SCMI: Hospital IT Development (A)

Shanghai Changning Maternity & Infant Health Institute (SCMI) was a mid-sized specialized hospital with a long history and a good reputation for service among the local population. After a regression period in the 1990s, it moved to a new site in 2002 and started to rejuvenate. In response to a dramatic increase of patients, SCMI continuously invested in its IT system from 2003 to 2006, with the aim of improving efficiency and quality of clinical service. The IT system quickly penetrated almost every department and earned positive early feedback. Before long, however, the frustration of front-line workers became apparent. Their major complaints included slow response times, mismatches between the IT system and working processes, lack of an alarm system, poor information sharing and integrating, and other problems. User satisfaction with the IT system reached a low point at the end of 2006. The front-line workers complained that the IT system caused more trouble than convenience in their daily jobs. The IT department and the management team believed their software vendor was responsible for the current problems and necessary remedies, but the vendor did not agree. Dr. Ma Jun, president of SCMI, had to decide whether or not to invest more money in IT upgrades in 2007. By focusing on the interaction between operation management and the IT system, this case seeks to provoke discussion of multiple variables influencing IT development.