Deloitte provides new research that models an alternate holistic platform ecosystem view that can help answer the question: do “free” expense management add-ons measure up?
When it comes to an organisation’s Enterprise Resource Planning system(“ERP”), it’s tempting to look at such systems as a solution that can do anything and everything. ERP systems can manage and integrate a variety of business processes. Activities like planning, purchasing, sales, marketing, finance, human resources and more are combined into one consolidated system that manages almost every aspect of a business. By extension, if an ERP offers an integrated tool, such as an expense management feature that is “free” within the subscription, why would an organisaation need to purchase any other financial applications? Though an ERP may be a powerful tool and serve as a foundation for successful business operations, no ERP can be as effective as a solution concentrating on specific business processes.
Pivoting processes towards apositive user experience
Healthcare has historically been a “non-mandate culture” where physicians and non-clinical staff have not faced the pressures of strictly enforced travel and expense policies. Furthermore, as an industry, many organisations remain on antiquated systems that are unfriendly to end users. The current business climate requiresa dedicated focus on cost containment, productivity, and the employee experience. As such, the emphasis on traveler, approver, and back-office experience and productivity should be a major driver for selecting the correct travel and expense (T&E) partner for the organisation. When a patient requires specific care, we seek specialists. The same concept applies to meeting an organisation’s business technology requirements. “Good enough” is not acceptable for patient care and it can no longer be suitable when selecting a technology vendor.
It is essential to consider the impact of an organisation’s policies and workflows on managerial and administrative approvers. While data insights may seem to be focussed on controls and compliance, those insights can allow organisations to fuel policies that empower end users and back-office staff to maximise their productive value. Access to data makes it more convenient for every level of the organisation to see what needs to be validated for approval. The importance of this cannot be understated; the less time staff must spend on tedious actions with non-essential, non-revenue-generating tasks like recording travel and expense claims, the more time they can spend on the core business, patient care, and other critical tasks.
The pace of innovation drives the need to differentiate
Hospitals, and more broadly, healthcare systems, are evolving. As the industry trends towards more hyper-focussed, value-based care, it is extremely important to target and transform clinical and non-clinical staff expectations, organisational digital transformation, and adoption of telemedicine/ health services. Increased competition from new healthcare-focussed tech startups, along with a push for greater price transparency and data-sharing, is focussing the industry on transitioning from reactive healthcare to preventative wellness. This has placed new demands on hospitals, necessitating a shift in how hospitals innovate and differentiate to compete in today’s dynamic marketplace.
Historically, hospitals have competed on cost, quality, and specialty offerings that focus on economies of scale, unique intellectual property, specialised resources, geographic presence, and brand recognition. In the current marketplace, hospitals are looking to stay ahead of the curve by adopting cutting-edge technologies, offering incentives for retaining talent, and improving patient outreach and experience within the healthcare ecosystem. These changes to the market are happening at an exponential rate and have a multifaceted impact that cannot be solved for by legacy technology solutions. Many health tech innovators realise that in order to stay relevant and thrive in the future, they must open their organisations to new business models.Hospitals can bridge the gap between these marketplace challenges and optimise their operations by moving towards technology solutions that consolidate several processes together by sharing information in an integrated, streamlined manner. SAP® Concur ® solutions are used by many organisations to optimise the experience for hospital workers by providing a digital network for transacting goods and services, which leads to opportunities for improved patient care, access to new capabilities, and revenue growth. The SAP Concur platform provides integrated and improved travel, expense, and invoice services that allow frontline workers, including clinical and non-clinical staff, to comply with travel and spending policies, enabling them to submit requisite information for reimbursementin a streamlined experience. End users can complete their tasks in a fraction of the time with easy-to-use mobile applications and built-in policy guidelines that drive users towards making good decisions.
These platform-enabled ecosystems are gaining traction in hospital care. Health tech investor trend data shows that interest in new business models was one of the three most impactful changes in 2021, a record-breaking year for health tech investments. Deloitte’s Lifesciences and Healthcare group interviewed a diverse set of leaders from hospitals, health tech innovators (startups), and investors to collect relevant data about the trends in the industry around technology. This series of interviews articulated five vital components of a successful, sustainable, platform-enabled ecosystem:
An engaging, digital experience can influence consumer behaviour, increase loyalty, sustain engagement and rewire the value chain.
With the exploration of each of the five pillars above, it should be clear what value such platform ecosystems can provide to hospital and healthcare organisations. Here are some questions that organisational leaders should keep in mind when evaluating an expense solution against the backdrop of a refined platform view: