Case Study On Apollo Hospital, Chennai, (India)

Student ID-1209675
Submission Date: -1st May, 2014
**
MASTER OF BUSINESS
ADMINISTRATION
MBA 4056- Managing Business Performance

& IT
Case Study on Apollo Hospital, Chennai, (India)
Student ID:
1209675
Marking lecturer:
Dr. Mathew Shafaghi
Date of Submission:
1st May 2014
Word Count:
4,771
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AbstractApollo Hospital located in Chennai, India is a high quality medical private

hospital. From its humble beginning, it has grown into one of the best hospital in
Chennai competing with other Hospitals. This paper is to study how it becomes
successful and continue its journey to become the best in India.
The four tasks required as emphasize as follows:
Task A: Apollo hospital case study covers following aspects:
Company profile of Apollo hospital
Product & customer/Patients providing by Apollo hospital Apollo hospital
Apollo hospital overall business processes
Product pricing of Apollo hospital
Financial investment of Apollo hospital
Business performance of Apollo hospital
IT and E-business provided Apollo hospital
Task B: This task is the investigation on the Apollo hospital environment
internally and externally using analytical tools in the past but can Apollo hospitals
develop a coherent strategy for its long-term plan to meet the challenges of
globalization, technological development, and the ever changing environmental
factors.
Task C: To discuss the main components of Apollo hospital of E-Commerce and
general strategic vision of Apollo hospital using mobile vision and well-defined
goals is considered a prerequisite for the successful development and
implementing a mobile commerce strategy.
Task D: To relate to Apollo hospital customer/patients, company, and employees.
Demonstrating the positive and negative impact of social networking on Ebusiness.
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TABLE OF CONTENT
List of Figures..........................................................................5
1.Introduction........................................................................................................6
1.1 Indian Health Care Overview
Task A.....................................................................................................................7
1.Company Profile
2.Products & Costumers
3.Business Processes
4.Product Pricing
5 Capital Investments
6.Performance Measurement
7. IT & E business
Task B...................................................................................................................16
Introduction
1.SWOT Analysis
2. Porters five forces analysis
3.McFarlans Grid
4. PESTELC Analysis
5. Michael Porters Value Chain Analysis
Task C...................................................................................................................28
1.Apollo hospital mobile vision and Objectives
2.The virtual clinic
3.M-Health Value Proposition
4. M-Health Challenges
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5. M-Health Applications
6. The Mobile Visions Fit with the M- Commerce Framework
Task D...................................................................................................................36
1.Impact of Social Networking on E-Business
Conclusion...........................................................................................................40
Reference.............................................................................................................41
Appendix..............................................................................................................47
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List of Figures
Figure 1: Healthcare Process Flowchart
Figure 2: Apollo hospital Business Evolution
Figure 3.Organization flow chart
Figure 4: Technological Excellence
Figure 5: Business process
Figure 6: Apollo hospital Estimate Costs for Selected Procedures
Figure 7: Apollo hospital Cost Issues
Figure 8: Strategy
Figure 9: Hospital & Medical Services
Figure 10: Leading Hospital Players in India
Figure 11: A graphical representation of SWOT Analysis
Figure 13: Porters Five Forces
Figure 14: McFarlans Strategic Grid
Figure 15: PESTELC Analysais
Figure 16 Investments in the Health Care Industry
Figure 17: Porters Value Chain
Figure 18: A Proposed Mobile e-Health Model to accelerate Healthcare delivery
Importance.
Figure 19: Social media
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1. IntroductionInformation Technology (IT) is closely associated with the health care industry.
The use of information technology (IT) enables the communication to be vastly
improved in the processes of decision support and accuracy in patients
administration (Leiner, B .et al., 2002). The use of IT to advance the medical
science has also been evidently through the use of expensive equipment and
technology that helped to increase the chances of recovery (Accenture, 2001).
1.1 Indian Health Care OverviewIndia health care industry has three major players, namely public hospitals,
private hospitals, international
hospitals (Fulcrum and Deloitte,
2001). Figure -1 illustrates the
importance of the India health care
industry
through
stakeholders,
its
suppliers/
providers
and
patients (see Appendix -1)

Figure 1. Healthcare Process Flowchart, Source: Healthcare market landscape (Adapted from:
Schwartz, 2002)
TASK A1. Company profile-
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Apollo Hospital, Chennai IndiaIts founder and chairman, Dr. Prathap C Reddy, has big dreams for Apollo
Hospital Enterprise Limited (AHEL) when it was established in 1983. It is also the
first private hospital to be public listed in the Indian Stock Exchange to have
hospital corporate entity in Asia to provide health care services from its humble
beginning, the Apollo Hospital (AH) now has sixty departments helm by experts
in their respective fields together with the development of international patient
specialized care. It is opened to public and international patients. (Apollo
Hospital, 2013).
Industry
Location
Established
No of employees
Annual turnover
Market
Healthcare
Chennai, India
1983
10,000 +
US$530 million
Mumbai plus international patients
As of March 31, 2013, Apollo Hospital operates fifty-one (51) hospitals worldwide
with a total of 8,420 beds. Its overseas hospitals are in Sri-Lanka, Pakistan,
Bangladesh, and Mauritius (Apollohospitals.com, 2013) .It also has 1,364 retail
pharmacies supporting the health care sector (Babu, 2014)
Figure 2: Apollo hospital Business Evolution, Source-http://www.apollohospitals.com/apollo/Apollo

_Investor _Presentation_August_2013
Based on the business application, CEO (Dr.Reddy) and its board members
ensure an effective business strategy to move the hospital forward. In addition,
the various hospital set-up designed by the management team play crucial roles
in the medical fields (See Appendix -1)
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Figure: 3 Organization flow chart, Source-http://www.medvarsity.com/dha.aspx
One of the important areas in the health care organization at Apollo Hospital is
the quality of care by the medical staff to the patients through the use of high
tech IT equipments (Gupte, 2013). In addition, Apollo Hospital also offers
Independent pharmacies,
Medical insurance services
Telemedicine services and research,
Implementing educational programs and training
Medical business process outsourcing services
Third-party management, and business support services

(Anonyms, 2014)
2.Products and customers2.1 Apollo hospital, Chennai products Using CT Scan

Ct-Angio scan
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16 slice PET CT scan

Cyber knife Robotic Radio Surgery
Digital Mammography with Tom synthesis (3 D).
Apollo Telemedicine
The virtual clinic
Technical consultation
Web Broadcasts (Apollo hospital, 2014)
Customer or patient came to Apollo hospital, Chennai for (education and
business platform).
For further more detail see (Appendix-1)
2.2 Customer or patient came to Apollo hospital, Chennai for (education
and business platform such as)
Feasibility studies,
Infrastructure planning,
Design and advisory,
Human resource planning,
Recruitment and training services,
Medical equipment planning, sourcing, and installation services;
Post-commissioning consultancy services consisting of management
contracts, and
Franchising
Medical
business
process
outsourcing
services
and
third-party
management, and business support service (Finance.yahoo.com, 2014).

One of the areas in the health care organization at Apollo hospital is that medical
staff and patients will always be the main focused of quality patient care through
the use of high tech IT equipments (Gupte, 2013).
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Figure 4: Technological Excellence, Source-http://www.apollohospitals .com/apollo

/apollo_Investor_Presentation_August_2013.
3. Business ProcessThrough the Chennai Business Process and Information Technology, Apollo
Hospital is able to compile with the health care laws and results in quality care
and extensive cost saving.
Proven ability to accelerate hospital revenue cycle hospitals through the
followings are practiced by the hospital:
Increase Productivity hospital

Speed of payment
Cost reduction and
Improved patient services (Apollohospitals.com, 2013).
Figure-5.Business process. Source- http://www.promantra.net/Hospital_RCM_Services.html
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Through the AHEL team, the process shown in Figure-5, the account and finance
department uses the Explanation of Benefits (EOBs) programmed is able to carry
out their task more efficiently. The hospital is then able to focus on the primary
care for the patients (Apollo Hospital Enterprises-2014).
The model used by the Apollo Hospital in India concentrates on the active
maintenance contract basis. In other words, the management team will fix an
annual management fee plus a percentage of additional revenue earned in
excess of the contract (Apollo Hospital Enterprises-2014).
4. Product PricingTogether with the strategic management team, Dr. Reddy and its management
team, is responsible for developing the hospital marketing strategies, forecast
and sales that will ensure the right pricing policies is in place. The pricing system
will monitor the competitive strategies to be applied by Apollo Hospital (Apollo
Hospital-2014).
Figure-6: Apollo hospital Estimate Costs for Selected Procedures

Source: - http://emedtravel.wordpress.com/2010/03/17/medical-travel-ireland/
Note-(*) Estimate pricing,

Formula: Traditional pricing formula: Cost + Profit = Price
Delivering value: (Access + excellence + efficiency + outcome) cost
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Figure 7: Apollo hospital Cost Issues, Source-http://www.hindustantimes.com /lifestyle/wellness/patientsparadise/article1-951097.aspx
Just as a well-established reputation for quality products and service, flexibility

and speed to respond to customer requests and requirements, Apollo Hospital is
mindful of the intense competition in the India market. Therefore, it has to have
strong competitive advantage compared to its competitors (Bhalla, 2014).
5. Capital investmentRevenue for April Apollo hospital in September 2012/13 is USD $ 30.83 million,
up 22 percent compared with a year former. Organization predicts that this rate
will continue to expand (Sharma, 2012).
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Figure-8:
Strategy,
Source-http://businesstoday.intoday.in/story/apollo-hospitals-challenges-in-
new-market-realties/1/190446.html.
On November 27, Apollo Hospital's shares hit a record high of USD $ 15.10
million, afterwards increasing 60 percent in 2012 (Sharma, 2012). The
benchmark Sensex raised 19 percent during this period. An analyst, who did not
wish to be named, said the strong market reaction is due to strong profit growth,
mainly from the business of hospitals and in the area recently. Management
continues to monitor operations and strategic planning to be effective (Babu,
2014). The aim is to improve the number of clinics and regional diabetes center
from the current 100-250, and dental clinics from 20 to 100. Pharmacies will
increase to 2,000 in three years from now in 1400.
(Note: - US-1.00 equiv. to Rs -60.13 (9-Apr-2014).
6. Performance MeasurementAnnual review is carried out by Apollo Hospital to ensure that review performance
measurement at the highest level. This will gauge the hospital aims to achieve
business goals and its objectives (Quality at Apollo: Apollo hospital, 2012). Due
to the sensitivity of the nature of its hospital businesses, the measurement focus
on financial indicators is dominated by the cost of the process and operational
costs. Measures of financial and non-financial aspects are carried out on a
monthly basis. A consolidated report is sent to the owner of the hospital. ( Quality
at Apollo: Apollo hospital, 2012).
Measurement of performance covers the followings:
Decision-making
Performance evaluation and
Responsibility
The CEO initiates the system. Leading services and medical services offered by
Apollo Hospital is shown in Figure-8. Apollo Hospital is the market leader at
889.00 Rs although it has a change of a negative 0.41. Overall Apollo Hospital is
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still the health care market leader in market capitalization (Top Companies in
India by Market Capitalization -2014)
Figure- 9: Hospital & Medical Services

Source-http://www.moneycontrol.com/stocks/top-companies-in-india/market-capitalisationbse/hospitals-medical-services.html
In Figure-9 and10 showing, It main competitor, Fortis Hospital, is also another

strong medical services provider in the industry that Apollo Hospital must
compete directly. (Babu and Narasimhan, 2012).
Figure-10 Leading Hospital Players in India, Source- http://www.apollohospitals.com/apollo _pdf/Apollo

_Investor _Presentation_August_2013.
7. IT and E-Business-
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In the ever-changing landscape in the health care industry, Apollo Hospital

management must take advantage of its IT and E-Business. It can be seen from
the business plan that a new project of USD $ 376.097 million investment plan to
upgrade
the
doctors
professionals
exchange
and
information
project
is
in
place
(Narasimhan, 2013).
Doing
so
will
enhance Apollo
Hospital E-business in the virtual

clinic for the future. A look at the
company's website indicates Apollo
Hospital offers a wide range of
online services including virtual nurse services. These strategies adopted
certainly appear to be consistent with the mission and goals of the company
(B.S, 2014). This alignment is to better serve the patients and expand the
medical service sector (Appendix -2). Failing to do so, Apollo Hospital will face
serious competition and the end result is a loss of business and patients. Future
damage will be loss of experience doctors and staff to its competitors
(Medvarsity.com, 2014).
Task-BFigure: 11-A graphical representation of SWOT
Analysis Source: Mishra, 2005.
IntroductionIn this section, the overall objective of Apollo Hospital is to enhance and grow its
e-business to cater for the future of this industry. Areas of concerns include
Information Systems (IS) and Information Technology (IT) that will enable Apollo
Hospital to create added values and find new opportunities to its patients (Patra
et al, 2009). Such additional though costly will enhance and improve the hospital
capabilities against its competitors and serve the patients well (Mishra, 2005).
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The five analytical tools used by Apollo Hospital are:

1) SWOT Analysis
Using the SWOT analysis, Apollo Hospital can effectively gauge, the challenges
in enhancing its strengths and opportunities while handle its weaknesses and
threats effectively. Obviously it is not an easy task because the medical industry
is evolving all the time (Mishra, 2005). As shown in Figure: 12 SWOT: Apollo
Hospital, is able to enhance its effectiveness in its strengths, the opportunities
are chances that Apollo Hospital must seize to consolidate its position in Chennai
(Apollo hospital-2013).
Strengths
Weaknesses
The first hospital in India to use
telemedicine
Strong pharmacies network of
track the sale of medicine and
Apollo hospitals, both in the
care employees to as compared
with Chennai
Pharmacies are also located
to developed countries
High barriers of entry
new/latest medical equipment

Lack Investment to increase the
Efficient administrative storing

Fast
downtime
for
retrieving
patients data
supply chain management

No comprehensive use of IS/IT
in the supply chain management
Able to invest heavily in latest

medical equipment
to
additional use of IS/IT in the
data
control of medical inventory

Lack of knowledgeable health
hospital and at strategic outlets
countrywide
The need to have a system to
Invest in the latest medical
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technologies
Adopt the Institution of Health

insurance which benefits both,
hospital and patients

Opportunities
Threats
Potential growth in the industry

Increase in the growth of
Major head on competition from
overseas patients to India
Fortis
Guaranteed
cost without success

High maintenance cost for IS/IT
Hacking/virus attack issues to
personal data
Health care competition from
(medical tourism)
New technology in the industry
to aid expansion in treatment of
patients through use of highly
sophisticated medical equipment

Increase in the use of IS/IT in
the industry
Laws are relax for the import of
medical equipment
Apollo Hospital education
other
high
countries.
investment
(Medical
Tourism Continues to Flourish as

U.S-2014)
centers to aid upgrade the skills

and knowledge of doctors and
nurses
Use of IS/IT to promote its ecommerce, m-commerce, and
website
Figure: 12 Apollo Hospital- SWOT Analysis
2) Porters five forces analysisBased on Porters Five Forces analysis, the key objective for Apollo Hospital is to
achieve its objectives: patients satisfaction and quality health care resulting in
positive revenues. Specifically more attention must be spent in its effort to push
for m-commerce in the industry. Although cost will be a factor, the positive
outcome outweighs its cost factor (Manjunath, 2007).
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A. Threat of new entrants

Apollo Hospital has advantages because of the high entry barriers to this
industry. Therefore, the hospital should leverage on this to exploit the market
through its m-commerce investment. Although its nearest competitor, Fortis also
has the same situation, Apollo Hospital can edge by committing more funds to
hire highly skilled employees to strategies its future plans (Investor presentation
Aug-2013).
In addition, more emphasis must be placed on training the doctors and medical
personnel to be handy handling the m-commerce. Training on a regular basis will
also enable Apollo Hospital to ensure quality over quantity outcome (Apollo
hospital-2014).
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Figure: 13 Porters Five Forces. Source:-http://hbr.org/2008/01/the-five-competitive-forces-thatshape-strategy/ar/1.
B. Threat of substitute products or services

Two important considerations in this category are the need to ensure continuous
new quality medical services and the threat from its immediate competitor Fortis
(Fortis healthcare ltd. March-2014). Another underlining consideration is the cost
of maintaining such operations. Therefore, it is paramount that Apollo Hospital
Pharmacy network will enable the hospital to have a competitive advantage over
its current competitors. In turn, this will lower the cost of operations, saving pass
on to the patients (Fortis healthcare ltd. March-2014).
Substitutes, or alternative health services, include:
i. Public Hospital:
One of the major direct competitors is the public hospital in Chennai
although the quality of public hospital is lesser than private hospital;
nevertheless there is an imminent to the market because patients can
switch to public if there is a need to. Around sixty to seventy percent of the
public hospital still needs government support to keep it running efficiently
(Harvey, 2012).
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ii. Use of Technology:

Using of technology will leads to E-Technology, which should be the aim of
Apollo Hospital. The efficiency of E-Technology will save cost and result is
a faster way to get information and data on a timely basis (Webster, s.,
2014). Another area where technology used is the Mobile Health, which
allows patients to interact with hospital on their health status. It is good to
be able to access although cost might be a factor if there is insufficient
numbers of patients using this method (Harvey, 2012).
C. Bargaining power of customers/(buyers or patients)Apollo Hospital main patients are usually the middle income or higher. As such,
the management must be able to provide higher quality of medical care
(Govindarajan and Ramamurti, 2013). Although the public hospitals are available,
public servants can use private hospital services with added payment. As such
the role of private hospital is greatly in demand Thus, the demand exceeds
supply resulting in shortages. This is where the private hospital plays an
important role.
D. Bargaining power of suppliers
The two main suppliers that greatly affect Apollo Hospital situation is the supply
of medicine and equipment. As there are many suppliers for the medicine, the
bargaining powers of suppliers are less. It is also true for the suppliers of medical
equipment. However, if such suppliers approach the retail pharmacy direct, they
may be in a better position (Porter, 1979).
E. Intensity of competitive rivalryThe intensity of competitive rivalry in the industry is very small for Apollo hospital.
Generally speaking, there are not many hospitals in a given area. Even if they
are, they will provide different types of products and services to the people
(Porter, 1979).
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3) McFarlans Strategic Grid-
Figure: 14 McFarlans Strategic Grid,Source:

http://www.12manage.com/description_strategic_grid_it.html
Based on the McFarlans strategi grid, Apollo Hospital should be focused on the
High (impact on business operations) and High (impact on strategy). This allows
the management to plan high emphasis on the IS/IT in the hospital.
Major focus areas include:
Use of Electronic clinical notes/electronic methods to record patient
data/information
Efficiency through the use of IS/IT for management and operations
Faster response to lab results and evaluation by doctors and team of
experts
Increase in the use of IS/IT and use of medical robotics
Enabvle cost saving in operations and increase in productivity
Minimise the use of paperwork through electronics communication in Ecommerce and M-commerce
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Faster way to dispense medicine to patients through the DSS (Decision

Support System)
4) Theory Application: PESTELC AnalysisPESTELC as developed by Francis J. Aguilar in the 1967 is for companies to
ensure that they cover the broad areas of politics, economics, social, technology,
environment, legal and culture so that they can compete in the market (Scholes
and Johnson, 2005).
i. Political Factors
Despite being the biggest democracy country in the world, the bureaucratic
process is hindering the political will of the government. Apollo Hospital has to
work within the constraints of such system. According to the World Yearbook of
Education (Education in Times of Transition -2013), India scores 6.6 out of 10.
(Appendix 3)
Figure -16, PESTELC Analysais
Figure-15. PESTELC Analysais, Source: http://www.abilitysuccessgrowth.com/2011/12/pestelanalysis-snapshot-of-your-world-2/
ii. Economic Factors
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Apollo Hospital should be mindful of the followings:
National growth (GDP)

Market size
Lack of government spending
Medical Tourism
The management must target the healthcare IT market, which is worth U$78.6
billion, an increase from U$45 billion in 2008 (Ibef.org, 2014) .The current rate of
this industry is about 3.6 percent annual (Ibef.org, 2014).
Fig-16.
Investments
in
the
Health
Care
Industry
Source-
http://www.ibef.org/industry/healthcare-india.aspx
iii. Social factors

Through the use of social public interaction, Apollo Hospital can use such
measures to aid its social obligations.
Currently, the Apollo Hospital IT service is able to:
Add on quality on specialist heath care
Track survey from patients response (Apollohospitals.com, 2014)
iv. Technological factors23
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The use of IS/IT for M-commerce is the right direction for Apollo Hospital to take
for its long-term objectives. It is also a source of revenue for future expansion
(Somvanshi, 2011)
IS/IT aids the incoming flow of patients to the hospital resulting in

higher revenue
Use of Cyber knife, surgical Robotic enables better quality patient care
Technological advances in medical field helps to get faster and better

results
Development of technology, patents and licensing protects the hospital

competitive advantages
Developing innovative technologies are needed to earn a significant
revenue stream.
Advancements in technology such
Technology access, licensing, patents (Apollohospitals.com, 2014)
v. Environment factors
To effectively handle the sanitation and waste treatment and used

medical materials
Emergence of Superbug
Good economic growth for the medical industry in 2007 ($34 billion) to
2012 ($77 billion)
To expand and build additional hospital beds, up by 450,000 in 2010,
There are rapid improvements in technology being used in the

healthcare sector
vi. Legal factors
To push for medical industry deregulation
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Increase in allocation of budgets for medical industry
Focus on rural healthcare
Provide safety net for poor under the Health Insurance
Exemption/concessions for import duties for medical equipments and

supplies
Lower taxes for FDI in medical industry
Promote and provide incentives for investment in healthcare.
To extend visa for international medical patients
vii. Culture factors
To be able to handle international medical patients
To handle the international difference in medical practices
Able to provide step-down care for patients
To provide close to international standards in health care
5) Theory Application: Michael Porters Value Chain AnalysisRightfully, it is a strategic move for Apollo Hospital to apply the Michael Porters
Value Chain Analysis because this theory takes into the account of the whole
process of hospital operations. By being able to efficiently carry out the process,
the patients will benefits at the end of the process (Prakash, 2010), Thus the
outcome will enable Apollo Hospital to have added competitive advantages over
its nearest rivals.
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Figure 17: Porters Value Chain
Both, the primary and secondary activities carry significant factors for Apollo
Hospital. Firstly, the primary activities enable the hospital to concentrate its
business directly to patient care at all times. The design and operations of the
medical care must be geared towards the ultimate recovery of patient care.
Using advanced technology coupled with quality and skilled medical personnel
will add the process. In addition, the pharmacy division offering the medicine
must also take advantage of the technology to consolidate the process (Prakash,
2010).
Another area of importance is to make sure the staff must be reminded of its
company mission that is Our mission is to bring healthcare of international
standards within the reach of every individual Develop enthusiastically satisfied
customers all time ". Doing so, ensure that quality customer services are
maintained at all times (Prakash, 2010).
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Under the secondary activities, the major areas are HRM (Human Resource
Management),
R&D
(research
&
development),
Financial
Management,
Education Marketing and Advertising. These are mostly internal attributes that
when done effectively will bring results to Apollo Hospital, Therefore, the
management must strive to inculcate dignity and mutual respect between staff to
ensure a healthy and wonderful working environment of world-class (Scholes,
2005).
Such attributes include:
Health care benefits to all staff regardless of level of entry
Periodic training for all staff
Continuous upgrade of organizational activities for all staff (Scholes, 2005)
Proposed strategy (5- analytical tools)
Work closely with the Indias medical board to upgrade its currency in
the industry
Devise improvement to the current IS/IT development to challenges
the future in terms of customers services and medical treatment

To be efficient in implementation to lower cost so that more revenues
will be realized
To provide a first class hospital environment to patients
To develop a 5-year plan and 10 year plan to target specific goals for
the hospital and stakeholders.

More demand for low-cost quality health care services
Tailor to handle special medical needs in disease control
To increase in specialist care treatment nationwide
Task-C-
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1. Apollo hospital mobile vision and Objectives

Based on the recent development in the medical industry, Apollo Hospital CEO,
Dr. Reddy must decide the next course of action for the hospital. As the Mcommerce is fast picking up in India, Apollo Hospital must redefine its vision for
M-commerce (Apollo Hospital Enterprises-2014).
A suggested M-vision theme by the author should be, Healthcare Anytime
Anywhere
ObjectivesI.
II.
Become leader in medical IS/IT

Enhance
the
customer/patients
III.
satisfaction
Increase revenue by 10% annually by
IV.
the help of M-commerce

Recruit trained and retain top-notched
doctors and nurses.
In addition, Apollo Hospital should continue to

work closely with Tele Triage, a solution
company that specialized in medical patient heath care (Himssanalyticsasia.org,
2013).
Through the collaboration, the service provider can provide a structured medical
approach to the overall operation efficiency and effectiveness of the hospital. It
approach of low-cost, High-quality innovative healthcare solutions is targeted at
M-users. The use of the OTC (over the counter) services is also another area
that can tap the M-users on the society. This way, doctors help will only be
minimal when the ownership of getting the medicine is transfer to the patients.
It is through effective and visionary management thinking that M-commerce is
possible (Wickramasinghe, 2002). As a market leader in Chennai, Apollo Hospital
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is a front-runner in using M-commerce that is able to provide solutions for the 21 st

century (Wickramasinghe, 2002). The focus is on targeted on solution that
increases the M-commerce importance. The use of electronic medical record
(EMR) applications can surely aid the patients confidence. Study emphasized
the way Apollo Hospital should use the M-commerce to hedge its competitive
advantages. In the long run, the hospital should adopt a wireless environment
mobile Internet (Wickramasinghe, 2003).
Another strong evidence is that patients information should be given on a timely
basis, anywhere, anytime without failed. The use of PDA is another added
advantage in the medical industry as compared to the paper work generated
(Brody, 2001).
The main advantages using PDAs are:
System in place - Complete and standardized work.
Better efficiency faster response
Diagnostic checks - More interventions
Patients satisfaction Better and faster results
Work flow Higher productivity
A word of cautious is that sensitive information may be violated if the security

levels are not foolproof (Coursaris et al., 2002). Coursaris et al., 2002 rightfully
pointed out the privacy protection is still paramount.
2. The virtual clinic-
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The virtual clinic is one further exciting part of the M-commerce. Apollo Hospital
should be working on this for the future in the medical industry. This type of
approach
will
definitely
help
reduce
operating
cost
in
the
industry
(Apollohospitals.com, 2014).
3. M-Health Value Proposition

As patients demand increase, so will the M-Health value proposition. Time is
essence in this aspect, so Apollo Hospital must invest financial to succeed
(Coursaris and Hassanein 2002).
Areas are:
Connectivity Needs:
The importance of connectivity is paramount to the hospital because of the
physical environment in Chennai. The wireless network system is evolving
and will definitely take time to mature.
Communication Needs:
To connect is to succeed. Therefore the hospital must tailor its operations
to communication needs by the patients. Both parties will use the
information flow effectively.
Information Needs:
Another important area is the information needs by patients. Therefore,
the database used by the hospital must be up to date and reliable. Thus,
the M-commerce must be applicable to the hospital.
Entertainment Needs:
Users who want to switch their mobile devices to obtain useful solutions,
entertaining and practical, such as games or access to information
leisurely. From this demand aimed at consumers, it does not apply to
health care.
Commerce Needs:
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Two main variables are obliged to allow the mobile phone buyers to
implement e-commerce transactions m: display data / government; and a
remote component installation. The value of the purchase in remote parts
emerging from the comfort it provides from.
To display, mobile customers cannot force the coins / bills to make a point
to buy physical (Eg. from candy machine), buy computer products, (eg,
purchase of a remote site), or actually paying bills, (for example, mobile
phones and Bill presentment contribution). While the use of remote utilities
can encourage strengthening of shares to the vendors of the treatment
center, the requirements by means of remote utilities will doubtlessly be
connected to a arrangement of network management in place inventory in
general.
According to Reddy (2002), the notification services are paramount to both
patients and medical service providers like Apollo Hospital. They are:
Critical laboratory alerts
Critical trend alerts
Dynamically-adjusted alerts
Exception condition alerts
Medication alerts:
M-health initiative is only useful if M-commerce is used effectively. Based on the
doctors/physicians using the relevant information, the flowing classification will be
added-value portfolio for Apollo Hospital (Ammenwerth, 1999):
Medical knowledge
Mobile documentation
Patient information
General information
4. M-Health ChallengesWhile the positive use of M-commerce is evident, there are also concerns as to
how patients information is protected (Coursaris and Hassanein 2002).
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Key concerns include:
Privacy protection as highlighted in the use of electronic privacy (Agranoff,
1993)
Security protection and application as the need to keep patients records
properly (Kalaja, 2000).

Reliability to use as time is essence when abstracting the information
(Nielsen, 2000)
Faster download times for doctors/physicians to get the data required
(Cole, 2001).
Lower cost of using such applications as to saving versus time to get the
data.
Usability of information for all parties concerned including patients
(McGinity, 2000).
5. M-Health ApplicationsAs an effective leader in the medical field, Apollo Hospital must engage actively
in the M-Health areas such as:
Able to get real-world applications intact
Able to get real-time application ongoing
Effective communications for both parties (hospital and patients)
Use of Digital Assistant Support to work on patient database applications
Able to integrate Healthcare applications in areas such as: ER:

Emergency Rescue Department, Patient order entry, Medicine ePrescribing, Patient point-of-care, Clinical trial processing, Billing and
Administration, Patient information processing and Update of information
of patient (Cole, 2001).
As shown in Fig 18, Apollo Hospital must be willing to commit financial
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investment into the process so that it can compete effectively. In US, almost
ninety-five percent of healthcare practitioners are using wireless devices to
operate effectively (Anon, 2013)
Figure: 18. A Proposed Mobile e-Health Model to accelerate Healthcare delivery Importance
6. The Mobile Visions Fit with the M- Commerce FrameworkTo successful carry out the use of M-commerce for Apollo Hospital, there are
important considerations that the management must handle.
I.
Patients perspectives
The number one priority is to ensure that patient recovery. As patients are also
tech savvy; the burden is on the hospital to keep up with patients demands. As
the mobile/wireless usage is still in the infant stage, the hospital must continue to
invest in this technology to get the maximum outcome.
II.
Hospital: Management perspectives
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As a leading hospital, the management must be willing to commit financial

investment to ensure the development of M-commerce, including the mobile
wireless solutions take place according to their plan. From the Apollo
management, the initial investment must be significant so that the business
model can be achieved (Apollohospitals.com, 2014)
III.
M-Commerce portfolio
The success of M-commerce is paramount because the medical field in India is

developing rapidly (Apollohospitals.com, 2014). Therefore Apollo Hospital must
design a robust M-commerce solution to handle the ever-changing landscape.
The issue of IS/IT will enable Apollo Hospital to specifically hedge its competitive
advantages to advance its operations.
IV.
Relevance and Resistance from Patients/Medical staff
As with any business, the resistance from patients and medical staff on new MCommerce may be real. As such, the management must have a systematic
programmed to inculcate all parties to adopt such progress (Agranoff, 1993).
As highlighted by Dr. Brian Yemen at Hamilton Health Sciences on the demands
on radiologists, he stated that, the possibility of transmitting radiology reports
between hospitals and physicians on-demand is exciting. It will mean less time
and travel for busy doctors, but more importantly, it will mean faster turn- around
and quicker results for patients. This is indeed a positive statement to reflect on
the importance of technology usage.
As for the overall assessment of M-commerce, the signs shown are positive to
move forward. The result is lower cost in the long run through investment and a
higher quality healthcare approach.
The success of M-commerce through the mobile/wireless solutions adopted will
give the industry a higher and better competitive edge than others in the market.
Therefore, if Apollo Hospital invests for the future, then the quality healthcare will
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rings in more revenue for the hospital.
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Task-D-
1. Impact of Social Networking on E-Business

Without a doubt, social networking on E-Business is here to stay. Through
education, proper dissemination of information, and rules of usage, social, the EBusiness will flourish.
As this is a new phenomenon in the industry, the lingering question is that is it

stills a good investment for the future?
From the way IS/IT has progress, the bet is that this is the business for the future
(Kalaja, 2000). When IS/IT is carried out correctly and responsibly, the
exponential growth is great. However, there is also negative outcome if the
intended is not clear more detail in see Appendix-4.
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Fig-19. Social media, Source-http://socialmediatoday.com/syed-noman-ali/608781/social-mediagood-thing-or-bad-thing
1. CompanyPositive impact
Social networking on e-business

Efficiencies resulting in Revenue Growth such
networks increase the productivity in the medical
business regardless of size.

Without a doubt, E-businesses gain more efficiency
than
non-IS/IT
approach.
(Lovering,
2014).
Therefore, Apollo Hospital should be able to

compete directly with all its competitors in the
region especially against Fortis (Lovering, 2014)
Negative Impact
Many studies have shown that the widespread use

of social media can actually be addictive to users.
During their day, they feel something to write on
their site or check out the other posts, because it
has become an important part of our lives

Nucleus Research highlighted that 1.5% of work
productivity was loss in office, a very high number
to start with. Another source, Morse stated that
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US$2.2 billion were lost on British companies
(Lovering, 2014).
2. Customers/Patient

The increased in social networks also
enable friends and relatives to get in tune
with the rest of the users. Through such
awareness,
the
usage
will
expand
exponential resulting in greater awareness

Positive impact
(Noman, 2014). The masses of users will

definitely be able to identify with the
market The case of the rape on the
medical student in New Delhi is a case in
point (Social Media@ NYUPraha, 2013).

The use of social networks has opened
new doors and opportunities to the
markets. Apollo Hospital must make use
of such platform to engage both patients
and
stakeholders
to
crease
bigger
opportunities for growth (Klein, 2008). The

management must engage and continue
to create potential business growth. The
use of customized applications in the
medical industry will enable the patients to
feel positive and happy with the quality
medical services provided (Klein, 2008).
The social networking site to encourage

people to be more open about their
Negative Impact
personal lives. Because of the intimate
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Student ID-1209675
details of our lives can be registered

easily, users easily overlooked filters they
can use when talking about their private
lives. Moreover, what they write is still
available indefinitely (Jung, 2014).
3. Employees

The increased in social networks also enable
friends and relatives to get in tune with the rest of
Positive impact
the
users
(Webster,
2014).
Through
such
awareness, the usage will expand exponential

resulting in greater awareness. The masses of
users will definitely be able to identify with the
market.
Feedback is almost instant in the use of such
technology. It is also a great platform for the
exchange of information in the market. As for the
medical suppliers, the use of positive and effective
communication will enable the users to be aware
of the message posted (Webster, 2014).
This may become serious problems if employees

spend time using the technologies for personal
use rather than work based. In the long run, poor
performance from them will be the end results.
Therefore,
the
hospital
management
must
constantly remind staff on the proper use of IS/IT

in the work place (Lovering, 2014).
As shown in many reports, (Cohen, 2014),
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Advertisements can be a double edge sword.
Negative Impact
People, in general do not take social media

seriously although it is a cheaper platform to
advertise (Lovering, 2014). Therefore, using Ecommerce will be a better choice for Apollo
Hospital to succeed rather than using social
media. However, due to cost, the hospital must
make a final decision on its application
ConclusionIn conclusion, the hospital has been very successful in recent years. Its
emphasis to update its IS/IT and its applications have enable Apollo Hospital to
provide quality medical care services to its patients.
More importantly, the hospital continues to invest and increases its capacity to
cater to the ever-changing medical landscape for the future.
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49. Top Companies in India by Market Capitalization -2014.Avaliable

fromhttp://www.moneycontrol.com/stocks/top-companies-in-india/marketcapitalisation-bse/hospitals-medical-services.html>.
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Websites1. http://chennai.apollohospitals.com/.
2. http://www.apollohospitals.com/value_added_services.php
3. http://www.apollohospitals.com/news_detail.php?newsid=100
4. http://www.wipro.com/documents/the-mHealth-case-in-India.pdf
Appendix -1i.
Suppliers /Stakeholder: This is the company that provides the back-end

of a health care system to provide supplies ranging from hospital beds to
ii.
the drug, all that is needed to address the needs of patients.

Providers: This is the organization's mission as personal happiness, and
they're in front of a health care system. Each target market for their
patients, providing expertise and support in the course of treatment
iii.
needed (Schwartz, 2002).

Patients: This is the party responsible for paying the health care provider
when using their services. Watch this high level of support in the market
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understand the structure of the industry of international health care by

eliminating the specific details involved in any specific country.
Other Apollo Hospitals In Chennai(India) Apollo Specialty Hospitals

Apollo First Med Hospital
Apollo Children's Hospital
Apollo Specialty Hospitals, Vanagaram (Apollo hospital, 2012)
Apollo Hospital, Chennai Services giving to the patient-
Oncology,
Orthopedics,
Neurology and
Neurosurgery,
Head and Neck surgery
Reconstructive and
Plastic surgery
Apollo Pharmacy
Apollo Hospital, Chennai Services giving to the patient-
Oncology,
Orthopedics,
Neurology and
Neurosurgery,
Head and Neck surgery
Reconstructive and
Plastic surgery
Apollo Pharmacy
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48
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Appendix 2Apollo Hospital: CriteriaI.

II.
To have a commitment to operating and investment prudently.

Appear to have a significant advantage compared with competitors for
patient safety, clinician support, physician recruitment, and competitive
III.
marketing for both consumers and nurse recruitment.

Has almost fully automated / medical records paperless when they made
IV.
their IT applications on the basis of most inpatient care.

As one of two starts to evaluate their data for care delivery process
V.
improvements or have documented significant improvements in this area?.

Have made investments in the reach of most hospitals and recognize the
strategic value of improving patient care with the EMR. (Electronic health
VI.
record).
Have begun to create strategic alignments with their medical staff to
effectively use information technology to improve safe environment for
VII.
patients.
It is positioned to provide data to stakeholders, such as payers,
government, physicians, consumers and employers, to support the
environment of electronic medical records and health information
VIII.
exchange.
Hospital retail pharmacies - Apollo has a vast network of drugs in India,
helping them accumulate more revenue and market share.
Appendix 3-
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(World Yearbook of Education: Education in Times of Transition 2013)

.
The Government's policy

Sponsorship
Funding and Initiatives
Government / political stability
Appendix-4-
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The first step in dealing with negative comments on social media is the focus of
your criticism you get. Negative reactions to the distinctive flavor and a perfect
alternative care:
I.
Straight up problem: A patient or referring physician had a problem with

the clinic or your administrator and has distributed a summary of what has
happened. This type of reaction draws your clinic in a particularly poor
light. As it can be, what kind of reaction may be particularly useful in the
detection of certification issues need to be managed and eliminated?
Results: Whether your reaction is a private message or open based on
how extensive the problem is and the number of individuals tested it. In
any case, if a genuine problem exists, steps should be taken to change it,
and patients should be informed that these steps, no doubt, and you 're
done listening to them. There will be times when feedback is the result of
an obvious problem as opposed to a real problem (for example, someone
just did not like the technique that you do a certain strategy.) I suggest that
this kind of opposition should be given a formal response, regardless of
the fact that just to say, " Thank you for bringing it to my review, but here 's
why we do it that way. "
II.
Feedback value: The best kind of feedback is the moment to accept that
sentiment comes with a suggested connection. Many patients, including
the most reliable, will use Twitter, Facebook or your online magazine to
propose courses that you can improve your office, or the management
thinking before. During this critics point out imperfections, it may be
particularly useful to get.
Results: feedback constructive forces a formal response. Implementation
of the project was to build understanding and trust by consistently
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responds to negative feedback with positive announcement. Remember to

thank those patients who took the time to provide you with a proposal.
III.
Strikes reasonable: In this kind of criticism, while the negative reviews it

cannot be supported, the issue that started it without merit. You, your
doctor or health care provider 's what you did wrong, and someone is
angry.
Results: Warranty ambush difficult to handle and clarified in light of the
fact that they do not like the cover at gatherings in various medical
establishments. Try to remember that kind of feedback, as barbaric as it
may be to check the contents, there is a premise of a genuine issue. It is
best to respond quickly and with a positive way. Thank commentators for
their feelings and reassure them that further steps are taken to amend this
problem or alleviate their problems.
IV.
Wildcat: This is a kind of stimulus negative criticism. The contrast

between a wildcat and a strike is reasonable wildcat no real purpose
behind the base 's anger at doctors. This input is a waste of everyone's
chances.
Results: This new type of negative criticism is the main class that is not
required for a response to recovery basis of the doctor's reputation. In all
honesty, it's just better not to react with wild cats. Kind of language is not
to criticize any media and are designed to trap you into an unnecessary
war damage and even scandalous. Skip this kind of criticism and pluck it
from your Facebook page.
52

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Submission Date: -1st May, 2014

MBA 4056- Managing Business Performance

Dr. Mathew Shafaghi

1st May 2014

Submission Date: -1st May, 2014

AbstractApollo Hospital located in Chennai, India is a high quality medical private

Submission Date: -1st May, 2014

Submission Date: -1st May, 2014

Submission Date: -1st May, 2014

Submission Date: -1st May, 2014

patients (see Appendix -1)

TASK A1. Company profile-

Submission Date: -1st May, 2014

Figure 2: Apollo hospital Business Evolution, Source-http://www.apollohospitals.com/apollo/Apollo

Submission Date: -1st May, 2014

Figure: 3 Organization flow chart, Source-http://www.medvarsity.com/dha.aspx

Medical insurance services

Telemedicine services and research,

Implementing educational programs and training

Medical business process outsourcing services

Third-party management, and business support services

2.Products and customers2.1 Apollo hospital, Chennai products Using CT Scan

Submission Date: -1st May, 2014

16 slice PET CT scan

management, and business support service (Finance.yahoo.com, 2014).

Submission Date: -1st May, 2014

Figure 4: Technological Excellence, Source-http://www.apollohospitals .com/apollo

Increase Productivity hospital

Figure-5.Business process. Source- http://www.promantra.net/Hospital_RCM_Services.html

Submission Date: -1st May, 2014

Figure-6: Apollo hospital Estimate Costs for Selected Procedures

Note-(*) Estimate pricing,

Submission Date: -1st May, 2014

Figure 7: Apollo hospital Cost Issues, Source-http://www.hindustantimes.com /lifestyle/wellness/patientsparadise/article1-951097.aspx

Just as a well-established reputation for quality products and service, flexibility

Submission Date: -1st May, 2014

Submission Date: -1st May, 2014

Figure- 9: Hospital & Medical Services

In Figure-9 and10 showing, It main competitor, Fortis Hospital, is also another

Figure-10 Leading Hospital Players in India, Source- http://www.apollohospitals.com/apollo _pdf/Apollo

Submission Date: -1st May, 2014

In the ever-changing landscape in the health care industry, Apollo Hospital

Hospital E-business in the virtual

Submission Date: -1st May, 2014

The five analytical tools used by Apollo Hospital are:

The first hospital in India to use

track the sale of medicine and

Apollo hospitals, both in the

care employees to as compared

new/latest medical equipment

Efficient administrative storing

supply chain management

Able to invest heavily in latest

additional use of IS/IT in the

control of medical inventory

hospital and at strategic outlets

The need to have a system to

Invest in the latest medical

Submission Date: -1st May, 2014

Adopt the Institution of Health

hospital and patients

Potential growth in the industry