EXPRESS SCRIPTS

Express ScriptsEnterprise Data WarehouseJoe Federer, Senior Director

A bit about the Journey

• Introduction

• Business Story

• Implementation – SuperBowl Sunday

• Enterprise Logical Data Model

• Summary

“Our health is far behind the progress of medical science…Proper medical care is so expensive that it is

out of reach of the great majority of our citizens.”

Who Said It???

• George W. Bush• William J. Clinton• Lyndon B. Johnson• John F. Kennedy• Harry S. Truman State of the Union address - 1949

Demographics Are Crucial

• growing

• aging

• getting heavier

The Population is…

Who Is Express Scripts?

Contact Centers• Arizona• Colorado• Georgia• Michigan• Minnesota• Missouri• New Mexico• New York• Pennsylvania

Home Delivery• Arizona• Missouri• New Mexico• Pennsylvania

Corporate Headquarters:St. Louis, Missouri

Coming

soon

to a

campus

near you

Specialty Platform

Labor/ NE/

SG&A

D IVERSIFIED®

Managed Care /

Rebates / SG&ALarge

Employer/ Mail

Middle Market

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

Revenue Growth with AcquisitionsM

illion

s

Teradata Implementation - Progression

Operational DWDB-22 TB

Q1

2007

Adjudication

Pharmacy Reference

stage

DB-2

Decision SupportRS-6000 SP-2

8 nodesAIX 4.3DB-2

4 TB / 1.8 TB

Feb

2006

Data MartsRS-6000 SP-2

2 nodesAIX 5.1DB-2

800 GB / 200 GB

Ap

ril 2006

ClientAd-HocRS-6000 SP-2

1 nodesAIX 5.1DB-2

200 GB / 50 GB

Ap

ril 2006

Client PortalP690

AIX 5.1UDB

2 TB /800 GB July

2006

Teradata

Data Marts

Silo Silo Silo Silo Silo Silo SiloSilo

Silo SiloSiloSiloSiloSilo SiloSilo

ProdMgt

ClaimCallCtrOpsMktg SalesFin

On

-g

oin

g

New EnterpriseLogical Data Model

“Tall and Skinny” to EDW

Claim

s

Mem

ber

GL/Fin

ance

Benefit

Presc

riber

Home

Deliv

ery

Drug

Sales

Contact

Specia

lty

Current

% of Subject Area Built Out

Claim

s

Mem

ber

GL/Fin

ance

Benefit

Presc

riber

Home

Deliv

ery

Drug

Sales

Contact

Specia

lty

Goal State

% of Subject Area Built Out

“Tall and Skinny” to EDW

ContactContact

ClaimsClaims

MemberMember

BenefitBenefit

GL/FinanceGL/Finance

PrescriberPrescriber

DrugDrug

SalesSales

Home DeliveryHome Delivery

SpecialtySpecialty

t1 t2 t3 t4 t5

Retail Pharmacy

Home Delivery

Pharmacy

PatientCare

Advocate

Client

Stratus

Anchor

Compass

Outbound / Express Contact

Web Servers

Data Warehouse and Reporting

CORBAIntegrationServices

Member

Trend Central· Clients· CPMs

Internal Analytics· Product Management· Provider Relations· Finance· BACS

Member Portal

Informatica

CICSAgents

EnterpriseEligibility

WAN

Home Delivery Systems

Teradata

Business Objects

Web Servers

Data Warehouse and Reporting

Informatica

Teradata

Business Objects

Web

Servers

Goal State Architecture – EDW Operational Data Repository

• New Integration Technologies to provide a consistent mechanism for application integration and data inquiry services (ESB/SOA).

• High availability in the Data Warehouse Teradata, Informatica, Business Objects, and Web environments.

• Active feeds from operational systems into the warehouse via consistent integration technologies.

• Inquiry services reference a single data source in many cases.

• Operational Business Intelligence is enabled by loading transactions into the EDW in near real-time.

Enterprise Service Bus

Operational BI

Enterprise Logical Data Model

And Now…

• A shameless sales pitch for a career at Express Scripts…

Our Work Matters

• We serve patients and clients

• We align our interest with clients

• We add value to help us grow

• We make this a positive place to work

14

Information Technology

• We develop great people

• We deliver world-class system performance & reliability

• We build solid platforms and architecture

• We deliver innovative business solutions

• We develop solid strategic plans

We are developing top talent for tomorrow’s leaders.

How to Apply:

• Visit www.express-scripts.com

• Click on Careers under “Our Company”

• Click on Opportunities at Express Scripts

• Select a location or “All” in the Location drop-down list

• Select “Intern Opportunities” in the Job Category drop down list

• Fill out the application online

Watch for Internship job descriptions online after Oct. 16th

Conclusions

• Good Roadmap

• Fostered Executive Buy-in

• Continue to Deliver on Strategy

• And… consider Express Scripts…

BACKUP

Desired Situation

• Data Warehouse as an enterprise information asset.

• Business driven implementation.• Re-use and leverage of intellectual property.• Phased delivery for managing risk and

maximizing ROI.• Efficiency in deployment.• Extensibility for new applications and data

content.• Consistent enforcement of privacy and

security policies.

An Analogy

Imagine that you are building a city...

How would you go about doing it?

An Analogy

First Method: Construct neighborhoods of the city as required on an as-needed (ROI justified) basis.

• Each neighborhood is constructed based on the needs of its constituency and pre-existing neighborhood infrastructure.

• Each constituency pays only for its neighborhood construction costs.

• As the city evolves and expands, invest in appropriate re-engineering to meet new requirements.

An Analogy

Example Result: Boston.

• Numerous one-way streets and dead ends.

• Difficult to navigate.• Non-extensible without

major costs.– e.g., “The Big Dig”

• New neighborhoods not well integrated.

An Analogy

Second Method: Invest in an up-front city plan as a “blueprint” for city design.

• Requires infrastructure investment prior to constructing first neighborhood.

• Funded by “city tax” across all constituents.• City plan provides high level framework, not the detailed design.• Each neighborhood construction project adheres to the city plan

(blueprint).• Each constituency pays for its detailed design and construction

costs. • Extensibility built into the city plan.

An Analogy

Example Result: Toronto.

• Investment and vision applied prior to actual construction.

• Extremely “user friendly” city.• Extensibility of infrastructure anticipated in city

design and overall cost is minimized.– e.g., Toronto subway.

• New neighborhoods easily added without straining infrastructure.

An Analogy

The Enterprise Data Model for your Data Warehouse is like the City Plan for designing a Metropolis.

Efficient and extensible deployment of a Data Warehouse requires an Enterprise Data Model.

Note that disciplined adherence to blueprint is a pre-requisite to success.

25

Implementation and Deployment

There is a spectrum of implementation approaches for a data warehouse – each with a different set of investment tradeoffs.

1. Independent PDM (Physical Data Model) for each domain of analytic applications (e.g., marketing, pricing, medical management, etc.).

2. Incremental deployment of enterprise PDM with re-engineering appropriate to each phase of delivery.

3. Phased deployment of PDM within an enterprise LDM framework.

26

Implementation and Deployment

The Enterprise Logical Data Model provides a framework for building the 80% once rather than once for each domain of analytic applications.

• Estimated cost for independent multi-mart approach is 70% higher than for phased implementation using an Enterprise LDM framework.

• Estimated cost for incremental deployment of enterprise PDM without Enterprise LDM is 20-30% higher due to re-engineering requirements in each phase.

27

Implementation and Deployment

The blueprint provided by an Enterprise Logical Data Model allows extension of data content in the warehouse via enhancement to data domains and data relationships...

...without re-engineering the data model for each new application or data source.

Implementation and Deployment

Avoid “big bang” approach to data modeling:

• Goal is to create a conceptual data model to act as blueprint for the enterprise.

• Do not get caught up in detailed sub-typing, attribution, or data typing for entities.

• Complete conceptual model and opportunity analysis within four months of start date.

Funding Model

• High-level design of conceptual ELDM performed across business units and funded as infrastructure investment as pre-requisite to data warehouse construction.

• Detailed design and population of ELDM is justified by specific ROI opportunities.

• Conceptual ELDM deliverable is focused on what is necessary for extensible delivery of the data warehouse solution.

• Detailed design of ELDM is delivered incrementally with each ROI opportunity.

Billing

ChurnGrowth

Customer

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Member

Member Reporting

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Member

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Business Value

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DepartmentParadigm

EnterpriseParadigm

Member Reporting

(150)

(150)

Think Big, Start Small

Member +Claims

Medical Management

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

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Customer

Member

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DepartmentParadigm

EnterpriseParadigm

MemberReporting +

Medical Management

(120)(150)

(260)

(150)

Think Big, Start Small

Member + Claims

MedicalManagement

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Billing

ChurnGrowth

Customer

Member

InforceReporting

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s

Revenue

IT Development“The

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Single view of enterpriseStore once, use many

Optimized cost structure

Member

IT Development“The

ITProvider”

Business Value

“TheBusinessUser”

Member + Claims + Revenue

DepartmentParadigm

EnterpriseParadigm

Member Reporting + Medical Management +

Financial Analysis

Financial Analysis

(120)

(380)

(110)(150)

(260)

(150)

Think Big, Start Small