MANAGEMENT INFORMATION SYSTEMS (GROUP 1)

(ASSIGNMENT: PHARMACY SERVICE IMPROVEMENT AT CVS)

MEMBERS: Debasmita Kumar (PGP33271), Kaushik K (PGP33279),

Sharang Gaikwad (PGP33294), Sourav Agarwal (PGP33297)

1. What changes do you recommend to CVS's existing pharmacy fulfilment process?

a) Instead of making the customer walk all along to the CVS store to drop off the prescription an
online portal can be developed to register the same. This will eliminate the data entry job from the
CVS side as it is done by the customer. This database could be linked with that of the third-party
payers.
b) The data entry operator would just make sure the customer’s name, address, and birth date on
prescription is entered into the database and convey any conflict in the third-party payment to the
customer right away to avoid issues during pickup.
c) A database of logs reflecting the cause of the hard stops, and how it was resolved, can be
maintained. This will help in Knowledge transfers for future reference and for prompt disposal of
such hard stops.
d) By updating the customer via mail or by creating customer specific account in the consumer
portal, the company can update the status of delivery real time.

2. What IT changes, if any, are required to implement your changes?

The IT system must increase the speed of the initial data entry and verification of customer
information. If the IT system could perform a check of the insurance this would allow for the
customer to be notified upfront of the cost and eliminate cost surprises during the pickup. The
pharmacist largely resolves DUR hard stops, an IT system could use the same criteria to provide
solutions. This would allow the pharmacist more time to complete other tasks. A system that could
notify the customer when their prescription was ready for pickup either through text message,
automated phone call, or email would eliminate the problem of misquoting and guessing of times by
technicians. Instead of the pharmacist and technicians moving the scripts through boxes a system
that will organize the number of scripts to be filled, the order they need to be filled, and provide a
priority list for fulfilment.

3. How can you ensure that the new process you propose will be an improvement
over the existing one?

Each step of the new procedure needs to be evaluated in terms of how it will benefit the overall
process and the customer issues that it will eliminate. The staff needs to see how it helps them
specifically. Specific problems that occur need to be identified and then it needs to be noted where
the new process eliminates or reduces such problems.

4. How can you ensure that it won’t make things worse?

The new process needs to be tested at some pilot locations to ensure that the chances create the
efficiencies sought after. The issues occurring at the pilot locations need to be taken up, reviewed
and resolved thereafter. This would ultimately improve the overall efficiency of the process.
5. What groups, if any, are likely to have problems with your proposed solution?

The major groups that are likely to have problems with the solution are- pharmacists and
technicians. Pharmacists may be reluctant to have IT assist in the DUR hard stop resolution process.
Technicians may be reluctant to take more time with the customer at the drop off. The third-party
payers might have reservations in sharing their database real time.

6. How will you deal with their objections?

The fact that the logic being used will keep or improve the level of customer safety, is something that
must be clear to the pharmacist. This has to be expressed as an improvement of quality control and
not just a time saving mechanism. Technicians feel that they are not responsible for many of the
issues that arise at pickup. They should be convinced that this method would eventually reduce the
number of issues occurring during pickup. The issues of the third-party payers can be overcome by
convincing them that more number of customers can be attracted through this IT enabled system.

7. How will you ensure that there’s no backsliding & that there won’t still be wooden
boxes in use six months from now?

It is imperative that every person involved in the task process should be convinced of the changes
being implemented in the process. The staff must not only be told about the changes, they must
learn why the changes came and they must see improvements in their own working environment.
This cannot be a halfway system, where the new system is eased in. It must be a complete switch for
the full effect of the improvements to be realized.

8. How can technology be used to prevent or inhibit backsliding?

The technology must be fully integrated into the process in such a way that it does not allow for an
alternate system to be used. For instance, the filling process must be tied to the payment process so
if they tried to fill the script outside the new system when they came to the payment time they
would not be able to complete the payment process. A wholly integrated system allows for tracking
of data to compare number of filled scripts to revenue and be auditable.

9. Does PSI represent a significant opportunity for CVS? Would improving customer
service be of significant financial benefit to the company?

PSI is a huge opportunity for CVS in both terms of image and the bottom line. In 2000 CVS was able
to gain 8.5 million new customers. In the same year they lost 7.2 existing customers, which translates
into a loss of 2.5 billion dollars. The two largest factors that customers left for were location &
service. The most profit was being lost from those that left for service. Decreasing the lost customers
from service would make an immediate impact on profits and allow CVS to continue to expand which
attacks the issues of lost customers due to location.

10. What percent of pharmacy defectors from CVS in 2000 were light versus heavy
users?

Percentage of pharmacy defectors from CVS in 2000 who were light users= 92.47%
Percentage of pharmacy defectors from CVS in 2000 who were heavy users= 7.53%