The document outlines an approach for successfully implementing an aggregate spend solution with 6 key steps: 1) understand the current environment, 2) determine requirements for the desired state, 3) identify gaps, 4) design the solution, 5) implement the solution, and 6) test and rollout the solution. It emphasizes determining requirements before selecting technology, managing change throughout, and having strong project management. Common challenges include shifting focus to technology over requirements and minimizing scope changes during implementation.

1. Successfully Implementing an
Aggregate Spend Solution
February 19, 2013

2. Agenda
 Understanding the Current Environment - Survey
 Implementation Case Study
 Approach for Implementing Aggregate Spend Solutions
 Key Takeaways

3. Understanding the Current Environment - Survey
AGGREGATE 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. Understanding the Current Environment - Survey
IMPLEMENTATION 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. Implementation Case Study

6. Implementation Case Study
REQUIREMENT
 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. Implementation Case Study
SELECTED 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. Implementation Case Study
RESULTS
 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 Develop
Determine Determine Functional and Test and
Software Implement
Requirements Business Technical Rollout
Process Solution
Specs

9. Approach for Implementing
Aggregate Spend Solutions

10. Implementing an Aggregate Spend Solution
APPROACH
 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
Determine
Understand the Requirements Determine Design Test and
Implement
“As-Is” for Desired Gaps Solution Rollout
Solution
Environment State

11. Implementing an Aggregate Spend Solution
UNDERSTAND 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. Implementing an Aggregate Spend Solution
DETERMINE 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. Implementing an Aggregate Spend Solution
DETERMINE 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. Implementing an Aggregate Spend Solution
DETERMINE 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. Implementing an Aggregate Spend Solution
DESIGN 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. Implementing an Aggregate Spend Solution
DESIGN 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. Implementing an Aggregate Spend Solution
IMPLEMENT 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. Implementing an Aggregate Spend Solution
IMPLEMENT 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. Implementing an Aggregate Spend Solution
TEST 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. Implementing an Aggregate Spend Solution
PROJECT 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. Implementing an Aggregate Spend Solution
RESOURCES 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. Key Takeaways

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. Thank you!
Mark Linver
Managing Director
mlinver@huronconsultinggroup.com
312.515.1677
Suj Patel
Director
sujpatel@huronconsultinggroup.com
312.833.2635