Tuesday, December 13, 2011

Business Model Innovations in Health Care

From the abstract: "Health care is a fast evolving sector, where global trends shape industry architecture. Healthcare providers are starting to innovate their business models in order to
respond to new trends, which are also redrawing the industry architecture of the
sector. This article focuses on the recent changes regarding healthcare providers in
Belgium and discusses their drivers, characteristics and the effect they have on the
sector as a whole. The obtained empirical insights are explained by the constructs and
theory of business model innovation, where the activity system perspective (Amit &
Zott, 2010) proves to be particularly helpful in explaining the changes. The recent
business model innovations of Belgian healthcare providers reveal that incremental
innovations, such as within-discipline grouping, aim for conservative forms of value
gains such as cost reductions and efficiency and rely on strong forms of grouping,
such as mergers and acquisitions, to accomplish this. On the other hand, more radical
business model innovations, such as competitor-groupings, are incited using value
drivers like novelty and innovation potential, and these innovations are implemented
through more novel and less stringent governance mechanisms." Read report