How HIS vendors survive in adversity

HIS companies are gradually declining hospital management software is vertical ERP

We often like to use ERP system analogy hospital management software. Indeed, there is a difference between the two, one is applied to the production, sales, financial management, etc.; one is applied to a highly specialized field such as a hospital. So in essence, we believe that hospital management software is a vertical ERP industry.

In the era when large ERP companies have been declining, we have also seen large hospital management software companies (HIS companies), and they are following their footsteps. The reason for this has always been the author's thinking in recent years, and the author has come to the following two conclusions:

1. The era of high profit in the software field has ended, and the heavy asset model will be exhausted.

2. After the informationization becomes more and more standard in the industry, the large and complete system will be eaten by the cloud-based, small and beautiful system.

The high-profit era in the software field has ended the cloud, small and beautiful systems are favored

When the HIS company inserted the battle flag into the small and medium-sized hospitals, the industry's carnival has entered the final stage, and the far-sighted enterprises have sought transformation three or five years ago. The HIS high-profit era, which used thousands of people to serve hundreds of hospitals, has come to an end. So in recent years, we have seen that the small HIS companies in various provinces and regions have been merged by large HIS companies, while the financial status of large HIS companies is Everything goes from bad to worse.

At the end of the day, the heavy asset model (the performance of the software industry as a heap engineer) has increasingly been cast aside by the industry. When all hospitals have been informatized, informatization has become the standard of every hospital, and the industry is looking for a new direction. We have seen “cloud hospital” solutions, “regional information platform” solutions, and specialist hospital solutions, which have evolved over the years. Large and complete systems have become increasingly difficult to achieve high added value, and the reputation is very poor, so the industry is pursuing new breakthroughs. Cloud-based, small and beautiful systems are increasingly valued by the industry, especially the capital market.

So what are the difficulties faced by traditional hospital management software companies in transforming the cloud, small and beautiful? The author believes that there are three big mountains in front to be over:

1. The project product is turned into a product product;

2. The centralized management model is adapted to flat management;

3. The business model of selling software is to be transformed into a service.

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