Strategic Information System Analysis: Healthscope's Case Study Report

This report provides a comprehensive analysis of Healthscope's Strategic Information System (SIS), focusing on its application within the healthcare sector. The report begins with an introduction to SIS and its importance in providing competitive advantages. It then delves into Healthscope's critical success factors, primary objectives, and mission statement. An organizational chart is developed to analyze the company's structure, followed by an examination of its current information system, including identified control weaknesses. The report also explores the primary features of a new system, including the relevance of advanced technologies such as MRP, MRPII, and EDI. The analysis includes a discussion of technology platforms, financial and non-financial data, management reports, and potential security risks. A document flowchart is also included. The report concludes with a summary of findings and recommendations for Healthscope's SIS to enhance its operational efficiency and strategic decision-making within the healthcare industry.

STRATEGIC
INFORMATION SYSTEM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Critical success factors and primary objectives and mission statement.............................1
2. Organizational chart of Healthscope..................................................................................3
3. Analysis of current system and identifying specific control weaknesses and preparing a
document flowchart................................................................................................................5
4. Primary features of new system and relevance of advanced technologies as MRP, MRPII
and EDI...................................................................................................................................7
5. Technology platform, financial and non financial data, management reports and potential
security risks...........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

ILLUSTRATION INDEX
Illustration 1: Document Flow Chart...............................................................................................7

INTRODUCTION
Strategic Information System (SIS) is a computer process which is designed in order to
respond to corporate business initiative. They are very helpful in supporting or changing
enterprise's strategy. They are very useful in giving competitive advantages to many
organizations. This SIS approach is very essential part of information technology (IT). They
mechanize operations for better efficiency, control and effectiveness. This process is basically
used to provide management dependable information which helped them in running their
business smoothly and effectively. They are also useful for the analysis of planning new
strategies and objectives for the organization.
Present report will focus on Strategic Information System (SIS) of Healthscope, working
in healthcare sector. It will discuss about the company’s critical success factors and primary
objectives and creating a mission statement as well. It will also develop an organizational chart
in order to analyse e the current system and identify specific control weaknesses. This study will
also talk about the primary features with reference to its best solution like that of MRP or MRPII
and EDI as well of the new strategy that will be implemented by them to enhance their
productivity.
MAIN BODY
1. Critical success factors and primary objectives and mission statement
It is very important for the healthcare sector to have effective information management in
terms of strategic planning in order to enhance their performance in the sector. In healthcare
sector, Healthscope which is an Australian company that is operating its business since 1985.
Healthscope operates various private hospitals medical centres and pathology laboratory,
respectively. It is a private healthcare provider in Australia which has approc 45 hospitals that
are operating under it. It is headquartered in St Kilda Road, Melbourne, Australia. It also
regulates various psychiatric and rehabilitaion clinics in Australia. It was discovered by Gordon
Ballantyne.
For Healthscope, their main objective is to provide their customers the best services
according to their requirements. Critical success factors for the company will be that they are
highly focused towards their work which helped them in achieving their target (HEALTHSCOPE
ANNUAL REPORT 2018, 2018). Some other factors which has a huge contribution in their
sucess, are as follows:
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 One of the most important aspect of this company is that is has various other hospitals
and medical facilities that is operating under it in various locarions in Australia, for
example, in Queensland it has Brisbane Private Hospital, Peninsula Private Hospital, etc.
Same as in New South Wales, it has more tha 10 hospitals, like, Newcastle Private
Hospital, Northern Beaches Hospital, etc.
 Other than the hospitals it also provides facilities like, mental health services in 14
different hospitals. Healthscope Hospitals provide treatment for mental health issues and
for drug and alcohol abuse, such as, Sydney Southwest Private Hospital (Liverpool,
NSW).
 Another success factors which has contributed in their success can include their various
programs which they organize regularly in order to educate their customers and patients.
These programmes include wide variety, such as, mood and anxiety disorders, addiction
services, post traumatic stress disorder (PTSD), aged psychiatry, psychosis obsessive
compulsive disorder (OCD), innovative treatments for depression (TMS), etc.
 They also serve facilities like rehabilitation services which is very helpful in treating
patients who gets addicted to any of the bad habit, like smoking, taking drugs, alcohol,
etc.
Healthscope is second largest private hospital operator in Australia and also a leading
provider of pathology services in countries like, New Zealand, Malaysia and Singapore (Wu,
Straub and Liang, 2015). There is a great demand of technology in today's world which is must
for every organization to implement in their system to make significant change and to enhance
their services as well.
Primary objectives and its mission statement
For Healthscope, it is very crucial to maintain a good relationship with their patients and
customers by providing them the best treatment for their medical issue. Their primary objective
is to serve every individual with effective treatment. Their mission is to expand their business
more in different countries so that they can serve maximum customers which is their vision.
They want everyone to live a safe and healthy life. As their tag line says- “At Healthscope, we
believe patients come first”. Their aim is to provide a healthcare offering synonymous with
quality clinical outcomes and an excellent patient experience (Strategic Information System
Planning in Healthcare Organizations, 2017).
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Apart from this another factor for the success of Healthscope is their use of technology
that has a huge impact on them in order to grow and grab their market on wider platform and
serve their custmers.
2. Organizational chart of Healthscope
Orgaizational chart is a type of diagram which helps in studying or analysing the
relationship hierarchy in the organization. It is very helpful in understanding the internal
structure of any organization (Arvidsson, Holmström and Lyytinen, 2014). There are various
types of organizational charts, such as, hierarchical organisational chart, horizontal or flat
organisational chart and matrix organizational chart. Healthscope is working in variety of
different fields in Australia such as in hospitals, mental health, rehabilitations sector etc. So it is
very important for them to maintain their work properly. For this, there are various employees
who are working in different departments (HEALTHSCOPE ANNUAL REPORT 2018, 2018).
They follow the hierarchical organisational chart in which their organization is an
example of tall organizational structure in which there are different layers of management that
are present in it. This organizational structure can help in defining different levels of roles and
responsibilities. Each department has to report to its upper management staff. Healthscope has
managing directoes (MD) and Chief Executive Officer (CEO) as the head of the organization
which basically operates the whole company. After, that they have Board of Directors (BOD)
which helps in taking effective decisions for the comapny which they will use in enhancing their
performance. And then comes the senior leadership team which has an important role in the
organization. Thet perform work like, managing clinical governance, eisk management, their
patients safety and quality, public affairs, etc.
Role of different departments in Healthscope
 Managing Director (MD) and Chief Executive Officer (CEO): They are the hightest
ranking individual in any company. The main role of the managing directors or cheif
executive officer is that they have the core responsibility of the whole company to eun it
successfully in respective industry. They also lead the other departments as well that
works under them. They help in planning long term startegy, vision and mission for
Healthscope. This has a huge importance in enhancing their performance. Gordon
Ballantyne is the Managing Director (MD) and Chief Executive Officer (CEO) of
Healthscope company.
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 Board of Directors (BOD): They are second most important part in an organizational
structure of this company which has a huge impact on their performance (Laudon, and
Laudon, 2016). Their main role in to implement various policies and strategies which can
be helpful for them in increasing their productivity. They help in taking decisions which
cani enhace their services in healthcare sector (HEALTHSCOPE ANNUAL REPORT
2018, 2018).
Board of Directors (BOD)
Name Post
Paula J. Dwyer Non Executive Chairman
Gordon Ballantyne Managing Director and CEO
Tony Cipa Non Executive Director
Jane McAloon Non Executive Director
Rupert Myer AO Non Executive Director
Paul O'Sullivam Non Executive Director
Dr Micheal Standford AM Non Executive Director
Ziggy Switkowski AO Non Executive Director
 Senior Leadership Team: There are 13 members in their senior leadership team which
has different work based on their quality and skills. Main aim of this team in Healthscope
is to bring a strong commitment to quality clinical outcomes, their exceptional patient
care and have strong support for the whole team. The main objective of this team is to
accelerate the profitability rate of the organization and increase its operational strategy.
Senior Leadership Team
Name Post
Gordon Ballantyne MD and CEO
Micheal sammells Chief Financial Officer
Mark Briscoe General manager Operation
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Dr Micheal Coglin Cheif Medical Officer
Stephen Gameren Hospital State manager
Richard Herman Head of Assurance
Cathy Jones National manager Quality and Compliance
Bronte Kumm Hospital State manager
Alan Lane Hospital State manager
Katherine Paroz Group Executive Human Resource
Ingrid Player Group Executive Legal, Governance and Sustainability
Anoop Singh General Manager International Pathology
Arthur Yannakou Hospital State manager OLD, NT and WA
 Employees or staff member: These are the lowe most employee who works for the
organization. Their main work is to do all the work that is given to them to perform
effectively. It is very essential to ahve goos and skillful employee who can enhance their
overall performance by doing a good job (Sarif and et.al., 2018). Healthscope maintains a
healthy relationship with their employee so that they feel safe secure.
With the help of organizational chart it becomes easy for the organization in the
distrubution of their work. It also assists in managing tehir work properly as well.
3. Analysis of current system and identifying specific control weaknesses and preparing a
document flowchart
Working in a healthcare sector it is mandatory for the organization to have effective
information system which can help in proper monitoring if all their functions. There are various
information system available in industry from which Healthscope is using transaction processing
systems and information systems in their organizations. Transactional system helps in collecting
and maintaining all the transaction that has been done by the organization which can includes,
any type of purchasing, store records, patient payment transaction, etc. Whereas, in information
systems, it helps in collecting, storing and processing all the data to help the organization in
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maintaining their information properly (Strategic Information Systems Planning (SISP) Practices
In Health Care Sectors, 2017).
There are so many drawbacks of both of these systems as it can not help the organization
to provide all the relevant information which they require in maintaining their records in
different hospital which they are operating (Laudon, and Laudon, 2016). Also in the networks
that transmit and receive data and the procedures that govern the way data is handled was not
that effective.
For the improvement that can implement some and innovative information system in their
organization which can help them in getting all the relevant information at one platform. This
will also help in saving their precious time as well. Healthscope replaced old systems in 43
hospitals and 107 pathology labs across 4 countries to improve their information system. It is
very important for the to invest in that system which can support the existing and future growth
of the company. Other than this they also purchased two other system also, i.e., one
TechnologyOne solutions that helps in providing support to the accounting systems for the entire
organisation and another one is the supply chain which assist to ensure that product supply is
controlled or managed properly by the company.
From the implementation of such technology in their management system has helped
Healthscope to drive more efficiently in their functions. The organisation is now confident and
has a reliable and stable solution that will scale up the organisation performance to grow.
For the improvement in their information system they can use Integrated Information
System (IIS) which can help them in getting all the information related to their patient and to the
organization as well (Sarif and et.al., 2018). This will be very beneficial for the company as
previously it was very difficult for them in handling the complexity of their old information
system. By the implementation of this system in Healthscope, will help in collecting all
confidential and important record safe and secure.
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4. Primary features of new system and relevance of advanced technologies as MRP, MRPII and
EDI
Integrated Information System (IIS) is a type of database system which can help the
information manager to complete its task effectively. This system will help in keeping all the
records of their patients properly, such as, it will show how many patients have been admitted in
a day, what is their in and out time, their detail information of the reason of why he got admitted,
etc (Ogiela, 2015). Other than this there are various other primary features are present, which is
explained below:
 It will help in checking information like, which doctor is attending which patient, etc.
 It will also help in collecting all the data of their patients for their future record.
 Integrated Information System (IIS) can be used as an effective tool to maintain all their
confidential as well as important documents safe.
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Illustration 1: Document Flow Chart

 It will be very helpful in maintaining a well defined plan which will assist in collecting
and linking all the information that is being related to the patient.
 This IIS process is also beneficiary for the organization in allowing them make decisions
which can improve their work quality and will also limit their total cost as well.
 This will also help to check and view patient and it's doctor's information.
 This system is also useful in getting all the past data of their customers easily in case of
any requirement.
All these are some important features of Integrated Information System (IIS) which can
help Healthscope to improve their information system effectively (Chuang and Lin, 2017).
For healthcare sector, it is very important to have an effective information system which
can help in maintaining all their work properly in the organization. Clinician uses these
informations from the client and knowledge of similar clients and problems in the past ， to
determine a plan of care for the patients.
In addition to this system, there are some advanced technologies are also present, which
can help Healthscope in their improvement, such as MRP, MRPII and EDI as information system
option is also available, which is explained below in details: Material requirement planning (MRP): This can be a great tool which can be used in the
healthcare sector to manage their work properly. Material requirements planning (MRP)
is a system which is used for calculating all the materials and components that are being
used in the manufacturing of a product (Wu, Straub and Liang, 2015). It is basically a
software based application to manage manufacturing processes in the organization
effectively. Manufacturing resource planning II (MRPII): This is another software which can help
in healthcare sector in monitoring their working processes effectively and efficiently. It is
a type of integrated information system which is used in the organization to centralize,
integrate and process information for effective decision making in scheduling, design
engineering, inventory management and cost control in manufacturing (Manufacturing
resource planning (MRP II), 2018).
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 Electronic Data Interchange (EDI): It is a type of electronic interchange which is used
for exchanging business information by using a standard format. This process helps in
sending information to another company by the mode of electronic interchange (Hussin,
Hashim and Yu, 2018). This can be great tool that can be used by Healthscope in
effectively monitor their management and information system.
5. Technology platform, financial and non financial data, management reports and potential
security risks
Financial and non financial data attributes of Healthscope
Financial data attributes are those factors which helps an organization check their data
related to common equity, capitalization ratios, capital requirements, and earnings per share. This
can also include their income chart as well. For Healthscope, it is very essential to maintain their
finanacial data attributes in order to manage their work effectively (Chuang and Lin, 2017. ). On
the other hand, non financial data attributes are those, in which it has mo relation with the
finance but have a huge impact on their business and on its performance as well. For
Healthscope, Non-financial measures comprise specific targets and goals in relation to the
following aspects:
 Delivering Quality Clinical Outcomes (e.g. improved Hospital Acquired Complication
Rate (HACR)),
 Patient Satisfaction,
 Creating Extraordinary Teams (e.g. employee engagement outcomes), and
 Individual objectives.
All of these are areas which are aligned with Healthscope's strategic pillars and are key to
positive outcomes for Healthscope (HEALTHSCOPE ANNUAL REPORT 2018, 2018).
Technology platform for the system
It is a system which can be used as a base on which various application and technologies
are being developed or processed (Volkow, 2017). It is basically a system on which software
applications can be run effectively. For healthcare sector it can have a huge impact on their
business as it will help them in maintaining their informations system properly. The platform
conforms to a set of standards that helps to enable software developer to create software
application for the platform. For Healthscope, integrated information system (IIS) can be the best
option if they implement in their organization
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Potential security risks and data breaches for Healthscope
For Healthscope, it is very crucial to keep all the information confidential to minimize the
chances of security risk and data breaches in the organization. Appropriate accounting controls
for the integrated information system (IIS) can be very useful for them in mainatining and
monitoring all teh information related to tehir patients, doctors or about their organization
(Arvidsson, Holmström and Lyytinen, 2014.). There are various ways through which data
breching can be reduced in Healthscope, such as, they should not share their information to any
unknown person. They should use higly secured information system in their organization for
maintaining security measures, etc.
CONCLUSION
From the above report it can be concluded it is very important for healthcare sector to
have an effective information system which can help them in enhancing their overall
performance in industry. This strategic information system plays an essential role as it helps in
keeping all the records of the organization which they can require maintaining their data related
to their patients and doctors as well. This report has explained about mission statement and
organizational chart of Healthscope. It also analyzed the current system and identified specific
control weaknesses by preparing a document flowchart and a data flow diagram of the
organization. Other than this, it has discussed about new information system used in the
Healthscope, i.e., Integrated Information System (IIS) and its key features and relevance of
advanced technologies such, as MRP, MRPII, etc. It has also explained about the financial and
non financial data attributes, technology platform for the system and potential security risks and
data breaches for Healthscope as well in this report.
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REFERENCES
Books and Journals
Arvidsson, V., Holmström, J. and Lyytinen, K., 2014. Information systems use as strategy
practice: A multi-dimensional view of strategic information system implementation and
use. The Journal of Strategic Information Systems. 23(1). pp.45-61.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education.
Sarif, S.M., and et.al., 2018, March. Strategic Information System Planning (SISP) Success: A
Case Study. In International Conference on Kansei Engineering & Emotion Research (pp.
692-703). Springer, Singapore.
Ogiela, L., 2015. Advanced techniques for knowledge management and access to strategic
information. International Journal of Information Management. 35(2). pp.154-159.
Lee, T.,and et.al., 2015. Strategic information system planning in healthcare organizations.
Journal of Organizational and End User Computing (JOEUC). 27(2). pp.1-31.
Chuang, S.H. and Lin, H.N., 2017. Performance implications of information-value offering in e-
service systems: Examining the resource-based perspective and innovation strategy. The
Journal of Strategic Information Systems. 26(1). pp.22-38.
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance
mechanisms and strategic alignment influence organizational performance: Insights from a
matched survey of business and IT managers. Mis Quarterly. 39(2). pp.497-518.
Awwad, M.E., Bello, B. and Abdullah, M.F., 2018. THE IMPACT OF STRATEGIC
PLANNING ON THE USE OF ELECTRONIC INFORMATION SYSTEM: EMPIRICAL
EVIDENCE FROM JORDANIAN BANKS. International Journal. 3(10). pp.15-31.
Hussin, N., Hashim, H. and Yu, H., 2018. Strategic Information Management (SIM) In
Malaysian Organizations: An Investigation of its Antecedent. DEVELOPMENT. 7(3).
Volkow, N., 2017. Strategic use of information technology requires knowing how to use
information. In Information Technology in Context: studies from the perspective of
developing countries (pp. 72-85).
Online
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HEALTHSCOPE ANNUAL REPORT 2018. 2018. [Online]. Available through:
<http://www.healthscope.com.au/application/files/3915/3481/6104/HSO_Annual_Report_
30_June_18_-_LODGEMENT_VERSION.compressed.pdf>
Manufacturing resource planning (MRP II). 2018. [Online]. Available through:
<https://whatis.techtarget.com/definition/Manufacturing-resource-planning-MRP-II>
Strategic Information System Planning in Healthcare Organizations. 2017. [Online]. Available
through:<https://www.researchgate.net/publication/273338864_Strategic_Information_Sys
tem_Planning_in_Healthcare_Organizations>
Strategic Information Systems Planning (SISP) Practices In Health Care Sectors. 2017. [Online].
Available through: <https://eujournal.org/index.php/esj/article/viewFile/7066/6827>
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