Dollinger index

hardware suppliers. The company may also
use contracts and agreements when partner-
ships are infeasible. Because size is a big fac-
tor in reducing the costs in the high-tech
semiconductor industry, MedTrack will seek
to affiliate itself with a large distributor.
Experience, stability, and reliability of sup-
plies at a competitive cost will form the basis
for establishing contractual agreements. In
addition, MedTrack will use partnerships for
strategic fit and synergic savings.
For the development of software, size of
the developing company is usually not a crit-
ical factor. In fact, small and nimble compa-
nies often develop breakthrough technolo-
gies and are much easier to work with than
large organizations. Outsourcing of software
development also provides a range of busi-
ness models, from U. S. contractual pro-
grammers to overseas developers. MedTrack
will seek to engage low-cost developers from
small and nimble firms that can not only
develop high-quality products, but also pro-
vide background support if necessary.
MedTrack will likely seek an established U. S.
firm that is able to take advantage of low-cost
development overseas. This model will
enable MedTrack to gain vital interface in the
United States on short notice while it takes
advantage of low overseas development
costs.

Resource Requirements

Because MedTrack plans to outsource most
of the hardware and software, the resource
requirements will be focused on successfully
operating the core business. MedTrack’s key
strengths will be its intellectual and human
resources, which will bring years of experi-
ence in the industry, a positive attitude
toward customer service, and high ethical
values. Each of MedTrack’s founding part-
ners has several years of experience in pro-
viding services to customers in a corporate
environment. In addition, each brings experi-
ence in marketing high-tech products, devel-
opment of solutions for the drug industry,
continuous improvement based on Six
Sigma, and managerial experience in an oper-
ating environment.

MedTrack estimates that early on it must

fill specific skills in the design and implemen-

tation of software applications and in market-

ing-account managerial experience in hospi-

tals. MedTrack’s strategy for attracting talent-

ed candidates to fill these positions will be to

provide adequate stock ownership while

minimizing up-front expenses on salary and

administration. A flat organizational struc-

ture that minimizes overhead and operational

costs will be a key strategy.

Quality Assurance

MedTrack’s quality assurance will be based

on a preventative strategy rather than a cor-

rective or reactive strategy. This means that

MedTrack will increase the time and effort it

will spend on the drawing board stages as

opposed to the customer maintenance and

support stages.

The main drawback in outsourcing devel-

opment is the control of quality and stability

of the platform. MedTrack aims to avoid the

pitfalls by in-house design of the platform

and close co-ordination with the developers

of the application. Well-defined specifications

and tightly established testing protocols will

enable MedTrack to identify and eliminate

bugs and software glitches before a product

is released. MedTrack will embrace a total

MedTrack 431

Product

Distributors

EquipmentSuppliers

Hardware

Suppliers

Core Business DevelopersApplication

Implementation

Customer relations

Supplier relations

Application design

EXHIBIT 6 Manufacturing Model