SAP IS-H Implementation in Ramsay Healthcare Limited: A Comprehensive Analysis

This report examines the benefits of implementing SAP IS-H in Ramsay Healthcare Limited, a global hospital group. It analyzes the company's business processes, identifies specific software requirements, and evaluates the efficiency of SAP IS-H implementation. The report also explores potential security risks and data breaches associated with the technology and provides guidelines for mitigating these risks.

HI5019 STRATEGIC INFORMATION
SYSTEMS T1 2018
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Table of Contents
Introduction.................................................................................................................................................3
1. Define business processes........................................................................................................................4
2. Develop business requirements...............................................................................................................6
3. Determine the systems requirements.......................................................................................................8
4. Software and vendor selection...............................................................................................................10
5. Determine at least three (3) ways which companies or organizations utilize such technologies to
improve business efficiency......................................................................................................................12
6. Evaluate the level of efficiency of the technology implementation.......................................................14
7. Examine potential security risks, data breaches.....................................................................................16
8. Provide guidelines on how these risks could be mitigated.....................................................................17
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
This report has been prepared for analysing the benefits of implementing SAP IS-H in Ramsay
Healthcare Limited while performing various activities. The report contains complete
information regarding the company and the processes followed along with explaining the
managerial, operational and support processes of the organisation. The business and specific
software requirements have been discussed and the suitable vendor has also been selected for
procuring and installing SAP IS-H. The report ascertains the benefits of implementing SAP and
the ways in which operational efficiencies can be improved have been discussed. The report
ascertains the risks involved related to data breach along with providing suitable solutions for
securing the data.
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1. Define business processes
Ramsay Healthcare Limited is a global hospital group which has its operations in the UK,
Australia, Indonesia, Malaysia, Italy, and France. Ramsay Healthcare was established in
Australia in 1964 and it has 73 hospitals and day surgery units and it is the largest private
hospitals operator in the region. The group also operates five public facilities in the region
including Joondalup Health Campus located in Perth. It also contains a pharmacy division
operating in 35 locations across Australia and provides exceptional care and advice for the well-
being of the communities (Thomson Reuters, 2018).
Because of the vastness of its operations, the business processes followed in Ramsay Healthcare
Limited can be divided into management, operational, and support processes. Management
processes are those which involve taking critical business decisions taken during the course of
the business. The firm’s governance framework has been designed for effectively managing the
operations, maintenance of the statutory requirements, and to maintain the integrity while
performing various activities. The critical decisions regarding the business are taken by the
Board and the Company Board is responsible for developing overall strategy and performance of
the firm. The Board of Directors of Ramsay Healthcare Limited has been illustrated below:
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Figure 1: Ramsay Healthcare Limited Board Members
Source: (Thomson Reuters, 2018).
Operational Processes: The firm deals with providing medical facilities to the communities and
has established numerous hospitals in the region. The company provides a broad range of
medical care facilities from daycare to complex surgeries along with providing psychiatric care
and rehabilitation. The services provided by these hospitals are fully accredited with the relevant
accreditation bodies in the respective regions. The organisation collaborates with the government
for providing training to the students and nurses who from the future workforce for the
healthcare sector. The firm has been able to successfully formed joint ventures with foreign
companies for expanding the market share as well as provide quality services to the society.
Support processes: These are the processes which help to perform the core operations of the
firm and in the case of Ramsay Healthcare Limited these services can be enumerated as human
resource, accounts and finance, and IT. The human resource deals with recruitment and training
of the staff whereas finance department enables to ascertain the profits earned over a period of
time, and IT helps to develop and implement new technologies for improving operational
efficiencies (Thomson Reuters, 2018).
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2. Develop business requirements
Business requirements describe the functional requirements of IT systems and finding the
solutions to the issues faced by Ramsay Healthcare Limited. The business requirements of
Ramsay Healthcare Limited have been illustrated below:
Functional Requirements:
Type Requirement Priority
Inventory Tracking stock by
BIN cards
High
Inventory Preparing automated
purchase requisition
Medium
Database Maintaining the
patient records
High
Database Scheduling
emergency services
(Haddad, et. al., 2014)
High
Database Scheduling
appointments of
patients
High
Billing Recording and
maintaining bills
High
Billing Generating
accounting reports
(Haddad, et. al., 2014)
Medium
Accounts Maintenance of
receipts
High
Accounts Updating information
related to cheque
clearance
High
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Non-functional requirements:
Type Requirement Priority
HRMS Updating employee
records
Medium
Salary Processing Processing salary of
staff
Medium
Payment Payment of Staff
salary
Medium
Performance Real-time access to
information
High
Availability Accessibility to the
users and easy
transportation
Medium
Security User-authorisation
(Thakur, et. al., 2012).
High
Security Admin passwords for
accessing critical
information
High
Security Role-based
authorisations
High
The above table indicates the functional and non-functional requirements of ERP system which
is used by Ramsay Healthcare Limited. These requirements have been identified because:
 Designing the system for maintaining the stock of medicines and other surgical
equipment (Thakur, et. al., 2012).
 Ascertaining the actual costs incurred while providing medical services to the customers.
 Improve the operational efficiencies and minimise wastages.
 Enable to ascertain the methods that can be adopted to enhance data security.
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3. Determine the systems requirements
The system requirements (SAP IS-H) of Ramsay Healthcare Limited have been illustrated
below:
Design requirements
Database: The system should use SAP IS-H for using HPIMS (Hospital Patient Info
Management Systems).
Operating System (OS Platform): SAP should be compatible with both Windows and Mac
devices.
Performance requirements
Response time: The system should provide a response within five seconds after confirming the
required inputs.
Capacity: SAP IS-H should be able to support more than 1000 users at the same time.
Maintenance Requirements
Back-up: The new platform should be able to back-up the data which will be transferred to the
cloud-based system on daily basis.
Security
Admin Rights: The critical information should only be accessed by using admin login details in
order to avoid unauthorised use of data.
User rights: The system should restrict the rights of the users for accessing information and the
rights have to be assigned based on the designation of the user.
Software Specific Requirements
Software Specific Requirement 001: Adding new patient details
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SAP IS-H system should enable the front office representative for adding new patients to the
system.
Software Specific Requirement 002: Assigning an ID
The new system should enable front office representative to create and assign a patient ID and
this unique ID will be used to refer the case details throughout the diagnosis.
Software Specific Requirement 003: Deleting Patient ID
The admin staff or front-office staff should be able to delete the patient ID as per the instructions
provided by the general physician.
Software Specific Requirement 004: Adding vacant beds to the list
The patient care staff should be able to add the vacant beds in the available category.
Software Specific Requirement 005: Patient Information
The system should be able to provide all the information related to the patient such as name, ID,
ward, bed number and the physician assigned.
Software Specific Requirement 006: Availability of Bed
The system should be able to provide real-time information related to the availability of bed
indicating the ward number of the vacant bed.
Software Specific Requirement 007: Personal details of the patient
The system should be able to capture personal information such as first name, last name,
physical address, contact details, etc.
Software Specific Requirement 008: Updating patient information
The system should be flexible for making changes to the patient details and the updated details
have to be indicated immediately on the system.
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4. Software and vendor selection
Patient management is one of the critical functions performed by Ramsay Healthcare Limited
and hence, the organisation should develop systems which enables to record and maintain
complete patient information. This information should be updated on a real-time basis so that
accurate information can be conveyed to the interested parties. SAP IS-H is a comprehensive
solution to the various issues faced by the firm and by using this system, data from different
locations can be integrated easily. This is very useful for the firm as it has operations across the
globe and data can be compared for analysing the performance of a particular location (Farber,
et. al., 2012).
The benefits of using SAP IS-H has been given below:
 Effective management of patient care services and better coordination between different
departments.
 Enhanced security because the access is designed based on the designation of the user
and use of admin logins for accessing critical information.
 Enhanced flexibility to the users since the information can be modified easily.
 Backup facilities ensure data protection and the user will be able to store the information
at the appropriate location (Vigersky, 2015).
 Physicians and nurses will be able to access real-time data related to the patients which
enhance operational efficiencies.
 The data will be stored online and the users will be able to check the updated information
quickly.
 This SAP module is user-friendly and hence, the new joiners will be able to operate the
system easily.
Vendor Selection
Identifying the vendor is one of the important functions since the vendor should be able to
ascertain the actual requirements of the business and suggest the suitable product. Also, the
software should be reliable and genuine as by using genuine software, the firm will be able to use
all the unique features offered by SAP IS-H (Poba-Nzao, et. al., 2014). By considering these
facts, the vendor who has been identified for purchasing the software is ACA Pacific who is
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specialist in providing value-added software solutions to the firms. The core competencies of
ACA Pacific are given below:
 Data storage and protection: The firm deals in providing disk, flash, tape, and cloud-
based storage services from desktop to enterprise level.
 Business solutions: The firm also provides a complete business solution to the
businesses by providing network security and encryption devices.
The services provided by ACA Pacific can be trusted as the services of the firm is being utilised
by companies such as BenQ Australia, Olympus, RADEON, Digi International, etc.
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5. Determine at least three (3) ways which companies or organizations utilize such
technologies to improve business efficiency
The firms’ implement the use of latest technology for performing the activities for enhancing the
operational efficiencies and to record and maintain accurate data for making important business
decisions. This is very important for the organisations dealing with providing medical services
since analysing accurate facts enhances the quality of the services provided to the patients as
well as maintaining updated information related to patients. The benefits of using SAP IS-H in
Ramsay Healthcare Limited are given below:
Efficient Patient care services:
SAP IS-H is the latest software and has advanced functions which are helpful for recording and
maintaining the patient information accurately. The user will be able to record the details
accurately and this information can be accessed by physicians and nurses. The patient records
including information related to a diagnosis can also be stored which can be utilised for
analysing the patient history (Kawamoto, et. al., 2014). This ensures providing appropriate
diagnosis quickly and efficiently. Additionally, all the details regarding the diagnosis and its
costs can be provided to the patients and their families quickly enhancing the goodwill and
reputation of the institution.
Also, the information related to the availability of beds can also be ascertained quickly as this
software indicates the number of empty beds by specifying the ward number. This ensures
assigning the suitable wards to the patients as per their requirement and makes it easier for the
staff to update the details. Since only a minimum amount of manual intervention is involved, the
possibilities of errors are minimised which enhances the operational efficiencies.
Accurate billing and finance management:
By using SAP IS-H, the institution will be able to record and maintain accurate billing details
and enables to track the payments made by the patients and their families (Wamba, et. al., 2013).
This is important because the profits are analysed by considering the amount received from the
patients for availing the medical facilities offered by the institution and it is the main source of
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income for Ramsay Healthcare Limited. The users will be able to generate accurate financial
reports which are utilised for ascertaining the costs incurred for providing the services and
revenues generated for a particular period of time. The management will be able to take accurate
decisions since the cost centres can be easily identified and the ways in which the costs can be
minimised can also be ascertained. This helps the management to minimise the wastages as well
as minimise the costs of services and generate more revenues. Also, this application enables to
predict the revenues that can be generated by investing in new projects and management will be
able to ascertain the viability of investing in the projects. Hence, the management will invest in
only those projects which are profitable which again helps to generate more revenues.
Since the firm also deals in pharmacy, the use of SAP will help the firm to maintain accurate
stock records and billing purposes. The management will be able to ascertain the profitability of
the stores and helps to identify the profits earned by a particular location and the techniques that
have to be implemented for minimising the cost of a particular location (Wamba, et. al., 2013).
Enhanced security of the data:
The access to the application can be restricted depending on the nature of the task performed and
the amount of information required for performing the task. This role-based user access enhances
the security of the information since the personal details of the patients cannot be used without
permission. Since the institution deals with providing medical services, it becomes mandatory to
maintain the confidentiality of the information. The back-up can be taken regularly and the
information can be transferred to the cloud-storage which enables the management to store large
volumes of data and these can be secured by providing admin passwords.
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6. Evaluate the level of efficiency of the technology implementation
It is very well established that technology defines the future conduct of the business and hence,
firms develop strategies for upgrading the existing technology or implement an advanced version
of the new technology. The level of technology used depends on the nature and size of the
business and the actual issues that can be resolved by implementing the proposed technology.
This enables the firm to increase the efficiency of the operations and enhance its competitiveness
(Ozcan, 2014).
SAP IS-H is the solution which can be implemented in Ramsay Healthcare Limited to improve
the performance of the work performed since it reduces the human effort for performing various
activities and minimises errors. The effectiveness of using SAP IS-H can be evaluated by
explaining the three priorities, which are:
People: Employees and staff form the core of healthcare business since they help the
management to achieve the overall objectives by performing various tasks. SAP IS-H is user-
friendly and can be easily operated which enhances the quality of output. There are various
features included in it and the staff will be able to record and maintain accurate data. This
ensures improving their performances and they will be motivated while performing tasks since
errors are minimised. By improving their performances, the management will be able to achieve
the overall objectives (Hilty, et. al., 2013).
Processes: The current process involves performing manual tasks which increases the errors and
it is time-consuming process since staffs has to double-check the work performed for checking
the accuracy of recording the data. By implementing SAP IS-H, the manual entries are
minimised and there is no need for double-checking as the users will be able to see the output
instantly. Also, the application is flexible, thus, the users will be able to modify the details if
required.
All the information regarding the patients can be viewed by the physicians and nurses quickly
and appropriate treatment can be recommended. This enables the doctors to decide the type of
diagnosis quickly which increases to resolve the patients issues easily. Due to the increasing
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demand for healthcare services, speedy disposal of cases is necessary because of growing
number of patients. Pharmacies will be able to maintain the stock levels and maintain accurate
finance details which can be utilised for taking business decisions.
Hence, the various operations can be performed smoothly and efficiently enhancing the
competitiveness of the company.
Technology: SAP IS-H synchronises various activities and the user will be able to record and
maintain accurate data. This application enables to secure the data since role-based access is
provided to the user. Also, various reports can be generated quickly which can be utilised for
taking important business decisions. Another advantage of using this application is that it enables
to integrate the activities performed in different locations and this becomes necessary for
Ramsay Healthcare Limited since the company has a global presence and decisions related to
one particular unit has to be taken based on its performance (Ozcan, 2014).
All these activities ensure continuous growth and development of the firm and the management
will be able to execute the business expansion plans.
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7. Examine potential security risks, data breaches
The advancement in technology increases the efficiency of the work performed and enables the
business to grow and expand. However, this also provides an opportunity for the hackers to steal
the potential information which can affect the business performance since this information can
be utilised by competitors for their advantage. The security risks of using SAP IS-H by Ramsay
Healthcare Limited can be evaluated as:
Inadequate User Controls:
The activities are performed are segregated based on the type of information required for
performing the tasks. For instance, the front office receptionist assists the patient while allocating
beds and suitable ward as per the requirement. Whereas, doctors require more information for
recommending suitable diagnosis to the patients. Hence, role-based user control is provided to
secure the data. However, this becomes difficult since the IT staff has to be adequately trained
else the admin access will be provided to the staff and they will be able to view complete
information including current diagnosis and credit card number, etc. that is recommended to the
patients. Hence, the confidential information can be utilised for unauthorised purposes (Chen and
Zhao, 2012).
Server Controls:
This is a major concern for the firms since hackers will be able to enter the server by various
means and the complete database can be transferred to another location. Securing the server is a
major task and it has to be protected since the valuable data is stored and communicated.
Inadequate firewall protection:
The server and the systems are protected by firewall and anti-virus software installed since they
help to detect and eliminate potential threats. However, there can be a potential threat if the
firewall protection is not enabled by potential threats such as virus and malware can enter the
system and damage the data stored in the system. This results in losing vital information and can
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affect the performance of the business since the management takes important decisions after
considering this information (Chen and Zhao, 2012).
8. Provide guidelines on how these risks could be mitigated.
The potential risks have to be avoided by Ramsay Healthcare Limited since these risks affect the
performance of the business as well as damages the goodwill of the organisation. Hence, the
following measures should be implemented, such as:
Three lines of defense:
There should be three stages for conveying the information to the interested parties. For instance,
the front-office staff should be authorised for checking only the required information and this
should be simultaneously monitored by the supervisors and senior staff. Hence, the information
can be secured since the information can only be communicated after taking approval of the
concerned supervisor. This helps to maintain the confidentiality of the information which enables
to build trust and confidence among the patients and their families (Chen and Zhao, 2012).
Access Governance:
Since the important information of the patients is stored such as contact number, credit card
number, etc. it becomes the responsibility of the firm to secure these details. Hence, user access
controls are very important since the access controls enable the user to check only that
information which is required for performing a particular activity. Admin passwords should be
provided to the systems for changing the configuration and restrict the access to modify the
certain information of the patients.
Firewall protection:
The individual user systems should be protected by the firewall for detecting and removing the
potential threats. Also, it enables to identify the threats if the user plug-in external storage
devices such as pen drive and CDs which secures the data. Protecting the server and PCs from
virus and malware is important since losing the information may affect the performance of the
business as all the information is stored on the server.
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Conclusion
From this report, it can be concluded that implementing new technology enables the Ramsay
Healthcare Limited to perform various activities efficiently. This is important because of the
increasing competition in the market as well as growing demand for medical services across
Australia. The SAP is a comprehensive business solution since it has various features which
enable the user to get accurate information. The doctors and nurses can rely on the data stored
regarding the patients and the management can take appropriate decisions after referring the
finance and other reports which is generated using this application. This enables to take accurate
business decisions and improve the operational efficiencies ensuring continuous growth and
development of the company.
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References
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modern business applications, ACM Sigmond Record, Vol. 40, No. 4, pp. 45-51
 Haddad, P., Gregory, M., and Wickramasinghe, N. 2014. Business Value in Healthcare,
Lean Thinking for Healthcare, pp. 55-81, Springer, New York: NY
 Hilty, D.M., Ferrer, D.C., Parish, M.B., and Callahen, E.J. 2013. The effectiveness of
telemental health, Telemedicine and e-Health, Vol. 19, No. 6, pp. 444-454
 Kawamoto. K., Martin, C.J., Williams, K., and Morris, S.J. 2014. Value Driven
Outcomes, Journal of the American Medical Informatics Association, Vol. 22, No. 1, pp.
223-225
 Ozcan, Y.A. 2014. Evaluation of Performance in Healthcare, Healthcare Benchmarking
and Performance Evaluation, (pp. 3-14), Springer Boston MA
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ERP systems in healthcare organisations, Information System Frontiers, Vol. 16, No 4,
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trends, Journal of Business Research, Vol. 65, No. 4, pp. 562-570
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https://www.reuters.com/finance/stocks/company-officers/RHC.AX, [Accessed: 22 May
2018]
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technologies in the management of patients with diabetes mellitus, Journal of diabetic
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