Manage Your Health, Inc. (MYH)
Brief
Manage Your Health, Inc. (MYH) is an international company that provides a variety of health care services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan, and key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of its health care products and services. Below are some ideas the Information Technology department has developed for supporting these strategic goals:
- Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, lnc. pays 20 percent more than the industry average for employee health care premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least AED 120/employee/year for full-time employees over the next four years. This application would include the following capabilities:
- Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, walking, and other sports.
- Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health-related issues.
- Track data on employee involvement in these recreational and health- management programs.
- Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).
2. Health Coverage Costs Business Model: Develop an application to track employee health care expenses and company health care costs. Health care premiums continue to increase, and the company has changed insurance carriers several times in the past ten years. This application should allow business modeling of various scenarios as well as tracking and analyzing current and past employee health care expenses and company health care costs. This application must be secure and run on the current intranet so several managers and analysts could access it and download selective data for further analysis. The new application must also import data from the current systems that track employee expenses submitted to the company and the company's costs to the insurance provider. You believe that having this data will help you revise policies concerning employee contributions to health care premiums and help you negotiate for lower premiums with insurance companies. You estimate that this application would save your company about AED 80/employee/year for full-time employees over the next four years and cost about AED 400,000 to develop.
3. Cross-Selling System: Develop an application to improve cross-selling to current customers. The current sales management system has separate sections for major product/service categories and different sales reps based on those products and services. You see great opportunities to increase sales to current customers by providing them discounts when they purchase multiple products/services. You estimate that this system would increase profits by AED 4 million each year for the next three years and cost about AED 3.2 million each year for development and maintenance.
4. Web-Enhanced Communications System: Develop a Web-based application to improve development and delivery of products and services. There are currently several incompatible systems related to the development and delivery of products and services to customers. This application would allow customers and suppliers to provide suggestions, enter orders, view the status and history of orders, and use electronic commerce capabilities to purchase and sell their products. You estimate that this system would save your company about AED 8 million each year for three years after implementation. You estimate it will take one year and AED 12 million to develop and require 20 percent of development costs each year to maintain.
Tasks
1. Summarize each of the above-proposed projects in a simple table format suitable for presentation to top management. Include the name for each project, identify how each one supports business strategies, assess the potential financial benefits and other benefits of each project, and provide your initial assessment of the value of each project. Write your results in a one- to two-page memo to top management, including appropriate back- up information and calculations.
2. Prepare a weighted scoring model using the template provided to evaluate these four projects. Develop at least four criteria, assign weights to each criterion, assign scores, and then calculate the weighted scores. Print the spreadsheet and bar chart with the results. Also write a one-page paper describing this weighted scoring model and what the results show.
3. Prepare a business case for the Recreation and Wellness Intranet Project. Assume the project will take six months to complete and cost about AED 800,000. Use the business case template provided.
4. Prepare a project charter for the Recreation and Wellness Intranet project. Assume the project will take six months to complete and cost about AED 800,000. Use the project charter template provided and the sample project charter provided in Chapter 3 as a guide.
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1.0 Abstract
Manage Your Health, Inc. (MYH) is health care company that has a worldwide reach. It has employed more than 20,000 employees on permanent basis and an additional 5000 that are on temporary basis. Recently, the company refined the strategic plan and came up with some of the objectives that they would want to implement. Among the major objectives is to reduce the internal costs, come up with a web based communication system and increase the sale through the cross selling platform. The IT department has come up with various applications that are going to handle the recreation project, business model application to deal with cost coverage and tracking as well as the Web-Based Communication System. This paper addresses the recreation and Wellness Intranet Project, from the inception to the implementation. The project has a positive NPV value, 44% return on investment and will take approximately six months at a cost of approximately AED 800,000.
Table of Contents
TOC \o "1-3" \h \z \u HYPERLINK \l "_Toc387350248" 1.0 Abstract PAGEREF _Toc387350248 \h 2
HYPERLINK \l "_Toc387350249" 2.0 Introduction PAGEREF _Toc387350249 \h 4
HYPERLINK \l "_Toc387350250" 3.0 Study of the organization’s strategies PAGEREF _Toc387350250 \h 6
HYPERLINK \l "_Toc387350251" 3.1 Recreation and Wellness Intranet Project PAGEREF _Toc387350251 \h 6
HYPERLINK \l "_Toc387350252" 3.2 Health Coverage Costs Business Model PAGEREF _Toc387350252 \h 7
HYPERLINK \l "_Toc387350253" 3.3 Cross-Selling System PAGEREF _Toc387350253 \h 8
HYPERLINK \l "_Toc387350254" 3.4 Web-Enhanced Communications System PAGEREF _Toc387350254 \h 9
HYPERLINK \l "_Toc387350255" 3.5 Analysis PAGEREF _Toc387350255 \h 9
HYPERLINK \l "_Toc387350256" 3.5.1 Memo PAGEREF _Toc387350256 \h 9
HYPERLINK \l "_Toc387350257" 3.5.2 Weighted Decision Matrix PAGEREF _Toc387350257 \h 15
HYPERLINK \l "_Toc387350258" 4.0 Project Charter PAGEREF _Toc387350258 \h 19
HYPERLINK \l "_Toc387350259" 5.0 Conclusion PAGEREF _Toc387350259 \h 20
HYPERLINK \l "_Toc387350260" 6.0 References PAGEREF _Toc387350260 \h 22
2.0 Introduction
Health care corporations that have a worldwide reach have a great task of making sure that they give the best to all the patients. The different markets present different challenges to the company management and they have to be managed in a manner that ensures the company’s future is insured. At the same time, the clients have to be satisfied with the kind of services and the products that are sold through the sales point of the company. Given that Manage Your Health, Inc. (MYH) is an international company; its business processes have to be very refined to reach the threshold that is expected by the management and the clients at large (Laurita, 2014). Managing health care facility requires utmost skills and strategies to make sure that other than the fact that the business is supposed to be making profits, it is also providing ethical care to patients. Ideally, health care facilities are supposed to help the patients get better before the concept of making profit comes into play (Suttle, 2014). As such, balancing the aspects at the same time requires the right skills, that ensure both patients care and business sustainability. Otherwise, too much emphasis on one could lead to the collapse of the entire business. This could result from the fact that the patients are dissatisfied with the services and the products, or the business runs into great losses and it can no longer operate given that it is no longer sustainable (Mis.uhcl.edu, 2014).
The MYH is a health care company that has a worldwide reach and thus employs a large base of staff, at the tune of 20,000, working on a permanent basis and an extra 5,000 working as part time employees. In the recent past, the company has realised that they have been running into heavy costs in running the business. As such, they have forged proactive steps towards making sure that these costs are reduced and the rate of efficiency increased. These strategies include the reduction of the internal costs at the company, introduction of the cross-selling strategies and exploits into the web based technology. All of these are in an effort to make sure that the level of productivity of the company is kept at its highest and the costs of doing business are kept at a bare minimum. In an effort to strategize on the way forward and bring the company closer to its business goals, there are four specific strategies that have been developed in readiness for implementation. The company plans to introduce a wellness and recreational intranet project that will help the staff to monitor their health status and formulate ways to increases the health of the entire workforce, with measurable goals (Mis.uhcl.edu, 2014). The company also plans to come up with a health care business model that will cover the cost of the health of the various staff members in the facilities of the company. This way, the company will have an easier time managing the health costs of the members of the company (Suttle, 2014). At the moment, the company runs a system that allows the clients to access the cross selling platform, however, in the recent past the company has realised that this system is not as refined and they would want to encourage more clients to access the system through providing discounts. The fourth strategy in the company’s artillery is embracing a communication system that encourages technology and wed based applications.
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3.0 Study of the organization’s strategies
3.1 Recreation and Wellness Intranet Project
To help the staff to be in a position to monitor their health status and the level of awareness in the facility, the application will be created and integrated on the current intranet system. This way the staff will be well informed of their health status and when they need to take steps into reducing the diverse effects of their weakening health. In a recent study conducted on the health of the staff at the MYH, the company pays more than 20% more than the average industry expenditure on their staff. At the same time, the company has been switching their insurance companies at an alarming rate. This is an application that will not only help in the improvement of the health status of the staff, but at the same time, it is going to be much easier for the company to negotiate with the insurance companies to get lower premiums. With the insurance companies, it is easier to have the premiums lowered if the client is showing actual and equitable strategies of reducing the risk of the staff falling ill, which in this case captures the essence of the recreation and wellness project. With the lower premiums, the company can expect to save not less than 120 AED for every full time employee on their payroll for the next four years after the rollout of the project in the company.
For the project to reach its full potential, there are a few aspects that need to be integrated into the application for the staffs use. One of the provisions for the applications is that, the staff should have the ability to register for the recreational activities that are sponsored by the company. The company has organised recreational activities for the employees such as soccer, softball, bowling, joggling as well walking among other sports of the kind. Through the application, one can apply for registration and be in a position to manage the progress alongside facets such as weight, stress and at the same time, they can even be in a position to stop smoking as a good health habit. The management can also use the application to track the employees’ progress in the recreational programs from the time that they register to the efforts that they are making towards managing their health status. To ensure that the staffs are motivated to join and remain active within the recreational programs, there are incentives in form of awards. The incentives will be to reward the participants that are making real progress and those that win according to the winning criteria laid out within the various programs such as weight loss and running.
3.2 Health Coverage Costs Business Model
The company has been spending heavily on the staffs’ health through the premiums and overall costs. As such, the implementation of the cost coverage model is going to be an application that basically tracks costs and expenses of the staff on their health. With the application and the database that is going to be created as a preliminary, the company will not only be able to track the current health costs of the company and the expenses of the individual staff, but also the management will be in a position to view and evaluate the past records on the same. This will make the work of the management much easier, as they will be in a position to draw parallels on the past and the present to evaluate the progress over a certain period of time as they wish. This will also help the management to run the records for the different staffs in the different departments and nationality, for analysis between staffs, department and international units of the facility in other countries. This application will also provide the highest level of security running within the current intranet system that the staffs are used to. This will ensure that the staffs have a short learning curve and the security of the data is ensured. Data security is crucial especially considering that this is personal data and could have devastating effects to the owners if handled by the wrong hands. As such, the system application will provide the ease of use and at the same time provide the level of security that will safeguard the security of the data. All the managers will have the ability to pull out data in a selective manner for comparison and analysis. This data is also going to be very crucial in the formulation of new policies to combat future huddles. Where the insurance premiums are concerned, the data can be presented to the insurance companies to convince them of the company’s interventions in reducing the risks of developing diseases. Although the model may take roughly AED 400,000 to develop and implement in the facilities across the globe, the cost saving will be immense at more than AED 80 for every permanent employees with the company for the next four year after the inception (Mis.uhcl.edu, 2014).
3.3 Cross-Selling System
This is a system that has been helping the clients to buy products from the company, sporting separate sections for the different categories. The different sales reps also have their categories within these sections, where they can sell the products and the services from the company. There is a great chance at improving the customer experience through the cross selling system. One of the best ways to make sure that customers are encouraged to buy more from the system is through offering them discounts when they buy goods and services (Mis.uhcl.edu, 2014). With the inclusion of the discounts, the system could increase the profits of the company by close to AED 4 million annually within the next three years of inception. However, the system is going to cost the company as little as AED 3.2 million to bring to fruition.
3.4 Web-Enhanced Communications System
This is the fourth strategy in the company’s strategies that will ensure there are more profits than the costs of conducting business. Communication is crucial for all the business functions of the business to run smoothly. Poor communication can even bring down the most well thought out plans in a business. To counter the slow communication system that is currently used in the company, the application is going to be developed utilizing web enhancements. At the moment the systems that exists conflicts at different levels, and thus have created a platform that reduces the efficiency with which the products and services are delivered between the customer and the company and between the company and the suppliers. With this application, the customers and the suppliers to the company are in a position to give their suggestions, place...
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