In order to drive membership, increase insurance sales, and improve customer satisfaction we have identified integrating Salesforce is the best move. In the past year, UPMC observed growth in their insurance services (10% as mentioned in the Cost Analysis). With this growth comes the business needs to accommodate the growing amounts of customers and the increased sales that will come from them. UPMC’s business requires a personalized upscale CRM system that Salesforce is the best option for. Using Salesforce.com promotes a user-friendly environment that provides real-time analytics that can be extremely useful when it comes to retaining customers and bringing in new business. It stresses an importance on reducing redundancy in calling customers, which is key to retention and prospecting new business. “There are three critical actions organizations can take to encourage digital process innovation: map and then streamline select end-to-end business activities, get a clear view of how information and data are managed across the parent and target companies, and reconsider the organizational structure and operating model” (Mckinsey, 2015).
“Removing fragmentation is key to transforming healthcare. Salesforce can provide a way to track all of it. Salesforce.com creates unique identities to track complex relationships among patients, providers, and their health information data so it can be transmitted securely. Ability to share secure information reduces the need for repetitive tasks.” Find more about SalesForce's contribution in Michigan Health Network here.
UPMC’s Insurance Services Division (ISD), the largest medical insurer in western Pennsylvania, has grown to 3.2 million members and is leading the way with innovative health plans for virtually all segments of society that deliver better quality and lower costs.
UPMC’s operating revenue grew to 13 billion (800 million of this came from UPMC’s ISD), while their operating income was around 310 million (EBIDA 767 million, well above industry standard). Over the last decade, UPMC has reinvested more than 5 billion dollars to upgrade their technology, facilities, and infrastructure towards ensuring top-quality care and the best patient experience as well as long-term sustainability. This makes sense why UPMC would want to implement Salesforce.com into their systems, it fits exactly with what their organization is trying to accomplish. UPMC’s revenue increases yearly as the business grows, the ISD, in particular, is experiencing major growth, Salesforce allows the employees to manage this growth and keep growing while not becoming overwhelmed. This streamlined system can even account for potentially fewer employees needed, which would reduce expenses on salaries. Most importantly it would enhance the customer experience, and this would lead to an increase in the already impressive percentage that UPMC has in retention. The table below shows a breakdown of costs and benefits for ROI.
* Data as per UPMC’s Fiscal Year 2016 report (UPMC, n.d.) and SalesForce’s past success (SalesForce, n.d.)
The benefits that Salesforce.com would bring to the table outweigh the costs. Eliminating fragmentation to make a more streamlined CRM system just makes sense for a Healthcare organization like UPMC. Improving upon what they stand for in giving top quality care and building the infrastructure for long-term stability is what Salesforce.com can do. The costs of implementation are there but as they are shown above they are not overwhelming. Some hidden and recurring costs will be there to be discussed but the tangible benefits outweigh the additional costs. “In the long run, you’d like to spend as little as possible on maintaining and as much as possible on new ways of providing services and using IT to compete” (Austin, 2016). Eliminating the need for separate enrollment platforms, increasing membership and retention percentages, and potentially being able to cut back on salaries all prove to be worth the investment of Salesforce.com.
References:
Mckinsey.com. (2015, July). Putting digital process innovation at the center of organizational change. Retrieved October 19, 2017, from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/putting-digital-process-innovation-at-the-center-of-organizational-change
Salesforce. (n.d.) Salesforce for Healtcare and Life Sciences. Retrieved from https://www.salesforce.com/solutions/industries/healthcare/health-cloud/?d=7010M000001yNc2
CIO.com. (2003, February 1st). Save Time and Money: Outsource Software Implementation. Retrieved October 17, 2017, from https://www.cio.com/article/2440218/outsourcing/save-time-and-money--outsource-software-implementation.html
Austin, Robert D., et al. “Chapter 4 Cost of IT.” The Adventures of an IT Leader, Harvard Business School Publishing, 2016, pp. 65.
UPMC. (n.d.). Financial results FY 2017-Q2. Retrieved from http://www.upmc.com/about/finances/Documents/fy2017-q2-financial-results-media-slides.pdf
UPMC. (n.d.). UPMC Annual Report 2015. Retrieved from https://www.upmchealthplan.com/about/UPMC15_AnnualReport.pdf
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