Operation Management and Disruptive Innovation: An Overview

This presentation provides an overview of the role of operation management in healthcare industry and how disruptive innovation can improve the existing model. It discusses the value stream map for emergency room, issues with the OM process followed in the case study, and the implementation of disruptive innovation. The likely benefits of using disruptive innovation in healthcare industry are also discussed.

OPERATION
MANAGEMENT
AND
DISRUPTIVE
INNOVATION
An overview

OPERATION
MANAGEMENT (OM)
 Associated with the processes
of designing as well as the
controlling of the means of
production (Raghupathi &
Raghupathi, 2014).
 Concerned with the
redesigning of the entire
process of business
management.
 Focus on the productivity of
the concerned business
enterprise.

OPERATION MANAGEMENT IN
THE HEALTH CARE INDUSTRY
 Concerned with the
management of the entire
process through which treatment
is being provided to the patients.
 Primary focus is on providing
the best quality treatment
facilities to the patients.
 The model of operation
management followed in the
health care industry is slightly
different from the ones followed
in the business world.

DISRUPTIVE INNOVATION
 The term was first coined in
1995 by Clayton M.
Christensen, an American
Scholar and his colleagues
(Christensen, Raynor &
McDonald, 2015).
 Creates a business market and
value network
 In the longer run leads to the
destruction of the existing
systems of market and value
network.

DISRUPTIVE INNOVATIONS:
ADVANTAGES
 Helps the organizations to
provide services to the
patients through the use of
innovative methods.
 Helps them to gain
competitive advantage over
the others through the
effective use of “Disruptive
Innovation Model”.
 In the majority of the cases
they are cost effective.

VALUE STREAM MAP -
EMERGENCY ROOM
 Takes the help of two methods
for the process of operation
management- material flow and
information flow.
 Material flow represents the flow
or the movement of the patients
from registering themselves to
coming out of the hospital.
 Information flow represents the
flow of information related to
the information which is needed
to provide effective treatment to
the patient.

ISSUES WITH THE OM PROCESS
FOLLOWED IN THE CASE STUDY
 Time is a major constrain
since the patients needs to go
through the nine stage of
material flow and multiple
stages of information flow.
 The process is lengthy and
requires a lot of resources on
the part of the hospital.
 Nurses and doctors are being
able to handle limited number
of patients using this process.

DISRUPTIVE INNOVATION AND
THE OM OF THE CASE STUDY
 Can be used for the
improvement of the existing
model of operation
management
 Will help in a significant
manner to improve the service
map.
 Improve the quality of the
services provided to the
patients.
 Reduction in the amount of
time required for treating the
individual patients and this in
turn will help them to examine
more patients.

IMPLEMENTATION
 Use of a database software wherein
all the past medical history of the
patient will be stored including the
reports of the medical tests that the
patient had taken in the concerned
hospital.
 This is likely to bring the
information and the material section
of the ward together.
 The information that would be
needed at the various stages during
the various stages of the treatment
would be made available at the
registration itself.

LIKELY BENEFITS
 The use of disruptive innovation
is likely to help the hospital to
provide better quality services to
the patients.
 Would reduce the time taken for
attending to the individual
patients.
 Would enable the health care
professionals to attend to the
needs of more patients,
 Likely to enhance the efficiency
and the effectiveness of the
operational management system
followed in the hospital.

CONCLUSION
 The services provided by the
health care industry are more
important since it is related to the
life and death of an individual.
 The effective management of the
entire process of operation thus
becomes very important.
 Use of disruptive innovation
renders various benefits to the
organizations.
 Often helps in the attainment of
competitive advantage and other
benefits.

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