New Oracle Report Shows that Healthcare Organizations are Accumulating Data at Unprecedented Rates, but Falling Short on Actionable Insights
Healthcare Executives Indicate They May Be Losing On Average 15 Percent of Incremental Revenue Per Year By Not Fully Leveraging Collected Data
Redwood Shores, Calif. – July 17, 2012
Today Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from the healthcare industry and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth.
Overall Key Findings
data deluge is here.
• One hundred percent of C-level healthcare executives surveyed say their organization is collecting and managing more business information today than two years ago, by an average of 85 percent more.
• For all industries collectively, 94 percent of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent more. Executives note they see the biggest data growth areas coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
for Improvement. Healthcare executives say they are not prepared to handle the increasing amount of data they face.
Forty percent of healthcare executives give their organization a “D” or “F” in preparedness to manage the data deluge. Seventy-seven percent of healthcare executives give their organization a “C” or below. Zero percent of executives give their organization an “A” in preparedness.
Healthcare respondents say they are unable to realize, on average, 15 percent of additional revenue per year, translating to an average $70.2 million per year (figure based on the average revenue of organizations surveyed) – by not being able to fully leverage the information they collect.
For all industries collectively, 60 percent of executives surveyed give their organization a “C” or lower in preparedness to manage the data deluge, and 93 percent believe their organization is losing revenue opportunities – representing on average, 14 percent of revenue per year. On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of their annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives give their organization an “A” in preparedness.
do not have or cannot get to the timely information they need. Healthcare executives are frustrated with their organization’s data gathering and distribution capabilities.
Healthcare executives call out “don’t have the right systems in place” as their top data management gripe, with 53 percent citing this response.
Rounding out the top three data management frustrations, 47 percent of healthcare executives say their organization cannot make sense of the information it has and translate it into actionable insight and 40 percent say their current systems are not designed to meet the specific needs of the industry.
applications are important.
Eighty-seven percent of healthcare organizations surveyed use industry-specific applications or software to help leverage information to make strategic decisions – one of the highest across all industries surveyed.
Healthcare executives, however, still see room for improvement in their industry-specific applications, with 57 percent looking for more industry-specific customer relationship management systems, 50 percent seeking more industry-specific regulatory compliance solutions and 40 percent looking for billing and revenue management solutions that are more specific to their industry needs.
is hard at work in some areas.
Healthcare executives point to patient relationship management (73 percent of respondents) and quality of care (70 percent of respondents) as the areas in which they are most actively gathering and analyzing information to drive efficiency.
They also call out financial management (63 percent of respondents) and risk management (57 percent of respondents) as additional areas in which they are actively gathering and analyzing information.
Health Records (EHR) are a top priority, yet organizations struggle with optimizing information.
Thirty-four percent of healthcare organizations surveyed note they are using EHRs extensively and are using the information captured to improve the delivery of care.
Forty-three percent say they have a system in place, but are not capturing enough or the right information, and 20 percent have started to implement an EHR but do not have it in place yet. Only three percent of healthcare organizations note that implementing an EHR is not a priority at this time.
Organizations are also looking outward, with 63 percent of healthcare executives saying their organization is in the process of implementing information systems that will support the delivery of care beyond the walls of the healthcare facility.
a path forward. Healthcare industry respondents note their organizations must improve information optimization.
Top priorities include improving the ability to translate information into actionable insight (63 percent), improved tools to collect more accurate information (50 percent) and more customized systems/applications to meet the needs of their industry (47 percent).
access the full report – which delves extensively into how prepared organizations within each industry are for the data deluge and the resources they need to enhance their ability to leverage incoming data – visit here.
“Healthcare organizations are capturing ever-increasing amounts of information. With the rise of accountable care organizations, a greater focus on personalized medicine and the roll out of healthcare reform, data volumes will continue to grow. This report demonstrates the challenges that healthcare organizations face in managing their rapidly growing information stores and their approach to addressing this issue, including deploying industry-specific and analytical applications that help them glean insight and put timely information in the hands of line-of-business personnel when and where they need it,” said Marc Perlman, global vice president, Oracle Healthcare.
Oracle engineers hardware and software to work together in the cloud and in your data center. For more information about Oracle (NASDAQ:ORCL), visit www.oracle.com.
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