Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a varietyof healthcare services across the globe. MYH has more than 20,000 full-timeemployees and more than 5,000 part-time employees. MYH recently updated itsstrategic plan; key goals include reducing internal costs, increasing cross-selling ofproducts, and exploiting new Web-based technologies to help employees,customers, and suppliers work together to improve the development and deliveryof healthcare products and services. Below are some ideas the IT department hasdeveloped for supporting these strategic goals:1. Recreation and Wellness Intranet Project: Provide an application onthe current intranet to help employees improve their health. A recent studyfound that MYH, Inc. pays 20 percent more than the industry average foremployee healthcare premiums, primarily due to the poor health of itsemployees. You believe that this application will help improve employeehealth within one year of its rollout so that you can negotiate lower healthinsurance premiums, providing net savings of at least $30/employee/yearfor full-time employees over the next four years. This application wouldinclude the following capabilities:• Allow employees to register for company-sponsored recreationalprograms, such as soccer, softball, bowling, jogging, and walking.• Allow employees to register for company-sponsored classes and programsto help them manage their weight, reduce stress, stop smoking, and manageother health related issues.• Track data on employee involvement in these recreational and health-management programs.• Offer incentives for people to join the programs and do well in them (e.g.,incentives for achieving weight goals, winning sports team competitions,etc.). 2. Health Coverage Costs Business Model: Develop an application totrack employee healthcare expenses and company healthcare costs.Healthcare premiums continue to increase, and the company has changedinsurance carriers several times in the past 10 years. This application shouldallow business modeling of various scenarios as well as tracking andanalyzing current and past employee healthcare expenses and companyhealthcare costs. This application must be secure and run on the currentintranet so several managers and analysts can access it and downloadselected data for further analysis. The new application must also import datafrom the current systems that track employee expenses submitted to thecompany and the company's costs to the insurance provider. You believethat having this data will help you revise policies concerning employeecontributions to healthcare premiums and help you negotiate for lowerpremiums with insurance companies. You estimate that this applicationwould save your company about $20/employee/year for full-timeemployees over the next four years and cost about $100,000 to develop.3. Web-Enhanced Communications System: Develop a Web-basedapplication to improve development and delivery of products and services.There are currently several incompatible systems related to thedevelopment and delivery of products and services to customers. Thisapplication would allow customers and suppliers to provide suggestions,enter orders, view the status and history of orders, and use electroniccommerce capabilities to purchase and sell their products. You estimate thatthis system would save your company about $2 million each year for threeyears after implementation. You estimate that the system will take one yearand $3 million to develop and require 20 percent of development costs eachyear to maintain.

1.Recreation and Wellness Intranet Project Supports Business Strategies:-…

Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of healthcare products and services. Below are some ideas the IT department has developed for supporting these strategic goals: 1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the industry average for employee healthcare premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least $30/employee/year for full-time employees over the next four years. This application would include the following capabilities: Allow employons to rogister for company-sponsored recreational

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE