Falck Healthcare can now track demand for its healthcare services on a daily basis – and purchase the right amount of capacity from its providers to meet optimal service levels. By understanding customer demand and trends in demand, Falck is able to focus on services that yield the highest revenue – helping to sustain its competitive advantage.
Falck Healthcare (Falck) is a healthcare matchmaker that provides physical and mental health services to companies that want to help their employees get fit and stay well. Falck relies on a network of independent healthcare professionals to deliver Falck Healthcare services. This unique, flexible business plan has paid dividends for Falck Healthcare; the division has experienced 100 percent business growth in just 2008.
||Getting daily information on our operations lets us maximize our business model advantage. When there’s no demand for a service, we can cut our costs immediately.
To stay profitable in an increasingly uncertain economic environment, Falck must manage its key performance indicators (KPI) and accurately anticipate how much capacity it needs. “If we buy 100 hours of treatment but our customers only use 80 hours, we have 20 hours of capacity we’ve paid for but didn’t resell,” explains Ran Segoli, IT manager at Falck.
But as the company grew, tracking demand and planning capacity proved more difficult. Line-of-business managers and executives received a series of individual, top-line reports based on operational data from multiple siloed systems. These reports were expensive to produce and often too old when delivered. “It was difficult to get a full, accurate picture of our operational performance,” says Segoli. “As a result, our reactions failed to reflect swift changes in market demand.”
In 2008, Falck Healthcare adopted a Microsoft® Business Intelligence (BI) solution based on Microsoft PerformancePoint® Server 2007 (now part of Microsoft Office SharePoint® Server 2007) and Microsoft Windows® SharePoint Services to help the company monitor, analyze, and respond to KPIs. “We wanted to see how many treatments and service hours we deliver, and bring this information into the decision-making context,” notes Segoli. “We knew that with Microsoft BI, we could save a lot of money by closing the gap between capacity and demand.”
Segoli adds, “With Microsoft’s new business intelligence roadmap, based on SharePoint Server, Falck Healthcare looks forward to extending these benefits.”
Microsoft Wins Out
Choosing a Microsoft BI solution didn’t take Falck Healthcare long. “We wanted to focus on KPIs and integrate business intelligence into our intranet,” explains Segoli. “PerformancePoint Server had the best price-to-functionality ratio, and SharePoint gave us an ideal platform for dispersing performance data in a personalized business context.”
The Real Picture
Falck Healthcare’s new BI solution integrates operational and financial data into a SQL Server® 2005 data warehouse, providing users with a holistic view of the business. The advanced visualization capabilities in PerformancePoint Server are helping Falck to spot trends and drive better decision making. And with SharePoint Services, the company’s employees are getting access to all performance data in one context that makes sense to them, and to their job functions.
Falck Healthcare is tracking performance against KPIs such as cost of goods; cost of operation; number of treatments per type of treatment; and treatment utilization by region, day, and customer segment. Executives receive monthly performance reports while managers get more frequent weekly reports. But at any time, Falck employees can access SharePoint sites to receive real-time updates of performance.
“Getting daily information on our operations lets us maximize our business model advantage,” says Segoli. “When there’s no demand for a service, we can cut costs immediately – and that flexibility is especially important in these tough economic times.”
Though Falck Healthcare implemented its Microsoft BI solution less than a year ago, it’s already reaping the benefits.
“The Microsoft BI solution gave us immediate insight into our business,” says Segoli. “We’re being more strategic about how we plan and acquire our resources.”
Falck Healthcare now knows exactly what type of services its customers use – and can more easily adjust its supply to match market demand. “Demand changes according to seasons, so if you have information that’s behind, you can’t really use it for planning,” says Segoli. “With Microsoft BI, instead of over- or under-estimating demand, which is costly to our business, we’re meeting it exactly.”
The Microsoft BI solution helps Falck Healthcare shave 5% of operational costs. “It’s already starting to pay for itself,” says Segoli. “If BI improves our capacity utilization by five points, we’ll achieve a complete return on investment within a year and a half of implementation. We fully expect that to happen.”
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Document published May 2009