In healthcare, the term "innovation" has traditionally been reserved for the development of new therapies, drugs or medical devices. Innovating in the business model is far more than product innovation. There are a lot of companies worried about how to create and deliver value, but few are worried about how to capture value.

1. Barcelona, July, 21st 2015
Business Model Innovation
Improving the known…
Inventing the new…
Jorge Juan Fernández García

2. Director Área E-Health
Innovation Department
jfernandez@hsjdbcn.org
@HSJDBCN
Jorge Juan Fernández
@jorgejuan
Head of Academics
MOEBIO / d·HEALTH
jjfernandez@biocat.cat
@moebiobarcelona

3. Concepts, Tools and Sources
Case studies
Food for thought
1
2
3
INDEX

4. Concepts, Tools and Sources
Case studies
Food for thought
1
2
3
INDEX

5. BM = create, deliver, and capture value
 A business model is a blueprint that describes the rationale of how
an organization creates, delivers, and captures value.
 The process of “business model construction” is part of business strategy.
CREATE DELIVER CAPTURE

6. CREATING VALUE vs CAPTURING VALUE
Even very big businesses can be bad businesses
Data from 2012 COMMERCIAL AIRLINES GOOGLE
Revenues 160 Billion $ 50 Billion $
Average airfair (each way) 178$
Profit per passanger trip 0.37 cents
Total profits 21% (of the revenues)
Google creates less value, but captures far more.
 Google kept 21% of the 50B $ of revenue as profits, more than 100 times (100x)
the airline’s industry profit margin that year (2012).
 Google makes so much money that it’s now worth three times (3x) more than
every US airlines combined.
SOURCE: “Zero to One”, Peter Thiel

7. The books

8. TOOL #1: Business Model Canvas (Alex Osterwalder)
A business model innovation introduces a new logic of how a company creates,
delivers and captures value by changing multiple dimensions of a business model.

9. TOOL #2: The Ten Types of Innovation (DOBLIN)
 In examining more than 5.000 innovations
(successful and not) over the past 15 years, the
team at DOBLIN has classified innovation
activities into Ten Types of Innovation.
 Sadly, most of these innovations have not been
successful, achieving in aggregate an abysmal
success rate of 4.5%.
 WHY? The vast majority of them (especially the
failed attempts) have been centered on Product
performance and Product system innovation.

10. Ten average innovator is too focused or simple, product-based
innovations
SOURCE: Doblin - http://www.doblin.com/tentypes

11. Succesful innovators look beyond product performance, and integrate
twice as many types of innovation
SOURCE: Doblin - http://www.doblin.com/tentypes

12. SOURCE #1: The Ten Types of Innovation, DOBLIN

13. http://doblin.com/files/Beacons_Article_vf7_single.pdf

14. SOURCE #2: The Business Model Navigator (55 patterns)
http://www.im.ethz.ch/education/HS13/MIS13/Business_Model_Navigator.pdf

15. SOURCE #3: “Seizing the White Space” (Mark Johnson)
https://hbr.org/2015/01/what-is-a-business-model

16. In healthcare, the term "innovation" has
traditionally been reserved for the development of
new therapies, drugs or medical devices.

19. Concepts, Tools and Sources
Case studies
Food for thought
1
2
3
INDEX

20. 1) PROFIT MODEL: Exovite
SOURCEhttp://www.exovite.com/
Exovite
Digital
Manufacturing
(3D printing of
splints in 60
seconds),
applied to
tele-
rehabilitation.
How you make money

21. 2) NETWORK: (MedTech-specific vs Health-specific) Accelerators
How you connect with others to create value
http://zeroto510.com/ http://eyefocus.co/
http://www.illumina.com/landing/il
lumina-accelerator.html

22. 3) STRUCTURE: ACOs (Accountable Care Organizations)
How you organize and align your talent and assets

23. 4) PROCESS: Scanadu
How you use superior methods to do your homework
SCANADU
Designed to empower yourself,
it reads and records your heart
rate, blood pressure, emotional
stress and MUCH more in just
10 seconds. It also alerts you if
various vitals are abnormal,
which makes it great for
parents who want to stay in the
loop about their child’s health.
SOURCE: https://www.scanadu.com/

24. 5) PRODUCT PERFORMANCE: Theranos
SOURCE: http://www.theranos.com/
How you develop distinguishing features and functionality
THERANOS
It only requires a few drops of
blood to test for hundreds of
different health-related
diseases.
The FDA granted Theranos the
ability to test using its
proprietary finger-prick method.

25. 6) PRODUCT SYSTEM: Apps & Peripherals
Otoscope (Oto, CellScope) GeckoCap: improving medication
adherence in pediatric asthma
EYE NETRA (MIT) Peek Vision
iBGStar
How you create complimentary products and services

26. 7) SERVICE: Medtronic + Diabeter
Medtronic + Diabeter
"This acquisition marks
Medtronic's first entry into a
diabetes integrated care
model approach and
signifies that Medtronic
Diabetes is more than
pumps and sensors--we are
a holistic diabetes
management company
focused on making a real
difference in outcomes and
cost," Hooman Hakami,
Medtronic's diabetes group
president.
How you support and amplify the value of your offerings
SOURCE: http://diabeter.nl/en/

27. 7) SERVICE: Blink
SOURCE: http://www.goblink.co/
Blink
“Vision testing,
delivered”

28. 7) SERVICE: Blink
SOURCE: http://www.goblink.co/

29. 8) CHANNEL: Apple Watch
How you deliver your offerings to customers and users
SOURCE: https://www.apple.com/watch/
Apple Watch
 Every product is a service waiting to
happen.
 Products have features. Platforms have
communities.
 Platforms beat products every time.

30. 9) BRAND: CVS Quits for Good
SOURCE: http://www.cvshealth.com/research-insights/health-topics/this-is-the-right-thing-to-do
How you represent your offerings and business

31. 10) CUSTOMER ENGAGEMENT: GE MRI Scan
How you foster compelling interactions
General Electric (GE) Healthcare
GE Healthcare made MRIs less frightening for young children. Doug Dietz -
principal designer- finally discovered that the real problem was the experience.
The GE Adventure Series was born.
SOURCE: http://dschool.stanford.edu/student/doug-dietz/

32. Concepts, Tools and Sources
Case studies
Food for thought
1
2
3
INDEX

33. [1] The Product business model is broken

34. Platforms beat Products every time

35. [2] Business model innovation allows to capture the value of
technology or product innovation
SOURCE: http://www.slideshare.net/jindrichweiss/55-business-models-to-revolutionize-your-business-by-michaela-csik

36. [2] Business model innovation allows to capture the value of
technology or product innovation
SOURCE: http://www.slideshare.net/jindrichweiss/55-business-models-to-revolutionize-your-business-by-michaela-csik

37. [3] Cross industry innovation:
The best way to develop ideas is to look to other places
SOURCE: http://www.crossindustryinnovation.com/

38. Disruptive innovation comes from the periphery, not the core
 There is strong evidence that new industries don’t evolve
naturally from traditional industries.
 Industries that are inward-looking largely fail to create new
business models (i.e. newspapers).