Business Intelligence System in the Jefferson Medical Centre

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Abstract

Business Intelligence System (BIS) is a fundamental tool that makes businesses enhance strategic competitive advantages. This paper demonstrates the advantages of implementing a business intelligence system to monitor employees’ productivity, and monitoring employees’ performances provide a unique tool for measuring organizational performances. The report reveals that Jefferson was facing unique challenges of monitoring employees’ performances, however with the implementation of BIS, Jefferson medical center can improve its financial performances, employees’ efficiencies, and overall management strategic decisions.

This report enhances the knowledge of business managers, government, and scholars on the advantages of business intelligence systems on the performances of business organizations.

Introduction

The increase in competition in the business environment has mandated business organizations many business organizations to initiate a policy of Business Intelligence system (BIS) into their business strategic decision to enhance business competitive advantages. Businesses have realized that modern business transactions have seen the need to document their transactions using automated methods, and there are needs for managers to be informed on the day-to-day of their business organizations to be able to make informed decisions. (UQS, 2009). Afolabi and Thiery define Business Intelligence System as the process of collection, treatment, and diffusion of information to reduce uncertainty in the making of business strategic decisions. (Afolabi, Thierry nd). A strategic decision is what enhances business performance. Business Intelligence System aids management to make an informed decision, through analytical tools, and techniques for conducting data analysis. (UQS, 2009).

The main objective of this research is to examine the case study of Jefferson Medical Centre in the implementation of business intelligence (BI) software for the improvement of its business performance. Typically, BIS permits management to implement a relational data warehouse, where relational database management can allow the organization to access multiple data to aid the decision-making process. (Afolabi, Thierry nd). It should be noted the decision of Jefferson Medical center in the implementation of business intelligence has improved its business performances and has increased its critical business accomplishment. (Anderson-Lehman, et al nd).

The rest of this paper is structured as follows:

First, the paper examines key drivers and business cases for implementing a business intelligence system at Jefferson Medical Centre.

Additionally, the paper examines the key challenges that Morie Mehyou would have faced in

Implementing a business intelligence system at Jefferson Medical Centre.

Moreover, the research analyses two key factors which Jefferson Medical Centre needs to consider to maximize the utilization of its business intelligence system.

Furthermore, the paper provides the criteria Jefferson Medical Centre can use to measure its business performances using a business intelligence system

Finally, the research designs a basic balanced scorecard with one key objective and an associated key metric for each of the four dimensions of the balanced scorecard.

The decisions of Jefferson Medical Centre to implement a business intelligence system are to measure productivity, next section provides key drivers for the implementation of BIS at Jefferson Medical Centre.

Key drivers and business case for implementing business intelligence

The system at Jefferson Medical Centre

Jefferson Medical Centre was influenced to implement a business intelligence system because of the problems that Jefferson Medical Centre experienced when the organization faced some unique challenges with the increase in the number of patients in the hospital. However, most of these patients were low-income patients, and Jefferson Medical Centre did not have health care new technology to improve its services. Moreover, employees’ productivity was very critical to organizational performances, but Jefferson Medical Centre did not have an adequate facility to monitor employee productivity. (Tan, Lane, 2009). As being argued by Jones and Kato (2003) employee productivity is a fundamental tool in measuring organizational performances, and to measure firms’ performances, there is a need for a modern method of measuring productivity through enhanced efforts of employees. (Jones, Kato, 2003).

Thus, Jefferson Medical Centre did not have a modern method of measuring employee performances and overall organizational performances. These factors also affected management decisions on strategic issues of the company. Moreover, Jefferson Medical Centre had problems with modern methods of data storage, and data retrieval, which can enhance management performances. Jefferson largely relied on the outdated main frame of retrieving data such as paper reports, and financial statistics, and data retrieved from the mainframe may be up to two months olds, and these types of data could not inspire confidence, nor improve productivity. (Tan, Lane,2009).

It should be noted that for businesses to properly analyze data, and make an analytical business decision, there is a need for the implementation of an automated computer system that can enhance organizational performances. Using standard automated specialized software will allow a large volume of data to be extracted and processed, and will increase the speed at which information is available for management decision making. (UQS, 2009).

Thus, the management of Jefferson Medical Centre believed that with the implementation of a business intelligence system, management would be able to measure employees’ productivity and organizational performances. At the same time, Jefferson Medical Centre would be able to have access to reliable financial data that would enhance management strategic decisions. (Tan, Lane, 2009).

However, it is well understood that Business Intelligence can increase analytic management decisions, however, there are still key challenges in the implementation of business intelligence. The next section discusses challenges Jefferson would have faced in implementing business intelligence.

Key challenges that Morie Mehyou would have faced in implementing a business intelligence system at Jefferson Medical Centre

This section examines the key challenges Morie Mehyou would have faced in implementing a business intelligence system at Jefferson Medical Centre.

Some of the key challenges are as follows:

First, a major challenge that Morie Mehyou would have faced is a technical challenge. Typically, the technical challenge in implementing BIS involves the design cost of the real-time warehouse of business intelligence, it should be noted that processing transactions are complex, which requires aggregating data into analytic information. (Band, 2003).

It should be noted that Jefferson Medical Centre relied on funding from government and insurance payment and this was reflected from Morie Mehyou’s statement as he said “As the hospital has no private endowment, it relies for funding mostly on government and insurance payments – not exactly cash cows. At the same time, Jefferson is constantly trying to invest in new healthcare technology and improve its services. Productivity is critical,…..but there was a problem.” (Tan, Lane, 2009, p 21).

Another technical challenge that Morie Mehyou would have faced was the management of the data warehouse. The warehouse requires an experience database administrator for the management of BIS. The database administrator must have strong technical skills in software, and networking to be able to manage the data warehouse of Jefferson Medical Centre. Apart from this, a database administrator should possess a strong understanding of business and decision-making to support the data warehouse of Jefferson Medical center. The requirements of the database administrator to manage the warehouse of the business intelligence system would have been a challenge to Morie Meyhou.

Another technical challenging issue of the implementation of the business intelligence system was the security and privacy of the data warehouse. It should be noted that information security is essential to maintain adequate privacy of data warehouse. Data in the warehouse are very sensitive for Jefferson Medical Centre. Without adequate security, a hacker may invade the data warehouse of any organization, and rendering data invaluable. Thus, providing adequate corporate security for the business intelligence system would have been a key challenge to Morie Meyhou. Providing adequate securities include techniques to restrict access to a data warehouse, and establishing effective corporate internal control to maintain adequate security and privacy. (UQS, nd).

Apart from technical challenges, Morie Meyhou would have also faced socio challenges in implementing business intelligence system for Jefferson Medical Centre. Morie Meyhou would have faced challenges of convincing employees of Jefferson Medical Centre that implementing business intelligence system would not affect their employment. It should be noted that there is general belief that a computer can do what thousands of people will do in year, computer will do within a day. With this general belief that implementing business intelligence system can result to lay off worker. Thus, Morie Meyhou would need to educate his employees that implementation of business intelligence system was to enhance their performances, and implementation of Business intelligence system was to measure employee’s productivity, and improvement of organisational performances. Another socio challenge that Morie Meyhou would have faced was that patients might find it difficult to secure hospital appointment online. Part of the implementation of business intelligence system for Jefferson Medical centre was to allow patients to secure appointment online. It should be noted that bulk of patients that frequent Jefferson Medical centre were low-income people, and most of them might not have knowledge of operating computer, and might not be able to secure appointment online.

Despite these challenges, Jefferson Medical Centre had already made decision to implement business intelligences system, nevertheless, Jefferson medical centre needs to maximise the utilisation of business intelligence system. Next section considers two key factors to maximise utilisation of business intelligence system.

Two key factors which Jefferson Medical Centre needs to consider maximising

The utilisation of its business intelligence system

This section discusses two key factors that Jefferson Medical Centre needs to consider in maximisation of business intelligence system.

In maximising business intelligence system, Jefferson Medical Centre needs to design its BI system to incorporate data warehouse. It should be noted that data warehouse has the advantages of storing large volume of data. (UQS, nd). This advantage allows Jefferson Medical Centre to combine data gathering, and data storage to improve the timeless and the quality of decision process. It should be noted that data warehousing is fundamental tool that determine success of business intelligence system. By developing real time data warehouse, the advantages would provide single source of information, which will provide employees quick access to key information that relate to patients’ accounting software, payroll software and many other internal systems.

In addition, Jefferson Medical Centre will reap reward from data warehouse because management would be able to have quick access to accurate and integrated data for enhancement of management. Meanwhile, data warehouse is a core to business intelligence, and by integrating real time warehouse, Jefferson Medical centre will maximise it business intelligence.(Anderson-Lehman,et al nd, Tan, Lane,2009.).

Second factor that Jefferson Medical centre needs to consider in order to maximise it business intelligence system is integrating online analytic processing (OLAP) in their business intelligence and this will improve data visualisation, and decision making. Typically, with examining many data in complex relationship, Jefferson Medical centre will be able to analyse data in patterns, and have ability to analysis data visually. With the implementation of OLAP, it is possible to compare data in year-to-year or quarter to quarter. ( Lane,2009.).

Integrating data warehouse and online analytical process will enhance performances of Jefferson Medical centre. Next section examines how Jefferson Medical centre measure its business performances using business intelligence system.

How did Jefferson Medical Centre measure its business performance using a business intelligence system?

Measuring employees output is a fundamental key factor of measuring business performance, and overall organisational growth. Typically, business performance management is a real-system that alert manager on the opportunities that an organisation has been reaped , and this also reveal the impending threats that an organisation is facing, and this will help management to plan for the process of integrating business strategies to alleviate these problems. (Lane, 2009).

To measure performances of Jefferson Medical Centre using BIS, it is essential to examine problems Jefferson Medical centre was having before implementation of

BIS, and compare it with after implementation of business intelligence system.

Problems of Jefferson Medical centre before implementing business intelligence software

Jefferson medical centre had many problems before implementing business intelligence system. First, Jefferson medical centre did not have any means of measuring its employee’s productivity, and this was one of the methods to measure performance of Jefferson medical centre. Without having modern, and automated modern method to monitor employees’ productivity, there was no way Jefferson medical centre can distinguish employee performances.

In addition, Jefferson Medical centre had problem of making analytic decision that can influence an organisational performance. Management did not have access to relevant data in order to make decision. The hospital made use of outdated mainframe to store, and retrieve data, and when a manager demanded for financial reports, the data were almost two month old, and the data did not inspire confidence or productivity. These problems led Morie Mehyou to make decision that hospital could improve its productivity, and lower its costs by using business intelligence system. (Tan, Lane, 2009).

Performances of Jefferson Medical centre after implementing business intelligence software

Jefferson medical centre implemented business intelligence system after approximately eight years. Management purchased a WebFocus BI platform from New York-based BI vendor. With implementation of business intelligence software, management is able to retrieve patient data with accounting software, and payroll. Moreover, management was able to use BI software to retrieve data for many internal systems, and these help management integrate third party sources such as benchmarking. This system helps management to compare hospital performances with others, and at the same time be able to measure its national average. (Tan, Lane, 2009).

In addition, Jefferson Medical centre also develops intranet with business intelligence software, and this make mangers from 75 departments from hospitals to log in, and have access to their group data. Moreover, there are real time operation reports where management has access to daily, weekly, and monthly financial reports. The report is no more two months old before reaching manager’s desk. With business intelligence software, Jefferson medical centre is able to monitor employees’ performances, and overall organisational performances. Thus, with the advantages of BIS, Jefferson Medical centre is able to measure its Financial, Customer, Internal processes, Learning and growth. (Tan, Lane, 2009).

Design a basic balanced scorecard with one key objective and an associated key metric for each of the four dimensions of the balanced scorecard (Financial, Customer, Internal processes, Learning and growth) and provide a rationale for each objective and metric.

From illustration of score card in fig 1, a scorecard provides financial, customer, internal business process, and learning and growth. Typical, scorecard is based on measuring these four perspectives.

The objective of using scorecard on financial metric is to measure financial performances of an organisation. Each organisation has balance scorecard to measure its financial performances. It through a metric that an organisation would be able to analyse its annual growth, and productivity.

Lane (2009) points out that majority of the organisation use financial metric to measure performances.

Apart from financial metric, the objectives of using customer in a scorecard are by accomplishing its mission on how an organisation should appear to its customer. Corporate appearance to customers is very important for organisational strategic position. Hence, an organisation must always achieve its vision of how it appears to its customers.

The objectives internal business processes are to satisfy shareholders, customers, and other stakeholders of an organisation. Satisfying stakeholder is among primary objectives of an organisation. Comments of stakeholders on organisation have great effect on organisation image.

Finally, Learning and Growth has objective of how an organisation achieves its vision, and sustainable to improve and change.

These are the four dimension of balanced scorecard (BSC) that an organisation can use for indicators of financial and non-financial performances. BSC measures the performances, and management system of an organisation. It is through BSC that an organisation translates its financial, customer, business processes and learning and growth objectives and goals into actionable initiatives. (Lane, 2009).

Figure 1: Balance score card perspectives.

Conclusion

This paper demonstrates that business intelligence system is a policy that an organisation can use to measure productivity, measuring business performance, and achieving overall organisation growths. Report reveals that manual method of data processing has become obsolete in modern business transactions. This paper demonstrates how Jefferson Medical centre transforms its business, increase its productivity using business intelligence system.

The paper provides key drivers Jefferson Medical centre decided to implement business intelligence system. In addition, paper reveals key challenges Jefferson Medical centre would have faced by implementing business intelligence system. The report also discusses two key factors that Jefferson Medical needs to consider to maximise the utilisation of its business intelligence system

Moreover, the research analyses how Jefferson Medical Centre measures its business performance using a business intelligence system.

Finally, the author designs a basic balanced scorecard, and provide one key objective, and associated metric for Financial, Customer, Internal processes, and Learning and growth.

References

Afolabi, B, Thierry, O, (nd), Business Intelligence System user’s parameters: an application to a document database, Laboratorie Lorreine de Recherche en Informatique et ses Appllication.
Anderson-Lehman, R, et al (nd),Continental Airlines Takes Off with Real-time Business Intelligence, Teradata Student Network.
Band, J, (2003), The Business Intelligence Outlook, Making business intelligence work for its money, Business Insight Ltd.
Jones, D, C, Kato, T, (2003), The Effects of Employee Involvement on Firm Performance: Evidence from an Econometric Case Study, Social Science Electronic Publishing, Inc.
Lane, M, (2009), Module 8 Business analytics, CIS8008 Business intelligence systems, , University of Southern QueensLand, Australia.
Lane, M, (2009), Module 9 Business performance management , CIS8008 Business intelligence systems, University of Southern QueensLand, Australia.
Tan, W, Lane,M, (2009), Assignment 2 CIS8008 – Business intelligence systems, Introductory Book, University of Southern QueensLand, Australia.
UQS, (2009), Module 5: Business intelligence – overview of origins and architecture, CIS8008, Faculty of Business,University of Southern QueensLand, Australia.
UQS, (nd), Module 6 Data warehousing, Faculty of Business,University of Southern QueensLand, Australia.

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