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Internaional Healthcare

Comments on Article- “Predictive Analytics Showing the Shape of Things to Come”- The Australian June 25, 2013

The Australian newspaper had an interesting article on June 25, 2013 (http://tinyurl.com/mtah9ju) describing a number of successful predictive analytics applications, but also making the point that market penetration has been slow noting “… despite the numerous uses of predictive analytics, uptake is limited. According to Gartner, only 13 per cent of organisations report extensive use, while fewer than 3 per cent use prescriptive capabilities such as decision/mathematical modelling, simulation and optimisation market”. I posted brief summary comments today in response to the article and am pleased to share a complete copy of my comments:

Excellent article and clearly summarizes the challenges we face in educating management on how PA solutions can help companies improve performance and mitigate risk. I am pleased to share the following 3 observations. My comments are based on my position as former CEO of InferX Corporation, a publicly traded predictive analytics company, and serving as adjunct professor teaching MBA strategy courses in the RH Smith School of Business at the University of Maryland.

No. 1   Analytics complements ‘traditional management’

Define your mission; assess external environment and competition using PEST, Porter’s 5 Forces model, other tools; assess internal resources and capabilities; develop detailed value chain analysis; analyze product life cycles; develop cost leader/differentiation global strategies based on product, market, competition and other factors. Analytics can make a major contribution throughout the ‘traditional’ management process. Yet market analysis shows about 85% of the total PA market today addresses the CRM sector. We need to view PA within the context of traditional management rather than a separate ‘big data/analytics’ sector. Integrating PA into traditional management processes is a challenge and the real opportunity with high upside

No. 2   Analytics costs more

True. When the e-commerce revolution emerged years ago, we had major push back from companies who preferred to continue to process orders manually, work with suppliers using ad hoc systems, and avoid ‘costly’ new systems implementation and industry standards. Systems costs did increase, but we created process and performance efficiencies that improved profitability and reduced risk. Today’s analytics solutions demand understanding ROI (and how to measure) and clearly communicating this message.

No. 3    “Analytics Drives Strategy and Strategy Drives Analytics”

Properly executed and integrated into a company’s management processes, I see great opportunity to use analytics to drive strategy, particularly in shaping new product and market innovations to increase ROI. Look at Capital One, an analytics driven competitor reportedly doing 300+ analytic scenarios daily to optimize financial offerings. Or Progressive, capturing motorcycle rider clients using analytics to define a segment with both claims and expense ratios providing strong returns. Amazon, Netflix and many others are using analytics to drive ‘micro-marketing segmentation’ which is where we are heading. And these new strategies create new analytics, enabling analytics- savvy companies such as Amazon to continue to excel.

Clearly all ‘analytics solutions’ providers, a term I prefer to emphasize PA’s broader role, have a challenge ahead- to educate clients, particularly at the ‘C’ level, on the opportunities embracing these solutions and the challenges they will face if they do not. Exciting times lie ahead in the global analytics solutions business for both solutions providers and all companies in all sectors.

Paul B. Silverman

 

Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the School of Business at George Mason University. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

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Comments- Are Analytics Shifting from Executives to Employees?

Interesting article in Information Management Feb 6th issue  discussing how analytics decisions are being driven by mid-level staff rather than C-level executives. But analytics demands resources- what analytics should be pursued; how should analytics be deployed to increase revenue, decrease costs, and improve strategic position; what are the company’s key competitive peer group metrics? These are C-level not middle management decisions. Analytics, effectively deployed, can provide high ROI, but successful adoption typically demands C-level participation.

My comments noted no question there is a C-level gap in in understanding how analytics drives increased revenue, decreased costs, and improved strategic position. The concept of “analytics competitor,” mentioned in Tom Davenport’s writings (Competing on Analytics, others) emphasize that “C-level” analytics, creatively applied, helps companies create winning strategies- examples which I have used in MBA courses are Netflix, Progressive, and even Cirque du Soleil which created a new ‘circus/theater’ market sector- if you wonder why you don’t see three circus rings or elephants, analytics played a key role in these and many other decisions. Worthwhile reading. Key point- C-level management teams that understand the power of analytics driving new business strategy will achieve above average returns and a competitive edge. “Tops-down” thinking and unfortunately missed by many.

Secondly, no doubt there is a ‘massive treasure trove of data’ available- big data is a resource, not a solution. Analytics are the tool to leverage ‘big data” to improve key metrics, e.g., revenue, costs, strategic position, and so on. And no doubt analytics supports and improves workforce operational decisions… Read more including perspectives on analytics in the healthcare sector at http://tinyurl.com/mw674t8

 

Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the School of Business at George Mason University. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

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Good Analytics Article- “…Reaping Returns from Analytics”

Good insightful article in the October 18, 2013 issue of Information Management on analytics by Narendra Mulani who is Managing Director of Accenture Analytics. I posted comments sharing some additional perspectives and related opportunities I foresee. One clear message here- the analytics market is positioned for major growth and as I noted in my comment related to healthcare analytics, today we are only seeing the ‘tip of the iceberg’ in this sector.

Check out at http://tinyurl.com/nyrd8q2

Here is a copy of the comments I posted:

Excellent article. I am pleased to share some comments based on my experience in the analytics arena.

Analytics clearly provide powerful tools to optimize business processes and value chain functions. What is often overlooked is understanding the impact of external and industry factors critical to maximize performance and mitigate risk. Some studies, for example, show that external factors have a 45 percent impact on ROA. Ignore these, and your analytics may address only 55 percent of the critical performance and risk drivers.

How will global environmental policies impact your business; what is impact of changing healthcare regulations on new drug development and clinical trials; what new market opportunities are projected based on disruptive innovation in your business; how will privacy and transborder data restrictions impact your business today and tomorrow. These are external drivers which can create new markets and ‘destroy’ existing ones.

Addressing how the external environment impacts your business demands analytics addressing STEEP analysis, Porter’s Five Forces, Peer Group modeling, and similar diagnostics. And these are not static analyses- change is the only constant in today’s global environment, and having current data is critical. The winning formula- couple traditional external analysis tools, such as STEEP, with unstructured exogenous data analytics provides dynamic, real time insights on external market and business portfolio impact. Integrate these insights with internal data analytics to develop ‘actionable’ analytics. Today’s fiercely competitive global markets demands this analytics rigor.

One interesting statistic suggests 85 percent of today’s analytics solutions address CRM applications, improving the performance and operations dealing with customers and related supply chain activities. The remaining 15 percent are emerging exciting analytics directions that offer exciting opportunities.

For example, in the legal arena, Technology-Assisted Review or “TAR”, uses computer models, machine learning, and analytics to sort millions of documents identifying relevant and privileged documents to support litigation with dramatic cost savings. TAR technologies are rapidly evolving and the acceptance of TAR is now being tested in state and Federal courts.

Analytics will also play an expanded role in traditional corporate strategy management. Fortune 500 companies have thousands of business portfolios often managed using traditional analytics, e.g., hurdle rates, IRR, others. Understanding with precision how these individual portfolios align with the Company’s overall strategic plan, what are the overall projection risks, where are the corporate exposures based on both internal and external factors, are the exciting new directions being pursued by leading edge companies.

While analytics applications in healthcare are accelerating, we are at the tip of the iceberg. Using machine learning to optimize clinical care and reduce longitudinal costs for patient care; integrating healthcare claims data, EHR and genomic data to evaluate patient outlook for both clinical and insurance applications; tracking and analyzing medications and vital signs to assess drug efficacy and adverse effects for drug trial screening; are some of the many exciting new directions we see emerging that will redefine today’s healthcare system improving both quality and cost performance.

Senior management will be challenged to understand these new analytics applications to improve their global performance and mitigate risk. Even business schools must adapt- new analytics tools are reshaping our traditional approach to strategy development and competitive analysis.

Clearly exciting times lie ahead for all players in the global analytics market

Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the School of Business at George Mason University. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

Paul B. Silverman

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Comments on Article- “Predictive analytics showing the shape of things to come”- The Australian June 25, 2013

The Australian newspaper had an interesting article on June 25, 2013 (http://tinyurl.com/mtah9ju) describing a number of successful predictive analytics applications, but also making the point that market penetration has been slow noting “… despite the numerous uses of predictive analytics, uptake is limited. According to Gartner, only 13 per cent of organisations report extensive use, while fewer than 3 per cent use prescriptive capabilities such as decision/mathematical modelling, simulation and optimisation market”. I posted brief summary comments today in response to the article and am pleased to share a complete copy of my comments:

Excellent article and clearly summarizes the challenges we face in educating management on how PA solutions can help companies improve performance and mitigate risk. I am pleased to share the following 3 observations. My comments are based on my position as CEO of InferX Corporation, a publicly traded predictive analytics company, and serving as adjunct professor teaching MBA strategy courses in the RH Smith School of Business at the University of Maryland.

No. 1   Analytics complements ‘traditional management’

Define your mission; assess external environment and competition using PEST, Porter’s 5 Forces model, other tools; assess internal resources and capabilities; develop detailed value chain analysis; analyze product life cycles; develop cost leader/differentiation global strategies based on product, market, competition and other factors. Analytics can make a major contribution throughout the ‘traditional’ management process. Yet market analysis shows about 85% of the total PA market today addresses the CRM sector. We need to view PA within the context of traditional management rather than a separate ‘big data/analytics’ sector. Integrating PA into traditional management processes is a challenge and the real opportunity with high upside

No. 2   Analytics costs more

True. When the e-commerce revolution emerged years ago, we had major push back from companies who preferred to continue to process orders manually, work with suppliers using ad hoc systems, and avoid ‘costly’ new systems implementation and industry standards. Systems costs did increase, but we created process and performance efficiencies that improved profitability and reduced risk. Today’s analytics solutions demand understanding ROI (and how to measure) and clearly communicating this message.

No. 3    “Analytics Drives Strategy and Strategy Drives Analytics”

Properly executed and integrated into a company’s management processes, I see great opportunity to use analytics to drive strategy, particularly in shaping new product and market innovations to increase ROI. Look at Capital One, an analytics driven competitor reportedly doing 300+ analytic scenarios daily to optimize financial offerings. Or Progressive, capturing motorcycle rider clients using analytics to define a segment with both claims and expense ratios providing strong returns. Amazon, Netflix and many others are using analytics to drive ‘micro-marketing segmentation’ which is where we are heading. And these new strategies create new analytics, enabling analytics- savvy companies such as Amazon to continue to excel.

Clearly all ‘analytics solutions’ providers, a term I prefer to emphasize PA’s broader role, have a challenge ahead- to educate clients, particularly at the ‘C’ level, on the opportunities embracing these solutions and the challenges they will face if they do not. Exciting times lie ahead in the global analytics solutions business for both solutions providers and all companies in all sectors.

Paul B. Silverman

President and CEO

InferX Corporation (OTC/PK: NFRX)

 

Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the School of Business at George Mason University. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

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New Vision Needed: Creative Entrepreneurially Driven Technologies Can Improve Health Care

Clearly our health care sector has lagged behind all others in using leading edge technologies to improve operations- vested interests have really not worried too much about costs; these were just passed on to consumers, directly and indirectly. But new tools and technologies are rapidly emerging in the health care sector and these are driven by emerging entrepreneurial firms rather than the traditional major players. No surprise here- statistics show more than 95 percent of all radical technology innovation in the past 60 years has been developed by SMEs (small medium enterprises) not major corporations as you might expect. 
 
Bolder options are needed now to address today’s health care problems – the prescription: deploying new technology and capital on global best practices.

Let me share a vision on the possibilities. Suppose we create a new national eHealth program. Program objectives are to commit to use leading edge information and communications technology to improve patient safety, accessibility and quality of care; enable patient mobility nationally and internationally; meet the increasing demands from our citizens and healthcare professionals; and use eHealth as the main tool for renewal and improvement of our nation’s health care services. We will use telemedicine and other technologies to support creative, cost effective new solutions to improve our health care system. Consider some possibilities: 

Your patient records are stored as secure Electronic Health Records or ‘EHRs’. Just like your secure on-line bank account transaction records, you can access this information, identify issues, alert your practitioners, and if needed, request your EHR be sent to another physician or laboratory. No more going to a physician’s office to pick up copies of imaging data and records, paying extra costs and using ‘sneaker net’ to move this data between offices.

Patients with heart disease, diabetes, hypertension and chronic illnesses, are monitored using at home telemedicine devices including ‘smart beds’ which automatically monitor and transmit diagnostics and vital signs to remote telemedicine centers.

Patient monitoring services are enhanced with predictive analytics and decision support systems that monitor all patient diagnostics, including ECG sensors transmitting data via mobile phones. Using intelligent, real time, secure predictive analytics technology, the diagnostic system helps assess patient status, identify any deviations and alerts the appropriate medical resources, including emergency services.

Telemedicine systems will provide rural, remote regions with access to practitioners, including specialists. The same infrastructure will be used to support ‘mobile’ health care clinics to treat some of the 42 million people in the United States who have no health insurance.
Remote consultations among practitioners and patients can be easily accomplished using secure, on-demand multimedia eHealth communications channels.

You have a wide range of online eHealth physical and wellness program alternatives available offered within the national eHealth program.

The above sounds impossible or ‘decades away’ to many. Not really. The eHealth vision above is widely promoted within EU countries now making excellent progress in deploying these new capabilities throughout Europe. And the specific program objectives above were cited in a speech by the Swedish Minister of Health in December 2007, less than four years ago. One EU study reported that about 70 percent of European physicians now use the internet and 66 percent use computers for consultations. Administrative patient data are electronically stored in 80 percent of general practices which is impressive. European physicians transfer about 40 percent of their data to laboratories electronically and about 10 percent to other health centers. Electronic prescriptions (‘e-prescribing’) is widely used in only three member states: Denmark (97 percent), Sweden (81 percent and the Netherlands (71 percent). Sweden has an impressive track record in deploying new national technology solutions such as ‘Sjunet’, their secure national information and communications technology or ‘ICT’ infrastructure supporting eHealth applications in Sweden.

‘Intelligent’ remote telemedicine technology may sound far off, but these services using predictive analytics are now offered. One example is the Kiwok BodyKom Series™ technology which offers patients in Sweden capabilities going well beyond traditional patient monitoring, such as ability to detect early disease symptoms; to follow up treatment processes for patients out-of-hospital; to follow and predict care demands in pre-hospital services; to directly transfer the information to a patient’s individual Electronic Health Record; among other features.

Summarizing, all would agree our health care system is broken. We can argue about policies, but we need to fix the systemit. The prescription: establish national level priorities to develop and deploy creative new technology solutions. Recognize that entrepreneurial firms will be a key driver in our progress and we reap significant benefits by more effectively leveraging our nation’s entrepreneurial assets. And we should learn lessons looking at global best practices of others are well ahead of the United States in developing an effective health care solutions. That is the recommended prescription to fix our ailing health care system. No need to call me in the morning.

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