Express Scripts
Enterprise Data Warehouse
Joe Federer, Senior Director
EXPRESS SCRIPTS
A bit about the Journey
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•
•
•
•
Introduction
Business Story
Implementation – SuperBowl Sunday
Enterprise Logical Data Model
Summary
Who Said It???
“Our health is far behind the progress of medical
science…Proper medical care is so expensive that it is
out of reach of the great majority of our citizens.”
•
•
•
•
•
George W. Bush
William J. Clinton
Lyndon B. Johnson
John F. Kennedy
Harry S. Truman
State of the Union address - 1949
Demographics Are Crucial
The Population is…
• growing
• aging
• getting heavier
Who Is Express Scripts?
Contact Centers
• Arizona
• Colorado
• Georgia
• Michigan
• Minnesota
• Missouri
• New Mexico
• New York
• Pennsylvania
Home Delivery
• Arizona
• Missouri
• New Mexico
• Pennsylvania
Corporate Headquarters:
St. Louis, Missouri
Revenue Growth with Acquisitions
$18,000
$16,000
$14,000
Specialty
Platform
Millions
$12,000
Labor/
NE/
SG&A
$10,000
DIVERSIFIED
®
$8,000
$6,000
$4,000
Large
Employer/
Mail
Managed
Care /
Rebates /
SG&A
Middle
Market
$2,000
$0
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
Teradata Implementation - Progression
Pharmacy
Reference
Adjudication
DB-2
RS-6000 SP-2
8 nodes
AIX 4.3
DB-2
4 TB / 1.8 TB
Data Marts
Teradata
New Enterprise
Logical Data Model
Client
Ad-Hoc
Data Marts
Silo
Silo
Sales
Silo
Silo
Ops
Silo
Silo
Call
Ctr
Silo
Silo
Silo
Prod
Mgt
Silo
Claim
Silo
Silo
Silo
Silo
Silo
On-going
Silo
Mktg
July 2006
P690
AIX 5.1
UDB
2 TB /800 GB
April 2006
RS-6000 SP-2
1 nodes
AIX 5.1
DB-2
200 GB / 50 GB
Client Portal
Fin
RS-6000 SP-2
2 nodes
AIX 5.1
DB-2
800 GB / 200 GB
April 2006
Q1 2007
Operational DW
DB-2
2 TB
Decision Support
Feb 2006
s
t
a
g
e
“Tall and Skinny” to EDW
Goal
State
Current
Cl
ai
M ms
G em
L/
Fi ber
na
nc
Be e
n
P
Ho re efit
m sc r
e
i
De ber
liv
er
y
Dr
ug
Sa
l
Co es
n
Sp t ac
ec t
ia
lty
s er
it er ry ug es act lty
e
f
c
m
l
e
ai mb an e n c rib live Dr Sa
nt cia
l
o
n
e
C
B es De
C
pe
M /Fi
r
S
L
e
P
G
m
Ho
%of
of Subject
Subject Area Built
%
Built Out
Out
“Tall and Skinny” to EDW
t1
t2
t3
t5
t4
Specialty
GL/Finance
Claims
Contact
Member
Benefit
Home Delivery
Prescriber
Drug
Sales
Goal State Architecture –
EDW Operational Data Repository
Home
Delivery
Systems
CICS
Agents
Anchor
WAN
Home
Delivery
Pharmacy
Web Servers
CORBA
Integration
Services
Compass
Stratus
•
New Integration Technologies
to provide a consistent
mechanism for application
integration and data inquiry
services (ESB/SOA).
•
High availability in the Data
Warehouse Teradata,
Informatica, Business
Objects, and Web
environments.
•
Active feeds from operational
systems into the warehouse
via consistent integration
technologies.
•
Inquiry services reference a
single data source in many
cases.
•
Operational Business
Intelligence is enabled by
loading transactions into the
EDW in near real-time.
Member Portal
Enterprise
Eligibility
Enterprise Service Bus
Retail Pharmacy
Informatica
Outbound /
Express
Contact
Web
Servers
Teradata
Business
Objects
Data Warehouse and Reporting
Operational BI
·
·
·
·
Member
Internal Analytics
Product Management
Provider Relations
Finance
BACS
Trend Central
· Clients
· CPMs
Patient
Care
Advocate
Client
Enterprise Logical Data Model
And Now…
• A shameless sales pitch for a career at
Express Scripts…
Our Work Matters
• We serve patients and clients
• We align our interest with clients
• We add value to help us grow
• We make this a positive place to work
Information Technology
• We develop great people
• We deliver world-class system performance & reliability
• We build solid platforms and architecture
• We deliver innovative business solutions
• We develop solid strategic plans
We are developing top talent for tomorrow’s leaders.
14
How to Apply:
• Visit www.express-scripts.com
• Click on Careers under “Our Company”
• Click on Opportunities at Express Scripts
• Select a location or “All” in the Location drop-down list
• Select “Intern Opportunities” in the Job Category drop down list
• Fill out the application online
Watch for Internship job descriptions online after Oct. 16th
Conclusions
•
•
•
•
Good Roadmap
Fostered Executive Buy-in
Continue to Deliver on Strategy
And… consider Express Scripts…
BACKUP
Desired Situation
• Data Warehouse as an enterprise
information asset.
• Business driven implementation.
• Re-use and leverage of intellectual property.
• Phased delivery for managing risk and
maximizing ROI.
• Efficiency in deployment.
• Extensibility for new applications and data
content.
• Consistent enforcement of privacy and
security policies.
An Analogy
Imagine that you are building a city...
How would you go about doing it?
An Analogy
First Method: Construct neighborhoods of the city
as required on an as-needed (ROI justified)
basis.
• Each neighborhood is constructed based on the
needs of its constituency and pre-existing
neighborhood infrastructure.
• Each constituency pays only for its neighborhood
construction costs.
• As the city evolves and expands, invest in
appropriate re-engineering to meet new
requirements.
An Analogy
Example Result: Boston.
• Numerous one-way
streets and dead ends.
• Difficult to navigate.
• Non-extensible without
major costs.
– e.g., “The Big Dig”
• New neighborhoods not
well integrated.
An Analogy
Second Method: Invest in an up-front city plan as
a “blueprint” for city design.
• Requires infrastructure investment prior to
constructing first neighborhood.
• Funded by “city tax” across all constituents.
• City plan provides high level framework, not the
detailed design.
• Each neighborhood construction project adheres to
the city plan (blueprint).
• Each constituency pays for its detailed design and
construction costs.
• Extensibility built into the city plan.
An Analogy
Example Result: Toronto.
• Investment and vision applied prior to actual
construction.
• Extremely “user friendly” city.
• Extensibility of infrastructure anticipated in city
design and overall cost is minimized.
– e.g., Toronto subway.
• New neighborhoods easily added without straining
infrastructure.
An Analogy
The Enterprise Data Model for your Data
Warehouse is like the City Plan for designing a
Metropolis.
Efficient and extensible deployment of a Data
Warehouse requires an Enterprise Data
Model.
Note that disciplined adherence to blueprint is a prerequisite to success.
Implementation and Deployment
There is a spectrum of implementation approaches
for a data warehouse – each with a different set
of investment tradeoffs.
1. Independent PDM (Physical Data Model) for each
domain of analytic applications (e.g., marketing,
pricing, medical management, etc.).
2. Incremental deployment of enterprise PDM with reengineering appropriate to each phase of delivery.
3. Phased deployment of PDM within an enterprise
LDM framework.
25
Implementation and Deployment
The Enterprise Logical Data Model provides a
framework for building the 80% once rather than
once for each domain of analytic applications.
• Estimated cost for independent multi-mart approach
is 70% higher than for phased implementation using
an Enterprise LDM framework.
• Estimated cost for incremental deployment of
enterprise PDM without Enterprise LDM is 20-30%
higher due to re-engineering requirements in each
phase.
26
Implementation and Deployment
The blueprint provided by an Enterprise
Logical Data Model allows extension of data
content in the warehouse via enhancement
to data domains and data relationships...
...without re-engineering the data model for
each new application or data source.
27
Implementation and Deployment
Avoid “big bang” approach to data modeling:
• Goal is to create a conceptual data model to act as
blueprint for the enterprise.
• Do not get caught up in detailed sub-typing,
attribution, or data typing for entities.
• Complete conceptual model and opportunity
analysis within four months of start date.
Funding Model
• High-level design of conceptual ELDM
performed across business units and funded as
infrastructure investment as pre-requisite to
data warehouse construction.
• Detailed design and population of ELDM is
justified by specific ROI opportunities.
• Conceptual ELDM deliverable is focused on
what is necessary for extensible delivery of the
data warehouse solution.
• Detailed design of ELDM is delivered
incrementally with each ROI opportunity.
Think Big,
Start Small
Enterprise
Paradigm
Member
Reporting
Business Value
IT Development
Member
(150)
Department
Paradigm
“The
Business
User”
Member
Churn
Reporting
Churn
Growth
Churn
Growth
Customer
Growth
Customer
Customer
Member
Billing
Billing
(150)
Billing
“The
IT
Provider”
“The
Business
User”
Business Value
IT Development
“The
IT
Provider”
Think Big,
Start Small
Enterprise
Paradigm
Member
Reporting +
Medical Management
Business Value
IT Development
Member
(150)
Department
Paradigm
“The
Business
User”
(120)
Member
Churn
Reporting
Churn
Growth
Churn
Growth
Customer
Growth
Customer
Customer
Medical
Management
Member
Billing
Billing
(150)
Billing
Member +
Claims
“The
IT
Provider”
“The
Business
User”
Business Value
IT Development
(260)
“The
IT
Provider”
Think Big,
Start Small
Member Reporting +
Medical Management +
Financial Analysis
Optimized cost structure
Store once, use many
Single view of enterprise
“The
Business
User”
Enterprise
Paradigm
Business Value
IT Development
Member
(150)
Department
Paradigm
Inforce
Churn
Reporting
Churn
Growth
Churn
Growth
Customer
Growth
Customer
Customer
Member
Billing
Billing
(150)
Billing
(120)
Medical
Management
“The
IT
Provider”
(110)
Financial Analysis
“The
Business
User”
Business Value
IT Development
Member +
Claims
Member +
Claims + Revenue
(260)
(380)
“The
IT
Provider”