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KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved Key Considerations When Selecting A BI Vendor Lorin Bird, Strategic Research Head, Financials/Services Research July, 2011

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Page 1: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Key Considerations When

Selecting A BI VendorLorin Bird, Strategic Research Head, Financials/Services Research

July, 2011

Page 2: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

WHO IS KLAS?

Page 3: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

• Founded in 1996

• Based in Orem, UT

• Market Research and Intelligence Firm

• Monitor & report on vendor performance

• Healthcare Software

• Professional Services Firms

• Medical Equipment

• Conduct 1,900+ provider

interviews/month

• 14 Years of performance data

• 4,500+ Hospitals

• 3,000+ Doctor’s Offices and Clinics

• 250+ Vendors

• 900+ Products & Services

Who We Are…

Page 4: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

KLAS Principles & Commandments

Page 5: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Where the KLAS Data Comes

From

5

5

CEO/CFO/COO6%

CIO8%

CMO/Physician6%

IT Director7%

IT Manager17%

Dept Director16%

Dept Manager37%

CNO/Nurse3%

Respondent Titles

• 15 Years of performance data

• 4,500+ Hospitals Reporting

• 2,500+ Clinics Reporting

• 200+ Healthcare Firms

• 800+ Healthcare Products,

Services and Medical Equip.

28,000+Interviews in 2010

Page 6: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

CURRENT STATE OF BUSINESS

INTELLIGENCE IN HEALTHCARE

Page 7: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

BI Is Kinda Like…

Page 8: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

First Thoughts

• Attributes: flexible, intuitive, speed to value, price, support, functionality

• Largest health systems tend to favor IBM, Microsoft, Oracle, and SAP;

• Dimensional Insight (DI) priced right for smaller facilities; Information Builders (IBI) and McKesson most often in medium to large stand-alone hospitals

• McKesson the only EMR vendor with enterprise BI customer base

• Epic relationship with SAP having significant impact

• Clinical Analytics continues to gain attention: Cerner, Mediware, Omnicell, and Humedica focus here. Many others coming on radar

• Growing list of BI vendors in healthcare: QlikTech, Carefx, MicroStrategy, Tableau, Panorama, iPeople, etc

Page 9: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Organization Size Profiles

Clinic6%

1-200 Beds12%

201-500 Beds32%

501-1,000 Beds19%

Over 1,000 Beds31%

• Growing number of smaller hospitals utilizing BI (12% this year compared to 7% last year)

• Mid-size hospitals and largest IDNs most common BI customers

Page 10: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Administrative Director/ Manager

5% BI VP/Director/ Manager

8%

CIO10%

Data Warehouse VP/Director/

Manager

7%

Decision Support VP/Director/

Manager

13%Finance

VP/Director/ Manager

8%

IT VP/Director/ Manager

32%

Other C-Suite5%

Performance Improvement VP/Director/

Manager11%

Quality Management VP/Director/

Manager1%

Respondent Job Titles

• Leadership and vision:

– “We had about 10

years of contracted

development, and it

was incremental and

not strategic in nature.

My team basically

rebuilt our whole data

warehouse. Our short-

term objective is

getting that foundation

solidified.” – IT Director

Page 11: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Vendor Performance a Bit of a Ride

88.2

75.3

80.0

75.774.4

76.0

86.3

90.6*

71.3*72.9*

88.3*

82.4*

90.9*

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

~14 Point

gap

between fully

rated

vendors, 19+

points

between all

Page 12: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

One Enterprise Vendor

56%

Multiple Vendors44%

What is your BI strategy?

Many organizations with a goal of moving towards one enterprise actually have multiple in use right now.

Provider Strategies In Focus

Page 13: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Key Selection Criteria

• Clinical, Financial, or Both?

• Usability and Functionality

• Service and Support

• Capabilities– Query and Reporting

– Dashboards and Scorecards

– Data Mining

– Predictive Analytics

• To use a consultant or not

• The Future: Mobile, More Cross-referencing, More Predictive, ACOs

Page 14: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Do You Use BI To Improve Quality of Care?

60%Of those

not doing Clinical BI

plan to do

so16 12

10 17

12

1312

9 78 14

5

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

No

Yes

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KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Vendors Play Best with Specific Groups

0

10

20

30

40

50

60

Over 1,000 Beds

501-1,000 Beds

201-500 Beds

1-200 Beds

Clinic

• McKesson and IBI predominantly in mid-size organizations

• SAP and IBM mostly in largest health systems, rarely in smallest

• DI common in smaller sites

Page 16: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Usability and CapabilityFinding the Right Combination

7.7

6.7

7.77.6

7.1

6.7

7.9

8.3

7.4

7.4 7.4

6.9 6.9

8.1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

Dimensional Insight

IBM Information Builders

McKesson Horizon

SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Ease of Use

Product Works as Promoted

Product Has Needed Functionality

• Usability is often key

• Enterprise solutions offer similar capabilities, but 1) ease of use leads to 2) deeper usage

• Winning combination is intuitiveness with horsepower

• DI and Mediware on the higher end, IBM and Cerner on the lower

Page 17: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Who Helps Best, When Help is Needed

• BI’s complexity means providers often need help

• SAP’s different web support than BO’s caused frustration for many customers

• The larger companies tend to be least proactive

8.0

6.3

7.57.3

5.8

6.9

8.3

7.3

6.1

7.2

6.8

6.1

5.2

7.67.7

6.1

7.27.0

5.8

7.4

8.2

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

Dimensional Insight

IBM Information Builders

McKesson Horizon

SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Quality of Phone/Web SupportProactive ServiceVendor Executive Involvement

Page 18: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Where Consultants Helped

15%14%

22%

0%

5%

10%

15%

20%

25%

30%

Vendor Selection/Strategy Data Warehouse Build Application Implementation

Page 19: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

…And Who Helped

Vendor Selection/Strategy Data Warehouse Build Application BuildACS Business Intelligence Consulting Group Accenture

Bain CBH Consulting, Inc Analytics 8

Dearborn Computerized Facility Integration Analytic Vision

Deloitte Edgewater Aster Group

Deloitte ESI Business Intelligence Consulting Group

Edgewater Hitachi CNE

Encore IBM Edgewater

IMI Infolink Consulting ENSTOA

People Services Center Ingenix Genesis

PwC Revere IDG

Recombinant RSM Infolink Consulting

McGladrey IPC

Tailwind ISA Consulting

Trellis Healthcare JCB Partners

Yardley Consulting Natural Synergies

Ranzal

Revere

RSM

McGladrey

Yardley Consulting

35+ Firms

Page 20: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Vendors’ Market MindshareFor Some, Significant Changes Year over year

• SAP, IBM, and Oracle

still tops in

considerations

• Microsoft down, DI

and McKesson up

• MicroStrategy

receives lots of

attention, few

purchases

22%

4%

4%

7%

16%

4%

2%

22%

2%

18%

16%

31%

42%

38%

6%

6%

6%

9%

13%

14%

14%

16%

19%

19%

27%

38%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Other*

QlikTech

Mediware

MediSolv

Lawson

Microsoft

Dimensional Insight

Cerner

MicroStrategy

McKesson

Information Builders

Oracle

IBM (Cognos)

SAP (Business Objects)

2011

2010

Page 21: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Capabilities in the Eyes of CustomersFinancial Business Intelligence

• Query and Reporting is core use, but strong scoring differences at times

• Trend towards dashboards

• Predictive Analytics still nascent, but many have plans

8.2

7.1

7.7

7.1 7.1

5.8*

7.5

5.5

6.0

6.66.9

7.8

8.2

6.5 6.4

7.0

5.7

6.3*

5.1

2.3

3.5*

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Dimensional Insight

IBM Information Builders

McKesson SAP Mediware (Mainly Clinical)

Query & ReportingDashboards & ScorecardsData MiningPredictive Analytics

Page 22: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Capabilities in the Eyes of CustomersClinical Business Intelligence

7.9

7.1

7.6

6.8

7.3 7.3

7.8

7.1

4.9

6.0

7.1

6.6

5.2

7.77.9

5.5

6.0*

6.8

6.0

6.66.4

5.6

3.0

3.5*

4.8*

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Query & ReportingDashboards & ScorecardsData MiningPredictive Analytics

Page 23: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Advanced BI FunctionalityFor Some, The Future is Now

10

6 412

6

4

4

10

10 615

9

10

6

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Disparate Domains

No

Yes

31 1 2

2

11

5

7

138

7 5

1

3

2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Predictive Analytics

PlanningNoYes

4 2 41

2

21

16

11 25

1311

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinical)

Mediware (Mainly Clinical)

Mobile BI

No

Yes

Page 24: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

ACO Plans

9

9

6

10

10

5

5

8

1

3

9

2

3

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinicals)

Mediware (Mainly

Clinicals)

No

Yes

• IBM and SAP customers highest percent with plans to become ACO

• Larger IDNs and Health Systems, many of them SAP and IBM clients, most likely to have ACO plans

Page 25: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Are You Confident Your Vendor Can Meet

ACO Needs?

8

1

2

4

5

1

2

1

3

4

2

4

2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dimensional Insight

IBM Information Builders

McKesson SAP Cerner (Mainly Clinicals)

Mediware (Mainly

Clinicals)

No

Yes

When it comes to ACO capabilities, DI,

SAP customers most confident;

IBM, Cerner customers least

Page 26: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

Hope this Helps Part the Clouds…

Page 27: Key Considerations When Selecting A BI Vendor - tcbi. · PDF fileKey Considerations When Selecting A BI Vendor ... higher end, IBM and Cerner on the lower. ... SAP (Business Objects)

KLAS Confidential © 2009 KLAS Enterprises, LLC, All rights reserved

QUESTIONS?