Lecture

IS3102

Business Domains Introduction

IS3102 Enterprise Systems Development Project AY 2013/14 Semester 1

Lecturer: TAN Wee Kek

Email: tanwk@comp.nus.edu.sg :: Tel: 6516 6731 :: Office: COM2/#02-56 Consultation: All consultations by appointment.

Learning Objectives

At the end of this lecture, you should understand:

The business domain of each project track.

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Enterprise Solutions Track

Healthcare

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Healthcare Defined

Healthcare refers to the diagnosis, treatment, and prevention of disease, illness and injury. The healthcare industry provides goods and services to treat patients We are only interested in the services.
Economy Primary Service Manufacturing

Tourism

Medical Tourism Public

Healthcare
Private

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Healthcare Defined (cont)

Healthcare services:

Public healthcare services are administered by the government as one of the core citizen services:

Not-for-profit basis. Public healthcare facilities are not necessary operated by the government.

Private healthcare services are operated by for-profit commercial companies.

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Medical Tourism

Medical tourism refers to the practice of traveling across international borders to obtain health care. Main reasons behind medical tourism are:

Availability Complex and advanced medical procedures/treatments are not available domestically. Necessity Accident and emergency evacuation. Quality Better healthcare standard in another country. Efficiency Cheaper and faster healthcare in another country (not necessary of better quality compared to domestic standard).

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Medical Tourism (cont)

According to Reuters (2009) With U.S. healthcare prices spiraling upward, more and more insurers and individuals are looking abroad for treatment. By some estimates, 650,000 Americans will check into foreign hospitals from Mexico to Thailand this year

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Public Healthcare in Singapore

Singapore has a universal healthcare system managed by the Ministry of Health:

Basic and essential healthcare services are provided at an affordable cost to the public. Individuals participate in a compulsory savings scheme known as Medisave to co-pay for government subsidized healthcare services. Additional Medishield insurance program as well as private medical insurance schemes are available. Primary healthcare services providers. Hospital services providers.
IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Healthcare services are delivered via a two-tiered system:

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Public Healthcare in Singapore (cont)

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Private Healthcare in Singapore

Commercial for-profit organizations that cater to the higher income families, expatriates and medical tourists:

For foreigners who do not enjoy government subsidy:

Difference in cost between government and private healthcare facilities is negligible. Private healthcare facilities are generally more popular due to better and faster services.

Expatriates typically rely on private health insurance. Increasingly more people are travelling to Singapore for specialist medical treatment.

Huge growth potential.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Private Healthcare in Singapore (cont)

Critical success factors:

Doctors and medical staff are well-trained. Majority of private hospitals are internationally accredited to be of a high standard. English is widely spoken. Many private healthcare providers have dedicated international patient centers.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Case Study of Raffles Hospital

Raffles Medical Group reported gross revenue in excess of SGD$300 million in 2012. Overview of services:

Located in the city center, 20 min from the airport. 24 hour emergency center. Full range of specialist, medical and diagnostic services. Raffles International Patients Centre:

Friendly Patient Relations Officers to assist international patients. Similar to private banking.

JCI accreditation.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Case Study of Raffles Hospital (cont)

Private hospital targeted at high-income families, expatriates and medical tourists:

The rooms at Raffles Hospital are outfitted to the standards of fivestar hotels Intimate and cozy, Raffles Hospital is the ideal sanctuary for rest and recovery Proud mamas can also commemorate babys birth with The First Step of Life by Best Imprezzione an individually hand crafted mould of babys hands or feet coated in gold singaporemotherhood.com

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Merlion Hospital

A luxurious world-class private hospital targeting wealthy individuals and medical tourists. Riding on the wave of the two new Integrated Resorts. Requires a world-class Hospital Information System:

Manage hospital functions. Cater to the needs of wealthy international patients.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Integrated Solutions Track

Tourism and Integrated Resorts

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Tourism Defined

Tourism is one of the key components in the service sector. Often associated with other relevant service industries such as transportation, hospitality and entertainment industries.
Economy Primary Service Manufacturing Transportation Entertainment Hospitality

Tourism

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Tourism Defined (cont)

Tourism involves:

Travelling for leisure and business purposes. Departure period between 24 hours to 1 year. Tourists travel for many reasons other than leisure and business:

Culinary tourism. Ecotourism. Medical tourism.

Tourists dont just sightsee:

Need to travel to the destination country and travel within the country Transportation industry. Need to rest and shower Hospitality industry. Need to watch shows and attend events Entertainment industry. Need to eat and drink Food and Beverage industry.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Tourism in Singapore

Ups and downs of the local tourism industry:

Between 2005-2007, visitor arrival and spending grew steadily. The year 2007 was the inflection point in the growth of the local tourism industry Visitor arrivals began to stagnant. Visitor arrivals decreased to a low of 9.7 million in 2009 against the backdrop of slower global economic activities and poor travel sentiments.

Singapore was also facing increasingly intense competition from other destinations around the region.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Tourism in Singapore (cont)

In December 2009,the government decides to develop two casinos and associated hotels and shopping malls to boast Singapores tourism industry:

River South District Tender awarded to United States based Empire Resorts and Entertainment Group. Coral Island Tender awarded to a local consortium led by Merlion Investment Holding.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Integrated Resorts

One-stop resort characterized by:

Dramatic architecture. Casino. Wide range of non-casino amenities to appeal to a broader audience other than gamblers:

Fabulous spas. High-end shopping malls. Dazzling shows.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Integrated Resorts (cont)

Suitability of Integrated Resorts in Singapore tourism landscape:

Many repeated tourists from regional countries who stayed for less than a day. Average length of stay (ALOS) less than 3 days. Leisure visitors typically come to Singapore for holiday or business also indulge in sightseeing, food and shopping. Top three tourists expenditure items in 2011were sightseeing and entertainment (24%), accommodation (20%), shopping (20%), and food and beverage (10%). Singapore does not have large-scale natural tourism assets and lacks major cultural heritage site. MICE (Meeting, Incentive, 9 Convention and Exhibition) visitors are increasing.
IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

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Integrated Resorts (cont)

An Integrated Resort combines everything under one roof:

Accommodation Luxury, upscale and mid-tier hotels. Shopping Large-scale luxurious shopping mall. Food Fine dining restaurants, casual dinning restaurants and even food courts. Sightseeing and entertainment:

World-class attractions. Quality entertainment shows. Casinos.

MICE Large-scale integrated convention and exhibition facilities.

IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

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Customer Relationship Management

Customer relationship management is key to the hospitality and travel industries:

Hotels and airlines have aggressive customer loyalty program to ensure repeated patronage. E.g., Hilton Hotels HHonors loyalty program and Delta Air Lines SkyMiles frequent flyer program.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Customer Relationship Management (cont)

An Integrated Resort requires an even more careful management of its customers across all properties:

On the one hand, the resort needs to prospect and manage high-net-worth casino rollers. On the other hand, the resort needs to cater for non-casino patrons who spend at other amenities:

Where does a customer like to stay? What does a customer like to eat? What does a customer like to shop?

Careful analysis of a customers spending pattern throughout the resort enables personalized marketing.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Customer Relationship Management (cont)

Objectives of CRM:

Create customer-centric culture and organization. Secure customer relationships. Maximize customer profitability. Align effort and resource behind most valuable customer groups. Uses database marketing and analytics tool to deliver great service that customers demand. E.g., visible service differentiation in restaurant:

Harrahs Entertainment:

Non-loyalty card and Gold customers have to stand in lines. Platinum customers stand in shorter priority queue. Diamond customers simply walk-in to the restaurant.
IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

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Customer Relationship Management (cont)

Identify Analysis Differentiate Feedback Loop Developing trust

Interact Customize Action

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Coral Island Resort

A luxurious world-class Integrated Resort targeting highnet-worth individuals. Requires a world-class Integrated Resort Management System to facilitate:

Integrated management of its properties, resources and customers. An effective customer relationship management strategy.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Q&A

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction

Next Lecture

We will dissect the project specification.

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IS3102 (AY 13/14 S1) Lecture 1 Business Domains Introduction