Utilizing AI to Automate Enterprise Resource Planning (ERP)
Winning Formula to Simultaneously Modernize & Optimize Healthcare Systems & Processes
Enterprise resource planning (ERP) is designed to consolidate, manage and streamline an organization’s functions, processes, and workflows into a single system to enhance productivity and run the business efficiently, and effectively. ERP's goal is to provide valuable insights, real-time data and reporting capabilities while improving cost savings, data accuracy, security, and compliance. With automation and integration - ERP manages data and planning resources from finance, manufacturing, production, inventory management, procurement, product management, sales, marketing, and much more. In healthcare - it can also include systems for care and population health management, electronic medical records, claims and membership data, clinical informatics, just to name a few.
From a technological standpoint ERP has progressed from traditional software models that made use of physical client servers and manual entry systems to cloud-based software with remote, web-based access.
Yet, there are still two main stumbling blocks to the ERP application evolution:
1. The company does not do a thorough current system & processes needs assessment prior to new ERP implementation.
There will be a misalignment or omission of executive stakeholders’ business needs and the organization’s priorities.
It leads to a costly, time-consuming risk of ending up with incompatible technology.
2. The organization is unwilling to update or replace legacy systems and/or processes that have served them well in the past.
The resistance to change results in a patchwork network of legacy systems and disconnected processes, which adds to the administrative burden and frustration for clinicians, IT, and non-technical staff.
There will be a significant decrease in productivity and employee morale.
How to Avoid an ERP Disaster
From a ROI and cost savings perspective, here are some best practices on how to avoid an ERP nightmare.
Take a comprehensive look at the current system and workflows
Consult everyday users, departmental heads, and executive team
Identify bottleneck issues, gaps in functionality, and process improvement areas
Design a system based on executive priorities and strategic organizational goals
Implement a change management program to ensure a smooth transition
Create easy to understand training for all uses
Moving forward, re-evaluate how ERP systems and processes are utilized after the implementation and as the business continues to evolve to track ROI
When Innovation Opportunity Knocks
Although it sounds like a daunting task and a massive undertaking for the healthcare IT department, there is a way to bridge the gaps in stand-alone ERP systems. Automation and integration can be used to fill in the gaps to eliminate inefficiencies and improve productivity. By adding artificial intelligence (AI) to the equation, healthcare IT organizations can modernize and optimize systems and workflow simultaneously.
According to Statista -approximately fifth of healthcare organizations have already adopted AI models and another quarter of hospitals and health systems are in pilot stages with AI/Machine Learning projects. AI is expected to grow exponentially globally to reach $45.2 billion by 2026. Currently, 45% of AI projects are for healthcare data integration, Natural Language Processing (NLP) at 36%, and business intelligence reports and dashboards at 33%. Other areas gaining traction and experiencing successful growth are remote patient monitoring, early diagnosis applications, robotics, health equity initiatives, and AI-powered tools like Med-PaLM2, ChatGPT, and chatbots.
Even though it is early in the Healthcare AI adoption movement, the current amount of AI implementation has reduced 20% of physician’s time in administrative tasks. With endless possibilities to reduce costs, increase productivity, alleviate administrative burden, and improve health equity, ERP and AI are solving the Quintuple Aim quandary that has perplexed healthcare executives for years. The winning formula for ERP success combines all-inclusive plans, processes, and systems together with full data integration and automation with AI.
