agfa strategy and competitive positioning · agfa strategy and competitive positioning ......
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Agfa strategy and competitivepositioning
Philippe HoussiauPresident HealthCare Business Group
February 2nd, 2005
inspire. transform. achieve.
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Today‘s presentation
Market drivers
Market opportunity
Combined strengths
Integration approach
GWI model, Orbis® overview, synergies with Agfa
Ludwigsburg case studyIntroduction to needs and benefits of hospital-wide IT
Hospital tour and demos
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•Limited patient care time
•Non optimal operating process
•Labor and administrative intensive
•Staff shortage & salary issues
•Disparate information components
•Unconnected & non-transparent
•Systematic medical error risk
Societal and medicaltrends
INCREASED LIFEEXPECTANCY andLOWER BIRTH RATE
Increased demand forHealthcare services
MORE CHRONIC DISEASESIncreased need forscreening
MEDICO-LEGALREQUIREMENTS
MOVE TO OUTPATIENT CAREand MINIMAL INVASIVETREATMENTS
Need to avoid errorsand failures
REGULATION FORCESIT ADOPTION
Today’s medicalenvironment
WAGE COST andSTAFF SHORTAGE
Need to control costsand enhance efficiency
COMPLEXITY OF THEMEDICAL PRACTICE
Increased communicationbetween healthcareprofessionals
Management anddeployment of moresophisticated medicalequipment
Current drivers
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Agfa HealthCare strategy
Imaging TechnologiesLeverage Intellectual property and expertise
Innovate through ventures and partnerships
Radiology solutions
Grow with radiology
Develop presence inclinical departments
Grow mainly byacquisition
Departmental solutions
Healthcare IT solutions
• Provide leading edge healthcare Imaging technologies andcomputer aided detection tools
Provide imaginginformation systemsand services
Provide imagemanagement andinformation systemsand services
Provide communitywide systems andservices, HospitalInformation Systemand Electronic PatientRecord (HIS, EPR)
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Disparate hospital information components
• Administration• Logistics• Human Resources• Accounting• Billing• Catering
Operating Room
IntensiveCare
WardNursing
Radiology&
Nuclearmedicine
Laboratory&
PathologyPharmacy
AdmissionDischargeTransfer
Emergency Room
•Planning
•Consulting
•Treatment
•Ordering
•Results
•Reporting
Cardiology
Pediatrics
Dermatology
Oncology
Psychiatry
Urology
SPECIALTIES
CONCLUSION
• Diverse departmental needs
• Existing departmentalsystems with retained valuelead to fragmented systems
• Many of these departmentsstill use non-digital solutions
ACTIVITIES
Orthopedics
Internal medicine
Gynecology
Ophthalmology
Dental
Surgery
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Agfa in healthcare today
•Planning
•Consulting
•Treatment
•Ordering
•Results
•Reporting
ACTIVITIES
HIS PAS CIS - EPR
HIS = Hospital Information System
PAS = Patient Admission System
EPR = Electronic Patient Record
CIS = Clinical Information System
Medico-Technical IS
• Administration• Logistics• Human Resources• Accounting• Billing• Catering
Operating Room
IntensiveCare
WardNursing
Radiology&
Nuclearmedicine
Laboratory&
Pathology
Pharmacy
AdmissionDischargeTransfer
Emergency Room
•Planning
•Consulting
•Treatment
•Ordering
•Results
•Reporting
Cardiology
Pediatrics
Dermatology
Oncology
Psychiatry
Urology
SPECIALTIESACTIVITIES
Orthopedics
Internal medicine
Gynecology
Ophthalmology
Dental
Surgery
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Europe Healthcare IT market revenue forecast,2004-2009
Source : F&S, 2004 / COCIR / Agfa team
CAGR (2004-2009)
Total: 9,9%
0%
17%
13%
Including HW, software, services, consultancy,..
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2004 2005 2006 2007 2008 2009
€ M
illio
n
Administrative systems
Clinical systems lessPACS/RISPACS/RIS systems
(HIS)
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Consolidation has started in the fragmentedEuropean IT market
EDS
SIAC and VPI
Cap Gemini Santé
SMS Ireland
Laufenberg
PIMSACT Medisys
PyrénéesInformatique)
DP Informatica
SMS U.K. SMS /Hiscom
Applicare (PACS)
Innomed (RIS)
Image Devices
GAP
Amersham[Applicare/GE]
Northgate
Eclypsis
Med2Rad [RIS]
(1)
Tiani (PACS+RIS),Prompt, Boss,EuropeMedica
IcelandRis (RIS)
Symphonie on Line[HIS]
Tieto Enator
InformationsLogic;C&S Healthcare;
Doctorex ; Respons ;ITB AG [LoI]
GWI
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Europe: market observations
GermanyHighest level of installationsHigh IT spend and steady growthMany mid-sized national players
GWI + Boss has the largest customerbase
FranceLowest IT budget levels, averagegrowthPreference for established suppliers
Symphonie On Line, Medasys, andpublic “companies” have the largestCustomer base
ItalyRelatively high IT budgets, highestrate of growthFragmented market with many smallnational players
NetherlandsGovernment push of EPR programs
BelgiumAgfa’s stronghold – Medar winning inEPR…
SpainLow IT spend with high growthexpectationsFew global players but preference forhardware vendors
UK
Short term impact of National Programme– but Frozen marketBig increase in IT budget levelsHigh level of standalone systems
Europe is at different stages in rolling out EPR
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How we compete
Disruptive IT model, disruptive technology
Innovation
Install-base leverage
Neutral integrator
Competitive edge through clinical depth
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Agfa and GWI: a powerful combination
AGFA HealthCare• Connectivity & integration to
diagnostic modalities andinformation systems
• Domain know-how in key hospitaldepartments and imaging centers –vertical approach
• Strength of a large corporateorganization
• Worldwide sales & servicesorganization
• Worldwide customer base – marketshare
GWI• Connectivity & integration to
hospital & public informationsystems
• Domain know-how inadministrative and clinicalhospital IT – horizontal ‘holistic’approach
• Strong methodology in project ITbusiness
• Software architecture built forfuture vision
• Germany, Austria, Switzerland –key contacts at enterprise level
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Agfa and GWI -Complementing each other
Luc ThijsHead of Radiology & Departmental Solutions
February 2nd, 2005
inspire. transform. achieve.
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Radiology &Nuclear Medicine
Laboratory & Pathology
Pharmacy
The HealthCare Enterprise, a complex organization
Administration Logistics
Human Resources Accounting
Billing Catering
Administration Logistics
Human Resources Accounting
Billing Catering
AdmissionDischargeTransfer Operating
Room
IntensiveCare
WardNursing
Emergency Room
•Planning
•Consulting
•Treatment
•Ordering
•Results
•Reporting
ACTIVITIESCardiology
Pediatrics
Dermatology
Oncology
Psychiatry
Uro & Nephro.
SPECIALTIES
Orthopedics
InternalmedicineObstet. & Gyn.
Ophthalmology
Dental
Surgery
Most hospital structures are highly fragmented, with highly specialized staffperforming tasks within their department.
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Two market realities co-exist today
Inspired head of a departmentor a discipline
Achieve quality of care andincreased control of outcomeswithin discipline or department
Mostly bottom-up initiativesfrom the department head
Commitment to projects with a1 to 2 year span, affecting asubset of the organization
Focus on a ‘best-in-class’platform with comprehensivefunctionality for a departmentor a discipline
EnlightenedCEO/CFO/CIO/BoM of ahospital
Achieve quality of care andincreased control of outcomesat enterprise level > Integrationof the ‘departments’ into onecoherent interoperableenvironment
Top-down decision fromenterprise management
Commitment to projects with a3 to 7 year span, affectingentire organization
Focus on ‘best commonplatform across the enterprise’
Urging for two complementary approaches
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Electronic Medical Record (clinical perspective)
Hospital Information System (admin perspective)
Enterprise Workflow Management (e.g. scheduling, tracking)
Enterprise Solutions
Radiology
PACS
Radiology
Information
System
Film & Print
Systems
CR/DR
-------------
Connectivity
RadiologySolutions
Cardiology
PACS
Cardio-
vascular
Information
System
Film & Print
Systems
Connectivity
CardiologySolutions
Clinical
Workflow
Plan/Report
Connectivity
&
Integration
Otherdepartments
ImagingInformation
Technology
But one well-integrated portfolio
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The strengths of Agfa and GWI combined
• Two complementary approaches to the market:
• Initiatives from Enterprise Management
• Initiatives from Departmental Management
• One broad yet unified portfolio that uniquely combines:
• A best-in-class platform at enterprise level
• Best-in-class platforms for key departments
• One proven methodology in project business:
• Metrics that lead to predictable and repeatable results
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The integration effort is focused
• Securing business in current markets
• Achieving synergies
• Portfolio integration track
• Fast market access
• Preparing roll-out sequence beyond Germany and France
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Agfa, GWI and SOL: Market access in Europe
Benelux• 436 customers
UK & Ireland• 800 customers
Switzerland• 220 customers
• 50 customers
Germany• 3000 customers
• 700 customers
Nordics• 1194 customers
France• 1500 customers
• 1250 customers
• 960 customers
Iberia• 384 customers
South Eastern Europe• 880 customers
• 350 customers
Italy• 1392 customers
Total Europe• 10478 customers
• 2060 customers
• 1250 customers
• 843 employees [region only]
• 890 employees (770 FTE)
• 220 employees
GWI AGFA SoL
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Agfa & GWI:Powerful combination
Ruediger WilbertHead of Healthcare IT
February 2nd, 2005
inspire. transform. achieve.
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Continuous Development
Foundation of the group in Trier in 1990
Continuous growth since market entry in 1996
Hospital sector strongly regulated by government
Focus on Electronic Medical Record
Extensive software portfolio for medical specialties
System development started with our integratedenvironmental HOLISTIC approach as empowering force
Comprehensive know-how by specialized medicalprofessional staff
Build up a significant innovative image by smarttime-to-market strategies
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Hospital Customers ORBIS® - Growth
Market leader with integrated hospital information system (HIS) ORBIS®
Most extensive product range in comparison to competition
Hospitals of all sizes, segments and types(small, medium, large hospitals - acute care, rehabilitation, psychiatry)incl. hospital groups and university hospitals
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100
200
300
400
500
600
700
1996 1997 1998 1999 2000 2001 2002 2003 2004
Total number of ORBIS® hospital customers
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Facts & figures -Sales distribution
Thousand €
Licences
Services
Hardware
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1997 1998 1999 2000 2001 2002 2003
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ORBIS®
ORBIS® is a complete information system and has over 70applications for hospitals and other healthcare facilities,including nursing, wards, operating theater, anesthetics,intensive care, radiology, laboratories, pathology, cardiologyand other clinical departments, blood banks, out-patients, alladministrative functions and financial affairs
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IT architecture model - ORBIS®
CUSTOMIZED
ADAPTABLE
STANDARD
Clinical/medical
specialists
Domainspecialists
IT Developers
AGFA/GWI STAFF
Customized for hospital/departmentworkflow
Admitpatient
Releasepatient
Orderexam
Administerdrug ...
Application Metaware
Core / kernel
Business objects
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ORBIS® – the integrated Healthcare Information System
Product LinesORBIS® Ways
Cross-area andcross-sector cooperation.Organization of higher-level flows.
ORBIS® MedicalTreatment managementand medical documentation.Systems for specialist areas,functional areas and
departments.
ORBIS® Links
ORBIS® CareNursing managementand nursing documentation.
ORBIS® ManagementInstitution management.Hospital management, business management,
controlling, accounting and administration.
ORBIS® BasicsBasic systemsand services.
Networkingwith other systems.
Interfaces, system integration,
communication.
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Why Agfa?
One well integrated portfolio
Internationalization of ORBIS® with Agfa infrastructureand market access
Agfa as complete IT provider for hospitals
Enterprise Solutions for Healthcare: Hospital InformationSystem – Electronic Medical Record – EnterpriseWorkflow Management
Departmental solutions: Radiology, Cardiology and others
Complementary customer base
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inspire. transform. achieve.
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Glossary
GWI: Gesellschaft für Wirtschaftsberatung und Informatik
PACS: Picture Archiving and Communication System
RIS: Radiology Information system
CIS: Clinical Information System
HIS: Hospital Information System
EPR: Electronic Patient Record
EMR: Electronic Medical Record
MRI: Magnetic Resonance Imaging
PAS: Patient Admission System
CR: Computed Radiography
DR: Direct Radiography