Caregroup Case Study: Three-Way Merger

Words: 1105
Pages: 5

Khang Vo
B BUS 489
Case 1 Write up
CareGroup Case Study

The synopsis of this is case study is that CareGroup had IT related problem. CareGroup was formed as part of a three-way merger. Due to this merge, there were three independent hospitals that had to become a single entity. Originally in 1998, each of the three hospitals had their own information systems that did not connect to each other. By 2002, all the hospitals were now connected under one unified information system. This was one of the “glittering success” of this merge was the creation of an integrated information system that linked the entire group together. This issue at hand was that a lone software researcher that left a program running too long and that crashed the system.
…show more content…
There are many times when users are self-taught and think that they can solve a problem. In this case, the researcher who set the rogue program could be considered one of these users.
Lesson 5: After the network outrage, it shows that having a rigorous network change control would have helped control the damage to the network. This establishes a routine of implementing new technology into the system and helps review all the changes.
Lesson 6: Adapting is part of growing. When a company like this one has a merger where so many systems are mishmashes, it helps to pay attention to all the systems and to know what each process and step does.
Lesson 7: Balancing between what the customer wants and what is manageable is common in business and in common sense. Up to a certain point, a company can bend over backwards for a customer, but its only up to the point until the customer costs too much to maintain.
Lesson 8: Having a backup system that one will have confidence in is an important factor as well. What that means is that just having a backup system doesn’t inspire anything. This is what happened to CareGroup. They did not routinely check on their backup systems often enough to make sure that it works
…show more content…
In any aspects of a business, having an expert in the field review a company’s work is very common. For example, public accounting firms audit financial statements. Another business solution is to have a balance between customer centric and being managerial about costs. If it has too high of a cost to maintain a customer, it would time to let them go and find someone else. Another lesson learned that is very business orientated is to learn how to adapt to outside externalities. In this case it’s the systems that needed to be merged that caused issues that weren’t anticipated. A business example is how markets are constantly changing and just because a company is doing extremely well, it does not meant that they can anticipate all the changes of a