From AI and data to new strategies for service delivery

Tracy McClelland at Dedalus describes how the healthcare sector is paving the way for a new business era

 

In today’s rapidly evolving business landscape, organisations of all kinds are facing mounting pressure to innovate and revamp their processes to stay ahead of competition.

 

While many industries have embraced digital transformation, few showcase the profound operational impact of advanced technologies as vividly as healthcare. Healthcare’s digital transformation offers practical examples and valuable insights for business leaders across all industries.

 

NHS trusts implementing cloud-based electronic health records or AI-powered diagnostic tools, for instance, are addressing the same challenges that manufacturing firms, financial institutions or retail companies are also facing: managing increasing complexity and improving business outcomes while controlling costs.

 

The results achieved speak volumes. Recent studies by Deloitte¹, NHS Digital² and MIT Sloane Management Review³ have shown that healthcare organisations that leverage advanced technologies have benefited from a 23% reduction in operational costs, a 35% improvement in workflow efficiency and have significantly enhanced their decision-making capabilities.

 

 

Human expertise with AI-powered systems 

What are the key drivers of the technology revolution in healthcare and what can senior professionals in other industries learn from their implementation?

 

Artificial Intelligence (AI) is undoubtedly playing a pivotal role in reshaping healthcare. Rather than replacing human judgment and expertise, the most successful cases of AI implementations augment human capabilities. As highlighted in a recent article by the Harvard Business Review⁴, for example, in clinical settings AI systems that support physician decision-making help reduce diagnostic errors by 22%, while considerably improving efficiency. 

 

Along the same lines, radiologists capitalising on AI-assisted image analysis review 34% more cases, with a striking 28% higher accuracy rate. And again, clinical teams using predictive analytics identify deteriorating patients six to eight hours earlier than teams still employing traditional methods.

 

What makes this approach to AI particularly relevant to other industries is the focus on appropriate trust calibration, that is, the process by which human beings adjust their expectations of machines’ reliability and trustworthiness. Instead of presenting AI as infallible, hospitals and other healthcare organisations have developed frameworks for explainable AI, which aim to make algorithmic reasoning more transparent.

 

The benefits of this approach are remarkable. When clinicians understand not only what AI recommends, but also why, appropriate reliance – the impact of reliance on performance – surges.⁴

 

Achieving optimal trust calibration is paramount to many other business contexts. As noted by the Harvard Business Review⁴, financial services firms that are leveraging explainable AI for credit decisions have reported a 29% increase in analyst satisfaction and a 23% reduction in decision-making time. By following in the footsteps of these pioneering companies, businesses across any sector can take their processes to the next level.

 

Last but not least, the governance models developed within the healthcare industry offer equally valuable lessons. Forward-looking organisations have established accountability frameworks that outline which decisions can be fully automated, which require human review of AI recommendations and when, on the other hand, AI may serve purely as an information-gathering tool. The introduction of this tiered approach, including bias assessment and ethical review, is drastically reducing implementation timelines while increasing ROI.

 

 

Reinventing processes to thrive 

Besides devising a productive and responsible approach to the implementation of AI, healthcare organisations have tackled other challenges that affect businesses across all sectors. These include the elimination of data silos and the strategic migration of services.

 

Breaking down data silos and creating truly integrated systems that surface data from across sites are critical for data-driven clinical decision making and the goal to fully expand this to connect primary, secondary and community care will drive future operational efficiency. When patient information flows seamlessly across departments, care coordination can reach new heights. Similarly, businesses that manage to integrate previously isolated data from different units – from finance and HR to marketing and customer service – will gain a significant competitive edge. 

 

As for the second point, the healthcare sector has successfully commenced the implementation of the “left shift”, meaning the shift of services from the centre – hospitals and other acute care settings – to the community or people’s homes. Enabled by sophisticated remote monitoring platforms and virtual consultation technologies, this transformation is enabling the radical reinvention of the care delivery model, reducing the burden on hospitals while improving patient outcomes. 

 

Thanks to the left shift, hospital readmissions have already declined by 31% and the length of stay has decreased by 42% for patients across different clinical categories, the MIT Sloan Management Review³ has revealed. Even more significantly, patient satisfaction scores have climbed while costs have fallen, a dual achievement once considered impossible.

 

The principle of the left shift can be applied to multiple industries. By leveraging advanced technologies such as AI and Internet of Things (IoT), manufacturing enterprises or financial institutions can usher in a similar transformation, bringing key activities closer to their customers without compromising on the quality of the services delivered.

 

 

The power of data democratisation 

Perhaps no other aspect of healthcare’s digital transformation offers a more universal business lesson than the management of patient data. Healthcare organisations have evolved from treating patient information as closely guarded professional territory to viewing it as a powerful engagement mechanism.

 

The results are nothing short of transformative. As recently explained by BMJ Digital Health⁵ and Forrester Research⁶, when patients gain secure and convenient access to their health records and care plans through well-designed digital interfaces, engagement metrics surge by 34%. Treatment adherence – the equivalent of customer retention in healthcare – improves by 28% and decision satisfaction rises.

 

This form of “data democratisation” has the potential to benefit other industries. Logistics companies providing transparent shipment tracking have already reduced service inquiries and financial services firms offering comprehensive self-service analytics have substantially improved customer retention. In other words, the advantages of a more widespread access to information transcend industry boundaries.

 

Organisations brave enough to transform themselves from gatekeepers of information to enablers of data-driven decision-making will unlock a whole new world of opportunities. 

 

 

The real meaning of the digital transformation

As business leaders worldwide navigate the complexity of the digital transformation, the healthcare sector demonstrates that success largely depends on how new technologies are implemented, far more than on the technologies themselves. Factors like cultural change management, human-centred design (HCD) and a focus on user experience are crucial to reaping the full benefits of Industry 5.0.

 

By capitalising on – and taking inspiration from – healthcare’s digital journey, senior decision makers across any sector can make the best use of the latest technological advancements, delivering measurable improvements in terms of efficiency, innovation and competitive advantage.

 

The organisations most likely to succeed in an age of relentless change are those that recognise that digital transformation is not about technology for technology’s sake. Rather, digital transformation means enhancing organisational capabilities through thoughtful integration of human insight and cutting-edge tools.

 

References:

1. Deloitte. (2023). "Digital transformation in healthcare: Lessons for cross-industry application." Deloitte Insights.
2. NHS Digital. (2024). "Digital transformation impact assessment: Five-year outcomes report." NHS England Publications.
3. MIT Sloan Management Review. (2023). "The metrics that matter: Measuring digital transformation success." MIT Sloan Management Review, 64(3), 82-91.
4. Harvard Business Review. (2023). "What business leaders can learn from healthcare AI adoption." Harvard Business Review Digital Articles, 97(2), 68-76.
5. BMJ Digital Health. (2024). "Patient portal access and outcomes: A five-year longitudinal study." BMJ Digital, 3(1), 14-29.
6. Forrester Research. (2023). "Consumer empowerment through data access: Cross-industry analysis." Forrester Customer Experience Index.

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Tracy McClelland is Chief Clinical Information Officer, UK and Ireland at Dedalus, an industry leader in the digital and clinical healthcare space

 

Main image courtesy of iStockPhoto.com and Sean Anthony Eddy