MMI 408 - Acquisitions
Obtaining the right product for the right price is the essence of free market consumer. Conversely, selling a quality product with a good price point for profitability and market share is the essence of the free market producer/seller. Knowing what is a good value is essential to both parties. In Informatics, that means knowing a great deal about the needs of the user, the culture of the organization and changes in the market.
Acquisitions create an interesting dynamic both within and between the organizations involved. The business imperatives and commitments needed for a major information technology acquisition involve the investigation of every workflow and process that the healthcare organization does, and allow the vendors substantial access to the health data of the organization. As a result, the purchaser is both curious and on guard as they proceed through their due diligence and review purchasing alternatives from different vendors. Ideally this process allows the purchaser to be aware of their own organizational needs so that they can effectively evaluate the strengths and weaknesses of the various types of contracts and/or license agreements that can be used in a technology acquisition. Some elements that would be deemed unacceptable to a large organization with many resources might be considered essential to a small organization looking for help.
Using this background our team created a request for proposal (RFP) to meet our organization’s business imperatives. In the process we considered the legal and business issues that would be drive the contracting decisions. That allowed us to both evaluate the vendors to acquire an information system, but also to negotiate a fair and ethical contract on behalf of our organization. Our goal was to assure that the product and the contract would beneficially serve the business needs and missions of all parties involved by including incentive-based terms for both the buyer and vendor.
The opportunity to work through an Application Service Provider (ASP) Agreement, modify it based on legal requirements and business needs, then split up as a group and negotiate both sides of the agreement in a live forum was substantial. It forced us to look at the agreement from both sides, but have the fortitude to negotiate either side successfully.
These skills will be invaluable in whatever role I find myself in the future. Understanding your partner in negotiation is critical to the success of the outcome. Both parties want not only to be successful on their own, but develop a vested interest in the future of the other company.
Syllabus ASP Agreement Hospital Perspective Vendor Perspective Paper Presentation
MMI Overview Coursework Projects Home
*image from http://www.p2c2group.com/acquisition_lifecycle.htm
Acquisitions create an interesting dynamic both within and between the organizations involved. The business imperatives and commitments needed for a major information technology acquisition involve the investigation of every workflow and process that the healthcare organization does, and allow the vendors substantial access to the health data of the organization. As a result, the purchaser is both curious and on guard as they proceed through their due diligence and review purchasing alternatives from different vendors. Ideally this process allows the purchaser to be aware of their own organizational needs so that they can effectively evaluate the strengths and weaknesses of the various types of contracts and/or license agreements that can be used in a technology acquisition. Some elements that would be deemed unacceptable to a large organization with many resources might be considered essential to a small organization looking for help.
Using this background our team created a request for proposal (RFP) to meet our organization’s business imperatives. In the process we considered the legal and business issues that would be drive the contracting decisions. That allowed us to both evaluate the vendors to acquire an information system, but also to negotiate a fair and ethical contract on behalf of our organization. Our goal was to assure that the product and the contract would beneficially serve the business needs and missions of all parties involved by including incentive-based terms for both the buyer and vendor.
The opportunity to work through an Application Service Provider (ASP) Agreement, modify it based on legal requirements and business needs, then split up as a group and negotiate both sides of the agreement in a live forum was substantial. It forced us to look at the agreement from both sides, but have the fortitude to negotiate either side successfully.
These skills will be invaluable in whatever role I find myself in the future. Understanding your partner in negotiation is critical to the success of the outcome. Both parties want not only to be successful on their own, but develop a vested interest in the future of the other company.
Syllabus ASP Agreement Hospital Perspective Vendor Perspective Paper Presentation
MMI Overview Coursework Projects Home
*image from http://www.p2c2group.com/acquisition_lifecycle.htm