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© 2019 AHIMA
ahima.orgahima.org
Introduction to Information Systems for
Health Information Technology
Chapter 4: System Selection
© 2020 American Health Information Management Association
© 2019 AHIMA
ahima.org 2
Learning Objectives
Identify the steps in the system selection process
Develop the request for proposal
Explain how the decision matrix will assist in the most appropriate
selection for the healthcare entity
Collect data to be used in the systems analysis process
© 2019 AHIMA
ahima.org 3
Introduction, 1
System selection: Determining which information system will be
purchased
System development life cycle: Model used to represent the ongoing
process of developing (or purchasing) information system
© 2019 AHIMA
ahima.org 4
Introduction, 2
System development life cycle stages
• Planning and analysis
• Design
• Implementation
• Support and evaluation
© 2019 AHIMA
ahima.org 5
Planning and Analysis Phase, 1
Information systems strategic planning
• Process of identifying and assigning priorities to the application of information
technology that will assist an organization in executing its business plans and
achieving its strategic goals and objectives
© 2019 AHIMA
ahima.org 6
Planning and Analysis Phase, 2
Planning
Organizing the project
Defining scope of project
Systems analysis
© 2019 AHIMA
ahima.org 7
Planning and Analysis Phase—Planning, 1
Importance of planning
Lack of planning
Steps
• Conducting a feasibility study
• Setting the budget
• Setting the goals and objectives
• Identifying the project manager and team
• Obtaining buy-in from management and users
© 2019 AHIMA
ahima.org 8
Planning and Analysis Phase—Planning, 2
Feasibility study
• Does proposed system meet objectives?
• Evaluates code, benefits, issues
• Tangible benefits
• Intangible benefits
• Results of study determine if the facility should proceed
© 2019 AHIMA
ahima.org 9
Planning and Analysis Phase—Planning, 3
Setting the budget
• Selection and implementation expenses
• Costs of maintain system
• Software
• Upgrading infrastructure
• Hardware
• Training
• Renovations
• Project management
© 2019 AHIMA
ahima.org 10
Planning and Analysis Phase—Planning, 4
• Consultant expenses
• Travel expenses
Goals and objectives
• Based on business goals
• SMART methodology
• Specific
• Measurable
• Attainable
• Relevant
• Time-based
© 2019 AHIMA
ahima.org 11
Planning and Analysis Phase—Planning, 5
Project management
• Formal set of principles and procedures that help control the activities associated
with implementing a usually large undertaking to achieve a specific goal
Project team
• Represent multiple disciplines working on project
Project manager
© 2019 AHIMA
ahima.org 12
Planning and Analysis Phase—Planning, 6
Obtaining buy-in
• Management support
• Communication
© 2019 AHIMA
ahima.org 13
Planning and Analysis Phase—Planning, 7
Change management: Formal process of introducing change, getting it
adopted, and diffusing it throughout the healthcare facility
Reduce fears
Update staff on status
© 2019 AHIMA
ahima.org 14
Planning and Analysis Phase—Planning, 8
Organization of project
• Project
• Specific objective
• Series of activities
• Defined start and stop dates
• Deliverables
© 2019 AHIMA
ahima.org 15
Project Team, 1
Membership varies
Discuss project and issues
H I M frequently on team
Information systems project steering committee
• Chief information officer
© 2019 AHIMA
ahima.org 16
Project Team, 2
User task force
Vendor role
Consultant
© 2019 AHIMA
ahima.org 17
Project Team, 3
Project manager
• Budget
• Resources
• Negotiations
• Schedule
© 2019 AHIMA
ahima.org 18
Defining Scope of Project
Project definition
• Purpose
• Link to business strategy
• Goals and scope
Scope creep
© 2019 AHIMA
ahima.org 19
Project Plan
Tasks to be performed
• Components
• Feasibility study
• Resources
• Design
• Hardware and software procurement
• Transition
• Implementation
• Support and evaluation
© 2019 AHIMA
ahima.org 20
Project Management Tools
Gantt chart
Project evaluation and review technique chart
Project plan
Trouble tickets
Status reports
© 2019 AHIMA
ahima.org 21
Systems Analysis, 1
Collecting, organizing, and evaluating data on the healthcare facility and
the information that it needs
Functional requirements
Internal scanning
External scanning
© 2019 AHIMA
ahima.org 22
Systems Analysis, 2
Tools to gather data
• Questionnaire
• Interviews
• Structured
• Unstructured
• Semistructured
• Observations
• Flowcharts
© 2019 AHIMA
ahima.org 23
Design Phase
Build versus buy versus cloud computing
© 2019 AHIMA
ahima.org 24
Design Phase—Cloud Computing, 1
Advantages
• Collaboration
• Speed
• Mobility
• Privacy and security
• Decreased costs
© 2019 AHIMA
ahima.org 25
Design Phase—Cloud Computing, 2
Disadvantages
• Less control
• Scheduling maintenance and upgrades
• Rental
© 2019 AHIMA
ahima.org 26
Design Phase—Build
Built based on needs of organization
Takes long time to develop
Detailed planning required
Long-term maintenance
High development cost
© 2019 AHIMA
ahima.org 27
Design Phase—Buy
May not completely meet needs
• Alpha site
• Beta site
© 2019 AHIMA
ahima.org 28
Design Phase—Integrated versus Interfaced
Integrated
• Designed to work together
• Best of fit
Interfaced
• Interface
• Best of breed
© 2019 AHIMA
ahima.org 29
System Selection—Steps
Request for information
Request for proposal
Evaluation of proposed I S
Selection of I S
Contract negotiation
© 2019 AHIMA
ahima.org 30
System Selection
Request for information (RFI)
Request for proposal (RFP)
© 2019 AHIMA
ahima.org 31
System Selection—RFP, 1
Letter of introduction
• Bidders conference
Information for potential vendors
Description of system
• Functional requirements
• Mandatory
• Desirable
• Luxury
© 2019 AHIMA
ahima.org 32
System Selection—RFP, 2
Required format
Instructions
Sample documentation/contract/resumes
Vendor profile
© 2019 AHIMA
ahima.org 33
System Selection—RFP, 3
Testing requirements
System selection criteria
Training requirements
References
© 2019 AHIMA
ahima.org 34
System Selection—Evaluation of Proposed Systems
Onsite and online demonstrations
Site visits
Review of RFP
Reference checks
© 2019 AHIMA
ahima.org 35
System Selection—Selection
Quantifiable method
Point system
Weighted decision matrix
© 2019 AHIMA
ahima.org 36
System Selection—Contract Negotiation
Contract team
Win-win situation
© 2019 AHIMA
ahima.org 37
System Selection—Contract Negotiation: Clauses, 1
Software license
Delivery dates
Warranties and guarantees
Responsibilities of each party
The state whose laws govern the contract
© 2019 AHIMA
ahima.org 38
System Selection—Contract Negotiation: Clauses, 2
Cost
Milestones for payment
Force majeure
Software in escrow
Cancellation of contract
© 2019 AHIMA
ahima.org 39
System Selection—Contract Negotiation: Clauses, 3
Version of software to be installed
Penalties
Acceptance testing
Maintenance and updates
Training
Documentation

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HM311 Ab103417 ch04

  • 1. © 2019 AHIMA ahima.orgahima.org Introduction to Information Systems for Health Information Technology Chapter 4: System Selection © 2020 American Health Information Management Association
  • 2. © 2019 AHIMA ahima.org 2 Learning Objectives Identify the steps in the system selection process Develop the request for proposal Explain how the decision matrix will assist in the most appropriate selection for the healthcare entity Collect data to be used in the systems analysis process
  • 3. © 2019 AHIMA ahima.org 3 Introduction, 1 System selection: Determining which information system will be purchased System development life cycle: Model used to represent the ongoing process of developing (or purchasing) information system
  • 4. © 2019 AHIMA ahima.org 4 Introduction, 2 System development life cycle stages • Planning and analysis • Design • Implementation • Support and evaluation
  • 5. © 2019 AHIMA ahima.org 5 Planning and Analysis Phase, 1 Information systems strategic planning • Process of identifying and assigning priorities to the application of information technology that will assist an organization in executing its business plans and achieving its strategic goals and objectives
  • 6. © 2019 AHIMA ahima.org 6 Planning and Analysis Phase, 2 Planning Organizing the project Defining scope of project Systems analysis
  • 7. © 2019 AHIMA ahima.org 7 Planning and Analysis Phase—Planning, 1 Importance of planning Lack of planning Steps • Conducting a feasibility study • Setting the budget • Setting the goals and objectives • Identifying the project manager and team • Obtaining buy-in from management and users
  • 8. © 2019 AHIMA ahima.org 8 Planning and Analysis Phase—Planning, 2 Feasibility study • Does proposed system meet objectives? • Evaluates code, benefits, issues • Tangible benefits • Intangible benefits • Results of study determine if the facility should proceed
  • 9. © 2019 AHIMA ahima.org 9 Planning and Analysis Phase—Planning, 3 Setting the budget • Selection and implementation expenses • Costs of maintain system • Software • Upgrading infrastructure • Hardware • Training • Renovations • Project management
  • 10. © 2019 AHIMA ahima.org 10 Planning and Analysis Phase—Planning, 4 • Consultant expenses • Travel expenses Goals and objectives • Based on business goals • SMART methodology • Specific • Measurable • Attainable • Relevant • Time-based
  • 11. © 2019 AHIMA ahima.org 11 Planning and Analysis Phase—Planning, 5 Project management • Formal set of principles and procedures that help control the activities associated with implementing a usually large undertaking to achieve a specific goal Project team • Represent multiple disciplines working on project Project manager
  • 12. © 2019 AHIMA ahima.org 12 Planning and Analysis Phase—Planning, 6 Obtaining buy-in • Management support • Communication
  • 13. © 2019 AHIMA ahima.org 13 Planning and Analysis Phase—Planning, 7 Change management: Formal process of introducing change, getting it adopted, and diffusing it throughout the healthcare facility Reduce fears Update staff on status
  • 14. © 2019 AHIMA ahima.org 14 Planning and Analysis Phase—Planning, 8 Organization of project • Project • Specific objective • Series of activities • Defined start and stop dates • Deliverables
  • 15. © 2019 AHIMA ahima.org 15 Project Team, 1 Membership varies Discuss project and issues H I M frequently on team Information systems project steering committee • Chief information officer
  • 16. © 2019 AHIMA ahima.org 16 Project Team, 2 User task force Vendor role Consultant
  • 17. © 2019 AHIMA ahima.org 17 Project Team, 3 Project manager • Budget • Resources • Negotiations • Schedule
  • 18. © 2019 AHIMA ahima.org 18 Defining Scope of Project Project definition • Purpose • Link to business strategy • Goals and scope Scope creep
  • 19. © 2019 AHIMA ahima.org 19 Project Plan Tasks to be performed • Components • Feasibility study • Resources • Design • Hardware and software procurement • Transition • Implementation • Support and evaluation
  • 20. © 2019 AHIMA ahima.org 20 Project Management Tools Gantt chart Project evaluation and review technique chart Project plan Trouble tickets Status reports
  • 21. © 2019 AHIMA ahima.org 21 Systems Analysis, 1 Collecting, organizing, and evaluating data on the healthcare facility and the information that it needs Functional requirements Internal scanning External scanning
  • 22. © 2019 AHIMA ahima.org 22 Systems Analysis, 2 Tools to gather data • Questionnaire • Interviews • Structured • Unstructured • Semistructured • Observations • Flowcharts
  • 23. © 2019 AHIMA ahima.org 23 Design Phase Build versus buy versus cloud computing
  • 24. © 2019 AHIMA ahima.org 24 Design Phase—Cloud Computing, 1 Advantages • Collaboration • Speed • Mobility • Privacy and security • Decreased costs
  • 25. © 2019 AHIMA ahima.org 25 Design Phase—Cloud Computing, 2 Disadvantages • Less control • Scheduling maintenance and upgrades • Rental
  • 26. © 2019 AHIMA ahima.org 26 Design Phase—Build Built based on needs of organization Takes long time to develop Detailed planning required Long-term maintenance High development cost
  • 27. © 2019 AHIMA ahima.org 27 Design Phase—Buy May not completely meet needs • Alpha site • Beta site
  • 28. © 2019 AHIMA ahima.org 28 Design Phase—Integrated versus Interfaced Integrated • Designed to work together • Best of fit Interfaced • Interface • Best of breed
  • 29. © 2019 AHIMA ahima.org 29 System Selection—Steps Request for information Request for proposal Evaluation of proposed I S Selection of I S Contract negotiation
  • 30. © 2019 AHIMA ahima.org 30 System Selection Request for information (RFI) Request for proposal (RFP)
  • 31. © 2019 AHIMA ahima.org 31 System Selection—RFP, 1 Letter of introduction • Bidders conference Information for potential vendors Description of system • Functional requirements • Mandatory • Desirable • Luxury
  • 32. © 2019 AHIMA ahima.org 32 System Selection—RFP, 2 Required format Instructions Sample documentation/contract/resumes Vendor profile
  • 33. © 2019 AHIMA ahima.org 33 System Selection—RFP, 3 Testing requirements System selection criteria Training requirements References
  • 34. © 2019 AHIMA ahima.org 34 System Selection—Evaluation of Proposed Systems Onsite and online demonstrations Site visits Review of RFP Reference checks
  • 35. © 2019 AHIMA ahima.org 35 System Selection—Selection Quantifiable method Point system Weighted decision matrix
  • 36. © 2019 AHIMA ahima.org 36 System Selection—Contract Negotiation Contract team Win-win situation
  • 37. © 2019 AHIMA ahima.org 37 System Selection—Contract Negotiation: Clauses, 1 Software license Delivery dates Warranties and guarantees Responsibilities of each party The state whose laws govern the contract
  • 38. © 2019 AHIMA ahima.org 38 System Selection—Contract Negotiation: Clauses, 2 Cost Milestones for payment Force majeure Software in escrow Cancellation of contract
  • 39. © 2019 AHIMA ahima.org 39 System Selection—Contract Negotiation: Clauses, 3 Version of software to be installed Penalties Acceptance testing Maintenance and updates Training Documentation