Name Yulia Kozlenko NetID ykoz577 Group Number: 264 Website Link: http://thehappyapp.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Johnnie Shubert Wednesdays 12:00 Time Spent on Assignment: 25 hours Word Count: 1506
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2 VITEK HEALTH INTRODUCTION Chronic stress negatively affect physical and mental health of New Zealanders. It is one of the biggest health problems they face today. There are many factors contributing stress including heavy workload, money obligations, emotional and relationship problems. Chronic stress increases the risk of developing such health problems as diabetes, cancer, cardiovascular diseases, obesity and depression. Vitek Health is a digital health care start-up project offering cloud-based platform providing mobile application, web server remote patient monitoring and patient portal to manage chronic diseases in New Zealand. 3. BUSINESS SECTION 3.1 Vision Constantly striving to maintain and improve the health of every New Zealander bringing our affordable solution in every home and helping people enjoy their lives. Vitek Health is the evolutionary product combination of health care and IT for the healthier and happier New Zealander. 3.2 Industry Analysis: Health care industry Health care industry comprises of providers of diagnostic, preventive, remedial, and therapeutic services such as doctors, nurses, hospitals and other private, public, and voluntary organisations. It also includes medical equipment, pharmaceutical manufacturers and health insurance firms (Business Dictionary, 2014).
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3 Force: High/Low: Justification: Buyer power: Low The health care industry is not really affected by the buyer power as despite of the economy changes particularly on medications prices and health care services buyer will still have to consume health care from companies. Peoples health cannot be chosen to be bad or good when economy fluctuates as they still need medicine and professional service. Supplier power: High Drugs and equipment development companies supply medicines to hospitals and pharmacies and hypothetically they can choose not to supply drugs to them and do it directly to patients. Doctors can chose if to join or not insurance companies which directly affect the number of patients who buy insurance because if the insurance is not accepted then the insurance holder will face restrictions related difficulties consequently the insurance industry faces threat from their suppliers. Threat of new entrants: High The main barriers to enter into health care industry are research and development investments which are quite high therefore the great money related risk is involved. Insurance companies and clinics face government rules and regulations which are strict along with investments involved in establishingnetworks with doctors or obtain particular technologies for hospitals. (Wickramasinghe,
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4 Al-Hakim & Gonzalez, 2013, p.443-447). Threat of substitutes: Low There are low risks involved as only professionals are able to deliver skilled service to cure illnesses. There is a number of small clinics specialising in traditional medicine practises less likely to be visited by patients so cannot be considered as substitutes. Consumers may switch to alternative medications if there is say an increase in a price. (Nassab., R., Rajaratnam, V., Loh, M., 2011, p.45). Rivalry among existing competitors: High Competitive rivalry is very high both among insurance and pharmaceutical companies. Biotechnologies are continuously developing, numerous drug alternatives are appearing on the market. Insurance companies sell policies to companies that provide health care to their employees, therefore they constantly have to compete to be able to survive on the market. There are few public hospitals in a particular area therefore no price competition between them. Rivalry among private clinics will be high though as they will be competing on price for the services offered. Overall attractiveness of the industry: As a whole digital health care can give an advantage through supplier integration with resulting cost- efficiencies. Digital health care providers can facilitate the differentiation from the competition emphasising the brand or reputation. As the service related costs from the patients side can be reduced the access to a competitive advantage can be facilitated. Doctors will benefit from higher patient throughput and services offered. (Wickramasinghe, Al-Hakim & Gonzalez, 2013, p.445).
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3.3 Customers and their needs The target group is patients with chronic diseases. A health and wellbeing survey of over 2000 New Zealanders by Southern Cross Health Society has found that 30% of Kiwis reported being stressed. (Southern Cross Media Release. (2014). According to the New Zealand Ministry of Health survey statistics diabetes and cardiovascular disease affect a growing number of Kiwis each year mostly their life expectancy and quality of life. 30 % of deaths annually caused by cardiovascular disease which is still the leading cause of death. Obesity is a risk factor for a number of diseases including heart disease, diabetes, high blood pressure and cancer. (New Zealand Ministry of Health, 2014). Vitek will help patients reduce expenses and time involved in unnecessary doctors visits. Qualified doctors will be able communicate and provide services to more patients by providing comprehensive remote monitoring solutions. More Kiwis are seeking health information online from unreliable sources there will be a great need for using our platform. 3.4 The Product and Service Mobile application is designed to provide round-the-clock and up-to-date patients data for medical professionals to analyse symptoms, diagnose and communicate with patients distantly. Remote patient monitoring comprises collecting patients information followed by virtual health service including medical consultations with a doctor via a video conference to obtain competent medical advice. All the appointment are arranged online. Interaction goes through patient portal. The data shared enables doctors review data and make decisions effectively resulting in on-time treatment.
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6 3.5 Suppliers and Partners Suppliers: 1. Medical device suppliers supply doctors and patients with tools including body sensors and mobile apps which can help the patient monitor and get support between doctor visits. Those tools can include devices for daily energy burn, neuro and psychology devices for controlling mental health, electrocardiography check recorders, insulin bolus calculators. 2. Cloud Computing delivers hosted services via Internet. Cloud is private so the data centre and network will be supplying hosted services to a restricted number of people and the information shared is secure due to confidentiality. Partners: 1. Insurance companies collaborate with Vitek pursue profitable and value-building growth. Potentially insurance companies can obligate diabetic customers to use our platform and apply sanctions to irresponsible users. As a result it will highly decrease total amount of payments made by insurance companies. 2. Medical clinics. Online medical consultations will be conducted by doctors at reduced rate as the clinic visits are not involved. Given that doctors will benefit growing their practises and track patients data via Internet regularly. 3.6 Strategy: Focused low cost Vitek competes on the market offering specific products and services at low prices. The business strategy is to be the low-cost health care provider in the industry concentrating on a narrow market segment achieve the cost advantage and a higher degree of customer loyalty. The advantage of this strategy is to be able to adapt a broader product development to that narrow market segment of customers that will stay loyal. Therefore the strategy is Focused low cost.
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7 3.7 Value Chain Acti vi ty: Marketing and sales The most important value chain activity for this business is marketing and sales. Additional value added by analysing marketing mix as an instrument to take the competitive advantage to customers targeted. Vitek adds value by helping insurance companies leverage the data they have linking it to end-users data and making information available to offer right health advice. User-friendly platform engage patients, doctors and insurance companies rewarding them with lower premiums and discounts to engage healthy lifestyle. Marketing must make sure that the product is targeted towards the correct customer group based on narrow segment of the market to achieve the cost advantage and a higher degree of customer loyalty at affordable prices. 3.8 Business Processes
3.8.1. ONLINE CUSTOMER SERVICE PROCESS remote patients monitoring enabled through device recorders connected to smartphones to track patients data that transmits it to a doctor over Internet. Medical consultation goes through video conferences to obtain medical advice. Customer service is based on the data shared on the portal for decision-making and on-time treatment that is how the value added.
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8 CUSTOMER SERVICE BUSINESS PROCESS MODEL
Start Patient checks heart rhythm with wireless device recorder Data transmitted to doctor via Internet? Yes No Doctor sends notification to patient Appoitment with doctor needed? Yes No Medical consultation / Video Conference Virtual Clinic / Doctor Electronic Data Processing System End
3.8.2. INNOVATION PROCESS For improving knowledge for the effective usage of the existing resources, to diversify the applications and introduce new features and enhancements Vitek highly value customers feedback to add value by introducing new business innovations and increase customer satisfaction.
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9 INNOVATION BUSINESS PROCESS MODEL Start Customer leaves feedback Would you l ike to leave feedback to improve our service? Yes No Customer leaves Another service provided Research and Development Innovation Process End Serviceprovided
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10 3.9 Functionalities 3.9.1. CUSTOMER SERVICE PROCESS Update customers status details in profile to Booked for a medical consultation with a doctor on [particular date and time]. Notify patient to send data to a doctor for analyses. 3.9.2. INNOVATION PROCESS Receive feedback for application diversification. Report to sales and marketing department on new features implemented. 3.10 Systems
3.10.1. SERVICE FEEDBACK ANALYSIS SYSTEM is necessary aspect of the system in terms of understanding customers and their perception and feedback on the service provided, products and applications used to ensure excellent experience and enhancements successfully implemented. 3.10.2. MARKETING ANALYSIS SYSTEM is essential to optimise business strategy based on detailed market analyses within market. Market research affects decision on which features need to be implemented to expand larger audience and attract investors and partners including health care providers ensuring product combination of health care and IT adds value to business.
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11 3.10.3. CUSTOMER SERVICE PROCESSING SYSTEM is one of the core systems as the steady set of processes within this system should be tracked to record and keep customers data such as contact information, request details to ensure excellent service is provided. Customer service delivery is changing with new devices and products implemented to increase customers expectations. 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Marketing and sales 1. Online customer service process 1. Update customers status details in profile to Booked for a medical consultation with a doctor on [particular date and time]. 2. Notify patient to send data to a doctor for analyses.
Customer service processing system
Customer service processing system
Customer Relationship Management System
Customer Relationship Management System
2. Innovation process 1. Receive feedback for application diversification. 2. Report to sales and marketing department on new features implemented.
Service feedback analysis system Marketing analysis system Enterprise Resource Planning System Enterprise Resource Planning System
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12 CONCLUSION The goal is to develop a platform and build a business venture that has a significant commercial and social impact in New Zealand. Market opportunities are great for this project as there are no substitute products in digital healthcare on New Zealand market which makes this start-up unique and potentially successful. Engaging New Zealanders in using Vitek Health platform promoting healthier habits and lifestyle choices will encourage them to be less stressfull, avoid an unhealthy diet and physical inactivity that are increasing the risk of chronic deseases. REFERENCES
1. Southern Cross Media Release. (2014). Wellness in the Workplace. Survey Report 2013. Retrieved from http://www.businessnz.org.nz/__data/assets/pdf_file/0005/74615/Wellness-in-the- Workplace-Survey-2013-Report.pdf
2. New Zealand Ministry of Health. (2014). Targeting Diabetes and Cardiovascular Disease. Survey Report 2014. Retrieved from https://www.health.govt.nz/system/files/documents/publications/targeting- diabetes-cardiovascular-disease.pdf
3. Business Dictionary. (2014). Definition of Health care industry 2014. Retrieved from http://www.businessdictionary.com/definition/health-care-industry.html
4. Wickramasinghe, N., Al-Hakim, L., Gonzalez, C. (2013). Lean Thinking for Healthcare - Healthcare Delivery in the Information Age. Springer.
5. Nassab., R., Rajaratnam, V., Loh, M. (2011). Applying MBA Knowledge and Skills to Healthcarea. Radcliffe Publishing: 1 edition.