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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 preferencesHigher numbers more preferred options
AssumptionsDecision makers have optionsSelection 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 preferencesNominal scaleOrdinal 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?
AdministratorSelect a vendor for long termPerformance 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?
AdministratorSelect a vendor for long termPerformance of vendors on several attributesModel can document the decision
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Step 2: Select Attributes
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purposeBe judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the expert to introduce himselfc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examples of EHR that
worked well and those that worked poorlyd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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
a) Introduce yourself and your purpose• Be judicious about pausing
b) Ask the experts to introduce themselvesc) Start with tangible examplesd) Ask directly for additional attributese) 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 themselvesStart with tangible examplesAsk directly for additional attributesArrange 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
Do it againStart with listSolicit changes
Record commentsAvoid clicksSpeak back to the entire groupMaintain 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 B Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good
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Step 3: Prepare Test Scenarios
Make a case to enterCover extremes
Check for multiple entry
Ask for revision procedures
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Step 4: Vendor Performance
Test all on same casesCheck performance on each attributeRate performance on each attributeStandardize ratings
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Step 4: Vendor Performance
Average time to enter patient data2 minutes Between 3 minutes5 minutes
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Step 4: Vendor Performance
Vendor A Vendor B Vendor C
Attribute Level Level Level
Ease of use 2 minutes 3 minutes 5 minutes
Cost 11,000/bed 15,000/bed 9000/bed
Reputation Good Excellent Good
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Step 5. Rate Vendors on Single Attributes
Double anchored assessment method100 to best0 to worstRate 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 B Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 2 minutes 100 3 minutes 80 5 minutes 0
Cost 11,000/bed 70 15,000/bed 0 9000/bed 100
Reputation Good 0 Excellent 100 Good 0
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Step 6: Set Priorities
Assess ratio of importanceAttributes are rank orderedLeast important is assigned 10 pointsRate 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 PrioritiesExample Weights
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Step 6: Set Priorities
Vendor A Vendor B Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100
Reputation 0.2 Good 0 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 B Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100
Reputation 0.2 Good 0 Excellent 100 Good 0
Total 1.0 =100*.3+70*.4 =80*.3+100*.2 =100*.4
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Step 6: Recommend Action
Vendor A Vendor B Vendor C
Attribute Weight Level Rating Level Rating Level Rating
Ease of use 0..3 2 minutes 100 3 minutes 80 5 minutes 0
Cost 0.4 11,000/bed 70 15,000/bed 0 9000/bed 100
Reputation 0.2 Good 0 Excellent 100 Good 0
Total 1.0 =100*.3+70*.4 =80*.3+100*.2 =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?
Take Home Lesson
Process Matters