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•Innovation @ hospitals –
•a call for revolution
•CEO Conference - breakout
•Fabian Blank,
McKinsey Boris Maurer,
Berlin
•April
2011
•CONFIDENTIAL AND PROPRIETARY
•Any use of this material without specific permission of McKinsey & Company is strictly
prohibited
•“Innovation” is about improving your offering – applicable to all hospitals
•
•System role – AMCs/ universities
•Creativity that ships
•– Steve Jobs
•Expand and grow market – Privates
•Innovation
comes
•from desperation
•Efficient delivery position – All
•– a hospital CEO
•McKinsey & Company | 8
•Innovation-enabled care provision – Neither new, nor niche
•New delivery models
•Cost efficient platforms
•Market needs
•McKinsey & Company | 8
•What do those examples have in common?
•Scalable and self-sustaining Disruption from “status quo”
 Real need and demand,
not addressed before
 Ecosystem i.e., resources
and absence of constraints
 Tailored operating model
Leverage existing assets
Make-buy-partner
–
–
 “Step change” in either offering or
approach
New (hospital in a mall?)
Different (remote triage?)
•–
–
 Against ”common belief”
 Building a new business
 Robust revenue model
•McKinsey & Company | 8
•Why
innovate?
•McKinsey & Company | 8
•High volatility among procedures even over short time – what
•will coming years’ top 15 be?
•ILLUSTRATIVE
•
•Top 15 operations procedures, Germany
•
•Dropped
•
Changed
•
New
Changed
New
•Dropped
•2005 2009
•
•SOURCE: Operations statistics StBA 2005, 2009; team analysis
•McKinsey & Company | 8
•Innovation occurs across 3 dimensions
•The innovation wheel – sector view
 Innovation in
therapy
Electrophysiology,
neuroradiology, ...
 Needs of payors
Corporate concepts
care management,...
 Service-oriented
patient needs Ediagnosis, health
cities....
•Medica
l
•Technological
•Managerial
 New/alternati
ve therapies
•Da Vinci OP-robot,
Proton-BeamTechnology, ...
 Innovations in
system-, processand infrastructure
Smart hospitals, green
hospitals, ...
 Alternative reimbursement models – "Pay-for-Performance", ...
 Integrated care models – Strategies for medical care centres, ...
•McKinsey & Company | 8
•How do innovation
leaders
•do it?
•McKinsey & Company | 8
•Innovation comes in 2 completely different forms
•Evolution
•Revolution
•What
?
 Market and
customer insights
 Strategic foresight
 Changin
g
perspectives
•How
?
 Operatio
nal
excellence
 Thought leadership
 Orchestrating
eco-systems
•SOURCE: "Innovations Weltmeister"
•"today
"
•"tomorrow
"
•Within the
company
•Open
innovation
•McKinsey & Company | 9
•Institutions fail in the “death zone”
•Demand
•Almost all
•institutions fail in the
death zone
•Late stage
• ▪ Changed
expectations
•▪ 2 operating models
at the same time
•▪ Shifting resources
•
•Early stage
•Time
•
•SOURCE: "Innovations Weltmeister" McKinsey & Company | 1 4
and leadership
▪ Transforming
the core to free
up resources
•▪ A new story
•2 innovation journeys – the similarities
•Disruptive improvement of core business
 Clean up “construction sites”
 Free up management attention and resources
 Shift resources
•"Number One"
•“1st Service
Provider”
•Visionary programs to bring change about,
but starting in the core
 Project i
 Perform to win
 1st Service Provider
•Clear demarcation between "old" and "new“
and individual solutions to the "2-models at the
same time” challenge
•SOURCE: "Innovations Weltmeister" McKinsey & Company | 1 4
•What does this
mean
•for hospitals?
•McKinsey & Company | 1 9
•Learning from Apple & Co – Innovation partnerships?!
•“Idea competition”
•Ope
n
•“Idea
clinic”
•“Innovation unit”
•Close
d
•Innovation.Lab ?
• ▪ Like-minded,
non-competing
partners
• ▪ Joint effort –
individual interpretation
•Single hospitals Many hospitals
•McKinsey & Company | 1 9
•Innovation@hospitals
•1
•How do you look at innovation in your
•hospital?
•2
•How do you approach innovation
•management – and who does this ?
•What is your experience with this ?
•3
•McKinsey & Company | 1 9
•Thank
you
•McKinsey & Company | 1 9
•What's so difficult about
it?
•McKinsey & Company | 1 9