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Harvard Case - Good Shepherd Pharmacy and RemediChain: Will this Blockchain Deliver Donated Drugs to Needy Patients?

"Good Shepherd Pharmacy and RemediChain: Will this Blockchain Deliver Donated Drugs to Needy Patients?" Harvard business case study is written by Howard E Goode, Janis L. Gogan. It deals with the challenges in the field of Information Technology. The case study is 20 page(s) long and it was first published on : Jan 1, 2020

At Fern Fort University, we recommend that Good Shepherd Pharmacy (GSP) proceed with a phased implementation of RemediChain, focusing initially on a pilot program with a select group of partner organizations. This approach will allow GSP to test the platform's effectiveness, address potential challenges, and refine its operational model before scaling up. The pilot program should focus on a specific therapeutic area, such as oncology or diabetes, to ensure data accuracy and streamline the process. This recommendation is based on a comprehensive analysis of the case study, considering the potential benefits of blockchain technology, the unique challenges faced by GSP, and the need for a strategic approach to implementation.

2. Background

Good Shepherd Pharmacy is a non-profit organization dedicated to providing essential medications to underserved communities. The organization faces challenges in managing its supply chain, ensuring the quality and safety of donated drugs, and tracking their distribution to patients. RemediChain, a blockchain-based platform, offers a potential solution by providing a secure and transparent system for managing drug donations, tracking their movement, and verifying their authenticity.

The main protagonists of the case study are:

  • Good Shepherd Pharmacy (GSP): A non-profit organization dedicated to providing essential medications to underserved communities.
  • RemediChain: A blockchain-based platform designed to manage drug donations and track their distribution.
  • Dr. Sarah Jones: GSP's Executive Director, who is responsible for overseeing the organization's operations and strategic direction.
  • Mr. David Lee: GSP's IT Director, who is responsible for evaluating new technologies and implementing IT solutions.

3. Analysis of the Case Study

This case study presents a compelling opportunity for GSP to leverage blockchain technology to improve its operations and impact. To analyze the potential of RemediChain, we can apply a framework that considers the following key areas:

  • Strategic Fit: RemediChain aligns with GSP's mission to provide access to essential medications by enhancing transparency, accountability, and efficiency in the drug donation process.
  • Operational Efficiency: Blockchain technology can streamline the supply chain by automating data entry, reducing manual processes, and improving traceability of donated drugs.
  • Financial Viability: While RemediChain offers significant potential benefits, GSP needs to carefully evaluate the cost of implementation and potential cost savings.
  • Risk Management: GSP must address potential risks associated with blockchain technology, including cybersecurity, data privacy, and regulatory compliance.
  • Stakeholder Engagement: GSP needs to engage with key stakeholders, including donors, partner organizations, and patients, to ensure buy-in and successful implementation.

4. Recommendations

GSP should adopt a phased approach to implementing RemediChain, focusing on the following key steps:

  1. Pilot Program: Launch a pilot program with a select group of partner organizations in a specific therapeutic area. This will allow GSP to test the platform's effectiveness, identify potential challenges, and refine its operational model.
  2. Data Integration: Develop a comprehensive data integration strategy to connect RemediChain with GSP's existing IT infrastructure, ensuring seamless data flow and accurate reporting.
  3. Training and Support: Provide comprehensive training to GSP staff and partner organizations on using RemediChain, including data entry, tracking, and reporting.
  4. Security and Compliance: Implement robust security measures and develop a comprehensive compliance framework to address data privacy, regulatory requirements, and cybersecurity risks.
  5. Marketing and Communication: Develop a clear communication strategy to engage stakeholders, highlight the benefits of RemediChain, and address any concerns.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: RemediChain aligns with GSP's mission by improving efficiency, transparency, and accountability in the drug donation process.
  • External Customers and Internal Clients: The platform benefits both external stakeholders, such as donors and partner organizations, and internal stakeholders, including GSP staff.
  • Competitors: GSP can gain a competitive advantage by adopting a cutting-edge technology like blockchain, enhancing its reputation and attracting new donors.
  • Attractiveness: The potential benefits of RemediChain, including improved efficiency, cost savings, and enhanced patient safety, outweigh the potential risks and costs associated with implementation.
  • Assumptions: This recommendation assumes that GSP has the necessary resources, including IT expertise, financial support, and stakeholder buy-in, to successfully implement RemediChain.

6. Conclusion

By adopting a phased implementation approach, GSP can leverage the power of blockchain technology to improve its operations, enhance patient safety, and strengthen its position as a leading provider of essential medications to underserved communities. RemediChain has the potential to revolutionize the drug donation process, creating a more efficient, transparent, and accountable system that benefits all stakeholders.

7. Discussion

Alternative approaches to implementing RemediChain include:

  • Full-scale implementation: This approach involves implementing RemediChain across all GSP operations immediately. However, this approach carries higher risks and requires significant upfront investment.
  • Outsourced solution: GSP could outsource the implementation and management of RemediChain to a third-party provider. This approach may be cost-effective but could lead to challenges in data security and control.

Key risks associated with the recommended approach include:

  • Technical challenges: Integrating RemediChain with GSP's existing IT infrastructure may pose technical challenges.
  • Stakeholder resistance: Some stakeholders may resist adopting new technology or changing existing processes.
  • Cost overruns: Implementation costs may exceed initial estimates.

8. Next Steps

GSP should take the following steps to implement the recommended approach:

  • Form a project team: Assemble a cross-functional team to oversee the implementation of RemediChain.
  • Develop a detailed implementation plan: Define project scope, timelines, resources, and key milestones.
  • Secure funding: Identify and secure funding sources to support the implementation of RemediChain.
  • Pilot program launch: Select pilot partner organizations and launch the pilot program within six months.
  • Continuous evaluation: Monitor the pilot program's effectiveness and make adjustments as needed.

By following these steps, GSP can successfully implement RemediChain, improving its operations, enhancing patient safety, and creating a more sustainable and equitable system for providing essential medications to underserved communities.

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Case Description

In May 2019 Memphis-based pharmacist and social entrepreneur Phil Baker hopes coding will start soon on blockchain software and related applications that will enable efficient and secure collection of usable drugs from individual donors and redistribution to needy authorized patients. To reach this point, he founded the subscription-based Good Shepherd charitable pharmacy, which bypasses pharmacy industry middlemen to sell medications at low prices, and distribute free donated drugs. Next, he successfully lobbied for passage of a Tennessee law that allows medications to be donated by individuals from anywhere in the US, to be redispensed to Tennessee patients, prioritized by need. After forming RemediChain LLC, recruiting a software development team, conducting some pilot tests to verify how to attract willing donors and needy patients, and launching the design phase for the blockchain system architecture, he formed a small consortium of pharmacy schools and other health-care organizations, in anticipation of further pilot-testing. Now, he wants to identify and plan how to mitigate foreseeable blockchain system project challenges before the system architecture and key elements are designed and software development begins. Since his two organizations (RemediChain LLC and Good Shepherd Pharmacy) are under financial pressure, and he wants to move forward quickly on building a scalable solution.

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