Case Study - Too Far ahead of the IT Curve

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Question 3
Executive Summary
Peachtree’s mission is to ensure a quality, consistent and continuity of care across the entire network of care facilities but to deliver all of this at the highest levels of efficiency, economy, and respect for patients and staff. In order to be competitive in the health industry, Peachtree has obtained a number of varying health institutes via mergers. This leads to PH’s major IT infrastructure problems - the information systems of each acquired institutions are incompatible and disconnected with each other. The current system faces the issues of inefficiencies of the company processes and procedures, and the meantime, the instability increases and maintenance cost is high. CEO of PH Max Berndt is trying to find the right solution. He has an option to go with monolithic system that will provide consistency across PH’s facilities but may not give doctors enough flexibility or he can choose service-oriented architecture (SOA), a modular design that will allow PH to standardize incrementally and selectively but poses certain risks as a newer technology. Evaluating pros and cons of both SOA and monolithic system, it is recommended PH to apply SOA because of low costs, easy to use, flexible and low time consuming. Current Situation

Peachtree Healthcare (PH) is a network of eleven large and midsize institutions and has 4,000 employed and affiliated physicians who treated every imaginable injury and disease to one million patients range from new born to nonagenarian with all races, ethnicities, lifestyles and economic conditions; and manifested every imaginable injury and disease. In order to be competitive in the health industry, Peachtree has obtained a number of varying health institutes via mergers. This leads to PH’s major IT infrastructure problems - the information systems of each acquired institutions are incompatible and disconnected with each other. Current Peachtree Healthcare Challenges:

Pressure to standardize processes/practices
Incompatible current technology with future goals
High maintenance costs for current IT system/Recent meltdown of clinical information system Seeking competitive advantage
Conflicted support for IT-based innovation
Several institutions with unique doctor-oriented identities

IT Strength:
Each institution’s system fulfills its own needs.
The acquired institutions enhanced the PH’s IT capacity; they brought in IT experts and technologies. PH’s management are forward thinkers.
CEO Max enjoyed a close, positive working relationship with CIO Candace.

IT Weakness:
Lack of standards in IT infrastructure.
Inability for a continuation of care to flow between the various medical facilities since IT systems of each facilities are incompatible and disconnected Instability of the system itself has the potential of disrupting the care of its patients. The system is not economical because of the wasted energy and time on the current system.

Like “The African Queen”, trying to keep the blasted engine running on the boat, so much of our energy and budget goes into just treading water. And the more we grow, the worse it gets.” CEO Max was convinced that implementing a system urgently needed to be done. Criteria

Effectiveness and reliability:
Measurement method: whether the system runs stably and smoothly; whether it is able to provide business with the right information, in the right form, at the right time, and in the right place. Effectiveness is essential since the goal of IT system is to make things done. Peachtree’s mission is to ensure a quality, consistent and continuity of care across the entire network of care facilities but to deliver all of this at the highest levels of efficiency, economy, and respect for patients and staff. This goal cannot be achieved if IT system cannot run effectively.

Flexibility
Measurement method: whether the system could meet the needs of different institutions; and whether it could fulfill the needs if situation...
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