Skip to main content

Advertisement

Log in

Strategic Enterprise Resource Planning in a Health-Care System Using a Multicriteria Decision-Making Model

  • Original Paper
  • Published:
Journal of Medical Systems Aims and scope Submit manuscript

Abstract

This paper deals with strategic enterprise resource planning (ERP) in a health-care system using a multicriteria decision-making (MCDM) model. The model is developed and analyzed on the basis of the data obtained from a leading patient-oriented provider of health-care services in Korea. Goal criteria and priorities are identified and established via the analytic hierarchy process (AHP). Goal programming (GP) is utilized to derive satisfying solutions for designing, evaluating, and implementing an ERP. The model results are evaluated and sensitivity analyses are conducted in an effort to enhance the model applicability. The case study provides management with valuable insights for planning and controlling health-care activities and services.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. Note: Eigenvalues and eigenvectors are derived from the German word “eigen” which means “proper” or “characteristics.” In matrix algebra, an eigenvalue of a scalar matrix is a scalar that is usually represented by the Greek letter λ (lambda). An eigenvector is a non-zero vector, commonly denoted by the smaller letter x. All eigenvalues and eigenvectors satisfy the equation Ax = λx for a given square matrix A. Definition: Consider the square matrix A. It is called that λ is an eigenvalue of A if there exists a non-zero vector x such that Ax = λx. In this case, x is called an eigenvector (corresponding λ), and the pair (λ, x) is called an eigenpair for A.

References

  1. van Merode, G., Groothuis, S., and Hasman, A., Enterprise resource planning for hospitals. Int. J. Med. Inf. 73(6):493–501, 2004.

    Article  Google Scholar 

  2. Grimson, J., Delivering the electronic healthcare record for the 21st century. Int. J. Med. Inf. 64(2–3):111–127, 2001.

    Article  Google Scholar 

  3. Pedersen, M. K., and Larsen, M. H., Distributed knowledge management based on product state models: The case of decision support in health care administration. Decis. Support Syst. 31(1):139–158, 2001.

    Article  Google Scholar 

  4. Collen, M. F., A vision of health care and information in 2008. J. Am. Med. Inf. Assoc. 6(1):1–5, 1999.

    Google Scholar 

  5. Li, L. X., Benton, W. C., and Leong, G. K., The impact of strategic operations management decisions on community hospital performance. J. Oper. Manag. 20(4):389–408, 2002.

    Article  Google Scholar 

  6. Oddoye, J. P., Jones, D. F., Tamiz, M., and Schmidt, P., Combining simulation and goal programming for healthcare planning in a medical assessment unit. Eur. J. Oper. Res. 193(1):250–261, 2009.

    Article  MATH  Google Scholar 

  7. Kursters, R. J., and Groot, P. M. A., Modeling resource availability in general hospitals design and implementation of a decision support model. Eur. J. Oper. Res. 88(3):428–445, 1996.

    Article  Google Scholar 

  8. Jenkins, E. K., and Christenson, E., ERP (enterprise resource planning) systems can streamline healthcare business functions. Healthc. Financ. Manage. 55(5):48–52, 2001.

    Google Scholar 

  9. Newman, K., Towards a new health care paradigm, patient-focused care: The case of Kingston hospital trust. J. Manage. Med. 11(5–6):357–371, 1997.

    Article  Google Scholar 

  10. Davenport, T., Putting enterprise into the enterprise system. Harvard Bus. Rev. 76(4):121–131, 1998.

    Google Scholar 

  11. Klaus, H., Rosemann, M., and Gable, G. G., What is ERP? Inf. Syst. Front. 2(2):141–162, 2000.

    Article  Google Scholar 

  12. Motwani, J., Mirchandani, D., Madan, M., and Gunasekaran, A., Successful implementation of ERP projects: Evidence from two case studies. Int. J. Prod. Econ. 75 (1–2):83–96, 2002.

    Article  Google Scholar 

  13. Teltumbde, A., A framework for evaluating ERP projects. Int. J. Prod. Res. 38(17):4507–4520, 2000.

    Article  Google Scholar 

  14. Siau, K., Health care informatics. IEEE Trans. Inf. Technol. Biomed. 7(1):1–7, 2003.

    Article  Google Scholar 

  15. Soh, C., Kien, S. S., and Tay-Yap, J., Enterprise resource planning: Cultural fits and misfits: Is ERP a universal solution? Commun. ACM. 43(4):47–51, 2000.

    Article  Google Scholar 

  16. Botta-Genoulaz, V., and Millet, P.-A., An investigation into the use of ERP systems in the service sector. Int. J. Prod Econ. 99(1–2):202–221, 2006.

    Article  Google Scholar 

  17. Trimmer, K. J., Pumphrey, L. D., and Wiggins, C., ERP implementation in rural health care. J. Manage. Med. 16(2/3):113–132, 2002.

    Article  Google Scholar 

  18. Sia, S. K., Tang, M., Soh, C., and Boh, W. F., Enterprise resource planning (ERP) systems as a technology of power: Empowerment or panoptic control? Database Adv. Inform. Syst. 33(1):23–37, 2002.

    Google Scholar 

  19. Charnes, A., and Cooper, W. W., Management models and the industrial applications of linear programming, vols. 1-2. Wiley, New York, 1961.

    Google Scholar 

  20. Onut, S., Kara, S. S., and Isik, E., Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company. Expert Syst. Appl. 36(2):3887–3895, 2009.

    Article  Google Scholar 

  21. Saaty, T. L., The analytical hierarchy process. McGraw-Hill, New York, 1980.

    Google Scholar 

  22. Saaty, T. L., Decision making for leaders: The analytical hierarchy process for decisions in a complex world, 3rd edition. RWS, Pittsburgh, 1999.

    Google Scholar 

  23. Earnshaw, S. R., and Dennett, S. L., Integer/linear mathematical programming models: A tool for allocating healthcare resources. PharmacoEconomics. 21(12):839–851, 2003.

    Article  Google Scholar 

  24. Kwak, N. K., and Lee, C. W., Business process reengineering for health-care system using multicriteria mathematical programming. Eur. J. Oper. Res. 140(2):447–458, 2002.

    Article  MATH  Google Scholar 

  25. Epstein, D. M., Chalabi, Z., Claxton, K., and Sculpher, M., Efficiency, equity, and budgetary policies: Informing decisions using mathematical programming. Med. Decis. Mak. 27(2):128–137, 2007.

    Article  Google Scholar 

  26. Oddoye, J. P., Yaghoobi, M. A., Tamiz, M., Jones, D. F., and Schmidt, P., A multi-objective model to determine efficient resource levels in a medical assessment unit. J. Oper. Res. Soc. 57(10):1173–1179, 2006.

    Article  Google Scholar 

  27. Liberatore, M. J., and Nydick, R. L., The analytic hierarchy process in medical and health care decision making: A literature review. Eur. J. Oper. Res. 189(1):194–207, 2008.

    Article  MATH  Google Scholar 

  28. Wilson, R. M., and Gibberd, R. W., Combining multiple criteria for regional resource allocation in health care systems. Math. Comput. Model. 13(8):15–27, 1990.

    Article  MATH  Google Scholar 

  29. Flessa, S., Priorities and allocation of health care resources in developing countries: A case-study from the Mtwara region-Tanzana. Eur. J. Oper. Res. 150(1):67–80, 2003.

    Article  MATH  Google Scholar 

  30. Cardoen, B., Demeulemeester, E., and Belien, J., Sequencing surgical cases in a day-care environment: An exact branch-and-price approach. Comput. Oper. Res. 36(9):2660–2669, 2009.

    Article  MATH  Google Scholar 

  31. Arenas, M., Bilbao, A., Caballero, R., Gómez, T., Rodríguez, M. V., and Ruiz, F., Analysis via goal programming of the minimum achievable stay in surgical waiting lists. J. Oper. Res. Soc. 53(4):387–396, 2002.

    Article  MATH  Google Scholar 

  32. Lee, S. M., AB:QM. Allyn & Bacon, Boston, 1996.

    Google Scholar 

  33. Anderson, D. R., Sweeney, D. J., and Williams, T. A., The management scientist V 6.0. West Publication, St. Paul, 2004.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to N. K. Kwak.

Appendix

Appendix

Table 9 Excel-based AHP results of criteria and resources in ERP strategy

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lee, C.W., Kwak, N.K. Strategic Enterprise Resource Planning in a Health-Care System Using a Multicriteria Decision-Making Model. J Med Syst 35, 265–275 (2011). https://doi.org/10.1007/s10916-009-9362-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10916-009-9362-x

Keywords

Navigation