Networks, Technology & Information

By Dr. Nripendra Singh Agenda

Transforming Service

Session 11 & 12

Jaypee Business School, Noida

Physical and Virtual Networks

Integration Case Studies

Networks, Technology & Information

In recent times, service delivery has seen most exciting changes Guaranteed courier delivery around the world within 48 hrs. (Network) Receiving call in Japan from US on an Indian mobile phone (Telecomm Tech.) Virtual Tours of the Hotel/Resort facility globally through web (Information)

Purpose
Purpose is to understand new and innovative ways To deliver service, Enhancing service products, and Increasing productivity by managing Networks, Technology, and Information

Four Overlapping Categories of Transformed Services

Integrated Information provision satellite tracking, real time information. Eg. Parcel, GPS, Entertainment, Mobile phones, Police & Security services etc. Integrated Services eg. Credit card and banking services. Service on Demand eg. Online buying of every thing from grocery to ticket. Intelligent Networks (computer + network) eg. Intranet used within the cos. For internal mails etc.

Profiting from Intelligence Migration (4 Ste.)

Arbitrage: allows intelligence to be moved to locations where the cost of maintaining it is lower. eg. Call Centers. Aggregation: combines isolated elements of infrastructure intelligence into one large pool of shared infrastructure. Eg. ERP Rewiring: allows org. to coordinate processes more tightly across many participants. Eg. Tracking devices. Reassembly: enables information from a variety of sources to be consolidated into a personalized package for customers. Eg. Education package.

Operations Challenges
Investments in future-proof technologies Sophisticated but reliable technology Large, reliable and up-to-date databases More centralised operations Technology-competent staff Involving users in the development of unknown services

Managing Physical and Virtual Networks

Hub & Spoke N/w courier, distribution cos., airlines etc. Ring N/w Internet and utilities like electricity and water etc. Hierarchical N/w Supply Chain etc. Virtual N/w: combination of physical sites and/or computer sites linked by communication technologies via cable, satellite and fixed lines. Endnodes are accessed by customers by phone, fax, TV, Comp etc.

Hub and spoke network

Ring network

Hierarchical network

Comparing Physical & Virtual Networks

Service Product Network Ownership Capacity Capability Flexibility or Resilience Central Issues

Role of Technology
Multiplying Knowledge For database management, Call centers in IT cos. involve customers by creating Help, FAQs. Streamlining Service Car rental cos. especially while returning cars Smart Cards. Customising & Personalising Service Supermarket loyalty cards for CRM. Increasing Reliability Office computers are maintained remotely eg. Timed anti-virus scans etc. Facilitating Communications Telephone calls transformed into multimedia, Fax etc. Augmenting the Service Barcoding, RFIDs, EPOS. Reducing Cost fewer errors.

CASE: North Island Hospital

This case demonstrates that technology and information flows are inextricably part of a service. A key message is the need for good communication and coordination in the management of networks. Through exploration of the costs and benefits of a piece of new technology solution is to be worked to what appears to be an inextricable problem.
Questions 1. Assess the advantages and disadvantages of investing in the new technology for the hospital and its patients. 2. What advice would you give Rod? Detailed questions 1. What are the medical and financial benefits for patients undergoing laser treatment? 2. Evaluate the management (network) issues associated with the purchase of the new laser technology, in terms of location, capacity, capability and resilience / flexibility. 3. Provide some suggestions as to how the hospital could share the cost of the new technology with other hospitals and evaluate the likely advantages and problems associated with each option. 4. What advice would you give Rod?

The key problem is, the capital outlay for the equipment coupled with the fact that it would only be required 2 hours per week. The theatre charge includes the use of the facilities and equipment. However, the cost of the laser alone would be around $4,000 per hour. The standard theatre charge is not appropriate. ($1.5 depreciated over three years = $500,000 per year which is $10,000 per week and $4,000 per hour if it is only used 2 hours per week.) If this were fully charged to the patient the cost of the new surgery would be around $6,000. The real problem is therefore that there is insufficient demand at this one site. If the equipment could be shared by all five hospitals the cost would be much improved. (Assuming each of them had a demand of 2 hours per week, the cost per hour of the laser equipment drops to $800.)

Management (network) issues Location Location is going to be a critical factor in the decision. The problem is that the five hospitals are spread around the perimeter of the island. Although most patients will be fit to travel, the cost and time involved starts to outweigh some of the benefits of the new surgery. There is no hospital in the middle of the island so no one hospital is better situated than another. Capacity The capacity problem is that, like much long-term capacity, it can only be bought in large and expensive lumps. If the laser were to be purchased it would certainly exceed the demand forecast for the whole island. It might be worth briefly revisiting the ways of managing capacity as the basis for making some suggestions. Capability The equipment appears to be capable of doing its job. It is also possible that it might be effective for other medical conditions? Resilience/flexibility The equipment is inflexible in that it appears to be only suitable for one use. (It is, however, compact which is the key to the solution.)

Suggestions North Island buy the equipment and encourage all patients to come to them for treatment (new fly-zap packages). Encourage tourists to visit New Zealand who also need the surgery. Send laser signals by satellite to the other hospitals.

Location no one hospital is better situated than another. Capacity the only approach in the list that has any merit is subcontracting Resilience/flexibility it is compact.

A New Zealand-wide organisation was created to provide sub-contract mobile Lithotripsy technology (MLT) to the five hospitals. MLT is provided in a fully equipped bus, including a built-in operating theatre where Lithotripsy is performed. This bus travels throughout New Zealand, using local hospitals for the support functions of patient scheduling, and pre and post-operative care and recovery. A schedule is provided to contracted hospitals at the beginning of each year, giving the planned times of bus arrivals in each location. Each hospital is responsible for providing staff to help in the scheduling, operating support, and recovery of patients as well as pre and post-operative recovery facilities. The Lithotripsy bus visits each hospital for two days every six weeks (an average of 2.6 hours per week).

What do you think were the problems associated with the MLT? Whilst out-sourced service provides access to more sophisticated technology, increases in-house capacity and saves capital expenditure, there were some problems with the service including: Extra hospital resources (staff and facilities) were needed on the days that Lithotripsy takes place The MLT used the same facilities that the hospitals use on a daily basis for normal procedures, which caused congestion and frustration on Lithotripsy days. Staff were dissatisfied with the addition of extra duties on Lithotripsy days. There were communication delays between the participants involved in the Lithotripsy process: The MLT provider, the bus itself, the urologists, and the hospital. This resulted in an increase in overtime hours, occasional re-scheduling of patients and staff, and staff dissatisfaction with the uncertainty and inconvenience of the Lithotripsy service. In essence a virtual network was created, a ring network, and the key issue in the management of networks, either virtual and/or physical, is communication and coordination of the elements in the network.

Thank You!