Monday, April 13, 2009

CEO Memo to GE Healthcare

At the end of today's class we talked briefly about the importance of data in healthcare. The value of our health information cannot be underestimated and the ability for providers to access data literally saves lives. This is the reason why you hear about EHR's constantly. GE provides an EHR along with a suite of software solutions that are supposed to encompass the needs of an entire hospital (and its affiliated provider practices). Yet, many providers still prefer best of breed solutions rather than all-in-one packages. With interoperability in healthcare still a mess and the government pumping billions into EHR's across the country (http://news.cnet.com/8301-13578_3-10161233-38.html) how does GE position itself to capture the market?

I suggest one area they should consider is moving its solutions to the cloud. We all know about SaaS and the success of Salesforce.com, but in healthcare these ideas are relatively untapped (check athenahealth.com http://athenahealth.com/). GE still prefers the model of selling full software suites to consumers then adding maintenance service on top. I think there could be a mjor shift away from this model over the enxt ten years and I am not sure GE is positioned well to transition. Thoughts are welcome.

1 comment:

  1. Doug-- You should examine the benefits of being a service company (integrated package) versus a solution company focused on delivering what the customers want. IBM's transition may provide some insights (see the slides for next Monday's class). See also what's happening in other sectors that may provide a referent for your ideas. Can GE learn from what it has done in aircraft services or infrastructure, for example?

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