Transcript
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    H.I.S.-tory by Vince Ciotti

    2011 H.I.S. Professionals, LLC

    Episode # 38:

    The MicroRevolution

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    Micros Go Macro

    Hope you remember this picture from our introduction last year,

    about how the 4 epochs of computing in healthcare overlapped:

    None totally replacedthe other, they just rose & fell in terms

    of popularity (the new thing) and market share over time.

    60s 70s 80s 90s

    Mainframes(eg: IBM, BUNCH)

    ++++ +++ ++ +

    Shared(eg: Blues, State Assoc,

    Commercial Firms)

    ++ ++++ +++ ++

    Minicomputers(eg: DEC, DG, HP)

    + +++ ++++ +++

    Microcomputers(eg: Apple, IBM)

    + ++ +++

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    Early Microcomputer Development

    The roots of microcomputers go back surprisingly far in the 1970s:

    1971 = first ads for Intel 4004 chip

    1972 =MITS offers Altair 8800 kit

    1973 = Xeroxs PARC Alto project

    1974 = Simonyis Word Processing 1975 =Microsofts BASIC for the Altair

    1976 = Apple introduces the Apple 1

    1979 = VisiCalc spreadsheet for Apple II

    1981 = IBM legitimizesthe PC

    TI 99-4 Tandy Radio ShackTRS 80

    Altair 8800

    IMSAI 8080

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    Very PersonalComputers!

    Micros were verypersonal, as these shots of my first one shows:

    1981= Our Texas Instruments 994A

    Used an old TV as a CRT

    Stored data on an audio cassette

    Started my sons game addiction!

    - 1984 =My brother Dave got hooked too, and

    showed how rapidly PCs became a business:

    He later programmed an Apple II PC,

    To weigh eggs for farmers in the Midwest,

    That sorted eggs into grade A, B & C,

    Which they used for about 15 years!

    Hes a PC maven at Trenton State today.

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    PCs in Hospitals PC spread into healthcare started in the late 70s & early 80s:

    Individuals in Finance and ancillary departments startedusing them topersonalize the data they could only obtain

    from an HIS system in a fixed green bar paper printout.

    Using breakthrough software like VisiCalc, the worlds first

    spreadsheet, written for the Apple II in 1979

    (Microsofts Excel came much later 1985 for the

    AppleMacintosh, 1987 for Windows on IBMPCs)

    HIS Vendors jumped on the PC bandwagon early too:

    George Weinberger enthralled my sales team at HIS Inc. in

    early 1982, taking an IBMPC apart in front of our eyes.

    We then bought one for each salesman to show demo

    screens of our non-existent IBMmainframe HIS system.

    The ultimate way to sell vision-ware: See!

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    Pioneering HospitalPC Product The first pure PC-based product I remember for hospitals was

    written by an ex-SMS salesman named Tom Boyle circa 1980. Tom was a super-bright sales rep (as all SMS reps were!), who

    targeted the dreaded SSA 2552 cost report step-down,

    Which you may remember was handled by a terribly user-

    unfriendly SHAS module called CAP (Cost Allocation Program). It required labyrinthine calculations to allocate the costs from

    non-revenue producing departments to revenue depts, based

    on such statistics as square footage, # of employees, etc.

    T

    om left SM

    S to develop & sell a cost report system that ran on aPC and did this horrendous math for CFOs in the blink of an eye.

    I tried to talk McAuto into buying it in 1980, but they balked,

    so Tom sold it to Coopers & Lybrand who sold hundreds!

    But what about PCs and mainstream HIS systems? Read on

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    The Hardware Market

    A major thing holding back PCs from the HIS

    world was unknown names like Apple

    IBMs 1981 introduction of their PC openedthe door now PCs were legitimate, and

    hundreds of companies jumped on the Big

    Blue bandwagon besides pioneers like Tom.

    How quickly did IBMdominate the market?

    Check out this next slide from SIDAs Guide

    You should remember by now how much IBM

    dominated the HIS hardware market back inthe 70s & 80s, when PCs were introduced.

    On the left is a a chart based on figures from

    Sheldon Dorenfests Guide, the bible for

    HIS market statistics back then, which

    showed how IBM totally trumped the BUNCH

    group.

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    Taking a Byte out of Apple This graph illustrates how quickly IBM took over the PCmarket

    from early leaders like Apple & Radio Shack, based on a survey ofSheldon Dorenfests 250 sample hospitals in his 1986 Guide

    0

    10

    20

    30

    40

    50

    60

    70

    1981 1982 1983 1984

    % ofPCs in 250 Sample Hospitals by Brand

    IBM

    Apple

    Burroughs

    DEC

    Wang

    Radio Shack

    Compaq

    HP

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    Sweet Revenge! Just in case youre an avid Apple fan like me, however, the chart

    below shows how over time the computer market reversed itself: IBMeventually faltered to where in 1993 they posted their first

    quarterly loss in the 100-year history of this computing giant.

    They have since shifted much of their revenue from hardware

    to services (read: software, outsourcing & consulting). Apple too faltered after both Steves (Jobs & Wozniak) left in the

    80s, losing its consumer-centric focus until Jobs returned and

    started the i-Revolution.

    Per the chart on the right, by

    2011 Apples stock marketcapitalization not only

    exceeded Microsoft, but even

    overtook its old rival IBM. For

    a while in 2011, its cap evenexceeded Exxon-Mobils!

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    EarlyMicros in HIS Systems

    Total HIS

    A vendor with a complete

    HIS on embryonic IBMPCs

    in the 80s running on DOS!

    Bedside

    -Micro systems broke down

    the doors to patient rooms,

    paving the way for E.H.R.s

    During the 80s, literally hundreds of companies developed PC-

    based systems, mainly for ancillary department systems such as:- Duponts Trinity RIS - Citations DOS/Novell-based LIS.

    In the next episodes on micros, were going to dig deeper into

    two uses of PCs that heavily impacted the HIS industry:


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