Request PDF on ResearchGate | On Oct 1, , Dr. Hein Vrolijk and others published The innovator's prescription: a disruptive solution for health care. A groundbreaking prescription for health care reform—from a legendary leader in innovation Our health care system is in critical condition. Each year, fewer. Disruptive Innovation and the Future of Hospitals and Healthcare. Jason Hwang, M.D., M.B.A.. @drjhwang [email protected]
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The Innovator's Prescription: A Disruptive Solution for Health Care The Role of Disruptive Technology and Business Model Innovation in Making Products and. Editorial Reviews. From the Back Cover. MEET THE CURE TO AMERICA'S HEALTH CARE ILLS. "Clayton Christensen has done it again, writing yet another . The Innovator's Prescription: An Examination of the Future of Healthcare th h th L f Di ti I ti through the Lens of Disruptive Innovation.
Medical Nonfiction A groundbreaking prescription for health care reform—from a legendary leader in innovation. Our health care system is in critical condition. Each year, fewer Americans can afford it, fewer businesses can provide it, and fewer government programs can promise it for future generations. We need a cure, and we need it now. Harvard Business School's Clayton M. Christensen—whose bestselling The Innovator's Dilemma revolutionized the business world—presents The Innovator's Prescription, a comprehensive analysis of the strategies that will improve health care and make it affordable. Christensen applies the principles of disruptive innovation to the broken health care system with two pioneers in the field—Dr.
Medicare expenses may overwhelm the federal budget in two decades. American businesses are losing competitive ground globally because they must shoulder health care costs. If municipal governments had to report their health care liabilities, their financial statements would clearly show them to be underwater.
This is not simply an American problem. Other countries, such as Canada and the U. Developing countries are in even worse shape. Health care providers get paid when they supply products and services. In this scenario, suppliers drive demand.
Approximately half of health care spending is a result of supply push, not demand pull. Start getting smarter: Recommendation Political fights over health care reform have generated countless pages of editorials, commentaries and polemics, and hundreds of hours of television and radio programming.
About the Authors Clayton M. Read on. Instant access to over 18, book summaries Personal Discover your next favorite book with getAbstract. See prices. Business Stay up-to-date with emerging trends in less time.
Learn more. But are we focusing on the wrong things when discussing health care? Rather than look at public versus private, we should be looking at innovations in the world of business.
If we take the right cues from the business world and apply them to health, we could end up with a more affordable and more efficient system. So how do we do this? This book summary will show. Health care is one of the major problems America faces. So what is it?
Disruptive technology, also referred to as disruptive innovation, is a combination of three aspects: The first is a technological enabler, an innovation that simplifies problem-solving by routinizing solutions, thus making the entire process cheaper.
The second is business model innovation, which allows firms to deliver affordable and accessible services while still turning a profit. For instance, IBM was using disruptive technology when it adopted an innovative business model that based their business operations in Florida — far removed from their mainframe and minicomputer businesses in New York and Minnesota.
This allowed them to avoid paying the high margins, overhead costs and unit volumes typical to the Northern part of the country. IBM then paired their business innovation with a technological enabler: the microprocessor. The combination of a fresh, money-saving business strategy with this stellar technology led them to revolutionize the computer market by introducing the first PCs.
And the third element of disruptive technology? Say a company builds microprocessors. To build a value network, every company involved in the process, from suppliers to transporters, would adopt disruptive technology and, in the process, all of them would benefit.
Most business people know that market research is key and that companies will shell out big bucks to learn what their customers want. How do you do that? Well, a business model is only truly innovative, and successful, if markets are job-defined instead of product-defined. One American fast-food chain had monumental success adopting this strategy. By reassessing their business plan, they determined that over 40 percent of their milkshake sales occurred in the morning, downloadd by bored commuters.
What they realized about these customers was that they were short on time and looking for a one-handed pick-me-up to stave off that 10 AM tummy growl. With this information in mind, the chain optimized their milkshakes to the needs of their customers by making them thicker, and therefore longer-lasting — just the thing to keep customers occupied on their drive to work.
In short, by creatively re-examining their market, they improved their product and boosted their profits! For example, by branding their product as practically being a meal in and of itself, the restaurant found a tailor-made marketing strategy that sold loads more milkshakes!
OK, so you understand how the business-model innovation strategy works, but how could it transform health care? By splitting the current pairing of general hospitals and general physicians into three distinct business models: The first is solution shops — businesses that diagnose and cure unstructured issues while billing customers on a fee-for-service basis.
Examples of this style of business include consulting firms, advertising agencies and research and development companies.
The second is Value-Added-Process VAP businesses that turn incomplete things into fine-tuned, and therefore valuable, products.
These businesses charge on a fee-for-outcome basis. The third model is called facilitated networks.
These are organizations that allow people to share things with each other by charging for memberships, or by transaction. Great examples of this style of business are companies like site; mutual insurance companies; and the model for treating chronic illnesses used by dLife, a diabetes networking organization for patients and families.
But why is dividing the conventional system into these three different business models such a good idea? Because, although disruption can occur within a business model, the most groundbreaking disruption happens when one business model replaces another.
Then lower-cost business models should be allowed to emerge in each of the three categories — for instance, mobile clinics that replace specialty hospitals.
And lastly, disruption should occur across all three business models. For example, retail clinics could switch care from solution shops to VAP businesses. Before modern technology, doctors were unable to see what was going on inside a patient.
Instead, they deduced whatever they could by conducting painstaking external examinations. But today, instead of undertaking a time-consuming exam, doctors use machines that snap photos from inside the body. This process is cheaper, more effective and even simpler.
Clearly, technological innovation has seriously improved healthcare. But what exactly is a technological enabler? Diagnostic imaging technology, the tool that takes images from inside our bodies, is, as mentioned above, fast, cheap and extremely accurate.
But technology lowers costs in other ways, too. For one, it replaces many complex instinctual processes with simple rules-based work.
Luckily, straightforward rules-based treatments can often avert this hassle; they treat problems that have been precisely diagnosed based not on the symptoms but on the cause of the condition. For instance, insulin is an entirely rules-based treatment, since it goes to work directly on the cause of type 1 diabetes. The second way technology makes medical care cheaper is by employing inexpensive technicians instead of highly-trained and costly experts.
For example, for several years BMW has been writing the algorithms necessary to produce hyper-realistic computer based car models that only require virtual testing. Since replacing their highly-trained experts with rules-based work overseen by technicians, the company has saved loads of money.