EDISON, NJ, (February 20, 2020) – Avaap, an industry-focused technology management and advisory services consulting firm, today revealed new insights from a survey of CHIME CIOs on ERP trends in mergers and acquisitions.
The College of Healthcare Information Management Executives (CHIME) is the professional organization for Chief Information Officers and other senior healthcare IT leaders.
As merger and acquisition activity continues and digital transformation rises on the CEO agenda, healthcare CIOs are looking at their technology footprint, including ERP, and opportunities to optimize. Despite 45 percent of CIOs saying the largest challenge they anticipate when considering making a change to their ERP is organizational readiness and managing change, only 18 percent of organizations have a formal budget dedicated to change management. Additionally, 82 percent of respondents agreed the higher the integration of systems, the more money should be spent for business process review and change management.
According to a 2018 Benchmarking Report by Prosci, the global leader in change management best practice research, projects that use a structured approach to manage the people side of change are 96 percent more likely to realize project results. Avaap is the only authorized Prosci® training partner in the U.S., providing healthcare customers with a research-based approach to change management.
Additional insights from the Avaap survey of CHIME members revealed:
- 35 percent of health systems recently engaged in merger and acquisition activity
- The majority of healthcare organizations are considering an ERP upgrade or replacement in the next 18 months
- When considering updating their ERP, most CIOs are looking for operational and process improvements
“As healthcare organizations seek to embark on large-scale ERP implementation or upgrade projects, addressing the people side of technology change is critical,” said Adam Goldstein, Avaap general manager, Healthcare ERP. “Overcoming human resistance to change is often more challenging than the technical aspects of moving to a new ERP system. Organizations that account for the people-based challenges are more likely to produce better project or initiative results and get greater value from technology investments.”