2 min read

eProcurement – What is it? What’s in it for the Buyer? (Part I)

By Rusty Zosel on Thu, Aug 11, 2011 @ 09:30 AM

Introduction

iStock_000001263418XSmall-resized-600In past blogs I’ve referred to Patronizing Partnership as the highest level of eProcurement Evolution, a Buyer/Vendor relationship marked by trust, cooperation, and mutual support. Let’s discuss this in more practical terms which go beyond the platitudes and attitudes, first by defining what is eProcurement Evolution, specifically, complete procurement automation. (In Part II, I’ll illustrate the benefits of eProcurement with a plausible ROI scenario.)

The Automated Procurement Process – removing the barriers to communication

Let’s start with that which lies at the heart of eProcurement Evolution – open communication between Buyers and Vendors facilitated by the automated procurement process. What are the essential features of a fully-functioning automated procurement process?

The automated procurement process essentially is comprised of the following three elements:

  • A user interface to support configuration of custom business rules, vendor management, and item management
  • An automated exchange of transactions with vendors and buyer systems
  • Application logic to check all configuration and business rules against vendor transactions and buyer systems

For the user of Procurement Partners, transaction automation embraces:

  • A customer-specific and customized application access point for all users
  • A corporate access point for enterprise customers, enabling corporate staff to view procurement activity at all levels of the organization from the corporate level to the individual facility
  • Order approval workflow and tracking
  • Electronic Transactions: purchase orders, acknowledgements, confirmations, updates and invoices
  • Contract and item maintenance with vendors

Automated exchange of transactions with vendor and buyer systems insures an open two-way conversation, including:

  • An online communication protocol with vendors and service providers
  • Custom integration into vendor order processing and item database systems and buyer ERP/accounting systems using their best practices
  • Transaction processing with update/change notifications
  • Electronic invoicing for all types of invoices
  • Invoice approval workflow and tracking
  • Contract price and freight reconciliation
  • Custom alerts at multiple steps in the procurement process

Application logic is the “secret sauce” that really makes procurement automation work.  Here are a few of the ingredients:

  • Customized business logic
  • A vendor product catalog with content maintenance capability
  • Contracted item maintenance, analysis, and reporting
  • Enterprise user administration and management
  • Price reconciliation for contracted items
  • General ledger structure, assignment, and processing support
  • Budget support, tracking, and alerts
  • Intelligent reporting

Conclusion

The two major benefits that Buyers experience from a fully-automated procurement system include:

  • Improved contract compliance – getting the consistent value and price they negotiated with their Vendors.
  • A tangible ROI – leveraging the contract compliance process for real savings. This is what I’ll address in the next blog

Question: What features would you like to see in a fully-automated procurement process?

Topics: order approval workflow business commerce evolution eProcurement ROI automated procurement process partnership
3 min read

ITAM - What it is and why should providers care

By Prime Care Tech Marketing on Tue, Jul 19, 2011 @ 02:59 PM

ITAM covers all IT assetsPersonal productivity devices, such as desktops, laptops, smartphones, and tablet PCs, and the data they generate and retrieve have contributed to a wealth of information and…risks for Long Term Care. If Information Technology (IT) managers are unable to monitor, manage, and protect productivity devices, software distribution, and how information is exchanged and filed, providers run a considerable risk of data loss, non-compliance, and potentially fatally damaging their operations. Implementing sound hardware and data management practices is the responsibility of all providers. IT Asset Management (ITAM) embraces the technology and best practices that can help IT Managers with this critical task.

What is asset management?

ITAM encompasses mostly the hardware components of the IT infrastructure and its interconnected computers - in other words, everything that supports the flow and processing of information. Consider, for example, data and computers. What IT assets do you have? Where are they? Who has access to them and who is using them? What is the lifecycle of each? What are the procedures for safeguarding each? What is the most cost-efficient method for tracking and maintaining them? One way to look at this challenge is to consider that IT is a business within a business. ITAM is the specific method and tools you employ to manage that business. It is 80% systems and 20% tools.

Why ITAM?

A few years ago, Patricia Adams, Research Director, Gartner Research, identified five drivers toward IT asset management:

  • Software license compliance. Most vendor contracts authorize compliance audits. The Business Software Alliance (BSA) is now offering rewards of up to $200,000 for qualified piracy leads.
  • ITIL (IT Infrastructure Libraries). ITIL outlines an extensive set of management procedures that are intended to support businesses in achieving both quality and value, in a financial sense, in IT operations.
  • Cost control. This includes the cost of IT labor, purchasing, and managing device complexity.
  • Asset security. This involves monitoring and managing asset displacement and network assets.
  • Operational efficiency. With ITAM, most facets of your business run more smoothly.
    Neglecting ITAM can be risky?

In the absence of ITAM, LTC providers are at risk. They may suffer unauthorized access to or the loss or corruption of critical business information and EPHI (electronic protected health information). The impact of such could include liability risks, poor public relations, including diminished shareholder value and goodwill, exposure to and during law suits, and a significant disruption in the conduct of business.

A disruption in business, for instance, will likely involve non-productive time, even downtime resulting from non- or mal-functioning equipment, critical documentation missed or erroneously recorded, missing files, emails not received, and an inability to send MDS or other claims. Providers may also experience loss of continuity in the form of missed deadlines or poor communications. By not managing computing devices, users may download unauthorized applications or updates which can introduce software incompatibilities, even viruses or other malware.

The risks can be costly

Providers also risk increased or unnecessary costs. Malfunctioning IT assets mean upset users; upset users mean increased support calls, which can be costly in terms of needed help desk resources to handle such calls. In the absence of ITAM, providers may have to unnecessarily search out and recover lost data/files. In recovering lost files, providers experience down time and fees associated with archived data retrieval, assuming the data/files can be found. Additionally, lost/misplaced inventory, unnecessary repairs, or necessary repairs not addressed, can also disrupt the day-to-day flow of business.
Other risks include exposure to software licensure and regulatory non-compliance which may result in significant fines/penalties.

Conclusion

An organized and well executed ITAM program is a sound business investment – a practice that should not be ignored.

Question

  • In the absence of ITAM, what other risks do businesses/providers run?
  • What have you implemented to manage your IT assets?

Next Time

In future blogs we’ll discuss ITAM best practices and tools available today through the cloud. Until then, write, if you get a round to IT.

Topics: IT infrastructure computer protection IT asset management ITAM
3 min read

5 Tactics to Becoming the Fittest in the eCommerce Evolution

By Rusty Zosel on Mon, Jul 11, 2011 @ 11:00 AM

Introduction – A review

HiRes-resized-600Last time, when I addressed the theme of eCommerce evolution, I wrote that for eCommerce to evolve Buyers and Vendors alike must trust each other through communication and consistency in services, processes, and meeting commitments. And they must trust and implement technologies and innovations as well as further refine their practices and reach their goals.

Taking this metaphor one step further, evolution implies the survival of the fittest - a natural selection of those who subscribe to the benefits of eCommerce and understand and implement the steps necessary to fully participate.

eProcurement – What’s in a name?

Going forward, I’ll take the license to substitute the term, “eProcurement,” in preference to “eCommerce.” eProcurement, “the business-to-business sale and purchase of goods and services[1],” helps businesses simplify purchasing and reduce costs associated with operations and transactions processing. Since today’s Vendors and Buyers are able to more readily and openly communicate, eProcurement facilitates negotiating, contract and formulary management, order processing, spend management, and reporting.

eProcurement Evolution - Survival of the fittest

Back to the topic at hand: To fully reap the benefits of eProcurement, Vendors and Buyers alike will have to emerge out of the primordial soup of out-dated procurement practices. (Please refer to the blog entitled, What is the ecommerce evolution?, for more details.) In my opinion, the fittest will survive this natural selection, because they embrace the following five survival tactics.

Five Survival Tactics

Survival Tactic #1: A commitment to “Patronizing Partnership” at all levels within the organization

The fittest Vendors and Buyers will internally promote and put into consistent practice procedures to support an open and free-flowing level of communication within and outside their organizations.

Survival Tactic #2: A commitment to the automated procurement process

The fittest will themselves employ “natural selection” to identify and retain those practices and processes which will enable eProcurement. This self-discovery will compare and contrast current practices with successful eProcurement requirements. Based on this discovery process, Buyers and Vendors will be able to naturally discard practices that are roadblocks and retain or acquire enabling practices. Concurrently, they must also have the tools of technology.

Survival Tactic #3: An IT infrastructure that supports eProcurement

Obtaining and implementing a web-based software application, which integrates all aspects of procurement from contract management to automated GL entries, is the first step in this natural selection process. Next, the fittest will have identified and secured necessary IT systems and infrastructure which will give them enterprise-class features, instant application service delivery and management, easy set-up and use, reliability, availability, responsiveness, security and encryption, scalability, data storage and backup, user and systems support services, Business Intelligence reporting, high availability, business continuity, interoperability with many platforms and 3rdparties, and disaster recovery. Many will find that Cloud Computing Services Providers offer the fittest features, flexibility, and affordability available.

Survival Tactic #4: Create a plan to meet the demand of eProcurement

The fittest have a plan that will put into effect their commitment, best practices, and the required technologies. The plan will include a specific statement of the goals; deadlines; obstacles; people, groups, and organizations which can assist; the benefits to achieving the goal; the skills needed to acquire the goals; and development of the plan. 

Survival Tactic #5: Implement the plan

While this may appear to be a no-brainer, I think it’s important to state, because in the implementation of the plan, the fittest revisit the plan regularly to identify progress made and to readjust the plan’s milestones if necessary. The fittest stay focused.

Conclusion

Following these five survival tactics will help Vendors and Buyers naturally take the steps necessary to be among the fittest in this exciting new eProcurement Evolution world.

What steps has your organization taken to leverage the brave new world of eProcurement?

What benefits have you seen as a result?


[1] SearchCIO.com, definition, e-procuremet (supplier exchange)

Topics: IT infrastructure automated procurement eProcurement Evolution eCommerce eProcurement business-to-business sales partnership
2 min read

What ACOs mean to IT – interoperability and infrastructure

By Prime Care Tech Marketing on Mon, Jun 27, 2011 @ 06:44 PM

I argue that Accountable Care Organizations (ACOs) do not represent a health care delivery revolution, but an evolution. Based on my experience in LTC and what I’ve been reading on the Internet, ACOs appear to be an evolutionary variant of the species known as HMOs. Regardless, ACOs represent a significant change to health care delivery. The ACO model will have a sweeping impact on how health care is planned for, delivered, documented, reported, and paid for. It follows that for an ACO to work, information technology serves as the glue that holds it together; those providers who have successfully worked with HMOs can attest to the critical role IT plays. Participation as ACO members will require providers to carefully evaluate what such participation will have on their respective IT systems.

Let’s explore this in more detail.

An ACO is a group of providers and suppliers of services that cooperatively deliver seamless, high-quality care to Medicare beneficiaries while reducing costs. Therefore, ACO providers must coordinate, deliver, document, monitor, and report patient care not only in terms of the quality of the care delivered, but the costs related to that care. The key word here is “interoperability.” This means the ability of health information systems to work together within and across organizational boundaries in order to advance the cost-effective delivery of healthcare. Interoperability involves seamlessly integrating data and information within each organization and among all providers who participate in an ACO.

More expansively, “interoperability” includes:
• Moving data among all providers
• A consistent data presentation
• A uniform user interface or controls
• Data security and integrity
• Uniform protection of patient confidentiality
• Consistent system service quality

In other words, each provider must at least have a fully-integrated clinical and financial system in place. This system must reliably, securely, and with interoperability communicate with other ACO members’ systems.

So, what’s the impact on a provider’s IT infrastructure? In general, the IT infrastructure will need to include:

IT Interoperability Infrastructure

So, if ACO’s are in your organization’s future, will you be ready?
• Do you know where IT is today and what you will need?
• How much will it cost to get IT up and running quickly, securely, and affordably? With outsourcing* - sooner than you think and with little to no capital.
• How much will it cost to maintain it? It’s less expensive than you may think.

If ACOs are not in your future, is the IT infrastructure checklist relevant? We’ve found that if you think it is, you’re ahead of the curve. However, if you think not; we urge you to think again.

*Cloud-based managed hosting infrastructure, services, and solutions have helped LTC providers leverage any and all such opportunities, such as ACOs offer, quickly and affordably.

Questions:
Are ACO’s in your future?
What impact do you think ACOs will have on IT?

Topics: ACOs Accountable Care Organizations cloud computing interoperability IT infrastructure
3 min read

Systems and Data Disaster Preparedness

By Prime Care Tech Marketing on Mon, Jun 20, 2011 @ 01:04 PM

Disaster recovery must include IT systems and data.It’s that time of year again.
In 2011, the desolation and loss of life in the wake of the massive tornados in Joplin, MO, in Tuscaloosa, AL, and other states have captured the attention of LTC providers across the country with the realization that disasters can strike anywhere, at anytime. They recognize the need for a real-world, workable, and well-rehearsed disaster preparedness and recovery plan that at least minimizes, if not prevents, injury and loss of life during and after a disaster.

Post-disaster recovery, however, must also encompass access to resident information, because in the world of EMR, electronic data can be lost if the servers or other storage devices are damaged by fire, flooding, or building collapse. Fortunately, there are steps which you can implement now to protect that vital information before a disaster strikes.

Backup procedures (a good start) - A basic IT disaster preparedness plan must include a regularly-scheduled daily back-up of data with off-site storage and I don’t mean in an employee's home. Tip: One important thing to remember about backups: they should be regularly tested. Nothing is more frustrating than to need a backup and find that the data is corrupt or non-existent.

Fault tolerance - The next step up in disaster recovery is to build fault tolerance into all of your critical systems. This means installing Redundant Array of Independent (or Inexpensive) Disks (RAID) drives (disk drives which are redundant copies of each other), clustered systems, and other types of local recovery procedures.

What happens if - Once you have a good backup and archiving procedure with critical fault-tolerant systems in place, the next step is to put together procedures for remote disaster recovery.

Option: Co-location

You might, for example, make arrangements with another company to share equipment and space if either is struck by disaster. Such an arrangement also requires agreements with critical computer vendors to quickly ship new systems in the event of an emergency. Although recovery would be slow, this kind of planning is a good first step.

Option: A Split Site

Some companies are large enough that the IT department could be staffed at more than one location. In the event of a disaster to one site, operations would simply shift to the other.

Option: A Cold Site

This is a site (often managed by a third party and shared among multiple clients) which is stocked with equipment and ready to go. The remote servers are generally not “live,” and time is required to activate the off-site system should the need arise. This is a popular disaster recovery method, because it tends to be less expensive than other options and gives a company the ability to be up and running with a brief delay.

Option: A Warm Site

If a company has the resources, then a warm site is a viable alternative. This is a site which is pre-positioned with equipment, software, and other necessities ready to go in the event of an emergency. The equipment is idle, often turned off, but can be quickly restored and brought online. Data is available quickly and can be restored without much difficulty. However, a high level of competence and forward thinking is required to plan, build, and maintain it.

Option: A Hot Site

In this scenario, a duplicate computer center is available in a remote location from as little as a few miles to hundreds of miles away from the primary computer facility with communications lines set up and actively copying data at all times. At a minimum, the site has a duplicate of every critical server up and running with data that is up-to-date.

Option: The Cloud

By its very nature, the cloud is designed to handle business continuity; high availability; and disaster recovery. So that in the event of a disaster, management and staff can access business-critical applications and data anytime from anywhere. Cloud Services Providers (CSPs), like PCT, provide pooled resources, flexibility, scalability, security, and reliability to businesses of all sizes so that businesses can store their data, applications, systems, and services.

Don’t wait! Act!

Regardless of the option you choose, having a viable systems and data disaster recovery system is critical.

Topics: cloud computing disaster recovery disaster preparedness

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