The slides were used at Bio Korea 2016. The topic is key success factors in digital healthcare and it deals with 3 topics: Utility, Business model, platform.

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.

5. Other examples
UpRight
BitBite

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