Why Healthcare Executives Are Investing in Digital Strategies
We currently live in a time where innovation is the new standard. Organizations that aren’t currently working towards eliminating their manual, paper-based processes are running the risk of falling behind. This is especially true for Healthcare organizations, where demand for their services is growing faster than almost every other industry in the United States.
According to TIME Magazine, the Healthcare sector is “on pace to become the largest job sector in the U.S in the next three years.” Time consuming, manual processes are simply not efficient enough to keep up with this rapid growth. Unfortunately, a recent study found that 93% of Healthcare executives are still using these manual processes. This explains why so many Healthcare executives are prioritizing the move towards digital strategies.
Our 2017 State of Workforce Management Report discovered that 65% of survey respondents, which were primarily made up of Healthcare executives, reported they were either ‘Extremely Likely’ or ‘Very Likely’ to invest in digital strategies in the next 12 months. Obviously, executives understand that investments must be made, and that the implementation of digital strategies is time sensitive.
Our more recent 2017 Executive Priorities report found that the majority of Healthcare executives, 88%, believe that investing in digital strategies will help their organization make more strategic decisions. This statistic is juxtaposed by the fact that 93% of Healthcare organizations are still relying on manual approaches to processes that can easily be automated with investments in technology and digital tools. There are clear obstacles in the way for these executives.
The Executive Priorities Report also confirmed that one common objection that Healthcare organizations, primarily nonprofits, have against adopting digital strategies and implementing new-age, digital tools is the cost. Budgets and resources are often constrained, and rationalizing a digital investment is harder to accomplish. However, a recent article by McKinsey & Company reveals that Healthcare organizations are starting to allocate more of their IT budget towards digital transformation. McKinsey & Company, found that digital transformation will amount for over 50% of the IT budget for Healthcare organizations within the next couple of years. One can only expect this percentage to increase as time goes on.
Another digital area of investment Healthcare organizations are considering is data analytics tools. Such tools are needed to track the effectiveness of current strategies, organize important information, and drive data-driven decision-making. All of which are crucial to a Healthcare organization’s success. DATIS HR Cloud found that a staggering 84% of Healthcare executives expect their organizations to invest in data and analytics tools this year. Healthcare executives clearly understand the need for relevant, real-time data when transitioning to a digitally driven environment.
Healthcare organizations must evolve with the sector’s changing landscape. Processes that have been in place for many years must be updated to optimize the workforce, and make the organization more efficient. Implementing digital strategies and investing in digital tools have proved to be the future of the Healthcare sector.