Significance of Bpr &Erp Implementation in Healthcare Industry: an Exploratory Research

Topics: Enterprise resource planning, Business process reengineering, SAP AG Pages: 18 (5355 words) Published: May 6, 2013
International Journal of Management and Strategy (IJMS) 2012, Vol. No.3, Issue 5, July-Dec.2012 ISSN: 2231-0703


Akondi Srikanth, Research Scholar, Dr.B.R.Ambedkar Open University, Hyderabad, India

This paper seeks to signify the implementation of Business process Reengineering (BPR) and then Enterprise Resource Planning (ERP) for the betterment of existing scenario of organizations’ under Healthcare Industry in India , as the market is still at the nascent stage. This paper also explores different critical success factors (CSR) factors in BPR and ERP implementation towards Healthcare Industry. This paper is based upon exploratory research i.e analysing the historical cases dealt with national and International hospitals and Pharmaceuticals, where the BPR and ERP played their significant role in enhancing their overall efficiency. This paper analyses the significance of BPR in increasing the effective use of pre-operating area and equipment, reduces waiting time of patients at Emergency Department and service Work stations and provides better value for purchases. By implementing ERP along with BPR the organization improves the performance of existing business processes, reduces receivable days, credit returns and also improves the back –end efficiency. This paper is only restricted to healthcare Industry and its findings are based on the cases analysed. Therefore it is left to the researches to what extent they use them. This paper has not considered the financial aspects involved in implementing BPR and ERP. The analysis may help only for those similar organizations those are under study. This paper provides different ways to reduce patient waiting times, credit returns, improve backend efficiency. This paper also reveals different top ERP solution providers and their clients who got benefited in Indian Context.

Key words: Healthcare, exploratory research, case study, business process re-engineering, enterprise resource planning.

International Journal of Management and Strategy

ISSN: 2231-0703


International Journal of Management and Strategy (IJMS) 2012, Vol. No.3, Issue 5, July-Dec.2012 ISSN: 2231-0703

I. INTRODUCTION The potential Healthcare industry is treated as one of the world's largest sectors of servce with total revenues of approximately USD 2.8 Trillions. In India as well, the healthcare industry is a major one in service sector with USD 40 Billion revenues by constituting 5% of GDP and is offering employment to around 4 million people. As per the World health Organization (WHO) 2010 report, private sector is spending more in healthcare than public sector. One way this indicates that healthcare is growing enormously. The major driving factors for the growth of healthcare industry are demographic and Economic factors. These have bought dramatic improvements in the processes performed by the companies in Healthcare industry. Studies emphasise that there are several organizations those got benefited by reengineering their business processes at National and International level such as Indraprastha Apollo Hospital, GCR hospital, Singapore hospital in surgical work, Geneva pharmaceuticals and so on. Apart, it was found that Information Technology (IT) is used as a tool in better performing Business Process Reengineering. Hammer and Champy (1993) say that IT is an integral part of reengineering as an enabler since it permits companies to reengineer business process. Davenport and short (1990) say that IT and BPR have a recursive relationship. Examples such as Amazon, Wal-mart, General Electric, Ford motor corporations‟ have proved the significance of IT in BPR. Further, Enterprise Resource Planning (ERP) is the latest solution the IT has provided for improving the efficiency of business processes. The ERP implementation has...
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