Assessing and Achieving Value in Health Care Information Systems Chapter 15 Health Care Information Systems: A Practical A...
Learning Objectives <ul><li>To be able to discuss the nature of IT-enabled value. </li></ul><ul><li>To review the componen...
Outline <ul><li>The definition of IT-enabled value </li></ul><ul><li>The IT project proposal </li></ul><ul><li>Steps to im...
The Definition of IT-Enabled Value <ul><li>Is both tangible and intangible </li></ul><ul><li>Can be significant </li></ul>...
Value Diversity <ul><li>Tangible (can be expressed in terms of money) </li></ul><ul><ul><ul><li>Increased revenue </li></u...
Value Diversity <ul><li>Tangible (can be measured in terms of strategic importance) </li></ul><ul><ul><ul><li>Growth in ma...
Analyses Varies by Type of Value Health Care Information Systems: A Practical Approach for Health Care Management  2nd Edi...
The IT Project Proposal <ul><li>The proposal is the cornerstone of the IT value examination </li></ul><ul><ul><ul><li>Defi...
Common Proposal Problems <ul><li>Fractions of effort </li></ul><ul><li>Reliance on complex behavior </li></ul><ul><li>Unwa...
Steps to Improve Value Realization <ul><li>Make sure that the homework was done </li></ul><ul><li>Require formal project p...
Why Does the IT Investment Fail to Deliver Returns? <ul><li>Fails to clearly link IT investments and organizational strate...
What Questions Should We Ask the Business Sponsor? <ul><li>What are the steps and investments, including IT, that we need ...
Value Happens When Value is Managed Health Care Information Systems: A Practical Approach for Health Care Management  2nd ...
What Causes Value? Brown and Hagel, 2003 <ul><li>Innovation in business practices </li></ul><ul><li>Economic value results...
Summary <ul><li>IT value is complex, multi-faceted and diverse </li></ul><ul><li>The project proposal is a core means for ...
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Wager chapter15 2nded-000

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Wager chapter15 2nded-000

  1. 1. Assessing and Achieving Value in Health Care Information Systems Chapter 15 Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  2. 2. Learning Objectives <ul><li>To be able to discuss the nature of IT-enabled value. </li></ul><ul><li>To review the components of the IT project proposal. </li></ul><ul><li>To be able to understand steps to improve IT project value realization. </li></ul><ul><li>To be able to discuss why IT investments can fail to deliver returns. </li></ul><ul><li>To review factors that challenge the realization of IT value. </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  3. 3. Outline <ul><li>The definition of IT-enabled value </li></ul><ul><li>The IT project proposal </li></ul><ul><li>Steps to improve value realization </li></ul><ul><li>Wht IT investments may fail to deliver returns </li></ul><ul><li>Analyses of the IT value challenge </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  4. 4. The Definition of IT-Enabled Value <ul><li>Is both tangible and intangible </li></ul><ul><li>Can be significant </li></ul><ul><li>Can be diverse across IT proposals </li></ul><ul><li>Can be diverse within one proposal </li></ul><ul><li>Appropriate analysis techniques depend on the nature of the value </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  5. 5. Value Diversity <ul><li>Tangible (can be expressed in terms of money) </li></ul><ul><ul><ul><li>Increased revenue </li></ul></ul></ul><ul><ul><ul><li>Reduced labor costs </li></ul></ul></ul><ul><ul><ul><li>Reduced utilization of ancillary services </li></ul></ul></ul><ul><li>Tangible (can be measured in terms of process improvements) </li></ul><ul><ul><ul><li>Fewer errors </li></ul></ul></ul><ul><ul><ul><li>Faster turnaround </li></ul></ul></ul><ul><ul><ul><li>Reduced time to get an appointment </li></ul></ul></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  6. 6. Value Diversity <ul><li>Tangible (can be measured in terms of strategic importance) </li></ul><ul><ul><ul><li>Growth in market share </li></ul></ul></ul><ul><ul><ul><li>Reduced turnover </li></ul></ul></ul><ul><ul><ul><li>Improved patient satisfaction </li></ul></ul></ul><ul><li>Intangible </li></ul><ul><ul><ul><li>Improved decision making </li></ul></ul></ul><ul><ul><ul><li>Improved collaboration </li></ul></ul></ul><ul><ul><ul><li>Increased agility </li></ul></ul></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  7. 7. Analyses Varies by Type of Value Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  8. 8. The IT Project Proposal <ul><li>The proposal is the cornerstone of the IT value examination </li></ul><ul><ul><ul><li>Defines intended value </li></ul></ul></ul><ul><ul><ul><li>Presents application </li></ul></ul></ul><ul><ul><ul><li>Reviews related changes, e.g., process re-engineering </li></ul></ul></ul><ul><ul><ul><li>Reviews costs </li></ul></ul></ul><ul><li>Sources of value information </li></ul><ul><ul><ul><li>Consultants </li></ul></ul></ul><ul><ul><ul><li>Conferences </li></ul></ul></ul><ul><ul><ul><li>Colleagues </li></ul></ul></ul><ul><ul><ul><li>Publications </li></ul></ul></ul><ul><ul><ul><li>Vendors </li></ul></ul></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  9. 9. Common Proposal Problems <ul><li>Fractions of effort </li></ul><ul><li>Reliance on complex behavior </li></ul><ul><li>Unwarranted optimism </li></ul><ul><li>Shaky extrapolations </li></ul><ul><li>Phantom square feet </li></ul><ul><li>Underestimating the effort </li></ul><ul><li>Fairy-tale savings </li></ul><ul><li>Failure to account for post implementation costs </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  10. 10. Steps to Improve Value Realization <ul><li>Make sure that the homework was done </li></ul><ul><li>Require formal project proposals </li></ul><ul><li>Increase accountability for investment results </li></ul><ul><li>Conduct post implementation audits </li></ul><ul><li>Celebrate value achievement </li></ul><ul><li>Leverage organizational governance </li></ul><ul><li>Shorten the deliverables cycle </li></ul><ul><li>Benchmark value </li></ul><ul><li>Communicate value </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  11. 11. Why Does the IT Investment Fail to Deliver Returns? <ul><li>Fails to clearly link IT investments and organizational strategy </li></ul><ul><li>Asks the wrong question </li></ul><ul><li>Conducts the wrong analysis </li></ul><ul><li>Does not state its investment goals </li></ul><ul><li>Does not manage outcomes </li></ul><ul><li>Leaps to an inappropriate solution </li></ul><ul><li>Mangles the project management </li></ul><ul><li>Fails to learn from studies of IT effectiveness </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  12. 12. What Questions Should We Ask the Business Sponsor? <ul><li>What are the steps and investments, including IT, that we need to take in order to achieve our goals? </li></ul><ul><li>Which “business” manager owns the achievement of these goals? Do they have our confidence? </li></ul><ul><li>Do the costs, risk and timeframe for the implementation of the set of investments, including the IT investment, seem appropriate given our goals? </li></ul><ul><li>Have we assessed the tradeoffs and opportunity costs? </li></ul><ul><li>Are we comfortable with our ability to execute? </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  13. 13. Value Happens When Value is Managed Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  14. 14. What Causes Value? Brown and Hagel, 2003 <ul><li>Innovation in business practices </li></ul><ul><li>Economic value results from incremental innovations rather than “big bang” initiatives </li></ul><ul><li>Strategic value results from the cumulative effect of sustained initiatives to innovate business practices </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser
  15. 15. Summary <ul><li>IT value is complex, multi-faceted and diverse </li></ul><ul><li>The project proposal is a core means for assessing value </li></ul><ul><li>There are many factors that can dilute value </li></ul><ul><li>There are steps that can be taken to improve the achievement of IT value </li></ul>Health Care Information Systems: A Practical Approach for Health Care Management 2nd Edition Wager ~ Lee ~ Glaser

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