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E-businessBenefits &Barriers inthe Healthcare

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Benefits and Barriers Benefits and Barriers of E-Business in of E-Business in

the Healthcare Systemthe Healthcare System

Mohammed A. Al-Sudairy (Ph.D.)Mohammed A. Al-Sudairy (Ph.D.)Assistant ProfessorAssistant Professor

Business DepartmentBusiness DepartmentKing Abdul Aziz University, JeddahKing Abdul Aziz University, Jeddah

[email protected]


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Presentation Topics Introduction to E-Commerce E-Commerce Categories E-Commerce benefits and barriers E-business Definition E-business Benefits Reasons to use E-business E-business in the healthcare Approach to implementation E-business in the

healthcare


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EC Introduction

EC can be broadly described as using IT such as Internet and WWW to enable commercial transactions and it is revolutionizing the way companies conduct their business.

In practice, this term and a newer term, e-business are often used interchangeably. For online retail selling, the term e-tailing is sometimes used.


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Electronic Commerce

a general term applied to the use of information technology to effect the linkages between the functions provided by participants in commerce.

The handling of business transaction over communication networks.

The buying and selling of goods and services on the Internet, especially the World Wide Web.


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Electronic CommerceElectronic Commerce

Is not enabling technology but it is simply conducting business electronically through enabling technology such as EDI, VANs and Internet. At the application level typical technologies include:

electronic data interchange (EDI); Electronic mail;electronic forms; electronic catalogues;electronic funds transfer; fax; technical data interchange; voice messaging; workflow


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Electronic Commerce Categories

Government

Business Business

Consumer


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This category of electronic commerce has been well established for several years, particularly using Electronic Data Interchange (EDI) over private or value-added networks.

Companies use B2B applications:– To mange their global supply chains and market and;– Sell their products to corporate customers

An example would be a company that uses a network for ordering from its suppliers, receiving invoices and making payments.

Business to Business (B2B)


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Business to Consumer (B2C)

B2C applications enable interaction with individual consumers anywhere in the world

The business- to-consumer category largely equates to electronic retailing.

This category has expanded greatly with the advent of the World Wide Web. There are now shopping malls all over the Internet offering all manner of consumer goods, from cakes and wine to computers and motor cars.


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Business to Government (B2G) This category covers all transactions between

companies and government organizations. Currently this category is in its infancy, but it could

expand quite rapidly as governments use their own operations to promote awareness and growth of electronic commerce.

For example:– in the USA the details of government procurements are

publicized over the Internet and companies can respond electronically.

– administrations may also offer the option of electronic interchange for such transactions as VAT returns and the payment of corporate taxes.


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Government to Consumer (G2C)

This category has not yet emerged. However, in the wake of a growth of both

the business-consumer and business-administration categories, governments may extend electronic interaction to such areas as welfare payments and self-assessed tax returns


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Benefits of EC

Cost reduction Enhanced cusomer service Acces to new global market Enhanced potential for partners


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Example of Specific Business Benefits of Electronic Commerce

reduced advertising costs reduced delivery cost, notably for goods that can also

be delivered electronically reduced design and manufacturing cost improved market intelligence and strategic planning access to new markets customer involvement in product and service innovation more opportunity for niche marketing equal access to markets (i.e. for SMEs, larger

corporations)


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Barriers – Cost and challenges

The need for hiring or retraining of IT personal

Profits uncertainty in the new global markets

Perceived problems with internet security not seen with traditional market

Difficulty in gaining competitive advantages on the Internet


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E-Commerce and E-business The line between e-commerce and e-business has

been blurred, so the terms are nearly interchangeable.

Usually e-commerce refers to the business-to-consumer applications, while e-business encompasses all business-to-business applications as well as e-commerce.

Essentially, either word implies transacting business via computer, through a virtual private network (VPN), the Internet or a secured site usually called an extranet.


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Facts

E-commerce already was misused, abused and confused when E-business emerged.

E-business is an E-commerce and they are The E-marketing

Effort to separate the EC and EB have been driven by– Marketing motives and dreadfully thin in substance


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E-business One of the first to use the term was IBM, when, in

October 1997, it launched a thematic campaign built around the term.

e-business derived from such terms as– "e-mail" and – "e-commerce"

The conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners.

Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities.


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E-business Definition

Publishing information, and performing different types of transaction electronically over the Intranets, Extranets and Internets within organizations or between them.


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Differentiating Between E-business Categories Some terms are generated to express specific

functions related to a narrower concept within e-business. These include:– e-commerce, e-government , e-bargain, e-auction, e-

advertisement, e-outsourcing, e-procurement

Other terms are concerned with providing an alternative comprehensive name to e-business such as:– Dynamic trade

– Para-enterprise


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Differentiating Between E-business Categories

Other function oriented e-terms are:– E-Learning– E-Mailing– E-Marketing– E-Supply– E-Operational Resources Management– E-Trading


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Differentiating Between E-business Categories

– E-Auctioning– E-Banking– E-Healthcare– E-Directories– E-Engineering– E-Franchising


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Reasons to use E-business

Companies are using the Web to: Buy parts and supplies from other

companies, Collaborate on sales promotions, and Do joint research.


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Reasons for Going on Line

Expanding market reach Generating visibility Strengthening business relationship Responsiveness Offering new services Cost reduction Just in time inventory


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Advantages of E-business Global accessibility and sales reach Widen the availability of information Closer relationship Enhance work integration up to the world level Free samples. Reduced cost. Media breaks. Time to market. Customer loyalty. Save time, movement, space and papers.


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Supplier opportunities and customer benefits

Supplier opportunity global presence improved competitiveness mass customization &

customerization shorten or eradicate

supply chains substantial cost savings novel business

opportunities

Customer benefit global choice quality of service personalized products &

services rapid response to needs substantial price

reductions new products & services


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The pipeline of Healthcare costs

Manufacturer Distributor Healthcare Payer Sponsor Provider

Capital Investment Inventory Investment Transportation Costs Plant Scheduling Efficiency

Capital Investment

Inventory investment Transportation Costs Value Added Services

Capital Investment Increased Patient Acuity

New Technology

Uncompensated Care

Capital Investment Increased Claims Valiums

Increased Reporting

Managed Care Plans

Cost Shifting

Social Problems

Competition

Customer Consolidation

Buying Group

Competition

Consolidation

Competition

Payer Negotiations

Rate Setting

Competition

Underwriting Margins

Competition

Cost Forces

Pricing Forces


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Healthcare Industry Trading Partner Relation

Medical / SurgicalProduct

Manufacturers

Healthcare Providers

Medicare FiscalIntermediaries

& Carriers

Healthcare Financing Administration

(Medicare)

Electronic Medical Claims

Companies

Wholesale DrugDistributors

Purchasing Group

PharmaceuticalManufacturers

Claims PayersIndemnity

Managed careSelf insured

MedicaidSelf-pay

Medicaid Processors

Medical / SurgicalDistributors


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E-business benefits in the healthcare mprove quality of care Provide operational savings Reduction in fraudulent Faster sharing of information Searchable health information databases Enhanced care delivery capabilities Improved health outcomes Market differentiation


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E-business benefits in the healthcare Control of the customer relationship Dramatic cost decreases Improved customer service levels Reduced non-value-added work Increased visibility Improving healthcare delivery New product offerings


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The approach to implementing E-business in the healthcare

Diagnose the Pain Assessment

– Look at all transactional business activities that can be shifted to an online environment:

• procurement,

• claims processing,

• patient records, and

• orders for labs and pharmacy


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Treat the Worst First Identify–assess your operational pain; –look into the processes that are causing the

most discomfort;–Don't ignore your extended community

whose processes link into yours;–Taking the integration of financial; and

clinical information as an example


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The approach to implementing E-business in the healthcare Examine the Risks and Returns on

investment. – evaluate the most critical problems by

estimating cost and potential ROI. – Which e-business initiatives will provide the

greatest "quality of life" in return for the investment?

– What types of improvements will give your organization a competitive edge with both partners and patients?


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The approach to implementing E-business in the healthcare Experienced Hands for Hands on Care

Execute. – Solutions providers range from software

vendors to systems integrators to high-level consultants to ASPs.

– To take full advantage of what technology has to offer.


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Avoiding Complications. Managing Change. Overcoming Resistance. The Transition. Managing Costs and Finally. look beyond the software license costs.

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