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Randy Spratt McKesson CIO & CTO Februar y 2011

Randy Spratt McKesson CIO & CTO Februar y 2011. The Transformational CIO As a Competitive Weapon. HMG Strategy Summit CIO Leadership Series. A bit about my world. Manufacturers 400 Pharmaceutical 2,000 Medical-Surgical 950 Consumer Product. Providers 200,000 Physicians

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Randy Spratt McKesson CIO & CTO Februar y 2011

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  1. Randy Spratt McKesson CIO & CTO February 2011 The Transformational CIO As a Competitive Weapon HMG Strategy Summit CIO Leadership Series

  2. A bit about my world Manufacturers 400 Pharmaceutical 2,000 Medical-Surgical 950 Consumer Product Providers 200,000 Physicians 10,000 Long-Term Care Facilities 5,000 Hospitals 750 Home Care Agencies Retail Pharmacies 26,000 Locations Health Plans 600 Payor Organizations Consumers 25 Million Healthcare Patients

  3. 6% CAGR Steady growth, well leveraged 17% CAGR *Continued Operations

  4. PROPERTY OF McKESSON CORPORATION Value Creation Retain Base Customer Service Execution Strategy Capital Sourcing Defects Consumption Acquire Share Growth Position in Growing Markets Value Scale Efficiency Leverage Process Efficiency

  5. IT Life Cycles in Value CreationPerpetual Pendulum Business Nirvana Reality IT Nirvana Agility Speed Control “cost” Efficiency Security Cost

  6. IT Life Cycles – Another VersionVirtuous Cycle • Innovation • New products • New Services • Commoditization • Low Cost, capital • High availability • Demand driven • Business Continuity & Security TOP LINE GROWTH BOTTOM LINE LEVERAGE • Adoption • Customer Satisfaction • Customer Experience • Standardization • Process efficiency • Operational Excellence

  7. Managing the Entire Life Cycle • Collaboration at every step • Governance at every level • Execution and quality are table stakes • Business Strategy and Business Value Driven • Measure the value elements relentlessly • Allow experiments but make them transparent • Converge experiments based on success and relevance • Move with velocity through the cycle but don’t force it

  8. Governance and Collaboration Exec Committee Shared Services Governance Board Steering Direction Funding Tech Advisory Board CIO Council Corp Services Council HR Council Alignment Operations Planning TAB Committees Tech Council Working Groups Working Groups

  9. McKesson Results

  10. 2010 CIO Priorities*What are you working on? • NEW: • Saas • iThings *After Gartner 2010 CIO Survey

  11. FY01 Technologies FY11: Free.

  12. Technology Headwinds

  13. Smartphone Growth • Disruptive business models to increase speed of new product development • Application value tied to data value • Social networking dominates advertising and marketing • Healthcare is fundamentally a mobile experience

  14. Data and Services The Internet • Private and Public Clouds – an every day reality today, will be dominant tomorrow • Applications and everything they use moving to a service model • Healthcare Reform and ARRA depend upon a cloud delivery model You

  15. Digital Data Creation 20-fold increase in six years • Aggregation enabled by cloud models • Enables analytics, research, information search and exchange • Healthcare data volume will explode in next 5 years

  16. Embracing HIPAA / HITECH • Risk Management • Stronger Fundamentals – Best Practices, Analytics and Metrics • Bookending: Prevention & Business Continuity

  17. Thank You!

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