Vendor Selection

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Vendor Selection

• Farrokh Alemi, Ph.D.

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Objectives

• Model decision makers preferences
• Facilitate communication and documentation

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What is a model of values?

• Quantify preferences
• Higher numbers more preferred options
• Assumptions
• Decision makers have options
• Selection is based on preferences
• Preferences are based on attributes

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Additive Multi-Attribute Value Model
Overall Value V (A1) V (A2)   ... V (An)
Value on Attribute 1
Value on Attribute 2
Value on Attribute n
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Misleading Numbers

• Numbers approximate preferences
• Nominal scale
• Ordinal scale
• Interval scale

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Steps in Vendor Selection

1. Select process
2. Select attributes
3. Select cases
4. Rate vendor performance
5. Set priorities
6. Recommend action
7. Document action

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Step1 Select Process

• Who decides?
• What must be done?
• What judgments must be made?
• How can the model of the judgment be used?

• Administrator?

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Step1 Select Process

• Who decides?
• What must be done?
• What judgments must be made?
• How can the model of the judgment be used?

• Administrator
• Select a vendor for long term

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Step1 Select Process

• Who decides?
• What must be done?
• What judgments must be made?
• How can the model of the judgment be used?

• Administrator
• Select a vendor for long term
• Performance of vendors on several attributes

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Step1 Select Process

• Who decides?
• What must be done?
• What judgments must be made?
• How can the model of the judgment be used?

• Administrator
• Select a vendor for long term
• Performance of vendors on several attributes
• Model can document the decision

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the expert to introduce himself
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples of EHR that worked
  well and those that worked poorly
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2 Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes and do not interrupt

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Step 2. Select Attributes

• Introduce yourself and your purpose
• Be judicious about pausing
• Ask the experts to introduce themselves
• Start with tangible examples
• Ask directly for additional attributes
• Arrange the attributes in a hierarchy
• Always use the expert's terminology
• Use prompts that feel most natural
• Take notes, and do not interrupt

Do this with each committee member prior to
meeting
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Step 2 Select Attributes

• Do it again
• Start with list
• Solicit changes
• Record comments
• Avoid clicks
• Speak back to the entire group
• Maintain eye contact

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Step 2 Select Attributes

• Example attributes
• Easy to use
• Improve one or more business processes
• Most value for cost
• Fit with long term business strategy
• Vendor responsive to practice information needs
• Strong testimonies from prior users
• In use by other practice sites
• Compatible with existing systems

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Step 2 Select Attributes
Vendor A Vendor A Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 11,000/bed 15,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good

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Step 3 Prepare Test Scenarios

• Make a case to enter
• Cover extremes
• Check for multiple entry
• Ask for revision procedures

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Step 4 Vendor Performance

• Test all on same cases
• Check performance on each attribute
• Rate performance on each attribute
• Standardize ratings

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Step 4 Vendor Performance

• Average time to enter patient data
• 2 minutes
• Between 3 minutes
• 5 minutes

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Step 4 Vendor Performance
Vendor A Vendor A Vendor B Vendor B Vendor C Vendor C
Attribute Level Level Level
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 11,000/bed 15,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good

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Step 5. Rate Vendors on Single Attributes

• Double anchored assessment method
• 100 to best
• 0 to worst
• Rate the remaining levels

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Step 5. Rate Vendors on Single Attributes

• 2 minutes, 100
• 3 minutes, ?
• 5 minutes, 0

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Step 5. Rate Vendors on Single Attributes
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation Good Good 0 Excellent Excellent 100 Good 0

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Step 6 Set Priorities

• Assess ratio of importance
• Attributes are rank ordered
• Least important is assigned 10 points
• Rate how many times more important
• Standardized weights
• Divide by sum

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Step 6 Set Priorities

• If reputation is 10, how many more times is ease
  of use more important?
• How many more times is cost more important than
  ease of use?

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Step 6 Set Priorities

• Example Weights

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Step 6 Set Priorities
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0

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Step 7 Recommend Action

• Calculate weighted sum
• Recommend best score

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Step 7 Recommend Action
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0
Total 1.0 100.370.4 100.370.4 100.370.4 80.3100.2 80.3100.2 80.3100.2 100.4 100.4
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Step 6 Recommend Action
Vendor A Vendor A Vendor A Vendor B Vendor B Vendor B Vendor C Vendor C
Attribute Weight Level Level Rating Level Level Rating Level Rating
Ease of use 0..3 2 minutes 2 minutes 100 3 minutes 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 70 15,000/bed 0 0 9000/bed 100
Reputation 0.2 Good Good 0 Excellent Excellent 100 Good 0
Total 1.0 100.370.4 100.370.4 100.370.4 80.3100.2 80.3100.2 80.3100.2 100.4 100.4
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Step 7 Document

• What was selected?
• What was the process?
• Why was it selected?
• What contingencies were thought through?

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Take Home Lesson

• Process Matters