IT INITIATIVES FROM 2000-06
IT Department installed different software applications:
Document Management System
SAP Business information Warehouse
Additional SAP Modules in Hungary
Rollout of SAP in Romania and Poland
10. DOCUMENTUM: DOCUMENT MANAGEMENT
SYSTEM
Purpose: Managing paper requirements in seeking regulatory approval on drugs. Main
objective was to allow researchers and regulatory lawyers to find millions of documents
through different search functions
Run off an SQL database
Customized by Richter’s IT Staff and external consultants
11. CHALLENGES
Getting all the old data into the new database without even a single record being missed
out
To regulate the level of customisation.
12. SAP BUSINESS WAREHOUSE (BW)
Required to ease the consolidation of Richter’s various legal entities and to give Richter a
wider planning capability
Went live in 2005.
Replaced a 100 MB excel spreadsheet containing financial information.
Helped in reducing the time required to consolidate all the financial data to less than a
day.
BW’s close integration with other SAP basic financial modules gave it a competitive edge
over other business intelligence products.
13. SAP EXPANSION
2002: SAP financial modules (FI, CO, AM) launched at Romanian affiliate (Armedica)
2003: A dedicated team of 12 SAP specialists added new modules QM, APO, HR to
Hungarian operations.
2005: Dedicated servers for Romanian operations were moved to Romania because of
inconsistent network connectivity.
SAP expanded into Polish affiliate.
14. SAP EXPANSION TO POLAND
Richter’s IT team setup 10 servers for 4 SAP Modules (FI, CO, AM and SD)
Servers later shifted to Poland upon completion
Challenges:
Language Barrier between Poland and Hungary caused inconsistency.
15. Snapshot of IT Governance as of 2007
IT Governance
IT Infrastructure
Technology
Network
Hardware
Software &
Procurement
IT’s support of
business processes
Organization of IT
department at
Hungarian head
office
16. IT 1- year plan, which was presented in June every year.
Developed by: Szucs + other IT specialists.
Focus: “How IT would support Richter’s business
processes by stipulating ongoing maintenance
projects, investments and changes to infrastructure
& staffing”.
Major infrastructure decisions: Szucs
Affiliate level: Plans were presented by affiliate’s CEO during
June of each year.
For larger projects
Steering Committee = Head of each dept + Szucs + IT Specialist
+ External consultant
17. INFRASTRUCTURE
Entire company connected via VPN (Virtual Private Network).
Formed major policies to reduce misuse of Internet.
Total 130 servers
110: Located at company’s HQ in Budapest
20: Affiliates
120 servers (Windows) + 10 servers (Unix)
Over 6000 PCs
Warehousing trucks with bar code technology.
No mainframe
18. BUSINESS PROCESS SUPPORT
Senior management decides the implementation of SAP modules for major projects.
Several weighted factors were considered:
Cost
Projected savings
Improvement to processes
20. QUESTION 1
Expansion of infrastructure, servers and database.
Problem of increased sales volume.
Outsourced the help desk.
Outsourcing the new technology ???
21. QUESTION 2
Centralization of IT in Hungary
IT infrastructure in Romania
Cost and Benefits of IT infrastructure
Failure and Risk Management
Expansion of Company with Centralization???
