disruptive technologies and consumer focus drive innovation and transformation in healthcare it
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TECHNOLOGY BUSINESS RESEARCH, INC.
Disruptive technologies and consumer-centrism drive innovation and transformation in healthcare ITInsights from TBR’s 4Q14 Healthcare IT Services Benchmark
June 9, 2015
TBR
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Quarterly Healthcare IT Services Benchmark Readout: Presenter
John CaucisSenior Analyst and Practice Manager, Health and Public Sector 14 years of experience
Email: [email protected]: @jcaucistbr
Today’s presenter
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TBR’s HITS reports deliver unique insight and value through in-depth analysis in a concise, consumable format
TBR Healthcare IT Services Overview
Clients gain advantages and a better understanding of revenue opportunities through our reports and their personal relationships with TBR
• TBR covers 20 vendors continually in its Healthcare IT Services Benchmark.• We publish five reports semiannually focused on the healthcare IT services (HITS) businesses of
Accenture, CSC, Dell Services, HP Services and IBM Global Services.• The healthcare activities of CGI, Cognizant, Deloitte Consulting, General Dynamics, HCL, Infosys,
Leidos and Xerox are covered in TBR’s IT services quarterly and semiannual reports.• TBR’s Healthcare IT Services Benchmark includes the activities of Allscripts, Cerner, CPSI, Epic, Harris,
McKesson and NextGen.o TBR reports are unique due to their deep, holistic analysis of leading vendor businesses.o Financial modeling and TBR insights help customers build a better understanding of vendor
business models.o TBR reports and webinars are responsive to client timelines, clear and concise, and provide
insights across multiple layers of an organization.o TBR’s strategic assessment provides an impartial reality check on how vendors are performing in
their strategic objectives and the overall market.
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Quarterly Healthcare IT Services Benchmark Readout: Agenda and Format
Today’s Agenda
1. Key fiscal results from the 4Q14 benchmark
2. Vendor investments and strategic actions
3. Outlook for 2015
4. Q&A
TBR
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Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Benchmark Highlights for 4Q14
HITS investment has slowed, but IT services vendors continue to target the health vertical as a strategic growth market
SOURCE: HTTPS://PBS.TWIMG.COM/PROFILE_IMAGES/3383727639/6E3F0F9491F125D28D9CE5EF7E3EE924.JPEG
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SOURCE: HTTPS://T1.FTCDN.NET/JPG/00/73/45/50/240_F_73455041_RUPDONQGRVPADKWIGQKBZTLQ419GDYOK.JPG
Slowing HITS growth has not deterred vendor investments.
EHR market maturation restrained HITS growth in 2014, but opportunities remain across global HITS markets.
Vendors are positioned for accelerating growth in 2015 & 2016.
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The deceleration in the electronic health record (EHR) market caused growth to contract throughout 2014, but demand remains buoyed by the emerging markets for EHR swaps, predictive analytics, mobility and security
Fewer greenfield EHR opportunities and an increased focus on reducing IT costs led to a deceleration in HITS revenue growth in 4Q14
Quarterly Healthcare IT Services Benchmark Research Highlights
TBR
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HITS Benchmark Data for 4Q14
Margin Leaders
Growth Leaders
Outperformers leveraged their analytics and consulting solutions to drive growth, while laggards were pressured by declining public sector spend
Quarterly Healthcare IT Services Benchmark Research Highlights
Outperformers
Laggards
TBR
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Lower public sector spend and a maturing EHR market restrain growth in many regions; APAC is poised for more aggressive growth in 2015
Quarterly Healthcare IT Services Benchmark Research Highlights
Geographic HITS Trends for 4Q14
SOURCE: HTTP://WWW.ANSELLEUROPE.COM/ANSELL/MEDIA/IMAGES_EN/EMEA.GIF
The global HITS market is on the cusp of a new “post-EHR” era.
Growth slowed in EMEA, but EMEA still leads all regions.
Less developed markets restrain APAC growth, but the tide is turning.
SOURCE: HTTP://GOO.GL/CQM1OH
SOURCE: HTTP://WWW.INVENTIVETRAVELMICE.COM/IMG/IMAGES/EMEA-APAC.JPG
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Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Benchmark Highlights for 4Q14
HITS vendors leverage R&D, M&A and new alliances to expand in growing regions and emerging service areas
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Slowing HITS growth has not deterred vendor investments.
EHR market maturation restrained HITS growth in 2014, but opportunities remain across global HITS markets.
Vendors are positioned for accelerating growth in 2015 & 2016.
TBR
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R&D increasingly underpins HITS vendors’ efforts to expand offerings and enhance portfolio relevance
Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Vendor Investments
Allscripts
$500
M+ in R&D since 2013
Accenture
Life Sciences Cloud for R&D
R&D
TBR
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With demand for analytics and interoperability on the rise, HITS vendors form alliances to help clients meet Meaningful Use standards
Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Vendors: Key Alliances and Partnerships in 4Q14
Airstrip, Apple and CSC: Mobility solutions
Express Scripts: Electronic prior authorization
Merge Healthcare: Interoperability
Allscripts
IBM
NextGen
TBR
12 TBR HITS Benchmark Webinar | 6.9.15 | www.tbri.com | ©2015 Technology Business Research Inc.
Vendors are positioned for accelerating growth in 2015 & 2016.
Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Benchmark Highlights for 4Q14
Growth will begin to rebound in 2015 as the volume of work increases in EHR upgrades, security, analytics and RCM
SOURCE: HTTPS://PBS.TWIMG.COM/PROFILE_IMAGES/3383727639/6E3F0F9491F125D28D9CE5EF7E3EE924.JPEG
SOURCE: HTTP://HELENMACMILLAN.COM/WP-CONTENT/UPLOADS/2013/05/OPPORTUNITY.JPG
SOURCE: HTTPS://T1.FTCDN.NET/JPG/00/73/45/50/240_F_73455041_RUPDONQGRVPADKWIGQKBZTLQ419GDYOK.JPG
Slowing HITS growth has not deterred vendor investments.
EHR market maturation restrained HITS growth in 2014, but opportunities remain across global HITS markets.
TBR
13 TBR HITS Benchmark Webinar | 6.9.15 | www.tbri.com | ©2015 Technology Business Research Inc.
Strategic acquisitions in 2014, Cognizant-TriZetto and Cerner-Siemens, will also buoy average HITS market growth in 2015
Quarterly Healthcare IT Services Benchmark Research Highlights
TBR
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Predictive analytics, cloud, cyber, EHR replacement and RCM will be the key opportunities for HITS vendors in 2015 and 2016
Quarterly Healthcare IT Services Benchmark Research Highlights
HITS Trends
SOURCE: HTTP://GOO.GL/7WM6SG
SOURCE: HTTP://GOO.GL/XOQ05U
SOURCE: HTTP://GOO.GL/BLNJHM
HITS vendors will continue to increase R&D spending on next-generation healthcare IT solutions that incorporate cloud, analytics, security and mobility.
EHR replacement and revenue cycle management will increase in prominence as growth opportunities for midmarket and large global HITS vendors.
Predictive analytics will be increasingly critical to improving patient outcomes and reduced costs.
TBR
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Questions?
Quarterly Healthcare IT Services Benchmark: Questions
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James McIlroy Vice President of SalesEmail: [email protected]: 603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research
Quarterly Healthcare IT Services Benchmark: Contact Information
John CaucisSenior Analyst and Practice Manager, Health and Public Sector 14 years of experience
Email: [email protected]: @jcaucistbrTelephone: 603.758.1836
TBR
17 TBR HITS Benchmark Webinar | 6.9.15 | www.tbri.com | ©2015 Technology Business Research Inc.
PSP Syndicated Research CoverageIT Services Vendors Public Sector Vendors Benchmarks
(Benchmark XLS data also available)
• Accenture• Atos• Capgemini• CGI*• Cisco• Cognizant• CSC• Dell• EMC Services*• Fujitsu• HCL Technologies• HP• IBM Global Services• Infosys• Tata Consultancy Services• T-Systems• Unisys• Wipro IT Services• Xerox
• Booz Allen Hamilton*• CACI International*• General Dynamics IS&T*• L-3 Communications*• Leidos*• Lockheed Martin IS&GS*• ManTech*• Northrop Grumman IS&TS*• Raytheon Intelligence, Information
& Services*• SAIC*
• Global Delivery Benchmark* • Healthcare IT Services Vendor
Benchmark• IT Services Vendor Benchmark • Management Consulting Benchmark*• Public Sector IT Services Benchmark• BI Services Benchmark*• Ad Tech Vendor Benchmark*• Digital Marketing Services Vendor
Benchmark*
Management Consulting Vendors
• Bain & Company*• Boston Consulting Group*• Deloitte Consulting*• McKinsey & Co.*• PwC*
Healthcare IT Services Vendors
• Accenture Healthcare IT Services*• CSC Healthcare IT Services*• Dell Healthcare IT Services*• HP Healthcare IT Services*• IBM Healthcare IT Services*
TBR Professional Services Syndicated Coverage
*Semiannual publication
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