Payer-Provider Summit Boston 2014 - Presentation "4 Pillars of HIT Innovation: Data, Cloud, Mobile, and Social” with Scott Lundstrom, Group Vice President, IDC Health Insights Presentation "4 Pillars of HIT Innovation: Data, Cloud, Mobile, and Social” Four major technology trends will dominate the healthcare IT landscape in the years to come. These trends -- social media, cloud, big data and analytics, and mobility -- already are having a big impact on many healthcare provider and payer organizations, but CIOs will be faced with managing and deploying many of these technologies as their use becomes pervasive during the coming year. The answer to doing more with less in healthcare is getting closer to the patient with cloud, analytics, mobile, and social/unified communications. This presentation will discuss how these tools are being utilized in the payer-provider setting and strategies to improve collaboration. Additionally attendees will walk away with a greater understanding of how the 4 pillars address industry pain points, can accelerate growth and the implications for consumer engagement.

1. IT Strategies for an Uncertain Future -
Embracing Change and Innovation
Scott Lundstrom, GVP
IDC Health Insights

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Who is IDC Health Insights
 A global provider of research-based advisory
and consulting services focused on market and
technology developments impacting the global
health industry
 Part of IDC – the premier global provider of
market intelligence and advisory services for the
information technology, telecommunications, and
consumer technology markets
 Research led by a global team of 13 full-time
analysts with deep health industry experience,
and supported by over 1,000 IDC analysts
covering over 110 countries
 IDC Health Insights serves a diverse and
growing global client base, including executives in
the payer, provider, and life science industries
and suppliers in the healthcare and life science
industries
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Agenda
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Health Industry Transformation
 More than a small change or a bump in
the road
 A significant change in the overall
marketplace
 Assets, partnerships, products, and
platforms are all in flux with volatile
value proposition
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Creates opportunities and risks for all
market entrants and participants

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Elements of Transformation
Innovation
Business model change
Changes in channels
Changes in regulations
Changes in buyer behavior and preferences
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These elements often come together,
transforming multiple aspects of an
industry at once

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Industry Transformation on the
3rd Platform
Omni – Channel becomes real
Everything as a service
Customers become suppliers in the mid
market
Internet of Things
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IT Assets Matter Less
IT Agility Matters More

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Technology Fueled Business Transformation
Shifts Technology Buying Centers
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4 Pillars in Technical Innovation in Health
Workflow / Alerts / Notifications / Unified Communication
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The Need for Agility On-Demand
Turns IT Organizations Inside Out
 A shrinking set of “core” competencies are resulting in
expanded BP/IT outsourcing
 Public, private and hybrid cloud services have matured
 Creating value out of information
is the new IT mantra.
 New collaborative business models
are driving IT agility to meet
aggressive transformation demands.
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Technology
Buying
Centers Will
Permanently
Shift
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n=1227
Source: IDC Business Technology Study,
May 2013

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 More sourcing/less making
– Hybrid dev ops
– Contracting for risk and agility
 Analytics as architecture
– Data management
– Governance
 Commercialization
– Information / Process as a
service
– Joint ventures, partnerships,
networks
Organizational Changes
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40%
60%
Building /
implementing IT
Systems
Governing and
Managing IT
Systems
n=131
Source: IDC's 2013 IT Staffing Survey - Jun 2013
59%
41%
Technical Skills
are Primary
Skill Set
Business Skills
are Primary
Skillset

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Line of Business Will Outpace Spend by IT Org.
US Enterprise IT Spend by Functional Area
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8.6%
6.4%
5.8%
6.4%
10.4%
5.3%
8.5%
6.3%
6.9%
0%
4%
8%
12%
0% 20% 40% 60%
% Share of Spend, 2014
Security and Risk
Engineering, Architecture &
Research
Other Horizontal Operations
Accounting / Finance /
Billing
Marketing
Sales
Customer Service
Supply Chain Management
Industry Specific Operations
IT
2013-2014Growth
IT
Functional
Spending 2.2%

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Data-Centric Platforms Emerging
of New Cloud Apps Will Be
Big Data-Intensive

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Industry Platforms Expanding
The Number of
Industry Platforms
Will Expand to
by 2016

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ExpandingIndustry Platforms
Industry Platforms
Will Disrupt
of the Top 20
Market Leaders
in Most Industries
by 2018

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New “Killer Apps” Proliferating
Explosion of
New Cloud Apps
in 2013-2017
* Big Data-In

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Cloud First Lives Up to the Hype
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IDC CloudTrack, October 2013
n=177 for manufacturing
n=153 for healthcare
n=81 for government
n=80 for banking
N=66 for retail
N=23 for utilities

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Health Cloud Adoption
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Big Data Healthcare Use Cases
Waste and abuse
Outcomes
Technology
Patient engagement
Fraud detection
Chronic disease
Avoidable deathsRegulatory compliance
Quality of care
Medical research
Drug discovery
Clinical trials
Personalized medicine
Environmental impact
Re-admissions
Translational research
Public health
Adverse health events
Patient compliance
Source: IDC, 2012.
Activity

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IDC’s Mobile Maturity Model:
5 Stages of Progress
Ad hoc
Opportunistic
Repeatable
Managed
Optimized
Prove value
of mobility
with proof of
concept or
pilot projects
Reap early stage
benefits and
increase
constituent buy-
in with initial
mobility
implementations
Improve
cost/benefit
performance of
continued
implementations
with integrated
capabilities in
mobility
Drive competitive
differentiation
with enterprise-
wide governance
and management
in mobility
Sustain
leveraged
competitive
advantage
with continuous
improvement
and innovation
in mobility

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Driving Towards Health Systems Reform
Triple Aim
Health Reform
5 Year Horizon
Value of
Transformation
Patient Experience
Cost
Population Health
EHR
HIE
Compliance
Competitive
Advantage
Value-Based
Payments
Disease
Management
Risk Mgt
Integrated Care +
Health / Wellness
Sustainable
care
Volume-based
Payments
Predictive
Reactive
Prescriptive
At Risk
Contracting
Population
Health
C
Care Coordination
Now
Case
Management

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Essential Guidance
 Understand that quality mandates force a
different operating model on IT.
 Agility matters more – Assets matter less.
 Integration of clinical, operational, and
financial data becomes IT’s biggest
challenge.
 Governance and Data Management are
more important than you think.
 Non-traditional thinking will be rewarded.
 Evaluate new partnering opportunities.
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Questions?
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Scott Lundstrom
Group Vice President & General Manager
IDC Health Insights,
IDC Government Insights,
IDC Financial Insights
slundstrom@idc.com