Editor’s note: This article is an update on modelH, the dynamic co-creation forum created by Kevin Riley and Associates, Innovation Excellence, and Batterii where healthcare innovators from around the world are building a foundation for new business models in healthcare. Their goal is to co-create an open source business model canvas that applies specifically to the US healthcare system.
Learnings on Informatics for the Business Model Canvas for Healthcare (modelH)
We just wrapped up our 16th business building block sprint on Informatics. In summary, the sprint for Project 1.16 on Informatics completed 2 objectives:
- Defining why we need a block for Informatics in our business model canvas, and the
- Questions to ask on the canvas for the Informatics
Why we need the Informatics Block
Your Value Proposition is the means your business solves the needs of your customer’s Jobs-to-be-done; this is called Product Market Fit. Measuring your revenue growth and costs is part of good business governance. However, even if you are making money, if you don’t measure your Value Proposition’s alignment with the Product Market Fit, you leave yourself open to someone disrupting you. Take into account the whitespace between your Value Proposition and your customers’ Jobs-to-be-done. This is the “blue ocean” of your business model: Explore it, or someone else will. Informatics is the means with which to measure and monitor your Value proposition.
Questions to Ask on the Canvas for the Informatics Block
In this business model building block we ask the questions you need to properly gauge how well you are reaching your goals, how closely you are keeping with your vision (and when you need to pivot), and how you are maturing over your business model growth. These are the Questions that should be answered when developing Informatics components for a healthcare business model.
- What data is derived from your Buyer & User interactions?
- What systems are needed to capture that data?
- How does your business model gain and use insight from Buyer & User interactions?
- How does this insight improve your Product Market Fit?
- How does that insight improve your Behavioral Economics?
- How does this insight drive additional Revenues?
- How does this insight lower Costs?
Most business model canvases do not specifically prioritize Informatics as a building block, but I believe that measuring success is important in order to prove the viability of a business model. What data is required both now and as the business matures to ensure that it is able to pivot appropriately? What data can be mined so that new insights and new business opportunities in the whitespace can be evaluated? In my opinion, this is fundamental to any business, which is why we have it as a separate building block it in the modelH business model canvas.
What is Next?
We are conducting the seventeenth and final modelH project sprint on Externalities.
Interested in what we are doing?
This is your last chance to step up to the plate and become involved in the development of the modelH business model canvas for healthcare. We would love to have you join us for this final stage.
- Click here to learn more: https://www.modelh.org/modelh.htm
- Click here to join: https://bit.ly/modelH_joinup
- Follow us online at: https://twitter.com/ModelHForum
This was cross-posted from Kevin Riley & Associates BLOG – https://bit.ly/modelH-revenue
image credits: Kevin Riley & Associates, modelH Business Model Canvas for Healthcare, drawings by Mike Werner; modelH.org
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Kevin Riley is an entrepreneur, healthcare executive, and business model innovator who works with start-ups and legacy companies across the healthcare industry. He founded and was CEO of a national health care retail company, has played leadership roles for national retail health start-ups, and served as the first Chief Innovation Officer of a major insurance plan. In 2006 he started Kevin Riley & Associates Health Model Innovation to help companies with the convergence of health care and the consumer.