Question

A large healthcare enterprise in the mid-Atlantic region that was created by a merger owns two acute care hospitals, a rehabilitation center, an outpatient surgical center, and three long-term care facilities. Each of these institutions uses a different EHR system. Admitting privileges extend to 550 physicians, who have office systems that interface with at least one of the acute care EHR systems.

The vision is to create an environment to support communication, care coordination, and data sharing across the organization in preparation for a regional EHR system. The organization is moving quickly to take advantage of the incentives driven by the government and meet mandatory requirements. Executives decided to focus on the acute care facilities first and use lessons learned there to integrate the other centers later.

Hospital A uses certified EHR applications and has implemented ancillary systems, CPOE, and clinical documentation, whereas Hospital B has a highly customized, beloved old mainframe computer that is outdated and no longer supported by the vendor. Instead of selecting a new system for both hospitals, the software programs used in Hospital A are being implemented in Hospital B.

1. Describe how a decision-maker would use the financial information system reporting function to make decisions, and provide a summary of what the various reports tell the decision-maker.

2. Discuss the advantages and disadvantages of using business intelligence at the application level as opposed to the enterprise level.

Answer 1

1. A  big part of management is decision making. It is involved in almost anything managers do. A classical list of managerial tasks includes planning, organizing, staffing, delegating or directing, coordinating or controlling, reporting, and budgeting (note the acronym POSDCORB). Some of these tasks are a direct application of decision making, such as planning and delegating or directing. Other tasks usually result in decisions.

So for example, organizing work in
organizational departments and offices requires analyzing a current work situation and the next
step may be deciding on changes.

Similarly, hiring new employees and assigning employees to jobs (staffing tasks) also end up with a management decision.
A decision is about choice making. A decision maker needs to have two or more choices
(options) available and then choose (select) one of those that makes the decision. Recall that in
process diagrams a decision is represented with a question inserted in a diamond shape,
followed by optional output steps resulting from possible answers (choices).

In more detailed diagrams, the decision diamond can be broken down to an entire process.
The choices can be carefully evaluated to arrive at the best one. This is the case of ideal,
rational decision making. However, when decision makers work under some pressure they may need to settle for a choice that is good enough rather than perfect. Even more of deviation from rational decision making happens when decision making is performed over prolonged periods without delivering a clear decision.
Any decision is made for a purpose. When a manager faces some problem, she/he concentrates on it in order to find a solution. As there is a start point (a problem) and the end point (a decision), there must be some activities in between these. Altogether, they make a process.
Here are some examples of the problem that can initiate a decision process: supplies are beinge expendedmore quickly than planned, a job position gets vacant and has to be filled, a budget must be allocated between purchase requests, annual bonuses are to be awarded, strategic goals need to be defined, and so on. Decisions can apparently apply to everyday operations (e.g., delegating tasks to subordinates), a close future (e.g., monthly purchases for replenishing the inventory), and a more distant future (strategic goals setting).

Once a decision is made, a decision maker needs to ensure that it will really solve the problem
it was made for. This includes additional steps of monitoring decision effects and of adjusting
the decision if the effects are not as expected. Only when a decision really solves the problem,
the problem solving process is over.
Decision making processes are data-intensive. A manager may need various reports, business
documents, analyses, and direct communication in order to get prepared for making effective
decisions. The scope of data coverage depends on the level of management and the problem
dealt with. In addition, decision making requires knowledge. In particular, knowledge of
business is a part of management competence. This knowledge is practical experience rather
than theoretical knowledge, and it facilitates effective informing of the manager. All is types
supporting management, which were mentioned before, assist in decision making.

Decision maker view point

This is one of decision making and problem solving is based on several assumptions.
1. The decision maker is perfectly informed when defining a problem, creating optimal
solutions, and when evaluating them.

2. The model does not account for constraints, such as time and resources (human, material). While you should deploy the rational model whenever possible, you should know that its assumptions are rarely matched in reality.

Reports by Decision Maker

financial-information-and-decision-making. ... Profit and Loss accounts providing details of whether the business is making efficient use of financial resources. Balance Sheet information providing details of a businesses assets and liabilities, as well as the liquidity of the business.

Profit and Loss accounts providing details of whether the business is making efficient use of financial resources.

• Balance Sheet information providing details of a businesses assets and liabilities, as well as the liquidity of the business.
• Sales and purchases information setting out particular types of trading and accounts with particular customers and suppliers.
• Information about the purchase of assets and liabilities.
• Information about the wages paid out by a business.
• Information about costs.

By providing a steady and up-to-date flow of information, of this Hospital is able to make appropriate decisions about:

• how to reduce costs
• how to increase sales
• how to raise profitability
• when to purchase new capital assets
• the best sources of finance, and duration, etc.

2) Answer

Benefits of Businesses Intelligence:

1. Faster reporting, analysis or planningMore accurate reporting, analysis or planning

2. Better business decisions

3. Improved data quality

4. Improved employee satisfaction

5. Improved operational efficiency

6. Improved customer satisfaction

7. Increased competitive advantage

8. Reduced costs

9. Increased revenues

10. Saved headcount

Some of the major Business Intelligence disadvantages are:

1. ​​Piling of Historical Data
2. Cost
3. Complexity
4. Muddling of commercial settings
5. Limited use
6. Time Consuming Implementation