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E-Newsletter.... PUBLISHED TWICE A MONTH
DECEMBER, Edition # 39, 2001

[Home] [About The Newsletter] [Topics Covered] [Testimonials]
PAT GALLAGHER

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INFORMATION TECHNOLOGY


I Guess it's Nearly Christmas

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At this time of the year what good retailer has time to read gratuitous snippets of advice from anyone?
That's probably the issue of this article in this issue.
If the rush is not yet on, if customer traffic, promotions, deals and staff juggling is not at the top of your priority- then perhaps the pharmacy business, you are in is, not firing as a retail outlet.
Over the past months, with the gentle and persistent reminders from our fearless editor I (and I guess the other worthy contributors) have penned my little contributions and got a kick out of doing them.
I have also enjoyed reading many of the articles, and I have learnt some interesting bits and pieces.
It seems to me therefore that this journal should perhaps have a broader readership, it certainly should make a wider impact.
Particularly in the professional, policy and political arms of the profession.
If not for any other reason than encouraging the spirit of debating and openly facing the change management issues, coming via technology, over the next 1000 days.
For, in the near and midterm future, make no mistake, big things are afoot.
My articles have had a business and supply chain bent rather than a clinical spin, but have overlapped with a common strand to the other writers.
That collectively covered the what, where, why and (we guess) the when.
That a bunch of things will change, get better, or worse, as fate and effort will determine.
Common themes have been:

· barcodes
· the Internet
· broad band and other communication options
· backroom, dispensary and POS, PC systems
· data alignment
· data management
· logistics
· marketing research and industry statistics
· sales and marketing relationships - turnover orders, over stocking, picking errors and credit notes
· can the wholesaler be as an efficient wholesaler of information as they are of physical product (they will certainly need to be)
· why isn't the GST/BAS a simple sub-function of every software managed transaction, eliminating Sunday paperwork workloads
· threats to the profession
· shrinking markets
· longer hours
· electronic prescriptions
· drug interactions
· medical misadventures
· errors at warp speed
· on-line patient history
· global trends, and arrgghhh
· deregulation (don't worry it may never happen).

I have not got a fiddler's flicker of an idea whether any of this hits home with anyone out there?
Frankly, my respondent audience seems to consist of our intrepid editor.
Not a call, a letter or pie in the face have I received.
Naturally I take this as nothing more than situation normal and I don't intend to rush off to a shrink seeking solace due to an apparent lack of identity or existence.
No one is going to die not knowing what I think.
And what I think is that the message is not getting through.
Pharmacy is a member of the mysterious tribe that befuddles governments and is often invisible to big business in terms of relevancy in change management terms.
That, of course, is the SME tribe.
The tribe that employs more Australians and controls more GDP than the overpaid blue suits.
A tribe that never actually gets heard at national conferences, seminars, workshops, retreats, and the like - tribe members being time poor, resource poor and just plain busy.
Right?
Well, not all the time.
It maybe the case that you are too busy to get engaged in what is swirling all about the place at this moment, but if you don't do something soon then who can be blamed when the rules change and you can only say - 'huh'?
Over the past year I have had a lot to do with the SME sector.
Not all of them of course.
In fact very few of the 1 million with an ABN.
Not many of the 200 000 who trade goods and services.
In fact not too many of the 20 000 that populate the retail, consumer section of the national economy.
Enough, however, to get the drift.
They include the grocery, newsagents, photographic, apparel office products, builder's hardware, horticulture, furniture, footwear, appliances as well as pharmacists, doctors and other clinicians.
It has been the health sector that has had the least interest in what is happening and will happen (to them) via the Internet and allied technology, process and practice changes.
Once Christmas is out of the way I would recommend that this apparent lack of interest in events being effected by b2b, should be rectified.
Because bigtime things are going to happen, even if they now seem gradual and benign.
One day the overall result of the seachange will hit and the impact may not be pleasant.
And that's just the government sector effect.
The corporate blue suits are beginning to understand that they can no longer rule the world in a private vacuum.
The whole b2b-e.commerce model requires buyers and sellers, to trade openly, over the Internet and sharing data and information never before envisaged.
This is a rude shock to the corporate animal.
The playing field is actually going to become more level.
Can you imagine what they are thinking?
"How do we control this"- would be high on the list of probable thought processes.
Which is to say how can they persist with the manual, secret world in an open electronic environment?
They can't.
However, they probably will try to and will fail.
The trick is not to the bunny that fails with them.
You see - the world is tipping on its verticals.
Why then (you say) is it only maddies writing in this publication that are going on, and on, about this stuff?
Pretty simple really - aside from crass ignorance and arrogance, it is the age old fear of change and the failure that may come with it.
Who is afraid?
All the big guys.
If they are fat and happy now, they are probably getting very tetchy about the pressure to change.
This is not unique to the health sector.
It is very common now to hear industry associations, particularly, questioning their relevance, their service to members, their value add component to their members benefit.
Why do you need an association if everything is available on the Net?
A rhetorical question that good and sensible association folk are facing.
Right here and right now.
Big middleman business is becoming worried that the Net will eliminate them from the supply equation.
I doubt that actually.
Perhaps big red balls are more of a real threat, rather than the SME sector suddenly buying off any Tom, Dick or Harry.
However, the lack of action in the way most of them are not responding to change and acting appropriately, who would be surprised if the was a temporary mini-revolution.
Be sure that someone will try and sell you the 'benefits' of buying direct, off a web site.
Forget about it.
On second thoughts I need not even warn you - your staff, chocablock full of common sense as they are - will see through the smoke and mirrors and advise against any such nonsense.
Meanwhile what is the retail SME guy thinking?
Not much actually - 'too busy".
Once Christmas and the holidays are over it may be a good idea to consider if this is a good way to face 2002.
This is not a time to meekly take what is 'given' - no matter who is 'giving'.
So, while all the bullet-points above did not seem to engage most of you, dear reader, none of it will go away in 2002.
And, to make life more jolly and fun there are the following elements of change that are still to come, on top of everything else:

· the Internet may make it faster to order but ordering frequencies will shrink - multiple daily deliveries will go the way of the fob watch
· some of you will really learn how to actually use the web to build real business · not surprisingly, 'virtual clubs', will feature in this
· the Net will allow the better placement of excess stock, without any hassles
· getting a credit note for out of date stock will be a memory
· pharmacy direct practices must have an impact - yes, no?
· the cheque will not be in the mail
· the temptation to buy direct will be heavily sold - all things being efficiently equal, a bad thing to do, but it will sound good at the time
· 'doctor shopping'- what ever that may mean to you, it will mean a lot to the regulators
· how will the MCCA effect wholesalers, ordering, scripts, claims and all of the associated software?
· things that are politically incorrect today and are swept under the carpet, PBS goods being sent to migrant countries, for example, will become under public microscopes
· one way or another (BMMS/Healthconnect/whatever moniker the too-many-poor-cooks call it) electronic prescriptions and on-line records will rapidly become a prerequisite to being a pharmacist (and/or a doctor)
· have you ever considered the impact hospitals supply chains will have on the service to community pharmacy?
· pharmacy is, give or take, a $7 billion cake for the wholesalers and suppliers to carve up - hospitals are $12 billion
· now that the wholesalers are eying the hospital pie, what effect will that have on resources to maintain the services pharmacy enjoys today - hmmm?
· will processes and resources, good old habits, change to fit the smaller model or the larger audience?
· where will standards be set - in hospitals who have the people to attend meetings - or in retail pharmacy, and finally
· how will I cope in technology terms by Christmas 2003?

Mercy.

Such a lot to happen and so little time to do it all in.
If you think I am kidding, exaggerating, purposely gilding the lily, pushing jiggerypookery, being pernickety or smoking something funny, that's your prerogative.
Meanwhile the folk I mix with are busy figuring out what it all means and how to cope. My non-gratuitous advice is to hear the whispers and get ready for the roar.
Have a nice Christmas

Have a very nice Christmas and an extra nice New Year!

Pat Gallagher

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