Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of healthcare products and services. Below are some ideas the IT department has developed for supporting these strategic goals: 1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the industry average for employee healthcare premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least $30/employee/year for full-time employees over the next four years. This application would include the following capabilities: Allow employons to rogister for company-sponsored recreational

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter14: Marketing Channels And Supply Chain Management
Section14.1: Taza Cultivates Channel Relationships With Chocolate
Problem 1VC
icon
Related questions
Question
Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety
of healthcare services across the globe. MYH has more than 20,000 full-time
employees and more than 5,000 part-time employees. MYH recently updated its
strategic plan; key goals include reducing internal costs, increasing cross-selling of
products, and exploiting new Web-based technologies to help employees,
customers, and suppliers work together to improve the development and delivery
of healthcare products and services. Below are some ideas the IT department has
developed for supporting these strategic goals:
1. Recreation and Wellness Intranet Project: Provide an application on
the current intranet to help employees improve their health. A recent study
found that MYH, Inc. pays 20 percent more than the industry average for
employee healthcare premiums, primarily due to the poor health of its
employees. You believe that this application will help improve employee
health within one year of its rollout so that you can negotiate lower health
insurance premiums, providing net savings of at least $30/employee/year
for full-time employees over the next four years. This application would
include the following capabilities:
• Allow employees to register for company-sponsored recreational
programs, such as soccer, softball, bowling, jogging, and walking.
• Allow employees to register for company-sponsored classes and programs
to help them manage their weight, reduce stress, stop smoking, and manage
other health related issues.
• Track data on employee involvement in these recreational and health-
management programs.
• Offer incentives for people to join the programs and do well in them (e.g.,
incentives for achieving weight goals, winning sports team competitions,
etc.).
Transcribed Image Text:Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of healthcare services across the globe. MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. MYH recently updated its strategic plan; key goals include reducing internal costs, increasing cross-selling of products, and exploiting new Web-based technologies to help employees, customers, and suppliers work together to improve the development and delivery of healthcare products and services. Below are some ideas the IT department has developed for supporting these strategic goals: 1. Recreation and Wellness Intranet Project: Provide an application on the current intranet to help employees improve their health. A recent study found that MYH, Inc. pays 20 percent more than the industry average for employee healthcare premiums, primarily due to the poor health of its employees. You believe that this application will help improve employee health within one year of its rollout so that you can negotiate lower health insurance premiums, providing net savings of at least $30/employee/year for full-time employees over the next four years. This application would include the following capabilities: • Allow employees to register for company-sponsored recreational programs, such as soccer, softball, bowling, jogging, and walking. • Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, stop smoking, and manage other health related issues. • Track data on employee involvement in these recreational and health- management programs. • Offer incentives for people to join the programs and do well in them (e.g., incentives for achieving weight goals, winning sports team competitions, etc.).
2. Health Coverage Costs Business Model: Develop an application to
track employee healthcare expenses and company healthcare costs.
Healthcare premiums continue to increase, and the company has changed
insurance carriers several times in the past 10 years. This application should
allow business modeling of various scenarios as well as tracking and
analyzing current and past employee healthcare expenses and company
healthcare costs. This application must be secure and run on the current
intranet so several managers and analysts can access it and download
selected data for further analysis. The new application must also import data
from the current systems that track employee expenses submitted to the
company and the company's costs to the insurance provider. You believe
that having this data will help you revise policies concerning employee
contributions to healthcare premiums and help you negotiate for lower
premiums with insurance companies. You estimate that this application
would save your company about $20/employee/year for full-time
employees over the next four years and cost about $100,000 to develop.
3. Web-Enhanced Communications System: Develop a Web-based
application to improve development and delivery of products and services.
There are currently several incompatible systems related to the
development and delivery of products and services to customers. This
application would allow customers and suppliers to provide suggestions,
enter orders, view the status and history of orders, and use electronic
commerce capabilities to purchase and sell their products. You estimate that
this system would save your company about $2 million each year for three
years after implementation. You estimate that the system will take one year
and $3 million to develop and require 20 percent of development costs each
year to maintain.
Transcribed Image Text:2. Health Coverage Costs Business Model: Develop an application to track employee healthcare expenses and company healthcare costs. Healthcare premiums continue to increase, and the company has changed insurance carriers several times in the past 10 years. This application should allow business modeling of various scenarios as well as tracking and analyzing current and past employee healthcare expenses and company healthcare costs. This application must be secure and run on the current intranet so several managers and analysts can access it and download selected data for further analysis. The new application must also import data from the current systems that track employee expenses submitted to the company and the company's costs to the insurance provider. You believe that having this data will help you revise policies concerning employee contributions to healthcare premiums and help you negotiate for lower premiums with insurance companies. You estimate that this application would save your company about $20/employee/year for full-time employees over the next four years and cost about $100,000 to develop. 3. Web-Enhanced Communications System: Develop a Web-based application to improve development and delivery of products and services. There are currently several incompatible systems related to the development and delivery of products and services to customers. This application would allow customers and suppliers to provide suggestions, enter orders, view the status and history of orders, and use electronic commerce capabilities to purchase and sell their products. You estimate that this system would save your company about $2 million each year for three years after implementation. You estimate that the system will take one year and $3 million to develop and require 20 percent of development costs each year to maintain.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MARKETING 2018
MARKETING 2018
Marketing
ISBN:
9780357033753
Author:
Pride
Publisher:
CENGAGE L
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing