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Name Yulia Kozlenko
NetID ykoz577
Group Number: 264
Website Link:
Tutorial Details
Tutor: Day: Time:
Johnnie Shubert Wednesdays 12:00
Time Spent on
25 hours Word Count: 1506


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.
3.1 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
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).


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
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,


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
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).



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.


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.


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 patient’s 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.



Patient checks
heart rhythm with
wireless device
Data transmitted
to doctor via Internet?
Doctor sends
notification to
Appoitment with
doctor needed?
consultation /
Video Conference
Virtual Clinic / Doctor Electronic Data Processing System

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.


Customer leaves
Would you l ike to leave
feedback to improve our
Customer leaves
Another service
Research and Development
Innovation Process


3.9 Functionalities
 Update customer’s 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.
 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.


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
Processes Functionalities Specific Information
Broad Information

and sales
1. Online
1. Update customer’s 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
1. Receive feedback for application
2. Report to sales and marketing
department on new features

Service feedback analysis
Marketing analysis system
Enterprise Resource
Planning System
Enterprise Resource
Planning System


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.

1. Southern Cross Media Release. (2014). Wellness in the Workplace. Survey Report
2013. Retrieved from

2. New Zealand Ministry of Health. (2014). Targeting Diabetes and Cardiovascular
Disease. Survey Report 2014. Retrieved from

3. Business Dictionary. (2014). Definition of Health care industry 2014. Retrieved from

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.