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Doing More With LessDoing More With Less
Non-Traditional Approach To ITNon-Traditional Approach To IT
Dr Alan LloydDr Alan LloydChief Systems OfficerChief Systems Officer
Sonic Healthcare GroupSonic Healthcare Group
The Sonic GroupThe Sonic Group
• Pathology & Radiology Service ProviderPathology & Radiology Service Provider• 15 Yrs in business & ASX listing15 Yrs in business & ASX listing• A$1bn RevenueA$1bn Revenue• 37% growth in revenue37% growth in revenue• 20% growth in earnings20% growth in earnings• 10,000 employees10,000 employees• Operational in :Operational in :
• AustraliaAustralia• New ZealandNew Zealand• United KingdomUnited Kingdom• Hong KongHong Kong
Sonic Healthcare Pathology Sonic Healthcare Pathology LaboratoriesLaboratories
40,000 PATIENTS / DAY40,000 PATIENTS / DAY
TDL UK
Pathology & Radiology is Big Pathology & Radiology is Big BusinessBusiness
• Major Laboratories in:Major Laboratories in:– Sydney (Douglass Hanley Moir)Sydney (Douglass Hanley Moir)– Brisbane (Sullivan Nicolaides)Brisbane (Sullivan Nicolaides)– Melbourne (Melbourne Melbourne (Melbourne
Pathology)Pathology)– Auckland (Diagnostic Medlab)Auckland (Diagnostic Medlab)
• 40,000 Patient samples a day40,000 Patient samples a day• Over 100,000 Tests dailyOver 100,000 Tests daily• Aging Population:Aging Population:
– Today Today 6:16:1– By 2031 By 2031 3:13:1
I.T. is Integral to Sonic OperationsI.T. is Integral to Sonic Operations
SONIC I.T. POLICYSONIC I.T. POLICY
• OWN AND CONTROL OWN AND CONTROL I.T. SYSTEMSI.T. SYSTEMS SOFTWARE SOFTWARE
DEVELOPMENTDEVELOPMENT INFRASTRUCTUREINFRASTRUCTURE SUPPORTSUPPORT
AutomationAutomation
General Workflow PrinciplesGeneral Workflow Principles
INPUTINPUT OUTPUTOUTPUT
$$ WORK $$$$ WORK $$
KPI’SKPI’S
InnovationInnovation
BenchmarkingBenchmarking
FeedbackFeedbackManagementManagement
The ‘Challenge’The ‘Challenge’
• Concentrate Resources Concentrate Resources on the ‘Strategic on the ‘Strategic Initiatives’Initiatives’
• Incorporate ‘Best Incorporate ‘Best Practice’ and Practice’ and standardisestandardise
• Enable continuous Enable continuous improvementimprovement
• Provide excellent Provide excellent customer servicecustomer service
• Reduce the ‘Per Reduce the ‘Per Patient’ cost of I.T. Patient’ cost of I.T.
Telecommunications
Financial Services
Health Care
Manufacturing
Utilities
Retail
IT Spending asPercentage ofRevenue
Mining 1.0
1.7
2.6
3.3
3.7
12.5
9.7
Choose The Right People & The Right TechnologyChoose The Right People & The Right Technology
8 LABORATORIES8 LABORATORIES
300%300%300%300%
CACHECACHE
DB2DB2
UNIFYUNIFY
BenchmarkingBenchmarking
• Compare I.T. CostsCompare I.T. Costs• Choose the Best Choose the Best
SystemSystem• StandardiseStandardise
• Why Cache?Why Cache?– High Performance Multidimensional High Performance Multidimensional
DatabaseDatabase– Outperformed Relational DatabasesOutperformed Relational Databases
• 5 Times Less processing Power• Ten Times Less Storage
Complete Flexibility with One Complete Flexibility with One TechnologyTechnology
OBJECTOBJECTARCHITECTUREARCHITECTURE
OBJECTOBJECTARCHITECTUREARCHITECTURE
““THIN CLIENT”THIN CLIENT”Web EnvironmentWeb Environment
““CSP”CSP”
““THIN CLIENT”THIN CLIENT”Web EnvironmentWeb Environment
““CSP”CSP”
““THICK CLIENT”THICK CLIENT”DevelopmentDevelopmentEnvironmentEnvironment
““THICK CLIENT”THICK CLIENT”DevelopmentDevelopmentEnvironmentEnvironment
CHUICHUINativeNative‘‘M’M’
CHUICHUINativeNative‘‘M’M’
SQLSQL
ODBCODBC
SQLSQL
ODBCODBC
MultidimensionalMultidimensionalDatabaseDatabase
MultidimensionalMultidimensionalDatabaseDatabase
SONIC I.T. MANAGEMENTSONIC I.T. MANAGEMENT
Tightly Coupled To Business Tightly Coupled To Business DevelopmentDevelopment
SITECSITEC
CEOCEO
CFO COO CSOCFO COO CSO
SITMSITM
HR & MarketingHR & Marketing
Development MethodologyDevelopment Methodology
BDU’sBDU’s
Business AnalystsBusiness AnalystsProgrammers AnalystsProgrammers Analysts
BDU’sBDU’s
Business AnalystsBusiness AnalystsProgrammers AnalystsProgrammers Analysts
SITMSITMSITMSITMPMGPMG
SITECSITECSITECSITEC
ProjectsProjects RFCRFC
GAINGAIN
$$ WORK $$$$ WORK $$
High Level Control – Law of High Level Control – Law of Diminishing ReturnsDiminishing Returns
Example of our Rapid Example of our Rapid DevelopmentDevelopment
• 2001 Radiology2001 Radiology• The Requirement:The Requirement:
– Web based RISWeb based RIS– Competitive priceCompetitive price– Competitive functionalityCompetitive functionality– Electronic Transmission Electronic Transmission
of Resultsof Results• From vision to From vision to
implementation in less than implementation in less than 12 months12 months
• Cache Server Pages (CSP) is Cache Server Pages (CSP) is the core technologythe core technology
IT Standardisation
1998 2000 2001 20021999
CAPITAL
BARRATTS
MELBOURNE
SNP
TASMANIA
CAP/BARR/
WAGGA
CLINPATH
SOUTHERN
CLINIPATH
DHM
Y2K
COOLUM
FIVE YEAR PLAN
20042003
RIS QXR
CASTLEREAGHSKGILLAWARAHIG
SAT
OutcomesOutcomes
• 30% less investment on technology 30% less investment on technology than the industry normthan the industry norm
• Very high Operational ResponsivenessVery high Operational Responsiveness• Our Technology Platform positions us Our Technology Platform positions us
for growthfor growth• Retaining the IP - Development of Retaining the IP - Development of
systems to support the core operations systems to support the core operations are all in-house are all in-house
• In Australia our IT operation - 53 people In Australia our IT operation - 53 people supporting a market share of 44%supporting a market share of 44%
Doing More With LessDoing More With Less
• Technology is part of our business Technology is part of our business culture and the business culture is part culture and the business culture is part of ITof IT
• Business Productivity Improvement is Business Productivity Improvement is founded on our IT Core Competence.founded on our IT Core Competence.
• Ownership ensures Retention of IPOwnership ensures Retention of IP• Removed the translation of the business Removed the translation of the business
requirements into IT through requirements into IT through involvement of the BDU’s involvement of the BDU’s
• High level executive controlHigh level executive control
COST ADVANTAGE
DIFFERENTIATION ADVANTAGE
W I D E N THE M O A T
PRODUCTIVITY AND DIFFERENTIATIONPRODUCTIVITY AND DIFFERENTIATION
The Non Traditional Approach The Non Traditional Approach to ITto IT
““It is our belief that unique Sonic operational It is our belief that unique Sonic operational models, including workflow, laboratory models, including workflow, laboratory design and computer software, may be used design and computer software, may be used to the company’s advantage in suitable to the company’s advantage in suitable offshore markets.”offshore markets.”
Dr Colin GoldschmidtDr Colin Goldschmidt
Managing DirectorManaging Director
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