Strategic Customer Management: Using Customer Datato Create Value

April 13, 2007

Marty MoseleyChief Technology Officer

2

Key Enabling Infrastructure for SOA Deployments

Maintains the integrity of underlying data as the consuming applications become increasingly fragmented

The future is a Service-Oriented Data Architecture

DBDW DW

DB

DataWarehouse

ETL Service-OrientedData Architecture

(SODA)

X

X

X

DB

X X

DBX

3

The Problem…

Data Sources

Marketing

DataWarehouse

CallCenter

Sales ERP

Web

SelfService

Consuming Applications

Call Center

Portals

Business Intelligence

Dashboards

CompositeApplications

Sales/MktgAutomation

ERP

IDC Estimates:Average company has 49 applications in 14 different databases Typically no more than 20% of the customer data resides in one location

ComputerWorld:Fortune 1000 companies have seen their data grow on average from 190TB to 1 petabyte (1 million gigabytes) over the past 3 years

4

Enabling a Service Oriented Data Architecture

Customer Data ServiceCustomer Data Service

CDI Service Examples

CDI Service Examples

Create Unique CustomerCreate Unique Customer

Get Corporate HierarchyGet Corporate Hierarchy

Identify Highest Value CustomerIdentify Highest Value Customer

Consuming Applications

Call Center

Portals

Business Intelligence

Dashboards

CompositeApplications

Sales/MktgAutomation

ERP

Data Sources

Marketing

DataWarehouse

CallCenter

Sales ERP

Web

SelfService

5

CDI Is at Work When You…

…Purchase Software

…Pick Up Your Prescription

…Apply for a Loan

…Check In & Earn Points

…Identify Risks

…File Insurance Claims

…Register for careCedars-Sinai

Health System

6

CDI is the “Entry Point” to MDM

2010

Products

Equipment

Financial Assets

Vessels

Containers

Weapons

Locations

Drugs

Suppliers

Crimes

VINs …

Customers

Prospects

Patients

People

Citizens

Employees

Vendors

Suppliers

Trading Partners

CDI Focus ison Individual & OrganizationalEntities:

MDM Expands the Problem to Include New Entities:MDMMDM

$6.5B$6.5B

CDICDI$2.1B$2.1B

7

CDI – “The Cornerstone” for Internal Company, Regional, National & Global Initiatives

FBIPolice

FBI

INTERPOL

Hospital Regional Healthinformation Org.

National HealthInformation Network

Disease Management(SARS, Aids, Avian Flu)

Law Enforcement Crime/IntelligenceAnalysis

Homeland Security Immigration

Know Your Customer e-Commerce OFAC Compliance Money Laundering

8

Customers Will Implement…Then Change

CentralizedHybridRegistry

9

ROI – The Journey

Time - Months

Business Value &

ROI

High

Low

Potential End State

CDIStart

Initial Phase

ROIInitial

Resolve…Relevant

Relationshipsin the Data

Synchronize…Data, Systems,

Processes & People

Master…Your Data

6 12 18 24

Start w/ Resolve

Start w/ Master

10

Initiate Provides an Elegant Solution…to a Complex Problem

Marketing

James Jones(Name)

35 W. 15th Street(Address)

Toledo, OH(Address 2)

ERP

Jim Jones(Name)

35 West 15th St.(Address)

Toledo, OH(Address 2)

Sales

J. Jones(Name)

35 West 15th Street(Address)

Toledo, OH(Address 2) Sales

CustomerSupport

Marketing

INFORMATIONJames(First)

35 West 15th Street(Address)

Toledo(City)

Jones(Last)

OH(State)

MGender)

30(Age)

11

Initiate Identity Hub™: “Strength at the Core”

Initiate Identity Hub™ SoftwareInitiate Identity Hub™ Software

Extr

act

sExtr

act

sA

PIs

AP

IsW

eb

Serv

ices

Web

Serv

ices

Even

ts &

Ale

rts

Even

ts &

Ale

rts

Mess

ag

ing

Mess

ag

ing

Orc

hest

rate

dS

erv

ices

Orc

hest

rate

dS

erv

icesData

StewardshipData

StewardshipBatch

SupportBatch

Support

TransactionSupport

TransactionSupport

Security &Audit TrailSecurity &Audit Trail

AccuracyAccuracy

PerformancePerformance FlexibilityFlexibility

ScaleScale

Call CenterCall Center

CRMCRM

SalesSales

OrdersOrders

Self-ServiceSelf-Service

WebWeb

MarketingMarketing

ProfilesProfiles

12

Proven With Large, Blue Chip Organizations

Healthcare Commercial Public Sector

Partners

13

Initiate Across the Healthcare Ecosystem

AnthemBCBS of MNBS of CABCBS of KansasHumanaOptumUnited HealthWellPoint

AlbertsonsSupervaluRxHubWal-MartCVSKroger’sLong’sSurescripts

Pharmacy & PBMs

Regional/National

Initiatives

Payers

PAML

Reference& Referral

Labs

Hospitals & IDNs

FL Dept.of HealthOntarioManitoba

Technology & Data

Providers

IBMAgfaCSCAccentureMicrosoftIDXIngenixQuovadxNDMA

Carolinas HealthCareCatholicHealthcare WestCedars Sinai

Children’s HospitalDenverGundersen LutheranIowa Health System

Lehigh Valley HospitalLuther MidelfortMaine General HealthNorthwest CommPark Nicollet

Partners HealthCarePeace HealthProvidence SentaraSouthern Illinois

Sparrow HealthSutter HealthTrinity Health

Physicians & Other Caregivers

DCIPASutterUPHPark Nicollet

Initiate has become a Initiate has become a ““verbverb””

AvailityBronx RHIOCaresparkBMINuffield Hospitals

ACT HealthNewfoundlandNORradAlbertaSaskatchewan

VABritish ColumbiaCalgary Health RegionCapital Health Authority

BannerBaylorBJC

Universityof CA, DavisUPMC

Corporate OverviewCorporate Overview

C A L I F O R N I A

A L A S K A

M O N T A N A

O R E G O N

W A S H I N G T O NI D A H O

U T A H

$185M+$185M+Annual RevenueAnnual Revenue

25%25%Per YearPer Year

GrowthGrowth

Unique PatientsUnique Patients7M7MInitiate Identity Hub™Initiate Identity Hub™

ininTransactionsper Day

Transactionsper Day

36,00036,000

Results Linkedin CDR

Results Linkedin CDR

130M130M

4 Successful4 SuccessfulJoint VenturesJoint Ventures

Business & IT ObjectivesBusiness & IT Objectives

Improve Operations

Increase Customer Satisfaction

Improve Customer Service

To provide a complete view of each patient to:

Improve Patient Safety

Quality of Care

Business & IT Goals Achieved EarlyBusiness & IT Goals Achieved Early

Patients receive a consolidated bill reflecting allepisodes of care, regardless of where the care was provided or which insurance provider is responsiblefor the claim Patients can track deductibles, co-pays andother financial matters in a single statement Physicians, payer, and public health view comprehensive, linked lab results from multipledoctors and hospitals, enabling them to recognizetrends, make comparisons and deliver higherquality, more cost effective patient carePAML information is filed with other clinicalinformation in a community clinical record

Additional Value Achieved Additional Value Achieved DSO (Days Sales Outstanding)from 60 days down to 35 with improved data quality (1 day dropin DSO saves $150,000 annually)

500-1,000 mail returns each day eliminated - saved $10,000 permonth in reduced mailing once Initiate Identity Hub™ software “remembers” bad address

Enabled API Integration withUS Post Service and Melissa Data for address validation

6060DaysDays

3535DaysDays

+ Improved Data Quality

APIAPI CorrectAddress?

Additional Value Achieved (cont’d)Additional Value Achieved (cont’d)Enabled value add programs(Client retention as valuableas new market share)

Utilization reporting for payers

CDI/EMPI generated accurate list for Group Health to send right literature to the right patients (e.g. diabetic literature)

PAML knows the patient fromencounter to encounter and is ableto link across business units

Enabled PACLABphysician portal

CDI/EMPICDI/CDI/EMPIEMPI

UtilizationReporting

DiabeticLiterature

Additional Value Achieved (cont’d)Additional Value Achieved (cont’d)

Enabled any care provider to communicate with the CDI/EMPI via web service queries (e.g. client hospitals use their own web portal application to accesslab results)

Enabled Microsoft'sCRM application

Web ServiceQueries

EMPIEMPIEMPI

Future PlansFuture Plans

Expand use of Initiate Identity Hub™software within immediate region

Implement the Identity Hub to capture and link Provider ID’s across business systems

Integrate all Joint Venture PartnersEMPI for patient identification

Expand use through real time web service query for EMR order entry interfaces

21

Every Child Matters

HospitalHospital

CriminalRecordsCriminalRecords

BirthRecords

BirthRecords

SocialServicesSocial

Services

PolicePolice

SchoolSchool

SiblingsSiblingsPhysicianPhysician

C++ Binding

Enterprise Integrator

.NET Adapter

J2EE Binding

ETL Data Transform

Messaging Bus

(IBM MQ)

DataFederation

WebServices

DataHub

DataHub

DataHub

DataHub

DataHub

DataHub

DataHub

DataHub

DataHub

Sharing information on children will improve child Sharing information on children will improve child welfare and reduce the incidence of child abusewelfare and reduce the incidence of child abuse

ParentsParents

Enterprise Integrator

22

Initiate Systems…at a Glance

Founded: 1995, Chicago (HQ)

International Offices: London, Sydney, Toronto

Customers: 100+, multiple industries, 3 continents

Employees: 191 EOY 2006

Investors: Sigma Partners, Apex Venture Partners, In-Q-Tel, MK Capital

Revenue Growth

$17M

$26M

$45M

2004 2005 2006 2007P

Initiate is the leading pure play vendor in rapidlyInitiate is the leading pure play vendor in rapidlygrowing $6B CDI / MDM market opportunity growing $6B CDI / MDM market opportunity