sap implementation in chr and chu hospitals (liège)

SAP implementation in CHR and CHU hospitals (Liège )

NRB SAP Day

Benoit Degotte, CFO 06/10/2016Brussels

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Business Case

Presentation C.H.R.de la Citadelle – C.H.U. Liège1

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The ERP4HC project3

Conclusions4

Age

nda

Needs Initial steps Selection criteria Challenges Key success factors

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1 Presentation C.H.R.de la Citadelle – C.H.U. Liège

Site Citadelle (site principal)

Site de Sainte Rosalie

Site du Château Rouge Site du Valdor

Site admin des Hauts Sarts Site du CIMC

Site du Sart Tilman

Site N.-D. des Bruyères

Site Ourthe-Amblève

Polyclinique Lucien Brull

Polyclinique Sauvenière

Polyclinique d’Aywaille

Site de Grivegnée (entrepôt gros

volumes)

Site de Chênée (achats et

logistiques)

600 doctors400 doctors

+1000 beds 925 beds

3500 employees 5000 employees

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Business Case


2

The ERP4HC project3

Conclusions4

Age

nda


5

Business Model Canvas

ROI drivers• S

trategic

• Productivity• Operational

Valuation Method• Q

uantitative• Qualitative

ROI drivers analysis

Business Case

2 Business Case : Four insights

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2 Business Model Canvas Healthcare

Physicians

MedicalNetwork

Suppliers

ParastatalAgencies

Donors & Granting bodies

Governmental & Non-

Governmental

Organisations

Provide Full

Range of HealthCar

e

Develop Supply

Chain of Medicines

Train HealthCare Workers

Collect and Share Medical

Data

Hospital Facilities

Internal & External Staffing

Agreements with

Government

Medical Assets

Information systems

Dedicated Personal

AssistanceResidential

& Ambulatory

Care

Curative Care

Patient

Preventive Care Patient

Patient Portal

Social Medias

Website

Physical contacts

in infrastruct

ures

Provide Data on

HealthCare

Provide Curative

HealthCare Services

Provide Preventiv

e HealthCare Services

Insurance Financial

Contribution

Patient Financial

Contribution Parastatal Financial

Contribution

Public Funding

Donors & Donations

Supplies Amortization &

Depreciation

OperationsPhysicians

FeesStaff

Salaries

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2 Business Model Canvas Healthcare

Physicians

MedicalNetwork

Suppliers

ParastatalAgencies

Donors & Granting bodies

Governmental & Non-

Governmental

Organisations

Provide Full

Range of HealthCar

e

Develop Supply

Chain of Medicines

Train HealthCare Workers

Collect and Share Medical

Data

Hospital Facilities

Internal & External Staffing

Agreements with

Government

Medical Assets

Information systems

Dedicated Personal

AssistanceResidential

& Ambulatory

Care

Curative Care

Patient

Preventive Care Patient

Patient Portal

Social Medias

Website

Physical contacts

in infrastruct

ures

Provide Data on

HealthCare

Provide Curative

HealthCare Services

Provide Preventiv

e HealthCare Services

Insurance Financial

Contribution

Patient Financial

Contribution Parastatal Financial

Contribution

Public Funding

Donors & Donations

Supplies Amortization &

Depreciation

OperationsPhysicians

FeesStaff

Salaries

PP

P

PP

P

P

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Strategic2 BMC : ROI Drivers for an ERP

Physician Fees

Accounting

Standard Hospital Business Processe

s

Information

Security

SaaS-Based ERP

Solution Merger,

Acquisition & Regrouping

Processes & Services oriented

organization

Enable Hospital

of the Future

Enable Financial

part of Patient Portal

Financial Performanc

e optimizatio

n

Financial Performanc

e optimizatio

n

Asset Manageme

nt

Integration with External Systems

Procurement Process

Apps & Systems Decommissionin

g

Accounting &

Financial Close

Accounting &

Financial Close

Single Data Entry

Inventory

Spent Analysis

Spent Reduction

Invoice to Pay

IT Operations & ServicesFinancial Performance Managemen

tTreasury & Financial Risk

Management

Treasury & Financial Risk Management

Financial Performance Managemen

t

Productivity

Operational

9

Enhance

Effectiveness

Reduce

Improve

Time efficiency

MinimizeOptimize

Cost efficiency

Enable

Innovation

2 ROI Driver Analysis

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Financial Performance Optimization will enable:- Conduct predictive Financial Management- Benchmark financial performance with external

healthcare players- Optimize financial ratio’s- Free-up budget

And will lead to:- Continuous reporting- Real-time analytics- Improved reporting reliability

Enhance

Effectiveness

EnableInnovation

2 Main Driver : Financial Performance Optimization

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The spent analysis & reduction will enable to:- Identify suppliers classes by volume & value- Improve the negotiation position- Potentially reduce the number of suppliers- Optimize consumption- Improve inventory rotation

And will lead to:- Minimal 3% less spending in purchase- Recurrent savings- Strategic Vendor Management- Administrative simplification

Minimize

Optimize

Cost efficiency

EnableInnovation

2 Main Driver : Spent Reduction & Analysis

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Process & Service Oriented Organization will enable to:- Implement cross-departmental SLA’s- Apply lean management principles- Define process based roles

And will lead to:- Measured Services performance- Operational excellence- Enhanced internal & external stakeholders’ satisfaction- Improved human resources allocation

Minimize

Optimize

Cost efficiency

Reduce

Improve

Time efficiency

2 Main Driver : Process & Service Oriented Organisation

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The Single Data Entry & Information Security will enable to:- Simplify exception management- Conduct in-depth budget control- Comply with legal requirements- Lower risk level

And will lead to:- Higher level of data quality- Traceability & fraud detection- Single version of the truth- Higher productivity

Minimize

Optimize

Cost efficiency

Enhance

Effectiveness

2 Main Driver : Single Data Entry & Information Security

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ROIBusiness ModelCanvas

Valuation Method Benefit Impact Metric

Productivity Cost Quantitative Invoice to pay & invoices dematerialization

Staff optimizationLess outstanding

#FTE#days outstanding

The Invoice to Pay process will enable:- To reconcile invoice & purchase orders in an automated way- To limit manual reconciliation to the exceptions - To have a better control on the payment schedules- To reduce the number of errors and disputes

And will lead to:- Free up workforce for other tasks - Potential staff optimization- Better control on the treasury- Systematic use of the procurement process

2 Main Driver : Invoice to Pay & Invoices Dematerialization

Minimize

Optimize

Cost wise efficiency

Reduce

Improve

Time efficiency

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ROI Business ModelCanvas


Operational Key Resources Quantitative Asset Management Life-cycle management

# € (cost savings & investment optimisation)

The centralized asset management will enable:- To manage all assets in a comprehensive way- To plan investments based on defined life-cycles- To optimize maintenance schemes- To reduce the number of equipment failures

And will lead to:- Replacement and rehabilitation investment smoothing- Recurrent savings on maintenance- Equipment standardization

2 Main Driver : Asset Management

Minimize

Optimize

Cost efficiency

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Strategic Partnerships Qualitative Physicians’ Fees Accounting

Enhanced confidence & transparency

Partner satisfaction; Staff attraction & retention

The Physicians’ Fees Accounting module will enable:- To apply a systematic and correct fees calculation

in a centralized and comprehensive way- To book timely the calculated fees- To reduce the number of errors and disputes

And will lead to:- A full control of the physicians fees either

by the hospital or by the physician- More confident relationship- Enhanced hospital reputation

2 Main Driver : Physicians’ Fees Accounting

Minimize

Optimize

Cost wise efficiency

Reduce

Improve

Time efficiency

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Strategic Value proposition Quantitative Enable hospital of the future ReadinessOperational excellence achieved by IT landscape integration

Strategic Channels Qualitative Financial follow-up through Patient Portal

Administrative simplification; Access to additional information

Customer satisfactionLess burden for admin employees

Strategic Key Resources Qualitative Information security Legal compliance; Fraud detection Lower risk level

Strategic Cost & Revenue Qualitative Financial Performance OptimizationPredictive financial management enables benchmarking

Data qualityReporting reliability

Strategic Key Resources Qualitative Process & Service-Oriented Organisation Inter-departmental SLAs Service levels

Strategic Partnerships Qualitative Physicians’ Fees Accounting Enhanced Confidence & transparency

Partner satisfactionStaff attraction & retention

Strategic Key Resources Qualitative Merger, Acquisition & Regrouping Facilitate and accelerate integration

#days (reduced time for scale benefits)

Strategic Key Resources Qualitative SaaS-based ERP solution Evolutive best practices Improved operational excellence

Strategic Key Activities Qualitative Standard Hospital business processes Process Simplification Service levels

2 Strategic ROI drivers

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Productivity Cost Quantitative Spent analysis Strategic vendor management

# vendors€ cost of purchased goods

& services

Productivity Cost Quantitative Inventory Optimized stock levels € stock (stock rotation)

Productivity Cost Quantitative Spent reduction Optimized consumption € savings

Productivity Cost QuantitativeInvoice to pay (automated workflow & invoice dematerialization)

Staff optimizationLess outstanding

# FTE# days outstanding

Productivity Cost Quantitative Single data entry

Higher level of Data QualitySimplified exception managementTraceabilityBudget controlling

# errors# FTE

Productivity Cost & Revenue Qualitative Financial Performance Management Financial analytics # days for reporting

Productivity Cost & Revenue Quantitative Treasury & Financial Risk Management Optimized cash flow €

Productivity Cost Quantitative IT Operations & Services (SaaS – model) IT costs reduction €

# FTE

2 Productivity ROI drivers

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Operational Cost Quantitative Controlled & simplified procurement process Lean process €

# days (lead time)

Operational Cost Quantitative Decommissioning of applications & systems IT cost reduction €

Operational Cost & Revenue Quantitative Accounting & financial close Financial soft close # days

Operational Cost Quantitative Integration with external systems IT cost reduction €

Operational Key Resources Quantitative Asset Management Life-cycle management

# € (cost savings & investment optimization)

2 Operational ROI drivers

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Business case


2

The ERP4HC project3

Conclusions4

Age

nda


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HARPEGE « HARmonisation des Processus et Excellence en GEstion » 3 The ERP4HC project

Needs Selection criteria Key success factors

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IT landscape

modernisationInformation flows

rationalisation

Transparency of operations through all

business processes

Seamless access to data

Document Management System

Better cost controls

Traceability

Reporting

Flexible, scalable and open solution

Meet changing legal requirements

Meet organizational changes

3 The ERP4HC project NEEDS

Multi-site

Multi-shop

Multi-user

Multi-chart of accounts

Multi-period

Multi-language

Multi-currency

Process alignment on market best practicesAdopt, not adapt

Replace various tools by one integrated toolReduce errors - Speed up processes - More transparency - More reliable information - Simplified maintenance

Scope : Procurement & Finance

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12/12 2014• Information session related to the

Request for proposal (24 candidates – 7 attending)

30/01 2015 • Opening of the offers and qualitative

selection (4 offers retained)

05/05 2015• Presentation of the different offers –

formal & material examination (3 offers considered)

26/05 2015• Comparative analysis comparative of

admissible selection (2 offers analysed)

With an external company for “Assistance à la maîtrise d’ouvrage” 3 The ERP4HC project INITIAL STEPS

SCORING Poids Note offre de base

Note Variante obligatoire

Critères détaillés pour évaluer la qualité technique de l’offre 20 19.5 19.5Qualité fonctionnelle de l’offre 20 14.5 19.5Qualité technologique de la solution, notamment sur le plan de l’intégration avec l’architecture applicative et technique du CHU et/ou du CHR 20 12.6 18

Approche méthodologique, gestion de projet en terme d’implémentation, de lanning, de formation, de transfert de connaissances et de compétences 6 3.7 5.7

QUALITÉ TECHNIQUE DE L’OFFRE 66 50.3 62.7PRIX 34 23 21.9

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The Harpège project3 The ERP4HC project SOLUTION SELECTION

Xperthis’ ERP4HC solution

Based on SAP (ERP worldwide leader)

Already in place in 50 Belgian hospitals

To be Hana technology (in memory)

To be SaaS mode at NRB

Very Good hospital functionalities coverage

Solution confidence (Processes demonstration)

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The Harpege project3 The ERP4HC project PLANNING

Phase 1PréparationConception généraleRéalisationValidationFormation utilisateursPréparation finaleGo liveSupport phase 1OpérationsPhase 2 (pharma, 3P, portails)RéalisationValidationFormation utilisateurs Ph 2Préparation finale Phase 2Go live Phase 2 Support Phase 2

Mar.Oct. Nov. Dec.2016

Juil. Août Sept.Mai Dec.2017

JuinJan. Fév Mar. Avr.Oct. Nov. Dec. Avr. Mai JuinJan. Fév. Juil. Août Sept. Oct. Nov.

April 2017 : Finance and Procurement

November 2017 : Integration pharma

Patients and suppliers portals

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Common suppliers’ database

Product information (articles)

Chart of accounts

Anal

yti

cal

str

uct

ur

e

Reference data

The Harpege project3 The ERP4HC project PREPARATION

Data migration

Workshops to harmonise the source data before project launch

Common working site for migration of common reference data

Carried out in S1 2015Restitution on 10/09/2015

SPF SOUS-DISCIPLINE SITE PROJET

xxx xxx x (xxx)

Sous-discipline

Discipline

Groupe

QUI ?

QUOI ?

CF - SPF

OU ?

POURQUOI ?

SITES

PROJETS

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Important change• Organizational• Functional

Innovation

Centralized management of repositories

Purchases relay (purchase requisition) in services

Workflows

Integration in an hospital ecosystem•EPR•TarFac•Patients and suppliers portals•Labo & Pharma

3 The ERP4HC project CHALLENGES

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Prince2-basedSteering committee

• Strategic decisions• Monthly meetings

Project committee• Weekly meeting• Operational decisions

Working groups• Ad-hoc meetings• 50 key users• Functional and technical

decisions

Governance & methodology User identification

• Project Team : • Key users (50)• Contributors/Change

agents (140)• Final users (800)

Communication channels• Meetings (Kick-off,

monthly information meetings, …)

• Newsletter• Intranet• SharePoint website (

www.harpege.be)• Documentation• Contacts list• Agenda• …

• Roadshow for management

Communication strategy

Change management

Integration

3 The ERP4HC project KEY SUCCESS FACTORS

Dedicated Team

Training• Train the Trainer

• Training men/day (350)

• Training Sessions (50)

Less is More Policy

Specific Testing

http://www.harpege.be/

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Business case


2

The ERP4HC project3

Conclusions4

Age

nda


30

4 Conclusions

Strategic project support from top managementAdopt a solution risk & change management

ERP is a tool for all players in the hospital - from the Management Committee to the nurses to physicians...

The sky is the limit …

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Thank you !