INFOSYS110 2014 Deliverable 02 assignment

1

INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Nicole (MinJi) KimNetID Mkim464Group Number: 155Website Link: http://infosys1102014fcgroup155.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Mira Lee Tuesday 2pm

Time Spent on Assignment: 38 hours Word Count: 1648

2

SOLVING PROBLEMS IN THE MEDICAL TECHNOLOGY INDUSTRY

INTRODUCTION

A problem we face in the world today are from medication errors. John T. James (2013)

indicated that medication errors cause up to 400,000 patient deaths annually. i Iranian

Journal of Nursing and Midwifery Research (20130) explains that 65% of nurses make a

medication errorii which is a comparatively high percentag. Doctors enter the patient’s

medication details and they software catches any inaccuracies like spelling mistakes, an

extra/less number, wrong name for a medication and so on. The business produces software

that is carefully organised for an error free input of medication details that will be sure to

help solve the problem leading fatal consequences.

3. BUSINESS SECTION

3.1 Vision

To advance patient safety by equipping the health sector with leading technology that will help prevent the minor medication errors causing major problems in the health industry.

3.2 Industry Analysis

Industry: Medical Distribution System Industry

Force: High/Low: Justification:

Buyer power: Low Medical distribution industry is yet to be

developed, therefore there isn’t a variety of

businesses. We are the only company to provide

the specific software so the buyer power is low as

consumers do not have the choice of many

products as we are a developing industry.

2

3

Supplier power: Low Supply power, like the providers of our

computers that are needed for research and

development of the product is low because there

are so many businesses in the computer

manufacturing industry that we have a variety of

choices to choose from like Dell and HP.

Threat of new entrants: High New or similar industries can easily access and set

up in the industry as it is relatively straight

forward to gather information for a software

business. Businesses could get a developer and

set up a research team to start off.

Threat of substitutes: High There are many other ways to fix the problem like

making doctors enter the data manually or other

systems like MTS packaging system which is said

to be the most leading medication delivery

system suggested by Pharmaceutical

International.iii

Rivalry among existing

competitors:

Low Industry is developing not many competitors yet

except the MTS packaging system which has also

said to be minimising medication errors risks

suggested by Packaging Systems Inc.iv There will

be rivarly between the different substitutes for

medical distributing systems as they compete to

make their product more attractive.

Overall attractiveness of the industry: This industry is not very attrative as the threat of

new entrants is low suggesting that there aren’t huge barriers to entry which means as new

businesses enter the market this will push the buyer power to be high. This is not a good 3

4

sign if the buyer power is high there will be fierce competition for the industry to sell their

products and make them look different. This will make the industry not a very profitable one

as all the industries will have excess amount of supply of goods and services compared to

the amount of demand from customers.

3.3 Customers and Their Needs

Customers are hospitals as our software is made especially targeted at doctors and other

professionals who want something that is easy and fast to input data. Need something

convienient to spend less time on little things and more time to concentrate on the major

operations. Because hospitals are very demanding they need free nurses all times especially

in the emergency department and is proven that nurses under pressure make many

mistakes. Mayo & Duncan (2004) report that nurses tend to cause medication errors by

illegible handwriting, distractions, tiredness and exhaustion.v Also the hopitals need

something reliable as medication is important for individuals as it will cause fatalities which

we are trying to eliminate.

3.4 The Product and Service

Our technology will display the patient’s medical history and show an error free medical

detail. The software will process the information entered by the doctors after the patient’s

visit and will ensure an error-free system in the process as the software will have updated

information about common medication and dosage. Budek (2014) suggests “with such large

number…it is very easy to make a simple , human error.”vi So any fault unintentionally made

by the doctors during the process will automatically pick that and re-check for the correct

medication, dosage and time of use. This technology will be much more convienient, slims

the margin of human error and provides more time for the nurses to perform more

important tasks.

3.5 Suppliers and Partners

Our suppliers are technology businesses like Dell computers. We need a great amount of

technology for R&D process. Could be supply of computers for coding and programming the

app. Another could be the electricity company as electricity is a main source of input used

4

5

since most of our production is done through the computer system. A potential partner

could be the hardware company. Since our product only functions if our customers have the

hardware to operate it our partner could be the producers of the hardware like Samsung

tablets so that our customers can get an extra deal buying the software and the hardware.

Another partner could be the government health and research department. This is because

the government departments are reliable for their research and have all the data including

real statistics from the country.

3.6 Strategy:

The market that we are targeting is a narrow market because the target group of customers

which are just hospitals is relatively small. Need to research for medications and the

technology has to be outstanding for reliability and different from competitors. The cost

strategy is high because of the masses amounts of costs that go into the process of making

the product. Therefore we cannot make our product cheap and so we are giving our

customers the best product for its price. The overall strategy is therefore Focused High Cost.

3.7 Value Chain Activity: Technology Development

To develop and create our software research and development is a major process that adds

value to the product. Since our target market are looking for a precise and error free

technology the greatest value that can be added would be technology development as they

are looking for advance technology that can eliminate human error. Also a lot of time and

effort would be spent on the development of the software more than anything else as the

product will be forever changing to fit the needs of the customers more accurately.

3.8 Business Processes

3.8.1. FEEDBACK IMPROVEMENT PROCESS – this key business process is important as the

customers are important to us because they provide feedback for the product indicating the

5

6

positive and negative feedback is vital helping us to improve.

6

7

3.8.2. SOFTWARE DEVELOPMENT PROCESS – this is essential in order for the business to

produce to the best quality software they need the process of researching and developing

the product. In the process of doing so they will test the faults and learn from it by either

improving it or taking that feature out.

7

8

3.9 Functionalities

3.9.1. FEEDBACK IMPROVEMENT PROCESS

Alerting department after 3 months Updating the product to fit the customer needs

3.9.2. SOFTWARE DEVELOPMENT PROCESS

Testing out for faults in the data Department decides whether to develop and update or to take out the

feature

3.10 Systems

3.10.1. CUSTOMER FEEDBACK SYSTEM – when receiving feedback from the customer the

business has to communicate/contact customer after 3 months of purchase. This is engaging

with customer and indicating their importance to see if there are more ideas to develop the

product showing that the business is devoted to make product to its best ability.

3.10.2. PRODUCTION DEVELOPING SYSTEM –the research and development department tests

out and finds any faults in the product. Then have to identify a solution for the

problem/error and decide if they carry on researching and developing to fix the problem or

go with other solutions. Doing this shows the decisions are made in order to make the

product the best quality and error free.

3.10.3. COLLABORATION SYSTEM – the Research & Developing department gathers all the

information, tests out the result and the final stage of developing the product they need to

work with the manufacturing department in order to actually put the design into a software

product into a finished good. To do this they have to work together so that they know

exactly the features to put in.

8

9

3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Technology

Development

(R&D)

1. Feedback Improvement Process

1. Alerting business after 3 months of each individual customer’s purchase

2. Updating the product after receiving feedback

Customer feedback system

Developing process system

Customer Relationship Management System

Decision Support System

2. Software

Developmen

t Process

1. Testing faults from the product

2. Deciding whether to develop the fault or to take it out

Production developing system

Developing process system

Collaboration System

Decision Support System

9

10

CONCLUSION

Overall our business creating an advanced software will benefit the hospital industry for an

error free technology which is a major cause and issue today. Also not only are patients fatal

to this problem but also nurses as they take their own lives like Kimberly as Institution of

Safe Medication Practises (2011) report. vii This information system that has been created

helps to eliminate human error to a minimal as today’s information technology is greatly

advanced and reliable.

REFERENCES

10

i James T. James (September 2013) A New, Evidence-Based Estimate of Patient Harms Associated with Hospital Care. Retrieved from http://journals.lww.com/journalpatientsafety/Fulltext/2013/09000/A_New,_Evidence_based_Estimate_of_Patient_Harms.2.aspx

ii Iranian Journal of Nursing and Midwifery Research (May 2013) Types and Causes of Medication Errors from Nurse’s Viewpoint. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3748543/

iii Pharmaceutical international (2014) MTS Medication Technologies Ltd. Retrieved from http://www.pharmaceutical-int.com/suppliers/mts-medication-technologies-ltd.html

iv Packaging Systems Inc (April 2003) Medical Technology Systems. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=84075&p=irol-newsArticle&t=Regular&id=445953&

vAnn M. Mayo & Denise Duncan (September 2004) Journals of Nursing Care Quality. Retrieved from http://www.nursingcenter.com/lnc/journalarticle?Article_ID=514523

viConsafe Logistic Group (2014) Retrieved from

http://www.consafelogistics.com/knowledgecenter/articles/wms-for-the-pharmaceutical-

companies

viiInstitution of Safe Medication Practises (2011) Retrieved from https://www.ismp.org/newsletters/acutecare/articles/20110714.asp