Sutherland and International Institute for Analytics HIStalk Webinar - Charting a Course to Digital...

W W W . T H E B R E A K A W A Y G R O U P . C O M

CHARTING A COURSE TO DIGITAL TRANSFORMATION –

START YOUR JOURNEY WITH A MAP AND COMPASS

December 7, 2016

P R E S E N T E D B Y

Sutherland Healthcare Solutions and International Institute for Analytics

Proprietary & Confidential

Today’s Presenters

2

Jack Phillips, CEO of International Institute for Analytics

• Noted advisor and writer on the impact business analytics and big data have on enterprises

• Edited the 2012 book Enterprise Analytics: Optimize Performance, Process and Decisions Through Big Data

• Focuses on how the adoption of data and analytics by certain firms leads to competitive differentiation and

higher performance

Dr. Graham Hughes, CEO of Sutherland Healthcare Solutions

• Physician with 30+ years of US and international experience leading teams in the development and delivery of

innovative healthcare IT products and services

• Has also held Chief Medical Officer and Head of Global Analytics responsibilities at SHS, GE Healthcare, and SAS

• Was responsible for strategic portfolio planning and leadership of the Center for Health Analytics and Insights, an

incubator group for creation of new advanced analytic offerings



Why We Became Partners For This Transformational Journey

3

To provide a consultative approach for our customers

who are embarking on their analytics journey

Leading provider of business transformation and

analytics services to the entire healthcare ecosystem

Leading authority on analytics maturity and best

practices working across a breadth of industries to

uncover actionable insights

+



Learning Objectives for Today

4

Leverage transformational design thinking methodologies to discover new

opportunities, optimize existing operations, and improve experiences

Measure and compare your organization's analytics maturity

Develop a strategy for leveraging analytics and design thinking as a

competitive differentiator


Proprietary & Confidential5

Clinical

Administrative

Financial

Patient Experience

Quality Measures ++

Supply Chain

Human Resources

Data Abundance



78% of Americans have a social media profile

162M Americans (over 50%) use Facebook at least once a month

59% of US adults looked online for health information this year

50+% of health costs tied to socio-demographic and behavioral attributes

Source: Stat 1, Stat 2, Stat 3, Stat 4

Patient /Consumer Data

https://www.statista.com/statistics/273476/percentage-of-us-population-with-a-social-network-profile/

https://www.emarketer.com/Article/This-Year-More-Than-Half-of-Americans-Will-Use-Facebook/1013560

http://www.pewinternet.org/fact-sheets/health-fact-sheet/

http://healthcare.mckinsey.com/sites/default/files/791750_Changing_Patient_Behavior_the_Next_Frontier_in_Healthcare_Value.pdf



From Piecemeal Solutions to Enterprise Thinking

Consulting

DesignThinking

Platform

Solutions

Analytics



Your Map & Compass

Analytics Maturity

Analytics Journey

Analytics Strategy

8



Competing on analytics

is the inevitable future

IIA is the only research firm dedicated

exclusively to analytics

IIA provides the actionable insights and best

practices required to succeed in the new data

economy

IIA - The Authority on Analytics Maturity and Best Practices

• Co-founded by CEO Jack Phillips and Tom Davenport

with the belief that competing on analytics is difficult and

requires focused and leveraged expertise

• IIA has worked with 200+ organizations, providing best

practice, assessment, and consulting services, that

enable our clients to compete and win on analytics.

9

Tom Davenport

CO-FOUNDER, BOARD MEMBER,

FACULTY

Author of Competing on Analytics

Jack Phillips

CHIEF EXECUTIVE OFFICER

Editor of Enterprise Analytics

Robert Morison

LEAD FACULTY

Co-Author of Analytics at

Work

Daniel Magestro

VP & DIRECTOR OF RESEARCH

Previous VP / Director at

Nationwide, JPMorgan Chase,

Cardinal Health

Connect with IIA

www.iianalytics.com

503-467-0210

@iianalytics

http://www.iianalytics.com/



VC Investment in Healthcare

10



VC Investment in Healthcare

11



Analytics Disruption in Healthcare - AI

12

90+ Startups Transforming

Healthcare With AI



Providence vs. Zoom+Case Study

13



ProvidenceEST.

1855



EST.

1855

• Traditional healthcare

provider and regional

hospital system

• 3rd largest not-for-profit

provider in US

• Over 600 facilities in 5

states

• 82,000 employees

Providence



• Accepts Medicare,

Medicaid and private

insurance

• Offers urgent care

• Traditional access models



Zoom+EST.

2006 2006 – Founded by two MDs

2015 – Business model update

and Zoom+ Super opening

2016 – 33 locations and

free chat care

2011 – Online scheduling and

Seattle expansion

2014 – App launch

2008 – Three locations

2010 – Seven locations

2012 – 15 locations in OR, WA, ID

2013 – 21 locations



• On-demand care, even for

patients without

insurance

• Efficient model reduces

costs

• Less insurance friction –

does not accept Medicare

and Medicaid

• Relationships with local

providers

• Digitally integrated



“Apple Store for Healthcare”• Aesthetics – “Designed

around consumer retail

experience.

• Vertical integration –

introduction of

insurance plan, wellness

programs, training,

dental, and more

• Segmentation – retail

approach, not traditional

“wholesale” approach



Streamlined

Digital

Experience

• Find a location and

schedule

appointments

• On-demand care –

Skype

appointments or

chat with doctors

• Access records and

refill prescriptions



Providence’s

Response

21



Power of the IIA Community

“How do I calculate (and defend) the value of

analytics projects, and investing in analytics broadly?”

“What are best practices in establishing analytics

professionals' career paths?”

“How do I get the best talent?”

“How do you manage the decision-making risk with

machine learning?”

“How have others built ‘modern’ analytics stacks and

why?”

“Is a cloud analytics environment really cheaper?”



The Analytics Challenge

Up to 70% of analytics projects fail to meet objectives 1,2

Why? It’s NOT the technology; key reasons include:3,4

Disagreement on or lack of enterprise strategy

Corporate cultures that aren’t built around data

Insufficient domain knowledge

Organizational resistance

Lacking the right skills

$3B

Enterprise

Analytics

Spending 5

$10B

2015 2020

2 -1 - 3 -

4 - 5 -

$33B

Enterprise

Big Data

Spending 6

$60B

2015 2020

6 -



Developing Enterprise Analytics Capability

2007 2010

How?

• Adopt an unbiased framework for determining how groups within an organization rate and prioritize analytics capabilities

IIA Analytics Maturity Assessment (AMA)

• Uses 5-Stage Analytics Maturity Model and DELTA Framework for assessing enterprise analytics capabilities

Analytics Maturity Assessment Goals

• Assess enterprise analytics maturity against frameworks

• Assess enterprise analytics maturity against other industries including digital natives

• Provide actionable insight for improving analytics capability



5 Stages of Analytics MaturityAnalytical

Competitors

Analytical

Companies

Analytical

Aspirations

Localized Analytics

Analytically Impaired

STAGE 2STAGE 1 STAGE 5STAGE 4STAGE 3

Analytical Nirvana

Good at Analytics

See the Value of

Analytics

Use Reporting

Not Data-DrivenEstablished

Mainstream

Digital Native

Disruptors

Adapted from

Competing on Analytics

Davenport and Harris, 2007



5 Stages of Analytics Maturity

STAGE 2STAGE 1 STAGE 5STAGE 4STAGE 3

STAGE 5: ANALYTICAL COMPETITORS:

“Analytical Nirvana.” Use analytics across the enterprise as a competitive

differentiator and in strategy.

STAGE 4: ANALYTICAL COMPANIES:

“Good at Analytics.” Highly data oriented, have analytical tools, and make wide

use of analytics. Lack commitment to fully compete or use strategically.

STAGE 3: ANALYTICAL ASPIRATIONS:

“See the value of analytics.” Struggle to mobilize the organization and become

more analytical.

STAGE 2: LOCALIZED ANALYTICS:

“Use reporting.” Use of analytics or reporting is in functional or business

silos.

STAGE 1: ANALYTICAL IMPAIRED:

“Not data-driven.” Rely on gut feel and plan to keep doing so. Not asking

analytics questions and/or lack the data to answer them.

Adapted from

Competing on Analytics

Davenport and Harris, 2007



DELTA Framework

IIA’s Analytics Maturity Assessment measures an

organization’s performance using the DELTA model framework

D

E

L

T

A

DATA

ENTERPRISE

TARGETS

LEADERSHIP

ANALYSTS

BREADTH, INTEGRATION, QUALITY

APPROACH TO MANAGING ANALYTICS

PASSION AND COMMITMENT

FIRST DEEP THEN BROAD

PROFESSIONALS AND AMATEURS

DELTA = CHANGE

Adapted from Analytics at Work

Davenport, Morrison and

Harris, 2010

27



DELTA Competencies

0 42 6 8 10

Not important at All Extremely important

Not Effective at All Extremely effective

Data capture

Data quality

Data integration

Use of external data

Data consistency

Data trustworthiness

Analytical tools

“Big Data” utilization

Enterprise tech

management

Organization of talent

Funding adequacy

Non-management

utilization

Data scalability

External reporting

Strategic input

Executive advocacy

Executive utilization

Management utilization

Enterprise collaboration

Predictive modeling

Goal setting

Prioritization

Iterative approach

Opportunity identification

Experimentation

Staffing level

Consultative approach

Business skills

Data science skills

Career paths

D E L T ADATA ENTERPRISE TARGETSLEADERSHIP ANALYSTS

Adapted from Analytics at Work

Davenport, Morrison and

Harris, 2010



Making Analytics Maturity Scores Actionable

Shows which competencies have the greatest gaps between performance and importance and calculates opportunity

scores to show which competencies are the greatest opportunities for improvements.

OPPORTUNITY RANKING

IMP

OR

TA

NC

E

EFFECTIVENESS GAP

PRIORITY MATRIX



AMA Collected Data

Lowest Score Median

3.72

IIA ASSESSMENT

COHORT (N = 60+)

MARKET LEADERS

COHORT (N=75+)

ALL COMPANIES

(IIA ESTIMATE)

STAGE 1

1 to 1.99

STAGE 2

2 to 2.99

STAGE 3

3 to 3.99

STAGE 4

4 to 4.99

STAGE 5

5 to 5.99

Analytically

Impaired

Localized

Analytics

Analytical

Aspirations

Analytical

Companies

Analytical

Competitors

2.691.25

Highest Score

Lowest Score

1.73

Median

3.51 4.94

Highest Score



Targeted Market Leaders in ten

industries• Sample Size: 515 Responses across 75 companies

• Functional Areas: IT/Systems/Analytics, Finance and

Sales/Marketing

• Minimum Data Requirements: At least 5 respondents

with 1 from each functional area

Modified Analytics Maturity

Assessment Model• 17 of 30 DELTA competencies captured

Market Leaders Methodology

Respondent

Online B2B

PanelistsEmployed at

Participant Company

In Required

Position

With Required

Responsibility

Producer,

Enabler or User

of Data

Analytics



Market Leader Companies



2.89

2.96

3.05

3.14

3.19

3.23

3.43

3.55

3.56

3.62

3.91

4.56

Insurance

Healthcare - Insurance

Utilities & Telecom

Healthcare - Provider

Automotive

Airlines

Manufacturing

Pharma & Medical Devices

Retail

Consumer Brands

Financial Services

Digital Native

Market Leader Industry/Segment Rankings

Possible Scores:

1.00 to 5.99



3.12

3.75

3.08

3.433.63 3.61

4.06 3.96 4.05 4.05 4.09

4.94

2.35

1.73

2.972.86 2.89 2.89

1.95

2.89

3.313.19

3.51

4.07

0

1

2

3

4

5

Market Leader Industry/Segment Distributions

2.89 2.96 3.05 3.19 3.23 3.43 3.55 3.56 3.62 3.91 4.563.14

Stage 1

Impaired

(1-1.99)

Stage 2

Localized

(2-2.99)

Stage 3

Aspirations

(3-3.99)

Stage 4

Company

(4-4.99)

Stage 5

Competitor

(5-5.99)

35



Key Characteristics of Digital Natives

• Experience Ratings

- No complacency > not standing still

• Overserved in some competencies

- Data Integration, executive utilization

• Underserved in investment competencies

- Data Capture, funding

Highest score, on threshold of Stage 5

Unique consistency of DELTA Component

Scores

Digital Natives

4.94 4.95 4.92 4.87 4.97 4.95

0

1

2

3

4

5

4.94

83% +52 +58

Must Maintain

Competitive Advantage

Competitive

Rating

Satisfaction

Rating

50–59 Good

60-69 Very Good

70+ Excellent



Digital

Natives

Eff

ecti

ven

ess

Importance

Extreme

Opportunity

Solid

Opportunity

High

Opportunity

Appropriately

Served

Limited

Opportunity

1

2

3

4

5

6

7

8

9

Opportunity = Importance + Max (Importance – Effectiveness, 0)10

1 2 3 4 5 6 7 8 9 10

Table

Stakes

Underserved

Potentially

Overserved:

Data Integration

Executive Utilization

Limited Opportunities:

Data Capture

Funding Adequacy

Data

Enterprise

Leadership

Targets

Analysts

37



Pharma &

Med Devices

Eff

ecti

ven

ess

Importance

Extreme

Opportunity

Solid

Opportunity

High

Opportunity

Appropriately

Served

Limited

Opportunity

1

2

3

4

5

6

7

8

9


1 2 3 4 5 6 7 8 9 10

Table

Stakes

Underserved

Data

Enterprise

Leadership

Targets

Analysts

Potentially Overserved:

“Big Data” Utilization

Solid Opportunities:

Data Integration

Analytical Tools


Analysts Business

Skills

38



Health

Insurance

Eff

ecti

ven

ess

Importance

Extreme

Opportunity

Appropriately

Served

Limited

Opportunity

1

2

3

4

5

6

7

8

9


1 2 3 4 5 6 7 8 9 10

Table

Stakes

Underserved

Data

Enterprise

Leadership

Targets

Analysts

Potentially Overserved:

None

High Opportunities:

Data Quality

Funding Adequacy

Goal Setting

Prioritization

Opportunity

Identification

Solid Opportunities:

Data Capture

Data Trustworthiness

Analytical Tools

Data Scalability


39



Significant differences in analytics maturity

driving disruption in healthcare

High-performers continuously invest, and are

not slowing down

Maturity can be learned and repeated; not

just for the digital natives

Change management…not technology

management

Implications

1

2

4

3

40



Analytics Strategy Components

Phase 2

Opportunity

Definition

Phase 3

Roadmap

Phase 4

Governance

& Operations

Phase 1

Assessment /

Benchmark

Analytics Program Planning

4 Phases Designed to:

Discover and assess

Identify top opportunities

Plan and deploy

Operationalize

1

2

4

3



Our Analytics Solution Playbook

42



Next Steps – Get Your “Map and Compass” for the Digital Era

Objective Measurement of Analytics Maturity

Analytics Maturity

Baseline Report

Benchmarks

Recommendations

Advisory Services to Improve Analytics Maturity

Analytics Journey

Capability Evaluation

Strategic Roadmap

Business Case & ROI

Maximize the Value of your Information Assets

Analytics Strategy

Solution Design

Innovation Workshops

Insight as a Service



Questions?

44

Our Faculty Blog and Research Section

http://iianalytics.com/research

Our Analytics Section

http://www.sutherlandhealthcare.com/solutions/analytics/

Learn More

http://iianalytics.com/research

http://www.sutherlandhealthcare.com/solutions/analytics/

Sutherland and International Institute for Analytics HIStalk Webinar - Charting a Course to Digital...

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Transcript of Sutherland and International Institute for Analytics HIStalk Webinar - Charting a Course to Digital...