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E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
1
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
2
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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Electronic Commerce Categories
Government
Business Business
Consumer
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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)
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
9
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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
10
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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Benefits of EC
Cost reduction Enhanced cusomer service Acces to new global market Enhanced potential for partners
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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)
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
13
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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Differentiating Between E-business Categories
– E-Auctioning– E-Banking– E-Healthcare– E-Directories– E-Engineering– E-Franchising
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
29
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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The approach to implementing E-business in the healthcare
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
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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?
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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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.
E-businessBenefits &Barriers inthe Healthcare
ByM. A. Alsudairi
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The approach to implementing E-business in the healthcare
Avoiding Complications. Managing Change. Overcoming Resistance. The Transition. Managing Costs and Finally. look beyond the software license costs.