Data Synchronization in Healthcare: A Solvable Problem
AN EXECUTIVE PRIMER
by William L. Rosenfeld & John L. Stelzer
EXECUTIVE SUMMARY
Leaders in the healthcare supply chain are rapidly coming to the same conclusion as those in a growing number of other industries. That is, inconsistent inaccurate business information within and between companies directly undermines critical business objectives (e.g., revenue, profit, time to market, customer satisfaction, etc.). Supply chain masters the likes of Wal-Mart, Walgreen, CVS, Rite Aid, Eckerd Drug, Kroger, Albertsons, Johnson and
Johnson, Pfizer, Kimberly Clark, Wyeth Health, Procter and Gamble, and thousands of others are achieving new levels of business efficiency and effectiveness.
The secret to their success is rooted in something called global data synchronization. By establishing a foundation of accurate, consistent business information within their organizations and between themselves and others with which they conduct business, these companies are posting heretofore unheard of performance improvements. What is, perhaps, even more important, though, is the fact that this foundation of reliable business information is driving enormous upside potential for process streamlining and automation to further improve business performance.
What was only a promising vision as recently as 1999 has since become a proven reality with documented results, standardized methodologies, and literally thousands of companies actively practicing data synchronization worldwide. In fact, the number of participating companies went from a mere 25 in January of 2002 to 2,607 in January of 2004. By the beginning of 2005, that number had risen to include more than 4,000 U.S. suppliers and retailers.
But, this is not just a North American phenomenon. As of this writing, 23 other countries - beyond the U.S. and Canada - have formal data synchronization initiatives in place. The industries/communities involved span a wide variety including - but certainly not limited to - retail mass merchandising, food/CPG, chain drug, direct store delivery, apparel, hardlines/home improvement, housewares, office products, electrical, and automotive aftermarket. In the face of this global adoption of data synchronization as a foundational element of effective business, many other industries - including healthcare - are launching pilots to perfect the process in preparation for rolling out the initiative to their entire community.
At long last, with this many industry sectors getting on board and successfully synchronizing their business information, it's no longer a question of whether it can be done, whether it will work, or whether it's worth the investment to do it. Instead, the open question is how long it will take for those industries that still haven't addressed their information integrity problems to begin to do so.
The great news for the healthcare industry is that visionary representatives from all facets of the industry's supply chain have been working to fashion healthcare-specific standards to accommodate this industry's unique needs and challenges. The stage is finally set for medical, surgical, pharmaceutical, and all other healthcare supply chain operatives to benefit from the litany of advantages that come from conducting business on a foundation of "clean" information.
With numerous other industries - that are well past the point of wondering whether data sync might be beneficial - busy posting impressive results from global data synchronization, it's high time for the healthcare industry to step up to the plate and begin to leverage this powerful tool to drive down costs, increase efficiency, and raise the quality of healthcare. With the leaders in the healthcare industry having made such significant progress in defining standardized approaches for synchronizing business information in the healthcare supply chain, there's never been a better time to get involved to ensure that your company doesn't fall woefully behind the rest of the industry in this pivotal initiative.
The industry has now reached the point where it's critical for industry executives to enable their organizations to benefit from this significant progress by focusing the most appropriate personnel on achieving the following goals:
The secret to their success is rooted in something called global data synchronization. By establishing a foundation of accurate, consistent business information within their organizations and between themselves and others with which they conduct business, these companies are posting heretofore unheard of performance improvements. What is, perhaps, even more important, though, is the fact that this foundation of reliable business information is driving enormous upside potential for process streamlining and automation to further improve business performance.
What was only a promising vision as recently as 1999 has since become a proven reality with documented results, standardized methodologies, and literally thousands of companies actively practicing data synchronization worldwide. In fact, the number of participating companies went from a mere 25 in January of 2002 to 2,607 in January of 2004. By the beginning of 2005, that number had risen to include more than 4,000 U.S. suppliers and retailers.
But, this is not just a North American phenomenon. As of this writing, 23 other countries - beyond the U.S. and Canada - have formal data synchronization initiatives in place. The industries/communities involved span a wide variety including - but certainly not limited to - retail mass merchandising, food/CPG, chain drug, direct store delivery, apparel, hardlines/home improvement, housewares, office products, electrical, and automotive aftermarket. In the face of this global adoption of data synchronization as a foundational element of effective business, many other industries - including healthcare - are launching pilots to perfect the process in preparation for rolling out the initiative to their entire community.
At long last, with this many industry sectors getting on board and successfully synchronizing their business information, it's no longer a question of whether it can be done, whether it will work, or whether it's worth the investment to do it. Instead, the open question is how long it will take for those industries that still haven't addressed their information integrity problems to begin to do so.
The great news for the healthcare industry is that visionary representatives from all facets of the industry's supply chain have been working to fashion healthcare-specific standards to accommodate this industry's unique needs and challenges. The stage is finally set for medical, surgical, pharmaceutical, and all other healthcare supply chain operatives to benefit from the litany of advantages that come from conducting business on a foundation of "clean" information.
With numerous other industries - that are well past the point of wondering whether data sync might be beneficial - busy posting impressive results from global data synchronization, it's high time for the healthcare industry to step up to the plate and begin to leverage this powerful tool to drive down costs, increase efficiency, and raise the quality of healthcare. With the leaders in the healthcare industry having made such significant progress in defining standardized approaches for synchronizing business information in the healthcare supply chain, there's never been a better time to get involved to ensure that your company doesn't fall woefully behind the rest of the industry in this pivotal initiative.
The industry has now reached the point where it's critical for industry executives to enable their organizations to benefit from this significant progress by focusing the most appropriate personnel on achieving the following goals:
- Contribute to industry standards to ensure their organization's best interests are accommodated in those standards.
- Get in sync internally throughout the organization (Internal Synchronization).
- Get in sync externally with partners (External Synchronization).
- Stay in sync internally and with partners (Ongoing Synchronization).
The need is clear. Bad data not only adds cost to all members of the healthcare supply chain and makes it impossible to reliably track clinical outcomes (thus undermining patient welfare), it unnecessarily taxes valuable limited medical resources who could otherwise be administering to their patients (again, undermining patient welfare). So, as citizens, each of us pays the price for bad data in the healthcare supply chain through increased healthcare costs, increased taxes, undermined patient safety, and distractions from patient care.
Fortunately, the standards for synchronizing critical business information are established and in use worldwide. The technology has evolved to allow every company to benefit. And, the documented savings shown by those who have already begun synchronizing their information are undeniable. "The numbers behind this are so compelling that it is frightening to think we would be reticent to move forward. If we do not, we are doing an injustice to our customers, our shareholders, ourselves, and our associates," says Bill Grize, president and CEO, Ahold U.S.A., Inc. Now is the time to address the business and ethical imperative of reducing healthcare costs by establishing accurate, consistent business information across the entire healthcare community.
This realization begins to highlight a more provincial area of business concern related to data synchronization. Consider the fact that everything a company tries to do with information is directly dependent on the accuracy and consistency of that information within that company and across all companies with which that company does business. As such, any information-based healthcare industry initiative-be it RFID, the electronic health record, etc.-is dependent on accurate consistent product information throughout the entire healthcare community. Fail to establish a foundation of information integrity throughout the healthcare community and any information-based industry initiatives will fail, as well.
As if all of this weren't enough, there's a competitive aspect to data synchronization, as well. Trying to compete without synchronized data as your business foundation is like trying to run a marathon with only one shoe. You might be able to look good in the early going, but lack of preparation will become painfully evident well before the end of the race. In healthcare, the race for industry-wide synchronized information has begun. The only remaining question is where you'll choose to be: in the race, in the locker room suiting up, or in the stands watching it pass you by.
Data synchronization is a problem that is, indeed, solvable. The status quo is clearly unacceptable. And, the benefits to be had from synchronized data completely dwarf the effort required to achieve them. As Victor Hugo put it, "There's nothing so powerful as an idea whose time has come." All that is needed for this industry to effectively address data synchronization once and for all is at hand. It's time for the healthcare community to step forward and heal itself. After all, neither the problem nor the pressure to solve it will go away.
Fortunately, the standards for synchronizing critical business information are established and in use worldwide. The technology has evolved to allow every company to benefit. And, the documented savings shown by those who have already begun synchronizing their information are undeniable. "The numbers behind this are so compelling that it is frightening to think we would be reticent to move forward. If we do not, we are doing an injustice to our customers, our shareholders, ourselves, and our associates," says Bill Grize, president and CEO, Ahold U.S.A., Inc. Now is the time to address the business and ethical imperative of reducing healthcare costs by establishing accurate, consistent business information across the entire healthcare community.
This realization begins to highlight a more provincial area of business concern related to data synchronization. Consider the fact that everything a company tries to do with information is directly dependent on the accuracy and consistency of that information within that company and across all companies with which that company does business. As such, any information-based healthcare industry initiative-be it RFID, the electronic health record, etc.-is dependent on accurate consistent product information throughout the entire healthcare community. Fail to establish a foundation of information integrity throughout the healthcare community and any information-based industry initiatives will fail, as well.
As if all of this weren't enough, there's a competitive aspect to data synchronization, as well. Trying to compete without synchronized data as your business foundation is like trying to run a marathon with only one shoe. You might be able to look good in the early going, but lack of preparation will become painfully evident well before the end of the race. In healthcare, the race for industry-wide synchronized information has begun. The only remaining question is where you'll choose to be: in the race, in the locker room suiting up, or in the stands watching it pass you by.
Data synchronization is a problem that is, indeed, solvable. The status quo is clearly unacceptable. And, the benefits to be had from synchronized data completely dwarf the effort required to achieve them. As Victor Hugo put it, "There's nothing so powerful as an idea whose time has come." All that is needed for this industry to effectively address data synchronization once and for all is at hand. It's time for the healthcare community to step forward and heal itself. After all, neither the problem nor the pressure to solve it will go away.
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