Raising Cohesion from a Mob of Direction-less PartsTalk Given at The RAND Corporation, October 11, 2012
a new grammar of strategy®
Health System Innovation
- Strategy and Management at a System Level-Singer, John. "What Strategy is Not." MIT Sloan Management Review. 49.2 (2008): 96.
-Singer, John. "Strategically Thinking About the Subject of Strategy." Business Strategy
Series. 9.4 (2008): 211-212.
-Singer, John. "Framing Brand Management for Marketing Ecosystems." Journal of
Business Strategy. 27.5 (2006): 50-57.
- Ecosystem-Centered Business Models-Singer, John. "Systems Marketing for the Information Age." MIT Sloan Management
Review. 48.1 (2006): 96-97.
-Singer, John. "Systems Marketing: A New Operating Model for Pharmaceutical
Marketing." Journal of Consumer Behaviour. 4.6 (2005): 480-495.
-Parise, Salvatore, Patricia Guinan, and Bruce Weinberg. "The Secrets of Marketing in a
Web 2.0 World." Wall Street Journal 15 Dec. 2008: B2.
-Singer, J.G. (2009). Ecosystem-centered business strategy. Proceedings of the 3rd IEEE
International Conference on Digital Ecosystems and Technologies (pp. 686-691). Istanbul:
IEEE. 0.1109/DEST.2009.5276680
www.bluespoonconsulting.com
Framework Research Over Seven Years
TECHNOLOGY
BEGETS TECHNOLOGY
BEGETS TECHNOLOGY
BEGETS TECHNOLOGY
GLOBALIZATION ERASES BOUNDARIES
Future of
Complexity and
Information Glut
Old Era
New Era
?
Fragmentation Getting Worse, Not Better
A Marketing Challenge, Not a Technical One
“Despite many waves of debate and piecemeal reforms,
the U.S. health care system remains largely the same as it
was decades ago. We have seen no convincing approach
to changing the unsustainable trajectory of the system,
much less to offsetting the rising costs of an aging
population and new medical advances…
…The big question is whether we can move beyond a
reactive and piecemeal approach to a true national health
care strategy centered on value. This undertaking is
complex, but the only real solution is to align everyone in
the system around a common goal: doing what's right for
patients.”
A Strategy for Health Care Reform -- Toward a Value-Based SystemMichael E. Porter, Ph.D.N Engl J Med 2009; 361:109-112
Strategy and Management at a System Level:Strategy That Raises Cohesion from Direction-less Parts
“Shock French price cuts for effective drugs”
“Philippines Seeks Second Round of 50 Percent Drug Price Cuts”
“China plans 40% price cuts on key drugs”
“Japan’s drug pricingreform will trigger industryreorganization”
“Obama seeks $135Bdrug price cuts over 10 years”
“Brazil pushes Merck,Pfizer to cut drug costs”
“Greek drug prices cut byan average 21.5 percent”
“Germany cuts drug industry’spricing power”
“New Indian drug price cutsof 10% to 70%”
A Structurally-Different World
Provider
Partner
Partner
Partner
Market Market
Market
Platform
Solution Shared
Marketspace
“Ecosystem”
Product
“Isolation”
Platform Market
Conventional View of Market Strategy System-Level View
Health Ecosystem Design
Opportunity Space from Market Integration
Disclaimer: Blue Spoon Consulting does not have a financial relationship with any company mentioned.
Brand names are used for illustrative purposes only.
New Value Propositions (and Sustainable Growth Models)
Part
VS.
Part Re-positioned
in New System for Health
a new grammar of strategy®
Pfizer
General Mills
Verizon
Microsoft
Design Management Team:Shared Vision, Planning,
and Implementation Strategy
Ecosystem Management & Marketspace Awareness
Collaborative Commerce Network
< 25 users
Joint Data Network< 500 users
Information & Sensor Network
> 1000 users
Information
Timeliness:
MonthsWeeks
Days
Keystone Players
Niche Players
Ecosystem Design & Coordination
perpetual innovation aligned within
ecosystem boundaries
World Health Organization
International Council for Science
A Closed Circuit ofSelf-Making and Self-Control
Capable of Generating
Open-Ended Growth.
A New System of Health (Obesity/Diabetes):
Raising Cohesion from a Mob of Directionless Parts
Steady Exchange of Information
Institutional Components That Set System-Level Rules of Play: Government, Public Health, Science Mediators
(E.g., Amazon.com, McKesson, Yahoo, Health Delivery Systems, Developer Community)
Age-adjusted Percentage of U.S. Adults Who Had Diagnosed Diabetes
2007
Source: CDC’s Division of Diabetes Translation.
National Diabetes Surveillance System (available at: http://www.cdc.gov/diabetes/statistics)
Regionalized Market Approach:Design and Deploy Multiple Health Ecosystems for Diabetes
Customized for Regions, Integrated Delivery Networks, Centers of Excellence, Accounts
System-Level Performance Measures- Health outcomes (population level)
- Resource utilization (direct and indirect)
- Economic performance (state and country)
- Market dynamics (ecosystem components)
- Emergence (innovation and ideas)
A Globally Superior StandardEconomic Rewards Go to Those Able to Play
the System as a Unified Whole
-Strategy and Management
at a System Level. The future of
social system design is in devising
reliable processes to birth
self-organizing structures.
-Sustainable Growth Models. Keep
adding players to the system -- the
more they are connected, the more
valuable the ecosystem becomes.
-Don!t Aim for Optimization.
Aim for good enough. Social systems
are in a constant state of flux and
reinvention.
There is No Central “I” to
Appeal to: No Beginning,
No Center, No End…
A New Way of Steering: The Logic of the Internet