Business Analytics Systems for Healthcare in Europe

Business Analytics Systems for Healthcare in Europe

Smarter Data Takes Driver's Seat

S.Priyan Viswanathan, Industry Analyst

Healthcare and Life Sciences IT

February 9th,2010

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Focus Points

Introduction to the Market

Segmentation of the Market

DRCs – The Market Dynamics

Revenue Share by Region

Market Revenues

Conclusions

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Introduction to the Market

Business Analytics solutions are systems that assist the healthcare managers and the hospital management to compile, arrange and manage the clinical, financial and administrative data in a defined protocol.

The system present the required data in a highly customized, graphics oriented format as a “dashboard”module, which helps the business managers, improve the quality of their decisions and manage their business workflow better.

Some of the functional workflow that the business analytics solution allows you to perform are

• Determine the efficiency of the departments in the hospitals

• Compare the efficiencies of various departments• Manage employee performance and throw-put• Evaluate a given department’s current and historical performance or enterprise

• Monitor a given department’s activity in real time• View current patient acuity and census through dashboards and graphs

The business analytics solutions performs both financial and administrative management modules for healthcare managers – Most of clinical functionalities too are also measured in terms of financial or administrative outcomes

BusinessAnalyticsSolution

FinancialModule

AdministrativeModule

Based on the process of implementation, the business analytics solutions could also be segmented as in-house developed and implemented and readily installed solutions. The former is tailor made for the end user, the latter is readily available and only installed and customized for the users.

Market Definition Market Segmentation

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Market Dynamics - Drivers

Source: Frost & Sullivan

Value Provided by the Analytics Solutions

Return on Investments

by the Analytics Solutions

Increasing Awareness among Staff / Patients

Pay for Performance / Activity based

Payments

Technology Suave

Healthcare Managers & Management

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High Initial and On-

going Costs of Systems

Infancy Stage of the

Market

Unclear Market

Requirements

Integration and Data Migration Issues

Market Dynamics - Restraints


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Limited Scope and Depth of Systems

Training Needed for the Healthcare

Staff

Stringent IT Budgets at Hospitals

Lack of Expert IT Staff

Market Dynamics - Challenges


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Market Share by Region

UK

Italy

Scandinavia

Benelux

Germany

Spain

France

All the figures are rounded; Base year is 2009; Source: Frost & Sullivan

Performance Management

Tools

Financial Performance Management

Tools

CRM Analytic Applications

Business Intelligence

Tools

Reporting & Analytical Tools

Data Warehouse Applications

Healthcare Business Analytical Solutions &

Tools

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Forecast on the Total Number of Systems Installed in Europe


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

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Forecast on the Total Revenue of the Market in Europe


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

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Total Market Revenue, by Region

UK Germany France Italy Spain Scandinavia Benelux

Region

Revenue ($ million)


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Conclusions

� Business analytics solutions are provided both stand alone and integrated solutions as a part of bigger information Systems – integrated solutions are more well adopted and efficient

� The analytics solution functions as financial management or administrative management system. Most systems take clinical solutions as one of the above modules

� Analytics solutions have given ROIs from 100.0% to 300.0% - They are very easy to install and very effective to any healthcare set-up

� Germany and the United Kingdom are one of the biggest markets for business analytics solutions for healthcare in Europe, while Italy and Spain are upcoming markets

� There are solutions available for about $25,000 to $100,000 for about 20 users – And then there are solutions for about $500,000 which are meant for larger hospitals and are provided integrated with larger information systems

� The market in Europe is still in its early stage. Hence the adoption as well as regulations are just getting stronger – there is even confusion in the market on the requirements of the analytics solution

� The market is expected to grow at a pace of more than 11.0% [European Average] by 2015 – the demand for cheaper and easy to use analytics solutions is expected to increase rapidly by 2016

� The world market for business analytics solution [regardless of healthcare] is estimated to be about $20.00 billion in 2009 and is expected to increase rapidly by 2015

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Next Steps

� Request a strategic approach document for a Growth Partnership Service or Growth Consulting Service to support you and your team to accelerate the growth of your company.

([email protected]) +44 (0)20 7343 8383

� Join us at our annual Growth, Innovation and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth London, United Kingdom

(www.gil-global.com)

� Register for the next Chairman’s Series on Growth:

The CEO’s Growth Team: Research and Development Driving Growth and Innovation

17 February 2010 10:00 AM GMT (www.frost.com/growthEU)

� Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news)

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For Additional Information

Katja Feick

Corporate Communications

Healthcare

0049 (0) 69 7703343

[email protected]

Noel Anderson

European Vice President

New Business Development

+44 (0)207 343 8389

[email protected]

Siddharth Saha

Director of Research

Healthcare

+ 44 (0) 207 343 8374

[email protected]