PowerPoint Presentation

A View From Outside Health Care

@jeffnesbitt

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Organizations are re-defining themselves into technology companies.

@jeffnesbitt

The World Economic Forum in Davos, just a few months ago, focused on something called the 4th Industrial Revolution. As all of you are aware, The Third Industrial Revolution used electronics and information technology to automate production. Some call it the Digital Revolution. Now a Fourth Industrial Revolution is building on the Third, It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.. Self Driving Cars, Virtual Reality, Cybersecurity all topics you will hear about that are part of the 4th industrial revolution.

Source: http://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond

As we talk about healthcare, we have to recognize that it is struggling at times to even move into the 3rd industrial phase the digital era of technology adoption. The challenge becomes that the precursor requirement to adoption of technology in this new revolution requires adoption of digital technology. If you are going to use virtual reality, then you better have a phone or a computer that can enable it. If you are going to have a self driving car, then you better have the GPS, radar and connectivity systems required to manage the system.

We all know what happens when organizations dont make a transition an example that comes to mind is Kodak. Kodak didnt make the transition from Film to Digital.

Firms are now starting to leverage open innovation concepts from the 1960s in a more systematic manner to help them keep pace with these changes. How can you plug into ecosystems of partner networks that allow you to explore, sense and educate and shape a new mind and talent set for your organization to keep up with the pace of change. In the news, you will read about firms launching innovation labs and partnerships with accelerators and incubators. Innovation Guelph or Communitech in our LHIN have demonstrated examples of these types of cross-sector partners ranging in firms from TD Bank to General Motors all positioning themselves close to incubators and accelerators.

Key Take away: Firms are re-defining themselves as technology companies. Yes, they are still in banking - but they are moving towards becoming a tech company. Yes, they are still automotive but are increasingly broadening their lens to examine digital transformation and the impact on the business. If you are an automotive company and self-driving cars are a reality in 10 years, as a consumer do you care about a brand any longer?

So HOW can you guard against these types of movements: Engage with sensing networks that provide you feedback, context and education. Lets look at one on the next slide, UW GreenHouse. The social impact incubator for the University of Waterloo.2

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Source: https://www.youtube.com/watch?v=4kbXrgI_Jt4

Reference: UW GreenHouse

Twitter: @uwgreenhouseWeb Site: https://uwaterloo.ca/stpauls/greenhouse

Contact: Tania Del Matto, Director GreenHouse, tdelmatt@uwaterloo.ca

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MVP and MVE

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You can have the greatest product in the world or even a Minimum Viable Product or Idea and it can fail. Tech companies focus on MVP. If you used early version of Microsoft Office you soon began to realize that they tested the product for bugs in the field. But it was good enough to sell.

But firms are realizing that in order to sell their products in the new connected world there is a strong pre-condition that they need to meet before launching their product. They not only need an MVP they need an Minimum Viable Ecosystem (MVE). Ron Adner speaks about this concept in his book The Wide Lens.Source: http://thewidelensbook.com

To use a market example that everybody is familiar with, lets talk about the Ipod from Apple. Long before apple launched the ipod , there were MP3 players. Inf act , Apple wasnt the first to the market. But when Apple launched their product they did so by ensuring an MVE was in place to support the growth of the product iTunes and the internet. To use another analogy, it would be like launching a car without having any roads you could drive it but it would be a bumpy drive.

Two Lessons:

1. The same can be said for healthcare if you launch a new product or service without understanding at a system level the other organizations that fit into a care pathway or look at service integration -

2. Going first isnt necessarily the smart thing to do unless you are willing to build the MVE. Uber is breaking policy barriers and laws while moving us toward the sharing economy. They have trained people, challenged the regulatory frameworks, etc and they did it by rallying the crowd. But they did it consciously. Now you see a number of startups moving into this field UberSnowPlow to UberSnowshoveling. And it took deep pockets.4

Social innovation exampleRohit videoMedical machinesIncubators in napalLean Out

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Gravity to the cube .

In our context, put the resident in the middle when you design new processes or systems. Define who the residents are that you serve write it down. Describe them tell stories about them. People view story telling as a method to raise money a function of marketing and communications at the end of the life cycle. Ok, we will build this idea then tell a story then go get money.

But innovation firms reverse this process. They start with understanding why , how and what they are doing and explicitly define who they are solving the problem for. Simon Sinek has a great TED talk about focusing on the WHY. He uses apple to talk about the impact of focusing on the WHY and then solving the right problem turning average consumers into raving fanatics.

Source: https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en

Story: GE Medical modalitiesSource: Stanford Innovation & Entrepreneurship , Design Thinking Course

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