Download - Defensible Disposal
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Developing a Business Case for Healthcare Solutions - Telemedicine
Ajay Asthana ([email protected])
Objectives – Making Solution Selling Easier
• Challenges in selling technology solutions– Decision making is moving to front office– Customers have to do-more-for-less– Use a consultative approach to selling– Improve outcomes from the use of technology – Industry, solution, customer and sale specific value propositions– Agile and Flexible – easy to modify
• The tool helps in developing “credible” business cases – Focused on value and not function, feature and price – Calculates important financial measures ROI, NPV, TCO, PP, and IRR – Can be used by both value marketing and value selling– Easy to enable the sales team
• Benefits to the solutions development group– Support the development of solution on value, customization & integration– Reduces the solution selling time – status quo elimination (30%)*– Increases the deal size by bundling complementary offerings (30%)*– Improves the win-rates in competitive situations (60%)*– Reduces the risk of technology implementation
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* Source: American Marketing Association
Business Case Framework for Value of Defensible Disposition
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PredictiveCoding
PredictiveCoding
TotalModel
TotalModel
TapesTapesApplication
Test etc.
ApplicationTest etc.
ApplicationProduction
ApplicationProduction
TotalModel
TotalModel
IncreaseNPV, IRR
IncreaseNPV, IRR
P&LP&L
ROI / PPROI / PP
ConsultingConsulting
SoftwareSoftware
HardwareHardware
Medium &Small App
Medium &Small App
LargeApplications
LargeApplications
Total Model
Total Model
SolutionValue
SolutionValue
OperationsCosts
OperationsCosts
BusinessTransformation
BusinessTransformation
ApplicationDecomm
ApplicationDecomm
e_DiscoveryReview
e_DiscoveryReview
StructuredStorage
StructuredStorage
UnstructuredStorage
UnstructuredStorage
+ + + - - =TechnologyAutomation
TechnologyAutomation
PeopleEffectiveness
PeopleEffectiveness
ProcessStreamlining
ProcessStreamliningTotal
Model
TotalModel
eMail & Sharepoint
eMail & Sharepoint
CollectionCollection
Benefits Costs
ReduceTCO
ReduceTCOReview
ReviewBackup
Backup RiskReduction
RiskReduction
Value
ChangeManagement
ChangeManagementBackup
Backup BackupBackup
Diseases in Scope: Diabetics, High Blood Pressure, Congestive Heart Failure (CHF), Chronic Obstructive Pulmonary Disease (COPD) , and Depression
Execution Results and Demonstrating the Value of the Solution
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Year 1 Year 2 Year 3 Year 4 Year 5 TotalTotal In-Flows
0 101,249,959 152,957,073 203,185,118 203,185,118 600,351,634
Total Out-flow
48,658,900 1,200,000 1,200,000 1,200,000 1,200,000 53,458,900
Net Cash Flow(48,658,900) 100,392,599 151,188,839 201,985,118 201,985,118 606,892,734
Incremental cumulative inflow0 101,592,559 253,981,396 457,166,516 660,351,634 660,51,634
Incremental cumulative outflow48,658,900 49,858,900 51,068,900 52,528,900 53,458,900 53,458,900
Net incremental cumulative cash flow(48,658,900) 51,733,659 202,922,496 404,907,616 606, 892,734 606,892,734
Discounted cash flow stream(44,235,364) 82,969,057 113,590,412 137,958,554 125,416,867 415,699,526
Payback PeriodPP
Net Present ValueNPV
Return on Investment ROI
Internal Rate of Return IRR
Total cost of Ownership TCO
1.48 $415,699.526 1135.25% 242.66% $53,458,900
Solution offerings for developing the value proposition
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1. Business Value Identification – Emerging Solutions - Goal: Quantify value of change and prove the superior value, customized white papers, - Examples – Analytics, Mobility, Healthcare Fraud and Abuse, workforce optimization etc.
2. Business Value Workshop - Solutions with Existing Value Proposition– Goal: Diagnose the attention worthy issues, assumptions, benefits among competing alternatives– Examples – BPM, Telemedicine; RTLS, Digital Hospital, EMR, eReferral etc.
3. Business Value Work steam - Customer Engagements – Goal: Engage with large implementation projects to demonstrate the value of technology transformation– Examples – Legacy transformation, BPM, SOA, & Mobility, Gating process support, Manulife etc.
SalesTeam
Customization
DetailedBusiness
Case
BusinessValue
workstream
SolutionDevelopment
SolutionSale
Business Value
Identification
BusinessValue
Workshop
Why Change? Why Now? Why Our Solution? Why IBM?Engagement SupportPre Sales ActivityDemonstrate Value
Entry PointISSW Entry PointISSW Entry PointISSW
Sales Acceleration
1 2 3
Benefits of the Approach
1. Connect higher in customer organization (economic buyers / CFO’s) – value
2. Optimal solution pricing through what-if analysis – improved margins3. Improves trust by engaging the customer - consultative process and
approach4. Enables IBM’s global sales force to move towards value-based selling –
ease of use5. Reduces solution sales cycle time – ease of customization6. Present a “One IBM” view (GBS, GTS, SWG, BP) to the customer -
outcomes7. Promotes complementary products and offerings based on value - holistic8. Allows IBM to develop reusable assets using customer funding – leverage9. Provide customer “value” feedback to solution developers – continuous
improvement
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Solution Architecture – Connected to Framework
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Data collectioniPhone, iPad,
Polycom
Network LayerJuniper,
Event ManagementiLog, WBE, Polycom
Integration LayerJuniper, WPS, Polycom
Application LayerSAP, Cerner
Business ProcessLombardiStreamlining
Patient FlowsStreamliningPatient Flows
StreamliningProvider FlowStreamlining
Provider FlowDisease
ManagementDisease
ManagementCare
CoordinationCare
Coordination
Labs andPharmacies
Labs andPharmacies
Enterprise ResourcePlanning - ERP
Enterprise ResourcePlanning - ERP
Electronic MedicalRecords - EMR
Electronic MedicalRecords - EMR
PatientScheduling
PatientScheduling
Intranet and InternetConnectivity
Intranet and InternetConnectivity
Process Automation and Workflow
Process Automation and Workflow
Event Management
Event Management
Event Filtering& Routing
Event Filtering& Routing
RuleEngine
RuleEngine
Alerts andTriggers
Alerts andTriggers
WiredNetwork
WiredNetwork
WirelessNetworkWirelessNetwork
NetworkSecurityNetworkSecurity
NetworkAdministration
NetworkAdministration
Patient devicesPatient devices Provider DevicesProvider Devices
Appendix – Tool Screenshots
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Tool Assumptions – Customizing the Value Proposition
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Tool Benefits – Enhancing “Credibility” of the Solution
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Tool Calculations – Incorporating Customer Performance Measures
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Tool Overall Benefits – Connecting Roadmap to Implementation
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Tool – Overall costs of the solution – Connects to the Proposal
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Tool – ROI Calculation
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Tool – All the Financial Measures
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