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Recently, Amazon Cloud Technology and Ruikang Medicine signed a strategic cooperation agreement, creating a model for cloud computing to empower the pharmaceutical industry. Through strategic cooperation, Amazon Cloud Technology will implement the modernization of enterprise applications, the development of micro-services and cloud-native services according to the business scenarios and needs of Ruikang Pharmaceuticals, and empower them through Amazon's innovative methodology and best practices in IT operation and maintenance. It can help Ruikang Pharmaceutical to explore new businesses such as smart pharmacy and digital medical care.
It should be pointed out that the strategic cooperation between Amazon Cloud Technology and Ruikang Medicine is a further upgrade on the basis of its original cloud cooperation. Ruikang Medicine realizes digital innovation. Therefore, to find out their next strategic cooperation ideas, we must first review the journey of Ruikang Medicine to the cloud.
Going to the cloud in an all-round way is the inevitable choice for Ruikang Medicine to meet business needs
Ruikang Pharmaceutical Group is a comprehensive medical service company that directly sells drugs, medical devices, and medical consumables to medical institutions across the country. Its business covers drug distribution, academic services, medical diagnosis, financial technology, traditional Chinese medicine, digital medical care, professional logistics, and comprehensive equipment. Including eight major business segments, the main business income in 2021 will be 21.06 billion yuan, ranking 379th in the Fortune China 500. At present, Ruikang Medicine has more than 8,000 employees, more than 100 holding subsidiaries, more than 8,000 hospitals above the national level two, more than 33,500 primary medical institutions, and more than 30,000 suppliers.
In the past, Ruikang Medicine was supported by a set of SAP system. With the growth of its business, the pressure on the operation and maintenance of the SAP system is increasing. At the same time, the pharmaceutical industry is changing rapidly:
On the one hand, the requirements for industry regulation and compliance are becoming increasingly stringent, and the Food and Drug Administration has the "four most stringent" requirements for the medical industry (the strictest standards, the strictest supervision, the most severe penalties, and the most serious accountability) . Changes in national medical and health policies, medical reform policies or medical insurance policies require Ruikang Pharmaceuticals to respond quickly in order to meet regulatory requirements;
On the other hand, the demand in the pharmaceutical market is changing rapidly, and new businesses and new models are emerging one after another. It requires Ruikang Pharmaceutical to continue to innovate its business in order to keep up with the pace of upgrading of the pharmaceutical industry. Regardless of whether it is to meet regulatory requirements or market demand, higher requirements are placed on Ruikang Pharmaceutical's digital capabilities, and the original localized SAP system is increasingly unable to meet the needs. For this reason, Ruikang Medicine's business has been fully migrated to the cloud and has to be launched.
When you go to the cloud, you need to go to the best cloud
Since you want to go to the cloud, which cloud should you go to? After various comparisons, Ruikang Medicine finally chose Amazon Cloud Technology as its cloud service partner. The main reasons for choosing Amazon cloud technology are:
Global cloud computing leader. Amazon Cloud Technology is the world's leading cloud computing manufacturer, both in terms of market share and technical level, it is at the leading level in the world. Among the seven cloud computing vendors listed in Gartner's 2021 CIPS Magic Quadrant, Amazon Web Services (Amazon Cloud Technology), Microsoft, Google Cloud, Alibaba Cloud, Oracle, IBM, and Tencent Cloud, Amazon Cloud Technology ranks far ahead. in a leadership position. Amazon Cloud Technology has leading advantages in both infrastructure and technical products: In terms of infrastructure, Amazon Cloud Technology currently has 87 availability zones in 27 geographic regions around the world, of which China is the only one other than the United States that has 3 physical zones. Countries and regions in the region, including the Ningxia region operated by NWCD, the Beijing region operated by Sinnet, and the Asia-Pacific (Hong Kong) region, provide infrastructure guarantees for enterprises; in terms of technical products, Amazon Cloud Technology has launched More than 200 cloud services, covering computing, storage, database, network, data analysis, machine learning and artificial intelligence, Internet of Things, mobile, security, hybrid cloud, virtual reality and augmented reality, media, and application development, deployment and management In terms of other aspects, Amazon Graviton, its own chip, has achieved a cost-effective improvement of up to 40% compared with the traditional X86 architecture.
Gartner's 2021 Magic Quadrant for CIPS
The service concept of "supporting the horse, sending a ride". Amazon Cloud Technology upholds the principle of customer first, provides professional cloud services, and excels in industry experience and customer service. At the same time, Amazon Cloud Technology provides a unique innovation culture, training and end-to-end professional consulting services, such as reverse working method, PR/FAQ, etc., laying a solid foundation for Ruikang Pharmaceutical to establish a "cloud-first" organizational culture change. For the pharmaceutical industry, Amazon Cloud Technology has established a dedicated industry solution team to provide professional services for Ruikang Medicine.
As Han Xu, Chairman of Ruikang Pharmaceutical Group Co., Ltd. said, "Amazon Cloud Technology adheres to the concept of 'supporting the horse, sending a ride' is what we look forward to, so that we can empower our employees and give our IT personnel Empowerment. We hope that after Amazon cloud technology empowerment, the team will have stronger "cloud" technology and capabilities; just like last year when we went to the cloud, the Amazon cloud technology expert team led us to the front, and some parts were guided by experts Next, we played on our own, which is a great exercise for the team.”
Rich experience in medical compliance and strong data security service capabilities. The pharmaceutical industry is facing strict regulation, and Amazon Cloud Technology has rich compliance experience and data security service capabilities, which are valued by Ruikang Medicine. Amazon cloud technology has more than 50 certifications in the medical and health industry around the world, including HIPPA in the United States, GDPR in Europe, and China's third-level insurance qualifications. Its customers can directly inherit these certifications. From user identity authentication, security detection, to incident response, etc., Amazon Cloud Technology has mature security solutions that can help customers do a good job in security protection and compliance. Practice has proved that the security service capabilities of Amazon Cloud Technology have withstood the test. The cloud platform built by Amazon Cloud Technology for Ruikang Medicine has successfully defended against more than 200 types of attacks, and the number of attacks has resisted more than 2.19 million times.
Two-step strategy, Amazon cloud technology uses cloud services
Enabling Ruikang Pharmaceutical's business innovation
Such a huge volume of Ruikang Medicine means that its migration to the cloud must be an arduous system engineering. In general, Ruikang Pharmaceutical's cloud strategy is divided into two steps: the first step is to realize the full cloud migration of offline business systems; the second step is to develop cloud-native applications and use cloud services to empower Ruikang Pharmaceutical's business innovation.
The first step is to fully migrate the system to the cloud to reduce costs and increase efficiency.
As the first company in the field of domestic pharmaceutical distribution to fully migrate to the public cloud, Ruikang Medicine's entire process of migrating to the cloud lasted 28 weeks. The migration assessment and planning will be completed in November 2020, the architecture design on the cloud will be completed in February 2021, the implementation of the landing zone on the cloud will be completed in April, and the implementation of ALL-IN migration will be completed in July. During these 28 weeks, more than 130 team members participated, experienced 7 migration drills, 4 migration batches, 23 sprints, 1706 transactions, more than 60 deliverables, and the final migration data volume exceeded 50TB. From all perspectives, Ruikang Medicine's cloud migration case can be regarded as a benchmark for cloud migration in the pharmaceutical industry.
In the end, with the support of the Amazon cloud technology professional service team, Ruikang Medicine has successfully migrated the group's SAP and its surrounding production systems to the public cloud platform, and has successfully migrated more than 50 sets of enterprise application systems and more than 200 servers to the public cloud platform. Amazon cloud technology. After fully migrating to the cloud, Ruikang Medicine has achieved various results, including: the system stability has been significantly improved. Using the computing services of Amazon cloud technology, the cloud platform has achieved high availability of up to 4 nines (99.99%); the performance of the SAP system has been improved , and the average delay from the central components of the system to the data warehouse has been reduced from 22 milliseconds to 9 milliseconds, realizing cloud computing Respond quickly on the Internet; reduce IT operation and maintenance costs . After the system is migrated to the cloud, it avoids the long process from purchase to installation. Now it only takes a few hours to quickly set up the required servers, which can save more than 100,000 yuan per month. system maintenance costs; obtain system automatic switchover and disaster recovery capabilities , after fully cloud-connected, Ruikang Medicine's SAP nodes support automatic switchover across availability zones, and its cross-regional disaster recovery capabilities are of great significance for ensuring business continuity.
So far, Ruikang Medicine has completed the first step of going to the cloud. At this stage, the value of Shangyun to Ruikang Medicine is mainly reflected in reducing IT costs and improving the efficiency and reliability of IT systems. However, the digital transformation of enterprises should definitely not stop here. The greater value lies in the realization of digital transformation through technology empowerment, so as to achieve application innovation and business growth. This is also the second step of Ruikang Medicine's cloud strategy.
The second step is business innovation based on cloud-native applications.
Just as Wang Chenghua, general manager of the professional services department of Amazon Cloud Technology Greater China, said, "The whole process of migrating to the cloud is divided into two steps, adhering to the rhythm of 'small steps and quick runs', which is also our comparison between migrating to the cloud and digital transformation in traditional industries A recommended approach. The first step is to fully migrate the original offline applications to the cloud. The second step is to quickly use and bring out the advantages and capabilities of the cloud infrastructure after going to the cloud.” After completing the system After fully migrating to the cloud, Ruikang Medicine's next focus is to combine the cloud computing capabilities of Amazon Cloud Technology with its own medical business to achieve business innovation.
According to the information disclosed in the 2022 semi-annual report of Ruikang Medicine, its next business strategy will be adjusted in two aspects: on the one hand, the company will gradually realize the adjustment of the business field from "pursuing breadth" to "pursuing precision", substantially improving the company's core business strategy. Market service quality, market share and market bargaining power. On the other hand, on the basis of stabilizing the traditional business, actively deploy new business sectors such as innovative Chinese medicine sector and digital medical sector, and look for new business growth points. In these respects, the cloud services provided by Amazon Cloud Technology can play an important role.
In the digital medical sector, Ruikang Medicine plans to create a closed loop of managed medical care by establishing rational drug management in the links of "clinical use, procurement and supply, payment and claim settlement, and disease management". The business of this segment includes: pharmaceutical benefit management (PBM), health insurance third-party service management (TPA), hospital logistics (SPD), hospital information management (HIS), hierarchical diagnosis and treatment management, chronic disease management and other business modules. According to the financial report of Ruikang Medicine, in the first half of 2022, the digital medical business will achieve sales revenue of 37.83 million yuan. Next, with the help of Amazon cloud technology services, Ruikang Medicine's digital medical business innovation based on cloud-native applications will be its key breakthrough direction.
In addition, Ruikang Medicine continues to explore innovative cloud applications. For example, through self-developed application software, it provides commercial insurance institutions with health insurance claim settlement services, covering nearly 100 commercial insurance institutions and covering more than 40 million insured customers; self-developed supply chain B to B "Yiezhangwang" platform, cloud HIS "Zhicheng Cloud" platform, terminal marketing cloud platform "Yaozhongda" and other Internet platforms have served nearly 3,500 upstream suppliers, and 33,500 suppliers' business personnel and agent users daily use the platform, effectively covering downstream end customers 23,000 homes. In the future, the digital medical segment will further focus on the development strategy of the group's traditional Chinese medicine, and actively build a digital ecosystem of traditional Chinese medicine.
Ruikang Medicine innovates and develops on the basis of traditional Chinese medicine theory, develops an intelligent remote diagnosis and treatment system combining Taoist medicine theory and big data, and builds a terminal "smart pharmacy" based on the Internet and the group's existing channel network , making full use of Ruikang Pharmaceutical's existing medical institution resources and channel coverage resource advantages, to realize the seamless connection between the prescription system and the pharmacy prescription system, and provide patients with "one-stop" pharmaceutical services.
The digital economy has become the core growth engine of the economy, and the core of the digital economy is to empower thousands of industries with digital technology. Among them, going to the cloud is an important step in the digitalization of enterprises. Developing cloud-native applications and business innovations on the basis of going to the cloud can help enterprises achieve digital upgrades.
According to the data of China Academy of Information and Communications Technology, industrial digitization has become the absolute main force of my country's digital economy, accounting for more than 80%. Moreover, the growth rate of industrial digitization is higher than the overall growth rate of the digital economy. Enterprises like Ruikang Pharmaceutical have completed their digital transformation, like a trickle of water, and together they have become a great river of industrial digitalization in our country.
The internal structure data source of China's digital industrialization and industrial digitalization: Data compiled by the Institute of Information and Communications Technology
"2022 China Data Intelligence Industry Map Version 1.0"
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