Major technology companies are expected to invest $100 million or more in technology-enabled health business models over the next three years. Venture capitalists (VCs) anticipate investing a jaw-dropping $500 million.
Unfortunately, a lot of it might go to waste.
Why? Many technology companies and VCs, and a few innovative telecommunications providers, are trying to address healthcare challenges they are unfit to solve. Case in point: Sixty-nine percent of high tech companies and 80 percent of VCs are focused on health quality and safety, an area better addressed by healthcare incumbents.
Accenture Strategy analysis shows seven health challenges are likely to be best addressed by technology capabilities. These challenges include access to healthcare, disease management, hospital administration, population health and more.
Before making investments in healthcare, it is also critical to understand up front who will pay and who will benefit. Stakeholders include patients, providers, payers and product suppliers.
In order to succeed in the healthcare market, companies must evaluate their strengths in hardware, software, infrastructure and development—and refocus their investments on the right health challenges.
According to recent Accenture Strategy research exploring the push of High Tech into
Seventy-seven percent of technology firms surveyed believe analytics is their most relevant health capability.
Ironically, 62 percent are tackling the challenge of access to healthcare—the one area that analytics does not adequately address.
Fifty-eight percent are focused on applying their cloud capabilities to healthcare challenges.
Fifty-eight percent cite strengths in data management as the most applicable to health care.
Surprisingly our research did not indicate strong capabilities in hardware, software, and infrastructure development. This may represent a market opportunity in areas such as industrial design, robotics and automation, and leveraging rapid product cycle times.
Focus and act now—Pinpoint the healthcare challenge to take on and invest bigger dollars in a meaningful way to drive economic value for a key stakeholder—patients, providers, payers or product suppliers.
Close key gaps—Leverage cash and brand-name cachet to address clinical or regulatory gaps by partnering with healthcare providers or acquiring MD, PhD and FDA expertise.
Leverage company strengths—Tackle areas that make optimal use of differentiated technology competencies such as industrial design, mobility or rapid product development cycle times.