2. Designing Your New Multi-Dimensional Profit and Costing Solution John Fitzmaurice Joep van Gorp CPM Product Strategy Medisch Centrum Haaglanden (MCH)

3. How new customers and customers of the legacy applications (Oracle Performance Analyzer and Oracle Activity-Based Management) are working through the critical solution design process how they are mapping their business requirements to the new multi-dimensional model, and learn about the benefits they expect to realize from their new Oracle Profitability Manager solution S281902 Designing Your New Multi-Dimensional Profit and Costing Solution

4. … tying this to the theme of Oracle OpenWorld 2006 … Better Information Better Results S281902 Designing Your New Multi-Dimensional Profit and Costing Solution

5. Program Agenda Overview the Profitability Manager prototypes Introduce Joep Van Gorp, MCH, Netherlands MCH present their Profitability Manager project Q&A – your chance to discuss the MCH project

6. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

7. Customer Case Studies/Prototypes

8. Customer Case Study / Prototypes Profitability Manager prototypes Strong in Financial Services Branching out beyond the FS base, into other industries Healthcare Healthcare providers, Hospital networks Communications Mobile/cellular telco’s

9. In Financial Services, around the world Large Retail Bank in Europe Fast growing bank, modeling the profitability of over 25m customer accounts from many countries Large Investment Manager in U.S. Building a prototype management-level profitability analysis solution Including complex shared-services costing models Determining activity rates and Billing products and services consumed by Business Unit Customer Case Study / Prototypes

10. Customers, beyond our traditional FS Health Care Provider in the U.S. Provide this full service health benefits company with detailed costing analysis of health plans Allow multi-dimensional modeling of products and services costs Customer Case Study / Prototypes

11. Large Cellular Phone Network in U.S. Aggressive growth in subscribers and services has driven the need for a new solution PFT will provide best practice profitability engine for revenue/costing modeling Multi dimensional costing analysis for the management ledger, and Calculate customer profitability for over 40m subscriber accounts Customer Case Study / Prototypes

12. Joep Van Gorp, MCH

13. Profitability Manager at MCH ….and a quick look at Planning & Budgeting…

14. Introduction

15. Some statistics A top-class regional focused teaching hospital in the west of the Netherlands A annual budget of 300 mn USD 153.000 new outpatient contacts a year 21.000 hospital submissions a year 19.000 one day treatments The Medical Center the Hague

16. Highlights Innovative and customer focused in all direct and supporting stages of patient care For example: a centre of excellence in the neurosurgery, but also in the area of Health Control Systems Best Practices: European healthcare solutions (Oracle), most innovative economics department, leader in treasury/cost-pricing/procurement The Medical Center the Hague

17. Project Manager Profitability Manager and Enterprise Planning & Budgeting Working for the Medical Centre the Hague Master degrees in Industrial Engineering and Business Economics Overall nice-guy j.gorp@mchaaglanden.nl Speakers background

18. Market developments and Business challenges

19. Product and budget related Less government intervention Product pricing Output financing Product & price negotiations between hospital en insurance companies Market developments (1)

20. Market related Competition between hospitals: work together if you must, compete where you can Introduction of new commercial party’s More stakeholders and more stakeholder influence Insurance companies Banks as a result of a higher risk profile Patient groups Shareholders participating in hospitals Market developments (2)

21. Building competitive power Collaboration (alliances,...) Commercial focus (brand name,...) Excellent provable medical quality Service oriented organization (quick response,...) Efficient internal organization Logistic principles, procurement (best-practice Oracle) Cost control systems (PFT/EPB,...) Business challenges (1)

22. Good governance Balancing quality, service and costs Innovative control systems to facilitate decision making in the cost and service arena: Cost-price calculation and cost analysis Output related budgeting (Activity Based Budgeting) Product pricing and negotiation policy Benchmarking Efficient and effective patient care Business challenges (2)

23. European healthcare is becoming a real business Overall …

24. Opportunities

25. Strengthen the leading competitive position in the regional Dutch hospital market In the fields of quality, service en costs Increase market share Develop innovative control systems to catch these opportunities Specific in the field of cost control

26. Strategic development partnership between MCH and Oracle Innovations focused on: Product cost-price calculation and analysis With Profitability Manager Internal cost benchmarking With Profitability Manager Output related budgeting and analysis With Enterprise Planning and Budgeting New innovative control systems in the healthcare market

27. Cost-prices: The MCH Cost Model

28. A quick look at the cost model PFT Value!

29. Functionality of the MCH cost model in Profitability Manager

30. 7 dimensions: Specialism Product / Product group Cost center Activity Cost type (personnel, equipment, material and overhead) General Ledger accounts Time Reliable and fast cost-price calculation: Clinical activities: 4.400 + Cost centers: 350 + Products: 20.000 + Functionality (1)

31. Understanding of the cost patterns: From first patient contact till general ledger account! Cost control: Insight in the product, the cost-price and the product profitability Internal benchmarking In this way we can make the organisation more efficient en service oriented…. ….and grab the opportunities! Functionality (2)

32. Screenshot Profitability Manager Health care product “Bill of Material” : insight in the product! Clinical activities Activity weights Cost-price Weighted costs split into different cost types

33. Enterprise Planning and Budgeting an overview

34. The MCH budget model: activity based budgeting PFT

35. 8 dimensions Market segment Specialism Product / product group Clinical activities Cost center (Department, Division and Concern level) Cost type (Personnel, Equipment, Materials and Overhead) General Ledger account Time Only two manual inputs, the others linked with the application Data quality inspector Functionality of the MCH budget model in Planning & Budgeting (1)

36. Integrated budget calculation Budget proposal Distributed over general ledger accounts Manual inputs Production forecast Personnel forecast Relationship between production, cost en revenue Internal controls Analyses and reporting capabilities Budget restrictions Budget proposal Production, cost, revenue and profit Functionality of the MCH budget model in Planning & Budgeting (2)

37. Corporate Profitability Management: Integrating the cost en budget model Production & HRM forecast -> doctors & mngt PFT: Cost prices and cost analyses EPB: Output budgeting & analyses PFT/EPB: Reporting & Analyses PFT: Cost prices and cost analyses PFT: Cost prices and cost analyses Enterprise Performance Foundation (integration data layer) Data WarehouseOracle ebusiness, HRM, other apps Information Portal

38. Management support Rigid scope Accurate functional and technical design Accurate interface definition and test data Accepting and anticipating Data errors often occur the products are relatively new Active participation of IT and staff personnel Project experience

39. Joep van Gorp Planning & Control Medical Centre Haaglanden Lijnbaan 32 2512 VA The Hague The Netherlands j.gorp@mchaaglanden.nl +31 (0) 70 330 3193 Contact information

40. A Q &

41. For More Information http://search.oracle.com or oracle.com www.oracle.com/applications/cpm