DigitalTransformation

A ClearDATA eBook

Seven Strategies to Inform Your Healthcare Initiative

Digital Transformation: Seven Strategies to Inform Your Healthcare Initiative 2

For all of the buzz around digital transformation in healthcare, there’s still a lot of work to be done before healthcare sees the same consumer or customer-centered experiences that have digitally transformed banking, retail, and other verticals. It’s not a lack of wanting to transform; in most cases, it’s often a lack of knowing how and where to start. I’ve talked with Chief Digital Officers, Chief Innovation Officers, Chief Strategy Officers, Chief Technology Officers, Chief Information Officers and others across the country and across provider, payer, life sciences, and health technology. I’ve also read extensively on this topic and will be providing links to some great research on health digital transformation. I’m excited to share my distilled findings with you now.

In their article, Promoting an Overdue Digital Transformation in Healthcare, McKinsey & Company cite their colleagues as saying the three barriers to digital transformation most mentioned by the pharma and med tech industry were not technology based, but instead culture and mind-set, organizational structure, and governance. The payoff for succeeding is real, however, as the article goes on to share potential from transformations including being able to “prevent up to 95% of adverse drug events, saving lives by improving compliance with care recommendations, reducing the number of duplicate diagnostic tests and reducing costs by 7 to 11 percent.”

It’s not just life sciences that stands to benefit from a digital transformation. Deloitte tells us in their analysis, The Value of Patient Experience, that “Improving the patient experience can help a hospital improve its financial performance by strengthening customer loyalty, building reputation and brand, and boosting utilization of hospital services through increased referrals to family and friends.” They add that payers looking for better value are also focusing on the patient experience. In their pivotal report Forces of Change: The Future of Health, they paint the hopeful picture that “The future of health will likely be driven by digital transformation enabled by radically interoperable data and secure platforms…” which stands in in contrast to today’s often disconnected silos and systems.

As is so often the case with transformation efforts, the secret isn’t just wanting change and new outcomes, it’s knowing where to start and recognizing digital transformation is about more than technology. Here are seven strategies that can help inform and accelerate your digital transformation.

SCOTT WHYTEChief Strategy OfficerClearDATA

1 Start with the Customer

2 GettingtheRightTeamattheTable

3 LookforWhiteSpaceandDifferentiate

4 GettingBuy-infromStakeholders

5 RecruitOutsideoftheBox

6 UnderstandYourTechnology Isn’t All That’s Changing

7 KnowthatTransformationRequiresTrust

DigitalTransformation

Seven Strategies to Inform Your Healthcare Initiative

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Digitaltransformationeffortsareaboutcreatingimprovedend-userexperiences

— 1 —Start With

the Customer

Any successful digital transformation effort starts and endswiththecustomer.Beforeyouembark,makecertainyouhaveadeepunderstandingofyourorganization’sgoalsandobjectivesthat are most closely tied to your customers. You’ll want adigitalstrategythatisinformedbytheneedsofyourcustomers.Customersorpatients/consumers/membersareatthecenter,andtheirneedsshoulddrivetheinitiativewhileinformingyourbusinessgoalsandobjectives.Beholisticinthinkingaboutandacknowledgingyourvariousconstituents(notonlyyourprimaryconstituents)andtheirneeds.

Inadditiontoyourprimarycustomers,you’llwanttothinkaboutyourpartners,suppliers,aswellasyourownemployees,internalconstituents,andotherswhocompriseyoureco-system.Weoftenthinkfirstandforemostofourcustomers.Inthecaseofhospitals, thosearepatients; in thecaseofpayers, thosearemembers;andit’srighttoprioritizethem,butyouwanttokeepthewhole landscape inmind sowhat you do in one part ofyourorganizationhasapositiverippleeffectonanotherpart.Agreathealthcaredeliveryexampleofthisapproachisusingdigital strategies tomake finding and integrating informationeasierandfasterforphysicians,nurses,andothercaregivers.Theirincreasedproductivityanddecreasedfrustrationdirectlybenefitsyourpatients.

This article from Healthcare IT News points to the approach Humana is taking to broadening digital health by opening anewBostonlocationcalledStudioH,committedtodevelopingdigitaltoolsandenterpriseanalytics,allpartoftheirstrategicimperativetopersonalizeandinnovatetheexperiencefortheirmembers. It’s clear they are thinking about their customermembers, and also about how to integrate this changemanagementthroughouttheirorganization.

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Anytimeyouimplementsignificantchange,it’simportanttothinkabout

whoneedstobeatthetable

— 2 —Getting the RightTeam at the Table

Digital transformationrequiresanalignedandcommittedteam.Anytimeyouareimplementingsignificantchange,it’simportanttothinkaboutwhoneedstobeatthetable.MostpeoplerealizeCIOs and CTOs should be engaged but sometimes overlookthe importance of having theirmarketing and communicationslead involved, for example. You’ll need someone who clearlyunderstands the brand, where it’s going, market perceptionsandhowtoenhanceyourmessagingaroundyourinitiative.Youmayalsoneedtobringinspecificbusinessprocessowners.Forexample,youmayneed to tap intoa legacysystemtopresentdata inamoreaccessiblewayandthebusinessand ITprocessownerscanhelpyoudetermineifyoucanintegrateyourchangesintotheexistinglegacysystemorifyouneedtostartnetnew.

Increasingly,weseecompaniesbringingonaChiefDigitalOfficer,ormorphingtheCIOroletoincludethisjob.IfyouhaveaChiefDigitalOfficer, he or she is likely the sponsoring executive foryourinitiative.You’llalsowanttobringinyourCISOorprivacy,securityandcompliancepersonnelasyourdigitaltransformationwillalterandincreaseyourdigitalfootprintandcouldcreateneworadditionalrisksthatyouwillneedtoaddressearlyandoften.You’llneedyourCFOorfinanceteamleadinvolvedthroughoutthe process. And, then there’s the CEO. If your initiative is asmallpilotthatCEOcanprobably justbe informedbut if threeconditions exist you benefit fromCEO sponsorship and activeengagement:1)ifthere’ssignificantriskfortheorganization,2)iftheinitiativeisambitiouscompetitively,and3)ifthereisextensivefinancialcommitment.

IadviseteamsundergoingthiskindofchangemanagementtouseaRACIprocesswhereeachroleisclearlyidentifiedasbeingeitheraccountable, responsible, consulted or informed. Remember,therecanonlybeoneA.Asthisarticle in CIO Magazine states,ARACImatrixisthesimplest,mosteffectivemeansfordefininganddocumentingprojectrolesandresponsibilities.

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Digital Transformation: Seven Strategies to Inform Your Healthcare Initiative 5

Besureyourbrandmessagecomesthrough,butalsodoresearch to understand what each of yourconstituentswant

— 3 —Look for White

Space andDifferentiate

Inadditionto thinkingabout thoseyouwork for, it’s importanttothinkaboutwhatyouofferthatisakeydifferentiator.Thisisalwaysimportantbutiscriticalindigitaltransformationefforts,sothatyourworkwillbefortheoutcomeoroutcomesthataccelerateyour business growth and success. Very early on you’ll wantyourteamtobethinkingabouthowtodifferentiateandhowtostrategicallygainamarketadvantage.It’sagoodtimetogetclearonhowyouwanttopresentyourbrand,yourvalues,yourmissionandwhatcurrentdifferentiatorsarepartofyourholisticmessagethat’sbeingpresenteddigitally. Indigital transformationeffortsit’s important tonotonlybe sureyourexistingbrandmessagecomesthrough,butalsothatyoudoresearchtounderstandwhateach of those constituents we mentioned above want. Whatwouldbeawaytodelightthemandexceedtheirexpectations?Ifyoucancreateanoverlayofhowtodelightendusers/customersbydefiningthewhitespaceyourcompetitorshaven’tuncoveredorcaptured,you’regoingtobewellonthepathtosuccess.

In addition to finding the spaces your competitors are not yetworkinginsuccessfully,alsolookatwheretheyhaveanadvantageoveryou.Whereareareaswhereyouarenotatparity?Takesomestepstolayoutprogramsthatwouldaddresswhatwouldneedtohappentocatchyouupsoyoucanleapahead.Butbeware:thereare times when it may not be strategically important to closethatgap, and in fact, sometimes themost important thinkyoucandecideiswhatyou’renotgoingtodo.Yourteammaydecidetocedeacertainpartofthemarkettoyourcompetitorsandgoaftersomethingelseforbetterdifferentiationorbiggergain.Yourdigitalstrategymustcomplementyourbusinessstrategy.

This article from Becker’s Hospital Reviewisagreatexampleofthis differentiation strategy atwork for the emerging payvidersegment wanting to be more successful with the lucrativeMedicareAdvantagemarket.ThesepayvidersmaydecidenottoallocateresourcestootherbusinessobjectivessothattheycangainshareinthegrowingMedicareAdvantagemarketearlyforastrongholdasthatdemographicboomsinthecomingyears.

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Engagestakeholdersfromthebeginningtoensureyourdigitalstrategyhasacleardirection

— 4 —Getting Buy-in

from Stakeholders

Organizationalsupportforyourinitiativeisimperativeifyouareto succeed. You can’t do thiswork in a silo and then unveil itto your organization. Very early in the processmake sure youhaveclearmessaging throughoutyourorganization that showswhat the initiative is, what it intends to accomplish, and whythis isastrategic imperativefor thehealthandgrowthofyourorganization or company. To get to that point, you’ll succeedfaster if you engage stakeholders from the beginning so theycanprovidetheir feedbackanddirectionalchangesearly intheeditingprocessofyourinitiative.Dobesuretoincludemeaningfulmetrics,andspeaktothecompetitiveedgeyouareworkingtogainsothesenseofurgencyneededisfeltandunderstoodbyall.

WhenIsayarticulateyourstrategicplanasighcanbeheardfromthose who have experienced the lengthy process of writing atraditional strategic plan. You canquickly create an actionable,accountable plan or imperative that allows your team tomovetowardacommongoalbyrevisitingitem#1inthislist…focusonthecustomer.Thinkabout theirexperienceandwhatneeds tochange togetyou fromwhereyouare towhere thecustomerwantsyoutobe.

A group that has done an exemplary job at creating a unifiedapproach to change management is One Medical, completelyrethinking primary care delivery focusing on the relationshipbetween patients and clinicians. One Medical used cloud-based technologies to build their 1Life ecosystem from thegroundup.Through1Life,theydeliversamedayappointments,compassionateproviderson24/7videovisitsandmore,providingalevelofpersonalizedcarethatdelightstoday’sconsumers.

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Transferringbestpracticesintoanorganizationthroughhiringisresultinginaccelerateddigitaltransformation

initiatives

— 5 —Recruit Outside

the Box

Speakingofresourcesandpersonnel,it’sbeenveryinteresting—especiallyinthespaceofdigitaltransformation—toseehowsomehealthcareleadershaveassessedtheirreadinessandrealizedtheyneedexperiencedtalent.Weseeatrendinhealthcareofrecruitinghigh-levelexecutivesfrom industriesoutsideofhealthcarethathavealreadyundergonesuccessfuldigitaltransformation,suchastech,financeorretail.

Wecanseeexamplesof thisatproviders includingProvidenceSt.JosephsandCommonSpirit,orwithpayerssuchasHumana.I’m seeing healthcare leaders being very thoughtful abouttransferringbestpracticesintotheirorganizationsthroughhiring,andtheresultisaccelerateddigitaltransformationinitiatives.

It’s creating a very exciting time for healthcare where we areseeingsomeboldmoves.Butwithboldnesscomesrisk.Someofthebigtechplayershavetriedtomovetheirbusinessmodelsintohealthcareandreallystruggledbecausethenatureandconstructofourindustryissocomplexanduniqueuntoitself.Othersaresucceeding.WeseeleaderslikeAmazon,GoogleandMicrosoftallmakingambitiousinvestmentsinhealthcare.Thegoodnewsiswearenowthroughthefirstgenerationofthatrecruitingoutsidetheboxwave,andwealllearnedfromearlyexperimentsandinsomecases, failures. It’sexcitingtoseetheopportunitytotransformhealthcare successfully in the new decade this new talent isbringingtothetable.

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— 6 —Understand Your

Technology Isn’t All That’s Changing

Thechallengewithdigitaltransformationextendswellbeyondadoptingandmasteringnewtechnologies.Therearesweepingchange management initiatives that have to accompany theculture change that comes with this transformation—andsuccess means a better, stronger, more agile and successfulbusiness—soit’sworththefocus.

Cultural challenges accompanytechnologychangesbecausedigitaltransformationeffortscutacrossorganizationalsilos

Inthecaseofapayer,forexample,youmayfindaninitiativewithamemberorganization,amedicalmanagementorganization,acustomer service organization, a marketing organization andcallcentersworkingonthesameprojects,allwithveryspecificgoalsandmetricsbywhichtheywillbemeasured.Whenyouoptimizewithinthesesilosofdata,youoftenhaven’toptimizedtheexperiencefortheendmember.You’regoingtothinkaboutintegrationacrosssiloswhichcanbechallenging.Fortunately,third party experts like ClearDATA can offer healthcare ITconsultingtoaddressnotonlythetechnologyinfrastructureyouaretryingtotransforminordertoimproveandpersonalizetheenduserexperience,butalsohowtoevolveyourorganizationinternally on that pathway so your people, processes andtechnologytransformsimultaneously.

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Akeencommitmenttocompliancewillbecomeanacceleranttoyourdigitaltransformationratherthanabarrier.IfyouuseathirdpartylikeClearDATAtoautomate,remediateandmonitoryourcompliance, yourteamcanputmoreenergyintothecustomer facing elements of change.

— 7 —Know that

Transformation Requires Trust

Movingawayfromlegacysystemsandgoalsisdisruptiveandyou’llneedtoestablishawaytobuildtrustinadditiontocollaborationand communication. Luckily, getting the privacy, security andcompliancepartofyourworkrighthastheimmediateimpactofbuilding trust because business units within your organization,andevenacrossdifferentcompaniescollaborating,canhavetheassurancethatriskhasbeenreducedwhileproductivityincreases.

AnexampleofsilobustingIamcontinuously impressedwith istheworkRocheDiagnosticshasdonewiththeirNAVIFY™ Tumor Boardsolution.Weallknowsomeonewhohasbeendiagnosedwith cancer and the number one thing they need is faster,betterdiagnosisandtreatmentplans.Yet,thereareradiologists,oncologists,surgeons,andmanyothersinvolvedinreviewingandanalyzingpatientdata.Rochesawtheneedtogettheseteamstogethertogetaholisticviewofthepatientandtoprovidebetterunifiedcare.TheNAVIFYTumorBoardsecurely integratesanddisplaysapatentdashboardforoncologycareteamstoreview,alignanddecideonthebesttreatmentforthepatient.Knowingthe data is secure and the environment ismeeting compliancestandardsbuildstrustinsharingandaggregatingdata.

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Oftentimes I see teams focused so intently on the technologytheyoverlookthehumansideoftheequation,andthatcancreatefailureintheinitiative.Whenoptimizingworkloadsandcreatingnewprocesses,siloshavetobebustedandcrossorganizationalcommunicationwill need to come into play in ways it did notpreviouslyexist.Bridgeshavetobebuilt.ITmindsetsofbuildingone big monolithic system that does this one thing must beabandonedforamindsetofbuildingforthefuture.Howcanyoucreatesystemsthatareaccessible,agileandscalable?Thisiswherethecloudreallyshinesasthereissimplynobetterplacefordigitaltransformation efforts than the cloud with its infinite scaling,automation,andwhenworkingwithahighlyqualifiedprovider,abilitytohavethebestprivacy,securityandcomplianceasyougrowyourbusiness.Havinga24/7visual intoyourcompliancestaturecanbuildtrustamongdepartments,divisionsorbusinessunitsthatmaynothaveworkedascloselytogetherinthepast.

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AveteranhealthITleader,Mr.Whytehasover25yearsexperienceservingthenation’slargestlifescience,provider,payerandhealthsolutionsorganizations.AtClearDATA,heisresponsiblefordrivinginnovation,growthandstrategicrelationships.Additionally,Scottactivelyadvisesearlystagehealthtechnologycompaniesandprivateequityinvestorsonhealthtechnology.

PriortojoiningClearDATA,hewasanITVicePresidentatDignityHealth,thefifthlargestnotforprofithospitalsysteminthenationwithannualrevenueover$12billion.Heoversaw$500+millioninclinicalsystemsbudgetforover40hospitals;hisresponsibilitiesincludedEMRs,ClinicalIntegration/AccountableCareOrganizations,PopulationHealthARRA,HealthCareReform,PatientConnectivityandPortalStrategies,Imaging,Telemedicine,WorkflowandAnalyticsandHealthInformationExchanges(HIEs).

PriortojoiningDignityHealthin2005,Mr.WhytewasVicePresidentandCIOatthenationallyrankedPhoenixChildren’sHospital.Previouslyhespentover17yearshelpingbuildthehealthcarepracticesatEY,SiemensHealthcareandCapgemini(practicenowpartofAccenture)servinghospitals,healthinsurersandlifesciencescompanies.Thisincludedbuildingahealthconsultingpracticeofover70professionals.Hehasspokennationallyontopicsincludingaccountablecare,cloud,healthinformationexchanges,portalsandgenomics.

Mr.WhytespokeattheONCAnnualConference,testifiedbeforetheONCHITPolicyCommitteeandtheONCPrivacy&SecurityTigerTeam,andheservedastheCo-ChairoftheCaliforniastateHIE,CaleConnect,TechnologyAdvisoryGroup(TAG).HefoundedandservedasCo-ChairmanoftheHL7Clinical Genomics Special Interest Group which is working withaninternationalteamofphysicians,biopharmaceuticalspecialists,bioinformaticsspecialistsandregulatorstodevelopaninternationaldataexchangestandardforgeneticinformation.

SCOTT WHYTEChief Strategy OfficerClearDATA

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