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Competence:-

Migrate to New Technology

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LO 1

Apply existing knowledge and


techniques to technology transfer

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Cont..
Technological change (TC) is a term that is used to describe
the overall process of invention, innovation and diffusion of
technology or processes.

The term is synonymous with technological development,


technological achievement, and technological progress.

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Cont..
• In essence TC is the invention of a technology (or a
process), the continuous process of improving a technology
(in which it often becomes cheaper) and its diffusion
throughout industry or society.

• In short, technological change is based on both better and


more technology.

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Modeling technological change
• Technological change was illustrated with the 'Linear Model of
Innovation', which has now been largely discarded to be replaced
with a model of technological change that involves innovation at
all stages of research, development, diffusion and use.

• When spoken about "Modeling Technological Change" often


the process of innovation is meant.

• This process of continuous improvement is often modeled as a


curve depicting decreasing costs over time (for instance fuel cell
which has become cheaper every year).

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Cont..
• TC is often modeled using a learning curve.

• TC itself is often included in other models (for instance climate


change models) and was often taken as an exogenous factor.

• These days TC is more often included as an endogenous factor.


This means that it is taken as something you can influence.

• It is generally accepted that policy can influence the speed and


direction of TC (for instance more towards clean technologies).

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Invention
• The creation of something new, or a
"breakthrough" technology. For example, a
personal computer

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Diffusion
• The spread of a technology through a society or industry.

• The diffusion of a technology generally follows an S-shaped


curve as early versions of technology are rather unsuccessful,
followed by a period of successful innovation with high levels
of adoption, and finally a dropping off in adoption as a
technology reaches its maximum potential in a market.

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Technological change as a social process
• Underpinning the idea of technological change as a social
process is general agreement on the importance of social
context and communication.

• According to this model, technological change is seen as a


social process involving producers and adopters and others
(such as government) who are profoundly affected by cultural
setting, political institutions and marketing strategies.

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Elements of diffusion
Emphasis has been on four key elements of the
technological change process:

1) An innovative technology
2) Communicated through certain channels
3) To members of a social system
4) Who adopt it over a period of time.

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Innovation
• Rogers proposes that there are five main attributes of innovative
technologies which influence acceptance, which he calls the
ACCTO criteria.

• These are relative Advantage, Compatibility, Complexity, Trial


ability, and Observability.

• Relative advantage may be economic or non-economic, and is the


degree to which an innovation is seen as superior to prior
innovations fulfilling the same needs.

• It is positively related to acceptance (i.e., the higher the relative


advantage, the higher the adoption level, and vice versa).

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Cont..
• Compatibility is the degree to which an
innovation appears consistent with existing
values, past experiences, habits and needs to the
potential adopter; a low level of compatibility
will slow acceptance.

• Complexity is the degree to which an innovation


appears difficult to understand and use; the more
complex an innovation, the slower its acceptance.

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Cont..
• Trial ability is the perceived degree to which an
innovation may be tried on a limited basis, and is
positively related to acceptance.

• Trial ability can accelerate acceptance because


small-scale testing reduces risk.

• Observability is the perceived degree to which


results of innovating are visible to others and is
positively related to acceptance.
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Communication channels
• Communication channels are the means by which a source
conveys a message to a receiver.

• Information may be exchanged through two


fundamentally different, yet complementary, channels of
communication.

• Awareness is more often obtained through the mass media,


while uncertainty reduction that leads to acceptance
mostly results from face-to-face communication.

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Social system
• The social system provides a medium through which and
boundaries within which, innovation is adopted.

• The structure of the social system affects technological


change in several ways.
• Social norms, opinion leaders, change agents,
government and the consequences of innovations are all
involved.

• Also involved are cultural setting, nature of political


institutions, laws, policies and administrative structures.
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Time
• Time enters into the acceptance process in many ways.

• The time dimension relates to the innovativeness of an


individual or other adopter, which is the relative
earliness or lateness with which an innovation is
adopted.

• Technological change can cause the production-possibility


frontier to shift outward. And initiate economic growth.

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Economics
• Technological change is a term that is used in economics
to describe a change in the set of feasible production
possibilities.

• Neutral technological change refers to the behavior of


technological change in models.

• Technology will continue to CHANGE


• The challenge is to make effective use of new technology
as it appears .
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Cont..
• As computer technology expanded, and became more
powerful and cheaper, other uses were discovered.

• Today, it is used in a wide range of disciplines, including


electronic commerce, multimedia, education and
entertainment.

• New technology often means new skills need to be applied to


existing businesses.

• The fundamental nature of the business does not change but


the way it is conducted does.
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Cont..
• For example
– banking relies on online services,
– selling on the internet replaces sales
representatives;
– the taxation department actively encourages
electronic lodgment of tax returns.
– Education has embraced online learning and
embraced the virtual classroom

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IT Strategic Planning
• How can IT help the organization perform
better?
– software, hardware, communications
• Not all advances are appropriate
• Any change has an element of risk
• Planning increases the chance of new
technology benefiting the organization.

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Strategic planning
• Strategic planning is an organization's process of defining
its strategy, or direction, and making decisions on
allocating its resources to pursue this strategy.

• In order to determine the direction of the organization, it is


necessary to understand its current position and the
possible avenues through which it can pursue a particular
course of action.
• Generally, strategic planning deals with at least one of
three key questions:
– "What do we do?"
– "For whom do we do it?"
– "How do we excel?"
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Key components
The key components of 'strategic planning' include an
understanding of the firm's vision, mission, values and
strategies. (Often a "Vision Statement" and a "Mission
Statement" may encapsulate the vision and mission).

Vision: outlines what the organization wants to be, or how it


wants the world in which it operates to be (an "idealized" view
of the world).
• It is a long-term view and concentrates on the future.

• It can be emotive and is a source of inspiration. For example,


a charity working with the poor might have a vision
statement which reads "A World without Poverty."
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Cont..
Values: Beliefs that are shared among the
stakeholders of an organization.
• Values drive an organization's culture and
priorities and provide a framework in which
decisions are made.

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Cont..
• Strategy: Strategy, narrowly defined, means "the art
of the general".[citation needed] - a combination of
the ends (goals) for which the firm is striving and the
means (policies) by which it is seeking to get there.

• A strategy is sometimes called a roadmap - which is


the path chosen to plow towards the end vision.

• The most important part of implementing the strategy


is ensuring the company is going in the right
direction which is towards the end vision.
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Strategic planning process
• There are many approaches to strategic
planning but typically one of the following
approaches is used:
• Situation-Target-Proposal
– Situation - evaluate the current situation and how
it came about.
– Target - define goals and/or objectives (sometimes
called ideal state)
– Path / Proposal - map a possible route to the
goals/objectives
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Cont..
Draw-See-Think-Plan
• Draw - what is the ideal image or the desired end
state?
• See - what is today's situation? What is the gap from
ideal and why?
• Think - what specific actions must be taken to close
the gap between today's situation and the ideal state?
• Plan - what resources are required to execute the
'plan'?

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 Seven Steps to Developing an Effective IT
Strategic Plan
#1 - Review Strategic and Tactical Goals and align with the Technology
Projects and Goals.
• Developing an effective technology strategic plan should first start
with a review of the organization’s strategic plan.

• Often after listing out the strategic plans and tactical plans of the
organization, the areas where technology could enhance or enable such
plans becomes apparent.

• Many organizations that have reached the state where their IT planning
is pro-active rather than reactive have used the strategic plans and
tactical plans as the litmus test for whether a project should be funded.

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Cont..
• When reviewing projects during the budget process,
consideration should be given to whether the project
contributes to achieving the strategic goals of the
organization.

• Example: If one of your strategic goals is to become “a


premier provider of health care services”, how is that goal
going to be achieved?

• What is a premier provider, and what tools would enable your


health care staff to become just such a provider?

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Technology projects such as:
• Clinical systems that support EHR - Electronic Health Record
, Home Health and Point of Care solutions

• Software solutions that improve quality and enable nursing


staff to provide more care and less time doing paperwork

• Tele-health monitoring systems to allow your organization to


extend services out into the community.

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#2 – Interview the Executive and the Operational Staff
• After reviewing the organizations Strategic Goals, the
next step is to collect information from the executive and
operational staff.

• This information should be collected in a variety of ways


so that common themes can be extrapolated, and that the
analysis shows trends and direction.

• Often people will open up more in individual interviews


and others will tend to do better in group settings.

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Cont..
We often use the following tools to collect data
when helping clients create IT strategic plans:
• Questionnaires and Surveys
• Strengths/Weaknesses/Opportunities/Threats
(S.W.O.T.s)
• Individual Interviews (Executive and selected staff)
• Departmental Interviews
• Interviews with the Board of Directors and Resident
Groups

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#3 – Benchmark the Current IT Organization and IT
Spending
• This is one area where it may be more difficult to internally
evaluate your existing IT Organization without the assistance
of a consulting firm, but here are the important criteria you
will want to include in your evaluation.

• The size and scope of the most IT organizations varies greatly


between different senior living providers/settings.

• This could be due to the various applications or the variety of


customers (including both residents and business users in
some communities), so each organization is unique.

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Cont..
• The benchmarking exercise may include the following
aspects:
– IT Leadership – does your company have a CIO or IT Director
in strategic planning and growth?
• Is IT Leadership proactive or reactive?
– What is the size and scope of the current IT organization?
– How does this compare to other similar senior living providers?
– Rank your internal IT staff and responsibilities in comparison to
similar senior living providers to determine if your organization
is a leader, follower, or laggard in providing IT solutions to your
company.

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Cont..
• Benchmark IT spending against other Senior Living providers to see how
your organization invests their IT dollars.

• We typically find that many senior living providers “think” they are
spending enough on IT, but they are really laggards in comparison to
senior living organizations that view IT as a strategic investment over
their competitors.

Example: Take a critical look at how IT is funded in your organization and


ask yourself the following questions:

• Is Information Technology considered a “cost” of doing business or an


“enabler” of the business to succeed?

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Cont..
– Are projects funded based on proactive or reactive
thinking?
– Do you replace systems when they break or are there
multi-year plans to upgrade systems?
– Do you include IT leadership on the organization’s
Executive team?
– How are new corporate directives and goals
communicated to IT?
• Would outsourcing some or all of IT for your
organization lower IT expenditures?
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#4 – Software Applications and Systems
Review
• Most senior living communities are currently using applications
for the needs of the business before you begin bringing in vendors
for system demonstrations.

• The best way to start the process is to identify all the applications
currently in use in the organization and determine the following:

– Review each application and determine with the users if the application
is meeting the current needs:
– Who are the “owners” of the application?
– What are the needs of the current “owners”?

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Cont..
• Review the current application and identify where the
current application is meeting or not meeting the
needs of the department

• Determine when the application could be considered


for replacement or enhancements (based on not
meeting needs, purchase date, regulatory
requirements)

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Cont..
Example: Your organization is being charged with looking for a new clinical
system that will support

• A suggested action plan might be:


• Identify the current and anticipated needs by interviewing and working with
the clinical staff and related departments such as finance)

• Put the results of the needs analysis into a spreadsheet for review
• Sit down with your current clinical vendor and determine where the existing
application can or cannot meet the needs identified in the steps above

• Consider performing the same process with alternative vendors, particularly


if the current vendor cannot meet the required needs sufficiently

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#5 – Review the Gaps between the Strategic Goals and the
Current Operations
• This is where the fun begins. You have reviewed the strategic
goals of your organization and identified IT related goals.
• You have interviewed the executive and operational staff to get
their input into the IT needs of the organization as well as the
current performance of the IT operations team and systems.
• You have reviewed the existing IT organization, staff and budget
and have reviewed the current list of applications and determined
whether they are meeting the current needs of the organization,
and explored some upgrade or replacement options.
• Armed with this information, the next steps are to identify the
gaps between the desired state and the current state of the IT
organization.

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Cont..
Examples of some of the gaps could include:
• Growth goals for the organization may not be in line with current
IT investment
• IT staff may be improperly sized to support growth or meet the
current needs
• Software Applications may be identified for replacement sooner
than expected
• End-users lack sufficient training to maximize the use of existing
applications
• IT systems (hardware and infrastructure) may need to be replaced
to meet the goals

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#6 – Develop the IT Short-Term and Long-Term
Project Plan/Timeline

• With the gaps identified, you can now prioritize projects over
a multi-year period and create that elusive long-range
technology vision.

• Because of the dependencies upon other IT projects, this is


best done by
• IT staff or consultants with a technology background.

• At a high-level, the executive leadership can direct the


priorities of the organization and then these priorities can be
assembled into a project timeline.
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Cont..
• Example: During the gap analysis, the following
projects were identified as being needed to meet the
strategic goals of the organization.
• Clinical systems that support EHR, Home Health and
Point of Care solutions
• Wi-Fi support for multiple systems across the
communities
• Enhanced training for the clinical staff to support
existing applications
• Access to more computer systems across the
organization

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Cont..
• Based on the gaps above, you could create a multi-
year plan that included the following:
• 1st Year – Add a Clinical Trainer to staff for clinical
system support and training, research clinical software
solutions and perform a “needs analysis” and clinical
application review to determine the process for
meeting the new clinical needs (when researching
clinical software applications, keep in mind
certification for interoperability and the ability to
exchange residents’/clients’ health information with
other providers when needed).
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Cont..
2nd Year – Implement Wi-Fi technology across the
communities to support the wireless business needs.
– Develop a 3-4 year computer replacement plan to keep the
technology refreshed on a regular basis, and add systems to
support new applications. Begin first phase of the clinical
system implementation to support EHR

3rd Year – Add 2nd support staff FTE (or consider


outsourcing alternatives) to the IT budget to support the
new clinical system needs.
– Continue to expand the clinical system to include Home

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#7 – Give Information Technology a “Seat at
the Table”

– Now that you have created the technology vision


for your organization, the goal needs to be to
continue to update and develop the plan as things
change.

– None of us can anticipate a major downturn in the


economy, like the one we recently experienced, or
an opportunity for growth in your organization that
becomes available a few years from now.

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Cont..
– It does not matter if your community has a small
IT staff or a large one; you need to have someone
in the organization that represents the IT
department included in your strategic planning and
operational planning processes.

– The only way that your technology vision can be


kept current with the organization’s vision is to
include them in the process

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Benefits of new technology
• Organizations are extremely competitive
• Business organizations continually need to
– increase profits
– Increase market share
– Reduce costs
• Non-profit organizations – governments,
charities –
– Provide improved services at less cost

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Some possible benefits of new technology

o New business opportunities


o Increase in existing business
o Greater efficiency
o Greater competitive advantage
o Improved management and work practices
o New business opportunities
o New technology often creates business opportunities for
NEW business to start up and take advantage of the new
technology:

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Cont..
• Internet
• Internet providers (ISPs)
• Web pages
• Advertisements for the internet
• Communications and networks
• Linking organization’s computer systems

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Cont..

Increasing existing business


– Technology can enable existing business to increase their operations

Banking - ATMs enable banking transactions at any time of the day


Increasing efficiency
– The automation of systems, particularly labour-intensive ones, e.g. banking
– ATMs - it costs less to have a customer make an ATM transaction than to have a
teller serving that customer
 
NT benefits for consumers too
– Smart cards – like a private bank – when the money runs out more credits need to
be purchased

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Productivity and efficiency gains

– Productivity gains result from being able to do a


job more efficiently and ultimately at less cost by:
– Producing more for the same or less effort
• Car manufacturer more cars, same time
– Producing the same amount at less cost
• Car manufacturer same number of cars, less
cost

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Reducing labour costs
• Cost of labour is a BIG expense
• Many productivity gains reduce labour costs
• Supermarkets
– Automated checkout
– Automated inventory
– Price changes – database
– Internet shopping – groceries, books

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