OI white paper

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Services and solutions delivery

Operational Intelligence

Operational Intelligence A new integrated operating model for the service of care White paper

Contents A message from Conrad Smits Global head of Philips Services and Solutions Delivery

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Towards the need for a more integrated operating model

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What is Operational Intelligence?

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Why Operational Intelligence works


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Operational Intelligence in action

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Get in touch

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Operational Intelligence A new integrated operating model for the service of care “It has been said that the measure of intelligence is the ability to change. At Philips Services and Solutions Delivery, you can’t distinguish our people from our customer’s people because we’re united in the process and passion of change. We’re transforming healthcare operations together through Operational Intelligence.” A message from Conrad Smits, Global head of Philips Services and Solutions Delivery 3

Introduction Even before the global pandemic, in healthcare the days of business as usual were over. Around the world, every health system had been struggling with rising costs, aging populations, chronic health challenges, legacy technology and overloaded staff. And, while addressing many challenges, the digital transformation also brought its own, from data and interoperability disconnects to knowledge shortages. Healthcare leaders have worked hard to redefine healthcare by moving to the value-based care model, implementing the six components of the high-value health care delivery system, often referred to as the “value agenda”. And yet, there is still a tendency to expect technology and AI to act as a panacea rather than an enabler and reports indicate that a fifth of healthcare spending gets wasted (with administrative complexity accounting for the most – up to $265.5 billion annually – in the US’s figures1) and could be eliminated without undermining performance2. In fact, we believe that adopting a more integrated, servicebased healthcare model with a focus on behavioral change that connects the silos and builds relationships could optimize spending and is the logical next step. After all, as Melissa Kenig, Philips Education Services reminds us, “at the end of the day, care is a human activity. Technology is not there to replace caregivers, it is there to support them.”

The value agenda The strategic agenda for moving to high-value health care delivery system has six components. They are interdependent and mutially reinforcing. Progress will be greatest if multiple components are advanced together. The value agenda, as developed by Michael Porter and Elizabeth Teisberg and detailed in their 2006 book, Redfining Healthcare.


Organize into integrated practice units (IPUs)



Expand exellent services across geography

Measure outcomes and costs for every patient


Integrate care delivery across seperate facilities


Move to bundled payments for care cycles

6 Build an enabling information technology platform Reports indicate that a fifth of healthcare spending gets wasted (with administrative complexity accounting for the most – up to $265.5 billion annually – in the US’s figures1) and could be eliminated without undermining performance


1 2019 JAMA study on Healthcare waste, Modern Healthcare, September 2019 2 Strategies to reduce wasteful spending: Turning the lens to hospitals and pharmaceuticals, in Health at a Glance: Europe 2018: State of Health in the EU cycle, OECD Publishing, Paris / European Union, Brussels.

Towards the need for a more integrated operating model Insight 1: The point of care has shifted towards the patient – healthcare as a service Lookng at other industries, we see that the companies causing disruption – or thriving amidst it – are the ones that successfully identified where the value for their end customer lies. In most cases, this means that they have honed their offering to a service – rather than a product. The Netflix versus Blockbuster example is a commonly known one, but the comparison still holds. And we know the same applies to healthcare. Only through collaboration, and by looking at all the available pieces in puzzle and the playing field itself, can we deliver the seamless, patient-centric pathways and unlock the improved results for care providers, patients and the healthcare system.

Insight 2: There is a need for a healthcare operating system that promotes partnership, integration and collaboration Within Philips alone, we already have solutions that enable population health management, ‘first-time-right’ diagnosis, minimally invasive treatment and extramural recovery. This alone can already generate technologically advanced patient pathways that greatly reduce costs, while improving experience for patient and caregiver, as well as improving clinical outcomes. It is equally remarkable that most of these solutions are already deployed in many Western European healthcare systems. They are however, deployed as pointsolutions and often not as part of a seamlessly connected care flow. Fundamentally, though this is what is lacking today: a climate, a healthcare system, which truly stimulates and promotes the integration of all the technological, process and human innovation we are seeing. To solve this, all healthcare actors need to come together and rethink the patient pathway. Only through collaboration, by looking at all the available puzzle pieces and at the playing field itself, can we deliver the seamless, patient-centric pathways and unlock the improved results for care providers, patients and the healthcare system. We believe that valuebased healthcare is an essential component of this. In this respect, our service-led operating model is as much as invitation as it is a vision. Philips is not the solution, but we are convinced that we can be a part of it.


Insight 3: The quadruple aim of healthcare For everything we do, the quadruple aim is the ultimate objective. When we say, ‘improving lives through meaningful innovation’, this is what we mean: any solution that at the same time reduces costs, improves outcomes, and improves patient experience and staff experience. “Care is too important to be managed based on economics alone, but in order to keep care affordable for as many people as possible, we need to look at it as a business. If a healthcare innovation does not deliver on one of these, it is not meaningful in the current climate.” The essence quadruple aim is people. When we deliver better outcomes and experience at lower cost, by digitizing what can be digitized and – this is the crucial part – we offer breathing space to care professionals to truly focus on what is important and what matters most. The world is changing rapidly, and it is hard to predict what will happen even five years into the future. For the near future however, it seems almost certain that people will continue to age, and at times, get sick. It is our collective responsibility to ensure that when this happens, we have the infrastructure in place to address this in the best possible way.


Insight 4: Healthcare information has been digitized but often its potential remains untapped A major challenge is interoperability. In an ideal world, when a patient meets with a specialist – face to face or virtually – he or she should have seamless, highly secure access to their personal health data. This consists of all data I have captured and chosen to share, data collected by my general practitioner and my history in any hospital or care center. Through AI, an initial differential diagnosis is then provided, based on my symptoms and history. We are not there yet. Very often digital records are often not compatible with one another – not just between hospitals or GPs, but sometimes within hospitals. In the interest of the patient, clear standards should be put in place. These can guarantee interoperability and security of data. That is not something any individual party can control, but this should be the result of a sector-wide agreement. At Philips, we make a very conscious effort to try to ensure that our solutions are designed in a way that ensures the as much compatibility and interoperability as possible.

Insight 5: Becoming a partner to maximize value: A different approach to working together by Philips Services & Solutions Delivery We have a very holistic outlook on health and more than one hundred years of experience in personal and professional healthcare. This puts us in a unique position in this industry. As healthcare is becoming increasing value-based, we want to become the partner to maximize that value. The partnership of continually synchronized people, processes and technology, Operational Intelligence turns the trend to think and prioritize technology first, on its head by combining three critical components to create and deliver a healthcare organization’s products and services to result in profitability and growth. What began as an idea about how a hospital system and a technology provider could better work together has become a powerful new way of working for hundreds of Philips and healthcare professionals, and is one of the clearest ways that we can signal the benefits of partnering with us to add value.


What is Operational Intelligence?

It is said that the measure of intelligence is the ability to change Operational Intelligence is the partnership of continually synchronized people, processes and technology. This operating model turns the current trend to think and prioritize technology first, on its head by combining three critical components to create and deliver a healthcare organization’s products and services to result in profitability and growth. What began as an idea about how a hospital system and a technology provider could better work together has become a powerful new way of working for hundreds of Philips and healthcare professionals.

How Operational Intelligence works:

People, Process + Technology Rather than operating as a sales organization, when Philips Services & Solutions Delivery partners with a healthcare provider, we bring our Operational Intelligence approach to merge skills and capabilities. This approach to working together offers cumulative gains, unlocking hard value but also the softer, more people-powered value that is harder to achieve and quantify but delivers such significant benefits.



Operational Intelligence



How Operational Intelligence works: People, Process + Technology People: Working as one: Philips peoples’ skills merge with yours for continual, cumulative improvement. Recruitment to staff and run the partnership must be a shared Philips and healthcare provider endeavour, where the prioritization is on identifying the behaviours and capabilities required on a contract-by-contract basis, but with passion as an absolute requirement. Individuals are recruited internally from Philips to ensure that they have an understanding of the company’s best practices and processes but also a full understanding of the portfolio and network of contacts in order to access everything the customer may need. In action example: Co-creation of teams. All Operational Intelligence partnerships have dedicated full time teams based on the learning that the traditional base minimum doesn’t work. Partnerships have to be resourced to win by investing ahead to build the space in the system to make a consistent, long-lasting impression on the customer. Bradley Lan Kam, Client Delivery Manager, APAC: “Every individual recruited to service the customer will be different with different core strengths. They come from different backgrounds across Philips but we find the right people by recruiting jointly and prioritising passion.

Process: Operational Intelligence doesn’t subscribe to process for process sake; instead, it unlocks intelligent, tailored processes. The opposite to the common one size fits all, Operational Intelligence demands that processes are finetuned and cocreated together. Philips will work with the healthcare provider to operate a flexible and innovative business model and a joint pursuit of innovation and excellence over the long term. We help devise and optimize processes specifically for the customer’s needs together with our Philips Business System e.g. CoCreate, LEAN, Agile. In action example: Co-process development and adaption. By having the right caliber of resources, process refinement is possible. Process adaption examples can include processes to manage the contract within Q&R requirements, processes for vendor neutral selection, governance cadence, business management and escalation, business case creation, together with the creation of a dedicated KPI engine. Andre Smith, Philips Customer Delivery Manager Asia explains: “The creation of a robust Information Barrier was vital to a vendor agnostic model. To keep all data sacred and ensure a hole-free audit trail, the Philips NSW team traced every transaction from end to end with the avoidance of SAP to ensure no divulgence of sensitive information and checks at every stage gate to prevent any unauthorised eyes. All transactions were strictly controlled with the flow of every transaction scrutinized at every stage gate to ensure no unauthorized access to information.”

Technology: Technology is an enabler; Operational Intelligence makes it both connected and interoperable by breaking down silos to provide a comprehensive, ongoing overview of how technology is required and be utilized (by humans and systems) now and in the future. With Operational Intelligence, we believe that the right competencies in resources allows process refinement which in turn creates a demand to enable the behavioral requirements of appropriate technology. In action example: Lateral technology approach. From planning to optimization, maintenance, upgrading and enabling technologies, Operational Intelligence combines digitization with services, support and training, to enable operations transformation efficiently, effectively and empathetically. Real time digital solution creation. In addition to providing access to all the emerging technology and interoperability solutions Philips has available, Operational Intelligence is rooted in necessity as the mother of invention. Philips teams and their partners can leverage the might of Philips while also being able to develop bespoke solutions and act locally. This makes possible the retention and continuous development of the teams but also has technical and regulatory benefits such as keeping data on shore.


Scott Andrew Bradley, Head of Solutions ANZ explains: “Our local team created ‘Big Brother’, a real time performance metric sampling and asset management tool, created bespoke for our client’s needs, that could tap into data and deliver real time sampling of leading indicators in the data that affected performance KPI’s or business metrics. This tailored solution enabled our customer to monitor and visualize all real-time activity related to their technology and generate pro-active reporting ahead of time. By flagging deviation from norms in real-time of the event happening this enables immediate action to be taken to ensure appropriate (pro-active) resolution.”

Why Operational Intelligence works

Operational Intelligence fast tracks lasting structural and behavioral change across healthcare operations. The challenges of healthcare cannot be solved alone and yet true collaboration can be hard to achieve, with goals, approaches and working styles often misaligned. It’s time to operate differently. We believe that being able to fully exploit the digital capabilities that technology can offer healthcare operations optimization, is not solely about selecting the best technology.

True transformation, and the creation of long term value through operations excellence requires an operating model that combines (digital) technologies, people and process improvement capabilities in an integrated sequenced way. By taking an operationally intelligent approach, we work as one to solve and achieve more.


Operational Intelligence in action Healthcare systems that effectively sync their people, process and technology are leading the transformation race and delivering on their quadruple aim goals. Read how we’re partnering to put Operational Intelligence in action all around the world.

Adopting an Operational Intelligence approach to create a new model for optimized ultrasound usage in Munich, Germany In the case of München Klinik, Ultrasound Demand Analysis, led by Philips Managed Technology Services consultant, Aline Mittag, in partnership with the customer, mapped 24 devices with a savings potential of €851,000, with costs savings from Day 1.

“It’s never ‘us’ and ‘them’ anymore. We’re one team with a shared, focused goal.” Aline Mittag, Philips Managed Technology Services consultant


One of many passionate Philips people working on longterm Philips Managed Technology Services partnerships in Philips, merging her skills with staff at customer hospitals for continual, cumulative improvement, Aline explained, “We help hospitals see that it is better to have the right devices for their unique needs. They like this approach – and so do we - because you can build trust on a different level.

“With this kind of a strong partnership, anything is possible.” Anna Sesilia Vlachomitrou, Philips Research Scientist

Enabling the development of a new CT AI-based lung segmentation application for COVID-19 patient assessment in Lyon, France Anna Sesilia Vlachomitrou is a Philips Research Scientist based in France and part of the Clinical Research Board. From the start, she has been a valued member of the Hospices Civils Lyon/Philips, Gestion Optimisee du Parc d’Imagerie (GOPI) partnership team. HCL CT clinical leaders wanted to rework the algorithm’s segmentation process to identify, classify, and include the unhealthy part of the lungs, because for COVID patients that area can be large and consequential. The clinicians wanted to do this segmentation and classification using AI-based technology, which meant they needed to collect and analyze a large quantity of data. Anna explains, “By June we had managed to integrate this new solution into a commercial product. It is available now for IntelliSpace Portal release 10.0 and will be available as a standalone application called ‘CT Pulmo Auto Results’ by the end of 2020. The typical timeline for development of a new application is a minimum of 6 months from research initiation to product integration. So we completed this in record time. This couldn’t have been achieved without the very close partnership with Hospices Civils de Lyon.” As of early September 2020, hospitals in Spain, Germany, Italy and Holland are using the new product. Research scientists are able to take the data, employ the tools in the IntelliSpace Discovery platform, and train the COPD algorithm to properly segment the previously overlooked areas of lung condensation, when presented with that data. This effort is an example of the successful integration of two complimentary entities, Philips and HCL. As Anna highlights, “With this kind of a strong partnership, anything is possible.”


Mastering complexity through connection in Munich, Germany. Stephan Bockers oversees one of the largest healthcare technology partnerships in Europe; that between Philips and München Klinik. München Klinik sits at the center of a city with changing healthcare needs. As a municipal clinic it deals with a range of clinical challenges: ageing physical infrastructure, high personnel costs and technologies and processes that are out of date. Germany is among the top five spenders on health care, both as a proportion of GDP (11.2%) and per person (USD 5,986), according to the OECD. The partnership between Philips and München Klinik focuses on a “needs-based” model of care, designed to address rising costs and reshape the clinic for its future health needs. The relationship between the two organizations stretches back many years, so when München Klinik approached Philips to discuss the concept of bigger solutions, there was already a shared understanding.


“Behind all of the changes: the egotiations, theteamwork, the planning, the restructuring, is a mindset of Operational intelligence, connecting people, processes and technology and ensuring the partnership stays on track.” Stephan Bockers, Philips Managed Technolgoy Services consultant.

At one location, Stephan is project managing the building of a hybrid angio environment, which involves redesigning workflows to support patients and staff. On another, they are rebuilding the radiology department, a process which takes a year to complete. An installation of the Intellispace Portal 11 platform has streamlined radiology processes across the health system, allowing faster diagnoses.


Creating a Customer First Dashboard The Philips Customer First Dashboard was designed and developed collaboratively to represent the journey of the customer though key Philips touchpoints. Metrics show how we perform in the eyes of the customers along that journey which gives an end to end view on a customer experience with Philips so that the two can finetune and optimize together for the very best partnership.

Philips Technology Maximizer Philips Technology Maximizer is a program developed together with customer to empower their tailored RightFit customer service agreements. It helps to drive enhanced patient care with imaging equipment that is always up to date, ensures that clinicians always have the best technology experience while delivering care and protects against obsolescence.

The Customer First Dashboard tracks and reports on a range of important metrics, including NPS, conversion, quality, pricing, and delivery across end-to-end customer experience touchpoints. This plays an important role in maintaining a “customer first� perspective.

Technology Maximizer proactively maintains the software and hardware release levels for Philips imaging equipment, so that when a customer opts into the program, they receive the latest available software and hardware technology releases for a fraction of the cost of purchasing them individually, through their operating budget. No need to wait for capital expense approval. No hassle. Just a cost-effective way to reduce maintenance complexity, and simplify lifecycle management across departments.

Operational Intelligence results • The Services team across the globe makes 2.5 million visits to customer sites each year, accounting for more than 5 million hours of customer contact.

• All markets now have Customer Pulse in place to drive ‘customer experience by design’, driving NPS improvements through better customer engagements in all customer touchpoints.

• There are now 2000+ active users in 33 countries on ServiceMax via a quadruple transformation: MP1-SPS BP- ServiceMax and GBS, in record time.

• In North America, Services has spent 2-3 years upskilling its field service engineers to ensure they’re all now CISCO certified and have shifted from traditional break fix thinking to IT and networks

• The North American Services team won 9 out of 30 IMF Service Track awards at RS&A 2018 and 10 IMV ServiceTrak customer awards

• Trainings on LEAN leadership, implemented Daily Management and PRIDE problem-solving with our services teams around the globe and it starts to show.

• More than 750,000 registered Learning Centre users, delivering more than 35,000 courses each month.

• Investment in education services is starting to show results. IGT customers rated the Philips Services delivery experience 65.2% better than the competition. MD Buyline rated Philips Best in Class!

• Philips acquired and are integrating Agito as part of its strategy to grow the MVS business.

• Commercial productivity programs with the markets delivering ˜ €56M in productivity against ˜ €47M target. • Technology Maximizer passed the release for acquisition milestone in 13 markets.

• Philips operates Spare Parts warehouses across six cities, four countries and four time zones transitioned successfully to UPS managed locations to better serve customers.

• First 22 Client Delivery Managers trained to lead Solution Delivery


Interested to learn more? Let’s talk. Even better, let’s collaborate. We’d love to help you translate Operational Intelligence for your healthcare operations. Philips Services & Solutions Delivery is your partner for enterprise-wide operational excellence is our ultimate goal, enabled by Operational Intelligence.

Cybersecurity Services: Cybersecurity in the age of connected health is vital. Philips Cybersecurity Services provide superior care to the security of the data and devices in your hospital; from enterprise cybersecurity and hardware and software upgrades, to staff training, incident response management and security by design.

Education and Training Services: Philips Healthcare Education and Training Services help unlock the full potential of your staff, technology, and organization through innovative, meaningful, and evidence-based healthcare education.

Maintenance Services: Philips Maintenance Services helps you drive performance, usability and interoperability by keeping your technology sustainable and reliable.

Managed Technology Services: Philips Managed Technology Services is a comprehensive, outcome based service and solutions programme designed to help you in managing and optimizing your healthcare technology.

Healthcare Transformation Services: Philips Healthcare Transformation Services help you achieve clinical excellence and operational efficiency while improving financial performance and delivering quality patient care


Š 2020 Koninklijke Philips N.V. All rights reserved. Specifications are subject to change without notice. Trademarks are the property of Koninklijke Philips N.V. or their respective owners.

How to reach us Please visit www.philips.com healthcare@philips.com

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