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Doing More With Less

Doing More With Less. Non-Traditional Approach To IT Dr Alan Lloyd Chief Systems Officer Sonic Healthcare Group. The Sonic Group. Pathology & Radiology Service Provider 15 Yrs in business & ASX listing A$1bn Revenue 37% growth in revenue 20% growth in earnings 10,000 employees

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Doing More With Less

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  1. Doing More With Less Non-Traditional Approach To IT Dr Alan Lloyd Chief Systems Officer Sonic Healthcare Group

  2. The Sonic Group • Pathology & Radiology Service Provider • 15 Yrs in business & ASX listing • A$1bn Revenue • 37% growth in revenue • 20% growth in earnings • 10,000 employees • Operational in : • Australia • New Zealand • United Kingdom • Hong Kong

  3. Sonic Healthcare Pathology Laboratories TDL UK 40,000 PATIENTS / DAY

  4. Pathology & Radiology is Big Business • Major Laboratories in: • Sydney (Douglass Hanley Moir) • Brisbane (Sullivan Nicolaides) • Melbourne (Melbourne Pathology) • Auckland (Diagnostic Medlab) • 40,000 Patient samples a day • Over 100,000 Tests daily • Aging Population: • Today 6:1 • By 2031 3:1

  5. I.T. is Integral to Sonic Operations SONIC I.T. POLICY • OWN AND CONTROL I.T. SYSTEMS • SOFTWARE DEVELOPMENT • INFRASTRUCTURE • SUPPORT • Automation

  6. General Workflow Principles Management Feedback Innovation Benchmarking KPI’S INPUT OUTPUT $$ WORK $$

  7. The ‘Challenge’ • Concentrate Resources on the ‘Strategic Initiatives’ • Incorporate ‘Best Practice’ and standardise • Enable continuous improvement • Provide excellent customer service • Reduce the ‘Per Patient’ cost of I.T. IT Spending as Percentage of Revenue Telecommunications 12.5 FinancialServices 9.7 HealthCare 3.7 3.3 Manufacturing Utilities 2.6 Retail 1.7 Mining 1.0 Choose The Right People & The Right Technology

  8. Compare I.T. Costs Choose the Best System Standardise Why Cache? High Performance Multidimensional Database Outperformed Relational Databases 5 Times Less processing Power Ten Times Less Storage 300% DB2 UNIFY CACHE Benchmarking 8 LABORATORIES

  9. Complete Flexibility with One Technology “THIN CLIENT” Web Environment “CSP” “THICK CLIENT” Development Environment OBJECT ARCHITECTURE CHUI Native ‘M’ SQL ODBC Multidimensional Database

  10. SONIC I.T. MANAGEMENT Tightly Coupled To Business Development CEO CFO COO CSO SITM SITEC HR & Marketing

  11. Development Methodology SITEC Projects PMG SITM RFC BDU’s Business Analysts Programmers Analysts

  12. High Level Control – Law of Diminishing Returns GAIN $$ WORK $$

  13. Example of our Rapid Development • 2001 Radiology • The Requirement: • Web based RIS • Competitive price • Competitive functionality • Electronic Transmission of Results • From vision to implementation in less than 12 months • Cache Server Pages (CSP) is the core technology

  14. IT Standardisation 1998 1999 2001 2002 2003 2004 2000 TASMANIA CAP/BARR/ WAGGA CLINPATH SOUTHERN CLINIPATH DHM CAPITAL SAT BARRATTS COOLUM FIVE YEAR PLAN Y2K MELBOURNE SNP RIS QXR CASTLEREAGH SKG ILLAWARA HIG

  15. Outcomes • 30% less investment on technology than the industry norm • Very high Operational Responsiveness • Our Technology Platform positions us for growth • Retaining the IP - Development of systems to support the core operations are all in-house • In Australia our IT operation - 53 people supporting a market share of 44%

  16. Doing More With Less • Technology is part of our business culture and the business culture is part of IT • Business Productivity Improvement is founded on our IT Core Competence. • Ownership ensures Retention of IP • Removed the translation of the business requirements into IT through involvement of the BDU’s • High level executive control

  17. PRODUCTIVITY AND DIFFERENTIATION COST ADVANTAGE DIFFERENTIATION ADVANTAGE W I D E N THE M O A T

  18. The Non Traditional Approach to IT “It is our belief that unique Sonic operational models, including workflow, laboratory design and computer software, may be used to the company’s advantage in suitable offshore markets.” Dr Colin Goldschmidt Managing Director

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