McKesson Drug Company: A Case Study of Economost - A Strategic Information System

There has been considerable attention paid to competitive and strategic information systems. Few cases, however, have been studied and presented in detail. McKesson's order entry and distribution system, Economost, is one of the most widely cited strategic information systems, with wide acceptance; nearly 100% of McKesson's orders are entered electronically by customers. Impact on customers, and on McKesson's costs, has been favorable and dramatic. Similar systems are now widely available from major competitors; the effect of such systems on the industry, and on industry consolidation, has also been significant. But differential competitive impact on McKesson is more difficult to establish.