2012 Frost & Sullivan Asia Pacific Healthcare IT Company of the Year

© 2012 Frost & Sullivan 2 “We Accelerate Growth”

2012 Frost & Sullivan Asia Pacific Healthcare IT Company of the Year

Frost & Sullivan’s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company’s research philosophy originates with the CEO’s 360 Degree Perspective™, which serves as the foundation of its TEAM Research™ methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the award for 2012 Frost & Sullivan Asia Pacific Healthcare IT Company of the Year to InterSystems.

© 2012 Frost & Sullivan 3 “We Accelerate Growth”

Significance of the Company of the Year Award Key Industry Challenges Addressed Asia Pacific (APAC) healthcare providers are faced with the momentous task of providing safe, quality, equitable healthcare services in a cost effective manner. The dynamic industry consisting of both public and private players is increasingly under pressure to reorganize its infrastructure in order to meet the demands of aging populations tending towards chronic lifestyle related diseases. The shift from “cure” to “wellness” requires healthcare providers to be more proactive in delivering services than before. Under these circumstances Healthcare IT is not just a booming market; it is a need of the hour, as recognized by all governments in APAC. The industry was valued at USD 2.5 Bn in 2010 and is expected to grow at a compound annual growth rate (CAGR) of 10.8% between 2010-2020. The Healthcare IT industry in APAC is highly fragmented, with market participants competing against each other primarily on pricing and product quality. International players, including IBM, Microsoft, SAS, Oracle and SAP compete as well as collaborate with local vendors to penetrate the market. At the same time, this industry faces the unique challenge of having to customize products and services to match local laws, client requirements and culture. The time taken for a vendor to implement and run a solution becomes a critical success factor. The above challenges, complicated by strong intervention from the government sector and a growing demand for quality healthcare services, make the APAC Healthcare IT market extremely interesting and dynamic. Frost & Sullivan tracks this market on a regular basis through a dedicated team of analysts and publishes thought leading insights, which are relevant to our clients’ businesses. The 2012 Frost & Sullivan Asia Pacific Healthcare IT Company of the Year award is presented to InterSystems, the US-based privately held software firm, for the extraordinary client value it has delivered in the APAC Healthcare IT space. InterSystems is a USD 385 Mn company founded in 1978 with offices in over 25 countries across the world.

© 2012 Frost & Sullivan 4 “We Accelerate Growth”

Key Benchmarking Criteria for the Company of the Year Award For the Company of the Year Award, the following criteria were used to benchmark InterSystems’ performance against key competitors:

• Excellence in Growth Strategy & Differentiation • Degree of Innovation in Business Process • Leadership in Customer Value and Market Penetration

Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies’ performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 1. Chart 1: Performance-Based Ratings for Decision Support Matrix

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This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Chart 2: Frost & Sullivan’s 10-Step Process for Identifying Award Recipients

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Best Practice Award Analysis for InterSystems The Decision Support Matrix, shown in Chart 3, illustrates the relative importance of each criterion for the Asia Pacific Best Practices Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart 3: Decision Support Matrix for Company of the Year Award

Measurement of 1–10 (1 = lowest; 10 = highest) Award Criteria

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Relative Weight (%) 30% 20% 50% 100%

InterSystems Corp. 10 10 7 8.5

Competitor 1 9 7 5 6.6

Competitor 2 9 9 8 8.3

Criterion 1: Excellence in Growth Strategy and Differentiation Growth Strategy InterSystems has managed to win over market share as well as client trust among leading APAC healthcare organizations through four major products:

• TrakCare – InterSystems’ primary HC application which provides everything that a HC organization needs on a single platform including both clinical and administrative functionality. It is a widely sold product in APAC and is developed in Australia.

• Caché – The company’s oldest product and the largest revenue generator, it is a high-performance database and application development software used by healthcare and other industries.

• Ensemble – An integration platform, primarily for healthcare systems and applications.

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• HealthShare – Originally a platform for national or regional heath information exchange, HealthShare was re-architected and re-launched in 2012 to meet new market requirements. HealthShare leverages InterSystems’ technology from the other three products to deliver a health informatics platform for analytics and interoperability. While all four products showed growth in 2011, this was the largest growth product for InterSystems.

InterSystems does business with both healthcare providers as well as application vendors, including GE Healthcare, Siemens Medical Solutions and Epic Systems, who embed InterSystems technology in their solutions. The company sees growth in both channels and is determined to vigorously pursue them through a direct selling model. It also aims to expand its global footprint and increased its staff strength by 10% in the first half of 2012.

Differentiation The latest and most significant trend in the Healthcare IT space is customers requiring bigger and more complex installations rather than incremental enhancements. It is now common for Healthcare IT companies to handle nation/region-wide installations. InterSystems designs products with this trend in mind. By offering a broad range of software solutions, InterSystems can meet a wide range of connected care requirements and customer maturity levels across diverse geographies. Criterion 2: Degree of Innovation in Business Process InterSystems has innovated service delivery by offering Country Editions of its products and through its ARIES customized methodology for rapidly implementing complex large-scale enterprise software systems. These innovations, developed through years of experience delivering in international markets, enable customers to take advantage of global best practices with a solution that also meets their individual needs and gives them fast results. Together, these innovations help clients reduce cost and risk, improve business processes and keep abreast with the latest technology and software. The TrakCare product is particularly interesting to clients when offered on a Software-as-a-Service (SaaS) basis. This model has truly allowed customers to reduce their total cost of ownership and improve their business processes. The recipient previously focused on established hospitals. However, InterSystems has now identified an upcoming segment – construction companies engaged in developing healthcare infrastructure -- and is targeting this audience to win large-scale projects which allow it to deploy and manage a complete hospital information system from scratch. InterSystems has been successful in targeting the Middle East and North Africa (MENA) region with this strategy.

© 2012 Frost & Sullivan 8 “We Accelerate Growth”

Criterion 3: Leadership in Customer Value and Market Penetration InterSystems believes that the most critical component of client satisfaction is quick and effective installation and improved productivity. Taking advantage of inherent product flexibility, country-specific versions of TrakCare come pre-configured with ready-to-run workflows, EPR charts, screen layouts and other key system elements, reducing the implementation effort, and improving user adoption and satisfaction. InterSystems incorporates “best practices” from hundreds of sites around the world to deliver a rich and usable system that is easily upgraded and supported. This makes deployment easier and more cost-effective and clients are able to see quicker ROI. The company has a strong foothold in Australia and New Zealand and has won several large projects in Japan, China, Hong Kong and Thailand in the past two years. It has a modest presence in India. Conclusion Frost & Sullivan believes that InterSystems has crafted its core competencies with a lot of detail and is adopting very specific programs to maintain and harness growth from these competencies. It has a well-defined business strategy, which will help it achieve its growth goals.

© 2012 Frost & Sullivan 9 “We Accelerate Growth”

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