IT Financials and Evolution of NDPL

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Questions and Answers

What was the total expenditure on hardware in the year 2008-09?

482000 INR

2760000 INR

2000000 INR

1500000 INR (correct)

In which year did the software expenditure first exceed 900000 INR?

2010-11

2009-10

2008-09

2011-12 (correct)

Which year recorded the highest total expenditure across both hardware and software?

2011-12 (correct)

2009-10

2007-08

2006-07

What was the approximate percentage increase in software expenditure from 2006-07 to 2007-08?

100% Signup and view all the answers

How much was the software expenditure in 2005-06?

50000 INR Signup and view all the answers

What was the total hardware expenditure in 2010-11?

1500000 INR Signup and view all the answers

Which year's hardware expenditure was lower than any other year listed?

2003-04 Signup and view all the answers

What was the combined expenditure on hardware and software in 2009-10?

1393000 INR Signup and view all the answers

What was the estimated number of stockists in India?

70,000 Signup and view all the answers

What percentage of pharmaceutical sales in India are attributed to retailers?

70 to 80 percent Signup and view all the answers

What types of operations did traditional retailers in India usually run?

Family-run firms and chain enterprises Signup and view all the answers

Which of the following is characteristic of new age pharmacy retail chains in India?

They provide value-added services like free home delivery. Signup and view all the answers

What expansion did NDPL experience shortly after its inception?

It began to reach north, south, and west Delhi. Signup and view all the answers

How did NDPL's ordering system change with the introduction of information technology?

It allowed for booking orders from small chemists as well. Signup and view all the answers

How many chemists did NDPL cover at the time of the information provided?

1,300 chemists Signup and view all the answers

What conflict arose between new pharmacy retail chains and traditional retailers?

Price competition Signup and view all the answers

What was one major effect of the manual system on NDPL?

Delayed product returns to parent companies Signup and view all the answers

What was the first step NDPL took towards IT implementation?

Introduction of information sharing in the finance and sales departments Signup and view all the answers

How much was invested in IT during the early stages of implementation from 1998 to 2001?

INR 80,000 to 100,000 Signup and view all the answers

What was the impact of IT implementation on NDPL's workforce?

Reduction in workforce from 400 to 100 employees Signup and view all the answers

What software was used by NDPL during the initial phases of IT implementation?

FoxPro and Visual Basic Signup and view all the answers

In what year did NDPL replace the manual system of order-taking?

2002 Signup and view all the answers

What improvement did the new order-taking system bring?

Faster processing of orders Signup and view all the answers

What was one of the key challenges faced by NDPL regarding its manual system?

Complicated expansion due to resource management Signup and view all the answers

What was one of the initial issues NDPL faced when using the cloud software?

An inability to read certain barcodes Signup and view all the answers

What was a significant reason for the failure of NDPL's experience with cloud computing?

The cloud vendor had limited experience in the relevant industry Signup and view all the answers

What major consequence did NDPL face when the network went down during peak store activity?

Manual generation of bills and invoices Signup and view all the answers

How many unique products did NDPL have that complicated the use of the new software?

25,044 Signup and view all the answers

Which of the following was NOT a part of the cloud-based solution involving NDPL?

A local hardware supplier Signup and view all the answers

What issue prompted the management team to decide on integrating modules and centralizing databases in 2004?

Data redundancy and inconsistency Signup and view all the answers

What was the primary advantage of introducing the computerized system in 2006 for bill generation?

Faster processing time Signup and view all the answers

What change was made to server configurations as the company grew from 2007 to 2009?

Application servers were separated from the data server. Signup and view all the answers

How much did the expenditure on software increase from its initial amount to 2009?

INR 150,000 Signup and view all the answers

What technology was introduced alongside the new servers to enhance connectivity?

Wireless local area networks Signup and view all the answers

Which statement accurately describes EasySol software?

It supports the needs of multiple sectors including chain pharmacies. Signup and view all the answers

How many total servers were there by 2009, after the new installations?

Four servers Signup and view all the answers

What function did the new servers primarily serve after the 2007-2009 expansion?

Data storage and performance improvement Signup and view all the answers

Study Notes

IT Financials of NDPL

NDPL's IT hardware expenses have grown over 8 years, from INR 300,000 in 2003-04 to INR 482,000 in 2009-10.
NDPL's IT software expenses have also increased over 8 years, from INR 200,000 in 2003-04 to INR 300,000 in 2009-10.
NDPL's IT investments have not mirrored a linear growth trend with a dip in 2007-08

Evolution of NDPL's IT Systems

Initially, NDPL used a manual system for order-taking, using executives to visit retailers and record orders.
The company began to computerize its operations in 1998, starting with finance and sales & purchase divisions.
Standalone terminals were used in these departments, leading to a reduction in the number of employees needed and an operational efficiency increase.
By 2002, a telephone system was integrated, and an operator took orders from retailers.
In 2004, with business expansion and data redundancy, NDPL moved towards centralized databases, using servers and EasySol software.
2005-2006 saw Electronic data exchange with parent companies (manufacturers), automating purchase orders and bill generation.
Continued growth in 2007-2009 led to the introduction of IBM servers, separation of application and data servers, and thin clients, along with wireless local area networks.
By 2009, computerization had been implemented across most departments, with both internal and external electronic interactions.
NDPL's IT expenditure increased significantly from 2003-04 – 2009-10, reflecting their increasing reliance on technology for operations.

NDPL and Cloud Computing

NDPL experimented with cloud computing to manage its retail format, attempting to use it across 10 stores as a pilot project.
This initiative faced significant challenges, with issues in barcode reading, network outages, and inability to read some items.
The cloud vendor's limited experience in the pharmaceutical industry, coupled with NDPL's unique product portfolio (25,044 products and 250,000 stock keeping units) contributed to the failure of the pilot project.
NDPL's cloud computing attempt was a failure due to connectivity issues and the vendor's inadequate understanding of the pharmaceutical industry requirements.

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Description

Explore the financial growth of NDPL's IT hardware and software over an 8-year span, as well as the evolution of their IT systems from manual operations to computerized efficiency. Understand how NDPL adapted its technological needs in line with business expansion and operational changes.