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Healthcare industry wasting millions on software, says report

15 January 2008

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Healthcare organisations are wasting millions of pounds each year by failing to exploit the full potential of the software systems they are paying for, reveals a report from West Trax, an IT consultancy specialist.

The healthcare industry is among 13 different sectors named in the report, which says companies are using less than half of the standard software code they pay for, “wasting millions of pounds each year as a result due to it sitting there doing nothing.”

West Trax undertook a software applications cost/benefit study, analysing data from 269 benchmarks in 13 different industry sectors.

West Trax found that users were typically failing to fully exploit the potential of the standard software functionality that was available in their systems.

Even in most of the “best practice” systems in the study, more than 50% of the standard software transactions that were relevant to the users’ businesses and available in their systems were not used.

Users pay licence and maintenance fees for this software, yet the West Trax report says that healthcare organisations are failing to convert these costs into business value.

At an IT conference last November, Steve Rogers, UK Managing Director of global software company SAP, challenged delegates to use their SAP assets more effectively. “I find it frustrating that the majority of you only seem to be using a modest slice of the software you have acquired,” he said.

West Trax