Session8FA10

Session8FA10 - GB704.62Session8Oct28,2010 CardinalHealthcare

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GB704.62 – Session 8 – Oct 28, 2010 Cardinal Healthcare  IT and Healthcare Reform
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Evolution of CH Stage 1. Food distribution 2. Pharmaceutical  distribution 3. Health care services  and distribution 4. Customer solution stage Contribution 1. Distribution skills 2. Reposition to higher  margin industry 3. Reposition to higher  value chain activities 4. Reposition to even  higher margin value  chain services
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Gahan Change Types Radical Change:  core assets and  core activities are threatened Creative Change:  core assets are  threatened but core activities are not Intermediating Change:  where core  assets are not threatened but core  activities are Progressive Change:  neither core  assets nor core activities are  threatened
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Cardinal Deep Change in  Processes Results the work delivers Who performs work Where the work is  performed Whether the work is  performed What information the  work employs How thoroughly the work  is performed
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Scale and Scope Product Development Manufacturing Marketing and Sales Distribution Consulting Manufacturing Packaging Marketing and Sales Consulting Information Systems
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Layers of Capabilities Phase Capabilities 1971-1978 Cardinal Foods Built strong regional strength as wholesale food  distributor 1979-1983 Cardinal Distribution Expanded incrementally into pharmaceutical  distribution; mastered pharmaceutical business  capabilities 1984-1987 Cardinal Health Built pharmaceutical segment and exited food –  less crowded, higher margins, faster growth 1988-1994 Cardinal Health Aggressive development of information and  distribution system infrastructure to support  pharmaceutical distribution 1995-2000 Cardinal Health Made acquisitions to build geographic  diversification; backward, forward, and vertical  integration; migration to high-margin services 2000-Present Cardinal Health Acquisitions of outstanding targets linked to  strategy; long-term value-creating partnerships
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Cardinal Core  Competencies Deep understanding of value chain  dynamics and ability to anticipate  customer needs Extensive use of advanced IT Boundary-less value chain integration Knowledge capture Successful and seamless integration  of acquired companies into CH Brand equity Knowledge, know-how, information Weak corporate culture
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1 Connecting Patients, Providers,  and Payers Lattanze CIO of Year 2010 Presentation John D. Halamka MD CIO, Beth Israel Deaconess and Harvard Medical School
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Eight ARRA Priority  Technology Areas of  Focus 1. Technologies that protect the privacy  of health information and promote security  in a qualified  electronic health record, including for the segmentation and protection from disclosure of  specific and sensitive individually identifiable health information
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This note was uploaded on 01/23/2012 for the course GB 752 taught by Professor Unknown during the Spring '11 term at Loyola Maryland.

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Session8FA10 - GB704.62Session8Oct28,2010 CardinalHealthcare

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