Comparison in the besis of IS of Bximco, Square, Renata and Acme Phama

1. AN ANALYSIS OF THE
USE OF IT BY THE
PHARMACEUTICAL
INDUSTRY IN
BANGLADESH

2. Prepared By
Md. Mahabubur Rahaman Student ID: 10364038
Marshal Richard Student ID: 10364057
Rackib Jaman Student ID: 10364069
Tushan Barai Student ID: 10364077
Mashook Mujib Chowdhury Student ID: 10364004

3. Introduction
 Bangladesh has a large pharmaceuticals market with over
2400 hundred crore taka business of more than 175
pharmaceuticals companies
 The top 10% company holds more than 90% of the market
share. Our report follows the top four companies.
 This report will compare the issues regarding the use of
information technology (IT) between the following
pharmaceuticals companies.
 BEXIMCO Pharmaceuticals Limited (BPL)
 ACME Laboratories Limited (ALL)
 Square Pharmaceuticals Limited (SPL)
 Renata Pharmaceuticals Limited (RPL)

4. Introduction
 The report will look at:
 How is the company currently using IT?
 What benefits are they having using IT?
 What drawbacks are they currently facing
with the use of IT?
 How can they improve the use of IT?
 Perform SWOT Analysis

5. Renata Pharmaceuticals Ltd.
Year of Establishment: 1972
Authorized Capital (Taka): Tk. 500 Million
Paid-up Capital (Taka): Tk. 180 Million
Net profit after tax: Tk. 851.428 Million
International Presence:
Afghanistan, Cambodia, Guyana, Jordan, Kenya, Malaysia, Myanmar,
Nepal, Philippines, Hong Kong, Sri Lanka, Vietnam, and United Kingdom
Investment:
100% Shareholding in Renata Agro Industries Limited
100% Shareholding in Purnava Limited
 More then 300 product, like; ANTIMICROBIALS, ANTI-
HYPERTENSIVE, ANTI-DIABETIC , HAIR REGROWTH, EYE-EAR
AND TOPICAL PREPARATIONS, ANTI-TUBERCULOSIS AGENTS
etc.

6. IS Scenario
 Managers use IT as one of the many tools to cope with
change
 Uses computer hardware, software, storage, and
communication technology for its IT work
 Uses both manual and computerized information systems
 Computerized system includes
 barcode scanning
 handheld devices
 an intranet connection
 the Internet
 many pieces of software for tracking packages, fee calculation,
and customer account maintenance as well as managing
logistics
 Its main focus is in supply chain management.

7. IS Scenario
 Two main goals of the supply chain management are
 to take full advantage of both the efficiency and effectiveness of
the entire supply chain for everyone’s advantage
 to maximize the opportunity for the customer purchase by
ensuring sufficient stock levels at all stages of the process
 SAP ERP system have helped Renata manage its total
supply chain
 Such systems include modules to help manage the entire
supply chain and interact with suppliers
 Systems are continuously updated to support direct data
interaction with both suppliers and customers, e.g. to
support electronic data interchange (EDI)
 Platform: Windows
 Applications software: ERP – SAP

8. SWOT Analysis
Strengths
 The system is faster, more responsive, and
flexible in ordering, manufacturing, as well
as distributing.
 The need for warehouses near the serving
market has diminished.

9. SWOT Analysis
Weakness
 The use of ERP is only properly used in case
of supply chain management. The other
departments do not use ERP.
 Employees are apprehensive of IT.
 Employees’ skills are less than what is
required.

10. SWOT Analysis
Opportunities
 Integrating ERP systems throughout the entire
organization will allow them to be competitive
in the market.
 Regular training sessions can be provided to
improve employees’ confidence and becoming
familiar with IT.

11. SWOT Analysis
Threats
 Only the supply chain management will be
competitive with the others but not the entire
of the organizational activities.
 The issue of globalization will cause problems
since countries from developed nations will be
having competitive advantage.

12. BEXIMCO Pharmaceuticals Ltd.
 Year of Establishment: 1976
 Authorized Capital (Taka): Tk. 9,100 million
Paid-up Capital (Taka): Tk. 2098.07 million
 Net profit after tax: Tk.1,051.65 million
Number of Shareholders: Tk. 93,371
 Beximco Pharma is the flagship company of Beximco Group, the
largest private sector industrial conglomerate in Bangladesh.
 Only Bangladeshi company with an AIM listing on the London Stock
Exchange.
 Its state-of-the-art manufacturing facilities have been certified by the
global regulatory bodies such as TGA (Australia), GCC (Gulf
Council), ANVISA (Brazil) and INVIMA (Colombia).
 The only pharmaceutical company in Bangladesh to enter the US
market through the acquisition of an Abbreviated New Drug
Application (ANDA) for a product.

13. BEXIMCO Pharmaceuticals Ltd.
 The company has a visible and growing presence in
emerging markets, including Malaysia, Kenya, Singapore,
Myanmar, Sri Lanka, Nepal, Nigeria and the Philippines.
 It has received the National Export Trophy (Gold) on three
separate occasions for its outstanding contributions to the
country’s pharmaceuticals export.
 Achieved 33.33% sales growth over 2009, outperforming
industry growth of 23.81%.
 The company is consistently producing more than 400
products in different dosage forms covering broader
therapeutic categories which include antibiotics,
antihypertensives, antidiabetics, antireretrovirals, anti asthma
inhalers etc,

14. IS Scenario
 Supporting hardware, developing and maintaining software,
and all types of system support at the head office, factory, and
the distribution centers
 Work of the MIS Department:
 Taking care of total automation
 Hardware and software network support for the company and factory
 Providing services through SNA Server, WIN NT Server, and SQL
Server
 The operational headquarter is linked to the corporate
headquarters through fiber optic cable
 Also developing the access control & attendance monitoring
system internally
 Maintains the radio-link between the factory and the head office
and all distribution centers through dial-up Internet

15. IS Scenario
 The In-house Software Development & Maintenance of the
MIS department deals with
 software design and development (such as their entire database)
 monitoring the task of software (a post implementation task)
 updating the databases and software if necessary.
 This department identifies each department’s requirement and
develops the application on continuous basis
 Applications are in separate modules, but the company is going
to integrate them and convert into an ERP
 Uses: for sales analysis, credit collection monitoring, etc.
 Platform
 Windows
 DOS (disk operating system)
 Programming language: Visual Basic and FoxPro
 Applications software: DBMS – MS SQL Server and FoxPro

16. SWOT Analysis
Strength
 Technology is present virtually everywhere in the
organization.
 Since the developers are within the organization,
maintenance costs are very low.
 Developing own software means that the programs can
be customized according to own needs.

17. SWOT Analysis
Weakness
 Databases based on the prototyping method
 There is no formal Software Requisition System present
in BPL.
 Different departments are informally using different
software.
 Projects are incomplete and there is no intention for
completion

18. SWOT Analysis
Opportunity
 Using commercial, well-tested, and up-to-date ERP
systems so that they can compete in the same level as
other companies who are using modern systems.
 Usage of ERP systems also provide a “centralized”
concept which can help in communication, sharing of
information, etc.
 Provide training sessions to its employees to get fully
accustomed to the use of technology and also have the
will to do so.

19. SWOT Analysis
Threats
 Local competitors who have been using ERP
will have severely competitive against them.
 International companies looking to do
businesses in the country will already be likely
to have great advantage at least in terms of
technology.

20. Square Pharmaceuticals Ltd.
Year of Establishment: 1958
Authorized Capital (Taka): Tk. 5,000 Million
Paid-up Capital (Taka): Tk. 1207.22 Million
Net profit after tax: Tk. 2,532.055 Million
Number of Shareholders: Tk. 19,617,390
 Largest pharmaceutical company in Bangladesh and it
has been continuously in the 1st position among all
national and multinational companies since 1985.
 Square Pharmaceuticals Limited develops, manufactures,
and markets drugs for the health care of various living
species primarily in Bangladesh.

21. Square Pharmaceuticals Ltd.
 The company also provides local anesthetics, other anti-
bacteria’s, other beta-lactic antibiotics, penicillin’s and
cephalosporin’s, NSAIDs and antigun preparations,
quinolone antibiotics, respiratory tract preparations,
systemic antifungal, antiviral and anti-protozoan agents,
systemic hormone, systemic sex hormone, thyroid therapy,
topical preparations, vitamins and minerals, and water
purification products.
 Exports its products to Europe, Asia, Africa, and South
America.
 Square enlisted as UNICEPs global supplier.

22. IS Scenario
 Initially used computers for supporting, developing and
maintaining their own software, and all types of system
support within the departments
 Only recently they started using SAP for its production
related activities
 IT department takes care of automation of the company,
supporting hardware and software
 Hardware: Repair & maintenance
 Software: Developing, maintaining, and monitoring the
function of software and updating databases and software
if required
 Support: Installation, system support, presentation
support, troubleshooting

23. IS Scenario
 In a similar manner to BPL, SPL offers services
through WIN NT Server and SQL Server.
 Analysis their department, we find that the
company is using the following platforms,
programming languages, and applications
software.
 Platform: Windows
 Programming language: Visual Basic
 Applications software: DBMS – MS SQL
Server, ERP – SAP

24. SWOT Analysis
Strength
 The company will be getting used to SAP
 Usage of SAP enables them to be competitive
with others using the same technology.
 It also gives them competitive advantage
against those who do not use the modern
technology.

25. SWOT Analysis
Weakness
 Only one department uses ERP; the others will not be
efficient.
 Lack of use of sophisticated software (simple XLS
sheets to maintain data for quite complex operations
like monthly and yearly data for their work,
departmental budget monitoring, purchase records etc.)
 Most of the programs are stand-alone (they are isolated
and are being used only by a specific department)
 Fear or nervousness is present among employees
regarding the use of technology

26. SWOT Analysis
Opportunities
 Since a department will be already familiar with SAP
ERP, integration to other departments will be relatively
easier. Total integration will mean that they will be in a
greater competitive advantage than others.
 Constant training sessions will enable the company’s
employees to get over their fear/nervousness of IT.

27. SWOT Analysis
Threats
 Only the production department will be
competitive with the others but not the entire
organizational activities.
 The issue of globalization will cause problems
since countries from developed nations will be
having competitive advantage.

28. ACME Laboratories Ltd.
Year of Establishment: 1954
Since it is not a listed company, the financial details
were not possible to obtain
 Second largest manufacturer and exporter of
Human, Herbal and Animal Health
Pharmaceutical Products in Bangladesh.
 ACME is exporting medicines to several countries
in neighboring South-East Asia, Africa, Middle
East and the EU, maintaining a philosophy to
ensure 'Health, Vigour and Happiness' for the
whole mankind within its means and resources.

29. ACME Laboratories Ltd.
 Sales wise Afghanistan is the top among the 11
countries ACME is exporting to with a growth rate of
55%.
 MOU signed for mutual business interest with the
Himalaya Drug Company of India.

30. IS Scenario
 The company provided us with a document named “IT
Security Policy”
 This lists the rules and regulations for an “IT User”
 It lists a wide range of security features including frequent
changing of passwords, usage of removable devices, use
of email, etc.
 This shows us that they seemingly have a well-organized
system of the use of IT
 Current use of IT includes
 automated buying process
 first accounts
 Inventory
 sales

31. IS Scenario
 All their departments are interconnected using a
virtual private network (VPN)
 Such networks have advantage of increased
security, as outsiders will not be able to breach
in due to built-in firewalls
 ISP: Link-3 (provides broadband connection)
 Uses an ERP systemPlatform: Windows
 Programming language: Developer 2000 and
Content-2
 Applications software: DBMS – Oracle
Database (XP) and Office suits

32. SWOT Analysis
Strengths
 All transactions through computers
 Lack of errors
 Better control
 Maintaining discipline
 Reduction of documents
 Fixing double entry problem, and so on.

33. SWOT Analysis
Weakness
 All information are not online since the current
day’s data will be updated the next day (a sudden
loss in between will cause data to be lost.
 Workforce skill is not up to what is required.
Training sessions need to be conducted.
 The infrastructure of the departments suffers due
to low bandwidth of the network.

34. SWOT Analysis
Opportunities
 Improving the VPN system to increase
bandwidth.
 Applications may be improved so that they are
compatible with any browser.
 Constant training sessions will enable the
company’s employees to get over their
fear/nervousness of IT.

35. SWOT Analysis
Threats
 There is no e-commerce facility currently.
Hence any company using such service will be
at an advantage.
 Companies from developed countries seeking to
do business in Bangladesh will create problems
when ALL tries to compete with them.

36. Conclusion
 We have found that the use of IT does not affect the
companies’ profit margins, value chain, inventory
management, and various types of marketing
procedures
 The reason for this may be because of the late use
of modern technology thereby it is not possible to
properly evaluate the impact of IT
 From our course, Information Management, we
learn that IS is helping in various ways to help
companies leverage their profit.
 Even the top companies of the world are getting
benefitted by using IT.
 Bangladeshi companies are lagging way behind

37. Conclusion
 Most important reason is lack of using IS technology;
proper planning, monitoring, budgeting, lack of
knowledge, etc. are missing.
 Our top ten pharmaceutical companies are now competing
globally exporting their products to more than 30
countries around the word
 For competing with foreign pharmaceutical companies,
our companies need to develop their ICT
 So far the way they use ICT is not sufficient. Although
these companies have made good profit margins, they
would make even greater levels with proper use of IT
 Good news is that they are realizing it and are trying to
adopt modern technology
 It can be expected that after two years or more, we will
see a good result being produced.

38. Recommendation
 Main problems: employees’ fear or uneasiness
with technology, the current technology not
being fully up-to-date when compared with
international companies, and also the choice
of a proper technology, namely ERP
1. Fear of technology
 Regular training sessions are required
 Such sessions will educate the people so that they
understand that IT is nothing to be apprehensive
about; it rather creates an advantage

39. Recommendation
2. Up-to-date technology
 Once people are used to IT, upgrading or updating
to newer and better systems become relatively
easier
 New trainings will be required
3. Use of ERP
 A well designed ERP helps a business flawlessly
combine key computer applications
 Purchase of such software from major software
giants like SAP, Oracle, and IBM

40. Thank You

41. Any Question ?