Building a Good Digital Health Business Daniel Young 24 October 2022

Building a Good Digital Health Business

Forgetting something?

Forgetting something? πŸ˜•

You’d be surprised how many digital health ventures forget to pair good technology with an equally thoughtful and well researched business plan.

Here’s an (obfuscated) experience share. πŸ‘₯ πŸ‘₯

The story begins with an ambitious team working on promising research. After years of development, testing, validation, and regulatory work, they had their product ready to put on the market.

The team felt good; everyone was excited. Now it was time for the business model and sell the product to physicians.

And this is where it blew up. πŸ₯½ πŸ’₯

They based their business on a subscription model, with weakly tested assumptions filled with biased, self-affirming feedback.

The reality of their oversight was harsh. Physicians expected to fees based on usage, not a subscription. This was the first failure.

The second: workflow. The team hadn’t accounted for effort needed to integrate the product into the clinical workflow.

This product didn’t align with real-world workflows and billing procedures. Physicians rejected it. While the underlying tech was solid, the business was an afterthought.

Best to understand business realities upfront, fitting the product into physicians’ clinical and practice workflows, not the other way around.