How To Conquer Digital Innovation Inertia in Health Care
This essay was originally published in August 2015 in iHealthBeat, which is no longer in publication.
The current state of digital innovation in global health can be described using two words: excitement and frustration.
On the one hand, StartUp Health, a global entrepreneurship development company, reports that more than 7,600 startups around the world are “developing solutions in digital health.” In addition, during the first half of 2015, investors poured more than $2.8 billion into companies creating and scaling digital solutions.
On the other hand, there is great disappointment among medical professionals, executives and others about the current state of digital health technologies. For example, physicians are greatly frustrated with electronic health records. And some doctors loudly complain that many innovations do nothing to aid clinical practice and in fact impede their ability to serve patients. Other executives are frustrated that many digital tools are not yet capable of solving the biggest problems in health, such as preventing non-communicable diseases and modifying negative health behaviors over the medium- and long-term.
In this environment, you might expect the health and medical establishment to completely ignore digital technologies. But the opposite is happening. Leading health organizations globally are regularly engaging with mobile, wearables, big data and other tools.
However, we still have a long way to go. According to a 2015 survey by Validic, a health care technology company, 59% of respondents from health organizations said they have no meaningful strategy to integrate digital innovations into their operations.
Why are so many health organizations stuck in digital innovation inertia even though technology is playing an increasingly important role in health and medical care? One reason has to do with the fact that it is difficult to find widely available guidance about whether and how to engage. Another contributing factor is what I call the opportunity glut. There are so many different digital technologies and innovations being introduced almost daily that people are having trouble determining where to focus their attention.
To help address the issue of innovation inertia, I’m offering two sets of resources. First, three actionable tips designed to help you think more clearly and constructively about how to overcome digital inertia. Second, because solving this complex problem will require much more than an essay, you’ll learn about two tools that will help you benchmark, improve and accelerate your digital innovation efforts in health.
Tip #1: Identify the Areas of Greatest Opportunity and Unmet Need
The first step in overcoming innovation inertia is to identify which areas in digital health are most worthy of your time and attention. Fortunately, there is a widely available, but often-overlooked, source of intelligence that can help organizations focus their efforts: digital health investment data released quarterly by organizations such as StartUp Health and Rock Health.
Savvy investors are making high-stakes decisions about which companies to support based on current and emerging trends and opportunities that may not be immediately apparent. Organizations can use funding data to understand which innovations may be widely adopted or have the most impact on the market. Assuming there is overlap between broader market investment trends and your internal capabilities and areas of focus, you can use this information to guide decision-making about whether and how to deploy human and financial resources.
Accurately interpreting investment data to guide strategy regarding the innovation areas most worthy of attention is not easy. To help, I recently partnered with StartUp Health to produce an in-depth analysis that will help you make more informed strategic decisions in this area.
Tip #2: Benchmark Your Digital Innovation Progress (or Plans)
Many times organizations plan, launch or engage in innovation efforts without having a clear sense of how they should be progressing or potential obstacles to success. This is another major contributor to innovation inertia. One way to solve this problem is to engage in a benchmarking process, focused on improving communication, highlighting areas of strength and weakness and more.
To aid digital health benchmarking efforts, I developed a framework called the Digital Health Innovation Integration Curve (shown above). It provides organizations with a common language for identifying where they stand in the process of embedding digital innovations into operations, products, services and more.
But developing a common language around digital innovation is only the first step. How will organizations determine whether they are at Stage I, II or III in the digital health innovation integration process? This is a vital question that can’t be fully answered within the scope of this essay. Those interested in thinking through and engaging in self-assessment efforts are invited to participate in the State of Digital Health Innovation Study, where you’ll be able to measure your innovation progress in about 15 minutes and receive a range of additional benefits.
Tip #3: Learn From Others
Many people in health organizations are wary about being first. They prefer to learn from others to better understand what’s working — and what’s not. Fortunately, with more than 7,000 startups developing digital innovations globally, the evidence and experience base in digital health is growing rapidly.
But, what’s the best way to find case studies? This is another area where investment data can be very helpful. Each quarter StartUp Health, Rock Health and other organizations highlight companies that are receiving significant attention from investors. By using Google or other intelligence gathering tools, you can learn more about what these organizations are doing and the types of clients they serve. Don’t be afraid to reach out to organizations in your industry segment directly. I’ve found that many people are very willing to share their experiences in ways that don’t reveal confidential or proprietary information.
The Long and Challenging Road Ahead
It has taken years for digital technologies to reach the point where they have become highly relevant and influential in health. It will take more time for health organizations to figure out the best ways to use digital tools to reduce costs, improve care, streamline processes and more.
Those who figure out how to solve these challenges will gain financial, strategic and competitive advantages. You now have access to tools that will help you overcome digital health innovation inertia. The only question remaining is whether and how you’ll choose to use them.
