Question

In: Operations Management

The current problem with healthcare and other government-driven applications has many facets. It has been reported...

The current problem with healthcare and other government-driven applications has many facets. It has been reported that several states' healthcare systems and basic labor software were written in the 1970s or earlier and written in COBOL and in Basic. Two languages that work just fine except they are old and the programmers that know how to write patches and updates and are old. The programs work though needing upgrades and patches to bring them up to current specifications and need to service far more transactions per second than they were designed.

The cost for upgrades and patches plus changing the capabilities of the code to match current demands is expensive. The cost of rewriting everything in a modern code Java, JavaScript and or Python is extremely costly.

What should be done? How could you solve this using The Pros and Cons, SWOT analysis, or even Cost-Benefit Analysis?

Solutions

Expert Solution

It can be universally agreed that no organization/application has a perfect approach to sustainability and service. However, healthcare systems and other government-driven applications have failed to upgrade their practices with the changing times. Arguments have been made for either case, however, in this report, we will be highlighting the significant pros of adopting updated systems for software in such institutions and also finding ways to mitigate the cons.

The following contains a summary of all the pros associated with upgrading software to newer system languages:

  1. Automation: one of the biggest advantages that can be outlined with upgrading software to newer program languages is the ability to reduce resources spent on manual labor. Java and Python have paved the way for enabling automation of manual tasks, ranging from bookkeeping, maintaining records, tracking attendance to warehouse management, updating records of patients, etc. All of these functions aim to reduce human error and focus more on the ease of executing tasks by certain command inputs.
  2. Security: the other primary advantage of upgrading the software functions is to be able to implement newer and better security practices in the systems. All services industry (including hospitals) have scored of data stored with them arising from customers, clients, employees, vendors, etc. It's the duty of every organization to be able to protect the data they receive. Older languages like COBOL and BASIC do not support the latest security features in the systems. Also, the feature of receiving regular security patches as updates on the new software is paramount for safety and better restriction on all data.
  3. Speed: with an upgrade in software comes the natural enhancement of the speed of operations being performed by the systems, and by speed - it's not targetted to measure the completion of just one task. Most systems, based on Java and Python, have powerful capabilities of executing multiple tasks at the some time. This enhances most of the operational work needed to be able to provide a better service to the customers.
  4. Database Management: having established the importance of securing data, it's also important to build efficient tools to store, manage and access the data. Newer software makes use of cloud-based database management which involves lesser physical storage investments, more user friendly as it can be accessed remotely making use of wireless technology.
  5. Increased Productivity: with increase in speed, smart use of technology and user-friendly interface, upgraded software experience can increase productivity in the institutions by focusing on providing the staff with the required tools to perform better, faster and more efficiently.
  6. Customer services: providing customers with a more streamlined and engaging experience allows for any institution to enhance their services being provided to the customers. With engaging resources to customized program delivery, customers can enjoy an array of benefits thereby inducing more trust and faith in the services of the institution.
  7. Effective branding: indulging in all of the above pointers allows for companies to build a loyal base of customers who are keener on using the services provided as they view the organization to be evolving with time keeping in mind the implementation of updated practices for a better environment. Being marked as a technologically advanced business can improve customer rankings.

However, it's not all positive with upgrading software. There are a few trade-offs involved in the process:

  1. Increased capital cost: one of the most significant impacts such overhauling of the systems and upgrading to newer software can cause is the increase in cost to invest in better software, enhanced hardware to match the software and hiring professionals to execute such processes. All these services tend to add significant amount to the capital cost already invested for the business.
  2. Investment of time: at times when the entire system is being changed, there might be obstruction of daily routines at the said organization processes which might lead to temporary termination of work resulting in lost time to continue running the operations. Also, the time involved in the migration of data from the old systems to the new could be significant.
  3. Induction process: there would be a need to host training and induction for the staff again to take them through the new processes and software interface in order to make the most of the features of the new systems.

While upgrading can appear to be expensive and time-consuming, it helps in avoiding the long term disruption due to unstable systems and outdated software which can account for a considerable amount more than the short term expense. Taking hospital management as an example here, the major cost benefits of such software can be found in streamlining the processes. From overall reduction in manual labor costs to effective tracking of patients' health reports, digitization for supporting the latest developments in the industry (like paper free insurance) to the standardization of doctor's prescriptions, all of these services can be improved with such investments allowing for more time on patient care. This also allows the hospitals to be able to set a working price on their services where the patients are able to understand the value associated with it.

Thus, the major aspect of covering costs should be adjusted with capital cost over a long term investment plan allowing the businesses to grow exponentially with the support of modern technology!


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