disruptive technologies and consumer focus drive innovation and transformation in healthcare it

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TECHNOLOGY BUSINESS RESEARCH, INC.

Disruptive technologies and consumer-centrism drive innovation and transformation in healthcare ITInsights from TBR’s 4Q14 Healthcare IT Services Benchmark

June 9, 2015

TBR

2 TBR HITS Benchmark Webinar | 6.9.15 | www.tbri.com | ©2015 Technology Business Research Inc.

Quarterly Healthcare IT Services Benchmark Readout: Presenter

John CaucisSenior Analyst and Practice Manager, Health and Public Sector 14 years of experience

Email: [email protected]: @jcaucistbr

Today’s presenter

mailto:[email protected]

TBR


TBR’s HITS reports deliver unique insight and value through in-depth analysis in a concise, consumable format

TBR Healthcare IT Services Overview

Clients gain advantages and a better understanding of revenue opportunities through our reports and their personal relationships with TBR

• TBR covers 20 vendors continually in its Healthcare IT Services Benchmark.• We publish five reports semiannually focused on the healthcare IT services (HITS) businesses of

Accenture, CSC, Dell Services, HP Services and IBM Global Services.• The healthcare activities of CGI, Cognizant, Deloitte Consulting, General Dynamics, HCL, Infosys,

Leidos and Xerox are covered in TBR’s IT services quarterly and semiannual reports.• TBR’s Healthcare IT Services Benchmark includes the activities of Allscripts, Cerner, CPSI, Epic, Harris,

McKesson and NextGen.o TBR reports are unique due to their deep, holistic analysis of leading vendor businesses.o Financial modeling and TBR insights help customers build a better understanding of vendor

business models.o TBR reports and webinars are responsive to client timelines, clear and concise, and provide

insights across multiple layers of an organization.o TBR’s strategic assessment provides an impartial reality check on how vendors are performing in

their strategic objectives and the overall market.

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Quarterly Healthcare IT Services Benchmark Readout: Agenda and Format

Today’s Agenda

1. Key fiscal results from the 4Q14 benchmark

2. Vendor investments and strategic actions

3. Outlook for 2015

4. Q&A

TBR


Quarterly Healthcare IT Services Benchmark Research Highlights

HITS Benchmark Highlights for 4Q14

HITS investment has slowed, but IT services vendors continue to target the health vertical as a strategic growth market

SOURCE: HTTPS://PBS.TWIMG.COM/PROFILE_IMAGES/3383727639/6E3F0F9491F125D28D9CE5EF7E3EE924.JPEG

SOURCE: HTTP://HELENMACMILLAN.COM/WP-CONTENT/UPLOADS/2013/05/OPPORTUNITY.JPG

SOURCE: HTTPS://T1.FTCDN.NET/JPG/00/73/45/50/240_F_73455041_RUPDONQGRVPADKWIGQKBZTLQ419GDYOK.JPG

Slowing HITS growth has not deterred vendor investments.

EHR market maturation restrained HITS growth in 2014, but opportunities remain across global HITS markets.

Vendors are positioned for accelerating growth in 2015 & 2016.

TBR


The deceleration in the electronic health record (EHR) market caused growth to contract throughout 2014, but demand remains buoyed by the emerging markets for EHR swaps, predictive analytics, mobility and security

Fewer greenfield EHR opportunities and an increased focus on reducing IT costs led to a deceleration in HITS revenue growth in 4Q14


TBR


HITS Benchmark Data for 4Q14

Margin Leaders

Growth Leaders

Outperformers leveraged their analytics and consulting solutions to drive growth, while laggards were pressured by declining public sector spend


Outperformers

Laggards

TBR


Lower public sector spend and a maturing EHR market restrain growth in many regions; APAC is poised for more aggressive growth in 2015


Geographic HITS Trends for 4Q14

SOURCE: HTTP://WWW.ANSELLEUROPE.COM/ANSELL/MEDIA/IMAGES_EN/EMEA.GIF

The global HITS market is on the cusp of a new “post-EHR” era.

Growth slowed in EMEA, but EMEA still leads all regions.

Less developed markets restrain APAC growth, but the tide is turning.

SOURCE: HTTP://GOO.GL/CQM1OH

SOURCE: HTTP://WWW.INVENTIVETRAVELMICE.COM/IMG/IMAGES/EMEA-APAC.JPG

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HITS vendors leverage R&D, M&A and new alliances to expand in growing regions and emerging service areas






TBR


R&D increasingly underpins HITS vendors’ efforts to expand offerings and enhance portfolio relevance


HITS Vendor Investments

Allscripts

$500

M+ in R&D since 2013

Accenture

Life Sciences Cloud for R&D

R&D

TBR


With demand for analytics and interoperability on the rise, HITS vendors form alliances to help clients meet Meaningful Use standards


HITS Vendors: Key Alliances and Partnerships in 4Q14

Airstrip, Apple and CSC: Mobility solutions

Express Scripts: Electronic prior authorization

Merge Healthcare: Interoperability

Allscripts

IBM

NextGen

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Growth will begin to rebound in 2015 as the volume of work increases in EHR upgrades, security, analytics and RCM






TBR


Strategic acquisitions in 2014, Cognizant-TriZetto and Cerner-Siemens, will also buoy average HITS market growth in 2015


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Predictive analytics, cloud, cyber, EHR replacement and RCM will be the key opportunities for HITS vendors in 2015 and 2016


HITS Trends

SOURCE: HTTP://GOO.GL/7WM6SG

SOURCE: HTTP://GOO.GL/XOQ05U

SOURCE: HTTP://GOO.GL/BLNJHM

HITS vendors will continue to increase R&D spending on next-generation healthcare IT solutions that incorporate cloud, analytics, security and mobility.

EHR replacement and revenue cycle management will increase in prominence as growth opportunities for midmarket and large global HITS vendors.

Predictive analytics will be increasingly critical to improving patient outcomes and reduced costs.

TBR


Questions?

Quarterly Healthcare IT Services Benchmark: Questions

TBR


James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166

Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research

Quarterly Healthcare IT Services Benchmark: Contact Information

John CaucisSenior Analyst and Practice Manager, Health and Public Sector 14 years of experience

Email: [email protected]: @jcaucistbrTelephone: 603.758.1836


https://twitter.com/TBRinc

http://www.slideshare.net/TBR_Market_Insight

http://www.youtube.com/user/TBRIChannel

https://www.linkedin.com/company/technology-business-research


TBR


PSP Syndicated Research CoverageIT Services Vendors Public Sector Vendors Benchmarks

(Benchmark XLS data also available)

• Accenture• Atos• Capgemini• CGI*• Cisco• Cognizant• CSC• Dell• EMC Services*• Fujitsu• HCL Technologies• HP• IBM Global Services• Infosys• Tata Consultancy Services• T-Systems• Unisys• Wipro IT Services• Xerox

• Booz Allen Hamilton*• CACI International*• General Dynamics IS&T*• L-3 Communications*• Leidos*• Lockheed Martin IS&GS*• ManTech*• Northrop Grumman IS&TS*• Raytheon Intelligence, Information

& Services*• SAIC*

• Global Delivery Benchmark* • Healthcare IT Services Vendor

Benchmark• IT Services Vendor Benchmark • Management Consulting Benchmark*• Public Sector IT Services Benchmark• BI Services Benchmark*• Ad Tech Vendor Benchmark*• Digital Marketing Services Vendor

Benchmark*

Management Consulting Vendors

• Bain & Company*• Boston Consulting Group*• Deloitte Consulting*• McKinsey & Co.*• PwC*

Healthcare IT Services Vendors

• Accenture Healthcare IT Services*• CSC Healthcare IT Services*• Dell Healthcare IT Services*• HP Healthcare IT Services*• IBM Healthcare IT Services*

TBR Professional Services Syndicated Coverage

*Semiannual publication

About Us

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators.

Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.

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