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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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Align the strategy

McKesson Engineering SWOT Analysis

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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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Align the plan

McKesson Engineering OKR Plan

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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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Drive AI transformation

McKesson Engineering AI Strategy SWOT Analysis

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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