Value-based care delivery and customer-centric approaches will encourage innovative novel solutions and add value for customers, finds Frost & Sullivan's Transformational Health Team
LONDON, Oct. 20, 2016 /PRNewswire/ -- The healthcare industry is entering a phase of rapid transformation, brought about by emergence of new technologies and the need to align with emerging care compensation models. The digitization of products, services and commerce models are democratizing current healthcare systems. This helps unlocking new, previously inaccessible segments which traditionally had high gatekeeper costs. Spurred by these shifts in the market environment, medtech and pharma companies are strategizing on how to move beyond simple product or pill based sales models towards customer-centric 'as a service' solutions (Product as a Service, Platform as a Service and Data as a Service, Insights as a Service).
Healthcare 2020—Business Model Transformation Guidebook is new analysis from Frost & Sullivan's Visionary Healthcare Growth Partnership Service program.
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"CEOs should pay attention to developing innovative business models to monitize emerging opportunities. Scalability is the most critical success factor," said Frost & Sullivan Transformational Health Industry Analyst Kamaljit Behera. "Collaboration and open-source innovation are key ingredients for future restructuring. Companies such as Apple, Google, IBM Watson and Intel will continue to compete outside their domain, forcing traditional healthcare companies to change their dominant business models."
Actionable health outcome data will be the new battleground in the healthcare industry. Walmart is planning to take bold steps, from introducing disruptive product-service bundling packages to aiming to become a primary care provider. Medtronic's Diabetes Management's shift to an intelligent-based solutions business model, commitment to differentiating its product, and value to end users has positioned it two to three years ahead of market competition.
Healthcare consumerism will boost models such as crowdsourcing and mass customization, enable price transparency, and provide companies with more flexibility by lowering inventory carrying cost. These models also promote the culture of open innovation, enabling data collection on customer preferences, which will lead to optimized new product developments.
From a regional perspective, the Asia-Pacific market is ready to embrace innovative business models with growth opportunities existing in chronic disease management, acute homecare, telehealth, and telehealth-enabled homecare solutions. Large vendors, which can provide a one-stop solution, are in high demand. The region is emerging as an epicenter for regenerative medicine launches.
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Healthcare 2020—Business Model Transformation Guidebook
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