express scripts express scripts enterprise data warehouse joe federer, senior director
TRANSCRIPT
A bit about the Journey
• Introduction
• Business Story
• Implementation – SuperBowl Sunday
• Enterprise Logical Data Model
• Summary
“Our health is far behind the progress of medical science…Proper medical care is so expensive that it is
out of reach of the great majority of our citizens.”
Who Said It???
• George W. Bush• William J. Clinton• Lyndon B. Johnson• John F. Kennedy• Harry S. Truman State of the Union address - 1949
Who Is Express Scripts?
Contact Centers• Arizona• Colorado• Georgia• Michigan• Minnesota• Missouri• New Mexico• New York• Pennsylvania
Home Delivery• Arizona• Missouri• New Mexico• Pennsylvania
Corporate Headquarters:St. Louis, Missouri
Coming
soon
to a
campus
near you
Specialty Platform
Labor/ NE/
SG&A
D IVERSIFIED®
Managed Care /
Rebates / SG&ALarge
Employer/ Mail
Middle Market
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Revenue Growth with AcquisitionsM
illion
s
Teradata Implementation - Progression
Operational DWDB-22 TB
Q1
2007
Adjudication
Pharmacy Reference
stage
DB-2
Decision SupportRS-6000 SP-2
8 nodesAIX 4.3DB-2
4 TB / 1.8 TB
Feb
2006
Data MartsRS-6000 SP-2
2 nodesAIX 5.1DB-2
800 GB / 200 GB
Ap
ril 2006
ClientAd-HocRS-6000 SP-2
1 nodesAIX 5.1DB-2
200 GB / 50 GB
Ap
ril 2006
Client PortalP690
AIX 5.1UDB
2 TB /800 GB July
2006
Teradata
Data Marts
Silo Silo Silo Silo Silo Silo SiloSilo
Silo SiloSiloSiloSiloSilo SiloSilo
ProdMgt
ClaimCallCtrOpsMktg SalesFin
On
-g
oin
g
New EnterpriseLogical Data Model
“Tall and Skinny” to EDW
Claim
s
Mem
ber
GL/Fin
ance
Benefit
Presc
riber
Home
Deliv
ery
Drug
Sales
Contact
Specia
lty
Current
% of Subject Area Built Out
Claim
s
Mem
ber
GL/Fin
ance
Benefit
Presc
riber
Home
Deliv
ery
Drug
Sales
Contact
Specia
lty
Goal State
% of Subject Area Built Out
“Tall and Skinny” to EDW
ContactContact
ClaimsClaims
MemberMember
BenefitBenefit
GL/FinanceGL/Finance
PrescriberPrescriber
DrugDrug
SalesSales
Home DeliveryHome Delivery
SpecialtySpecialty
t1 t2 t3 t4 t5
Retail Pharmacy
Home Delivery
Pharmacy
PatientCare
Advocate
Client
Stratus
Anchor
Compass
Outbound / Express Contact
Web Servers
Data Warehouse and Reporting
CORBAIntegrationServices
Member
Trend Central· Clients· CPMs
Internal Analytics· Product Management· Provider Relations· Finance· BACS
Member Portal
Informatica
CICSAgents
EnterpriseEligibility
WAN
Home Delivery Systems
Teradata
Business Objects
Web Servers
Data Warehouse and Reporting
Informatica
Teradata
Business Objects
Web
Servers
Goal State Architecture – EDW Operational Data Repository
• New Integration Technologies to provide a consistent mechanism for application integration and data inquiry services (ESB/SOA).
• High availability in the Data Warehouse Teradata, Informatica, Business Objects, and Web environments.
• Active feeds from operational systems into the warehouse via consistent integration technologies.
• Inquiry services reference a single data source in many cases.
• Operational Business Intelligence is enabled by loading transactions into the EDW in near real-time.
Enterprise Service Bus
Operational BI
Our Work Matters
• We serve patients and clients
• We align our interest with clients
• We add value to help us grow
• We make this a positive place to work
14
Information Technology
• We develop great people
• We deliver world-class system performance & reliability
• We build solid platforms and architecture
• We deliver innovative business solutions
• We develop solid strategic plans
We are developing top talent for tomorrow’s leaders.
How to Apply:
• Visit www.express-scripts.com
• Click on Careers under “Our Company”
• Click on Opportunities at Express Scripts
• Select a location or “All” in the Location drop-down list
• Select “Intern Opportunities” in the Job Category drop down list
• Fill out the application online
Watch for Internship job descriptions online after Oct. 16th
Conclusions
• Good Roadmap
• Fostered Executive Buy-in
• Continue to Deliver on Strategy
• And… consider Express Scripts…
Desired Situation
• Data Warehouse as an enterprise information asset.
• Business driven implementation.• Re-use and leverage of intellectual property.• Phased delivery for managing risk and
maximizing ROI.• Efficiency in deployment.• Extensibility for new applications and data
content.• Consistent enforcement of privacy and
security policies.
An Analogy
First Method: Construct neighborhoods of the city as required on an as-needed (ROI justified) basis.
• Each neighborhood is constructed based on the needs of its constituency and pre-existing neighborhood infrastructure.
• Each constituency pays only for its neighborhood construction costs.
• As the city evolves and expands, invest in appropriate re-engineering to meet new requirements.
An Analogy
Example Result: Boston.
• Numerous one-way streets and dead ends.
• Difficult to navigate.• Non-extensible without
major costs.– e.g., “The Big Dig”
• New neighborhoods not well integrated.
An Analogy
Second Method: Invest in an up-front city plan as a “blueprint” for city design.
• Requires infrastructure investment prior to constructing first neighborhood.
• Funded by “city tax” across all constituents.• City plan provides high level framework, not the detailed design.• Each neighborhood construction project adheres to the city plan
(blueprint).• Each constituency pays for its detailed design and construction
costs. • Extensibility built into the city plan.
An Analogy
Example Result: Toronto.
• Investment and vision applied prior to actual construction.
• Extremely “user friendly” city.• Extensibility of infrastructure anticipated in city
design and overall cost is minimized.– e.g., Toronto subway.
• New neighborhoods easily added without straining infrastructure.
An Analogy
The Enterprise Data Model for your Data Warehouse is like the City Plan for designing a Metropolis.
Efficient and extensible deployment of a Data Warehouse requires an Enterprise Data Model.
Note that disciplined adherence to blueprint is a pre-requisite to success.
25
Implementation and Deployment
There is a spectrum of implementation approaches for a data warehouse – each with a different set of investment tradeoffs.
1. Independent PDM (Physical Data Model) for each domain of analytic applications (e.g., marketing, pricing, medical management, etc.).
2. Incremental deployment of enterprise PDM with re-engineering appropriate to each phase of delivery.
3. Phased deployment of PDM within an enterprise LDM framework.
26
Implementation and Deployment
The Enterprise Logical Data Model provides a framework for building the 80% once rather than once for each domain of analytic applications.
• Estimated cost for independent multi-mart approach is 70% higher than for phased implementation using an Enterprise LDM framework.
• Estimated cost for incremental deployment of enterprise PDM without Enterprise LDM is 20-30% higher due to re-engineering requirements in each phase.
27
Implementation and Deployment
The blueprint provided by an Enterprise Logical Data Model allows extension of data content in the warehouse via enhancement to data domains and data relationships...
...without re-engineering the data model for each new application or data source.
Implementation and Deployment
Avoid “big bang” approach to data modeling:
• Goal is to create a conceptual data model to act as blueprint for the enterprise.
• Do not get caught up in detailed sub-typing, attribution, or data typing for entities.
• Complete conceptual model and opportunity analysis within four months of start date.
Funding Model
• High-level design of conceptual ELDM performed across business units and funded as infrastructure investment as pre-requisite to data warehouse construction.
• Detailed design and population of ELDM is justified by specific ROI opportunities.
• Conceptual ELDM deliverable is focused on what is necessary for extensible delivery of the data warehouse solution.
• Detailed design of ELDM is delivered incrementally with each ROI opportunity.
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Member
Member Reporting
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
Member
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
DepartmentParadigm
EnterpriseParadigm
Member Reporting
(150)
(150)
Think Big, Start Small
Member +Claims
Medical Management
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Member
MemberReporting
Claim
s
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
Member
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
DepartmentParadigm
EnterpriseParadigm
MemberReporting +
Medical Management
(120)(150)
(260)
(150)
Think Big, Start Small
Member + Claims
MedicalManagement
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Billing
ChurnGrowth
Customer
Member
InforceReporting
Claim
s
Revenue
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
Single view of enterpriseStore once, use many
Optimized cost structure
Member
IT Development“The
ITProvider”
Business Value
“TheBusinessUser”
Member + Claims + Revenue
DepartmentParadigm
EnterpriseParadigm
Member Reporting + Medical Management +
Financial Analysis
Financial Analysis
(120)
(380)
(110)(150)
(260)
(150)
Think Big, Start Small