Emerging Innovation In Health Care

Executive summary

The emerging market in health care innovation

Tilman Enrbeck, Nicolaus Henke and Thomas Kibasi

Emerging Innovations in the delivery of health care services particularly in developing countries, offer a deep insight on how to tackle its rising costs. As health care is consuming large share of income in both developed and developing countries. Innovators from developing countries have founds ways to deliver health care effectively at lower cost while increasing both access and quality. The innovators are uncovering the pattern for raising productivity across health sector- public, private, and social. Despite the passage of health care reform legislation which concerns on tackling costs- reducing the costs of better health care

Identifying and promoting innovations are not enough they should understand how it be replicated elsewhere as well. To end this, McKinsey conducted a research in partnership with the World Economic Forum to study the most promising novel forms of health care delivery and in particular to understand how the innovation has impacted its economies.

According to research the innovations were not born form developed countries rather it was from emerging markets. Two factors explain the reason first, necessity breeds innovation. Second, because of weakness in the infrastructure, institutions, and the resources of emerging market making entrepreneurs to bypass western models and generate a new solution.

McKinsey researched 30 successful innovations that pursued a handful of different strategies to change the economies of health care delivery which were not successful by chance but by the innovators understanding of the opportunities. According to research all these innovators if not all at least used some of these

Hence, they can tightly link skills and training requirements to task at hand, thereby lowering labor costs through specialization and overcoming labor constraints.

Standardize operating procedures

In order to minimize the waste and improve the utilization of assets and labor successfully innovators use highly standardized operating procedures. The usage of the highly standardized operating procedures raises the quality of care and facilitates the transfer of knowledge. It allows innovators to use a form of production specialization, borrowing process flow, management and improved techniques from manufacturing industries.

Borrow someone else’s assets

Innovator’s main concern is to reduce capital investment and operating costs which can be done by usage of existing institutions, infrastructure and networks of people which allows them to initiate a care delivery services at optimum level making innovators easy to initiate the delivery of health care services at low cost with better quality and access. Open up new revenue