$1BN Opportunity with Mobile

Business Applications in Health

David Dembo

Microsoft, Health and Human Services

Grace Kerrison

Microsoft, Mobile Communications Business

Agenda

• Healthcare in Australia – Snapshot

• Areas of Focus for Microsoft in FY09

• Opportunities in Healthcare for Partners

• Why Mobility?

• Partner Success Story

• Your next steps

$87.3 Billion in 04/05

9.8% of GDP

10.3% YTY Growth

Health Inflation 2x

Inflation

MS Addressable Market Opportunity

5Improving patient outcomesand the bottom line.

Overall Health Sector Spend Breakdown (Source: Australia Institute of Health and Welfare)

Current Coverage % of Sector

Public Hospitals EPG 25%

Medical Services SMS&P 16%

PharmaceuticalsSMS&P and EPG Commercial 14%

Private Hospitals EPG and SMS&P 9%

Residential Care SMS&P 8%

Dental Services SMS&P 6%

Community Health EPG 6%

Other Professional Services SMS&P 5%

Other SMS&P 10%

$328 $369 $404 $435 $466 $499

$923$997

$1,078$1,152

$1,214$1,272

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

SW

SVC

CAGR = 7.8%

CAGR = 6.3%

Health Market Sizing and Growth (Source: IDC) Segmentation

41%

17%

27%

14%

EPG

SMS&P Mid

SMS&P

Small

Commercial

Health Crisis

Demand for Health Services

Funds/Staff available for health service delivery

Sustainability gap

Source: UC Berkeley, School of Information Management and Systems.

Health Producing an Unprecedented Volume of Data

Health – The Ultimate Information Worker

BIOMETRIC DATA DATA MANAGEMENT DATA ANALYSIS

Yesterday

BIOMETRIC DATA DATA MANAGEMENT DATA ANALYSIS

Today

BIOMETRIC DATA DATA MANAGEMENT DATA ANALYSIS

Tomorrow

• Fragmentation

– Individual Contributor Model

– No Single line of Control

– No ownership of the complete Patient Journey

• Inefficient

– Reactive

– Start from scratch (duplication)

Pressures on Health

Industry Response

Microsoft

• Constrained Workforce

– Average age of Nurse = 48

– Undersupply of Nurses (12,000 p.a.)

– Undersupply of Doctors (1,300 p.a.)

– Administrative burden

– Predominantly Paper Based

Pressures on Health

Industry Response

Microsoft

A shortage of health workers

Average Vacancy Percentages

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Med

ical S

pecialists

Em

erge

ncy Phy

sician

s

Inte

nsivists

Sur

gica

l Spe

cialists

Reg

istra

rs

Junior

Med

ical O

ffice

rs

Crit

ical C

are

Nur

ses

Ope

ratin

g The

atre

Nur

ses

War

d Nur

ses

Enr

olled

Nur

ses

Pha

rmac

ists

Pha

rmac

y Tec

hnicians

Pat

hology

Scien

tists

Imag

ing

Scien

tists

Med

ical R

ecor

ds S

taff

Phy

siot

hera

pists

Environmental Pressures

• Aging Population

• Increase in Incidence of Chronic Disease

• Varied Concordance with Best Practice

– Evidence for Care Rapidly Evolving

• Litigation on the Rise

• Unsustainable Growth of Health Expenditure

– New therapies and tests are invariably more expensive

• Consumer more informed (increasing consumer demand for care)

Pressures on Health

Industry Response

Microsoft

Population Growth and Aging

85+

65-84

Total (35% Growth)

Average Annual Income Tax Paid, by Age Group

WORKERS

• Trying to facilitate collaboration

• Trying to move all the clinically relevant data to the point of care

• Trying to reduce the administrative burden

• Transparency

• Collaboration

• Interoperability

• Mobility

• Security

• Automation

• BI/Reporting

Pressures on Health

Industry Response

Microsoft

Why Mobility?

Grace Kerrison

Director, Mobile Communications Business (MCB)

PC + Smartphone as End-Points for SW Market Opportunity

PC

Feature Phone

Smart Phone

Basic Phone

1400

1200

1000

800

600

400

200

0

1,176

FY08

1,388

FY11 Gartner, March 2008: Market Trends: Enterprise

Application Software, Worldwide, 2007-2012

Where Increased Spending on Hardware Will Occur –Australia

0% 10% 20% 30% 40% 50% 60%

Mainframes

Servers

Desktops and Workstations

Notebooks and Laptops

Tablet PCS

Mobile & Smart phones

PDAs

Storage HW

Printers

Copier/ Multifunction Products

Security Systems

500-

999

Percentage of Respondents2008 Gartner Inc.

Where Increased Spending on Horizontal Applications Will Occur - Australia

0% 10% 20% 30% 40% 50%

ERP

SCM

CRM

PPM

Office & Personal Productivity Apps

Collaboration SW

E-mail and Calendaring

Enterprise Content Mgmt

Design and engineering Apps

BI

BPM

Governance, Risk and Financial Compliance

Open-Source App Sw

500-999

Percentage of Respondents2008 Gartner Inc.

2008 Top 10 CIO Technology Priorities

2

Gartner, 2008 Top 10 CIO Technology Priorities – Australia; companies with Total Revenue of <$500M

CIO Technology PrioritiesPlease select your top five priorities for 2008?

Business Intelligence 1

Mobile w orkforce applications and devices 2

Servers and Storage Technologies 3

Collaboration technologies 4

Document management 5

Technical Infrastructure management and development 6

Workflow management 7

Legacy application modernization, upgrade or replacement 8

Security technologies (access control, authentication, etc) 9

Netw orking, Voice and Data Communications (including VOIP) 10

Growing Your Business with Mobility

Biz Applications

Biz Productivity

App Platform

Infrastructure

Windows Mobile

• 160 Operators Worldwide

• Top Device Manufacturers

• Growing Faster Than The Market

• Windows Mobile 6.1

• System Center Mobile Device Manager

IDC expects Windows Mobile OS phones to

continue to annually outsell Apple iPhones

in both consumer and enterprise shipments,

and by 2012, Windows Mobile is expected

to double sales over iPhone in the

consumer space, and have nearly nine

times the amount of enterprise deployment. – IDC, Worldwide Enterprise Converged Mobile Device

2008-2012 Forecast and Analysis," Doc # 212092, May 2008

“Microsoft is clearly offering a much

more competitive solution that will spur on

adoption of its mobile solutions to the

detriment of key competitors RIM and

Nokia/Intellisync”.– Kitty Weldon, Current Analysis

Windows Mobile Attach SW and Services Revenue

A deployment of Windows Mobile represents per device opportunity of:

• Average attach of $247 software and services revenue;

• $97 of attach server and tools revenue;

• $133 of managed services (including support and help desk services)

• $170 of infrastructure deployment services (includes activities, expertise, and systems involved for installation and configuration);

• Average attach $387 software and partner services with Unified Communications (OCS);

• $105 attach revenue for Hosted Exchange.

Source: IDC, “Sizing the Microsoft Channel Opportunity for Windows Mobile in Western Europe and North America”, December 2007

ProductivPartner Success Story

Desmond Russell

Director – Information Worker Practice

About Productiv

• Top Tier 2 Partner in Queensland

– Mid Market 250 -1000 users

– 40 employees

– $AUD 5-10million turnover per annum

What has Mobility done for our business?

• Created a “point of difference” in the market, providing a more compelling customer value proposition (CVP). Ability to compete in new markets, e.g. Healthcare

• Opened new opportunity discussions and relationships with customers – e.g. from IT to business unit relationships.

• Extension of productivity improvement offering to mobile work force. Improved closure rate as “quick wins” are delivered out of the box, i.e. Exchange integration

• We have seen a 300% ROI by investing in WM from investments in training to signing our first deal

• It allowed us to leverage our investment in communication link infrastructure and build an annuity revenue model (packaging of cellular fixed cost data suite, USP against Blackberry)

The Windows Mobile Influence

• WM in Healthcare - Sullivan Nicolaides Pathology

– SNP is one of Australia's largest pathology practices and provide a range of pathology testing, with over 2300 staff

• How they used WM to better patient care

– They needed a system that removed manual capture, improved and managed compliance with processes, worked within existing Microsoft investment, improved analytical reporting

– Pilot project was completed using Windows Mobile 6.1, Exchange 2007, Office Communications Server 2007, Dynamics CRM 4.0, Microsoft Offices SharePoint Server 2007, InfoPath 2007

• Common pain points addressed by the solution (across industry)

– Customer Relationship Management

– Process automation and improvement

– Increased responsiveness

– Improved information access

– Improved reporting and business intelligence capabilities – risk management improvement

“Better Information, to

make better decision to

better Patient Care”

VIDEO

Mobility - What It Has Meant For Us As A Partner- Revenue And Opportunity

• At SNP 5% of the workforce were considered mobile workers (250) WM allowed us to provide devices and software to 200 users immediately

• Revenue Growth directly from this opportunity :

– AUD $ 200 000 services revenue

– AUD $ 150 000 hardware revenue

– AUD $ 100 000 software revenue (influenced)

• Extended our IW solutions, ECM, Forms and Workflow to these users (Greater ROI for customer)

• Additional system development and integration service opportunities, typically our core business

• We were able to influence the Enterprise Agreement and thus score some extra “points” with our PAM

• SNP now have a complete platform for the delivery of additional solutions and services including Office Communication Server

From Personal Productivity to Role-Based Productivity

Microsoft OfficeSharePoint Server

CXO’s/Finance

Line of BusinessApplication

Operations/Field Force

Microsoft OfficeOutlook

Sales & Marketing

Call To Action – Get "Mobile Ready"

Include Health and Mobility in your PSP’s

• Attend APC Mobility Sessions

• Thursday, Aug 7: The New World of Work – Mobile Information Worker

• Thursday, Aug 7: Delivering a Standard MOE – The White Space Opportunity in Enterprise and MidMarket

• Join the Mobility Competency (talk to an MCB resource at the BrightpointBooth)

• More info at https://partner.microsoft.com/global/productssolutions/mobility

• Stay informed!

• Sign up to receive the new Mobility Solutions RSS Feed at https://partner.microsoft.com/global/40070648

• Use Windows Mobile yourself (Brightpoint Booth – APC event special deals)

• Build on your existing business, create a Mobility Practice