The sickcare seven sources of innovation

Much like a patient in the ICU suffering from Corona virus, the global economic recovery will be in three phases; 1) treatment and stabilizing vital signs 2) reversing the catabolic phase to an anabolic one, and 3) rehabilitation to get back to the premorbid state. Each presents opportunities for those with an entrepreneurial mindset who see and pursue them.

One of the most prolific management thought leaders, Peter Drucker, defined seven sources of innovation in his book,?Innovation and Entrepreneurship?(1985):

1. The Unexpected.?This is indeed the Eureka moment where something unexpected happens that leads to a new product or service. You weren’t looking for it; the surprise found you! It is by far, the easiest and simplest source of innovation.

The problem, though, is that there are relatively few Ah-ha moments. Most innovation is incremental and evolutionary, not never been done before revolutionary. Like the frog in the boiling water metaphor, it also takes an entrepreneurial mindset to see things evolve that others might see, but not recognize as an opportunity. In addtion, unexpected failures generally offer opportunities more than unexpected successes.

1. Incongruities.??When there is a discrepancy between what is and what should be, you have an innovation opportunity. It’s that weird feeling, an incongruity, between expectations and results. It’s a disruption in the logic or rhythm of a process. It just doesn’t feel right.

Ask why not or what if? Cognitive dissonance, the state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change ,is an opportunity.

1. Process Needs.?Perhaps there is a bottleneck or a weak link in a critical process. A substantial (not just a tweak) improvement to the process leads to innovation. The process innovator is always searching and saying, “There has to be a better way!”

Take advantage of the value of value chain analysis and whether there is a problem begging for a solution.

1. Industry and Market Structure.?Industry and markets are always in a continual state of flux. Regulations change, product lines expand, and others shrink. Those that watch these changes may recognize untapped opportunities for new types of products and services.

The sickcare industry is rapidly changing. But, like most highly regulated industries, rules create ecostems that evolve into business models that either support or stifle innovation. Digical care, retail based clinics, Amedzon products and services and alternative care delivery channels, like telemedicine, are examples of just the beginning of the change to care at home and DIY medicine.

1. Demographics.?The changing demographics (age, education, disposable income, etc.) and moving populations are rich sources of ideas for creating new products and services.

The global aging population and dropping fertility rates will be the biggest demographic headline for the next 20 years.

1. Changes in Perception. Meaning and Mood.?Over time, populations and people change. The way they view life changes, where they take their meaning from and how they feel about things changes over time. Savvy innovators detect these shifts and leverage them.

Examples of such changes include the death of expertise, consumerism, the 4th industrial revolution and conveniencecare

1. New Knowledge.?New technologies, knowledge and discoveries can completely change an industry. These types of innovations are usually what people mean when they talk about innovation, yet these sources have the longest lead times to commercial development.

The WEF predicts that the three most significant AI-driven changes will include AI-powered predictive care, networked hospitals and better patient and staff experiences. To achieve these goals, hospitals and health systems will need to strengthen partnerships with the government and private companies to improve AI interoperability, transparency and equality, and to implement international standards of data privacy

The pace of technological change is increasing. However, those that add true value and transform an industry are few. We are experiencing a heathcare innovation bubble as well as innovation and technofatique. Trust is in short supply.

In addition, since sickcare is a wicked problem, it will take an ecosytem of systems addressing most of the above opportunities to effect change. Deloitte sees it this way. Others will see it differently.

The sources of innovation and opportunity are immutable. Seeing them and translating them into solutions that add value is everpresent but rarely accomplished and getting increasingly complicated. The present sense of urgency might change that.

Arlen Meyers,MD, MBA is the President and CEO of the Society of Physician Entrepreneurs on Twitter@SoPEOfficial