global healthcare exchange canada trade exchange adoption a mis 6150 case study monty perham michael...

Global HealthCare Exchange Global HealthCare Exchange CanadaCanadaTrade Exchange Adoption

A MIS 6150 Case Study

Monty Perham

Michael Aldor

Chen Ming Lee

Canada

Canada

Slide 2

OutlineOutline

Organizational descriptionOrganizational problemInformation aspect of problemIT/IS impact on informationIT/IS-based alternativesPros & cons of alternativesChosen solutionMessages for modern leaders

Org Description Org Problem Info Aspect IT/IS Impact Alternatives Solution MessagesPros & Cons Slide 3

Canada

Organizational DescriptionOrganizational Description

GHX Background

Ownership◦ Industry

Structure◦ Global presence◦ GHX Canada

Management◦ Separate and distinct

OrganizationalDescription


Canada


President/CEO

Executive Coordinator

VP Human Resources

Chief Financial Officer

VP General Council

Exec. Director Premier

Relationship

Exec. Director

HCA Relationshi

p

VP Operations

VPSales &

Marketing

VP Professional Services

General Manager Europe



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The GHX business model◦ Open and neutral exchange◦ “eBay” for healthcare supplies

Lower supply chain costs◦ Maximize products purchased electronically◦ Minimize the cost of connectivity◦ Automate manual processes◦ Reduce errors in the purchasing process



Canada


2001 Health Care Expenditures

Hospital Spending

Physicians

PharmaceuticalsPublic Health

Other Professionals

Residential Care

Capital



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Organizational ProblemOrganizational Problem

Drive adoption rates ◦ Facilitate hospital and supplier adoption

Recover costs◦ Begin charging hospitals

Overcome existing barriers◦ Technology barriers◦ Regulation◦ Current processes and relationships

OrganizationalProblem


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Information Aspect of ProblemInformation Aspect of Problem

◦ Hospitals Supply procurement is different for each hospital Who sells what and when can they deliver How to get the best price

◦ Suppliers Difficulty establishing relationships with hospitals Issues with billing and shipping services Provide up-to-date product info including pricing

◦ GHXC How to best manage above information

InformationAspect


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Connecting Hospitals with Suppliers◦ Existing: Point-to-point electronic connection◦ Proposed: “Hub” method of exchange electronic

connection

InformationAspect

Org Description Org Problem Info Aspect IT/IS Impact Alternatives Solution MessagesPros & ConsSlide 10

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Point-to-point simulation◦ Each of you has a bag with a SKU (do not open)◦ Hospital can only talk to one supplier at a time

◦ Need a volunteer to find SKU ABC123

InformationAspect


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InformationAspect


Canada


Hub simulation◦ Need a volunteer to find SKU 59800021

Supplier Supplier SKU Unified SKUPashniak, Dan ABC123 598000021Bannister, Leah A. 123XYZ 598000021Bedi, Parmeet K. EEP123 598000021Buchholz, Mark G. CEC123 598000021Chartrand, Shane A. KIT123 598000033Derksen, Tanya G. KIT321 598000033Fox, Casey N. KIT222 598000033Gandhi, Michael KIT111 598000033Gavinchuk, Trevor L. SMT123 598000023Gerrard, Kimberley TMS987 598000023Loewen, Christopher W. SMT383 598000023Mann, Abby SMT587 598000023Olson, Raymond Sean AEB123 598000011Sanders, Christine J. BEA098 598000011Swanson, Glen H. EAB474 598000011Travica, Bob EAN844 598000011

InformationAspect


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InformationAspect


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GHXC has to show value in following areas to hospitals and suppliers

InformationAspect


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IT/IS Impact on InformationIT/IS Impact on Information

Many different types of systems◦ Web-based◦ EDI◦ Custom solutions

High cost to get Hospitals and Suppliers integrated

IT/IS Impact


CanadaIT/IS Impact on InformationIT/IS Impact on Information

IT/IS Impact


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IT/IS-based AlternativesIT/IS-based Alternatives

Solutions revolve around connectivity options:1. Single technology focus

◦ Web-based◦ EDI◦ Custom solutions

2. Hybrid approach◦ Combination of technologies above

Alternatives


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Pros & Cons of AlternativesPros & Cons of Alternatives

ProsFocus on needs of

distinct market classReduces support costs

ConsLimits customer

flexibilityReduces size of target

marketAgainst “open” and

“neutral” business model

Pros & Cons

Single technology focus


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Pros & Cons of AlternativesPros & Cons of Alternatives

ProsFlexibility with

technical connectivityMeets needs unique to

each hospitalLarger market

potentialFollows “open” and

“neutral” business model

Cons Increased complexity Increased costs

Pros & Cons

Hybrid approach


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Hybrid approach chosen◦ Flexibility of connectivity options◦ More market and revenue potential◦ Meets “open” and “neutral” business model

Chosen SolutionChosen Solution

Solution

GHXCExchange


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Regardless of technology, organizational problem is adoption

GHXC needs to:◦ Distinguish exchange from traditional purchasing◦ Convince customers that exchange provides

value

Solution


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Strategies to facilitate adoption include:◦ Education on cultural change of purchasing◦ Financing for technology setup costs◦ Generating perceived value by charging hospitals◦ Offer option of transactional versus subscription-

based billing◦ Partner with competitors to ease customer

connectivity

Solution


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Messages for Modern LeaderMessages for Modern Leader

Communicate value to customersMeet unique needs of different customers Identify and reduce barriersTake change management seriouslyLeverage exponential benefit of networksOne system better than many independent onesEffectively measure costs and benefits of ITUse IT to drive costs out of the supply chain

Messages

Canada

Slide 24

Question & AnswerQuestion & Answer

global healthcare exchange canada trade exchange adoption a mis 6150 case study monty perham michael...

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