Introduction:

In 1888, Dr Wallace C. Abbott started a worldwide powerhouse in the healthcare industry: Abbott Laboratories. [1]. It is renowned for its broad and diversified portfolio of healthcare products, medications, diagnostic tools, dietary supplements, and high-tech medical equipment [1], [2]. With a significant presence in over 160 countries, Abbott Laboratories has effectively leveraged the power of its diversified business lines to cater to various healthcare needs [3]. The organisation has been at the forefront of healthcare innovation and quality because of its dedication to these values, with a revenue of $43.1 billion, a 24% increase from the previous year’s income[4]–[6].

Like other pharmaceutical companies in the contemporary digital age, Abbott Laboratories increasingly relies on Information Systems (IS) and Information Technology (IT) to drive efficiency, innovation, and strategic decision-making [7], [8]. IS and IT are used throughout the pharmaceutical value chain, from R&D to manufacturing (R&D), production, supply chain management, sales and marketing, regulatory compliance, and customer service [9]–[11].

In R&D, IS and IT facilitates the data-intensive drug discovery and development process, enabling researchers to handle vast amounts of data, conduct complex analyses, and accelerate the time-to-market of new products [12]–[15]. In production, sophisticated IT systems ensure precision, quality control, and traceability, which is crucial in a highly regulated industry like pharmaceuticals [16]. In supply chain management, IT solutions enhance logistics efficiency, inventory control, and demand forecasting [17]. In sales and marketing, IS aids in analysing market trends, customer preferences, and the competitive landscape [18]. In regulatory compliance, IT systems help manage the vast data required for regulatory submissions and track regulatory changes [19].

Moreover, in the era of personalised medicine and digital health, IS and IT are pivotal in transforming healthcare delivery [20], [21]. Advanced analytics, artificial intelligence, machine learning, and other cutting-edge technologies enable the development of personalised therapies, remote patient monitoring solutions, telemedicine services, and digital therapeutics [22]. In this context, Abbott Laboratories’ strategic investments in IS and IT can enhance its operational efficiency and competitiveness and unlock new opportunities for growth and innovation [23].

This report explores how Abbott Laboratories can further harness the power of IS and IT to achieve its strategic goals. It will analyse the value derived from the company’s current portfolio and evaluate techniques for assessing future IS investments. The paper will also cover how Abbott may build an IS strategy that meshes with its business plan and the advantages that might result from doing so. In addition, it will cover the role of corporate process re-engineering in maximising the potential of IS and IT inside the organisation and analyse the strategic potential for further investing in IS and IT at Abbott from a divisional and company-wide viewpoint [24].

Current Portfolio Analysis and Future IS Investments:

Analysing the current portfolio of Abbott Laboratories reveals its strong presence across diversified healthcare sectors. These sectors include Diagnostics, Medical Devices, Nutrition, and Established Pharmaceuticals. Each of these sectors uses distinct IS and IT systems for their operations. For instance, Abbott’s Diagnostics sector leverages advanced analytics to improve the accuracy and speed of diagnostic tests [25]. The Medical Devices sector uses IT for research and development, production, and post-market surveillance of devices [26]. Nutrition and Established Pharmaceuticals sectors use IS for supply chain management, sales, and marketing [18].

The company’s diverse portfolio signifies the critical role of IS and IT in driving operational efficiency, regulatory compliance, and strategic decision-making [27]. Given the rapid pace of technological advancement, ongoing investments in IS and IT are vital for Abbott to maintain its competitive edge and foster innovation. These investments could enhance Abbott’s ability to analyse large data sets, streamline processes, improve customer service, and develop new products and services [28].

When considering future IS investments, Abbott should employ various techniques for evaluation. For instance, return on Investment (ROI) analysis can provide a quantitative measure of the financial benefits expected from an investment. Cost-Benefit Analysis (CBA) can weigh the anticipated benefits against the costs of implementing and maintaining the new system. Risk Analysis can assess risks associated with the latest investment, such as cybersecurity threats or technological obsolescence. User Acceptance Testing (UAT) can evaluate whether the system meets the users’ needs and expectations [29].

Emerging technologies present significant opportunities for Abbott’s future IS investments. For example, Artificial Intelligence (AI) and Machine Learning (ML) can enhance predictive analytics, automate routine tasks, and facilitate the development of personalised therapies [30]. The Internet of Things (IoT) can improve supply chain visibility, enable remote patient monitoring, and enhance the performance of medical devices [31]. Blockchain can ensure data integrity, enhance traceability, and streamline regulatory compliance [32]. Cloud computing can offer scalable, flexible, and cost-effective IT infrastructure [33].

The analysis of Abbott’s current portfolio underscores the strategic importance of IS and IT for the company’s growth and competitiveness. The company’s future IS investments should be guided by a comprehensive evaluation approach and consider the potential of emerging technologies. Such assets can enable Abbott to leverage the power of IS and IT further to achieve its strategic goals and navigate the challenges of the digital age.

Constructing an IS Strategy:

A well-defined Information Systems (IS) strategy is integral to any organisation’s operational success and strategic growth, especially in the ever-evolving pharmaceutical sector [34]. In the case of Abbott Laboratories, a robust IS strategy would align the company’s business objectives with its technological capabilities, driving efficiency and innovation across its diversified portfolio. This strategy would enable Abbott to respond effectively to emerging trends and challenges, such as the increasing volume and complexity of health data, the growing demand for personalised medicine, and the rising cybersecurity risks [35].

Formulating an effective IS strategy requires a comprehensive and structured approach. The Ward & Peppard model, known as the Strategic Alignment Model, provides a valuable framework. Alignment between business and IS strategy is conceptualised in this approach across four areas: design, organisational structure and procedures, IT infrastructure and operations [36], [37].

Applying the Ward & Peppard model to Abbott, the business strategy domain would involve understanding the company’s strategic objectives, such as expanding its market share, fostering innovation, and improving patient outcomes. The IS strategy domain would define the role of IS in achieving these objectives, such as through advanced analytics, process automation, and digital transformation. The organisational infrastructure and processes domain considers the company’s operational processes, structure, and culture. The IS infrastructure and processes domain would assess the company’s existing IS resources and capabilities and the requirements for new IS investments [36].

The benefits of a robust IS strategy for Abbott would be manifold. To begin, timely and reliable data would improve strategic decision-making. Second, it would enhance operational efficiency by streamlining processes and reducing errors. Third, it would foster innovation by facilitating the exploration and adoption of emerging technologies. Fourth, it would enhance customer service by enabling personalised interactions and responses. Fifth, it would strengthen cybersecurity by establishing robust controls and protocols [38].

Constructing a well-defined IS strategy is crucial for Abbott to harness the full potential of IS and IT in achieving its strategic objectives. The Ward & Peppard model offers a comprehensive framework for this process, ensuring alignment between the company’s business and IS strategies [34]. The benefits of such a strategy would extend beyond operational efficiency to strategic decision-making, innovation, customer service, and cybersecurity, positioning Abbott for sustained success in the digital age.

Strategic Potential for Greater IS and IT Investment:

For Abbott Laboratories, investing in Information Systems (IS) and Information Technology (IT) holds immense strategic potential at both the divisional and company-wide levels. It improves the efficiency of existing operations and paves the way for innovative approaches to delivering healthcare services.

At the divisional level, IS and IT investment can lead to significant benefits [39]. For instance, in the pharmaceutical division, advanced analytics can enable a better understanding of disease patterns and drug interactions, leading to improved drug design and personalised medicine. IS can help the medical industry create smart devices that gather real-time patient data, improving monitoring and treatment [40], [41]. Moreover, IT can support customised nutritional plans based on individual health data in the dietary products division.

At the company-wide level, IS and IT investment can foster integration and synergy among different divisions. For example, a unified data platform can enable cross-divisional data sharing and collaboration, leading to holistic patient care solutions that combine pharmaceuticals, medical devices, and nutritional products. In addition, a company-wide IT infrastructure can support standardised processes and best practices across all divisions, enhancing efficiency and compliance.

Business Process Re-engineering (BPR) is vital in maximising the potential of IS and IT investment [44]. BPR involves radically redesigning core business processes to substantially improve productivity, cycle times, and quality [45]. In the context of Abbott, BPR can be applied to various functions such as drug development, supply chain management, customer service, and regulatory compliance. By leveraging IS and IT, BPR can automate routine tasks, enhance data accuracy and accessibility, and enable real-time monitoring and decision-making.

Abbott has significant strategic potential for greater IS and IT investment, both from a divisional and company-wide perspective. This investment and BPR can transform the company’s operations and offerings, delivering superior value to patients, healthcare providers, and stakeholders. Therefore, Abbott should prioritise IS and IT investment in its strategic planning, ensuring that it is well-positioned to thrive in the digital age of healthcare.

Conclusion:

This report has comprehensively analysed Abbott Laboratories’ current portfolio and investment potential in Information Systems (IS) and Information Technology (IT). It has underscored the importance of a robust IS strategy and the strategic potential for greater IS and IT investment both at the divisional and company-wide levels.

The key findings suggest that Abbott Laboratories is at an inflexion point where it can substantially leverage IS and IT to drive its business growth. The strategic potential for greater IS and IT investment is evident in every company’s division, and a solid IS strategy can guide these investments effectively. Moreover, applying Business Process Re-engineering (BPR) can further amplify the benefits of IS and IT investment, enabling the radical redesign of core business processes for superior efficiency and innovation.

Considering these findings, the following recommendations are proposed for Abbott Laboratories:

1. Invest in IS and IT across divisions: Abbott should increase its IS and IT investments across all divisions, focusing on areas with the highest impact on patient care and business performance. These investments can enhance drug design, develop smart medical devices, and create personalised nutritional plans.

• Develop a robust IS strategy: A well-defined IS strategy can provide a roadmap for IS and IT investments, aligning them with Abbott’s business goals. The Ward & Peppard Model can be a useful framework for formulating this strategy.

• Implement Business Process Re-engineering (BPR): Abbott should leverage BPR to maximise the benefits of IS and IT investments. BPR can streamline and innovate core business processes, paving the way for a more efficient and competitive Abbott.

In conclusion, IS and IT presents a significant opportunity for Abbott Laboratories to accelerate its growth and reinforce its position as a leading healthcare company. By strategically investing in IS and IT and implementing BPR, Abbott can harness the power of digital technology to deliver superior value to its patients, healthcare providers, and stakeholders.