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Successfully Implementing an Aggregate Spend Solution
February 19, 2013
Agenda
Understanding the Current Environment - Survey
Implementation Case Study
Approach for Implementing Aggregate Spend Solutions
Key Takeaways
Understanding the Current Environment - Survey
My Company is Live on an Aggregate Spend Solution
• The system optimally supports the business process
• Not all processes are automated but the solution is functional
My Company is Currently Implementing an Aggregate Spend
Solution
• First Implementation
• Implementing upgrades or improvements to the existing solution
• Replacing Existing Solution
My Company is Currently Considering a new Aggregate
Spend Solution
AGGREGATE SPEND SOLUTION/SYSTEM EFFECTIVENESS
Understanding the Current Environment - Survey
My Implementation was completed on time, within budget
and encountered minimal issues
Experienced Issues implementing the Aggregate Spend
Systems
• Experienced difficulties implementing business/functional
requirements
• Not all data elements captured in the source systems
• Encountered delays integrating spend reporting system
Will need to make modifications based on release of final
rule
IMPLEMENTATION EFFORT
Implementation Case Study
Implementation Case Study REQUIREMENT
As a result of a DPA a mid size medical device company
was required to implement a solution that would allow them
to manage all items related to HCP spend
• Intent of the requirement was provide controls and reports for all
elements across the spend reporting continuum
Without understanding business requirements or determining
required functions, executive management selected a
software solution to address DPA requirements
“Ready, Fire, Aim….” approach resulted in the following
gaps:
• Business Process was not identified
• Data requirements were not identified
• Users were not involved in the solution/software selection
Implementation Case Study SELECTED SOLUTION
After 1 year of attempting to implement the solution, the
manufacturer abandoned the effort to implement the
selected solution
Resulted in:
• Loss of confidence in attempted solution by the business users
• Loss of confidence by the Federal Monitors
• Significant budget overrun
Manufacturer revised approach
Implementation Case Study RESULTS
Determine
Requirements
Determine
Business
Process
Select
Software
Solution
Develop
Functional and
Technical
Specs
Implement Test and
Rollout
Approach for Implementing
Aggregate Spend Solutions
Implementing an Aggregate Spend Solution APPROACH
The “Ready, Fire, Aim…” approach usually results in missteps, missed
milestones, overspent budgets and missed requirements
A disciplined system development life cycle provides for the necessary
requirements, implementation and testing phases that help deliver an
appropriate solution
Understand the
“As-Is”
Environment
Determine
Requirements
for Desired
State
Determine
Gaps
Design
Solution Implement
Solution
Test and
Rollout
Implementing an Aggregate Spend Solution UNDERSTAND THE “AS-IS” ENVIRONMENT
Step 1: Assess Current Landscape
Document the “as-is” process for capturing all spend data across
the spend reporting continuum
Create an inventory of existing master data elements (i.e. HCP
master data, natures, purposes, product, etc.)
Create an inventory of systems to capture and manage HCP master
and spend data
Challenges
o Processes are not fully developed or integrated
o Different business units are involved and priorities differ
o Managing Uncertainty
o Organization may not be aware of all necessary reporting elements
Implementing an Aggregate Spend Solution DETERMINE REQUIREMENTS FOR DESIRED STATE
Step 2: Develop a functional vision for the “to-be” state
Develop process/work flow descriptions that describe/illustrate how the
“to-be” process should function
Identify all functional processes, regulatory requirements, work flow
requirements and interdepartmental dependencies
Identify required data elements to satisfy process, regulatory, work flow
and interdepartmental requirements
Identify technology touch points or system interactions throughout the
business process
Identify control points or items
Ensure an ability to produce required reports
Ensure an ability to produce an audit trail
Implementing an Aggregate Spend Solution DETERMINE REQUIREMENTS FOR DESIRED STATE
Step 2: Challenges
o Planning/Implementing for regulatory changes
– Requirements recently published in the Final Rule
o Data Collection beginning 1 August 2013
o Disclosures must be reported to CMS by March 31, 2014
o Data published for public on Sept 20, 2014
o 45-day “review and correction” period to ensure accuracy of disclosures
o 15-day post-review period
o Resistance to change
o Looking for technology solutions before completely identifying
desired processes, or functions or approaches
Implementing an Aggregate Spend Solution DETERMINE GAPS
Step 3: Identify gaps that exist between the existing
environment and desired “to-be” state
Determine gaps for:
‐ Business processes,
‐ Functional requirements, and
‐ Data elements
Identify root cause for gaps identified – not all gaps are system
related
Identify approach for closing identified gaps
Challenges
o Gaps in data collection can be result of gaps in policy or result from
business processes not being followed
Implementing an Aggregate Spend Solution DESIGN SOLUTION
Step 4: Design solution that will support the desired “to-be”
state
Determine system requirements that support business process,
functional requirements, regulatory requirements, workflow,
reporting requirements
Incorporate all design elements in a specification document
Select system components for the solution that satisfy functional
and business requirements
‐ Balance Processes with Technology
‐ Consider a Heterogeneous Solution
Implementing an Aggregate Spend Solution DESIGN SOLUTION
Step 4 Challenges
o Teams shift focus to technology features instead of satisfying
business requirements
o Ensure solution is scalable and can adapt to a changing business
and regulatory environment
o Balance solution design with what’s “doable”
‐ Budget
‐ Time
‐ Resources
‐ Regulatory requirements
‐ Mandatory Milestones
Implementing an Aggregate Spend Solution IMPLEMENT SOLUTION
Step 5: Implement design and prepare for process changes
Implement selected vendor solutions
Develop data extraction and load routines
Begin developing system and user acceptance test plans and
scripts
Ensure that implemented functionality developed is cross
referenced to functional requirements and is operational in
accordance with the specification
Implementing an Aggregate Spend Solution IMPLEMENT SOLUTION
Step 5: Challenges
o Business users want to change requirements during implementation
phase
‐ “Lock Down” requirements and minimize scope creep during the
implementation phase
o Not enough time is allocated to the implementation and unit test
phase
o Time for testing is usually the first area “squeezed” when other issues arise
and milestones aren’t adjusted
o Ensure sufficient unit testing is conducted by vendor and internal
resources
Implementing an Aggregate Spend Solution TEST AND ROLLOUT
Step 6: Conduct System Test and User Acceptance Test
(UAT) - Deploy Solution to the Production Environment
Conduct full end to end testing and ensure that all functions operate
as specified in the requirements documents
Ensure full participation by the User Community during UAT
Ensure proper training is conducting
Implement support infrastructure sufficient enough to address on
going business needs
Step 6 Challenges:
o Business users have other commitments
o Support infrastructure must be established before the solution is
deployed
Implementing an Aggregate Spend Solution PROJECT MANAGEMENT
Good project management is key to ensuring that the
solution implementation is successfully deployed on-time
and within budget
Ensure structure/procedures established to proactively manage:
– Project Schedule
– Project Budget
– Issues – technical, compliance and business
– Risk
Challenges
o Importance of assigning a skilled project manager full-time is
sometimes overlooked
o Project manager must have understanding of the subject matter,
compliance requirements and has IT PM skills
Sufficient number of project resources should be assigned, roles
clearly defined and oversight structure must be maintained
Implementing an Aggregate Spend Solution RESOURCES AND STAFFING
Role Responsibilities
Executive
Management/Steering
Committee
• Provide Executive leadership and guidance
• Resolve issues/ “sticking points”
Project Core Working Team/ IT,
Compliance and Business
Sponsors
• Overall responsibility for Quality Assurance
• Content expert subject matter, regulatory requirements, business functional
requirements, IT interactions
• Provide independent review of all deliverables generated by the project team
• Work closely with the project team to ensure total quality in all project activities
Project Manager • Manage day to day activities of the project team
• Lead and manage project activities and resolve issues
• Verify the completion of milestones and deliverables
• Work with the project team to develop project deliverables
Business Analysts
IT team
• Create all project deliverables
• Performs business, process, and data analysis
• Evaluate/assess technical and data components of solution architecture
• Complete application configuration
• Develop data analysis models
• Conduct system/integration tests
• Conduct UAT
Key Takeaways
Recap and Key Takeaways
Mistakes are made when companies select software
solutions prior to understanding the business needs,
processes and requirements.
• Avoid the “Ready, Fire, Aim…” approach at all costs
Implement solutions using a disciplined system development
life cycle
• Implementation cannot always be rushed to meet an established
milestone without introducing risk
Ensure that the project is staffed appropriately with enough
resources that have the necessary skill sets
Thank you!
Suj Patel
Director
312.833.2635
Mark Linver
Managing Director
312.515.1677