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McKesson Engineering

To advance health outcomes for all by creating a sustainable healthcare ecosystem through innovative technology solutions.

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To advance health outcomes for all by creating a sustainable healthcare ecosystem through innovative technology solutions.

Strengths

  • INFRASTRUCTURE: Robust healthcare IT infrastructure serving 90% of US hospitals
  • INTEGRATION: Seamless integration capabilities across health systems
  • SCALE: Unmatched scale processing 4M+ orders daily with 99.9% accuracy
  • DATA: Access to vast healthcare data from 500M+ patient interactions
  • EXPERTISE: Deep healthcare domain expertise spanning 190+ years

Weaknesses

  • LEGACY: Aging legacy systems requiring significant modernization
  • TALENT: Challenges attracting top tech talent vs Silicon Valley firms
  • INNOVATION: Slower innovation cycle times compared to tech-first firms
  • TECHNICAL_DEBT: Considerable technical debt hampering agility
  • INTEROPERABILITY: Inconsistent interoperability across platforms

Opportunities

  • CLOUD: Full migration to cloud for enhanced scalability & security
  • AI: Implementation of AI for predictive analytics in supply chain
  • INTEROPERABILITY: Leading healthcare industry interoperability standards
  • EXPANSION: International market expansion through tech platforms
  • PARTNERSHIPS: Strategic tech partnerships with leading innovators

Threats

  • COMPETITION: Big tech companies entering healthcare IT space rapidly
  • SECURITY: Increasing cybersecurity threats targeting healthcare data
  • REGULATIONS: Evolving regulatory compliance requirements
  • DISRUPTION: Disruptive business models from digital-native startups
  • TALENT_WAR: Intensifying competition for specialized tech talent

Key Priorities

  • MODERNIZATION: Accelerate legacy system modernization to cloud
  • INNOVATION: Enhance innovation capabilities through talent acquisition
  • DATA_STRATEGY: Develop comprehensive data strategy for analytics value
  • SECURITY: Strengthen cybersecurity posture against growing threats

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To advance health outcomes for all by creating a sustainable healthcare ecosystem through innovative technology solutions.

MODERNIZE

Accelerate digital transformation across the enterprise

  • CLOUD: Migrate 75% of critical workloads to cloud by Q4, achieving 30% improvement in scalability
  • DECOMMISSION: Retire 40+ legacy systems, reducing technical debt footprint by 35% and saving $12M annually
  • MICROSERVICES: Implement microservices architecture for 8 core platforms with 99.99% availability target
  • DEVOPS: Achieve 85% automated deployment across all engineering teams, reducing deployment time by 70%
INNOVATE

Accelerate healthcare innovation through technology

  • TALENT: Hire 150 engineers in AI, data science, and cloud, achieving 95% offer acceptance rate
  • LABS: Launch McKesson Innovation Labs with 5 healthcare technology proofs-of-concept by Q3 end
  • PROCESS: Reduce new solution time-to-market by 40% through improved engineering methodologies
  • PARTNERSHIPS: Establish 3 strategic technology partnerships with leading healthcare innovators
LEVERAGE DATA

Transform healthcare data into actionable insights

  • PLATFORM: Deploy unified data platform supporting 10PB of healthcare data with sub-5ms query times
  • GOVERNANCE: Implement enterprise data governance framework with 100% compliance across business units
  • ANALYTICS: Launch 5 new predictive analytics models achieving 85%+ accuracy in healthcare workflows
  • ACCESSIBILITY: Enable self-service data access for 80% of business users with appropriate controls
SECURE

Build world-class security for healthcare data

  • POSTURE: Achieve top quartile security posture rating in healthcare benchmarks by Q4 end
  • AUTOMATION: Automate 85% of security monitoring and response processes, reducing MTTR by 60%
  • COMPLIANCE: Ensure 100% compliance with healthcare regulatory requirements across all platforms
  • TRAINING: Complete advanced security training for 100% of engineering staff by Q3 end
METRICS
  • UPTIME: 99.95% system availability across all critical platforms
  • VELOCITY: 35% increase in software delivery performance metrics
  • SATISFACTION: 80+ internal NPS for technology services from business units
VALUES
  • Innovation
  • Integrity
  • Customer-First
  • Accountability
  • Respect

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Align the learnings

McKesson Engineering Retrospective

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To advance health outcomes for all by creating a sustainable healthcare ecosystem through innovative technology solutions.

What Went Well

  • PERFORMANCE: Q4 revenue reached $76.3B, exceeding forecasts by 3.4%
  • OPERATIONS: Technology system uptime achieved 99.92%, up from 99.87%
  • INNOVATION: Successfully launched 3 new digital health solutions on time
  • EFFICIENCY: Technology operational expenses reduced by 8% year-over-year
  • SECURITY: Zero major security incidents for third consecutive quarter

Not So Well

  • INTEGRATION: Post-acquisition technology integration delays in 2 markets
  • TALENT: Engineering talent attrition rate increased to 17% from 12%
  • PROJECTS: 3 key technology initiatives missed delivery timelines by 30%+
  • TECHNICAL_DEBT: Legacy system modernization program behind schedule
  • INNOVATION: New product development cycle times 40% longer than targets

Learnings

  • METHODOLOGY: Agile transformation showing 30% improved delivery velocity
  • ARCHITECTURE: Microservices approach proving more scalable than monolith
  • TALENT: Remote-first policy increased talent pool access by 65%
  • PARTNERSHIPS: Strategic vendor partnerships reduced costs by 12%
  • AUTOMATION: DevOps automation reduced deployment time by 60%

Action Items

  • TALENT: Implement enhanced retention program for engineering leadership
  • MODERNIZATION: Accelerate legacy platform migration to cloud by Q3 2025
  • AGILE: Complete Agile transformation across all technology teams by Q2
  • SECURITY: Deploy enhanced security monitoring across all platforms
  • DATA: Establish centralized data governance council and standards

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To advance health outcomes for all by creating a sustainable healthcare ecosystem through innovative technology solutions.

Strengths

  • DATA: Access to vast healthcare datasets for AI model training
  • INTEGRATION: Well-established integration with clinical workflows
  • ADOPTION: Existing customer base for AI solution deployment
  • COMPLIANCE: Strong expertise in regulatory compliance for AI
  • TALENT: Growing team of AI specialists focused on healthcare

Weaknesses

  • FRAGMENTATION: Siloed AI initiatives across business units
  • INFRASTRUCTURE: Legacy systems limiting advanced AI implementation
  • TALENT: Lack of specialized AI talent in healthcare domain
  • GOVERNANCE: Incomplete AI governance framework for healthcare
  • INVESTMENT: Insufficient R&D investment compared to tech competitors

Opportunities

  • AUTOMATION: AI-powered automation of 65% of manual processes
  • PREDICTIVE: Predictive analytics for supply chain optimization
  • PERSONALIZATION: AI-driven personalized patient care pathways
  • DIAGNOSTICS: AI assistance for diagnostic and treatment decisions
  • EFFICIENCY: Operational efficiency gains through ML algorithms

Threats

  • COMPETITION: Big tech firms offering healthcare-specific AI solutions
  • REGULATION: Evolving AI regulations in healthcare sector
  • ETHICS: Ethical considerations in healthcare AI implementations
  • ADOPTION: Clinician resistance to AI-augmented decision making
  • EXPECTATIONS: Unrealistic market expectations for AI capabilities

Key Priorities

  • CENTRALIZE: Establish centralized AI Center of Excellence
  • TALENT: Aggressive AI talent acquisition and development program
  • INFRASTRUCTURE: Modernize data infrastructure for AI readiness
  • USE_CASES: Implement high-value AI use cases with measurable ROI

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AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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