Successfully Implementing an  Aggregate Spend Solution     February 19, 2013
Agenda   Understanding the Current Environment - Survey   Implementation Case Study   Approach for Implementing Aggrega...
Understanding the Current Environment - SurveyAGGREGATE SPEND SOLUTION/SYSTEM EFFECTIVENESS My Company is Live on an Aggr...
Understanding the Current Environment - SurveyIMPLEMENTATION EFFORT My Implementation was completed on time, within budge...
Implementation Case Study
Implementation Case StudyREQUIREMENT As a result of a DPA a mid size medical device company  was required to implement a ...
Implementation Case StudySELECTED SOLUTION Without understanding business requirements or determining  required functions...
Implementation Case StudyRESULTS After 1 year of attempting to implement the solution, the  manufacturer abandoned the ef...
Approach for ImplementingAggregate Spend Solutions
Implementing an Aggregate Spend SolutionAPPROACH The “Ready, Fire, Aim…” approach usually results in missteps, missed  mi...
Implementing an Aggregate Spend SolutionUNDERSTAND THE “AS-IS” ENVIRONMENT Step 1: Assess Current Landscape    Document ...
Implementing an Aggregate Spend SolutionDETERMINE REQUIREMENTS FOR DESIRED STATE Step 2: Develop a functional vision for ...
Implementing an Aggregate Spend SolutionDETERMINE REQUIREMENTS FOR DESIRED STATE Step 2: Challenges   o Planning/Implemen...
Implementing an Aggregate Spend SolutionDETERMINE GAPS Step 3: Identify gaps that exist between the existing  environment...
Implementing an Aggregate Spend SolutionDESIGN SOLUTION Step 4: Design solution that will support the desired “to-be”  st...
Implementing an Aggregate Spend SolutionDESIGN SOLUTION Step 4 Challenges   o Teams shift focus to technology features in...
Implementing an Aggregate Spend SolutionIMPLEMENT SOLUTION Step 5: Implement design and prepare for process changes    I...
Implementing an Aggregate Spend SolutionIMPLEMENT SOLUTION Step 5: Challenges   o Business users want to change requireme...
Implementing an Aggregate Spend SolutionTEST AND ROLLOUT Step 6: Conduct System Test and User Acceptance Test  (UAT) - De...
Implementing an Aggregate Spend SolutionPROJECT MANAGEMENT Good project management is key to ensuring that the  solution ...
Implementing an Aggregate Spend SolutionRESOURCES AND STAFFING Sufficient number of project resources should be assigned,...
Key Takeaways
Recap and Key Takeaways Mistakes are made when companies select software  solutions prior to understanding the business n...
Thank you!Mark LinverManaging Directormlinver@huronconsultinggroup.com312.515.1677Suj PatelDirectorsujpatel@huronconsultin...
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Successfully Implementing an Aggregate Spend Solution

  1. 1. Successfully Implementing an Aggregate Spend Solution February 19, 2013
  2. 2. Agenda Understanding the Current Environment - Survey Implementation Case Study Approach for Implementing Aggregate Spend Solutions Key Takeaways
  3. 3. Understanding the Current Environment - SurveyAGGREGATE SPEND SOLUTION/SYSTEM EFFECTIVENESS My Company is Live on an Aggregate Spend Solution • The system optimally supports the business process • Not all processes are automated but the solution is functional My Company is Currently Implementing an Aggregate Spend Solution • First Implementation • Implementing upgrades or improvements to the existing solution • Replacing Existing Solution My Company is Currently Considering a new Aggregate Spend Solution
  4. 4. Understanding the Current Environment - SurveyIMPLEMENTATION EFFORT My Implementation was completed on time, within budget and encountered minimal issues Experienced Issues implementing the Aggregate Spend Systems • Experienced difficulties implementing business/functional requirements • Not all data elements captured in the source systems • Encountered delays integrating spend reporting system Will need to make modifications based on release of final rule
  5. 5. Implementation Case Study
  6. 6. Implementation Case StudyREQUIREMENT As a result of a DPA a mid size medical device company was required to implement a solution that would allow them to manage all items related to HCP spend • Intent of the requirement was provide controls and reports for all elements across the spend reporting continuum
  7. 7. Implementation Case StudySELECTED SOLUTION Without understanding business requirements or determining required functions, executive management selected a software solution to address DPA requirements “Ready, Fire, Aim….” approach resulted in the following gaps: • Business Process was not identified • Data requirements were not identified • Users were not involved in the solution/software selection
  8. 8. Implementation Case StudyRESULTS After 1 year of attempting to implement the solution, the manufacturer abandoned the effort to implement the selected solution Resulted in: • Loss of confidence in attempted solution by the business users • Loss of confidence by the Federal Monitors • Significant budget overrun Manufacturer revised approach Select DevelopDetermine Determine Functional and Test and Software ImplementRequirements Business Technical Rollout Process Solution Specs
  9. 9. Approach for ImplementingAggregate Spend Solutions
  10. 10. Implementing an Aggregate Spend SolutionAPPROACH The “Ready, Fire, Aim…” approach usually results in missteps, missed milestones, overspent budgets and missed requirements A disciplined system development life cycle provides for the necessary requirements, implementation and testing phases that help deliver an appropriate solution DetermineUnderstand the Requirements Determine Design Test and Implement“As-Is” for Desired Gaps Solution Rollout SolutionEnvironment State
  11. 11. Implementing an Aggregate Spend SolutionUNDERSTAND THE “AS-IS” ENVIRONMENT Step 1: Assess Current Landscape  Document the “as-is” process for capturing all spend data across the spend reporting continuum  Create an inventory of existing master data elements (i.e. HCP master data, natures, purposes, product, etc.)  Create an inventory of systems to capture and manage HCP master and spend data Challenges o Processes are not fully developed or integrated o Different business units are involved and priorities differ o Managing Uncertainty o Organization may not be aware of all necessary reporting elements
  12. 12. Implementing an Aggregate Spend SolutionDETERMINE REQUIREMENTS FOR DESIRED STATE Step 2: Develop a functional vision for the “to-be” state  Develop process/work flow descriptions that describe/illustrate how the “to-be” process should function  Identify all functional processes, regulatory requirements, work flow requirements and interdepartmental dependencies  Identify required data elements to satisfy process, regulatory, work flow and interdepartmental requirements  Identify technology touch points or system interactions throughout the business process  Identify control points or items  Ensure an ability to produce required reports  Ensure an ability to produce an audit trail
  13. 13. Implementing an Aggregate Spend SolutionDETERMINE REQUIREMENTS FOR DESIRED STATE Step 2: Challenges o Planning/Implementing for regulatory changes – Requirements recently published in the Final Rule o Data Collection beginning 1 August 2013 o Disclosures must be reported to CMS by March 31, 2014 o Data published for public on Sept 20, 2014 o 45-day “review and correction” period to ensure accuracy of disclosures o 15-day post-review period o Resistance to change o Looking for technology solutions before completely identifying desired processes, or functions or approaches
  14. 14. Implementing an Aggregate Spend SolutionDETERMINE GAPS Step 3: Identify gaps that exist between the existing environment and desired “to-be” state  Determine gaps for: ‐ Business processes, ‐ Functional requirements, and ‐ Data elements  Identify root cause for gaps identified – not all gaps are system related  Identify approach for closing identified gaps Challenges o Gaps in data collection can be result of gaps in policy or result from business processes not being followed
  15. 15. Implementing an Aggregate Spend SolutionDESIGN SOLUTION Step 4: Design solution that will support the desired “to-be” state  Determine system requirements that support business process, functional requirements, regulatory requirements, workflow, reporting requirements  Incorporate all design elements in a specification document  Select system components for the solution that satisfy functional and business requirements ‐ Balance Processes with Technology ‐ Consider a Heterogeneous Solution
  16. 16. Implementing an Aggregate Spend SolutionDESIGN SOLUTION Step 4 Challenges o Teams shift focus to technology features instead of satisfying business requirements o Ensure solution is scalable and can adapt to a changing business and regulatory environment o Balance solution design with what’s “doable” ‐ Budget ‐ Time ‐ Resources ‐ Regulatory requirements ‐ Mandatory Milestones
  17. 17. Implementing an Aggregate Spend SolutionIMPLEMENT SOLUTION Step 5: Implement design and prepare for process changes  Implement selected vendor solutions  Develop data extraction and load routines  Begin developing system and user acceptance test plans and scripts  Ensure that implemented functionality developed is cross referenced to functional requirements and is operational in accordance with the specification
  18. 18. Implementing an Aggregate Spend SolutionIMPLEMENT SOLUTION Step 5: Challenges o Business users want to change requirements during implementation phase ‐ “Lock Down” requirements and minimize scope creep during the implementation phase o Not enough time is allocated to the implementation and unit test phase o Time for testing is usually the first area “squeezed” when other issues arise and milestones aren’t adjusted o Ensure sufficient unit testing is conducted by vendor and internal resources
  19. 19. Implementing an Aggregate Spend SolutionTEST AND ROLLOUT Step 6: Conduct System Test and User Acceptance Test (UAT) - Deploy Solution to the Production Environment  Conduct full end to end testing and ensure that all functions operate as specified in the requirements documents  Ensure full participation by the User Community during UAT  Ensure proper training is conducting  Implement support infrastructure sufficient enough to address on going business needs Step 6 Challenges: o Business users have other commitments o Support infrastructure must be established before the solution is deployed
  20. 20. Implementing an Aggregate Spend SolutionPROJECT MANAGEMENT Good project management is key to ensuring that the solution implementation is successfully deployed on-time and within budget  Ensure structure/procedures established to proactively manage: – Project Schedule – Project Budget – Issues – technical, compliance and business – Risk Challenges o Importance of assigning a skilled project manager full-time is sometimes overlooked o Project manager must have understanding of the subject matter, compliance requirements and has IT PM skills
  21. 21. Implementing an Aggregate Spend SolutionRESOURCES AND STAFFING Sufficient number of project resources should be assigned, roles clearly defined and oversight structure must be maintained Role Responsibilities Executive • Provide Executive leadership and guidance Management/Steering • Resolve issues/ “sticking points” Committee Project Core Working Team/ IT, • Overall responsibility for Quality Assurance Compliance and Business • Content expert subject matter, regulatory requirements, business functional Sponsors requirements, IT interactions • Provide independent review of all deliverables generated by the project team • Work closely with the project team to ensure total quality in all project activities Project Manager • Manage day to day activities of the project team • Lead and manage project activities and resolve issues • Verify the completion of milestones and deliverables • Work with the project team to develop project deliverables Business Analysts • Create all project deliverables IT team • Performs business, process, and data analysis • Evaluate/assess technical and data components of solution architecture • Complete application configuration • Develop data analysis models • Conduct system/integration tests • Conduct UAT
  22. 22. Key Takeaways
  23. 23. Recap and Key Takeaways Mistakes are made when companies select software solutions prior to understanding the business needs, processes and requirements. • Avoid the “Ready, Fire, Aim…” approach at all costs Implement solutions using a disciplined system development life cycle • Implementation cannot always be rushed to meet an established milestone without introducing risk Ensure that the project is staffed appropriately with enough resources that have the necessary skill sets
  24. 24. Thank you!Mark LinverManaging Directormlinver@huronconsultinggroup.com312.515.1677Suj PatelDirectorsujpatel@huronconsultinggroup.com312.833.2635

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