Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management
This case considers the process of organizational transformation undertaken by Partners Healthcare System (PHS) since the 1990s as their hospital and affiliated ambulatory medical practices have adopted both EMR and CPOE systems. Encompassing a strategic investment in information technologies, wide-spread process change, and the pervasive use of institutional clinical decision support and knowledge management systems, this story has been 15 years in the making, culminating in 2009 with the network-wide use of EMR and CPOE by all PHS doctors. These developments in turn opened the door to the redefinition of services delivery and to the replacement of established therapies through the leveraging of the knowledge residing in 4.6 million now-digitized PHS patient records. As such, the PHS experience serves as a window into how one organization strove to address the daunting challenges of 21st century health care services information management, as a template for success in the implementation of large-scale information systems among research-based hospitals across the United States, and more broadly as a learning platform for industry executives in their efforts to transform health care delivery through data and knowledge management.
Swot Analysis of "Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management" written by Richard M. Kesner includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Phs Cpoe facing as an external strategic factors. Some of the topics covered in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management case study are - Strategic Management Strategies, IT and Technology & Operations.
Some of the macro environment factors that can be used to understand the Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management casestudy better are - – cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, talent flight as more people leaving formal jobs, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings,
increasing energy prices, increasing commodity prices, etc
Introduction to SWOT Analysis of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Phs Cpoe, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Phs Cpoe operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management can be done for the following purposes –
1. Strategic planning using facts provided in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management case study
2. Improving business portfolio management of Phs Cpoe
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Phs Cpoe
Strengths Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Phs Cpoe in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management Harvard Business Review case study are -
Diverse revenue streams
– Phs Cpoe is present in almost all the verticals within the industry. This has provided firm in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Phs Cpoe in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Technology & Operations field
– Phs Cpoe is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Phs Cpoe in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Phs Cpoe is one of the leading recruiters in the industry. Managers in the Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Phs Cpoe in the sector have low bargaining power. Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Phs Cpoe to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Phs Cpoe
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Phs Cpoe does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Phs Cpoe has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Phs Cpoe has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Highly skilled collaborators
– Phs Cpoe has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Phs Cpoe is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Phs Cpoe is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Phs Cpoe is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Richard M. Kesner can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Technology & Operations industry
– Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management firm has clearly differentiated products in the market place. This has enabled Phs Cpoe to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Phs Cpoe to invest into research and development (R&D) and innovation.
Weaknesses Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management are -
High bargaining power of channel partners
– Because of the regulatory requirements, Richard M. Kesner suggests that, Phs Cpoe is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Phs Cpoe has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Phs Cpoe products
– To increase the profitability and margins on the products, Phs Cpoe needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Phs Cpoe, firm in the HBR case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management, is just above the industry average. Phs Cpoe needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Phs Cpoe is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Phs Cpoe needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Phs Cpoe to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Interest costs
– Compare to the competition, Phs Cpoe has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Need for greater diversity
– Phs Cpoe has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Phs Cpoe has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Phs Cpoe has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management are -
Manufacturing automation
– Phs Cpoe can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Phs Cpoe can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Phs Cpoe can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Leveraging digital technologies
– Phs Cpoe can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Phs Cpoe is facing challenges because of the dominance of functional experts in the organization. Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Phs Cpoe in the consumer business. Now Phs Cpoe can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Phs Cpoe to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Phs Cpoe has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Phs Cpoe to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Better consumer reach
– The expansion of the 5G network will help Phs Cpoe to increase its market reach. Phs Cpoe will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Phs Cpoe can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Phs Cpoe can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Phs Cpoe can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Phs Cpoe can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Phs Cpoe to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Phs Cpoe.
Stagnating economy with rate increase
– Phs Cpoe can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Phs Cpoe demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Shortening product life cycle
– it is one of the major threat that Phs Cpoe is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Phs Cpoe needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
High dependence on third party suppliers
– Phs Cpoe high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Phs Cpoe in the Technology & Operations sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Phs Cpoe can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Regulatory challenges
– Phs Cpoe needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Phs Cpoe will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Phs Cpoe has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Phs Cpoe needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Phs Cpoe business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Partners Healthcare System (PHS): Transforming Health Care Services Delivery Through Information Management is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Phs Cpoe needs to make to build a sustainable competitive advantage.
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