Leveraging IT and a Business Network by a Small Medical Practice - Essay Example

It has become a common notion, that leveraging IT in the various business spheres, especially those which traditionally have been operated manually, increases their profitability and improves their performance. However, it appears that leveraging IT itself is far not enough for the success of business, and some other factors are to be accounted, to make this IT real profitable subject of investment. The aim of this paper is to consider and analyze the case study of leveraging IT for small medical business. The main conclusion of the paper is that small business can and should invest into IT, but this investment must be combined with other implementations, without which this IT would become wasting of stakeholders' finances. Leveraging IT and a business network by a small medical practice The case is about Eastern Cardiology Services (further - ESC), which has been founded by Dr. Jeff Curtin with the aim of providing high-quality medical services on the private grounds in the sphere of cardiology. His aim was to create a small enterprise, which will combine the service delivery with the use of advanced computer technologies. The key issues, existing in the company at the very beginning of its operation were the following: 1. The firm had to achieve high level of quality, through the understanding, that often the quality if information delivered to the patient could become a matter of his life-or-death. The issue in this relation was that the small firm like ESC could not afford implementation IT in combination with medical services through trial and effort, as it was usual for large companies. 2. The second issue was related with the fact that the newly opened enterprise had to prove the accuracy of the records given to the patients. As far as the information had to be easily retrievable the newly developed IT had to be connected with the medical equipment for medical investigation - this was a serious matter to resolve. 3. For the better service delivery, the enterprise had to develop a system of customer feedback and to align IT with the customer management - this was the third issue to resolve. Among the issues, which the enterprise had to face and resolve, were the issues related to the necessity of aligning corporate management with IT use. Thus, it is seen that the main issue, though described here through several separate key problems, are certainly connected with the necessity to implement IT technologies into all spheres of the ESC activity - both directly and indirectly connected with the medical service delivery. These issues are the result of understanding that for SME to survive in the area of medical service delivery, something new and unique should be invented, to distinguish them from the large medical establishments, which mainly display a kind of 'line production' service delivery. One more important issue here was making each consumer feel unique and exclusive, and receive the best service through the IT which the enterprise uses. 4. For the development of the IT necessary to be used in the enterprise, it was important to find the research opportunities, which would satisfy financial demands of stakeholders and result in general improvement of the ESC operation. 5. The management of the enterprise had also to understand that as soon as the IT system was developed, it would have to be constantly improved, as in the process of its implementation and operation new limitations were going to be displayed and thus eliminated. The problem there was that this process needed constant financing, which had also to be agreed with stakeholders. 6. Finally, it was of course necessary proving the benefits of IT implementation to the stakeholders. Thus, in identifying the key problems of the enterprise at that time, it is clearly seen, that the principal strategy developed by ESC was aimed at implementing IT, as the key to its success in delivering medical services. Though the enterprise understood the necessity for such actions, but many factors were simply forgotten in the process of performing them. Analysis and evaluation It is now necessary to analyze the actions which have been undertaken by the enterprise, and whether they have been effective for the achieving of the strategic goals of the business. ESC was looking at the infrastructure of the IT in its activity from the viewpoint of the four separate factors: 1. Achieving quality. This factor could be defined as the one through which the small medical practice would deliver to its patients the services of the world class quality and implement the newest technology developments. With this aim ESC was striving for creating strong relationships with the research institutions on the local and national level. However, for such a small enterprise, as ESC, it would be more beneficial to start with lower levels of research, and making it more of world standards step by step. It is important to use highly qualified staff and the newest technologies for delivering service in the sphere of cardiology, but the enterprise has simultaneously set several different goals, which could not achieved at the same time. Kilo (2005) states, that the use of IT is extremely important for managing patients with chronic diseases, especially those of cardiovascular character. It was a correct step of ESC to step away from the paper-based record system towards an IT based interface and methods of information transfer. 2. It was a very wise step for the company to contact graduate students in the sphere of IT, for the development and continuous progress of their IT system in work. The idea was to attract these students for working in the company, thus saving additional costs and getting skilled support simultaneously. It was also a good action to look for such students in the local academic institutions - the benefits were bilateral: on the one hand, the firm acquired professional staff with low-cost initiatives; on the other hand, the students themselves acquired an opportunity to work on their graduation projects and earning money for this, simultaneously producing the results which were necessary for the IT system of ESC. However, the management of ESC has not taken into account the fact that working hours for the students were too long, and the salaries average; the IT environment had to be more advanced, and thus bigger part of the students left looking for more challenging job opportunities. Moreover, the students were not able to attract grants for the development of new IT systems in the company. As it is known, and as Kilo (2005) writes in his case study, 'the technology necessary to transform the medical practice-even a small medical practice-is a complete, integrated, interoperable information system; the finance system should align itself with advanced methodologies of care'. It means that the striving for implementing IT into the work of small medical practices, is of course, an essential part of their success, but this implementation is to be combined with cost-effectiveness and clear budgeting. Starting the development of IT without having enough resources for it will make the IT system static - while it has to be constantly dynamic. (Staggers & Repko, 1996) 3. The Interactive Questionnaire developed by ECS in collaboration with an e-commerce organization, using web-based interface for accessing it and sharing information, and intranet for its processing, has become one of the most successful steps in combining IT and medical practice. It was beneficial, as sharing information is one of the challenges between the IT and the medical services (Dvorak & Knickrehm, 1998); through the questionnaire implementation the enterprise acquired an opportunity to have fixed background information as for the health status of the patient. Such infrastructure may also allow quick access to the information, electronic communication and feedback between the clinicians. (Kilo & Leavitt, 2005) The main restraint of making this product even more beneficial was the lack of attention given to its commercialization. The fact that Dr. Curtin was the only person, being involved into the contacts with the external shareholders, and the process of medical service delivery, created negative impact on the fact, that the Questionnaire was not developed further than becoming a successful prototype. Thus, being a serious success, it has simultaneously become a serious failure for the general performance of the company. In any private medical practice, the challenge of bringing clinicians virtually closer and allowing them quick and effective information sharing is one of the most important challenges. (Bemmel, 1997) It is agreed, that modern IT companies offer extensive connectivity tools, but no matter is these tools are exclusive or common, for their efficient implementation they should constantly be improved (Miller & Sim, 2004). 4. The development of the corporate web-site was one of the steps, aimed at creating the brand name of the company as part of the knowledge-management strategy. It was absolutely positive step, as knowledge management in the sphere of healthcare is an essential area of research, and though many IT companies now develop knowledge-management tools, they are far from being perfect or even satisfactory. (Staggers & Repko, 1996) Simultaneously, venture capital holders are reluctant of investing into such developments, for the reasons of mostly negative impression over such tools through the recent years. (Kilo, 2005) Some works state the crucial importance of the knowledge-management in private medical practices, and even more important than sharing and delivering information. (Kilo, 2005) However, I cannot fully agree with such point of view. I do agree that branding is very important for the present company described, as with its newly based status it really needs perfectly well developed branding strategies, and web-site may become the best cost-effective solution for this problem; but accounting the drawbacks and issues described above, probably paying too much attention to the corporate web-site, distracting this attention from the other crucial IT spheres of ECS was a wrong step. The use of RealPlayer clips for the customers could become a beneficial step at the later stages of IT development - and in the state described, when Interactive Questionnaire needed additional funding, it was directed to the development of the Web-site. Recommendations What recommendations can be provided for the better general performance of the enterprise in relation to IT and to the implementation of the IT prototypes which the company at present possesses 1. It is necessary to attract additional funds to commercialize the Interactive questionnaire and to develop it to the level of the important IT tool of clinicians' communication. With this aim it is recommended to address the external shareholders and other related companies for the financial support using the following instruments: - clearly defined proofs of the financial benefits which the investors as a result of IT implementation will get; - sample case studies, relating to the performance improvements in the small medical practices using IT through the prism of financial profits, which these improvements bring; - attracting shareholders to participating in the IT public trials for better their understanding of the importance of such IT for the patients. 2. It is recommended to hire a separate staff for managing contacts and communication with the venture capitalists and shareholders, as Dr. Curtin is not able to combine these actins with his medical practice. It will take additional finances, but it will also bring better results through acquiring grants and financial support. 3. It is recommended to make contracts with graduate students for the development of IT on the temporary basis. This will bring the following benefits: - graduate students will get an opportunity to work on their graduate projects through the development of the improved IT for the enterprise; - the temporary status of the contract and the part-time job of the student will allow reducing their salary costs; - after finishing their work, the students will have better chances to find a good job, while the company will have new technologies which are designed exclusively. 4. It is recommended that new methods of sharing information through the security channels are created. It will improve the general performance of the company, and allow its patients reducing time, usually spent at visiting doctors. 5. It is highly recommended to perform an external investigation and research in relation to the outcomes of the IT implementation and the results, which transformations and changes will bring. It will allow management of the enterprise seeing the drawbacks and successes they have managed to achieve in the process of IT use. There is a growing amount of data, related to the description and research of IT combination with medical practices, especially those of small size; but in the big number of factors to be accounted, it is yet necessary to understand, which ones are the most crucial for effective leveraging of IT in small medical businesses, and what factors should be more thoroughly addressed. References Bemmel, van J.H. (1997). Handbook of medical informatics. Springer-Verlag. Chandra, R. & Knickrehm, F. (1998). 'Healthcare's IT mistake'. The McKinsey Quarterly 3, 91-93 Dvorak, J.H., & Singh, H. (1999). Six principles of high performance IT. The McKinsey Quarterly 3, 164-170 Hunter, D. (1997). Disease management. British Medical Journal 215, 53-55 Kilo, C.M. (2004). Transformation care: medical practice design and information technology. Health Affairs 24(5), 1296-1301 Kilo, C.M. & Leavitt, M. (2005). Transforming care using information technology. Chicago: Health Information Management and Systems Society. Miller, R.H. & Sim, I. (2004) 'Physicians' use of electronic medical records: barriers and solutions.' Health Affairs 23 (2): 116-126. Staggers, N. & Repko, K. (1996). Strategies for successful clinical information system selection. Computers in Nursing 14, 146-155 Read More