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Global HealthCare Exchange Canada

Canada. Global HealthCare Exchange Canada. Trade Exchange Adoption A MIS 6150 Case Study Monty Perham Michael Aldor Chen Ming Lee. Outline. Organizational description Organizational problem Information aspect of problem IT/IS impact on information IT/IS - based alternatives

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Global HealthCare Exchange Canada

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  1. Canada Global HealthCare Exchange Canada Trade Exchange Adoption A MIS 6150 Case Study Monty Perham Michael Aldor Chen Ming Lee

  2. Outline • Organizational description • Organizational problem • Information aspect of problem • IT/IS impact on information • IT/IS-based alternatives • Pros & cons of alternatives • Chosen solution • Messages for modern leaders

  3. Organizational Description Organizational Description • GHX Background • Ownership • Industry • Structure • Global presence • GHX Canada • Management • Separate and distinct

  4. Organizational Description President/CEO Executive Coordinator Chief Financial Officer VP General Council VP Human Resources Exec. Director Premier Relationship Exec. Director HCA Relationship VP Operations VP Sales & Marketing VP Professional Services General Manager Europe Organizational Description

  5. Organizational Description Organizational Description • 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

  6. Organizational Description Organizational Description

  7. Organizational Problem Organizational Problem • Drive adoption rates • Facilitate hospital and supplier adoption • Recover costs • Begin charging hospitals • Overcome existing barriers • Technology barriers • Regulation • Current processes and relationships

  8. Information Aspect of Problem Information Aspect • 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

  9. Information Aspect of Problem Information Aspect • Connecting Hospitals with Suppliers • Existing: Point-to-point electronic connection • Proposed: “Hub” method of exchange electronic connection

  10. Information Aspect of Problem Information Aspect • 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

  11. Information Aspect of Problem Information Aspect

  12. Information Aspect of Problem Information Aspect • Hub simulation • Need a volunteer to find SKU 59800021

  13. Information Aspect of Problem Information Aspect

  14. Information Aspect of Problem Information Aspect GHXC has to show value in following areas to hospitals and suppliers

  15. IT/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

  16. IT/IS Impact on Information IT/IS Impact

  17. IT/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

  18. Pros & Cons of Alternatives Single technology focus Pros & Cons Pros Focus on needs of distinct market class Reduces support costs Cons Limits customer flexibility Reduces size of target market Against “open” and “neutral” business model

  19. Pros & Cons of Alternatives Hybrid approach Pros & Cons Pros Flexibility with technical connectivity Meets needs unique to each hospital Larger market potential Follows “open” and “neutral” business model Cons Increased complexity Increased costs

  20. Chosen Solution GHXC Exchange Solution • Hybrid approach chosen • Flexibility of connectivity options • More market and revenue potential • Meets “open” and “neutral” business model

  21. Chosen Solution Regardless of technology, organizational problem is adoption GHXC needs to: Distinguish exchange from traditional purchasing Convince customers that exchange provides value Solution

  22. Chosen Solution 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

  23. Messages for Modern Leader Messages Communicate value to customers Meet unique needs of different customers Identify and reduce barriers Take change management seriously Leverage exponential benefit of networks One system better than many independent ones Effectively measure costs and benefits of IT Use IT to drive costs out of the supply chain

  24. Question & Answer

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