Health IT companies need to focus on innovation in order to create new services and business models, according to a new report from PricewaterhouseCoopers' Health Research Institute, Healthcare IT News reports (Manos, Healthcare IT News, 10/7).
Details of Report
For the report, HRI:
- Interviewed more than 30 top executives at health care technology companies; and
- Conducted a survey of more than 35 health technology companies.
Respondents included companies focused on:
- In-vitro diagnostics;
- Disposable medical products;
- Medical equipment;
- Diversified life sciences;
- Implantable devices; and
- Other health care sectors (PwC Health Research Institute report, October 2013).
The report also includes a Web-based interactive innovation scorecard based on companies' innovative practices.
Researchers found that only 14% of medical technology executives have formally managed innovation activities. Meanwhile, 17% of such respondents said they believe their companies are "innovation pioneers," according to Healthcare IT News.
The report also found that:
- At least 18 new companies are driving innovation in the health IT sector;
- A device's value is now measured by the company's ability to help customers solve broader problems;
- Integrated services and business models are becoming more important;
- Health care technology companies have been slower than other businesses to use new social, mobile, analytic and cloud technologies; and
- Such companies are relying on open innovation to drive future growth.
The report found that while health care technology executives lack formal processes to achieve greater innovation, they expect a higher level of innovation over the next three years.
In a news release, PwC Managing Director Christopher Wasden said, "Historically, medical technology innovation has relied on incremental improvement ... [b]ut 'innovation' needs redefining for an environment that rewards value -- measured in affordable patient outcomes and customer satisfaction -- over volume."
Wasden said that health care technology leaders "need to change their business models, their corporate DNA, to embrace lean innovation beyond their core operations."
Ed Yu -- principal at PwC -- outlined three factors that are "essential to transform today's medical technology companies," including:
- Embracing failure;
- Embracing the disease; and
- Measuring innovation with forward-thinking metrics (Healthcare IT News, 10/7).