Doing More With Less Non-Traditional Approach To IT Dr Alan Lloyd Chief Systems Officer Sonic Healthcare Group The Sonic Group • • • • • • • Pathology & Radiology Service Provider 15 Yrs.

Report
Doing More With Less
Non-Traditional Approach To IT
Dr Alan Lloyd
Chief Systems Officer
Sonic Healthcare Group
The Sonic Group
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Pathology & Radiology Service Provider
15 Yrs in business & ASX listing
A$1bn Revenue
37% growth in revenue
20% growth in earnings
10,000 employees
Operational in :
• Australia
• New Zealand
• United Kingdom
• Hong Kong
Sonic Healthcare Pathology
Laboratories
TDL UK
40,000 PATIENTS / DAY
Pathology & Radiology is Big Business
• Major Laboratories in:
– Sydney (Douglass Hanley Moir)
– Brisbane (Sullivan Nicolaides)
– Melbourne (Melbourne Pathology)
– Auckland (Diagnostic Medlab)
• 40,000 Patient samples a day
• Over 100,000 Tests daily
• Aging Population:
– Today
6:1
– By 2031
3:1
I.T. is Integral to Sonic Operations
SONIC I.T. POLICY
• OWN AND CONTROL I.T.
SYSTEMS
 SOFTWARE
DEVELOPMENT
 INFRASTRUCTURE
 SUPPORT
 Automation
General Workflow Principles
Management
Innovation
Feedback
Benchmarking
KPI’S
INPUT
OUTPUT
$$ WORK $$
The ‘Challenge’
• Concentrate Resources on
the ‘Strategic Initiatives’
• Incorporate ‘Best Practice’
and standardise
• Enable continuous
improvement
• Provide excellent
customer service
• Reduce the ‘Per Patient’
cost of I.T.
IT Spending as
Percentage of
Revenue
Telecommunications
12.5
Financial Services
9.7
Health Care
3.7
Manufacturing
3.3
Utilities
2.6
Retail
Mining
1.7
1.0
Choose The Right People & The Right Technology
Benchmarking
• Compare I.T. Costs
• Choose the Best System
• Standardise
300%
DB2
CACHE
UNIFY
8 LABORATORIES
• Why Cache?
– High Performance
Multidimensional
Database
– Outperformed Relational
Databases
• 5 Times Less
processing Power
• Ten Times Less
Storage
Complete Flexibility with One
Technology
“THIN CLIENT”
Web Environment
“CSP”
“THICK CLIENT”
Development
Environment
CHUI
Native
‘M’
OBJECT
ARCHITECTURE
SQL
ODBC
Multidimensional
Database
SONIC I.T. MANAGEMENT
Tightly Coupled To Business
Development
CEO
SITEC
CFO COO CSO
SITM
HR & Marketing
Development Methodology
SITEC
Projects
PMG
SITM
BDU’s
Business Analysts
Programmers Analysts
RFC
High Level Control – Law of
Diminishing Returns
GAIN
$$ WORK $$
Example of our Rapid
Development
• 2001 Radiology
• The Requirement:
– Web based RIS
– Competitive price
– Competitive functionality
– Electronic Transmission of
Results
• From vision to implementation
in less than 12 months
• Cache Server Pages (CSP) is the
core technology
IT Standardisation
1998
1999
2001
2000
2002
2003
2004
TASMANIA
CAPITAL
CAP/BARR/
SAT
WAGGA
BARRATTS
COOLUM
Y2K
FIVE YEAR
PLAN
CLINPATH
MELBOURNE
SOUTHERN
CLINIPATH
SNP
DHM
RIS QXR
CASTLEREAGH
SKG
ILLAWARA
HIG
Outcomes
• 30% less investment on technology than the
industry norm
• Very high Operational Responsiveness
• Our Technology Platform positions us for
growth
• Retaining the IP - Development of systems to
support the core operations are all in-house
• In Australia our IT operation - 53 people
supporting a market share of 44%
Doing More With Less
• Technology is part of our business culture and
the business culture is part of IT
• Business Productivity Improvement is
founded on our IT Core Competence.
• Ownership ensures Retention of IP
• Removed the translation of the business
requirements into IT through involvement of
the BDU’s
• High level executive control
PRODUCTIVITY AND DIFFERENTIATION
COST
ADVANTAGE
DIFFERENTIATION
ADVANTAGE
W I D E N THE M O A T
The Non Traditional Approach to
IT
“It is our belief that unique Sonic operational
models, including workflow, laboratory design and
computer software, may be used to the company’s
advantage in suitable offshore markets.”
Dr Colin Goldschmidt
Managing Director

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