The importance of a comprehensive adoption decision in the presence of perceived opportunities: The testresults case

Abstract

This case discusses the adoption of an e-business initiative by Ashvini Hospitals Group (AHG), a leading integrated healthcare provider in India. It illustrates how adoption decisions are motivated by bandwagon effects and result in a non-comprehensive adoption plan, which results in unforeseen problems later on. The initiative, Testresults, was aimed at enhancing the services offered to patients, and in the process, also provide significant benefits to two other initiatives of the organization. However, a change in the fortunes of those initiatives led to a lack of motivation for AHG to continue with Testresults, even though the service required very little investment of any kind and was technologically quite simple. The case also demonstrates how, in the absence of formal contracts between organizations involved in the adoption process, coordination may become a casualty when there is a change in motivation of one or more parties. Finally, the case also highlights the importance of creating clear value propositions for internal as well as external stakeholders in order to get the required cooperation. Copyright © 2004, Idea Group Inc.