Presentation by Ralf-Gordon Jahns, Managing Partner of Research2Guidance, at the mHealth Israel conference, Dec 15, 2014, Tel Aviv

1. 15th of December 2014
Successful mHealth App
Publishing
mHealth Summit Israel 2014

2. 2© research2guidance 2014
RESEARCH2GUIDANCE: OUR FOOTPRINT IN THE MHEALTH APP MARKET
mHEALTH APP MARKET EXPERT
Publisher of 20 mHealth App Market
Reports
mHEALTH STRATEGY ADVISOR
mHealth strategy, app ideation and
evaluation, competitor analysis,
mHealth governance definition
mHEALTH RESEARCH PLATFORMS
Access to 20,000+ mHealth app
publishers who have participated in our
research projects
mHEALTH MEDIA COVERAGECUSTOMERS USING OUR
mHEALTH SERVICES
Get brand awareness and drive thought
leadership to our 70,000+ app
ecosystem database
mHEALTH MARKETING
PLATFORMS
Sponsored reports
mHealth webinars
Interviews
www.mHealthEconomics.com

3. 3© research2guidance 2014
Successful
mHealth Apps
Publishing
1. Make sure your app is state of the
art
2. Get your users locked in
3. Find the right role
4. Find the right business model

4. 4© research2guidance 2014
Diagnostic
0.4%
Patient health record
0.5%
Remote consultation
0.7%
Logistical and payments
1.4%
Measurement
1.4%
Reminders and alerts
1.6%
Calculator
1.6%
Nutrition
1.6%
Misplaced
1.7%Other
1.9%
Mental health
4.1%
Continuing medical
education tools
7.6%
Women
8.7%
Wellness
10.1%
Medical condition
management
12.9%
Fitness
20.2%
Medical reference
23.7%
TO SUCCESSFULLY LAUNCH A MHEALTH APP HAS BECOME A CHALLENGING
TASK
> 100k
mHealth
apps
Source: research2guidance. Top 200 listed mHealth apps on Apple App Store and Google Play of categories health& fitness and medical.
August 2014, n= 1,600
Share of app
categories in
Apple App
Store and
Google Play

5. 5© research2guidance 2014
AS A CONSEQUENCE APPS ARE NOT VISIBLE AND DON’T GET DOWNLOADED
Source:The mHealth App Developer Economics 2014, 2,032
< 5,000,
61.3%
5,001 - 50,000,
21.3%
50,001 - 100,000,
6.0%
100,001 -
250,000, 3.4%
250,001 -
500,000, 2.9%
> 500,000, 5.2%
Publisher’s
yearly
downloads all
mHealth
apps/platforms

6. 6© research2guidance 2014
NEW APPS HAVE TO MATCH CURRENT STATE OF THE ART
Most healthcare apps are predictable, incremental solutions to what already exists on the
web, with poor usability and value back to the stakeholders…
Educational
Basic Tools
Tracking
Coaching &
connected

7. 7© research2guidance 2014
Sensors
THE COMPONENTS OF A STATE OF THE ART MHEALTH APP
Track & coach
Save mHealth data
Consult
remotely
Apps & SDKs
Integrate
Sensors
Automate
input
• Health plan
• EHR
• Physician
dashboard
Community
Sensors Sensors
Engaging & beautiful
1
5
4
3
2

8. 8© research2guidance 2014
WITH INCREASING COMPETITION UNDERSTAND THE VALUE OF RETAINED
APP USERS BECOMES KEY FOR SUCCESS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10
Sensor Usage Apps > 50% MAU Apps > 75% MAU
Source: Endeavour Partners, 9/2013 in USA and Flurry, 2/2014, n= 26,176 apps
Decay of sensor users and apps used after first use/MAU peak over months
Apps used by
>75%
Months
Sensor usage
Apps used by
>50%
100,000 -10% -0.5m USD
$
Example: 3,99 USD monthly sub for health coaching

9. 9© research2guidance 2014
THERE ARE MANY TECHNIQUES THAT SUPPORT USER RETENTION BUT NO
SILVER BULLIT
Dialog with
doctors
Peer
monitoring
Personalized
messages
Economic incentives
Dashboards & self
management
User-generated
content
Gamification
Ease of implementation
Difficult Medium Easy
Potentialimpacton
behavior
LowMediumHigh
Intervention techniques (impact on behavior and ease of implementation)
Reminders
Social
monitoring
Education and motivation
Source: The Wireless Innovation Council and Mobiquity 2014, research2guidance

10. 10© research2guidance 2014
App portfolio size, performance and target group by company
Source: research2guidance
MAYBE APP PUBLISHER IS NOT THE BEST ROLE FOR SOME OF THE PLAYERS
Share of app targeted
private users
0%-20% 21%-40% 41%-60% 61%-80% 81%-100%
Below average Above average No. of apps
Below average
Above average
No. of downloads
Downloads: All time downloads of all apps in the app portfolio of the company; No. of apps: All apps listed on Apple App Store and
Google Play September 2014 of a company
Niche
Still Trying
First
Success
Example Pharma

11. 11© research2guidance 2014
App User
Apps /PHR SensorsAA
Health API
Aggregator
Health
SDKs
App
aggregator
Technology
Health
Data
Storage
Regulations
Hospitals Health databases Food databases
Insurances /
Universities
THERE ARE OTHER ROLES THAT MIGHT FIT BETTER IN THE CONNECTED
MHEALTH APP ECO SYSTEM
/ /
Connected
Elite
Enablers
Data layer
Health
Device
Connectors

12. 12© research2guidance 2014
TODAY MOST OF MHEALTH APP PUBLISHERS DON‘T MAKE MONEY
No
revenues,
46%
below
10,000 $,
22%
10,001 $ to 50,000
$, 9%
50,001 $ to 100,000
$, 8%
100,001 $ to
1,000,000 $, 9%
1,000,001 $ to
5,000,000 $, 4%
above 10,000,000 $,
0%
Share of app publishers by yearly mHealth app revenue
Source:The mHealth App Developer Economics 2014, 2,032
$

13. 13© research2guidance 2014
MHEALTH WILL NOT BE AN APP DOWNLOAD REVENUE, ADVERTISEMENT
AND TRANSACTION PLAY
Global mHealth market revenue in USD
in 2017
Source: research2guidance, mHealth App Market Report 2013-2017, WHO
Services
69%
Device
sales
21%
Paid
downloads
5%
Transaction
4%
Advertisement 1%
2017
$26bn
Healthcare
spending
>$ 6
trillion
mHealth app
revenue
0,03%
mHealth app market share of total healthcare
spending in 2014

14. 14© research2guidance 2014
MHEALTH APPS WILL HAVE THE BIGGEST COST BENEFIT ON NON-ADHERENCE
AND HOSPITAL READMISSION
35.7%
31.4%
24.2%
19.9%
17.5%
15.8%
2.3%
Reduce costs of patients non-adherence to a medical
treatment
Reduce costs for hospital readmission and duration of
stay
Reduce doctors visits costs
Reduce prevention cost
Reduce redundant examinations and medication costs
Reduce investment in expensive technologies
Reduce medical trial cost
Reduce labor costs
Others
Biggest positive impact on healthcare cost drivers
Source: reserch2guidance mHealth App Developer Economics survey 2014, n= 2032
55,7%
55,4%

15. 15© research2guidance 2014
H2 TO MAKE MONEY: THE TOP 3 BUSINESS MODELS 2017/2020.
MHEALTH DATA WILL BE THE ENABLER
Cost reduction
Medopad
• Hospital solution
• Reduced readmission,
repeat diagnostics,
lenghts of stay
Service
MyFitnessCompanion
• Patient solution for
health tracking.
• Switched from on time
payment to 3,99 USD/m r
29,99 USD/y
Hardware
Jawbone
• Fitness tracking devices
and accessories
• Starting from 9,99 EUR
Sell efficiency gains Sell value added service Sell devices
2017
2020
$
$ $ $
$ $
$
$ $
$ $
$
Source: research2guidance
Pay per download, advertisement and transaction will not belong to the top 3 business models

16. 16© research2guidance 2014
And…
„In 20 years, mHealth apps will be the
normal way of managing health.“
Survey participant
How do we manage the meantime?
Let us connect.

17. 17© research2guidance 2014
THANK YOU
Ralf-Gordon Jahns
Contact:
ralf.jahns@research2guidance.com
Phone: +49 (0)30 609 89 3360
www.mHealthEconomics.com