oss economics
TRANSCRIPT
A Serious Situation
Where's the money going?
Greater ManchesterNHS Capabilities
5Boroughs
Bolton FT
CMUHFT
East Cheshire
East Lancs
GMWestMHFT
MMHSCT
Pennine Acute
Pennine FT
Salford Royal
Stockport FT
Tameside FT
Christie FT
South Manchester FT
Wigan FT
0 5 10 15 20 25 30 35
Trust range of functional capability
sub-title
Onchology e-Prescribing Observation Vital Signs
In Patient E prescribing EPR
Substance Abuse Critical Care
Clinical workflow Clinical Noting
Clinical e Prescribing Clinical Datawarehouse
Bloods Bedsys
Analytics Onchology
Cardiology Finance
Digital Dictation Clinical
Child Health System Community SystemPatient Psych
Ecare Document Management
Integration BI & Data Warehousing
PACS Pharmacy
Pathology Maternity
Theatre RIS
A&E E Prescribing
Scheduling Discharge Letters
Diagnostic Reporting Order Comms
PAS
source: Digital Health Intelligence
Supplier Prevalencesource: Digital Health Intelligence
5Boroughs
Bolton FT
CMUHFT
East Cheshire
East Lancs
GMWestMHFT
MMHSCT
Pennine Acute
Pennine FT
Salford Royal
Stockport FT
Tameside FT
Christie FT
South Manchester FT
Wigan FT
0 5 10 15 20 25 30 35
sub-title
Xcelera Winscribe WinDIP Web Pharmacy Ward Watcher
Unisoft UG pro TTO meds TIMS Theatreman
TDHC TDBB Talking Point Synergy Symphony
Sunrise SQL SQL Somerset Cancer Register SLAM
Siemens Sharepoint Scanfile Rx Tracking Rhapsody
Review Prodacapo Prism PLICS Pharmacy
Patientrack Patient Flow Patient First Patient Centre Paris
Otter Ormis Oracle Olympus OCR
NOMAD NEP Mosaiq Modulus MIS
Miracle MetaVision Medway Medispeech Medisec
Medcon McKesson Masterlab Lorenzo LMX
LE LabCentre Keystone JCAPS iPharmacy
InView Integra Inpatient Flow Innovian In House
ICIS ICE ICBM ICAN IAPT
i.PM i.LAB i.CM Horizon Healthviews
Gecko Galaxy G2 Speech Evolution EuroKing
eTTO EPTS EPR ePMA Ensemble
EMIS eDischarge E3 E business Diamond
Dendrite DataGate DataCam Data Warehouse Data Academy
Dart CRIS Cost Master Corp Info Sys Concerto
Community Info DW CMiS Cloverleaf Clinicom Clinician
Clinical RTI Solutions CIRIS Chimera ChemoCare Centricity
CD View Ccube EDM CCH2000 Cassius Cascade
CareVue Care Plus Cardex Carddas Business Objects
Bloodtrack Bloodhound BigHand BEDS BedMan
Athena Ascribe Aria Amigos ALS
Agresso Advantis Advantage
The NHS IT landscape
PAS system
PACSsystem
FinanceSystem
PathologyLIMSsystem
Theatressystem
Observation Vital Signs
system
Child Health System
Cardiologysystem
GP systems
Privacy& InformationGovernance
Data SharingPlatforms
QUANTITY of Software and Service Value
Q2 – changes to Q1
UNITPRICE
Cost of ongoing competitiveOPEN SOURCE suppliermarket
TCO: no Vendor Lock-in
EXTRAPROFIT
PRE-CONTRACT CUSTOMERDEMAND
1
Cost from a CLOSED SOURCE Supplier with natural monopoly
2a
POST-CONTRACTCUSTOMERDEMAND
2b
PRE-CONTRACT
POST-CONTRACT
Its cheaper to own OSSthan rent closed source
£XmProjectSpend
CAPITAL EXPENSES
30%Implementation
Consulting
30%Training&Support
OPEN SOURCE
ExpenseAccount
Yrs
0 for OSS
Varies but assume a70/30 split
60% for OSS
10%Hardware
Cost
Same for OSS
CLOSED SOURCE
Yrs
Same for both
0.5%Strategy
Consulting
Not neededfor closedsource
30%Licence
Cost
Create new capital valuesource: NHS Manual
● For “in use” non-specialised property assets fair valueshould be interpreted as market value for existing use.For specialised property for which no effective marketexists, “fair value” is deemed to be the depreciatedreplacement cost for a modern equivalent (MEA) asset(i.e. one that is capable of delivering the samethroughput or volume of service). (Source: NHSFinance Manual)
● i.e. The network/datacentre on which OSS is live canattract the an MEA capital value equal to the value ofan equivalent closed source package license
● NHS Trusts will own the IP around their instance of OSS
● Can exploit and improve this capital in collaboration withsuppliers and partners
Help tackle the deficit!
● OSS allows you to innovate and create newsignificant capital value from nothing!
● transfer license spend to development spend
● Save money from an ongoing highlycompetitive supplier market
● avoid erosion of capital asset value fromsoftware license amortisation
● Capitalise full software value to reduce deficit