Value‐added benefits of technology: E‐procurement and e‐commerce related to the health care industry

Abstract

Purpose

To provide insights into the current supply chain for original equipment manufacturers (OEM) in the radiology diagnostic imaging equipment business. As is common in many manufacturing and service firms, the rationale of bridging suppliers of OEMs is the ability to leverage technology, software, and accessories pertaining to the various pieces of equipment.

Design/methodology/approach

Several models of e‐procurement and e‐commerce related to the health care industry are presented.

Findings

Although the radiology capital equipment market presents numerous idiosyncrasies that must be addressed to successfully implement an e‐business strategy effectively, incredible opportunities exist all along the supply chain for e‐business strategies to both eliminate costs and acquire strategic initiatives. Those firms that most successfully listen to their customers and address the barriers to efficiency (B2E) will help move the industry toward more effective utilization of the benefits e‐business can create and also obtain first mover advantages.

Originality/value

Although the efficiencies that e‐business provides are extremely important in the radiology capital equipment market, the main value of e‐business in this industry of high‐priced and relatively infrequently purchased equipment may well be the value‐added benefits the technology brings to its customers, as illustrated in the modeling process. The OEMs that eventually market their finished product directly to hospital and imaging centers via a direct sales force can best take advantage of the connectivity and accessibility of e‐commerce.

Citation

Smith, A.D. and Correa, J. (2005), "Value‐added benefits of technology: E‐procurement and e‐commerce related to the health care industry", International Journal of Health Care Quality Assurance, Vol. 18 No. 6, pp. 458-473. https://doi.org/10.1108/09526860510619444