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Business models at the intersection of healthcare and education - Accenture
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Business models at the intersection of healthcare and education - Accenture

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  • Between 2010 and 2020 India would have added 100 million more to its population, making it a 1.3 billion strong nation by 2020. 700 million of these people will be of working age, and will need to be literate, aptly skilled and adequately healthy to make the desired contribution to the country’s economy.Hence, achieving the targets set by the Millennium Development Goals and the National Skills Development Mission are imperative to realizing the dividends from India’s demographic shift.
  • Education and Healthcare are at the heart of both the Millennium Development Goals as well as the National Skills Development Mission.And both education and healthcare go hand-in-hand when it comes to developmental issues. Imagining one in isolation of the other is unwise. Targets set for education cannot be achieved without achieving targets on the healthcare front.Education targets of higher enrollment and completion, can never be achieved if there are serious inadequacies of healthcare facilities, if people are highly prone to diseases like HIV, tuberculosis and malaria, or if infant and maternal mortality rates continue to be high.Similarly, healthcare targets such as lowering infant mortality cannot be achieved if majority of population fails to complete education and is unable to be gainfully employed. Not only will they be unaware of healthcare issues, they will also not be able to afford healthcare services.It is therefore essential to look at these two basic development needs as one; build plans and set goals knowing that issues of education and healthcare have to be addressed simultaneously.
  • India has a lot left to achieve in very little time if it has to remain globally competitive.The 12th five year plan has set a target year of 2017 to achieve 8.2% average annual GDP growth, and reduce the number of people below the poverty line by a third (from 30% to 20% of total population). This, while targets set by the 11th five year plan are yet to be achieved.The Millennium Development Goals have set steep targets for the year 2015, for under-5 mortality to reduce by two thirds, and maternal mortality to reduce by three fourths.The National Skills Development Mission has set a target of 2022 to skill 500 million people, while there continues to be an annual shortfall of 7 million skilled people in the country.India will need to significantly ramp up its investment, while simultaneously improving its operational efficiency to be close to achieving these targets.Increasing investment will prove more difficult than ever before, as resources are scarce and the world economy undergoes a testing phase.Therefore, India must look at innovative solutions to improve its implementation strategies and operational efficiencies.
  • It is imperative that all our efforts in the areas of education and healthcare, be it public or private, be looked at through a lens of a business model.This will ensure that while we deliver benefits to the society and achieve the target impact, we do not lose sight of feasibility and efficiencies of each such effort.Hence at Accenture we believe that whatever may be the project, private, non-profit or government, having a business model in place significantly enhances the chances of success.In our particular case of education and healthcare, we must try and look for synergies while executing each of the eight elements of the business model. Engaging simultaneous synergies of scale and scope will help us achieve our goals with ease.To do so, we need to ask ourselves some key questions:What channels can we use that can serve both education and healthcare?How can we have a customer value proposition that addresses demands of both education and healthcare among our beneficiaries?How can we reduce costs by building a cost structure that is commonly leveraged for both education and healthcare?What kind of profit formula / revenue model must we adopt across education and healthcare to ensure long-term project feasibility?
  • There already exist numerous programs and platforms that can be transformed into the desired intersections education and healthcareTheAanganwadi program by the Indian government is well known for its efforts towards combating child hunger and malnutrition. It also acts a center to provide care to expectant and nursing mothers. According to government figures, Aanganwadis reach about 58.1 million children, primarily infants, toddlers and pre-schoolers, in addition to 10.23 million women/mothers. What stops Aanganwadis from becoming education hubs that impart basic literacy modules to children in addition to educating mother about family planning and family health. These centers could also become hubs that spark up entrepreneurial streaks among women/mothers, enlightening them about income opportunities that may help support their growing families.Another interesting program called the Smile Train provides free cleft surgery and treatment to children across India and the world. In India, This Smile Train has treated 300,000 children already and aims to treat more than 50,000 this year alone. The original concept was an actual train that would travel around developing countries, providing free surgery for poor children and free training for doctors, leaving behind well-trained doctors, free equipment and self-sufficient communities. While logistical issues made having a physical train impossible, its 170+ partners and projects in India can very easily become channels for primary education.Private platforms like ITC’s e-Choupal have immense reach and can be leveraged as a medium to impart education and healthcare both. The 6500 odd e-choupals today reach 4 million farmers across 40,000 Indian villages. Being computer and internet enabled, these centers can help deliver education modules as well as tele-medicine solutions right at to the villages at minimum costs.Accenture’s skills to succeed program aims to equip 250,000 people world over with job skills by 2015., having already helped skilled 160,000 people by the end of fiscal 11. Today Accenture has more than 200 collaborative initiatives world over to train people in multiple skills. Accenture employees volunteer to help build relevant skills in their own communities. We believe that our skills to succeed program can also become a tool to deliver healthcare solutions to the people.
  • Technology is going to play a key role in acquiring and deploying insights across the business model. Moreover, technology cannot be blindly applied. We need to recognize that a large section of our customers will be communicating in various forms, at times even through their eyes and not necessarily through speech.We need to ask ourselves if we are prepared with the necessary tools to capture their responses and transform it into an insight.We can surely use a combination of cloud computing and analytics to capture a lot of new data into the space of customer value proposition and transform it into insight very quickly using sophisticated analytical tools. Cloud applications, platforms and infrastructure will help reduce costs, increase productivity, and support core business functions.We can accelerate the growth, improve sales productivity and reduce customer-care costs to increase the value of their customer relationships and enhance the economic value of the initiative’s brand. Multi-channel management tools can help optimize channel strategies while ensuring maximum impact and visibility.
  • Putting in place an organizational architecture to support the initiative’s vision and mission is key. And we recommend that the best way to go ahead is to learn lessons from the high performers.ITC’s e-choupal offers a great example of how reform in organizational architecture facilitates the journey of an organization to simultaneously implement a set of inclusive initiatives without sacrificing commercial viability.While drawing heavily from its original operating model, ITC found that reforms to its organizational architecture were essential to execute e-Choupal. The firm restructured the architecture by augmenting employees’ roles through two additional layers of responsibilities.The first new layer was designed to address the lack of granular information about low-income customers’ tastes and preferences on a dynamic basis. The secondlayer of responsibilities, helped capture operational efficiencies from the growing scale.While e-Choupal improved access to markets and other farm inputs for farmers, ITC did not lose sight of the feasibility aspect of the project. E-choupal became a tool to ensure a stable source of raw material for much of ITC’s food business.In addition, ITC allowed various other businesses across sectors, to utilize and leverage its e-choupal channel to market their products, in turn improving access to a variety of products for farmers, that were previously unavailable or over unheard of in rural India.Such cross-utilization strategies have made e-Choupal a feasible and profitable enterprise.
  • Having a robust business model in place requires development of certain winning capabilitiesHaving strong customer empathy becomes even more important when the customer is buying/demanding development. Understanding the complementarity of education and healthcare as a customer “want” is core to developing strong empathy.Similarly, partnering with entrepreneurs who have successfully implemented inclusive business models, is vital to make business models in the area of education or healthcare work. Entrepreneurs who have worked in either of the fields, hold a real, on-the-ground perspective of the interconnectedness of the two issues.Be it products or executable plans, fail-fast prototyping must be adopted to rapidly adjust to real requirements of the beneficiaries. Again, understanding that education and healthcare efforts will need to go hand-in-hand is critical to deploying pilots or prototypes that have a higher success rate.
  • I would leave you with a quote from the famous American poet Emerson. Clearly sums up what we are against and the attitude we require to address the challenge at hand. Thank you

Business models at the intersection of healthcare and education - Accenture Business models at the intersection of healthcare and education - Accenture Presentation Transcript

  • India BlossomsBusiness models at the intersection ofeducation and healthcare eindia.eletsonline.com
  • 2010-2020 is the “human capital” decade for India Two key targets Attaining ‘Millennium Development Goals’ Skilling around 500 million by 2020 (MDGs) by 2015Achieving these targets will help position India as a nation capable achieving its growth targets with inclusivity and compassionCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 2
  • Scaling, high-quality and accessible healthcare and educationservices is at the intersection of achieving these two targets Education Millennium Development and Skilling around 500 Goals million by 2020 healthcareCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 3 View slide
  • While India has made considerable progress insome areas, a lot more continues to be desired inthe area of healthcare and education delivery • AS OF 2007-08, ONLY 47% OF • SURVIVAL RATE OF PUPILS THE BIRTHS WERE STARTING GRADE I WHO ATTENDED TO BY SKILLED REACH GRADE V WAS ONLY HEALTH PERSONNEL. 76% IN 2008-09. • AS OF 2009, INDIA • INDIA CAME SECOND TO CONTRIBUTED 24% TO THE LAST ONLY AHEAD OF TOTAL NEW CASES OF KYRGYZTAN IN TUBERCULOSIS DETECTED MATHEMATICS IN THE WORLD. COMPETENCY • IT CAME LAST EVEN BEHIND • IN 2010, INDIA STILL KYRGYZTAN WHEN IT CAME REGISTERED 1.6 MILLION TO COMPETENCY IN NEW MALARIA CASES. SCIENCE Healthcare EducationCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 4 View slide
  • Unfortunately, the clock is tickingfast and resources are scarce…so andCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 5
  • The possible solution… …Copyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 6
  • To achieve this solution at a commercially viable scaleand impact, we need to put in place a viable businessmodel Illustrative questions Key partnerships Customer Cost structure Key resources segments Key activities • Who should be the • How can cost of partners to deliver • How should • How should one delivering be scalable and high- • Who should the arrive at the best customers be minimized initiative fund-raise quality impact ? segmented? combination of without losing from? talent and impact of technology? initiatives ? • How can the Customer value proposition quality of benefit be multiplied at • How should the customer value proposition be mapped correctly? the customer end without increasing • How can one evaluate the appropriateness of customer value proposition mapped his/her cost? at minimal costs?Channels Revenue stream• What are the channels available • What is the concept of profitable-revenue in the context of such projects? to simultaneously deliver education • What should be the strategy to scale and not lose out on quality simultaneously? and healthcare programs? • How can revenues be generated and collected effectively? Copyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 7
  • We recommend a three step method to launchsuch a commercially viable business model STEP 1: IDENTIFY EXISTING STEP 2: USE SOPHISTICATED STEP 3: DEVELOP THE SCALABLE PLATFORMS AND ANALYTICAL AND TECHNOLOGY RELEVANT ORGANIZATIONAL PARTNERS AVAILABLE TO TOOLS TO GARNER AND ARCHITECTURE AND BUILD DELIVER HEALTHCARE AND DEPLOY KEY INSIGHTS ACROSS RELEVANT FUNCTIONAL EDUCATIONAL SERVICES THE BUSINESS MODEL CAPABILITIES SIMULTANEOUSLYCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 8
  • There is no dearth of existing scalable private and public infrastructurewhich can be utilized to simultaneously provide healthcare andeducation and in some cases limited success has been achieved too Illustrative Education Healthcare Neutral examples Public PrivateCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 9
  • To garner and deploy insights across the business model,utilize sophisticated analytical tools and processes Cloud based tools Inclusive stakeholder analysis tool-kit Advanced customer analytics, Customer segmentation and analytical record models Multi-channel management tools Identify technologies to scaleCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 10
  • To put in place a robust organizational architecture learn from existing successful experiences and invest in creation of the sameBy reforming its organizational architecture ITC successfully launched e-Choupal which besides empowering farmers helps ITC procure best varieties of wheat at competitive prices grains for differentiating its Aashirvaad Atta. ITC invests a certain percentage of the profit from Aashirvaad Atta sales into its ‘Boond se Sagar’ initiative focused on moisture conservation and making water available to very small & marginal farmers. Copyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 11
  • Invest in creation of functional capabilities Devise innovative ways to build a sharper understanding of customer “wants.” Invest Develop strong in creating a band of “innovation scouts” – teams that will spend time with customer empathy low-income groups to identify their “wants” and propose possible innovations. Form partnerships with “inclupreneurs” (entrepreneurs who have Partner with right successfully implemented inclusive business models) to complement in-house ‘inclupreneurs’ functional capabilities making inclusion initiatives viable and sustainable. Make products undergo rapid prototyping, incorporating all necessary adjustments, Use ‘fail-fast’ feeding back data from the field. The idea is to think big, start small and scale up prototyping fast, but with minimum investment.Copyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 12
  • The beginning…. Do not go where the path may lead, go instead where there is no path and leave a trail. - Ralph Waldo EmersonCopyright © 2012 Accenture All rights reserved. eindia.eletsonline.com 13