Welcome.

Innovation and Entrepreneurship

in Healthcare
Module code: MOD005917
Module Leader: Carmelita Charles
Email:
carmelita.charles@london.aru.ac.uk
Ground Rules
• Respect ( find out what it means to me)
• Valuing contributions –everyone has the right to
express their opinion
• Everyone has the right to be listened to and have
their views acknowledged
• Arguments will be challenged
• It is ok to laugh and have fun
• Zoom Online Etiquette
• Time Management
Aims and Objectives
By the end of this session you will:
• Have considered an integrated approach to innovation and
entrepreneurship
• Have examined the innovator’s method
• Have explored Business model innovation
• Have began the process of examining value proposition by
considering what is value in healthcare?
Week 3 session 1
Integrated Approach to Innovation and
Entrepreneurship
• As explained by Peter Brinckerhoff,6 “social entrepreneurs are
people who take risk on behalf of the people their organization
serves.” Thus the term ‘social entrepreneur’ refers to someone
who uses the same techniques as the entrepreneur of a profit-
oriented business, but who does so in order to create and manage a
not-for-profit, socially ameliorative businesses. Such social
businesses are a very important topic of study these days, as there
is high awareness of social problems and increasing critique of our
dominant capitalist model.

Lorenzo, Oswaldo/Kawalek, Peter/Wharton, Leigh.

Entrepreneurship, Innovation and Technology]
The Innovator’s Method
• The second method was developed by Nathan Furr and Jeff Dyer and is described in
their book The Innovator’s Method.3 The authors summarize and integrate different
innovation perspectives into an end-to-end innovation process comprising four stages:
(1) insight, (2) problem, (3) solution and (4) business model. From their investigation
they describe how corporate innovators adapt principles and tools from startups that
are navigating under scenarios of uncertainties.
• The minimum viable product is neatly defined by Ries as “the version of a new product
which allows a team to collect the maximum amount of validated learning about
customers with the least effort”. In short, it gets some functions into the marketplace
in a way that is sufficient for entrepreneurs to learn about authentic consumer
reactions. It is through these customer reactions that entrepreneurs learn to define
what is the “minimum awesome product”: that which can be given a full market release
and which will be likely to garner and generate positive responses from users and
consumers. Alongside this, and as part of the same process, the innovator generates a
new business model to deliver the solution to the market (see Figure 3.2).

• [Lorenzo, Oswaldo/Kawalek, Peter/Wharton, Leigh. Entrepreneurship, Innovation and

Technology]
The Innovator’s Method
• The minimum viable product is neatly defined by Ries as “the
version of a new product which allows a team to collect the
maximum amount of validated learning about customers with
the least effort”. In short, it gets some functions into the
marketplace in a way that is sufficient for entrepreneurs to
learn about authentic consumer reactions. It is through these
customer reactions that entrepreneurs learn to define what is
the “minimum awesome product”: that which can be given a
full market release and which will be likely to garner and
generate positive responses from users and consumers.
Alongside this, and as part of the same process, the innovator
generates a new business model to deliver the solution to the
market (see Figure 3.2).
The Innovator’s Method
• An innovation starts with an insight about a potential need.
Once the innovator has an insight, she needs to understand the
‘real’ problem by building knowledge. Then, this innovator
needs to find the path to the solution. In doing so, it is likely
useful for the innovator to build a prototype.
• She will often use one of four types of prototype:
• (1) a theoretical prototype,
• (2) virtual prototype,
• (3) minimum viable product and
• (4) “minimum awesome product”.
The Innovator’s method
Source: Nathan Furr and Jeff Dyer, The Innovator’s Method. Cambridge, Harvard
Business School Press, 2014.
Business model innovation
• Business model generation is a fundamental stage of the
entrepreneurial lifecycle. The recommendation for
entrepreneurs is that they should design, develop and test as
many business models as possible. Using multiple business
models for a startup allows the entrepreneur to design and
test multiple hypotheses.

• [Lorenzo, Oswaldo/Kawalek, Peter/Wharton, Leigh.

Entrepreneurship, Innovation and Technology]
Business model innovation
One of the main enablers of business model innovation is technology.
In particular, technology that has a capacity to disrupt can impact
profoundly on alternatives in the market.
According to McKinsey’s characterization, there are 12 potential
disruptive technologies. These include mobile internet, automation
of knowledge work, internet of things, cloud computing, and
autonomous vehicles. The emergence and dissemination of these
technologies brings about a significant set of opportunities for
innovation and entrepreneurship around them.

• [Lorenzo, Oswaldo/Kawalek, Peter/Wharton, Leigh.

Entrepreneurship, Innovation and Technology]
The Business Model Canvass
Group Activity:
In you groups research the 12 potential disruptive technologies
that is characterised by Mc Kinsey. Go to page
Comfort stop 15 minutes
Healthcare Innovation Characteristics
“The health care product is ill-defined, the outcome of care is
uncertain, large segments of the industry are dominated by non-
profit providers, and payments are made by third parties such
as the government and private insurers. Many of these factors
are present in other industries as well, but in no other industry
are they all present. It is the interaction of these factors that
tends to make health care unique.” (Morrisey, 2008)

• [James Barlow. Managing Innovation In Healthcare]

Distinctive features of healthcare that
influence its innovation processes
• The nature of healthcare ‘technology’ and ‘innovation’.
• A risk-averse culture and extensive regulation
• The economics and politics of healthcare
• The environment into which new technologies and other
innovations are adopted and implemented is often extremely
complex,

• [James Barlow. Managing Innovation In Healthcare]

The Context for healthcare Innovation
The context within which hard and soft healthcare technologies are
created and deployed is very important. This can range from individual
patients to healthcare organisations or whole health systems. Even
clearly defined healthcare processes may be subject to a degree of
customisation depending on the specific context.
The meanings associated with a health-care technology are therefore
‘socially constructed’ within the context and evolve over time. This has
been shown in specific medical technologies. Cochlear implants (Garud
and Rappa, 1994) and cataract surgery (Metcalfe et al., 2005) are two
examples of medical technologies which evolved during their
development and use.

[James Barlow. Managing Innovation In Healthcare]

Hard and soft technologies in
healthcare
Hard technology, the physical artefacts — drugs, devices, other
equipment and physical infrastructure.

Soft technology, the practices, procedures, protocols, service designs

and
guidelines that are often used in conjunction with hard technologies
— a protocol for carrying out an innovative surgical technique, for
example, or more broadly a service design for providing ‘telehealth’
or ‘telecare’ for frail elderly people, combining sensors and other
devices to monitor vital and other signs with home care services.

• [James Barlow. Managing Innovation In Healthcare]

Group Activity: Classifying healthcare
innovations
• Why do you think these have been described as innovations?
• What is innovative about them?
• Try to categorise them according to
• — their degree of novelty (how new?);
• — their form or application (product, process, service);
• — their ‘innovativeness’ (radical, incremental, architectural,
modular).
• How easy do you think it will be to ensure the innovation is
widely adopted? What are the organisational, cost-benefit and
other acceptance issues?
Homework: Watch What is value in
Healthcare?
https://www.youtube.com/watch?v=c1QfCfab9G0&feature=yout
u.be
Professor Martin Elliott, Gresham College Lecture
Useful Websites
• Digital News
https://www.digitalhealthnews.eu/tunstall/1300-swindon-pct-launches-
mainstream-telehealth-monitoring-service-for-copd-patients
Department for Business Innovation and Skills
https://www.gov.uk/government/organisations/department-for-business-
innovation-skills
• Kings Fund
https://www.kingsfund.org.uk/blog/2021/01/2020-health-policy-year-12-charts
• NHS Digital
https://digital.nhs.uk/
• Nuffield Trust
https://www.nuffieldtrust.org.uk/health-and-social-care-explained
References
Barlow, J., (2017) Managing Innovation in Healthcare. World
Scientific. London.

Bessant, John R.Tidd, Joe. (2015) Innovation and

Entrepreneurship 3rd Edition. Wiley , Chichester, West Sussex

Lorenzo, O., Kawalek, P., Wharton, L., (2018)

Entrepreneurship, Innovation and Technology: A Guide to
Core Models and Tools. Routledge Focus. Oxford.