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Mobile health plaform strategy

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Overview of mobile health; opportunities and challenges for mobile health; mobile health platform design approach; platform competitive strategy; digital health; smart health

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Mobile health plaform strategy

  1. 1. Mobile Health Platform Strategy Gwanhoo Lee Professor of IT Management Kogod School of Business American University, Washington D.C. December 2016
  2. 2. A Trillion Dollar Question How do we build a leading platform for the mobile health sector? 2
  3. 3. Opportunities for mHealth
  4. 4. Healthcare Market Size • USA: $3.78 trillion in 2018 • China: $1 trillion by 2020 (Deloitte 2016) 4
  5. 5. Disruption in Healthcare • Input based to value/outcome based • Patient-centered care • Disease to health • 30-50% decline in traditional healthcare services • 85% of diagnostics move to retail • Procedural services  commoditized • Medical information analytics • Genomics • mHealth 5
  6. 6. Excessive Healthcare Spending has become a Global Issue • 18% of 2015 U.S. GDP • 5.2% of 2011 China GDP 6
  7. 7. mHealth can lower healthcare costs while improving quality of care! 7
  8. 8. mHealth Market Size $60 billion by 2020 (Source: Market Research Engine, July 2016) Connected healthcare products: $285 billion by 2020 (Source: PWC, 2015) $23 billion by 2017 (Source: Brookings, 2014) e-health in China: $3 billion in 2014 to $110 billion in 2020 (Source: BCG, 2015) $13 billion in 2015 (Source: SNS Research, 2015) 8
  9. 9. No one has yet developed a robust and reliable business model that shows how to make mHealth a successful venture on a large and sustainable scale (Malvey and Slovensky, mHealth: Transforming Healthcare, 2014) 9
  10. 10. There is no dominant platform for mHealth YET! 10
  11. 11. (Brief) Overview of mHealth
  12. 12. mHealth Provision of healthcare or health-related information through mobile phones and/or specialized medical mobile devices (Source: The Economist, “Emerging mHealth: Path for Growth” 2014) 12
  13. 13. BAN (Body Area Network) • Wearable body sensor network • Personal monitoring device 13
  14. 14. mHealth Cloud Architecture CLOUD Source: Health Monitoring and Management Using Internet-of-Things (IoT) Sensing with Cloud-based Processing: Opportunities and Challenges, Hassanalieragh et al., 2015 IEEE International Conference on Services Computing 14
  15. 15. mHealth Applicati on Education and awareness systems Point-of-care support and diagnostics Patient monitoring Disease and epidemic outbreak surveillanceEmergency medical response systems Health information systems mLearning health financing applications Source: Barton BMC Medicine 2012, 10:46 http://www.biomedcentral.com/1741-7015/10/46 15
  16. 16. mHealth Platform Strategy
  17. 17. 17
  18. 18. Platform vs. Pipeline 18
  19. 19. 19
  20. 20. Why Platforms Beat Pipelines? • Scale and grow much faster • Create value using resources they don’t own • Network effect > Price effect or brand effect 20
  21. 21. Platforms and Two-Sided Markets ProducersConsumers 21
  22. 22. Network effects – the main source of value creation in a platform business 22
  23. 23. What industries are likely to be disrupted by platforms? • Information intensive • Non-scalable gatekeepers • Highly fragmented • Information asymmetries Healthcare? 23
  24. 24. What industries are likely to resist platform disruption? • Highly regulated • High failure costs • Resource-intensive Healthcare? 24
  25. 25. mHealth Platforms 25
  26. 26. Two Important Markets for mHealth 1. Wellness/Activity Tracking 2. Chronic Disease Management • cardiovascular disease • diabete • hypertension • asthma • obesity 26
  27. 27. Problems with Current mHealth Platforms • No or little network effects • Fail to engage users 27
  28. 28. Samsung S Health: Same-side Network Effect 28
  29. 29. Samsung S Health: Cross-side Network Effect 29
  30. 30. Apple HealthKit: Same-side Network Effect 자료: 개인건강기록 산업, 표준 및 정책동향 TTA Journal, 2016.3/4 30
  31. 31. Apple HealthKit: Cross-side Network Effect 31
  32. 32. Platform businesses require different approaches and competitive strategies than traditional pipeline businesses
  33. 33. Approaches to effective platform design Define ‘core interaction’ –Participants –Value unit –Filter 33Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary
  34. 34. Approaches to effective platform design • Basic elements of ‘core interaction’ –Pull –Facilitate –Match 34
  35. 35. Approaches to effective platform design • Modular design approach 35
  36. 36. Approaches to effective platform design • ‘Anti-design’ approach 36
  37. 37. To grow user community fast, ‘Frictionless Entry’ is the key 37
  38. 38. When Network Effect exists, it is challenging to acquire initial users • Chicken-or-egg 38
  39. 39. Strategies for Chicken-or-egg Problem • Introduce platform to existing successful non- platform business (Amazon) • Piggyback (PayPal) • Seeding (Android, Adobe) • Acquire key producer (Xbox/Electronic Arts) 39Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary
  40. 40. Strategies for Chicken-or-egg Problem • Focus on a single-side first (OpenTable) • Big Bang (Twitter) • Start with micro-market (Facebook) 40Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary
  41. 41. Platform Governance • Laws, Rules • Norms • Architecture (eBay; Blockchain) • Markets 41
  42. 42. Metrics • Measure activities, not membership • Actionable, accessible, auditable 42
  43. 43. Monetization of Your Platform • Charging a transaction fee (Uber) • Charging for access (Dribble) • Charging for enhanced access (Yelp) • Charging for enhanced curation (Sittercity) Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary 43
  44. 44. Whom Should You Charge? • Charging all users • Charging one side while subsidizing another (online dating sites) • Charging most users full price while subsidizing stars or price-sensitive users 44Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary
  45. 45. The one who controls data will control the mHealth ecosystem • Current health data are highly fragmented 45
  46. 46. Competitive Strategies for mHealth Platforms • Prevent multi-homing • Innovation first, then value capturing • Leverage data • Promote partnership • Platform envelopment • Design excellence 46Source: Platform Revolution: How Networked Markets Are Transforming the Economy, 2016, Parker, Van Alstyne, & Choudary

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