Rite Aid Corporation: Failure in EBusiness Technology Management

1
Rite Aid Corporation Failure in E-Business
Technology Management

• Chapter 10
• Case 3

2
Possible Causes of Problems

• Traditional culture was free wheeling, risk
  taking, and not money-conscious.
• Traditionally a high-tech playground where money
  and experimentation opportunities were abundant.
• Experiencing multimillion dollar losses.
• Allegations of software-based consumer fraud.
• Computer software problems at an advanced
  distribution center.
• Staff turnover rate are high, and morale was low.
• Recent hiring of a new CIO.

3
Rite Aids Strategy to Fix the Problem

• Spend money to reassess and restate its financial
  results.
• Build a new decision-support application to work
  with its accounting system to refine financial
  reports that flow through the accounting
  departments.

4
Risks Facing Rite Aid

• Spending on IT strategies must continue or they
  run the risk of falling behind their competitors.
• Industry pressure to automate is being created by
  the shortage of pharmacists.
• Concerns of finding pharmacists willing to work
  for them.