Collaborative Relationship Management

1. Collaborative Relationship Management Redefining Relationships with Your Four Constituencies CUSTOMERS EMPLOYEES PARTNERS SUPPLIERS

2. Agenda • Introductions / Goals • Collaborative Relationship Management • Case Study • Exploring the Four Constituencies • Relationships and Interactions • Taking it with you

3. Goals for the Evening • We’re going Sky Diving! • Deliver a condensed approach to a Relationship Assessment • Gain an understanding of how to evaluate and improve the return on the various relationships your business relies on • Give you some tools / understanding to take back with you • Spark some ideas for improvement in certain areas of your business via simple process or technology improvement This is about Your Business… your participation creates the value

4. Traditional Approach to Business Marketing Sales Suppliers Partners Accounting Service Support Customers

5. Customer Customer Centric Approach Company Customer Centric is A Good Start …

6. Customer Partner Employee Company Supplier … but Only Part of the Equation Collaborative Relationship Management

7. Collaborative Relationship Management Customer New Opportunities Partner Employee Supplier Companies exist to meet needs… Relationships are established to fulfill needs

8. Case Study HMO Connects the Dots CUSTOMERS EMPLOYEES PARTNERS SUPPLIERS

9. Client Profile • Global 500 company serving 4 million clients in 8 states • One of the largest Medicare HMOs in the country • Pharmacy Benefit Management Services focused on formularies, claim services and mail order fulfillment Industry Factors • Decentralization of HealthCare makes it virtually impossible to have current information at point of care • Decrease in workforce • Increase in operating costs • Inefficient charge-capturing processes resulting in lost billings and significant legal implications • Patient non-compliance with medication regimens

10. The Business Problem “There are more deaths in hospitals each year from medical errors than there are from breast cancer, vehicle accidents, or AIDS.” - To Err is Human: Building a Safer Health System. Committee on Quality of Health Care in America. Institute of Medicine. National Academy Press. Washington, D.C. 1999 Tragic consequences for patients – tremendous financial losses to physicians and hospitals

11. Client Goals • Reduce medical errors • Improve quality of patient care • Lower associated operational costs • Desire to lower cost of care by filling prescriptions via Mail • Increase revenue through more effective charge capture Considerations • In order to solve this problem, many things had to be taken into account • Integration to back office • Integration to mail order fulfillment • Integration to formularies • Zero latency • Doctor mobility • Security • Platform usability for doctors and administrators, different views of the same information via different interfaces • Key to adoption

12. Other Pharmacy Patient Insurance Carrier Doctor HMO Mail-Order Pharmacy Relationship Map paper prescription paper / fax paper prescription paper / fax paper fax some integration some integration paper/ fax

13. Solution • Research constituent base • Doctors • Administration • Pharmacy • Validate Business Case • Design Dynamic User Interface • Adapt to changes in regulations, user requirements etc • Maximize efficiency • Deploy Wireless Interface to Back End systems • Patient Specific formularies • Decisions based on up to the minute information

14. Other Pharmacy Patient Insurance Carrier Doctor HMO Mail-Order Pharmacy Formulary Database Patient Database Improved Collaboration paper prescription paper / fax paper / fax Real-time via wireless device Online Prescription

15. Schedule Patient Overview Selection

16. Search Interaction Warnings Prescription

17. Takeaways • Understand the relationships and interactions currently in place • Understand what each constituency wants and needs from the relationship • Develop metrics to understand and quantify benefit • Involvement from the end users to insure adoption • Appropriate technology for the solution (Don’t assume it can’t be done)

18. Exploring the Four Constituencies CUSTOMERS EMPLOYEES PARTNERS SUPPLIERS

19. Levels of Collaboration Supporting Interactions People, Process, Tools and Technology • Constituency • Customer, Partner, Supplier, Employee • Relationships • Interactions between company and its constituencies • Interactions • Motivated by understanding, attracting, selling and servicing constituencies

20. Enabling Relationships • Relationships are facilitated by interactions between one or more parties: • Companies • People Company B Company A phone fax Sales Purchasing eProcurement To drive revenue or decrease costs we have to understand and streamline the interactions

21. Enabling Interactions • Interactions occur due to one or more of four motivators • Attract • Sell • Service • Understand Customer Partner Employee Supplier

22. Data Warehouse Mailing Lists Customer Marketing Promotional Literature Sales Contact Mgmt Sales Force Autom Proposals / Quotes Visit / phone call Service Website Phone / Visit ARU / VRU Call Center Support Website Phone / Visit ARU / VRU Help Desk Trouble shooting Accounting Invoice Collections ERP Customer Interactions

23. Product Catalog Pricing Marketing Promotional Literature Press Room Document Repository PR/Comm Visit / phone call Website Press Kit Partner Visit / phone call Website Press Releases Fulfillment IR Sales Materials Training Call Center Online help Support Invoices Inventory ERP Accounting Partner / Channel Interactions

24. Patient Info Formulary Data Patient Info Insurance Carrier Doctor Patient Database Prescription Online Prescription Formulary Database Mail-Order Pharmacy Accounting Billing Chargebacks Billing ERP Case Study – Enabling Collaboration

25. Relationships and Interactions Levels of Collaboration CUSTOMERS EMPLOYEES PARTNERS SUPPLIERS

26. Levels of Collaboration Supporting Interactions People, Process, Tools and Technology • Constituency • Customer, Partner, Supplier, Employee • Relationships • Interactions between company and its constituencies • Interactions • Motivated by understanding, attracting, selling and servicing constituencies

27. Barriers to Enabling Relationships Rational • Fear • Cost • Time / Bandwidth Constraints • Don’t see the Benefit • Technology Irrational • Personalities • Politics

28. Reasons to Better Enable Relationships • Cost Cutting • Increased Revenue • Productivity Gains • Better relations with the media and shareholders • Others??

29. Determining Where to Start • Find the Opportunities • View your business from the constituency’s perspective • Identify needs that are not being met • Determine ROI Potential • Determine the primary payoff for you and your constituency if the need were met • Determine Investment Required for Each Opportunity • Identify the barriers to why you are not meeting the current need

30. Determining Where to Start • Determine Plan of Action • Think through the necessary actions required to surmount the barriers and meet the need • Consider pilot to prove business case • Prioritize opportunities based on your business goals through quantitative and qualitative filters • Increases sales next quarter • Reduces cost of operations n% next year • Improves employee retention and partner relationship • Business first, technology second

31. Understanding Relationships • Describe the Relationship • Who is involved? • What value do they bring / receive? • Where are they located? • How / when do we communicate? • What do they want from you? • What do you want from them? • Quantify the Relationship • How many relationships of this type do you have? • What technology (if any) do you use to facilitate them? • How do you measure / track the success of the relationship?

32. Understanding Interactions • Describe current interactions: • In today’s world, interactions are generally transaction based: • E-mail, Fax, Postal, Phone • Patient walks into the doctor’s office to be treated • Patients walks into a pharmacy to get a prescription filled • What could they look like? • The Internet and Mobile technology enable these interactions to be more relationship-based • Doctor has real-time access to patient’s medical history and is proactively notified of any drug conflicts • On site changes to service order with Credit Card Capture

33. Quick Hits Customers New Opportunities Employees Partners Suppliers

34. Simple integrations may uncover opportunities Customers New Opportunities • Automated Lead Routing from web site • Online Team Selling Opportunities Employees Partners Suppliers

35. Multiple integrations expose multiple opportunities Customers New Opportunities • Automated Lead Routing from web site • Online Team Selling Opportunities • Vendor inventory shows overstock or spare parts. • Partner checks which customers own systems using the parts and contacts customers with discount pricing on parts Partners Employees • Customer Support Incidents shared with vendor for QA purposes • Partners check customer order status Suppliers

36. Highest level of integration maximizes potential opportunities Customers New Opportunities Partners Employees Suppliers

37. Tools / Technologies • Web-based Technology enables Relationship Management in new ways: • Browser-based interfaces – easy access for many different groups of users to the same functionality and data • Web site – direct access to users (customers, partners, suppliers, vendors) • Distributed systems – better access across geographic locations to the same functionality and data • Hosted / ASP solutions – less burden on the company for maintenance and support; no longer have to build it all yourself • Mobile technology

40. Tools / Technologies • More Examples • Relationship Management DB • Transactional database managing all constituent contacts and interactions • Integration Servers • Translates data between systems and constituents • Extranets and Intranets • Handles securable communications and workflow with Partners, Suppliers and Employees • Workflow Management • Handles approval and web publishing processes • Analytics and Reporting System • Mines data across constituencies to discover additional opportunities • Mobile Field Service • Equip the field workers with detailed information about the customer and the work to be performed

41. Critical Success Factors • Pick a place to start • Quick Hits • Simple automation / integration • More complex integrations • Understand the cost / benefits for both parties • Set metrics to quantify the costs / benefits • Break initiative into small, accomplishable phases • Get executive support • Involve users early and often • Business first, technology second

42. Recap Supporting Interactions People, Process, Tools and Technology • Constituency • Customer, Partner, Supplier, Employee • Relationships • Interactions between company and its constituencies • Interactions • Motivated by understanding, attracting, selling and servicing constituencies

43. Q&A / Wrap-up Thank you for your time! Dean Anderson DRAnderson@breakaway.com 612.279.3602 WWW.BREAKAWAY.COM