EHR System: Investment Analysis, Benefits Realization, and Ethics

This report provides a comprehensive analysis of Electronic Health Record (EHR) system investments within the healthcare sector, focusing on the justification, benefits, and risks associated with EHR implementation. It begins by outlining the background and strategic context of EHR systems in healthcare, emphasizing the importance of IT in improving quality and reducing costs. The report includes an executive summary with key recommendations, highlighting the need for a strong investment policy and risk management. It delves into the evaluation approach, utilizing incremental discounted cash flows and a multi-criteria approach to assess financial and non-financial benefits and costs. The analysis covers potential risks, organizational change impacts, stakeholder considerations, and future digital opportunities. Furthermore, it addresses ethical and social implications, limitations of the analysis, and concludes with a discussion on benefits realization, offering a thorough overview of EHR system investments and their implications for healthcare organizations. Desklib provides access to this and other solved assignments.

Running head: ORGANIZATIONAL CONTROL
ORGANIZATIONAL CONTROL
Name of the Student:
Name of the University:
Author Note:

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Part 2:...........................................................................................................................................2
5. Analysis of the investment:.........................................................................................................6
The evaluation approach used in the analysis:................................................................................6
Multi-criteria approach:...................................................................................................................7
Financial benefits and costs:............................................................................................................8
Non-financial benefits and costs:.....................................................................................................9
Risks of implementation:...........................................................................................................10
Organisational change impact:......................................................................................................14
Stakeholder analysis:.....................................................................................................................14
Real options and future digital opportunities supported by this investment:................................14
6. Benefits of realization:...............................................................................................................15
7. Ethical and social implications:.................................................................................................15
8. Limitation:.................................................................................................................................16

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Part 2:
1. Background information:
Healthcare information technology is one of the most widely recommended to be one of the
means that helps to improve reduce the cost of the quality of the healthcare and also reduce the
cost. Recent researches and studies on the healthcare management has helped to improve the
nursing care and patient safety. The report deals with the modern EHR system which is being
extensively used in the health care sector. The information stored in the EHR can be readily
available and can also be accessed whenever and wherever necessary. The, EHR system is the
modern system and it offers access to different kinds of business applications that the providers
can use in making the choices about the medical health of a patient. Apart from this the EHR’s
also offer other different highlights that includes the likes of the development, management and
counselling by the appropriate workers and the different kinds of the organizational
management.
The passage of days leads to the rise in the use of the information technology. The rise in the
use of the information technology has provided the healthcare organizations with a varied range
of options that are both suitable and appropriate for the success of the business. However, there
has been various kind of the people and institutions related to the health sector that are facing
issues and concerns related to IT in healthcare. The major sufferers are namely the stakeholders,
hospitals, nurses and all the other people who face different kinds of the IT issues that hamper
the performance of the hospital. The key IT issues are basically examined every three to four
years since the last decade. Researchers have identified the different critical issues that relates to
the specific areas of the information systems.

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2. Executive Summary:
The following paper has been prepared to examine the Electronic Health Record System. It
helps to identify the potential vendor of the EHR system that is being applied to the different
medical business organizations and also provides a proper and clear justification for the
investment. Healthcare Information Technology is always referred to as the key to the
improvement of the quality of the healthcare. Still the implementation of the IT system in the
healthcare system is a complex and continuous challenge to the healthcare industry. The issues
faced by the organizations and the hospitals along with the nurses and doctors associated with
the healthcare industries are described in this particular study in a proper and effective manner.
The report has highlighted the total process of the selection of the system, costs related to
implement the system in the healthcare system and the different benefits and advantages of the
following system. The expenses to implement as well as operate the system along with the
incorporation of the system in the clinical management system can be one of the most important
system in the doctor’s practice. The report starts with the introduction of the practice of the EHR
system in Australia. The analysis approach will be the next in the fray as the analysis will be
explaining the total contents of the research and will provide a detailed view on the different
kinds of the methods that will be used in the following process. The use of the following
approach also helps the business organization to describe the Total value based opportunity. As
part of the TVO process, the total cost of the ownership process can be identified starting from
the initial to the implementation process. The costs and the benefits have been provided in the
appendix part of the report. On the other hand the report consists of a separate financial analysis
part. The following report has also provided a risk register that has helped the business to ensure
the success of the business in a meaningful manner.

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Key Recommendation:
The IT Governance institute must apply a number of different requirements to ensure the
success of the healthcare sector and avoid risks in a better and effective manner. The IT
Governance institute at the very beginning must ensure to establish a strong investment policy in
order to ensure a stringent and effective risk management policy. The primary recommendation
that has been selected has been supported by secondary recommendation. The primary
recommendations will be supported by that of two different secondary recommendations. The
first secondary recommendation is to carry on a more intense market research. On the other
hand, the second recommendation is that the management of the company should invest more
extensively in foreign currency. Lastly the third and fourth recommendation will support the
second primary recommendation. The third recommendation will be supporting that the
management must provide risk management to the staffs of the healthcare sector.
3. Strategic Context
The major values of that support the proposed strategy are as follows;
1. Different skills- The presence of the workers with different types of relevant skills
necessary for the practice of health related works are important for the success of the
business and also helps to implement the new software system in the organization in an
easy and hassle free manner. The skills and the ability of the business are important for
the success of the organization in a proper and effective manner.
2. Stakeholder Analysis- The active engagement of the key stakeholders in the design of
the software and the different kinds of the software processes in the EHR system is used
in the management of the success of the business.

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3. Infrastructure- The management of the health care institutions needs to be focused on
the building of a great infrastructure which is needed for the success of the business in a
proper and organized manner. The presence of the infrastructure will enable easy
implementation of the new EHR software in the healthcare system.
4. Incremental Approach- The building of a long term E-health capability is one of the
major tasks of the organization. The investment made in the health sector must focus on
the areas that can be of the greatest benefits to the customers in need of the healthcare.
The strategies will thus be based according to the above mentioned perspectives. Some of the
major strategies are as follows;
1. Foundation: The foundations has to be presented in order to support the exchange of
digitalized information within the business organization. The e-health capability of the
organization is termed only during the management of the organization is fully able to
share the health information in a safe and secured manner.
2. Governance: The presence of an effective leadership, coordination along with the
oversight of the e-health program of the business. The work stream totally focuses on the
achievement of the stakeholder adoption of the E-health solutions as early as possible.
The presence of the effective governance is highly essential for the success of the
business in a proper and efficient manner.
3. Changes and Adoption: The changes and adoption from the traditional system to the
new and digitalized electronic system will have to be done with utmost precision and
clarity. The e-health solutions must be addressed in an appropriate manner to ensure the
success of the health care organizations.

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4. E-Health Solutions- the simulation of the delivery of the e-health solution to the major
users are of utmost importance to the business. The specific and precise system of the e-
health solutions will ensure the satisfaction of the customers and the other stakeholders
associated with the business.
STRENGTHS OPPORTUNITIES High market goodwill Great financial planning
 Skilled employees
 Expansion in foreign markets
 Experienced managers involvement
WEAKNESSESS THREATS Limitation to Australia Lack of proper innovation
 Competitive threats
 Cyber threats
5. Analysis of the investment:
The evaluation approach used in the analysis:
The IT Governance Institute used incremental discounted cash flows to analysis the
impact of the cash flows on the financial position of the company. The company used both cash
inflow as well of cash outflows to calculate net incremental cash flow. The company in order to
use the incremental cash flow took into account the advanced investment evaluation techniques
like real option appraisal and valuation of investments obtained from other information
technology based investments. The multinational companies like multinational banks use
incremental discounted cash flow system to recognize the projects which are likely to earn higher
returns of investments to the business compared to the costs it incurs to operate the project. An

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evaluated that the investment policies of the IT Governance Institute are prudent on several
grounds. Firstly, the approach takes into account the time value of money. Secondly, it takes
into account the outflows and inflows of cash in and out of the business. Thus, it is evident from
the analysis that the technique enables the companies to carry out a more accurate analysis of its
present financial position. This analysis enables the companies like IT Governance Institute to
carry out more accurate calculation of the profit it would likely incur in executing a project.
Thirdly, the system enables the businessmen to calculate the return on investment they would
earn on investing in the market. The seventeenth page of the case study mentions that the
company in order to calculate the rate of return which investments are likely to give, follows an
investment analysis method which is conducted using information technology. The first step is
that the company estimates the return of investment it is likely to receive from a particular
investment in bonds or in shares. The firm takes into account the coupon rate in case of bonds
and dividend amount in case of the shares. The second step of calculating the ROI is assessment
of risks and the rate of return which the firm wants to earn. The firm subtracts the cash flows
from the estimated return on investment calculated. The third step the firm followed was to
calculate the value of the expected cash flow. The final step of evaluation consisted of
determining the cost of projects against the actual value which the project would likely yield. If
the outcome is positive, the firm undertakes the projects.
Multi-criteria approach:
The IT Governance Institute should adopt a multi-criteria approach to analyse the effect
of risks on the business. The firm should analyse the risks from various perspective. For
example, in order to analyse the the risks it would suffer due to negative return on investments,
the firm should take into account the effect of the risks on different operations. The first criteria

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it should consider that the negative ROI would result in availability of less funds which it would
channelize towards manufacturing operations. Reduced manufacturing would result in lower
revenue generation which in turn result in the firm giving lower returns to its shareholders. Thus,
it is evident that the firm should analyse the risks from multiple perspectives.
Financial benefits and costs:
The management of the IT Governance Institute takes into account the costs projects
would attract against the revenue the projects are likely to yield. The firm takes into account
three categories of contribution the projects to be taken up can make towards the business. First
of all, the firm takes into account the current business objectives which it wants to achieve. The
management while analyzing the like financial benefits and costs, takes into account the benefits
which the projects would yield for the business. The firm’s management judges whether the
projects are aligned with the business requirements of the firm by taking into account tools like
balanced scorecard. The second criteria which the firm takes into account is, whether the project
is in line with the business requirements of the parent company and the business environmental
within which the firm operates. This shows the degree to which the organisation is required to
adapt the project in order to execute them successfully. The third and the final step of financial
benefits and cost analysis which the firm takes consists of judging the future benefits which the
projects would yield for the firm.
Financial analysis:
Attached
The breakeven point would be the minimum revenue which the firm should earn to bear
its expenses.

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Non-financial benefits and costs:
The non-financial benefit and cost benefits take place into account factors like
relationships with clients and suppliers which provide the firm with raw materials. This is
because the relationship with customers and suppliers have immense impact on the financial
aspects like goodwill. The value in order to build up strong bonding with the suppliers and
customers operate in ways to create value for them.
The nonfinancial analysis should take into account the goodwill which the firm would
earn. The firm should aim to minimize its expenses to boost its profits.

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Risks of implementation:
The IT Governance Institute takes into account the risks its projects are likely to face.
The firm’s management has an established method of dealing with risks. The management
analyses the impact of the risks on the operation of the firm and then takes steps to deal with
them. The lower level staff members report the risks to their managers. The managers the risks to
the higher management who analyse the risks and their impact. Then they take steps to mitigate.
Risk register of The IT Governance Institute
Ris
k
no
Documen
t control
informati
on
Risk
identifier
Risk
Category
Risk
Descripti
on
Impact of
the risks
Risk
response
category
Owner
of risk
Risk
response
action
Owner of
Risk
response
action
1
Profit and
Loss
statement
, balance
sheets
Falling
profits in
spite of
strong
marketing
strategies
Market
risks
1. Market
risks can
originate
due to
introducti
on of
new
products
by
existing
competit
ors
and/or
entry of
new
firms
with
similar
products.
2. Loss of
materials
,
technolo
gical
resources
and
manpow
er due to
fire and
explosion
s
1. Fall in
revenue and
losing of
consumers.
(short term
impact)
2. Losing
investors,
and supply
chains due
to falling
capacity to
give positive
ROI.
(medium
term)
3. Goodwill
risk and
losing of
global
market
position
(long term
loss)
4. Reduced
productivity
due to
increasing
accidents
and loss of
resources
Strategic
decisions
,
marketin
g
strategie
s
Finance
departme
nt,
Marketin
g
departme
nt, Risk
manager,
Engineer
1.
Formation
of a strong
risk
manageme
nt strategy.
2.Use of
moern risk
manageme
nt systems
3.Strengthe
ning
marketing
of
products,
introducing
new and
innovative
products
with less
competitor
s
Marketin
g
departme
nt

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2
Unjustifie
d loss of
capital,
Unjsutifie
d loss of
data,
Unexplain
able alter
of
informatio
n
Employee
s,
customer
s or any
other
stakehold
er
Cyber
theft risks
1.Cyber
attack
would
cause
loss of
ICT data
and
designs
which
would
attract
huge
security
risks
towrads
the
company.
2. Cyber
attacks
lead to
loss of
customer
and
financial
data of
extreme
business
significan
ce. Loss
of
customer
data and
financial
resources
online
lead to
R1
1. Loss of
sensetive
business
data.
2. Loss of
financial
resources.
3.
Unauthorise
d access to
the
business
strategy
information
of the
company.
4. R1 High
Apex
managem
ent and
all the
departme
ntal
heads
1.
Tightening
of security.
2.
Allocating
new email
ids and
passwords
to each
employees.
3.
Mandating
subordinat
es to
obtain
approval of
superiors
to accede
to specific
informatio
n.
4. Making it
compulsory
for all
employees
to
exchange
official
informatio
n
exclusively
on the
formally
laid path of
informatio
n sharing.
5.
Employees
holding
assistant
managers
and
beyond
should lock
their
systems
using a four
layer
password
security.
Apex
managem
ent and
all the
departme
ntal
heads
2 Cannot be
document
ed
Employee
s,
customer
s or any
other
stakehold
er
Natural
disasters
Natural
disasters
lead to
loss of
resources
,
inventory
and
Depends on
the
seriousness
and
intensity of
the
calamities
Immedia
te
Governm
ent,
security
personnel
etc
Evacuation Governm
ent,
security
personnel
etc

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assets
3
Governme
nt and
legal
websites
Apex
managem
ent
Change in
legislatio
ns
Change
in laws
require
compane
is to
comply
with the
new laws
1. Damage
to
installations
like towers
and
terrestrial
systems.
2. Damage
to these
installation
may lead to
explosions
and massive
fuires.
3.Requires
The IT
Governance
Institute
adapt the
relevant
areas of
operations
as per the
laws
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Compliance
, OHS
strategies
Apex
managem
ent and
all the
departme
ntal
heads
4 Financial
statement
s
Apex
managem
ent,
finance
departme
nt, CFO
Economic
risks
1.
Change
in
internati
onal
currency
exchange
rates
2.
Change
in taxes.
3.
Adverse
economic
changes
4.
Emergen
ce of
economic
policies
resulting
from R5.
5.
Scarcity
of raw
materials
.
6.
Increase
in
policies
of
financial
Requires
The IT
Governance
Institute to
adapt the
relevant
areas of
operations
as per the
laws
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
managem
ent and
all the
departme
ntal
heads
Compliance Apex
managem
ent and
finance
departme
nt

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institutio
ns
5 Risk
register Apex
managem
ent,
security
officer
and any
other
employee
Fire,
exlosions
Loss of
materials
, loss of
equipme
nt, injury
of
employe
es, loss of
productiv
ity,
casualty
in case of
large
scale
explosion
s
The IT
Governance
Institute
loses
productivity,
employees,
resources
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
managem
ent and
all the
departme
ntal
heads
Risk
manageme
nt
strategies
Apex
managem
ent and
finance
departme
nt
6
Financial
statement
s
Apex
managem
ent and
top
managers
including
CFO
Goodwill
risks
1. Loss of
customer
s
2. Loss of
investors
3. Loss of
suppliers
4. Loss of
market
position
CBA loses
productivity,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Risk
manageme
nt
strategies
Apex
managem
ent and
finance
departme
nt
7
Financial
statement
s
Apex
managem
ent and
top
managers
including
CFO
Capital
risks
Weakeni
ng of
capital
base due
to lower
generatio
n of
capital
The IT
Governance
Institute
loses
productivity,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Strengtheni
ng
marketing
of
products,
introducing
new and
innovative
products
with less
competitor
s to boost
revenue
generation
and
strengthen
goodwill
Apex
managem
ent and
finance
departme
nt
8 Financial
statement
s
Apex
managem
ent and
top
managers
including
CFO, R&D
head
Technolo
gical risks
Modern
technolo
gy leaves
perevious
technolo
gy
versions
redundan
t
Requires
The IT
Governance
Institute to
carry on
continuous
research on
product
technology,
operation,
ecommerce
technology
etc
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Requires
The IT
Governanc
e Institute
to carry on
continuous
research on
product
technology,
operation,
ecommerc
e
technology
Technolo
gcial
officer

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ORGANIZATIONAL CONTROL
etc
Organisational change impact:
The management of The IT Governance Institute ensures that the oragnisation is aligned
to the changes. The management of the organisation provides training to the staff which
motivates them to adapt to the changes. The case study on the twenty sixth page mentions that
the management of The IT Governance Institute has laid a ‘holistic and proactive approach to
manage change.
Stakeholder analysis:
The firm should divide its stakeholders into internal and external stakeholders. Then it
should analyse their power to influence its activities. The firm should aim to satisfy its
stakeholders.
Real options and future digital opportunities supported by this investment:
The IT Governance Institute conducts continuous innovation to bring about more
efficient IT solutions. The innovation of the firm is driven by the collaboration of the firm with
its stakeholders like clients and suppliers.
6. Benefits of realization:
The IT Governance Institute benefits by realizing high profit it earns by serving its
clients. The collaboration of the stakeholders like management, suppliers and clients enables the
firm to manage risks to maximize returns.
The company should take into account project governance, government structure, risk
management, target measures and benefit register. The company must ensure that it meets with

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the aforementioned criteria and generate high profits. For example, lowering customer issues
would prove that operations of the company are benefiting the former which would in turn mean
efficient project governance.
7. Ethical and social implications:
The IT Governance Institute analyses the implications of the operations on the
stakeholders including the society. The management ensures that it operates in ethical and legal
manner so as to have positive impact on the society.
The company can ensure ethical and legal implications are acceptable by operating in
ethical ways. The company should follow the relevant ethical principles like equal treatment of
all employees and equal opportunity of all employees. The company must uphold customers’
principles and interests. The potential risks have been identified in the risk register. The company
should ensure that its operations do not violate stakeholders’ interests in order to ensure the
outcomes are acceptable. The company must set key performance indicators which it should try
to achieve.
8. Limitation:
The IT Governance Institute suffers from several limitations like threats from
competitors. These limitations create risks for the firm which the management has to take within
the purview of the risk management strategies of the firm. The shortcomings of the analysis here
are constraint of time and data.