ENTERPRISE RESOURCE

PLANNING
K J SOMAIYA INSTITUTE OF MANGEMENT STUDIES &
RESEARCH

Pranav Anand
Partha Sarathi Banerjee
Sankalpa Mohapatra
Palash Linge
Group 10

03
09
40
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INTRODUCTION
Enterprise resource planning (ERP) is an integrated
set of software modules linked to a centralized
database and handling basic corporate functions. It
helps to integrate all the departments and functions
of an organization and hence helps in ease of
business, better analysis and providing quick and
optimal solutions

MOTIVATIONS UNDERLYING
ADOPTION OF ERP

TYPES OF BENEFIT REALISED

MOTIVATIONS UNDERLYING ADOPTION

OF ERP IN HEALTH CARE SYSTEMS
Technological motivations Clinicaloperational
motivations
Clinicalstrategic motivations
Financial motivations.
Improve administrative process effectiveness
Improve the effectiveness and efficiency of care
provided to patients
Monitor cost trends
Leverage the ERP system to enhance compliance
with applicable laws and regulations

SUCCESS FACTORS OF ERP

IMPLEMENTATIONS
Factors are broadly classified into 5 sections which are
further classified as given below:
A. Factors related to Implementation Participants:

Project Manager
Team Composition
Team Involvement
Motivation Systems:
Cooperation with Suppliers:

B. Top Management Involvement

Top Management Support
Top Management Awareness
Top Management Participation

SUCCESS FACTORS OF ERP

IMPLEMENTATIONS (CONTINUED)
C.

Project Definition and Organization:

Linking with Strategy

Implementation Goals
Detailed Schedule
Pre-implementation analysis
Organizational Change
Monitoring and Feedback
Implementations and Promotions
Fast Effects
Appropriate Training

SUCCESS FACTORS OF ERP

IMPLEMENTATIONS (CONTINUED)
D. Project Status
Investment Plan
Project Team Empowerment
Financial Budget
Work Time Schedule
IT infrastructure
E. Information Systems
System Reliability
Minimal Customization
Legacy Systems
Implementation Experience
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RESEARCH METHODOLOGY
The research questionnaire was conducted
It included respondents of 228 various ERP
project users and 68 answers were obtained (30
%) from various industries
This questionnaire was also floated with the
specialists with experience in ERP
implementations
The list of success factors given above were
presented and were asked to express their
opinions about the importance of each factor on
the scale of 0-5 (Likert scale)
0 extremely low
1 very low
2 low
3 average
4 high
5 very high

ANALYSIS OF THE RESEARCH

On Factor Analysis, it was found that the responses of
the respondents and the specialists were in agreement
with each other with a degree of convergence of 77%
Both groups indicated Team composition, team
Involvement and Detailed Schedule are most important
and necessary elements for a project success
Experts suggest factors Project Manager, Financial
Budget, Top Management Support and Project Team
Empowerment to be of paramount importance whereas
Respondents indicate the importance of factors CoOperation with Supplier, Top Management Awareness
and System Reliability of higher importance.

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CONCLUSION FOR SUCCESSFUL

IMPLEMENTATION IN OVERALL
INDUSTRIES

The study (Soja, 2006) helps us to determine the

influence of various factors involved in the ERP
projects success in overall industries where the
application can be put to use
Also helps us to determine the key factors that
can be taken into consideration during an ERP
implementation
As the research is based on a multiple industry
responses, factors for a particular industry may
be different from those obtained here

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CRITICAL SUCCESS FACTOR FOR ERP

IMPLEMENTATION IN HEALTHCARE
Top Management Commitment:
User Involvement
Business Process Reengineering
Project Management
ERP Teamwork & Composition

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CRITICAL SUCCESS FACTORS FOR ERP

IMPLEMENTATION IN A FORTIS HOSPITAL
We narrow down our scope of
research to target one specific
hospital.
The Fortis Hospital of Bangalore
and discuss about the factors
which have led to the successful
implementation of ERP in that hospital.
Aim : To identify the key factors and examine the
relationships
between them and the success
of ERP implementation.
20 percent of key items that contribute to 80 percent
of ERP implementation success were noted down as
critical factors.

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RESEARCH FRAMEWORK AND

HYPOTHESES DEVELOPMENT
The five critical factors under study were as follows :
Top
Management
Commitment
:
Top
management must be involved and devote
appropriate time to finish and allocate valuable
resources to the implementation effort.
Hypothesis defined was
H1: Top Management Commitment is positively
related with ERP implementation success
User Involvement : The more the users are
familiar with the new ERP methodologies, greater is
the chance for its success.
H2: User Involvement is positively related with
ERP implementation success
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 Business Process Reengineering : Re-engineering has

continually reduced workforce size and other short-term
cost saving, with less impact on developing computer-based
automation.
H3: Business Process Reengineering is positively related
with ERP implementation success
Project Management : Healthcare projects need excellent
management for the diverse contributions from the
business units, customers and suppliers, vendors and
consultants involved in the project.
H4: Project Management is positively related with ERP
implementation success
ERP Teamwork & Composition : In a strategic business
unit such as a hospital, building a cross-functional team is
essential, which must be a judicious combination of
consultants and internal staff, so the internal staff can
develop the necessary technical skills for design and
implementation.
H5: ERP Teamwork & Composition is positively related
with ERP implementation success
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FORMULATION OF MULTIPLE REGRESSION MODEL

The above mentioned factors are independent

variables which we name as X1, X2, X3, X4 and X5
respectively, on which the dependent variable which
we define as Y (respondents perception of the
Success of ERP implementation) depends upon.
Thus, the multiple regression model can be
formulated as follows
Y = 0 + 1 X1 + 2X2 + 3X3 + 4X4 + 5X5 + e
Objective is to test our hypothesis on our selected
sample (namely, Fortis Hospital) to get an overview
of the population as a whole which is the
healthcare industry

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RESEARCH METHODOLOGY
This study was based on empirical data collected through
an interview with Managers, key users of Fortis hospital
who had an important role during ERP implementation
and consultants who participated in the project.
An initial draft questionnaire was developed containing
the five factors, for each, questions were provided to tap
the elements of the factor.
The study employed a five-point Likert scale ranging 1
(not important for success) to 5 (extremely important for
success) to measure above-mentioned items.
Next, statistical methods were used in the research
which
comprised
factor
analysis,
descriptive
statistics,
correlation
analysis
and
multiple
regression analysis in order to examine and validate
the relationship between critical factors and success of
ERP implementation at Fortis hospital.
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RESULTS
Sample was adequate
All items were deemed reliable
All the independent variables were
positively related to success of ERP
implementation
There is a positive relation between
each of the factor and the success of
ERP implementation
Coefficient of Determination R2 = 0.877
indicated that 87.7 percent of the
variation
in
success
of
ERP

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ANALYTICS
Huge volumes of Data
Skyrocketing costs
Improve operations and patient outcomes
Data sharing and collaboration across value chain
Stiff Competition

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Healthcare Analytics Adoption

Model
Provide a roadmap for organizations to
measure their own progress towards
analytic adoption
Provide a framework for evaluating the
industrys adoption of analytics
Provide a framework for evaluating
vendor products

Healthcare Analytics Adoption Model

Level 8

Personalized Medicine
& Prescriptive Analytics

Tailoring patient care based on population outcomes

and genetic data. Fee-for-quality rewards health
maintenance.

Level 7

Clinical Risk Intervention

& Predictive Analytics

Organizational processes for intervention are

supported with predictive risk models. Fee-forquality includes fixed per capita payment.

Level 6

Population Health Management

& Suggestive Analytics

Tailoring patient care based upon population

metrics. Fee-for-quality includes bundled per case
payment.

Level 5

Waste & Care Variability

Reduction

Reducing variability in care processes. Focusing on

internal optimization and waste reduction.

Level 4

Automated External Reporting

Efficient, consistent production of reports &

adaptability to changing requirements.

Level 3

Automated Internal Reporting

Efficient, consistent production of reports &

widespread availability in the organization.

Level 2

Standardized Vocabulary
& Patient Registries

Relating and organizing the core data content.

Level 1

Enterprise Data Warehouse

Collecting and integrating the core data content.

Level 0

Fragmented Point Solutions

Inefficient, inconsistent versions of the truth.

Cumbersome internal and external reporting.

Progression in the Model

The patterns at each level

Data content expands

Data timeliness increases

To support faster decision cycles and lower Mean Time To

Improvement

Data governance expands

Adding new sources of data to expand our understanding of

care delivery and the patient

Advocating greater data access, utilization, and quality

The complexity of data binding and algorithms

increases

From descriptive to prescriptive analytics

From What happened? to What should we do?

The Expanding Ecosystem of Data Content

Real time 7x24 biometric monitoring

data for all patients in the ACO
Genomic data
Long term care facility data
Patient reported outcomes data*
Home monitoring data
Familial data
External pharmacy data
Bedside monitoring data
Detailed cost accounting data*
HIE data
Claims data
Outpatient EMR data
Inpatient EMR data
Imaging data
Lab data
Billing data

t currently being addressed by vendor products

2-4 years

1-2 years

3-12 months

Six Phases of Data Governance

You need to move

through these phases
in no more than two
years

2-4 years

Phase 6: Acquisition of Data

Phase 5: Utilization of Data

Phase 4: Quality of Data

Phase 3: Stewardship of Data

Phase 2: Access to Data

Phase 1: Cultural Tone of

1-2 years

3-12 months

Data Driven
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Architecture

Timelines and Costs

Can the solution offer business value in less than
3 months, in constant increments?
Does the solution cost less than $7M over three
years for a $1B - 2B organization (scale up and
down accordingly)?

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Vendors in the Crowded Market

4medica
Analytics8
Ascender
Cerner
CitiusTech
Cognizant
Crimson
Epic
Explorys
Health Care Dataworks
Health Catalyst
HealthBridge
Humedica

IBM
MedeAnalytics
MEDecision
Oracle
Perficient
Predixion
Recombinant
PSCI
Sajix
SpectraMD
Strata Decision Technology
White Cloud Analytics
ZirMed

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Summary
The analytic environment in healthcare is rapidly
changing, and thats not going to stop
Adaptability of the technology is crucial
Technology is only 1/3 of the solution
Cultural willingness to embrace analytics is
crucial
Cultural processes for sustained implementation
are crucial
Look for a vendor that offers a total solution
closed loop analytics

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Thank
You

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