Fastcat Case Summary

In an increasingly competitive market, FastCat is struggling to position itself in the wake of tremendous growth in the medical software industry. In order to increase profitability, reaffirm commitment of our employees, and maintain our status as a leader for small-medium size medical companies, a change is needed to remain competitive and innovative. While our products maintain a unique niche in the market, there are some questions as to whether our products will remain the most relevant in the future. We must expand our market to include new customers across the country, as well as new categories of medical providers, while maintaining hold of our current customers that may be in danger of being consumed by larger hospitals. In order to remain relevant in the market, we must find new ways to decrease cost to our customers while increasing value. This is also an exciting time in the software industry - huge growth is upon us, and we must be able to maintain a competitive advantage with our top-notch employees, so we must ensure their commitment to continue to work for us. Lastly, a large expense at this point is an issue with some of our service contracts - we have some customers that require more of our time and resources than is worth what we collect as revenue.

We cannot afford financially or strategically to pay “whatever it takes” to retain or attract a client. Rather, we must devise a compensation system that will encourage our employees to focus on efforts that will increase our profitability by ensuring that our system supports our business objectives. Therefore, we have devised a pay system which is fair, encourages innovation, and takes extra special care of our top talent pool, the Marketing and R&D