The Impact: People. Time. Money.

March 21, 2019 | Aged Care Finance

Providers are investing or modernising technology stacks, to meet the operational needs of our changing industry. The December 2018 StewartBrown Aged Care Financial Performance Survey reported that 42% of residential aged care facilities are operating at a loss.**

So where can you achieve operational efficiencies? Many organisations are reluctant to implement new software or technology for a variety of reasons including the cost, or the time and resources that it might take to implement new technology. In addition, training employees how to use it and the potential impact on employee engagement.

There is a cost to implementing new technology, both financial and non-financial. Including the impact on productivity from those involved in the implementation. But does the benefit outweigh the cost? What are the cons when selecting or switching to new technology?

Your people: No matter how great the vendor management process is, an organisation still requires adequate internal resources to ensure smooth delivery. For resources already at full capacity or not backfilling key staff, it may lead to incomplete testing or a delayed deployment.

Your money: It can be challenging for organisations to manage the overhead of implementing new technology. Considerations include assessment of the current processes and technologies and whether they are meeting the business needs. Understand how quickly after implementation should we see a return on investment?

Training Time: During the decision-making process consider the amount of time, the business would require to adequately train their employees to not only use a new system but also process changes. Depending on the level of change, this can represent a significant investment to realise a successful transition.

So what are the cons when selecting or switching to new technology?

Cost reduction: The cost of maintaining older software or “legacy technology” typically increases. For example, upgrades required to technology and, additional staff training. Consider also if the data available assists to make informed decisions is still relevant.

Will new software increase efficiency?

When a rigorous selection process supports your business processes a significant increase in efficiency can be realised. Advancements available in best of breed and contemporary technology platforms support automation and streamlining of processes that simply aren’t available with many legacy systems, which in the end justifies the costs of implementing new technology. Typically, modern technology provides granular and real-time reporting for real-time decision making which is essential for an industry with compliance and cost pressures.

Ultimately, it’s important for every business to consider the pros and cons of investing in new technology before making a decision to buy. To be successful in today’s market, Providers need to be agile, efficient, productive, cost-effective and lean. It can be difficult to achieve all of these at the same time but being able to meet the quality care needs of residents while managing and monitoring costs is essential for an industry struggling to meet the bottom line.

Please get in touch and let us help you with planning for your next investment in technology. For more information about Mirus Works! please click here or to connect with Sara Golding on LinkedIn, please click here. 

** Reference – Sector Financial Performance Report, December 2018, Stewart Brown