pentaho business analytics for isvs and saas providers in healthcare

Pentaho Business Analytics for ISVs and SaaS Providers

in the Healthcare Sector

Kevin DobbsManaging Partner, Montclair Advisors

Drew QuinlanDirector of Sales, OEM/ISV - North America, Pentaho

© 2012, Pentaho. All Rights Reserved. pentaho.com. Worldwide +1 (866) 660-7555

Centered around ISV’s (On Premise or SaaS or Hybrid) Selling into the Healthcare Sector

Are Advanced Analytic capabilities important to compete in the industry?

How can I get world class analytic capabilities for my next release?

How do I evaluate all of the choices?

What are other ISV’s in my industry already doing today?

Today’s Focus

Consolidation of Information• Bringing financial, patient & clinical data together

New Data Resources Available to Leverage with Analytics• National health DBs, shared data w/ insurers, etc...

Need for Self-Service Data Discovery Tools• Data is new, analytics is new, needs changing constantly

Ease of Use for Non-Technical Users• Doctors & nurses don’t have the time to become advanced data scientists

along with their other responsibilities.Users are Mobile

• Providers and patientsProfessionalisation Through Metrics & KPIs

• Seeing the patient as a customerBig Data analytics on large and varied data sets

BI Trends in Healthcare

Biggest challenge is data variety

Monitor and manage growing volumes of data for HIPAA compliance

How to leverage all data sets for predictive, pattern & risk analysis

Analyze patient behaviour to optimise processes, reduce re-admissions and provide better care

Big Data in Healthcare

Copyright © 2008-12 Montclair Advisors, LLC Confidential Information

Why Business Analytics Are Critical For Successful SaaS Healthcare Offerings

6Copyright © 2008-2012 Monclair Advisors, LLC. All Rights Reserved.

Growth of Business Intelligence and AnalyticsSaaS offerings continue to be a big market driver

• Business Intelligence platforms to surpass $8 billion in spending per year by 2014 and growing at a rate of 14.4% a year according to Gartner. (see chart below)

• IDC indicates that the SaaS BI market will triple the growth of the overall market, with a compound annual growth rate of 22.4% by 2013.

• A 2012 survey by SnapLogic found that 110 CIO’s intend to implement and expand their BI and Analytics initiatives and that 39% mentioned that this remained their number one priority.

Source: Gartner


Time

Cha

nge

Man

agem

ent

Unaware

Aware

Understand

Positive Perception

Initial Use

Adoption

Institutionalization

Internalization

Preparation

Perception

Acceptance

Commitment

Go Live

Communication

Training

Support

Delivering a Superior Customer ExperienceUnderstanding the importance of adoption and consumption

Source: Product Adoption and Consumption Curve. Appirio, 2012


Business Intelligence and Analytics Improve Customer SatisfactionDelivering more compelling products

• Improve customer adoption and consumption > renewals

• Faster access to data and self-service

• Mobile and tablet solutions

• Lower TCO and COGS

• Big Data solutions

Top Benefits of an Embedded BI Strategy:

•Speed of adoption/ ease of deployment: 53%

•Ability to tailor analytical functionality: 31%

•Cultural and process improvements: 30%

•Add value to existing software deployments 27%

Source: Aberdeen Group, 2012

Top Benefits of an Embedded BI Strategy:

•Speed of adoption/ ease of deployment: 53%

•Ability to tailor analytical functionality: 31%

•Cultural and process improvements: 30%

•Add value to existing software deployments 27%

Source: Aberdeen Group, 2012


Buy vs. Build for OEM Software 5 year Total Cost of Ownership comparison for BI/Analytics platform

• Lower costs to start with but significant savings over a 5 year time period– Less FTE’s and infrastructure required– Software is up-to-date– Available support and training

• Comparing small, medium and large use cases > Was lower TCO with a OEM software solution than an in-house build over 5 years

Source: SaaS TCO Modeler – Montclair Advisors, 2010-2012


Importance of Cost of Goods Sold Maturity model illustrates that keeping embedded costs low, can increase profits

Source: OPEXEngine and Montclair Advisors 2010-2012

39.0% 35.3% 28.0% 33.0%

28.4% 23.1%17.1% 15.0%

77.3%

40.9%33.1% 26.2%

42.0%

20.5%

22.5%14.6%

-86.7%

-19.8% -0.7%

11.3%

-100.0%

-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

<$10M $10-50M $50-100M >$100M

Start-up Build-up Profitability Scale

Income(Loss)

G&A

Sales & Marketing

R&D

Cost of Goods Sold (COGS)


Healthcare IT Things are really changing!

Image: Courtesy of Athenahealth, 2012


Healthcare in the CloudUse case examples

Hospital Communications

Electronic Medical Records

Consumer Healthcare Apps

Healthcare Information Exchanges


SaaS BI/Analytics Selection ConsiderationsMontclair Advisors recommendations

• Strongly consider standards-based solutions– Minimize risks– Larger skills pool– Reduce chances of lock-in

• Flexible business terms – Very important to line of business and finance executives– Willing to grow with your BI/Analytics product or initiative

• Strong relationships – Look for a track record of successful on-boarding– Training, tools and templates– Active, on-going support


Montclair Advisors provides customized Software-as-a-Service advisory services designed to help SaaS-based andnon-SaaS-based software companies optimize their business models, improve revenues, control costs and deliverworld-class software. Montclair also develops the leading report on the Top 250 SaaS companies globally and providesstrategic expertise that is trusted by industry leaders. The firm offers valuable perspectives and a focused set ofSaaS-related service solutions including strategy, revenue, and products. The result allows software companies toimprove competitiveness, revenue performance and profitability. Founded in 2008, Montclair Advisors has an eliteclientele including CA Technologies, Ceridian, Infor, Novell, Oracle, Red Prairie, SuccessFactors, and Xactly.

Worldwide Inquiries: Contact:Phone: +1.510.336.0019 Kevin Dobbs, Managing PartnerMobile: +1.510-967-9229 [email protected]

www.montclairadvisors.com [email protected]

Follow us at Montclairadvrs

Subscribe to our blog Smart SaaS at www.montclairadvisors.com/blog

TechnologyWill this technology do what our industry needs it to do?Can this be a competitive advantage for us?

PartnershipIs this a company we want to stake our future success on?Is this a company that understands and has experience in our sector?

Business TermsCan I make more money doing this?Can I win additional market share?Do I have to change the way I am licensing or contracting today?

Foundation of Pentaho OEM Program

Technology

16© 2012, Pentaho. All Rights Reserved. pentaho.com. Worldwide +1 (866) 660-7555

Open ArchitectureModular and pluggable, built to be extended.Lightweight and modern.

Open Standards100% Java, you already have expertise in house.Widely used technology.

Open SourceView the source code so extending is easy.Don’t get locked into vendor release cycles.

Achieving Critical MassOver 10000 deploymentsOver 1200 commercial customersLarge partner ecosystem: Red Hat, EMC, Cloudera, …

Technology/Innovation Track RecordFirst fully integrated BI and Data IntegrationFirst analytics for Big Data/HadoopFirst Mobile BIFirst Agile BI

Premium Production Support World-class support software: ZenDeskExceptional SLAs for your L3 support

“Pentaho exceeds its peer group in Quality and Value of Consulting Services. It was recommended by 100% of its customer respondents.”

Source: Howard Dresner “Wisdom of Crowds” report, 2010

One Download Every 30 Seconds

Partnership

Development Enablement (Required)Extension of product support, enabling developersProduct experts with knowledge of APIs & architectureProactive monthly calls to discuss roadmap & progress

Architecture Workshop (Required)Architecture, best practices & techniquesJointly developed architecture & implementation strategy by Pentaho architect & partner

Tailored OEM Training Class (Required)Deep understanding of architecture & extension pointsKnowledge to support and troubleshoot the integrated solution

Partnership = Development Handholding

Your Model: On Premise or SaaS?Single contract from PentahoFlexible subscription based pricing useable across all deployment models

How Do You License Your Product?We want to match itCustom metrics and custom pricing available

Terms and Conditions?Open to all reasonable ISV/OEM industry standard Terms & ConditionsNo need to change or update your EULA in most cases

Business Terms

Pentaho Users in Healthcare Today

20© 2012, Pentaho. All Rights Reserved. pentaho.com. Worldwide +1 (866) 660-7555

ClinicalExcellence

Improving Patient

Satisfaction

Compliance

Financial Management

•Improve Operational Efficiency•Eliminate costly, manual and delayed report generation•Behavioural analysis•Pattern & risk analysis

•Outcome of care analysis•Clinical service excellence through access to information for better decisions•Sharing of patient information through the treatment lifecycle•Reduce Patient waiting times

•Avoid fines / litigation•Maximise available public funding •Provide Social and Public Information• Fraud detection and prevention

• Resource & staff planning• Optimise supply chain•Understand patients/procedures/revenue• Manage claims & reimbursements

NursesAnalyzing patient waiting times

Predictive Healthcare AnalystPreventive medical treatment for high risk patients

Finance AnalystFull financial performance visibility for each facility to optimize operational costs

Doctors & NursesBetter patient care, compliance & cost metrics through analysis of big data streams of clinical data

Centered around ISV’s (On Premise or SaaS or Hybrid) Everything today was relevant to software providers in the healthcare industry.

Are Advanced Analytic capabilities important? Extremely so. You are losing to others that have them today or missing a huge

strategic advantage. The amount of data in healthcare is already huge and it is expanding at an incredible rate.

How can I get them? Buy them, don’t build them yourself.

How do I evaluate them? Find the right technology, the right partner and the right business terms.

What are other ISV’s already doing today? Many are already embedding Pentaho. (8 Week GTM Program)

Today’s Focus In Closing

pentaho business analytics for isvs and saas providers in healthcare

Documents

data varietymonitor

customerbig data analytics

big data solutionscultural

varied data sets

advanced data scientists

growing volumes of data

shared data w insurers

business analytics arecritical