IT Strategies for an Uncertain Future -
Embracing Change and InnovationScott Lundstrom, GVP
IDC Health Insights
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Who is IDC Health Insights A global provider of research-based advisory
and consulting services focused on market and
technology developments impacting the global
health industry
Part of IDC – the premier global provider of
market intelligence and advisory services for the
information technology, telecommunications, and
consumer technology markets
Research led by a global team of 13 full-time
analysts with deep health industry experience,
and supported by over 1,000 IDC analysts
covering over 110 countries
IDC Health Insights serves a diverse and
growing global client base, including executives in
the payer, provider, and life science industries
and suppliers in the healthcare and life science
industries
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Health Industry Transformation
More than a small change or a bump in
the road
A significant change in the overall
marketplace
Assets, partnerships, products, and
platforms are all in flux with volatile
value proposition
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Creates opportunities and risks for all market entrants and participants
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Elements of Transformation
Innovation
Business model change
Changes in channels
Changes in regulations
Changes in buyer behavior and preferences
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These elements often come together, transforming multiple aspects of an
industry at once
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Industry Transformation on the 3rd Platform
Omni – Channel becomes real
Everything as a service
Customers become suppliers in the mid
market
Internet of Things
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IT Assets Matter LessIT Agility Matters More
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Technology Fueled Business Transformation Shifts Technology Buying Centers
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4 Pillars in Technical Innovation in Health
Workflow / Alerts / Notifications / Unified Communication
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The Need for Agility On-Demand Turns IT Organizations Inside Out
A shrinking set of “core” competencies are resulting in
expanded BP/IT outsourcing
Public, private and hybrid cloud services have matured
Creating value out of information
is the new IT mantra.
New collaborative business models
are driving IT agility to meet
aggressive transformation demands.
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Technology Buying Centers Will Permanently Shift
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n=1227Source: IDC Business Technology Study, May 2013
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More sourcing/less making– Hybrid dev ops
– Contracting for risk and agility
Analytics as architecture– Data management
– Governance
Commercialization – Information / Process as a
service
– Joint ventures, partnerships,
networks
Organizational Changes
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40%
60%
Building /implementing ITSystems
Governing andManaging ITSystems
n=131Source: IDC's 2013 IT Staffing Survey - Jun 2013
59%
41%
Technical Skillsare PrimarySkill Set
Business Skillsare PrimarySkillset
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Line of Business Will Outpace Spend by IT Org.US Enterprise IT Spend by Functional Area
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8.6%
6.4%
5.8%
6.4%
10.4%
5.3%
8.5%
6.3%
6.9%
0%
4%
8%
12%
0% 20% 40% 60%
% Share of Spend, 2014
Security and Risk
Engineering, Architecture & Research
Other Horizontal Operations
Accounting / Finance / Billing
Marketing
Sales
Customer Service
Supply Chain Management
Industry Specific Operations
IT
2013 -
201
4 G
row
th
IT
Functional
Spending 2.2%
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Data-Centric Platforms Emerging
of New Cloud Apps Will Be Big Data-Intensive
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Industry Platforms Expanding
The Number of Industry Platforms
Will Expand to
by 2016
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ExpandingIndustry Platforms
Industry Platforms Will Disrupt
of the Top 20 Market Leaders
in Most Industries by 2018
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New “Killer Apps” Proliferating
Explosion of New Cloud Apps
in 2013-2017
* Big Data-Intensive
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Cloud First Lives Up to the Hype
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IDC CloudTrack, October 2013n=177 for manufacturingn=153 for healthcaren=81 for governmentn=80 for bankingN=66 for retailN=23 for utilities
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Health Cloud Adoption
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Big Data Healthcare Use Cases
Waste and abuse
Outcomes
Technology
Patient engagement
Fraud detection
Chronic disease
Avoidable deathsRegulatory compliance
Quality of care
Medical research
Drug discovery
Clinical trials
Personalized medicine
Environmental impact
Re-admissions
Translational research
Public health
Adverse health events
Patient compliance
Source: IDC, 2012.
Acti
vit
y
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IDC’s Mobile Maturity Model:5 Stages of Progress
Ad hoc
Opportunistic
Repeatable
Managed
Optimized
Prove value of mobility with proof of concept or pilot projects
Reap early stage benefits and increase constituent buy-in with initial mobility implementations
Improve cost/benefit performance of continued implementations with integrated capabilities in mobility
Drive competitive differentiation with enterprise-wide governance and management in mobility
Sustain leveraged competitive advantage with continuous improvement and innovation in mobility
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Driving Towards Health Systems Reform
Triple Aim Health Reform
5 Year Horizon
Value of Transformation
Patient Experience
Cost
Population Health
EHRHIE
Compliance
Competitive Advantage
Value-BasedPayments
Disease Management
Risk Mgt
Integrated Care + Health / Wellness
Sustainable care
Volume-based Payments
Predictive
Reactive
Prescriptive
At Risk Contracting
Population Health
C
Care Coordination
Now
Case Management
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Essential Guidance
Understand that quality mandates force a
different operating model on IT.
Agility matters more – Assets matter less.
Integration of clinical, operational, and
financial data becomes IT’s biggest
challenge.
Governance and Data Management are
more important than you think.
Non-traditional thinking will be rewarded.
Evaluate new partnering opportunities.
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Questions?
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Scott LundstromGroup Vice President & General ManagerIDC Health Insights, IDC Government Insights, IDC Financial Insights