The Indian Healthcare Sector Erp Systems Information Technology Essay

The Indian Healthc be Sector Erp Systems Information Technology searchThe Indian Healthc be sector is rapidly expanding in terms of revenue and employment with its total value estimated close $34 billion. Some of the reasons for the same areGrowing population and economyThe biggest driver of the expansion of the healthcare sector in India is its booming population, which is currently estimated about 1.1 billion. (Appendix- enrol1)Rising middle class cod to the rise in the average income, as of now, around 50 million Indians can afford to custom advanced healthcare services and medicines.Increase in the spread of diseaseOne of the real driving factors for the harvest-home of Indias healthcare sector is the rise and spread of unhomogeneous diseases, infectious and chronic degenerative in nature.1.2 ERP need in Heath Care industryERP has got a huge scope of implementation in the healthcare pains since more and more hospitals are coming up and the customers are now looking for b etter professionalism and change and efficient healthcare services.Key healthcare organization objectivesThe specific healthcare industry objectives includeImproved productivity and efficient workflow with proper information at various care points.Integrating various systems across individual departments in a hospital and also across hospitals under the same management.Performing core hospital activities and increasing customer service to enhance Hospital Image. carrying into action of rake ERP in WockhardtAbout WockhardtWockhardt is one of the major players in the Indian sector for Healthcare services. Besides providing the healthcare services via its chain of hospitals, Wockhardt also manufactures and markets various formulations, nutrition products, biopharmaceuticals, active pharmaceutical ingredients (APIs) and vaccines.2.2 SummaryName of the Organization Wockhardt LimitedHead Office Location Mumbai, Indiaservice HealthcareNo. of Employees 9,000Revenue of the potent Rs 26 BillionImplementation partner IBM India2.3 Pre-ERP Environment in WockhardtWockhardt had a non-integrated, non- eat IT systemThe IT hardware used were of IBM P-SeriesIBM AIX was the IT Operating System in use prior to ERP implementationOracle 10g database at WockhardtSome of the challenges faced by Wockhardt prior to ERP implementation are as followsInability to handle the line of products growth due to poor existing technologyIntegration and formal communication among the existing systems were low.High cost dependency on independent product sellers adding to forethought costs.Difficulty in managing and go forling disparate data.Dependency on multiple small packages and SMEs for day to day operations.Overall service levels and patient satisfaction levels were low.2.4 Choosing an ERP vendorSome of the issues that were considered while choosing a vendor wereData accuracy Hospitals have to supply all the essential information to the vendor at the time of make the proposals. Th is pass on help him to easily configure the required software.The mistake of not disclosing information Many hospitals do the mistake of not disclosing crucial information at this juncture. They are reluctant to disclose confidential information.Demonstrations The hospital will be able to rate the vendors suitability more so during practical demonstrations. His level of competencies and technicalities will be revealed to the company.The reason why SAP solution was chosen as the ERP vendor wasIts a robust, integrated solution with multiple customized functions and featuresIts positioned for future growth with globular credibilityIts a well defined reliable partner with assured supportIt strategically aligns itself with the Wockhardts note requirements2.5 Objectives of SAP implementationThe companys vision to integrate and regulate global processes was a major reason for introducing SAP solutions. Wockhardt was looking for an ERP solution that wouldEstablish a single, integrated ERP solution.Improve visibility and standardize the current business processes across the organization.Provide a platform for free flow of information and a central data repository.Introduce best practices of Life Science Industry for all locations.Provide a common technology platform with capabilities of analyzing business data.Meet the global business requirements, with simultaneously adhering to the country specific necessities.2.6 SAP Solutions Services used in WockhardtSAP ERPSAP line of products Information Ware houseSAP NetWeaver, SAP NetWeaver Portal,SAP Solution Manager, a tool piece in the SAP NetWeaver platform2.7 SAP Implementation HighlightsTime-frame of implementation 8 months (From May 2005)Top circumspections support with highly dedicated teamHighly undefeated implementation with a big bang approach in IndiaSubsequent rollouts to subsidiaries in Europe US by the Wockhardt In-house teamThe average 3 division cost of a SAP deployment is shown in Appendix - fig ure of speech2.The various stages for the same wereProject PlanningBusiness Process StudyInstallationTrainingBusiness Requirement mappingConfigurationModificationsData ConversionDocumentationTestingGo-LivePost production support2.8 SAP R/3 Architecture in WockhardtSAP R/3 works on Three Tier Architecture comprising of the database, application and presentation layer. (Appendix Figure3)The Database server is solely responsible for Wockhardts data storage.The use server interacts with the other two servers to manage user requests.The User terminal is responsible for data creation, modification and retrieval.2.9 Benefits of SAP to WockhardtThe benefits that Wockhardt got on implementing SAP ERP wereReal-time admission to higher quality informationMore structured data forming a basis for informed strategic and operational decisionsA consolidated, single view of the business with efficient working practices due to standardized and integrated business processesImproved stock certifica te management with better coordination of work across multiple locationsFaster decision-making and improved Planning and customer service, efficiency, enhanced Visibility2.10 Wockhardts future plans with SAPWockhardts future plans with SAP includeSAP Customer Relationship Management (SAP CRM)SAP supplier Chain Management (SAP SCM)SAP Advanced Planning Optimization component (APO)SAP NetWeaver component for integration.With the SAP CRM module, Wockhardt canImplement one, multichannel contact center to control and coordinate the interactions between patients and Wockhardt.Link the contact center directly to the appointment system so a patient can make, change, cancel, or inquire about appointments.Improve communication with patients by using demand management software to remind patients of appointments, manage waiting lists, and fill late cancellationsThe Vendors PerspectiveAbout SAP and IBMIBM was finalized as the implementation partner for starting the SAP ERP implementation in Ma y of 2005. The implementation team took around eight months to complete the project. With vendors like SAP and implementation partners like IBM, it has definitely resulted in lowering the pressure on healthcare organizations like Wockhardt.3.1.1 SAPSAP is the market leader in ERP solutions. Since its fanny in 1972, SAP (Systems, Applications and Products in Data processing) have helped companies of all sizes and industries run better. Currently SAP departments are located in greater than 50 nations and armed service 110,000customers worldwide. SAP for Healthcare industry helps the firms like Wockhardt in integrating their healthcare processes by providing an end-to-end portfolio of solutions.IBMIBM has world class reliable, scalable and responsive business solutions and on collaboration with SAP, both will help the firms in various industries like healthcare by providing quality, simple and customised solutions with high returns.IBM and SAP are committed to delivering low-cost end -to-end solutions scaled to gratify the needs of SMBs. The combined solutions of IBM and SAP enable the organizations to speed up their business operations in order to comply with the propellant changes in the marketplace.Challenges faced by IBM, SAP for ERP implementationThe major challenges faced by SAP and IBM during Wockhardts ERP implementations are as followsTo cope up with the dynamic and changing business processes and consumer needsTo be in-line with the regulatory guidelinesTo assist the hospital service with regular up gradation .Integration with Legacy SystemsIntegration of ERP Modules of different vendors or versions and E-Business Applications like SCM, CRM, KM.4. ERP modules used at WockhardtSome of the important SAP ERP modules used by Wockhardt are mentioned downstairsMaterials Management (MM)Customer Service (CS)Quality Management (QM)Sales Distribution (SD)Human Resources (HR)Production Planning (PP)Financial Management (FM)Product Life Cycle Management (PLM) The material management module (Appendix- Figure4) comprises of the features mentioned belowStock Reconciliation- At warehouse / item(s) levelAlerts and notifications on Shelf LifeStorage Differentiations for Quarantine / Approved / Rejected items.Item tracking based on Expiry dates and Serial No. / Lot numbersBar code interface integrationPatient AdministrationThis module handles the front post, back office and nursing station of Wockhardt.Some of the modules of front office are handling the appointments, reservations, admission and discharge of patient along with the deposits, refunds of cashier department.The back office includes the maintenance, in-patient thrill and scheduling of the Wockhardts back office.Besides this, SAP ERP integrates the administrative and clinical processes of the nursing station. (Appendix Figure5)Clinical ManagementThe clinical management of the SAP package in Wockhardt includes laboratory- Lab scheduling, records, kit management, etc.Operation theat re- Theatre scheduling, maintenance, medical equipments usage, etc.Medical records Visit details of Outpatient and In-Patients, etc. cable bank Donor registration list, Blood stock, etc. (Appendix Figure6)Resource ManagementThe resource management of the Wockhardt SAP module includesPharmacy In and out-patient pharmacy, central pharmacy, etc.General stores Purchase orders, material receipts, inventory control, etc.Ambulatory Ambulance and personnel scheduling.Medical equipment management Equipment and AMC details, stock management, etc. (Appendix Figure7)Financial ManagementThe financial management module includes functionalities like maintaining theAccounts payableAccounts dueGeneral ledgerDoctors accountingPayrollCare contractsFederations grants, etc. (Appendix Figure8)5. Conclusion and FindingsThe Indian healthcare sector can be considered to be as a glass half empty or as a glass half full. This is so because, even though the healthcare sector has improved importantly over the years but still the challenges it is facing are significant. Improvisation needs to be done by developing the existing physical and IT fundament in order to provide quality healthcare services.The need of the hour is to perform core hospital activities and increase the quality of customer service by integrating its various components and avoid data redundancy.Industries look for ERP solution that can provide a common technology platform with capabilities of analyzing business data. They expect to meet the global business requirements, with simultaneously adhering to the country specific necessities.Because of the availability of a single unified platform for data sharing and standardization of the various healthcare business processes, the redundancy of data entry has minimized significantly and has resulted in saving valuable administrative time.The SAP ERP implementation has assisted the Wockhardt staff in successfully updating, recovering and managing the data in real-ti me. Also, reports can now be produced quickly, thus minimizing the logistical headaches.The most striking benefit of implementing SAP ERP in Wockhardt has been the significant visibility in its service operations which has lead to improved planning and coordination across Wockhardt.Hence sooner or later, most of the companies need to change their handed-down practices and have an advanced technology supported with state of the art IT infrastructure to support its core business activities and integrate them efficiently across the organization.AppendixFigure 1 Indian economy growth rateFigure 2 3 year cost of a SAP deploymentFigure 3Figure 4Figure 5 Patient AdministrationFigure 6 Clinical ManagementFigure 7 Resource ManagementFigure 8 Financial Management