The Perils of being Bedazzled with your Technology

Being ✨ bedazzled 🦄 by the technology…

Having worked in and with digital health ventures for years, I have seen fantastic technologies built on absolutely terrible business models.

Founders and physicians who may have amazing intelligence, oftentimes become so ✨ bedazzled ✨ with their product and technology, they failed to establish a realistic business model to bring their product idea to market.

⁉️ 🤦

It isn’t uncommon to see a venture that’s invested millions in product development and clinical research over many years falter because their business model was unable to generate sustained revenues.

Founding teams often do not understand the economics of digital health. 🫤

Just because a new technology can save a life, or improve a patient outcome, does not guarantee someone will pay for it. A new product needs to fit into established reimbursement structures.

You cannot retrofit a digital health product to align with billing processes efficiently. This needs to part of the original product design. 🧐

Next, you need to show your product has value to the market.

Payers and providers need to see demonstrable ROIs to justify putting a product in use. 📊

A digital health product must be validated, having a positive clinical outcome from the intended use.

Having strong evidence to validate a product gets you into the game, but you need to show impact.

A venture needs to think about the money and what’s in it for the care team. Healthcare providers and physicians need to save/make more from using the product; there must be a demonstrated positive financial impact.

Building new digitial health products is a tough business, but it’s still a business.

Avoid being bedazzled ✨ with the technology, and instead focus on validation and impact.

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