Data science helps hospitals improve patient payments and experiences while boosting revenue

The next BriefingsDirect healthcare finance insights discussion explores new ways of analyzing healthcare revenue trends to improve both patient billing and services.

Stay with us as we explore new approaches to healthcare revenue cycle management and outcomes that give patients more options and providers more revenue clarity.

Listen to the podcast. Find it on iTunes. Read a full transcript or download a copy.

To learn more about the next generation of data-driven patient payments process improvements, we’re joined by Jake Intrator, Managing Consultant for Data and Services at Mastercard, and Julie Gerdeman, CEO of HealthPay24. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Julie, what's driving healthcare providers to seek new and better ways of analyzing data to better manage patient billing? What’s wrong with the status quo?

Gerdeman: Dana, we are in such an interesting time, particularly in the US, with this being an election time. There is such a high level of visibility -- really a spotlight on healthcare. There is a lot of change happening, such as in regulations, that highlights interoperability of data and price transparency for patients.

Gerdeman

And there’s ongoing change on the insurance reimbursement side, with payer plans that seem to change and evolve every year. There are also trends changing provider compensation, including value-based care and pay-for-performance.

On the consumer-patient side, there is significant pressure in the market. Statistics show that 62 percent of patients say knowing their out-of-pocket costs in advance will impact their likelihood of pursuing care. So the visibility and transparency of costs -- that price expectation -- is very, very important and is driving consumerism into healthcare like we have never seen before due to rising costs to patients.

Finally, there is more competition. Where I live in Pennsylvania, I can drive a five-mile radius and access a multitude of different health providers in different systems. That level of competition is unlike anything we have seen before.

Healthcare’s sea change

Gardner: Jake, why is healthcare revenue management difficult? Is it different from other industries? Do they lag in their use of technology? Why is the healthcare industry in the spotlight, as Julie pointed out?

Intrator: The word that Julie used that was really meaningful to me was consumerism. There is a shift across healthcare where patients are responsible for a much larger proportion of their bills than they ever used to be.

Intrator

And so, as things shift away from hospitals working with payers to receive dollars in an efficient, easy process -- now the revenue is coming from patients. That means there needs to be new processes and new solutions to make it a more pleasant experience for patients to be able to pay. We need to enable people to pay when they want to pay, in the ways that they want to pay.

That’s something we have keyed on to, as a payments organization. That’s also what led us to work with HealthPay24.

Gardner: It’s fascinating. If we are going to a consumer-type model for healthcare, why not take advantage of what consumers have been doing with their other financing, such as getting reports every month on their bills? It seems like there is a great lesson to be learned from what we all do with our credit cards. Julie, is that what’s going to happen?

Consumer in driver’s seat 

Gerdeman: Yes, definitely. It’s interesting that healthcare has been sitting in a time warp. Historically, there remain many manual processes and functions in the health revenue cycle. That’s attributed to a piecemeal approach -- different segments of the revenue cycle were tackled either at different times or acquisitions impacted that. I read recently that there are still eight billion faxes happening in healthcare.

So that consumer-level experience, as Jake indicated, is where it’s going -- and where we need to go even faster.

Technology provides the transparency and interoperability of data. Investment in IT is happening, but it needs to happen even more.

Gardner: Wherever there is waste, inefficiency, and a lack of clarity is an opportunity to fix that for all involved. But what are the stakes? How much waste or mismanagement are we talking about?

Intrator: The one statistic that sticks out to me is that care providers aren’t collecting as much as 80 percent of balances from older bills. So that’s a pretty substantial amount -- and a large opportunity. Julie, do you have more?

Gerdeman: I actually have a statistic that’s staggering. There is waste of $265 billion spent on administrative complexity. And then another $230 to $240 billion attributed to what’s termed pricing failure, which means price increases that aren’t in line with the current market. The stakes are very high and the opportunity is very large.

We have data that shows more than 50 percent of chief financial officers (CFOs) want better access to data and better dashboards to understand the scope of the problem. As we were talking about consumerism, Mastercard is just phenomenal in understanding consumer behavior. Think about the personalized experiences that organizations like Mastercard provide -- or Google, Amazon, Disney, and Netflix. Everything is becoming so personalized in our consumer lives.

But healthcare? We are not there yet. It’s not a personalized experience where providers know in advance what a consumer or patient wants. HealthPay24 and Mastercard are coming together to get us much closer to that. But, truly, it’s a big opportunity.

Intrator: I agree. Payers and providers haven’t figured out how they enable personalized experiences. It’s something that patients are starting to expect from the way they interact with companies like Netflix, Disney, and Mastercard. It’s becoming table-stakes. It’s really exciting that we are partnering to figure out how to bring that to healthcare payers and providers alike.

Gardner: Julie, you mentioned that patients want upfront information about what their procedures are going to cost. They want to know their obligation before they go through a medical event. But oftentimes the providers don’t know in advance what those costs are going to be.

So we have ambiguity. And one of the things that’s always worked great for ambiguity in other industries is to look at the data, extrapolate, and get analytics involved. So, how are data-driven analytics coming to the rescue? How will that help?

Data to the rescue 

Gerdeman: Historical data allows for a forward-looking view. For HealthPay24, for example, we have been involved in patient payments for 20 years. It makes us a pioneer in the space. It gives us 20 years of data, information, and trends that we can look at. To me, data is absolutely critical.

Having come out of the spend management technology industry I know that in the categories of direct and indirect materials there have long been well-defined goods and services that are priced and purchased accordingly.

But, the ambiguity of patient healthcare payments and patient responsibility presents a new challenge. What artificial intelligence (AI) and algorithms provide are the capability to help anticipate and predict. That offers something much more applicable to a patient at a consumer level.

Gardner: Jake, when you have the data you can use it. Are we still at the point of putting the data together? Or are we now already able to deliver those AI- and machine learning (ML)-driven outcomes?

Intrator: Hospitals still don’t feel like they are making the best use of data. They tie that both to not having access to the data and not yet having the talent, resources, and tools to leverage it effectively. This is top of mind for many people in healthcare.

In seeking to help them, there are two places where I divide the use of analytics. The first is ahead of time. By using patient estimator tools, can you understand what somebody might owe? That’s a really tricky question. We are grappling with it at Mastercard.

By working with HealthPay24, we have developed a solution that is ready and working today. Answering the questions gets a lot smarter when you incorporate the data and analytics.

By working with HealthPay24, we have developed a solution that is ready and working today on the other half of the process. For example, somebody comes to the hospital. They know that they have some amount of patient payment responsibility. What’s the right way for a hospital to interact with that person? What are the payment options that should be available to them? Are they paying upfront? Are they paying over a period of time? What channels are you using to communicate? What options are you giving to them? Answering those questions gets a lot smarter when you incorporate data and analytics. And that’s exactly what we are doing today.

Gardner: Well, we have been dancing around and alluding to the joint-solution. Let’s learn more about what’s going on between HealthPay24 and Mastercard. Tell us about your approach. Are we in a proof of concept (POC) or is this generally available?

Win-win for patients and providers 

Gerdeman: We are currently in a POC phase, working with initial customers on the predictive analytic capability that marries the Mastercard Test and Learn platform with HealthPay24’s platform and executing what’s recommended through the analytics in our platform.

Jake, go ahead and give an overview of Test and Learn, and then we can talk about how we have come together to do some great work for our customers.

Intrator: Sure. Test and Learn is a platform that Mastercard uses with a large number of partner clients to measure the impact of business decisions. We approach that through in-market experiments. You can do it in a retail context where you are changing prices or you can do it in the healthcare context where you are trying different initiatives to focus on patient payments.

That’s how we brought it to bear within the HealthPay24 context. We are working together along with their provider partners to understand the tactics that they are using to drive payments. What’s working, what’s working for the right patient, and what’s working at the right time for the right patients?

Gerdeman: It’s important for the audience to understand that the end-goal is revenue collection and the big opportunity providers have to collect more. The marriage of Test and Learn with HealthPay24 provides the intelligence to allow providers to collect more, but it also offers more options to patients based on that intelligence and creates a better patient experience in the end.

The marriage of Test and Learn with HealthPay24 provides the intelligence to allow providers to collect more, but it also offers more options to patients based on that intelligence, and creates a better patient experience.

If a particular patient will always take a payment plan and make those payments consistently – that is versus when they are presented with a big amount and wouldn’t pay it off – the intelligence through the platform will say, “This patient should be offered a payment plan consistently,” and the provider ends up collecting all of the revenue.

That’s what we are super-excited about. The POC is showing greater revenue collection by offering flexibility in the options that patients truly want and need.

Gardner: Let’s unpack this a little bit. So we have HealthPay24 as chocolate and Mastercard’s Test and Learn platform as peanut butter, and we are putting them together to make a whole greater than the sum of the parts. What’s the chocolate? What’s the peanut butter? And what’s the greater whole?

Like peanut butter and chocolate 

Intrator: One of the things that’s made working with HealthPay24 so exciting for us is that they sit in the center of all of the data and the payment flows. They have the capability to directly guide the patient to the best possible experience.

They are hands-on with the patients. They can implement all of these great learnings through our analytics. We can’t do that on our own. We can do the analytics, but we are not the infrastructure that enables what’s happening in the real world.

That’s HealthPay24. They are in the real world. When you have the data flowing back and forth, we can help measure what’s working and come up with new ideas and hypotheses about how to try different payment programs.

It’s been a really important chocolate and peanut butter combination where you have HealthPay24 interacting with patients and us providing the analytics in the background to inform how that’s happening.

Gerdeman: Jake said it really well. It is a beautiful combination because years ago, the hot thing was propensity to pay. And, yes, providers still talk about that. It was best practice many years ago, of pulling a soft or even hard credit check on a patient to determine their propensity to pay and potentially offer financial assistance, even charity, given the needs of the patient.

But this takes it to a whole other level. That’s why the combination is magical. What makes it so different is there doesn’t need to be that old way of thinking. It’s truly proactive through the data we have in working with providers and the unique capabilities of Mastercard Test and Learn. We bring those together and offer proactively the right option for that specific patient-consumer.

It’s super exciting because payment plans are just one example. The platform is phenomenal and the capabilities are broad. The next financial application is discounts.

Through HealthPay24, providers could configure discounts based on their own policies and thresholds. But, if you know that a particular patient will pay the amount when offered the discount through the platform, that should be offered every time. The intelligence gives us the capability to know that, to offer it, and for the provider to collect that discounted amount, which might be more than that amount going to bad debt and never being collected.

Intrator: If you are able to drive behavior with those discounts, is it 10 percent or 20 percent? If you give away an additional 10 percent, how does that change the number of people reacting to it? If you give away more, you had better hope that you are getting more people to pay more quickly.

Those are exactly the sorts of analytical questions we can answer with Test and Learn and with HealthPay24 leading the charge on implementing those solutions. I am really excited to see how this continues to solve more problems going forward.

Gardner: It’s interesting because in the state of healthcare now, more and more people, at least in the United States, have larger bills regardless of their coverage. There are more co-pays, more often there are large deductibles, with different deductibles for each member of a family, for example, and varying deductibles depending on the type of procedures. So, it seems like many more people will be facing more out-of-pocket items when it comes to healthcare. This impacts literally tens of millions of people.

So we have created this new chocolate confection, which is wonderful, but the proof is in the eating. When are patient-consumers going to get more options, not only for discounts, but perhaps for financing? If you would like to spread the payments out, does it work in both ways, both discounts as well as in payment plans with interest over time?

Flexibility plus privacy

Gerdeman: In HealthPay24, we currently have all of the above -- depending on what the provider wants to offer, their patient base, and the needs and demographics. Yes, they can offer payment plans, discounts, and lines of credit. That’s already embedded in the platform. It creates an opportunity for all the different options and the flexibility we talked about.

Earlier I mentioned personalization, and this gets us much closer to personalization of the financial experience in healthcare. There is so much happening on the clinical side, with great advances around clinical care and how to personalize it. This combination gets us to the personalization of offers and options for patients and payments like we have never seen in the past.

Gardner: Jake, for those listening and reading, who maybe are starting to feel a little concerned that all this information -- about not just their healthcare, but now their finances -- being bandied about among payers, providers, and insurers, are we going to protect that financial information? How should people feel about this in terms of a privacy or a comfort level?

We aspire and really do put a lot of work and effort into being a leader in data privacy and allowing people to have ownership of their data and to feel comfortable.

Intrator: That is a question and a problem near and dear to Mastercard. We aspire and really do put a lot of work and effort into being a leader in data privacy and allowing people to have ownership of their data and to feel comfortable. I think that’s something that we deeply believe in. It’s been a focus throughout our conversations with HealthPay24 to make sure that we are doing it right on both sides.

Gardner: Now that you have this POC in progress, what have been some of the outcomes? It seems to me over time the more you deal with more data, the more benefits, and then the more people adopt it, and so on. Where are we now, and do we have some insight into how powerful is this?

Gerdeman: We do. In fact, one example is a 400-bed hospital in the Northeast US that, through the combination of Mastercard Test and Learn and HealthPay24, were able to look at and identify 25,000 unpaid accounts. Just by targeting 5,000 of the 25,000, they were able to identify an incremental $1 million in collections to the hospital.

That is very significant in that they are just targeting the top 5,000 in a conservative approach. They now know that they have the capability through this intelligence and by offering the right plans to the right people to be able to collect $1 million more to their bottom line.

Intrator: That certainly captures the big picture and the big story. I can also zoom in on a couple of specific numbers that we saw in the POC. As we tackled that, we wanted to understand a couple of different metrics, such as increases in payments. We saw substantial increases from payment plans. As a result, people are paying more than 60 percent more on their bills compared to similar patients that haven’t received the payment plans.

Then we zoomed in a step farther. We wanted to understand the specific types of patients who benefited more from receiving a payment plan and how that potentially could guide us going forward. We were able to dig in, to build a predictive model, and that’s exactly what Julie was talking about. Those top 25,000 accounts, how much we think they are going to pay and the relative prioritization. Hospitals have limited resources. So how do you make sure that you are focusing most appropriately?

Gardner: Now that we have gotten through this trial period, does this scale? Is this something you can apply to almost any provider organization? If I am a provider organization, how might I start to take advantage of this? How does this go to market?

Personalized patient experiences

Gerdeman: It absolutely does scale. It applies across all providers; actually, it applies across many industries as well. Any provider who wants to collect more wants additional intelligence around their patient behavior, patient payments and collection behavior -- it really is a terrific solution. And it scales as we integrate the technologies. I am a huge believer in best-of-breed ecosystems. This technology integrates into the HealthPay24 solution. The recommendations are intelligent and already in the platform for providers.

Gardner: And how about that grassroots demand? Should people start going into their clinics and emergency departments and say, “Hey, I want the plan that I heard about. I want to have financing. I want you to give me all my options.” Should people be advocating for that level of consumerism now when they go into a healthcare environment?

Gerdeman: You know, Dana, they already are. We are at a tipping point in the disruption of healthcare. This kind of grassroots demand of consumerism and a consumer personalized experience -- it’s only a matter of time. You mentioned data privacy earlier. There is a very interesting debate happening in healthcare around the balance between sharing data, which is so important for care, billing, and payment, with the protection of privacy. We take all of that very seriously.

Nonetheless, I feel the demand from providers as well as patients will only get greater.

Gardner: Before we close out let’s extrapolate on the data we have. How will things be different in two or three years from now when more organizations embrace these processes and platforms?

Intrator: The industry is going to be a lot smarter in a couple of years. The more we learn from these analytics, the more we incorporate it into the decisions that are happening every day, then it’s going to feel like it fits you as a patient better. It’s going to improve the patient experience substantially.

The industry is going to be a lot smarter in a couple of years. The more we learn from these analytics, the more we incorporate it into the decisions that are happening every day. It's going to improve the patient experience substantially.

Personally, I am really excited to see where it goes. There are going to be new solutions that we haven’t heard about yet. I am closely following everything that goes on.

Gerdeman: This is heading to an experience for patients where from the moment they seek care, they research care, they are known. They are presented with a curated, personalized experience from the clinical aspect of their encounter all the way through the billing and payment. They will be presented with recommendations based on who they are, what they need, and what their expectations are.

That’s the excitement around AI and ML and how it’s going to be leveraged in the future. I am with Jake. It’s going to look very different in healthcare experiences for consumers over the next few years.

Gardner: And for those interested in learning more about this pilot program, about the Mastercard Test and Learn platform and HealthPay24’s platform, where might they go? Are there any press releases, white papers? What sort of information is available?

Gerdeman: We have a great case study from the POC that we are currently running. We are happy to work with anyone who is interested, just contact us via our website at HealthPay24 or through Mastercard.

Listen to the podcast. Find it on iTunes. Read a full transcript or download a copy. Sponsor: HealthPay24.

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• How healthcare providers are taking cues from consumer expectations to improve patient experiences
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How IT modern operational services enables self-managing, self-healing, and self-optimizing

General digital business transformation and managing the new normal around the COVID-19 pandemic have hugely impacted how businesses and IT operate. Faced with mounting complexity, rapid change, and striking budgets, IT operational services must be smarter and more efficient than ever.

The next BriefingsDirect Voice of Innovation podcast examines how Hewlett Packard Enterprise (HPE) Pointnext Services is reinventing the experience of IT support to increasingly rely on automation and analytics to help enable continued customer success as IT enters a new era.

Listen to the podcast. Find it on iTunes. Read a full transcript or download a copy.

Here to share the HPE Pointnext Services vision for the future of IT operational services are Gerry Nolan, Director of Portfolio Product Management, Operational Service Portfolio, at HPE Pointnext Services, and Ronaldo Pinto, Director of Portfolio Product Management, Operational Service Portfolio, at HPE Pointnext Services. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Gerry, is it fair to say that IT has never had a more integral part of nearly all businesses and that therefore the intelligent support of IT has never been more critical?

Nolan: We’ve never seen a time like this, Dana. Pretty much every aspect of our life has now moved to digital. It was already moving that way. Everyone is spending more hours per day in various collaboration platforms, going through various digital interactions, and we’re seeing that in our business as well.

Nolan

That applies to whether you are ordering a pizza, booking time at your gym, getting your morning coffee -- pretty much your life has changed forever. We see that dramatically impacting the IT space and the customers we deal with.

So, yes, it’s a unique time, we have never seen it before, and we believe things will never be the same again.

Gardner: So, we are reliant on technology for commerce, healthcare, finance, all across many of these scientific activities to combat the pandemic, not to mention more remote education and more remote work -- basically every facet of our modern life.

Consequently, how enterprise IT uses services and support has entered a new phase, a new era. Please explain why a digital environment requires more tools and opportunity to the people delivering the new operational services.

Nolan: The IT landscape is very dynamic. There is an expanding array of technology choices, which brings more complexity. Of course, the move to cloud and edge computing introduces new requirements from an IT operations point of view.

Then we got hit with COVID-19 and a whole new set of challenges -- huge increases in remote workforce, and all creating problems with networks, performance, and security.

For example, a retail customer that I just met with -- they don’t even have a four-walls data center anymore, most of their IT is distributed throughout their retail stores -- and another customer, a large telco, is installing edge-related servers on their electricity pylons on the sides of mountains in very remote areas. These types of use-cases need very different operational processes, approaches, and skills.

Then we got hit with COVID-19, and that brings a whole new set of challenges, with locking down of IT environments, huge increases in remote workforces, all creating problems with network capacity, performance, and security challenges.

As a result, we are seeing customers needing more help than ever while they try and maintain their businesses. At the same time, they need to plan and evolve for the medium- to long-term. They need solutions both for today -- to help in this unique lockdown mode -- but also to accelerate transformation efforts to move to a digitally enabled customer experience.

Gardner: Ronaldo, this obviously requires more than a traditional helpdesk and telephone support. Where does the operational experience, of even changing the culture around support, kick in? How do we get to a new experience?

Pinto

Pinto: Dana, many people associate traditional support to telephone support, but today it needs to be much more. As Gerry described, we are moving toward a very distributed, remote, low-touch to no-touch world, and COVID-19, the pandemic, just accelerated that.

To operate in such an environment, companies depend on an increasing number of tools and technologies. You have more variables today, just to control and maintain your performance. So it’s extremely important to arm the people that provide technical support with the latest artificial intelligence (AI) tools and digital infrastructure so they continue to be effective in the work they do.

Gardner: Gerry, how has the pandemic and emphasis on remote services accelerated people’s willingness to delve into the newer technologies around automation, AI, predictive analytics and AIOps? Are people more open now to all of that?

Nolan: No question, Dana. Consider any great customer experience that you have today -- from dealing with your mobile phone provider to, in my case recently, my utility company. The great experiences offer a variety of ways to access the information and the help you may need on a 24-7 basis. Typically, this has involved a whole range of different elements -- from a portal or an app, to some central hub -- for how you engage. That can include getting a more personalized dashboard of information and help. Those experiences also often have different engagement options, including access to live people who can answer questions and provide guidance to solve issues. That central hub also provides a wealth of helpful, useful information and can be AI-enabled to provide predictive alerts via dashboards.

There are companies that still provide only a single channel, such as, for example, the utility company I had to call yesterday, which kept me on hold for 45 minutes until I hung up. I tried the website, and they had multiple websites. I sent an e-mail; I am still waiting for a response!

The great customer experiences have multiple elements and dimensions to them. They have great people you can talk to. You have multiple ways of getting to those people. They have a great app or website with all sorts of information and help available, personalized to your needs.

That’s the way of the future. Those companies that are successful and have already started on that path are seeing great success. Those that have not are struggling -- especially in this climate. Now, not only is there more need to go digital, the pressure on revenue limits the investment dollars available to move in that direction if you haven’t already done so.

So, yes, there’s a multitude of different challenges here we are dealing with.

Gardner: It’s amazing nowadays when you deal, as a customer, with companies, how you can recognize almost instantly the ones that have invested in digital business transformation and are able to do a lot of different things under duress -- and those who didn’t. It’s rather stark.

Ronaldo, dealing with these complexities isn’t just a technology issue. Oftentimes it includes a multi-vendor aspect, a large ecosystem of suppliers. Pointing fingers isn’t going to help if you’re in a time-constrained situation, a crisis situation.

How do the new operational experiences include the capability to bring in many vendors and even so provide a seamless experience back to that customer?

Seamless collaborations succeed 

Pinto: HPE has historically collaborated. If you look at our customers today, they have best-of-breed environments and there are many emerging tools that make those environments more efficient. We also have several startups.

So, it’s extremely important for us to serve our customers by being able to collaborate seamlessly with all of those companies. We have done that in the past and we are expanding the operational capabilities, including tools we have today, to better understand performance, integration between our products, and with third-party products. We can streamline all of that collaboration.

Gardner: And, of course, the complexity extends across hybrid environments, from edge to cloud -- multi-cloud, private cloud, hybrid cloud. Is that multi-vendor and multi-architecture mix something that you’re encountering a lot?

Nolan: Today, every customer has a multi-vendor IT landscape. There are various phases of maturity in terms of dealing with legacy environments. But they are dealing with new IT on-premises technologies, they are trying to deploy cloud, or they may be moving to public cloud. There’s a plethora of use cases we see globally with our customers.

The classic issue is when there's a problem, the finger-pointing or blame-game starts. Even triaging and isolating problems in these environments can be a challenge, let alone the expertise to fix the issue. The more vendors you work with the more dimensions you have to manage.

And the classic issue, as you point out, is when there’s a problem, the finger-pointing or the blame-game starts. Even triaging and isolating problems in these types of environments can be a challenge, let alone having the expertise to fix the issue. Whether it’s in the hardware, software layer, or on somebody else’s platform, it’s difficult. Most vendors, of course, have different service level agreements (SLAs), different role names, different processes, and different contractual and pricing structures.

So, the whole engagement model, even the vocabulary they use, can be quite different; ourselves included, by the way. So, the more vendors you have to work with, the more dimensions you have to manage.

And then, of course, COVID-19 hits and our customers working with multiple vendors have to rely on how all those vendors are reacting to the current climate. And they’re not all reacting in a consistent fashion. The more vendors you have, the more work and time it’s going to take -- and the more cost involved.

We call it the power of one. Our customers see huge value in working with a partner who provides a single point of contact, that single throat to choke or hand to shake, and a single focal point for dealing with issues. You can have a single contract, a single invoice, and a single team to work with. It saves a lot of time and it saves a lot of money.

Organizations already in that position are seeing significant benefits. Our multi-vendor business is growing very, very well. And we see that moving into the future as companies try to focus on their core business, whatever that might be, and let IT take care of itself.

Edge to cloud to data center 

Pinto: To your question, Dana, on hybrid environments, it’s not only hybrid, it’s edge to cloud and to the data center. I can give you two examples.

We have a large department store customer with the technology in each of the many stores. We support not only the edge environments in those stores but all the way through to their data center. There are also hybrid environments for data management where you typically have primary storage, secondary storage, and your archiving strategy. All of that is managed by a multitude of backup and data-movement software.

The customer should not be worried with component by component, but with a single, end-to-end solution. We help customers abstract that by supporting the end-to-end data environment and collaborating with the third-party software vendors or platform vendors that will inevitably be a part of the solution.

Gardner: Gerry, earlier you mentioned your own experience with a utility company. You were expecting a multi-channel opportunity to engage with them. How does the IT operational services as an experience become inclusive of such things? Why does that need to be all-inclusive across the solutions and support approaches?

Have it your way

Nolan: An alternative example that I can give is my bank. I have a couple of different banks that I work with, but one in particular invested early in a digital platform. They didn’t replace their brick and mortar models. They still have lots of branches, lots of high-tech ATMs that allow for all types of self-serve.

But they also have a really cool app and website, which they’ve had for a number of years. They didn’t introduce digital as a way of closing down their branches, they keep all of those options available because different people like to integrate and work with their service providers in different ways, and we see that in IT, too.

The key elements to delivering a successful experience in the IT space, an AI-enabled experience, includes having lots of expertise and knowledge available across the IT environment, not just on a single set of products.

Of course, a digital platform provides that personalized view. It includes things like dashboards of what’s in my environment, ongoing alerts and predictions -- maybe capacity is running out or maybe costs are beyond what was forecast. Or maybe I have ways of optimizing my costs, some insights around updates to my software, licenses or some systems might be reaching the end of their support life. There is all sorts of information that should be available to me in a personalized way.

And then in terms of accessing experts, the old model is to get on the phone, like I was yesterday for 45 minutes talking to somebody, and in my case, I wasn’t successful. But customers, in some cases, they like to deal with the experts through a chat window or maybe live on the phone. Others like to watch expert technical tips and technique videos. So, we have developed an extensive video library of experts wherein you can pick and choose and listen to some tips and techniques about how to deal with certain key topics we see that customers are interested in.

Moderated forums: Customers actually like sharing their experiences with each other. And then our experts get involved and you mix and match with partners and end-customers and you get this very rich dialogue that goes on around particular topics, best practices, ideas, or there could be problems that somebody else has solved.

AI is at the heart of all of this because it's constantly learning. It's like a self-propelling mechanism that just gets better over time. The more knowledge it gains, the more answers are provided.

AI is at the heart of all of this because it’s constantly learning. It’s like a self-propelling mechanism that just gets better over time. The more people come on board, the more knowledge it gains, the more questions they ask, the more answers are provided.

The whole thing just gets better and better over time. It’s key, of course, to have that wide portfolio of help for customers. If they have a strategy, make it work better; if they don’t have a strategy and need help building one, we can help them do that all the way through to designing and implementing those solutions.

And then they can get the ongoing support, which is where Ronaldo and I spend most of our life. But it’s important as a vendor or as a partner to be able to offer customers help across the value chain or across the lifecycle, depending on where they need that help.

Gardner: Ronaldo, let’s dig more deeply into the specifics of the new HPE Pointnext Services’ operational services’ approach, modernizing operations for the future of IT. What does it include?

Meet customers’ modernization terms 

Pinto: We are doing all of this modernization with the customer in mind. What is really important for us is not only accomplishing something, but how you accomplish it. At the end of any interaction the customer needs to feel that their time was used effectively. HPE shows a legitimate concern with the customer success and in feeling positive at the end of the interaction.

Gerry mentioned the AI tools and alerts. We are integrating all of the sensors, telemetry we get from products in the field, all the way up to our operational processes in the back end so that customers can accomplish whatever they need with us on their own terms.

For example, if there’s an alert or a performance degradation in a product, we provide tools to dig deeper and understand why. “Hey, maybe it’s a component in the infrastructure that needs to be updated or replaced?” We are integrating all of that. We see into our back end operational processes so that we can even detect issues before the customer does. Then we just notify the customer that an action needs to be performed and, if needed, we dispatch the part replacement.

If the customer needs someone at the site to do the replacement, no problem. The customer can schedule that visit easily in a web interface and we will show up in the window that the customer chooses.

It’s offering the customer, as Gerry mentioned, multiple channels and multiple ways to interact. For customers, it means they may prefer a remote automated web interface or the personal touch of a support engineer, but it should be on the customers’ own terms.

Gardner: I have seen in the release information you provide to analysts like myself the concept of a digital customer platform. What do you mean by a digital customer platform when it comes to operational services?

A focused digital platform 

Nolan: It’s all of the things that Ronaldo just mentioned coming together in a single place. Going back to my bank example, they give you a credit card where you typically have a single place that you go from a digital point of view. It’s either an app and/or a website and that provides you all of this personalized information that’s honed to your specific needs and your specific use case.

For us, from a digital point of view and from a customization platform, we want to provide a single place regardless of your use case. So, whether you are a warranty level customer or a consumption customer, buying your IT on a pay-as-you-go basis, all of the help you need, all of the information, dashboards, all of the ways of engaging with us as a partner, it’s all through a single portal. That’s what we mean when we say the digital platform, that central place that brings it all to life for you as a customer.

Gardner: Why is the consumption-based approach important? How has that changed the game?

Pinto: It’s the same idea, to provide customers the option to consume IT and to use IT on their own terms. HPE pioneered the hybrid IT consumption model. Behind that is Pointnext through all the services we provide -- whether the customer chooses to consume or not, on an as-a-service basis, consuming an outcome, or if the customer wants to consume the traditional way, where the customer takes ownership of their underlying infrastructure. We automate those more transactional, repeatable tasks and help the customer focus on innovation and meeting their business objectives through IT. So that is going to be consistent across all the consumption models.

Nolan: What’s important to recognize here is, as a customer, you want choice and choice is good. If the only option you have is, for example, a public cloud solution, then guess what? Every problem you as a customer have, then that public cloud provider has one toolbox. It’s a public cloud solution.

I have just been speaking with a large insurance company and they are moving toward a cloud-first strategy, which their board decided they needed. So, everything in their mind needs to move to the cloud. And it’s interesting because they decided the way they are going to partner to get that done is directly with a public cloud vendor. And guess what? Every problem, every workload in that organization is now directed toward moving to public cloud, even where that may not be the best outcome for the customer. To Ronaldo’s point, you want to be assessing all of your workloads and deciding where is the best placement of that workload.

You might want to do that work inside your firewall and on your network because certain work will get done better, more cost effectively, and for all sorts of security, network latency, and data regulatory reasons. Having multiple different choices -- on-premises, you can do CAPEX, you can do as-a-service -- is important. Your partner should be able to offer all those choices. We at HPE, as Ronaldo said, pioneered the IT as-a-service mode. We already have that in place.

 Our HPE GreenLake offering allows you to buy and consume all of your IT on a pay-as-you-go basis. We just send you a monthly bill for whatever IT you have used. Everything is included in that bill -- your hardware, software, and all of the services, including support. You don’t really need to worry about it.

You care instead about the outcomes. You just want the IT to take care of itself, and you get your bill. Then you can easily align that cost with the revenue coming in. As the revenue goes up, you are using more IT, you pay more; revenue goes down, you are using less IT, you pay less. Fairly simple, but very powerful and very popular.

Gardner: Yes, in the past we have heard so many complaints about unexpected bills, maintenance add-ons, and complex licensing. So, this is something that’s been an ongoing issue for decades.

Now with COVID-19 and so many people working remotely, can you provide an example of bringing the best minds on the solutions side to wherever a problem is?

Room with a data center view 

Nolan: One that comes to mind sounds like a simplistic use case, but it’s valuable in today’s climate, with the IT lockdown. Inside of HPE, we use multiple collaboration environments. But we own our own collaboration platform, HPE MyRoom.

We launched a feature in that collaboration platform called Visual Remote Guidance, which allows us to collaborate like we are in the customer’s data center virtually. We can turn on the smart device on the customer side, and they can be enabled, through the camera, to actually see the IT situation they are dealing with.

It might be an installation of some hardware. It could be resolving some technical problem. There are a variety of different use cases we are seeing. Of course, when a system causes a problem and the company has locked-down their entire IT department, they don’t want to see engineers coming in from either HPE or one of our partners.

Visual Remote Guidance allows us to collaborate like we are in the customer's data center virtually. We can turn on the smart device on the customer side and they can be enabled to see the IT situation that they are all dealing with.

This solution immediately became very useful in helping customers because we now have thousands of remote experts available in various locations around the world. Now, they can instantly connect with the customer. They can be the hands and eyes working with the customer. Then the customer can perform the action, guided all the way through the process by their remote HPE expert. And that’s using a well-proven digital collaboration platform that we have had for years. By just introducing that one new additional feature, it has helped tremendously.

Many customers were struggling with installing complex solutions. Because they needed to get it done and yet didn’t want to bring anybody onto their site, we can take advantage of our remote experts and get the work done. Our experts guide them through, step by step, and test the whole thing. It’s proving to be very effective. It’s used extensively now around the world. All of our agents have this on their desktop and they can initiate with any customer, in any conversation. So, it’s pretty powerful.

Gardner: Yes, so you have socialized isolation, but you have intense technology collaboration at the same time.

Ronaldo, HPE InfoSight and automation have gone a long way to helping organizations get in front of maintenance issues, to be proactive and prescriptive. Can you flesh out any examples of where the combination of automation, AI, AIOps, and HPE InfoSight have come together in a way that helps people get past a problem before it gets out of hand?

Stop problems before they start

Pinto: Yes, absolutely. We are integrating all our telemetry from the sensors in our technology with our back-end operational processes. That is InfoSight, a very powerful, AI and machine learning (ML) tool. By collecting from sensors -- more than 100 data points from our products every few seconds -- and processing all of that data on the back end, we can be informed by trends we see in our installed base and gather knowledge from our product experts and data scientists.

That allows us to get in front of situations that could result in outages in the environment. For example, a virtual storage volume could be running out of capacity. That could lead to storage devices going offline, bringing down the whole environment. So, we can get ahead of that and fix the problem for the customer before it gets to a business-degradation situation.

We are expanding the InfoSight capabilities on a daily basis throughout the HPE portfolio. We also should be able to identify, based on the telemetry of the products, what workloads the customer is running and help the customer better utilize all those underlying resources in the context of a specific workload. We also could even identify an improvement opportunity in the underlying infrastructure to improve the performance of that workload.

Gardner: So, it is problem solving as well as a drive for continual IT improvement, refinement, and optimization, which is a lot different than a break-fix mentality. How will the whole concept of operational services shift in your opinion from break-fix to more of optimization and continuous improvement?

Pinto: I think you just touched on probably the most important point, Dana. Data centers today and technology are increasingly redundant and resilient. So really break-fix is becoming table stakes very quickly.

The metaphor that I use many times is airlines. In the past, security or safety of the airline was something very important. Today it’s basically table stakes. You assume that the airline operates at the highest standards of safety. So, with break-fix it’s the same. HPE is automating all of the break-fix operations to allow customers to focus on what adds the most value to their businesses, which is delivering the business outcomes based on the technology -- and further innovating.

The pace of innovation in this business is unprecedented, both in terms of tools and technologies available to operate your environment as well as time-to-market of the digital applications that are the revenue generators for our customers.

Gardner: Gerry, anything additional to offer in terms of the vision of an optimization drive rather than a maintenance drive?

Innovate to your ideal state 

Nolan: Totally. It’s all about trying to stay ahead of the business requirements.

For example, last night Ronaldo and I were speaking with a customer with a global footprint. They happen to be in a pretty good state, but it was interesting talking to them about what would a new desired state look like. We work closely with customers as we innovate and build better service capabilities. We are trying to find out from our customers what is their ideal state, because it’s all about delivering the customer experience that maps to each customer’s use case -- and every customer is different.

I also just met with a casino operator, which at the moment is in a bit of a tough space, but they have been acquiring other casinos and opening new casinos in different parts of the world. Their challenge is completely different than my friend in the insurance industry who was going to cloud-first.

The casino business is all about security and regulation. They are really not in the business of IT -- but IT is still critical to their success. They are trying to understand all the IT that they have.

The casino business is all about security, and a lot of regulation. In his case, they were buying companies, so they are also buying all of this IT. They need help controlling it. They are in the casino business, they are not really in the business of IT, but IT is still critical to their success. And now they are in a pandemic-driven shutdown, so they are trying to figure out how to manage and understand all of the IT they have.

For others in this social isolation climate, they need to keep the business running. Now as they are starting to open up, they need help with all sorts of issues around how to monitor customers coming into their facilities. How do they keep staff safe in terms of making sure they stay six feet apart? And HPE has a wealth of new offerings in that space. We can help customers deal with opening up and getting back to work.

Whether you are operating an old environment, a new environment, or are in a post COVID-19 journey -- trying to get through this pandemic situation, which is going to take years -- there are all sorts of different aspects you need to consider as an organization. Trying to paint your new vision for what an ideal IT experience feels like -- and then finding partners like HPE who can help deliver that -- is really the way forward.

Listen to the podcast. Find it on iTunes. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

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