Running Head: RAPID ADVANCEMENT OF INFORMATION SYSTEM
Rapid Advancement of Information System
Table of Contents
1.0. Executive Summary 3
2.0. Trend Identification: The Rapid Advancement of the Information System 3
2.1. From EDP to MIS 6
2.2. From MIS to E-commerce 8
3.0. Industry Identification: The Health Industry 9
4.0. Analysis of trend and Industry 11
5.0. Potential winners 13
6.0. Conclusion 14
7.0. Tables and Charts 14
8.0. References 19
Rapid Advancement of Information System
1.0. Executive Summary
The advancement of Information Systems in the Health industry has greatly changed since the 1960’s to date, it is estimated that to be $53.8 billion by 2014 growing at a CAGR of 16.1%. the market for applications considered general will grow at an overall CADGR 13% FROM 2009 – 2014. In addition to the governmental regulations there has been an increased investment for patient monitoring and the health care technologies. Such advancements have improved the access to medical care, high-end treatment a cost effective diagnosis for patients. It is expected that the will be an improved technology system for improved services (marketsandmarktes, 2009). By then, main frames were the commonly used computers in the communication, and then came the minicomputers in the 1970’s. With the introduction of the Internet in the 1990’s, Information Systems became more advanced since communication was eased. This lead to the use of small local Area Networks for communication.
From the year 2000, the trend became more advanced due to the introduction of patient monitoring systems which included voice recognizing systems, barcoding and Personal Digital Assistants (PDA’s). This was due the increased number of uninsured patients who needed immediate attention (Mightystudents, 2010). The rapid advancement use of the information system is transforming many institutions, a number of users apply the World Wide Web (Thefreelibrary, 2008). This advancement was due to the need of more efficient and faster systems in the health industry so as to be able to attend to all patients and the need for data to make statistics on health records of a certain geographical area.
2.0. Trend Identification: The Rapid Advancement of the Information System
An information system in any organization or company is used to assist in accomplishing particular procedures. The maker of a software program depends on the requirement of the system, to satisfy the needs of the clients (Mylonopoulos and Theoharakis, 2001). Nowadays, many companies have adopted this trend of using information systems for their operations, in which the server-client mode of communication is the commonly used, this is a form of communication whereby the personal computers or PCs acquire information from a central point, which is the server, for its use.
As technology continues to advance, managers are reconsidering their use of the old and weak systems and going for the more useful systems. Organizations are developing systems that will suit their needs; materials requirements planning (MRP) systems which are meant to create an efficient manufacturing process and help with the schedules related with production and materials lead time (Sen Bagchi S., Lee JinKyu and others, 2005). Also there are the activity-based costing (ABC) systems that note the activities that cause cost expenditure. Enterprise resource planning (ERP) which is able to produce statements relating financial matters and correlate with ledgers.
2.1. From EDP to MIS
In the 1960s and fore, the work performed by the information systems was far simpler. They involved mainly of applications in electronic data processing (EDP), for reasons like transactions processing, keeping of records and accounting. EDP involves the application of computers in recording, classifying, manipulating and summarizing data. It is otherwise known as transaction processing systems, automatic data processing or information processing, it processes data that arises from business operations, updating databases and the production of business documents. Some examples are sales and inventory processing and accounting systems.
Still in the 1960s, there was an additional purpose added to the computers: this is the processing of data into more important informative reports. Ultimately, the management information system (MIS) was introduced (Datamonitor, 2011). It mainly dealt in the development of business applications which enabled managers or users with managerial skills on management reports hence issuing them the information needed for the possible to make decision (Springer, 2011). Management information systems enable information as reports and displays to uphold business decision, like sales analysis, production performance and cost trend reporting systems.
In the 1970s, the management reports created were not that effective or sufficient to handle the process desired of decision making. This led to the aspect of decision support systems; this enables interactive ad hoc upholding for decision process by the managers including other professionals in the business arena. Like product pricing, profitability forecasting and the analyzing of risks systems.
In the 1980s, the coming into being of microcomputers into the workplace welcomed a new development that had massive effects on organizations. There was an increased development of microcomputer processing power (like, Intel’s Pentium microprocessor), application software packages (e.g. Microsoft Office), and telecommunication networks gave a leeway to an extreme computing process for the end users. The clients or otherwise would now apply computing resources to uphold the needs of their work places as opposed to waiting for the corporate information services section of a business.
As time went by, most top executives did not apply the use of the management information systems reports or the modeling capabilities of the decision support systems, this led to the development of executive information systems (EIS) (Merzuki Siti E. and Hamrila A. L., 2009). Executive information system enables the provision of important information system from MIS, DSS among other areas connected to the information requirements of executives. Like systems for easy access to analyzing of the performance of an organization, the trends of the competitors and the economic advancement to uphold strategic planning.
Additionally, successes resulted in the advancement and application of artificial intelligence (AI) measures to business information systems (Csun, 2011). There is now less need to involve human, the knowledge of workers is now left to cope with more advanced and harder work areas. The expert management systems and knowledge management systems (KMS) brought into being new meaning for information systems. Expert support systems uphold as consultants to users by the provision of experienced advice in lesser subjective regions (Chow, 2011). These are like credit application advisor, process monitor and diagnostics maintenance systems.
In the mid- to late 1990s envisioned the creation of an enterprise resource planning (ERP) systems. This form of system joins all the relevant areas of a firm or an organisation in addition to planning, manufacturing, sales resource management, customer relations , order tracking, the management of finances, human resources and marketing basically all the functions of a business. The advantage of these ERP systems is the common connection applied in the entire organisation with specific purposes using computers for their transaction in addition to their sharing of information or data for important decisions to be made.
2.2. From MIS to E-commerce
The extensive growing of the internet, intranets in addition to interconnected networks in 1990s did have an intensive and more adverse in the business sector. The internet and the web applications are now part of the operations in business organizations (Oppapers, 2011). The future information systems need to do a lot better like processing transactions, keeping records, provision of management with necessary reports and provision of accounting systems and processes of the enterprise. Ever since things have developed much more systems are much integrated more connectivity in same and different systems. These systems have the ability to storing data, processing and creating a presentation to efficiently utilize the organizations opportunities.
3.0. Industry Identification: The Health Industry
The health care industry is an industry which handles professional services related to treating the sick, injured, disabled or infirm. The health care information systems is headed for a drastic growth. Research estimates that the market involved in the health care information systems to be $307 million and growing steadily at a rate of 20%. The end result will be beneficial to the client as they will be in apposition to get more technology for dollar (Agosta Lou, 2009). With the latest developments in the health industry there has been an advancement made in the procedures and ways of diagnosing and treating the diseases. There has been development in the medical technology leading to the improved survival rate of trauma. There has been an improvement in the patient care with relation made to the records, test are issued electronically to the relevant department fast (The Economist, 2011). Due to information technology, the rate of employment is projected to grow due to a number of factors that lie in the information technology sector, for instance people with IT skills will be able to acquire positions in companies..
The variation is majorly on size, staff patterns and the pattern of the organisation. The table below relates the establishment of the health hospital alongside the employment in relation to varied services offered in the year 2008 as shown in table 2.
Many industries are applying the use of the internet among other related technologies. This has influenced how operations are done and how the medical staffs’ work, this has enhanced their competitive advantage, e-business applications are the resulting applications. There is the use of the internet in the hospitals (intranet) and its other partners (extranet) (Khosrowpour , 1995). E-business helps to;
a. Reengineer the hospital’s procedures
b. Implement the hospital’s electronic systems with clients and suppliers of medical equipments
c. Promotion of the hospitals collaboration with partners.
The various levels of management decision making are;
a. Strategic management who involve the CEOs and top executives who do a monitoring of the hospitals performance and issue directives where necessary.
b. Tactical management that is involved department managers who issue resources and monitor performance.
c. Operation management is involved in the operation processes and does the basic work for the hospital.
Health care industry is one among the many industries that applies the use of bar codes for efficiency. They are used in this industry to manage and maintain the client’s records, track medical supplies, check the status of medical equipment in addition to managing data quickly and in a more efficient manner. Taking an in-depth look at the start of the use of the bar codes, there have been studies one that proves the reduced number of errors in the medical field.
The health information system is uses similar systems as described above for the carrying out of the organization’s operations. In the health sector uses different names; administrative information systems, financial management and the clinical information system (Taylor & Fransic, 2009). The health care information system is divided into several groups which are; administrative information system which involves mainly administrative; the administrative applications are the patient administrative systems; scheduling, utilization management, admission and transfer or financial information; it is involved with accounts payable, ledgers, payroll, staff scheduling and the management of materials, it is helpful in enabling the operations of the industry and the management of its duties.
The clinical information system is a system which contains data connected to health matters which is necessary in the provision of diagnosis, treating and the monitoring of the client, it involves laboratory, radiology, pharmacy among others like the Electronic Medical Record (EMR), Medical administration and nursing documentation.
4.0. Analysis of trend and Industry
The health information system has experienced a dramatic change in the past few years all related to the information system. According to an article from the Economist that an improved information system will force a quick recovery for an industry, as industries highly rely on the systems to undertake their tasks (Khosrowpour, 2005). This information systems are are influenced by the health care environment and the state of information technology in place at that time.
In the 1960s, the health care environment involved the building mode, the reimbursement based on the cost, enacting of Medicare & Medicaid and the focus that is based on the financial needs and revenues (Bls, 2010-2011), in the state of information technology there involved; computer mainframes, centralized processing and some products developed by vendors. In the 1960s there were application of the administrative and financial systems which were mainly applicable in large hospitals and huge medical centers (Chow David, 2011). They were developed and kept or maintained in-house. The shared systems were mostly available in the smaller hospitals; the processing of data was mainly or solely applied to the mainframes computers.
In the 1970s, the clinical department made a major advancement in the information systems by the introduction of the minicomputer. The health care environment was composed of time of hospital up growth and expansion, Medicare and Medicaid expenditures going up. The hence arose a need to take a drastic measure to contain the costs. At that time the main frames were still in use, but with upcoming of the minicomputers there was made available a smaller and far more affordable form of information technology which did ease the burden that was initially there.
In the 1970s, the health care information systems; which involved the Turnkey systems were made available using the vendor aspect. There was an increased interest in the clinical applications with a major change noticed in the ancillary departments. The shared systems were however not done away with, they were still in use.
In 1980s, was noted as the “Computers for the Masses”. The health care environment that prevailed to cause the up growths of this system are; there was an introduction of payment system for the hospitals by the Medicare. The Medicaid among other private insurers made their introductions consequently in accordance with the Medicare’s way. There was also the need to have a financial and clinical information system. The prevailing information technology is the unveiling of the microcomputer also known as Personal Computer (PC). With the local area network there also came a need for its application or use. There was hence a distributed data process dye to the systems in place.
The information ended up expanding to a wider area in the hospitals. There was also an introduction of a billing system where patients will be required to make payment in (Bice S, Brown S, 2008). The use of these systems meant that there are affordable, powerful computers which are easy to access by the entire organisation as well as the smaller organizations. There was the ability to join the financial and clinical information hence its increase relevance in the health care sector.
In the 1990s marked the most tremendous advancement of the Health Care Reform, this is the introduction of the internet. The relative environment that led to this introduction is; the changes that were made in the Medicare by the reimbursement of the physician (Innovaro, 2010). There were several reform measures that were in place and were geared by the government. There was also the growth of the efficient care services and the delivery systems. There was an adoption of the use of records which were stored and manipulated on the computer; the calls were made by the IOM.
The state of technology led to the use of the internet, the hardware dropped and revolutionized organizations’ management. The information systems have made good use of the internet, there is an outburst of the vendors, the quantity of products increased, and there was an increased interest in clinical use and an increased use of the CPR/EMR systems.
In the year 2000 and future expectations, there is the advent arrival of the IT where the clients/ patients are of concern. The environment due to this is the IOM reports on the safety of patients and errors related to medical, the need for a new administration, availability of money for the Health Information Technology, the varying costs on health and the huge numbers of uninsured clients. The state of technology brought in to being involved; the use of the internet is advanced, the use voice recognition, barcoding and RFID to track the medical products, the use of web 2.0 technologies, the use of PDAs and other devices and the use of PHRs and records based on the web. The future is promising a lot especially with national health Electronic Health Record (EHR), the infusion of the Health Information Technology (HIT), an introduction of the office of the National Coordinator for HIT, and the regional health information organizations.
5.0. Potential winners
The potential beneficiaries or winners are health care information technology providers inclusive of the digitized patient records. This form of advancement will increase in speed as more patients access the health care system. Pharmaceutical and biotechnical companies are in a good position to do well as there are to be more patients to be served, Medicare program avoids the price cuts this benefits the earnings over a long period (Liang Ting-Peng, 2003). Pharmacy managers benefit more so after evading the array of fees and taxing that is imposed on industries. Such companies are set to administer prescription programs and are necessary to any measure focused to keeping the cost of drugs low. Hospitals are set to benefit as they avoid a reimbursement cuts (idabc, 2011). Citizens are also set to benefit as there will be an increased protection of the Public Health. The sector itself benefits as there will be databases that utilize the instructions of the development of the system.
6.0. Conclusion
The following consecutive years promises to be an explosive period as, according health policy experts say ‘the decade of information technology#. There is already a comparison base the Market Share Technology as shown in the pie chart 1; comparison of how the future will be attributed with the introduction of some of the latest technologies. Daily there is an occurrence of an advanced department taking considerations on electronic patient record, processes of care, clinical decision instruments and the integration of information. IM&ICT do possess the ability to advance the application of EM. Its importance cannot be further emphasized; it is relevant for the application and advancement of the IM&ICTin the health care system (Virtual, 2011). The physicians are also required to be able to be in a position of fast tracking this trend of an advanced system of a health information system technology. It is a reality that is advancing at a faster trend and should be put to best use as possible for the acquisition of its maximum benefit.
7.0. Tables and Charts
Table 1. Employment in healthcare by industry segment, 2008 and projected change, 2008-18
(Employment in thousands)
Industry segment 2008
Employment 2008-18
Percent change
Healthcare, total 14,336.0 22.5
Hospitals, public and private 5,667.2 10.1
Nursing and residential care facilities 3,008.0 21.2
Offices of physicians 2,265.7 34.1
Home healthcare services 958.0 46.1
Offices of dentists 818.8 28.5
Offices of other health practitioners 628.8 41.3
Outpatient care centers 532.5 38.6
Other ambulatory healthcare services 238.5 6.8
Medical and diagnostic laboratories 218.5 39.8
SOURCE: BLS National Employment Matrix, 2008-18
Table 2. Percent distribution of employment and establishments in health services by detailed industry sector, 2008
Industry segment Employment Establishments
Total 100.0 100.0
Ambulatory healthcare services 42.6 87.3
Offices of physicians 17.0 36.0
Home healthcare services 7.2 3.7
Offices of dentists 6.2 20.4
Offices of other health practitioners 4.7 19.6
Outpatient care centers 4.0 3.6
Other ambulatory healthcare services 1.8 1.4
Medical and diagnostic laboratories 1.6 2.4
Hospitals 34.6 1.3
General medical and surgical hospitals 32.5 1.0
Other specialty hospitals 1.4 0.2
Psychiatric and substance abuse hospitals 0.7 0.1
Nursing and residential care facilities 22.8 11.4
Nursing care facilities 12.2 2.8
Community care facilities for the elderly 5.2 3.5
Residential mental health facilities 4.1 4.0
Other residential care facilities 1.3 1.1
SOURCE: BLS Quarterly Census of Employment and Wages, 2008.
Table 3
Chart 1: Comparative Market Share by Technology
Source: [http://www.ict.tuwien.ac.at/skripten/Penzhorn] article by Dr. W. Z. Penzhorn
Chart 2: Enterprise structure
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