ERP System Implementation in Healthcare
ERP System Implementation in Healthcare
Letter to sponsor
Date
XXX
Honorable Sir,
On behalf of the team, I would like to inform you that we have planned install ERP Systems
in Healthcare. The installment is part of the larger initiative to bring the community together, as
well as engaging the youth in positive activities, away from the bad influence of drugs and other
unlawful activities.
We aims to increase social communication and growth by bringing small positive changes in
ourselves and around us. In addition, the aim is to motivate the generation to work towards
betterment of life. The group has conducted numerous research and activity sessions over the
months, ranging from blood camps, local competitions, educational campaigns and others.
We hope that you will humbly extend your financial support to help us organize this
program. Your support will certainly encourage and inspire the community to lead a better
successful life.
With Regards,
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Title Page
Contents
Letter to sponsor...................................................................................................................................1
Title Page..............................................................................................................................................2
Executive Summary..............................................................................................................................5
1.0 Introduction.....................................................................................................................................6
6.0 Implementation.............................................................................................................................15
9.0 Conclusion....................................................................................................................................21
10.0 Recommendations.......................................................................................................................21
Executive Summary
The modern world of has advanced in technology as well as there is the increment in
stiffness of business rivalry, where now companies necessitate venture in valuable, rare,
inimitable as well as expensive to acquire resources which set them apart from their competitors.
Notably, competition has largely shifted from the traditional areas of advantage like pricing and
quality of products to more abstract fields such as knowledge management. Today, knowledge is
a major asset for a company which can give it strong competitive advantage. Knowledge is
gained from the amount of information available. Therefore, the investment in strategic
information systems is an important venture and interest for all business corporations today.
The health care industry incorporates technology into many of its practices. Technology is
growingly used to communicate between health care providers and patients. Patient care is
improving and companies are becoming increasingly more popular with the use of technology.
Health care providers can communicate more effectively to patients without having to spend
face-to-face time with them. Health care providers find this more accommodating because of
busy schedules. The patient can get the information needed to make informed decisions
regarding care and treatment options that might become available using technology. The patient
can communicate all needs to providers and providers can respond in a timely manner. This
improves patient satisfaction, decreases possible errors and potential legal action due to
malpractice. Health care technology allows providers collect, store, retrieve, and transfer
information electronically. The use of technology overall has improved the quality of services to
both the provider and patient, and will continue to do so in the years ahead. This paper has given
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proposal
1.0 Introduction
Today, knowledge is a major asset for a company which can give it strong competitive
advantage. Knowledge is gained from the amount of information available. Therefore, the
investment in strategic information systems is an important venture and interest for all business
corporations today.
should invest in advancing technology. We will also need to confirm a plan to hire and recruit a
team to facilitate the expanded services. This could include physicians, nurses and support staff.
Satisfaction with a visit increases the likelihood patients return and recommend the facility.
Urgent care centers help to benefit both community medical services and patients. Ultimately
a well- written SWOT analysis can determine the success of our business, so it is important that
we gather our resources and research topics extensively. The next steps include creating a
company profile that will help attract talent. We will also need to establish an aggressive
marketing plan, clear goals for the future and illustrate what sets our facility apart from the
competition!
It can integrate the cost, profit, and sales information are made. Enterprise Resource Planning
can also change how products are manufactured. A dating structure can be set up to allow the
company to be notified when the product they need to be updated. In addition, the advantage of
also reducing operating costs ERP system implementation. When the initial cost of ERP
navigable, users can find a reward for their efforts in the form of reduced operating costs. It can
also enable companies to have greater control over marketing, production and inventory. This
will reduce costs and dependence on help desk support. In addition, integration can also be the
highest benefit of ERP systems. The only real project aim for implementing ERP reduce
redundancy data. If this is set as a goal, to automate inventory posting to G / L, then it might be a
successful project. Companies where the integration is not as important or even dangerous, tend
to have a hard time with the ERP. ERP not enhance individual users, so if they were expecting, it
will be a big dissatisfaction. ERP upsurge user collaboration. Contingent on the size of the
innovativeness, as well as manage data attributing can be a full-time role, even taking some
commissioner to comprehensive the task. Through applying an ERP system, all data will be
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positioned in one location, making it calmer to achieve the duties as well as responsibilities of
day-to-day. Also, to keep all the data adequately, daily tasks will develop easier.
analyzed. Some of the key factors include the pricing models that are offered by vendors; the
functions of different ERP systems, the need for training etc. are considered. Selection of the
along through the employed ERP system. The customization of the ERP may be needed for
meeting the needs of the business. It also includes testing of the system and training is provided
on the new ERP system. All processes and procedures needs to be tested before launching
well as corrected if there are any sort of malfunctions. The users are trained for using the system
necessary. In this phase the capabilities are integrated into the organization’s ERP system
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provided so that it helps in decision making with significant applications. In case of outward
evolution the system is specifically integrated by e-commerce and web. It helps in providing
moderately susceptible to the legacy system concerns as the commercial state as well as
technologies transforms.
sectors, ERP delivers wide variety of amenities which improves the level of performance
resource planning software provides immense benefits it is essential to consider the fact that it do
comes with certain drawbacks which needs to be assessed for effective functioning of all
operations. Thus, it is quite essential on the part of the organization to contemplate on the
emphasizing on effective scheduling and management in advance for the employment of the
healthcare facility including finance, human resource, capability, revenue and admission
resources. In healthcare organizations, these systems are famed for increasing profitability and
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efficiency of services. Some of the business processes that these systems have been designed to
promote include the reception area where patient records and details are maintained. These
systems help receptionists to easily obtain information that may be needed by patients and their
admission dates, and discharge details. Healthcare amenities endure on the flow of information
from diverse professionals as well as amid dissimilar departments. The ERP systems guarantee
that there remains a tranquil diffusion of data through guaranteeing that all approved personnel’s
partake admittance to all pertinent evidence in the wildest way conceivable. The obtainability of
this data remains critical in procedures such as evolving diagnostic reports. When evidence
documented on electronic medical reports (EMR) is conveyed in a fast way, physicians remain
capable to usage of specifics such as health background as well as preceding analyses in order to
Considering the immaculate number of issues persisting with the healthcare it can be stated
that the organization is in urgent need of technological implementation which can enable in
overcoming such problems and put the organization in the driving seat. Evaluating the first issue,
the implementation of the ERP system can help in making order management error free. By the
help of this particular system (Tsai et al. 2012). The implementation of the system would allow
in saving the works directly in the program so that the operations can be carried out as per
convenience. The editing abilities make altering remits, creation of quoted and converting the
invoices in an easy manner through the ERP software. The customized enterprise resource
planning system will also improve the consumer relationships and allow in making constant
In a similar manner for the second issue it is necessary to avoid miscommunication regarding
the production unit and inventory. The implementation of ERP system enables in attaining
inventory accuracy. No matter which devices are used the levels of inventory will appear
consistently which will help in saving both money and time (Leon, 2014). This also will help in
overcoming the stock mishaps. Moreover ERP solution will also enable in knowing the
purchases across the business so that every individual can make accurate and informed decisions
This aspect basically implies the applicability of a significant strategy in regards to a certain
organization. Assessing the scenario of healthcare centers the implementation of the ERP system
is feasible enough for enhancing the profitability. Regardless of the factor whether the business
organization has the abilities, capacities and assets for execution of the implemented
technological system, it is essential on the part of the management to evaluate the financial
related possibilities by estimation and investigation of cash flow, performing the break even
analysis along with other financial analysis (Beheshti and Beheshti, 2010). As per the feasibility
analysis of implementation of the ERP system is concerned, the organization needs to analyze
the human resources, effectiveness of the managers, materials etc. These aspects need to be
inquired for having a profound knowledge about the capacities of the organization. As the
implementation of ERP system is necessary and depends upon the execution all related
operations and aspects must be analyzed beforehand so that the implementation of ERP system
Modern hospital information systems remain information systems which are combined,
comprehensive as well as specialized. Even with these benefits being evident the utilization of
the systems of ERP by physicians' and hospitals' is still significantly low. Researching the
understanding the success and failure of ERP development and implementation project.
Considering the issues persisting with healthcare it can be stated that ERP implementation
can be the only way out to sort all the problems and bringing back the operations of the
organization in track.
Features
The ERP executed as a spouse presented cloud solution or positioned on buildings or the
Implementation of the ERP enables in offering adequate and accurate business solutions
helps an organization in getting ahead and staying ahead by prolifically enhancing the
operations for smooth functioning of the overall organization (Ruivo et al. 2013).
The following ways can be used to test the ERP system before implementing in the chosen
organization.
Using the SysTest Framework for editing the component/unit assessment code.
test code.
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Introducing the record of the Task Recorder hooked on the visual studio intended for
Dynamics Web Portals: It can be verified by numerous web portals employing the web
browser collections/
Many studies have come to view ERP to be quite challenging especially due to the
presence of multiple screens, options as well as navigation aids. Similarly, these studies have
noted the problems in usability especially in regard to the documentation of progress notes and
other components that are proven labor extensive to cause healthcare providers to spend extra
time at work learning how to use these systems. These substantial initial time costs, however, are
regarded as very crucial barriers towards achieving successful implementation. Poba-Nzaou et. al
(2014) says the reason they are considered barriers is that they put a time stress on healthcare
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providers and staff by increasing their time at work, this extra time used in training reduces their
use of the ERP systems and could in some cases increase resistance towards the systems
While vendors are making effortless attempts to gradually improve ERP usability, the
analysis that vendors contributed to show that they believed that newly innovated technology
such as voice recognition, mobile devices, and tablet computers could not make significant
changes in simplifying ERP usage. Stefanou (2006) feels that the development and designing of
many industries other than the healthcare industry. Failures in ERP implementation and use such
as inexistence of integration between the ERP and clinical data systems such as referral systems
and lab systems has been attributed to barriers of inadequate electronic data exchange and weak
integration. Having health care professionals work using both electronic and paper-based
systems has proven quite challenging in that maneuvering through both systems during the
performance of their work tasks has become very time-consuming thereby slowing down the
workflow. It can also lead to an increase in errors of information conveyance and organization
and can as well lead to an increase in the resistance to EMR use amongst the healthcare
professionals.
The implementation of information systems adoption, as well as its use, has remained a
major issue affecting both research and practice. Even with the major innovations and
technological evolution for both hardware and software the problem facing information systems
persists. The last two decades have brought about significant progress especially in the prediction
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and determination of user acceptance of information systems. Numerous researches have proven
Technology Acceptance Model (TAM) to be effective in explaining about forty percent of the
This Model believes that behavioral intention to use by an individual can be determined
by the belief of perceived usefulness and the belief of perceived ease of use. Perceived
usefulness can be used to describe as the level at which a person believes the information system
will increase their job performance. Perceive ease of use, on the other hand, is referred to as the
level at which a person believes the use of these information systems will be easy to use and
require minimum effort. The TAM model also views perceived usefulness to be influenced by
perceived ease of use since the easier it is to use the systems the more useful it becomes to the
6.0 Implementation
Considering the scenario of Healthcare implementation of the ERP system needs to be
carried out effectively by following certain regulations. Implementation can be carried out firstly
by identification of the issues, as noticed in the chosen organization the production and inventory
unit is not functioning effectively so it can be stated that the real objective for implementing the
ERP systems is for enhancing the operational activities. In a similar manner for execution of the
ERP system, emphasis should be given on the scope (Bahssas, AIBar and Hoque, 2015). The
features of the ERP need to be synchronized as per the company needs depending on the core
necessity and budget. Following the scope evaluation of options has to be evaluated. It is the role
of the management to successfully invest the time in an effective manner for evaluating the
available options.
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Once the particular ERP solution has been identified which is ERP in the case of the
Healthcare the most significant step that needs to be taken in migration of data that helps in
future utilization and smooth transition of the software. It needs to be assessed that only the
relevant and necessary data should be transferred with great care so that data can be retrieved
whenever required (Sekar, 2018). After this procedure the infrastructure has to be checked as it is
the core aspect for the implementation of the ERP software. The infrastructure on which the
particular ERP system will run must have the scalability scope along with distinctive options as
per the requirement. Once this process is carried out emphasis should be provided on change
management and transfer of technology and knowledge to all the associated members of the
organization. This helps in clearing all questions regarding the change that would take place and
the need for the ERP system (WAN and CLEGG, 2011). Proper training and knowledge transfer
can help in understanding the requirement and can also help in reducing the time gap. After all
these aspects have been evaluated implementation of the ERP system is carried out with proper
monitoring process.
implementation activities of the ERP systems. This can enable in enhancing the performance and
getting adequate results for which the particular system has been implemented.
time and attention do face certain number of risks. In regards to Healthcare the risk can be quite
dangerous as it can impact the overall organization not only from the failure of the new system
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but also from the perspective of change management. Thus the following risk management
techniques need to be taken into consideration for successful management of risk in ERP
implementation.
For effective management of risk related to ERP implementation at Healthcare five key
ways needs to be followed for dealing with the risk i.e. prevention of risk, reduction of
risks, transference of risk, contingency of risk and acceptance of risk. Developing a plan
based on this aspect can help the management to overcome the risk associated with the
On the other hand, educating the employees of the organization in articulating the risks in
an actionable manner can be a significant way in managing the ERP implementation risk
(Hakim and Hakim, 2010). Educating them about the ways the risk can be mitigated and
how the ERP can be beneficial can be beneficial from both change management
In managing the risk compliance assurance review is must as it is reviewed and driven by
the present situation of the business. As noticed with Healthcare the organization needs
an overhaul change the major goal is that the organization understand the reason behind
execution of the change, This will help in preparing risk management plan so that if
anything goes awry during operational time quick decisions can be made to overcome the
risk.
organizational change management is quite essential to the implementation success of the chosen
All employees of the organization need more training and understanding about the specific
need for the ERP system. Thus organizations must take prolific strides in enhancing the
communication and letting the employees know about the need for implementing ERP
system, how it can impact the organizational effectiveness and how it will enhance the daily
Similarly, training and education is quite essential in regards to the ERP related training so
that the employees are ensured about learning the new software and the business processes.
The significant changes in the business processes which are necessary in successful
implementation of ERP create significant changes in the corporate climate and culture.
Therefore it is essential in managing the staff for avoiding fear, resentment and anxiety.
management authorities needs to showcase commitment and support (Dezdar and Ainin,
2011). Lack of management can impact both the organization and failure of the ERP
implementation and therefore the management needs to overcome the resistance to change by
This particular section provides a discussion of the identified threats based on the presented
case, then proposing the mitigations. The part therefore, starts by looking or outlining the
identified risks then providing the elevation for the threats. Based on the case presented, the
following are the identified threats and the proposed mitigations (Smith, 2016).
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The Losing of the customers as a result of the outages led by incidences, for instance,
Remediation; This threat can be elevated through Improvement of the risk intelligence;
this will help the organization to differentiate the risk administration from the demeanours
regarding the risks. The organization should, therefore, focus on indorsement of the risk
clearness through the whole organizational stages; this will help the organization to ensure that
the actions taken align with the goals and objectives. Moreover, conversing as well as emanating
the intelligent risk philosophy is an essential strategy that should be adopted. All employees will
be required to follow this. This can be achieved through, frequent and open communication of
the errands while holding them accountable, development of the procedure that would facilitate
The remediation of this threat may take two steps: First, alignment of the risk management
with strategy is critical in this regard- arguably. the organization itself is responsible for assisting
the mission of the organization. During the evolution of the company’s plan, the board should
focus on debating the risks to the approach as well as the possible dangers the procedure may
have. The organization therefore, has to task management CBA under the destruction of the
information of the organization as a result of the insider threat which could lead to the loss of
essential data of the organization. In this case, the CBA analysis is reported to be $34000 to be
Losing the data of the organization attributed to the removal of the hardware from the
production systems
Remediation of the threat: making a decision regarding the risk oversight accountability.
Considering the facts that the administration is wholly accountable for the risk running and then
providing the answers to the procedures of categorizing, checking as well as mitigating the
dangers of the organization. Ensuring accountability within the organization so that the
mitigation process is effective. CBA: The approximated cost of this possible loss would force the
organization to incur about $48,900 dollars, in case of the implementation of the control then the
Losing the data of the organization on lost Organization assets, for instance, the laptops
this effective suit the loss of the information of the organization or even the data that might be
misplaced. The familiarity that the organization have with the risk administration is essential. In
this case, therefore, the organization should ensure the incorporation of the risk administration in
while at the same time issuing the recommendations even to the stakeholders.
The Losing of the customers as well as the revenue as a result of the regulatory landscape
Remediation: This type is based on the organization, a flexible as well as a low-cost strategic
measure that would effectively counter the above-identified risks. Arguably, an ideal risk
mitigation task has to be adopted considering the facts that some of the risks might not be easily
identified. In this regard, therefore, flexibility is essential as it would effectively help in the
9.0 Conclusion
In conclusion, Healthcare began as a practice where people would learn about the
medicinal properties of plants through practice, and trial and error. After new found knowledge
was learnt and studied, people would pass that knowledge onto others. Healthcare is an integral
part of our community, and there is great importance placed on the efficient and effective
operations of health providers. The high numbers of patients visiting the hospitals daily pose
direct challenges in the administration of a facility forcing most hospitals to adopt information
systems such as ERP. Enterprise Resource Planning (ERP) in medicine has mostly been used by
large organizations, but we seek to apply its use in small-sized healthcare facilities.
10.0 Recommendations
The ERP is a solution for long term and for getting utmost value out of it, it is essential to
work towards the efficient use of the application. Thus, this particular section frames all the
It has been observed that implementation of this particular system needs planning and
strategy and therefore it is the role of the organization to analyze all the necessary aspects
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before expecting any solution. In case the goal is for self-supporting then it is important to
organization it is important to analyze the processes of business and develop the CRM design
Appendices
Appendix one
Background of Healthcare
Healthcare Industry
Medicinal practice became a purposeful and common practice through many cultures:
Chinese, Indian, Egyptian, Persian and Roman. During the nineteenth century there were
numerous technological, chemical and biological advances that helped physicians better
understand certain illnesses and treat ailments. Among those of technological advances are
anesthetics, syringes, antiseptics, x-rays, and penicillin. Around the beginning of the 20th
century the healthcare industry we know today began to evolve. These companies are the top and
some of the most important companies up to date due to the amount of revenue they bring in,
these companies bring in the greatest amount of revenue in the healthcare industry, and have the
highest percentages of people they treat around the world. Although, these are not all the people
who have been major contributors to this industry, without them this industry would not be as
successful as it is, there are many people who have made the healthcare industry the industry that
we know today. The whole healthcare industry has been increasing throughout its existence,
based off the chart (as seen above) starting at 2005 to 2013, everything about the industry has
been increasing, from revenue to net assets and member organizations. The healthcare industry’s
GDP is predicted to increase by the years, “NHE (National Health Expenditure) grew 3.9% to
$3.5 trillion in 2017, or $10,739 per person, and accounted for 17.9% of Gross Domestic Product
(GDP)” ([Link] 1). Base off the healthcare industry’s current and predicted increase in GDP,
so does the practice in medicine, insurance coverage, hospital and clinical expenditures, and the
Appendix two
Appendix three
Appendix four
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