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Key Success Factors
in Digital Healthcare
CHIWEON KIM
2016.3.30
Key Success Factors
• Utility
• Business Model
• Platform
4 questions digital healthcare products should address
No
Yes
No
Yes
No
Yes
No
Yes
Medical utility??
Recognized as
problem?
Does consumer
want solution?
Does it solve the
problem?
1. Utility
Product with utility but not regarded as a problem
Smart water bottle
•Drinking water helps improve health
•Do the consumers regard dehydration as
a problem?
•The bottle may be trying to solve a
problem that does not exist.
Other examples
UpRight
BitBite
Recognized as problem, which consumers don’t want to solve with
the particular solution
VS
Lets you know that there is an intruder, and then?
Zeo did not help solve the problem
Zeo sleep manager
•Monitors sleep pattern
•Once regarded as signature product
of digital health
•Stopped operation in 2013
•Reason for failure
 limited meaning
 Do not lead to sleep improvement
Heart rate variability does not solve a problem
Need to have a clear view on utility
Medical Problem Wanna solve Solution
Utility evaluation
Digital healthcare’s utility for consumers
Utility for
Consumers
Short term
• Access to care
• Problem-based utility
-Triage
-Try to solve outside of
hospital
Mid-long term
• Behavioral modifiation
• Sustained use
Short term utility: enhanced access to care
Short term utility: what do Korean patients want?
Short term utility: what do Korean patients want?
Thermocare 열나요
Short term utility: Type I DM and CGM
Long term utility: Type 2 DM
• For chronic
diseases like
diabetes, the
most important
thing is
sustained
behavioral
change.
• Most of current
solutions for
diabetes focuses
on ancillary
problems rather
than the core
ones.
Digitalhealthcare
Hospital
Home
No
Yes
Where to use?
Does the 3rd
party
pay the bill?
Employer
No
Yes
Consumer
Insurance
Hospital
4 business models in digital healthcare
2. Building business model
B2C: Digital healthcare is a credence good
Credence
good
Experience
good
Chracteristics
Search
good
Examples
• Can’t be judged even after it
is used
• Can’t be judged before it is
used
• Can be judged without being
used, if you spend enough time
to search
Insurance: Needs of insurance companies?
• Some insurance
companies offer
wearables to their
members
• Some members may try
to take advantage of
it
• Insurance companies
want heart rate
sensor to prevent the
fraud.
In Korea, only NHIS has enough motivation to invest in digital
healthcare
NHIS Private
payer
Consumer
Portion saved
by digital health
90%
10%
90%
10%
90%
10%
Private payer Consumer
90%
10%
90%
10%
Korea US
Digital healthcare’s impact on insurance depends on payer structure
Digital healthcare products fit into healthcare business structure
• Google glass case
• Google glass showed promise for use in
hospitals.
• However, the issue is who will pay for it
• Payer:?
• Hospital: ROI issue
• Doctors?
Platform is needed to connect products, consumers and hospitals.
Apple Healthkit
•Healthcare platform
•Major partners
EMR: Epic EMR
 Hospital: Mayo clinic
•이후 연구를 위한 ResearchKit 과 ResearchKit
의 연구 결과를 앱으로 만들 수 있는 CareKit 출
시
Google Fit
•Focuses on fitness
•Partners: no hospitals or EMR companies
IT: LG, HTC, ASUS
 Fitness, Sports: Nike, Adidas, Noom
3. Platform

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Key Success factors in digital healthcare

  • 1. Key Success Factors in Digital Healthcare CHIWEON KIM 2016.3.30
  • 2. Key Success Factors • Utility • Business Model • Platform
  • 3. 4 questions digital healthcare products should address No Yes No Yes No Yes No Yes Medical utility?? Recognized as problem? Does consumer want solution? Does it solve the problem? 1. Utility
  • 4. Product with utility but not regarded as a problem Smart water bottle •Drinking water helps improve health •Do the consumers regard dehydration as a problem? •The bottle may be trying to solve a problem that does not exist.
  • 6. Recognized as problem, which consumers don’t want to solve with the particular solution VS
  • 7. Lets you know that there is an intruder, and then?
  • 8. Zeo did not help solve the problem Zeo sleep manager •Monitors sleep pattern •Once regarded as signature product of digital health •Stopped operation in 2013 •Reason for failure  limited meaning  Do not lead to sleep improvement
  • 9. Heart rate variability does not solve a problem
  • 10. Need to have a clear view on utility Medical Problem Wanna solve Solution Utility evaluation
  • 11. Digital healthcare’s utility for consumers Utility for Consumers Short term • Access to care • Problem-based utility -Triage -Try to solve outside of hospital Mid-long term • Behavioral modifiation • Sustained use
  • 12. Short term utility: enhanced access to care
  • 13. Short term utility: what do Korean patients want?
  • 14. Short term utility: what do Korean patients want? Thermocare 열나요
  • 15. Short term utility: Type I DM and CGM
  • 16. Long term utility: Type 2 DM • For chronic diseases like diabetes, the most important thing is sustained behavioral change. • Most of current solutions for diabetes focuses on ancillary problems rather than the core ones.
  • 17. Digitalhealthcare Hospital Home No Yes Where to use? Does the 3rd party pay the bill? Employer No Yes Consumer Insurance Hospital 4 business models in digital healthcare 2. Building business model
  • 18. B2C: Digital healthcare is a credence good Credence good Experience good Chracteristics Search good Examples • Can’t be judged even after it is used • Can’t be judged before it is used • Can be judged without being used, if you spend enough time to search
  • 19. Insurance: Needs of insurance companies? • Some insurance companies offer wearables to their members • Some members may try to take advantage of it • Insurance companies want heart rate sensor to prevent the fraud.
  • 20. In Korea, only NHIS has enough motivation to invest in digital healthcare NHIS Private payer Consumer Portion saved by digital health 90% 10% 90% 10% 90% 10% Private payer Consumer 90% 10% 90% 10% Korea US Digital healthcare’s impact on insurance depends on payer structure
  • 21. Digital healthcare products fit into healthcare business structure • Google glass case • Google glass showed promise for use in hospitals. • However, the issue is who will pay for it • Payer:? • Hospital: ROI issue • Doctors?
  • 22. Platform is needed to connect products, consumers and hospitals. Apple Healthkit •Healthcare platform •Major partners EMR: Epic EMR  Hospital: Mayo clinic •이후 연구를 위한 ResearchKit 과 ResearchKit 의 연구 결과를 앱으로 만들 수 있는 CareKit 출 시 Google Fit •Focuses on fitness •Partners: no hospitals or EMR companies IT: LG, HTC, ASUS  Fitness, Sports: Nike, Adidas, Noom 3. Platform