Demand Management is key to the future of Health Information Technology
Posted Nov 05 2010 8:30am
Demand of today’s Health IT organization is unprecedented. We have finite resource and seemingly infinite demand. Your team must find a way to manage that demand.
Demand management is a methodology used to forecast and meet the demands of the industry. Successful demand management is a complex process that needs to integrate into every step of the process and is not limited to a few steps of installing the required software and statistical modules. Demand management enables companies to predict and prepare for market trends and thus changes in customer requirements, delivering more satisfying experience to the customers.
It is a continuous tussle for companies to maintain adequate inventory control across multiple channels (catalog, web stores, and kiosks) and meeting the demands of the customers. The companies that manage to supply in “perfect order” meaning that the delivery of the correct product is done on time, are able to meet the target sales and thus churn a profit. It is,however, not an easy task to predict the demand cycle of the customers and manage the supply chain accordingly.
To fulfilldemandmanagement processes, companies need to use advanced tools and technologies, methodologiesbased on predicted consumer trends, link different departments and resources, manage inventory and financialpredictions, and evaluate the patterns of consumer behavior. Advanced tools include quantitative analytics and modeling techniques to analyzethe problem areas and use the data to focus on the future requirements of customers.
AdvantagesOf Demand Management
·Forecast profitableproducts with the help of statistical techniques
·Use easy tools to tackle multidimensionalanalysis
·Synchronize and apply event-based global planning
·Synchronize data in real time using standard databases
·Enable smooth workflow base don best practices
·Collaboratemore efficiently with internal stakeholder as well as partners outside the company
Several actions have to be taken by companies before achieving effective demand management. This process includes analyzing the need for multiple inventory locations, reviewing the current demand management practices, employing strategies and technologies to develop and implement demand management processes, and much more.
The implementation of demand management involves process audit, model assessment, optimization of database, gap analysis, process optimization, and performance management. This helps uncover data that can be organized and utilized to eliminate redundancies, irrelevant data and produce more accurate data.
The basic importance and need of demand management is to control the timing and level of the supply and demand chain so as to help eliminate inaccuracies, reduce delivery times, and adapt to the changes required due to customer requirements. In these times of increasing pressure on companies for providing excellent customer satisfaction, it is a continuous challenge for them to increase revenue and profits.
Demand management is an ongoing process of reviewing and refining the infrastructure regularly to keep up with the changing market trends. Numerous forces, such as internal infrastructure, economic trend, and technological aspectsthat overlap, have to be balanced to move forward from the demand planning stage to demand management. It is time to take a more proactive approach and move demand management to higher levels of organization.