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Disruptive Innovations in Healthcare: How They Are Changing Your Customers and What You Can Do Now

Michael W. Young Principal biomedwoRx: Life Sciences Consulting www.biomedwoRx.com February 25, 2018 Mandalay Bay Resort, Las Vegas, NV

My thanks to HCEA and the organizers of the HCEA Innovate Workshop for their gracious invitation…

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• What Is Creating an Environment for Disruptive Innovation?

• What Exactly is Disruptive Innovation?

• The Convergence of Life and Business

• Changing Expectations of Your Convention Customers

• What Can I Do to Succeed in a Disruptive Ecosystem?

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Where are we going?

• You’re getting older and your customers are getting younger. • Values Systems Change [Work / Life Balance]

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What Is Creating an Environment for Disruptive Innovation in Healthcare?

Consider how your end customer demographics are changing.

• 65 million Americans who are nearly 18 years old weren’t witness to 9/11.

• 10,000 Americans will retire on Monday. And another 10,000 on Tuesday and every day after.

• There are over 60 million Hispanics in the US (18%) but the number of Hispanic physicians has dropped 22% since 1980.

• In 2017, for the first time, more Women enrolled in US Medical Schools than Men – 51% (+3.2%)

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Who you need to attract to the Convention Floor affects How…

• Baby Boomers are now 54 to 73 years old (1945-1964)

• Gen Xers are now 36 to 53 years old (1965-1982) • The ave. physician age in the US is now 47 years old and

dropping.

• Gen Y (Millennials) are now 18 to 35 years old (1982-2001) • This is the largest cohort with over 77 million Millennials

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US Physician Profile

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80% of US Physicians say they are Over-Extended

Ave Age is now under 47 yrs old (54 in 2012)

Only 17% in solo practice (62% in 2008)

Ave work week = 53 hours (~20 patients/day)

09/2017 The Physicians Foundation

What Is Creating an Environment for Disruptive Innovation in Healthcare?

Use of Technology is Broader and More Common

• Physician diagnosis vs. “Watson”

• Robotics in surgery

• Technology lowers care costs over time, increases accuracy, improves quality/reliability = better clinical outcomes

• Does better clinical outcomes = better patient care?

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What Is Creating an Environment for Disruptive Innovation in Healthcare?

The Regulatory Environment is Changing

• Pharma / Device/ Diagnostics

• Faster Approvals possible?

• Less “red tape” but lower unit prices?

• More New Therapies = More Launches?

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What Is Creating an Environment for Disruptive Innovation in Healthcare?

Expectations of Service, Value, and Convenience are Changing • UBER, Blue Apron, Amazon Prime, Netflix • MinuteClinics, Doc in the Box, Telemedicine • Pay online, Mail Order Rxs, AI and Bots • Amazon, Berkshire Hathaway, plus JPMorgan

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Disruptive New Customers ACOs, IDNs, other Market Access Decision Makers

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What Exactly is Disruptive Innovation? • A disruptive innovation is one

that brings to market products and services that are much more affordable, and ultimately higher in quality.

• It improves a product or service in ways the market doesn’t expect.

• Typically, a disruptive innovation serves a different set of customers.

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Bringing Gourmet Meals to Middle-Class Tables in 1954

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Disruptive Technology offering access to care previously unreachable

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GE Healthcare’s Vscan™ with Dual Probe – a pocket-sized Ultrasound machine

What Disruptive Innovation will change this paradigm or improve it significantly?

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The Convergence of Life and Business

• Why do we do things, use technology, process decisions, and accept innovation differently in our personal lives than in our business lives?

• The convergence is likely the most subtle but powerful Disruptive Innovation we can expect in the next 5 years.

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The Convergence of Life and Business

• There are over 1 Billion active users on Facebook (2017)

• Over 50% of American households have an Amazon Prime account.

• While subscriber TV cord-cutting is growing still the overwhelming majority of disposable income families have cable or satellite subscriptions.

• What do they all have in common: Big Data

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Data-Driven Tactical Ecosystem that works with Your Convention Presence

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Facebook Ads

Additional Channels

Word of mouth

Share email

Organic Search

SEM Recommend

Tweet

Call1-800#

Locate Your Trial Clinic

Click-to-Call (mobile)

Share email

Talk to my doctor

AMBIENT

DATA

A PERSONALIZED

CALL-TO-ACTION

The Target

Physician / Patient

Every Screen

HIPAA Compliant Tactics

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Technology is an Overwhelming Driver in Disruptive Innovation

Virtual and Augmented Reality

Accessible Experiential Technology

Mobile as Engagement Sensor

Mobile as Engagement Sensor

Changing Expectations of Your Convention Customers

• Think about their age, their motivations, the way in which they intake information.

• The shift to education and “search” – SEO on the Exhibit Floor

• Millennials want a relationship

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Why the Need for Patient-Centricity?

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Shouldering more of the cost of care

More vested in care direction

Valuing the Quality of Life

Physician as god model outmoded

Insatiable need for info (#1 lookup)

Insistent on value

Education and communication are common threads = MEETINGS / SYMPOSIA Industry

What Can I Do to Succeed in a Disruptive Ecosystem?

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In what ways does your CONFERENCE / MEETING help YOUR customers:

Create a “conversation”?

Determine what patients want?

Determine what prescribers need?

Define what payers will reimburse?

Ultimately, build trust?

What Can I Do to Succeed in a Disruptive Ecosystem?

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Actively Collect and Engage with Social Media Apply CRM (Salesforce.com) Know your customers before they get to the MEETING

(Pull vs. Push) PLAN To continually add to your delegate profile

throughout the year Leverage Big Data Be intentful

What Can I Do to Succeed in a Disruptive Ecosystem? • Take Chances • Question the Status Quo • Be purposeful in change • Being unique is not always useful

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BECOME AN EXPERIENTIAL CONTINUUM PRE-MEETING > CONGRESS/EVENT > POST-MEETING

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So, that’s the end of this talk. But not the conversation.