Transcript IBV Cloud Industry POV Template

Cloud in Healthcare
IBM Institute for Business Value
Partner’s Name, Partner’s Title
DD Month YYYY
© 2014 IBM Corporation
Executive summary
 Healthcare organizations are using cloud to achieve more than just cost savings and
scalability. They see it playing a fundamental role in helping them to become more
collaborative, data driven, and patient and family-centered.
 In particular, cloud computing is helping healthcare organizations to achieved rapid
innovation of novel products and services; improve and re-engineer their business
processes and workflows as well as increasing engagement and collaboration internally and
across the healthcare ecosystem.
 And they are already seeing significant benefits in terms of improving patient outcomes;
innovating service delivery; and reducing costs and improving value.
 However, adoption of cloud in the healthcare industry to date has been slow due to security
and regulatory concerns but these issues are addressable.
 IBM is uniquely positioned to help healthcare organizations envision and implement
innovative cloud-based strategies.
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IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
healthcare
industry
2
The traditional
healthcare industry
operating model
will evolve
3
IBM can help
3
IBM Institute for Business Value
© 2014 IBM Corporation
Transformative technologies are disrupting industries
Mobile revolution
Connectivity, access and
participation are growing
rapidly
Social media explosion
Quickly becoming the primary
communication &
collaboration format for
business
transformation
Hyper digitization
Digital content is produced in
greater volumes, shared and
accessed more quickly than
ever before
The power of analytics
The ability to use analytics for
instant decisions making by
driving insights
Transformational cloud – Cloud’s attributes make it a
powerful delivery model enabling new business models,
cost benefits, flexibility and large on-demand capacity
Ecosystem of connected health and wellness
apps that delivers a consolidated view of users’
health. Strong & growing ecosystem with APIs
and Apps that cover all aspects of health care 1
Uber has successfully harnessed the power of
cloud computing and has already begun
disrupting the professional car hire services
industry
The Xerox Mobile Print platform uses cloud to
convert and process print requests.
This removes complexity from end-users,
reduces costs & management of diverse
devices and print configurations.
Source: [1] http://www.forbes.com/sites/peterhigh/2013/08/05/meg-mccarthys-climb-from-cio-to-evp-of-operations-and-technology-at-aetna/
[2] http://betaboston.com/news/2014/07/03/uber-mobile-app-cloud-service-api/
[3] Joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders
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© 2014 IBM Corporation
Critical drivers and changing expectations are transforming the
healthcare industry along with new technologies
Healthcare based drivers
Technology driven forces
Demographics and Lifestyle
• Expectations for better quality,
value and outcomes
• Aging population and escalating
incidence of chronic disease
Connected and Open
• Proliferation of mobile devices
and internet access
• Fosters collaboration within the
ecosystem
Increased Competition and
Regulations
• More regulations and compliance
requirements
• Technology enabled new
competition
HEALTHCARE
TRANSFORMATION
Resource Shortages
• Shortage of right skills,
capabilities and supplies
• Shortage of consumer and
provider based services
Fast and Scalable
• Anticipate unknown requirements
and quickly address them
• Reduced cost of innovation
Increasing Complexity/
Yet More Consumable
• Increased but masked complexity
• Analytics and insights to drive
decision-making
Sources: IBM Analysis 2014
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IBM Institute for Business Value
© 2014 IBM Corporation
Market forces driving healthcare industry convergence are
challenging the current model of how IT is financed and delivered
 Declining
reimbursement
 Increased
demand for
quality services
Providers
 Market
consolidation
 New players,
increased
competition
Healthcare
Delivery
Organizations
 New care
models
 Reduced cost
of delivery
Payers
 Healthcare
Insurance
Exchanges, are
a risk as well as
opportunity
Extreme pressures to do more with less is making the case for
……a new operating model for healthcare
Sources: IBM Analysis 2014
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© 2014 IBM Corporation
Healthcare will become more collaborative, data driven and patient
and family-centered
Future of Healthcare
INTEGRATED HEALTHCARE ECOSYSTEM
 Players across the healthcare value chain will focus on the continuum of healthcare
delivery around patients- single patient and/or family view
PERSONALIZED ANYTIME ANYWHERE HEALTHCARE
 Instantaneous access to digitized patient health records through cloud to specialists
anytime and anywhere
CONVERGENCE OF HEALTHCARE AND MOBILITY WITH INTERNET OF THINGS
 Healthcare providers will place mobile diagnostic devices in patients’ homes, link these
to cloud platforms, and monitor them continually
ACTIONABLE INSIGHTS DRIVEN AND TARGETED HEALTHCARE
 Insights based on analytics that are integrated with mobile devices or smart sensors will
be used to improve clinical outcomes
HEALTHCARE ACCESS FOR RURAL AND POOR PEOPLE
 Cloud technologies will transform healthcare in previously inaccessible regions because
physical infrastructure can be bypassed
Sources: IBM Analysis 2014
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© 2014 IBM Corporation
But significant challenges within and related to the industry require
new approaches
 Large amount of inefficiencies exist in
the access and delivery of healthcare
 The education system needs to
support the growth in healthcare
including more affordable careers in
healthcare
 Governments need to prepare
themselves for increasing social
services and healthcare requirements
Healthcare and related industries need to
overcome significant levels of inefficiencies1
40%
Improvement potential as %
of system inefficiency
Communities and regions face evolving
threats based on the three interlinked
risks
35%
30%
Electricity
2,940
Financial
4,580
Building &
Healthcare
Transport
4,270
Infrastructure
12,540
Education
1,360
Food & Water
4,890
25%
20%
Communication
Transportation
3,960
(Goods & passenger)
Leisure / Recreation 6,950
/ Clothing -7,800
15%
15%
20%
25%
Government &
Safety
5,210
Note: Size of the bubble indicate absolute
value of the system in USD Billions
30%
35%
40%
45%
System inefficiency as % of total economic value by system
Sources: IBM Institute for Business Value analysis based on 2009 survey of 518 economists, http://www-05.ibm.com/tr/events/ibmcozumlerzirvesi2011/pdf/GBE03278USEN.PDF
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IBM Institute for Business Value
© 2014 IBM Corporation
Healthcare organizations are focusing on three areas in order to
become smarter
ACHIEVE BETTER
QUALITY
AND OUTCOMES
COLLABORATE FOR
PREVENTION AND
WELLNESS
Applying insights to improve
quality of care, clinical
outcomes and deliver
personalized healthcare
value, while reducing
medical costs
Collaborating across care
settings to deliver integrated,
personalized care
experiences, prevent disease,
promote wellness and
manage care
IMPROVE
OPERATIONAL
EFFECTIVENESS
Building flexibility into
operations to support cost
reduction and excellence in
clinical and business
performance and practices
These organizations can draw on the power of the cloud to be effective
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud can play a fundamental role in helping these organizations to
achieve their stated objectives and become smarter
Cloud computing is a pay-per-use
consumption and delivery model
that enables real-time delivery of
configurable computing resources
(for example, networks, servers,
storage, applications, services).
Cloud’s essential
characteristics
Cloud empowers six potentially “game changing” business
enablers
Cost flexibility
 Shifts CapEx to OpEx
 Shifts cost from fixed to variable, pay as you go
Business Scalability
 Allocate and release resources based on
demand
 Gain from scale economics
Market adaptability
 Speeds time to market
 Supports rapid prototyping and innovation
Broad
Network
Access
Rapid
Elasticity
Masked complexity
 Expands product sophistication
 Simpler for customers/users
On-demand
self service
Measured
service
Context-driven
variability
 Drives context-driven, user-centric experiences
(preferences, movements, behaviors)
Ecosystem
connectivity
 Facilitates new value nets of partners,
customers and other external players
 Enables industry platforms
Resource Pooling
Source: NIST, IBM IBV Power of cloud study
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud enabled collaboration, analytics and service delivery help
healthcare organizations to achieve better outcomes
Improve diagnosis and
monitoring
Innovate service delivery
Reduce cost and improve
value
$
 Foster virtual collaboration
 Leverage full potential of
existing patient data
 Address challenges in
analyzing patient needs
 Provide platforms for open
innovation
 Integrate data silos and
optimizes information flow
 Expand delivery network
 Increase resource
utilization
 Reduce response time in
the case of emergencies
 Simplify processes,
reducing administration
cost
Healthcare organizations can use cloud to achieve more than just cost savings and scalability
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud can drive significant value creation and competitive
advantage
IMPROVE DIAGNOSIS
AND MONITORING
70
online communities
of best practices1
Colleagues in Care virtually
connects healthcare
professionals around the
globe to collaborate and
improve healthcare in Haiti
INNOVATIVE SERVICE
DELIVERY
78
countries use the
cloud based platform 2
Boston Children’s Hospital
built a cloud-based, digital
learning platform connecting
medical practitioners and
unlocking innovations and
medical insights
REDUCE COSTS AND
INCREASE VALUE
%
15
Reduction
in opex3
Narayana Health - a chain of
hospitals based in India used cloud to cut costs,
improve productivity and
enable a more effective
workforce
Sources: Please see the notes section
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud has already enabled significant benefits in healthcare
IMPROVE DIAGNOSIS
AND MONITORING
%
100
Improvement
in disaster
response
capabilities1
The Chilean Red Cross
achieved an unprecedented
level of efficiency and speed
in mobilizing people and
resources by deploying a
cloud based system
INNOVATIVE SERVICE
DELIVERY
%
26
improved
medication
adherence2
MediSafe's mobile based and
cloud-synced database allows
family and friends to aid in the
medical care of a loved one
REDUCE COSTS AND
INCREASE VALUE
%
15
Improvement
in staff
productivity3
Ottawa Hospital harnessed
cloud to deliver best possible
care and outcomes for every
patient with improved
processes and mobile
experience for clinicians
Sources: Please see the notes section
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IBM Institute for Business Value
© 2014 IBM Corporation
Healthcare leaders believe the benefits of moving technology to the
cloud outweigh the inhibitions – which are addressable
66%
of healthcare organizations achieved rapid innovation of novel
products and services
60%
of healthcare organizations improved and re-engineered their
business processes and workflows
59%
of healthcare organizations increased engagement and
collaboration across organization and ecosystem
Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation. For more info, visit: ibm.com/ibmcai/globalcloudstudy
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud promises a significant shift away from today’s business
model, and a wealth of associated potential benefits
CAPABILITIES
FROM…
…TO
Business Process and SOPs
Company-specific
Consistent, shared-process
Sourcing
Limited ability to ramp business
resources within tight timelines
Flexible business resource ramping
One-offs
Common platforms for flexible
collaboration
Relationship with Partners
Multi-channel, varied
experiences, duplicative
Consistent and credentialed once
Knowledge & Talent
Management
Slow on-boarding - training on
unique processes
Rapid on-boarding using standard
processes
Integration with Entire Care
Continuum
Pilot efforts by numerous
sponsors
Collective effort
Flexibility to Support Business
Ventures
Limited
Flexible
Management of Clinical IS
Capacity
Limited ability to ramp IT within
tight timelines
Flexible IT ramping – ability to trade-off
cost for time
Applications & Data
Siloed Applications and Data,
sparse industry standards
Services utilizing ubiquitous data with
defined & adopted industry standards
Business Collaborations
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© 2014 IBM Corporation
Cloud solutions are more than just virtualization; they lead to a new
information and service model
Personalized treatment planning
Integrated health services
Referral services
Home care monitoring
Improve patient & family
communication
mHealth
Patient event alerting
Improve point-of-care decisions
Self service portals
Dynamic and flexible IT services
Business & IT alignment
Streamline & transform IT processes
Rapid provisioning of compute & storage
Compliance management
Efficient use of resources at scale
Sources: IBM Cloud Solutions for Smarter Healthcare: Onboarding cloud @IBMcloud
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IBM Institute for Business Value
© 2014 IBM Corporation
But cloud adoption in the industry has been slow given security and
regulatory concerns
Inhibitors to cloud adoption – Global1
Security and
regulatory concerns
top of mind
Security concerns
Regulatory or compliance issues
Immaturity of Cloud - it is a new technology
Reliability concerns in terms of service availability …
We're worried about being "stranded" in the Cloud
Will cost too much to change to or build Cloud services to …
Health
Hard to integrate with in-house IT systems and …
All Industries
Concerns Cloud cannot support the …
IT governance issues, including challenges related to …
Reduced customization opportunities
Worries that our network inf rastructure …
We don't have the IT skills to implement Private Cloud, or …
We simply don't see enough benef it to make a change
0%
10%
20%
30%
40%
50%
60%
Healthcare industry has witnessed unprecedented levels of security breaches2,
cloud providers need to convince that they can provide additional layer of security
Source: Please see the notes
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IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
healthcare
industry
2
The traditional
healthcare industry
operating model
will evolve
3
IBM can help
18
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud adoption can deliver efficiencies, collaborative care and better
quality and outcomes in healthcare
 Operations flexibility
OPERATIONAL
EFFECTIVENESS
 Reduced costs
 Clinical excellence
 Personalized care
COLLABORATIVE
CARE
 Information integration
 Clinical best practices
 Analytics based insights
BETTER QUALITY
AND OUTCOMES
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 Personalized value
 Improved outcomes
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud roadmap: the five stage approach for healthcare
1
Create Cloud
strategy,
architecture
and plans
Determine the
organization goals,
platform requirements
& complexity
associated
Develop enterprise
cloud strategy, options
available and roadmap
Envision the cloud
architecture that will
support cloud initiatives
Update IT Strategy and
IT plans to align them
with cloud strategy
2
Identify and
prioritize
workloads
3
Determine
cloud
deployment
options
4
Develop Cloud
business case
Define business drivers
to prioritize use cases
for cloud
Define multi-sourcing
models and cloud
vendor selection criteria
Develop cloud cost
models including
transition
Implement a
CloudFirst strategy to
evaluate right blend of
cloud options for new
projects
Assess and determine
how to best leverage
the options of private,
public and hybrid
delivery models
Finalize a cloud
business case and
examine its ROI
including time required
for initial payback
Assess and evaluate
from the current
applications, the best
candidates for cloud
Develop Cloud Service
Catalog, SLAs and
KPIs
5
Prepare for
implementation
Prepare infrastructure
for cloud
Develop
 Cloud Risk
Management plan
and policies
 Security and
Compliance plan and
processes
 Transition plan
including workforce
transition
Assess impact on
operating model;
identify and plan
changes required
Determine the
applications to be
moved to cloud
Cloud planning should result in accelerated migration, quick wins and mitigated risks
Note: The above shows an overall plan and will include aspects of workload prioritization and migration discussed in other slides
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IBM Institute for Business Value
© 2014 IBM Corporation
Cloud strategy comprises four elements
Strategy
1
2
3
4
5
APPLICATION AND
DELIVERY PLATFORMS
BUSINESS MODELS
ENABLED BY CLOUD
Driving agility and productivity
for the enterprise; tested
strategies to improve life cycle
performance
Promoting highly competitive
initiatives at the enterprise
and Industry level
INFRASTRUCTURE
PLATFORMS
Enterprise
Cloud
Strategy
Instantiating well-integrated
business intelligence to
manage the enterprise
Delivering consumable,
secure and readily available
resources to enable agile
execution
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DATA PLATFORMS
IBM Institute for Business Value
© 2014 IBM Corporation
Enterprise innovation is realized by integrating new technologies
with existing core systems
Strategy
1
2
3
4
5
Systems of insight
Advanced analytics and cognitive computing
systems that harness big data, enabling
competitive advantage for enterprises
Systems of
Insight
Enterprise
Innovation
Systems of
Record
Systems of
Engagement
Systems of engagement
Leverage mobile and social to transform
relationships with patient, providers, employees &
members
Systems of record
The traditional core systems such as accounting
applications and product systems that record key
internal data
Pervasive Security Intelligence
A dynamic approach to threat reduction through a
life cycle of prevention, detection and response
Enabled by Cloud
Security
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Cloud enables leaders to take a systematic
approach to integrate these capabilities to drive
enterprise innovation
IBM Institute for Business Value
© 2014 IBM Corporation
Organizations should evaluate born-on-the-cloud solutions along with
existing workload migration
Prioritization
Enterprise Cloud Adoption
1
2
3
4
Cloud First
5
New
project
New
project
Replace
existing
app / infra
BPaaS
PaaS
SaaS
IaaS
Business
case
Migrate existing
workloads
Select
Prioritize
Workload
analysis
23
Evaluate a blend of cloud options
that best suit the project
requirements
IBM Institute for Business Value
Quantify
Migrate
Migration Plan
Wave 1
Wave 2
Wave 3
© 2014 IBM Corporation
A decision framework with identified criteria helps in prioritizing migration of
existing applications to cloud
Prioritization
1
2
3
4
5
The Opengroup defines the term “workload” as the type and
characteristics of application(s) that can be hosted on the Cloud
Challenges to address:
 Now that I am ready for cloud, what workloads fit my target cloud?
 What is the real cost-benefit of moving workloads to the cloud?
Prioritization helps determine cloudable applications
Migration
plan
Business value
Deployment ease
 agility and elasticity
 number & type of connections
between the application and
other applications
MORE READY FOR
CLOUD
WAVE 1
 the amount and style (batch,
interactive) of data transferred
MAY BE READY FOR
CLOUD
WAVE 2
NOT READY FOR
CLOUD
WAVE 3
 value in rapid deployment
enhancing time to market
 pay-as-you-go pricing
model shifting fixed costs to
variable costs
 reduced capital expenditure
 lower operating costs
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Workload migration
categories
 the non-functional response
characteristics
 the security and compliance
requirements
IBM Institute for Business Value
© 2014 IBM Corporation
Optimizing workloads for cloud adoption will deliver enhanced
business value for healthcare organizations
Prioritization
1
2
3
4
Healthcare
Management
Infrastructure
Storage
Many Backoffice
Healthcare
Applications
Solutions
Many Risk
Mgmt. Applications
Collaboration
Information
intensive
Isolated
workloads
Sensitive
Data
New growth workloads made
possible by cloud
Many Billing
Applications
More ready for cloud
Analytics
5
Workplace, Mobile, Desktop
& Devices
Mature
workloads
Highly
customized
Business Processes
PreProduction
systems
Not yet virtualized
3rd party SW
Evaluate: May or may not
be ready for Cloud based
on their attributes or
maturity
Complex
processes &
transactions
Batch
processing
Regulation
sensitive
Disaster Recovery
Development & Test
Infrastructure
Compute
Note: The above is a representative example of what workloads can be moved to cloud
25
IBM Institute for Business Value
© 2014 IBM Corporation
A phased migration to cloud helps manage risks
Prioritization
1
2
3
4
5
Potential migration risks
 Incorrect analysis and identification of
workloads
Phased migration approach
Discovery Phase
 Inability to meet non-functional
requirements
Discover
Analyze
 Incorrect ROI analysis
 current assets
and usage
 cloud feature /
fit
 topologies &
dependencies
 cloud providers
 Inadequate preparation of infrastructure
/ apps for cloud
 Complex applications’ interoperability &
integration
 platforms and
licenses
 Failure to comply with security, privacy
& regulatory requirements
 SLA’s, security
& compliance
 Management complexity as resources
get distributed in a virtualized
environment
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Analysis Phase
Migration &
Validation Phase
Establish the
Migration Toolkit
Cloud-enable
infrastructure &
applications
 contract
models
Migrate
 resource sizing
 Applications,
Platforms and
Data
 workloads
 Infrastructure
 Operations
Services
Validate
Migration
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud deployment options enable healthcare organizations to adopt
the type of cloud that best meets their requirements
Deployment
1
2
3
4
Private cloud
5
Hybrid cloud
Public cloud
Value drivers …
Customization, efficiency,
availability, resiliency, security
and privacy
Value drivers …
Leverage flexibility and benefits of
private and public cloud while
addressing data security,
governance, compliance and
budgetary challenges
Value drivers …
Standardization, capital
preservation, flexibility and
time to deploy
Real world example
 South American Healthcare
System (Latin America)1
 Soon Chun Hyang
University Hospital (South
Korea)2
 Swiss Dental Group
(Switzerland)3
Real world example
 KPJ Healthcare Berhad
(Malaysia)4
 Hutchinson Regional Medical
Center (US)5
 Blue Shield California (US;
Dynamic Cloud) 6
Real world example
 Schumacher Group (US)7
 Fortis Healthcare (India)8
 RehabCare (US)9
Source: See speaker notes
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IBM Institute for Business Value
© 2014 IBM Corporation
A healthcare provider group invested in cloud to better serve its
patients, address business growth and drive greater efficiencies
Business Case
1
2
3
4
5
Business Challenge: Leading Hong Kong-based healthcare provider group, Quality HealthCare
Medical Services needed to enhance business reporting processes, improve its patient service
levels and create measurable IT-led efficiencies for its healthcare network.
VIRTUALIZATION
BENEFITS FOR IT USING CLOUD BASED
VIRTUALIZATION
BOTTOM LINE RESULTS
 Faster and more reliable patient information
delivery to doctors
 Reduced IT operational costs by 25 percent
 Enables seamless patient experience
 Achieved energy savings of 70 percent
 Provides a standardized and centralized
information delivery platform
 Achieved a 12 percent manpower resource
saving
 Virtualized environment dramatically increased
deployment speed and scalability
 Reduced number of servers from 100 to 8
 Lowered maintenance costs by 23 percent
Source:: Quality HealthCare Gets Shot in the ARM from IBM’s Cloud and Business Intelligence Solutions, http://www-03.ibm.com/systems/hk/resources/IBM_HealthcareL2.pdf
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IBM Institute for Business Value
© 2014 IBM Corporation
Security, privacy and compliance issues can be readily addressed
with cloud…
Implementation
2
3
4
5
As healthcare organizations start planning to
adopt cloud, key questions come up about their
data & applications:
 Where is our data stored? What about data
sovereignty?
 How do we protect our customers’ privacy?
 How does cloud affect our regulatory
compliance?
Critical elements to address security, privacy and
compliance concerns
HEALTHCARE
ORGANIZATION
1
Risk
Management
Plan
29
Cloud
requirements
Monitoring &
Auditing
CLOUD SERVICE
PROVIDER
 Is a business continuity plan available for
cloud?
IT Strategy
IBM Institute for Business Value
Cloud SLA
Risk & Security
Management
processes
Physical &
Logical controls
implementation
Audits & reports
© 2014 IBM Corporation
As healthcare organizations embrace cloud more aggressively,
changes to their operating model will occur that need to be addressed
Implementation
1
2
3
4
5
 An operating model is a framework for
formulating an operations strategy that best
deploys and determine the explicit choices
needed to achieve business goals
BUSINESS GOALS AND STRATEGY
Target
Operating
Model
 Market shifts in the digital economy
necessitate healthcare organizations adopt
new technologies like cloud, mobile, social
media and analytics
 To succeed with cloud, healthcare
organizations have to assess the impact of
cloud on the operating model and determine
what actions are required to make cloud
adoption smoother and more successful
Customer
Experience
Sourcing &
Alliances
Assets &
Locations
CULTURE
Technology
TOM
Skills &
Capabilities
Processes
Organization &
Governance
Performance
Metrics
ROADMAP FOR CHANGE
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Cloud can enable new models for care delivery and extension of
services
CUSTOMER JOURNEY
1 Capture health & device data
Bob is 75 years old and
has a chronic condition.
He became a new
patient several months
ago and is being
actively monitored via smart sensors
and his home health monitoring
system.
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2 Synthesize data insights
His doctor is alerted that
Bob’s weight has
increased, he did not
attend an appointment
and has not refilled his
prescription. The Dr. reviews &
synthesizes the insights from his
health sensors and sees his sleep
patterns have changed.
3 Validate & test results
Bob’s primary care
doctor requests an
immediate contact via a
mobile video
conference. While
connected, the doctor reviews Bob’s
current wrist sensor inputs. The
cause is determined and doctor
schedules a new appointment.
4 Update all health plan elements
5 Model potential scenarios
6 Revise virtual health plan
Bob comes in for visit,
Dr. Simmons pulls up
Bob’s health indicators,
lifestyle input trends and
Insure Co health team
notes on his medication. The
nutritionist is suggesting changes to
his diet. A new sensor input generate
a checklist of recommendations. The
Dr. is prepared for the appointment.
During the visit, Bob’s
interactive health chart
are displayed digitally.
The Dr. explains what is
causing concerns
Illustrating different scenarios to Bob.
The Dr. asks the virtual medical
assistant for recent Rx results data
and visually models expected
outcomes if Bob takes a new drug.
After the visit, Bob and
the InsureCo Health
receive a digital
summary with the
recommendations. Bob
accepts the changes. The health
team reacts and Bob is notified by his
health coach of some meal plans and
that a new medicine has been added
to his medication routine.
IBM Institute for Business Value
© 2014 IBM Corporation
Efficient sourcing and management of partnerships and alliances
will be major enablers of cloud adoption success
SOURCING & ALLIANCES
IMPACT
IMPLICATIONS
 Healthcare organizations will have more
partners and alliances through “Services”
being offered by outside organizations
 Procurement and sourcing functions will
need to be automated and have shortened
cycles
 Complexity will increase in service contracts
due to consumption-based billing
 Vendor and service management will be an
integral part of the Procurement function
 Service quality and availability need more
focus as they are managed through
relationships and agreements with diverse
third party ecosystem
 Service level agreements need to be
defined clearly and governed by the need to
secure and protect patient data in a shared
environment
 Service adoption to meet benefits
realization needs to be included in the
negotiating process
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© 2014 IBM Corporation
Business leaders will pro-actively redesign business architecture
and processes to leverage benefits of cloud
PROCESSES
IMPACT
IMPLICATIONS
 The cloud strategy and technologies will
require a shift from systems-based processes
to services-based processes
 Traditional legacy processes will need to be
decommissioned or integrated into the new
cloud-enabled processes
 Cloud’s speed of service delivery impacts
current processes as they need to match and
deliver at the same speed
 Healthcare organizations will need control
over the continued availability, reliability and
utility of the cloud based processes and the
platforms underpinning them
 Process framework will migrate from
functional silos to an integrated set of
processes spanning organizational
boundaries
 Dynamic processes for billing and allocation
of resources will need to be implemented to
not be an impediment in achieving value
 Cloud’s service composition model provides
freedom to engage/disengage functions as
needed
33
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud computing will enforce significant changes in organization
design and governance within organizations
ORGANIZATION & GOVERNANCE
IMPACT
IMPLICATIONS
 Major shift in how the new environment is
managed and operated will have significant
impact on the optimum organizational
structure required in the future
 Organizations will become more flexible,
managing a fluid set of internal / external
resources and service providers
 Organizations and functions will no longer be
constrained by the physical location of data
centers, hosting providers and hardware
platforms
 As products and services become more
‘composable’, Governance across the
ecosystem will become critical
 Governance will become more centrally
defined with decentralized execution
 Cloud service selection should follow the
overall enterprise cloud governance
standards
 Strong risk management systems will
become critical to manage increasing risks
arising out of broader cloud deployment
 Current organization will need to evolve
over time as cloud adoption occurs
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IBM Institute for Business Value
© 2014 IBM Corporation
Organizations need to overhaul performance management
approach to optimize and enhance value from cloud
PERFORMANCE METRICS
IMPACT
IMPLICATIONS
 Cloud requires a dynamic financial model that
measures consumption
 Performance management strategy will
introduce new levels of complexity in
management reporting
 With the change in business model, new
metrics that measure service availability,
service quality, responsiveness, ability to
change will gain more importance
 Service level performance will be built into
third party and service management
contracts for all vendors delivering the cloud
based service so healthcare organizations
can focus on core strategies
 Dynamic metrics tied back to SLAs will be
critical for measuring success for cloud
based services
35
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud computing will drive rapid changes in skills and capabilities
within the enterprise workforce
SKILLS & CAPABILITIES
IMPACT
IMPLICATIONS
 Consumer and service orientation skills will
be even more critical within healthcare
organizations
 Deeper data analytics and patient insight
capabilities will be the norm
 Vendor management, contracting and
relationship management skills will be critical
to manage all of the vendors and alliances
 IT will need to be trained in virtualization and
network side technologies to manage the
“cloud pipe”
36
 Legal / operational support skills will be key
to manage partnership agreements such as
SLA’s and vendor contracts
 Existing IT and other functional staff will be
retrained to manage the network and
virtualization technologies implemented by
third party vendors
IBM Institute for Business Value
© 2014 IBM Corporation
Business leaders need to accelerate adoption of emerging
technologies and technical trends to optimize benefits from cloud
TECHNOLOGY
IMPACT
IMPLICATIONS
 The technology function will be leaner with a
more strategic focus rather than operational
 IT Strategy, Architecture and IT Plans
needs to be reviewed and updated to reflect
changes in business strategy and cloudenabled future healthcare organization
 Cloud’s big impact on technology will be to
move on-premise technology deployment to
cloud
 As more services migrate to cloud, Service
Management, IT Vendor management and IT
Quality management will become key
differentiators
 The overall costs need to be adjusted to
budget for maintenance of legacy systems,
as well as new bandwidth investment
 An IT services catalog needs to be globally
applicable and locally optimized for each
location
 A DevOps approach needs to be
implemented to achieve value faster
37
IBM Institute for Business Value
© 2014 IBM Corporation
Organizations will have to reassess location strategies to ensure
optimized and compliant adoption of cloud
ASSETS & LOCATIONS
38
IMPACT
IMPLICATIONS
 Migration to the cloud will require
decommissioning and consolidation of
technology assets
 Decommissioned technology assets will
impact the existing operating budget if there
is existing book value present
 Decommissioned assets and locations will be
a factor in the future state financial model
 One-time financial write-offs will need to be
factored into the overall business case
 Removal of physical / technology assets will
reduce the quantity of needed remote offices
and data centers
 Excess data centers and remote locations
will have to be repurposed or sold / leased
to recoup cost
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud will lead organizations to rethink and rebuild organization
culture to harness enhanced value
CULTURE
IMPACT
IMPLICATIONS
 The shift to a cloud-based environment will
also require changes in long-held
organizational beliefs and cultural norms
 Organizational leaders will need to address
perceived loss of control / potential
resistance by existing IT and other functions
whose processes will move to cloud
 Healthcare organizations need serviceorientation, with a shift in mindset toward
valuing the consumer experience above all
else
 Collaborative and open reporting across
organizational functions and units will
facilitate a faster response to the customer
39
 Employee education of new shift will need
to be conducted
 Regular communications to make sure all
employees are aware of why and how the
organization is changing will need to be set
up by organizational leaders
IBM Institute for Business Value
© 2014 IBM Corporation
Cloud solution connects multiple hospitals providing scale and
reliability to expand their market
KPJ Healthcare Berhad is the largest private healthcare group in Malaysia. It operates more than 20
hospitals and has more than 1,000 medical specialists and more than 10,000 employees
CHALLENGE
KPJ relied on each of its hospitals in Malaysia to
operate and maintain its own infrastructure. Not
only did this deliver varying levels of performance
and availability, the configuration also yielded high
operating costs. Further, KPJ also lacked a single
view of its entire enterprise.
SOLUTION
KPJ engaged IBM Global Technology Services Integrated Technology Services to design and build
a private cloud infrastructure powered by IBM
PureSystems technology and IBM System Storage
hardware.
Connected – with an integrated network, patients
are able to access medical expertise and advice
from across hospitals
Scalability – each hospital will be able to scale
resources on an ad hoc basis to meet its individual
computing needs
Accuracy – centralized visibility of enterprise helps
in making precise administration decisions
Source: [1] https://www-03.ibm.com/press/us/en/pressrelease/43896.wss; [2]: https://healthcaretechnologymagazine.com/HTM/en/healthcare-technology-magazinearticles/itemlist/tag/IBM%20and%20KPJ%20Healthcare%20Berhad%20Build%20Nationwide%20Cloud%20Infrastructure%20for%20Improved%20Medical%20Services
40
IBM Institute for Business Value
© 2014 IBM Corporation
A healthcare system in South America used private cloud solution to
extend medical resources to more than 100 rural healthcare centers
The South American national healthcare system provides medical services for more than three million
patients annually
CHALLENGE
The South American healthcare system sought to
provide a standards-compliant medical imaging
and diagnostics solution to a dispersed network of
rural healthcare centers. The healthcare system’s
IT infrastructure, however, lacked the necessary
resources to support the implementation.
SOLUTION
IBM developed a dual-location data center with a
private cloud infrastructure to help the client
acquire, transmit and store images across all its
nationwide healthcare centers.
Effectiveness – Extends quality care to rural areas
by giving healthcare professionals remote access
to medical histories and images
Patient satisfaction – Reduces care costs by
improving diagnostic accuracy and eliminating
unnecessary testing
Efficiency – Eliminates redundant on-site server
and storage investments through cloud
Source: http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?subtype=AB&infotype=PM&appname=SWGE_OI_OI_USEN&htmlfid=OIC03030USEN&attachment=OIC03030USEN.PDF
41
IBM Institute for Business Value
© 2014 IBM Corporation
Hospital transforms processes through an innovative approach that
puts mobility at the center of care
Ottawa General Hospital is one of the largest academic teaching hospitals in Canada. It has over 1100
beds spread over 3 campuses and has over 12000 employees
CHALLENGE
Ottawa General Hospital desired to deliver best
possible care and outcomes for every patient with
improved processes and mobile experience for
clinicians.
SOLUTION
The Ottawa Hospital and IBM co-developed a
nimble, mobile-enabled care management
platform. Care providers in the current scope of the
mobility implementation have 24/7 access to
patient information, collaboration tools and
available hospital resources via a custom mobile
app.
Better outcomes – doctors are able to spend two
more hours per day at the bedside and delivering a
higher quality of patient care overall
Resource utilization – 15% improvement in staff
productivity in 3 months
Source: http://www.ibm.com/mobilefirst/us/en/see-it-in-action/ottawa-hospital/pdfs/Ottawa-Hospital-Case-Study.pdf
https://www.youtube.com/watch?v=SNSQTJmGoE4
42
IBM Institute for Business Value
© 2014 IBM Corporation
OPENPediatrics – equips doctors and nurses with the knowledge
and skills to save children’s lives, even in under developed nations
Boston Children’s Hospital is home to the world’s largest research enterprise based at a pediatric medical
center, where its discoveries have benefited both children and adults since 1869
CHALLENGE
Every year, nearly 7 million children under age 5
die from illnesses like pneumonia, diarrhea and
malaria despite the availability of life-saving
medical solutions.
SOLUTION
Boston Children’s Hospital and IBM delivered the
world’s first Cloud-based global education platform
to transform how pediatric medicine is taught and
practiced around the world. The initiative aims to
improve the exchange of medical knowledge on the
care of critically ill children no matter where they
live. The benefit of Cloud, particularly in underdeveloped nations, is that it overcomes the need to
build a global technology infrastructure.
Better outcomes – OPENPediatrics trains medical
professionals using a unique on-demand,
interactive, digital and social learning experience,
equipping them to perform life-saving procedures
and treatments for children who would not
otherwise have access to intensive care.
Connectivity – Clinicians are guaranteed to have
access to the latest medical information, training
modules and best practices
Source: http://www-03.ibm.com/press/us/en/pressrelease/42061.wss#release
43
IBM Institute for Business Value
© 2014 IBM Corporation
1
Cloud will
transform the
healthcare
industry
2
The traditional
healthcare industry
operating model
will evolve
3
IBM can help
44
IBM Institute for Business Value
© 2014 IBM Corporation
IBM is best positioned to serve the cloud computing needs for
healthcare organizations
Strategize how to use
cloud to drive savings
and revenue growth
45
Build and run your
private or hybrid cloud
Utilize cloud services
delivered from IBM Cloud
Cloud Strategy
and Design
Expert
Integrated
Systems
Business Process
as a Service
Cloud
Implementation
Cloud Platform
Technologies
Software
as a Service
Cloud Migration
Services
Cloud
Infrastructure
Technologies
Platform
as a Service
Cloud Security
Services
Hybrid Cloud
Technologies
Infrastructure
as a Service
IBM Institute for Business Value
© 2014 IBM Corporation
IBM is helping our clients achieve compelling business outcomes,
no matter where the entry point is
46
BUSINESS PROCESS
SOFTWARE
PLATFORM
INFRASTRUCTURE
as a Service
as a Service
as a Service
as a Service
Automating Business
Innovation
Marketplace of High Value
Consumable Business
Applications
Rapid App Development
through Composable and
Integrated Platform built using
open standards
Enterprise Class, Optimized
Infrastructure built using
open standards
Business Process:
Marketing
Mobile
Compute
Recruiting
Commerce
Security
Networking
Accounting
Supply Chain
Big Data & Analytics
Storage
Procurement
Talent Management
Development & DevOps
Payment Processing
Analytics
Integration
Help Desk
Collaboration
Integration/ API Mgmt.
IT Management
Traditional Workloads
IBM Institute for Business Value
© 2014 IBM Corporation
IBM Cloud marketplace provides easy access to our as-a-service
portfolio – and is organized by key cloud buyer roles
IBM CLOUD MARKETPLACE
Your gateway to cloud innovation
Explore hundreds of IBM and Business Partner services from across the cloud spectrum.
Sign up to offer your cloud services in the marketplace today
Enterprise — grade business
apps to accelerate innovation
(SaaS)
Powerful services and APIs
via an integrated cloud
platform (PaaS)
Self-service IT
infrastructure configurable
to your needs (IaaS)
Biz
Dev
Ops

Over 200 IBM and Third-Party Software
and Services

Leverage world-class IBM partner ecosystem

Curated solution pages with IBM expertise

Easy access to build, consume, deploy and
purchase services
ibm.com/cloud/marketplace
47
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally
IBM HEALTHCARE CONTACTS
48
IBM HEALTHCARE CONTACTS
[FACE
PIC]
Simon Humberstone (Europe)
[email protected]
44-7710-157920
[FACE
PIC]
Sandip V Patel
[email protected]
1-781-472-8200 (T/L: 779-8200)
[FACE
PIC]
Fiona McMaster (APAC)
[email protected]
61-412-344-942
[FACE
PIC]
Elizabeth S Goodale
[email protected]
1-214-674-2004
Angela Bakker-Lee (US)
[email protected]
1-215-840-5700
[FACE
PIC]
Heather Fraser
[email protected]
44-7734-325459
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally (continued)
IBM HEALTHCARE CONTACTS
49
IBM HEALTHCARE CONTACTS
[FACE
PIC]
Kristin Burkland
[email protected]
1-512-569-6251
[FACE
PIC]
Annette Hicks
[email protected]
61-434-176-759
[FACE
PIC]
Kelly Chambliss
[email protected]
1-415-515-3488
[FACE
PIC]
John Crawford
[email protected]
44-7802-916370
[FACE
PIC]
Farhana Nakhooda
[email protected]
65-6418-1079
Lina Shadid
[email protected]
971-2-6431900
IBM Institute for Business Value
© 2014 IBM Corporation
IBM can support you locally and globally (continued)
IBM CLOUD CONTACTS
[FACE
PIC]
[FACE
PIC]
IBM CLOUD CONTACTS
Cindy Warner – Managing Partner
Global Cloud Advisory
[email protected]
313.903.8787
Mike Owens – Associate Partner
Cloud Advisory
[email protected]
951.375.9588
[FACE
PIC]
[FACE
PIC]
Nathan Herber – Associate Partner
Cloud Advisory
[email protected]
916.616.5350
Tedi Wells – Executive Consultant
Cloud Advisory
[email protected]
1-512-964-7356
IBM CLOUD CATEGORY LEADERS
[FACE
PIC]
50
Becky Carroll – Associate Partner
Cloud Advisory
[email protected]
858.204.6723
IBM Institute for Business Value
Nancy Agosta – Cloud Industry Leader
Cloud Category
[email protected]
919.481.3233
© 2014 IBM Corporation
51
IBM Institute for Business Value
© 2014 IBM Corporation
IBM Institute For Business Value Cloud Healthcare Industry Point of View
Thank You
© 2014 IBM Corporation