Transcript Slide 1

TechnolAGE: Study on business and financing
models related to ICT for ageing well
Sustainable business cases for ICT based services for elderly care
Home Sweet Home
Midterm Workshop
Barcelona, 17 January 2013
www.technolage.org
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commissioned
by DG CONNECT
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Contents
(1) The TechnolAGE Study: Introduction and overview
(2) Focus on two sustainable business cases
(3) Conclusions and lessons learned
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(1) The TechnolAGE Study
Introduction and overview
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The TechnolAGE Study
Study on business and financing models related to ICT for
ageing well
• Project commissioned by DG CONNECT, conducted by Ernst & Young and
the Danish Technological Institute
• The overall aim is to show that it is worth investing funds on ICT for
ageing well and that it is possible to generate a return on investment
• Policy and strategic context:
• Need for a change in mindset behind financing care systems for older
people – it is worthwhile investing now to save in the longer term
• Shift from cost to investment mindset (benefits for older people,
market, society)
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Objectives and scope of the Study
1
What is already out
there?
2
What can be
learned from his?
3
How can this be
shared?
20 case studies of sustainable
business & financing models for
existing innovative ICT solutions
for ageing well
5 case studies (selected from
the 20) explored in greater
detail with respect to their
replicability
Stakeholder engagement
through an interactive project
website & events (e.g.
conferences, workshops, etc)
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Methodology for case selection
State
Commercial
Dimension B:
Civil society
Actors
Insurers
People
Funder
Dimension C: Provider
Actor roles
Carer
Older person
Prevention
Dimension
Care & cure
D:
Domains
Active ageing
Local / regional
Dimension E:
National
Scale
Cross-border/Int’l
Dimension F:
Type of intervention
Type
Scandinavian
Continental
Mediterranean
Eastern
European
Actors
(B)
Older
person
AngloSaxon
Carer
Actor roles
(C)
Dimension A: Geographic region
TAXONOMY DIMENSIONS
Provider
20 cases of sustainable business &
financing models for existing innovative
ICT solutions for ageing well
Funder
ICT solutions
for ageing
well
State
Commercial
Civil society
Insurers
People
The case selection taxonomy was
used to ensure a balanced and
pertinent selection of cases across
the main types and issues relevant to
the study.
5 cases for the
replicability and
scalability analysis
• Impact evidence
• Scaling/replicability
•
•
•
•
•
evidence
Business model
innovation
Availability of
information
Geography
Domain
Scale
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The selected 20 cases
Wit-Gele Kruis:
Electronic Nursing
Record (ENR)
Scottish Telecare
Programme Board (STPB)
SOPHIA
VieDome
(Mextal B.V.)
Abilia: Assistive technologies
for patients with dementia
Phoniro
Vivago
North Yorkshire County
Council (NYCC) telecare
and NHS North Yorkshire &
York (NHS NYY) telehealth
Patient briefcase
(Medisat)
Netwell-CASALA Centre
and the Great Northern
Haven project
Distress care AREÍON
(TeleCare) Emergency Care
doc@HOME®
(Docobo Ltd)
Griffin Medical
Alarm
The ESOPPE
Programme
Digital Hungary,
mHealth
eCare (NEAT)
KEY:
SIMAP (Vodafone
and Red Cross)
Continental (4)
Telecare and remote
monitoring for older people
in Veneto Region (TESAN)
Eastern European (3)
Mediterranean (5)
Eldy
Nuvola IT
Home Doctor
Anglo-saxon (4)
Scandinavian (4)
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The selected 5 cases
The Scottish Telecare
Programme Board and the
2006-2011 Telecare
Development Programme
(STPB)
VieDome
(Mextal B.V.)
Patient briefcase
(Medisat)
SOPHIA
SIMAP (Vodafone
and Red Cross)
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Methodology for case analysis
• Each of the 20 cases has been analyzed based on the 9 elements of the
Business Model Canvas (Osterwalder, Pigneur et al, 2010*)
• Additional features were also considered, in order to account for
framework conditions
The Business Model Canvas
Key partnerships
Key activities
Key resources
Cost structure
Value
propositions
Customer
relationships
Customer
segments
Channels
Revenue streams
* See http://www.businessmodelgeneration.com/
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(2) Focus on two sustainable business
cases
SOPHIA and the Patient Briefcase
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The SOPHIA case (Germany)
(1) Housing
companies as the
distribution channel
€
€
€
Joseph
Stiftung
Stadtbau
Bamberg
Wohnbau
Coburg
€
(non profit)
(2) Regional
franchise model
(4) The role of the
SOPHIA volunteer
network in
providing an end
user-centric
service
(3) Customer service centre
and professionally
managed network of local
service providers
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The SOPHIA business model
Key partnerships
Key activities
Key resources
Cost structure
Value
propositions
Customer
relationships
Customer
segments
Channels
Revenue streams
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Financial strategy and success factors of
SOPHIA
• Sophisticated franchise (fixed-fee) and financial
incentives to housing organizations
• Strategy as price leader,
with 90% refund eligibility
• Non-profit partner reinvests
any profit
• Revenue growth keeping pace
with customer growth with
managed costs
€ 600.000
Total costs
Total revenues
€ 500.000
€ 400.000
TOTAL reve
€ 300.000
Breakeven
TOTAL cost
€ 200.000
€ 100.000
€0
2005
2006
2007
2008
2009
2010
2011
• Breakeven achieved in 2010, after 5 years (for housing
companies) – key is the growth in customer base
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The Patient Briefcase case (Denmark)
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The Patient Briefcase business model
Key partnerships
Key activities
Key resources
Cost structure
Value
propositions
Customer
relationships
Customer
segments
Channels
Revenue streams
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Financial strategy and success factors of
the Patient Briefcase
• Public investment through national and
European research funds
• Early establishment of private company to
convert public/own investment into viable
enterprise
• Recent breakeven and 2012 profits after 5
years
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(3) Conclusions and lessons learned
SOPHIA and the Patient Briefcase
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Some lessons on and barriers to sustainability from
the two cases
BARRIERS
LESSONS
• Breakeven thanks to favourable
•
•
revenue and cost developments
Clear benefits for both public and
private partners through franchising
approach adding value to each actor
Strong staff commitment, also from
volunteers
• Low average income of older people
•
(insufficient to support the market
alone)
Public financial aid relies on
demonstrating high need levels
• Radically innovative
•
product generating large
cost savings and clear user
benefits
Flexibility of product in
terms of contexts and
conditions
• High initial reliance on public R&D
•
funding
Price setting and contractual
difficulties with public customers
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Some lessons on and barriers to sustainability from
the twenty cases
BARRIERS
LESSONS
FOR PUBLIC SECTOR
FOR PRIVATE SECTOR
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Policy context
Producing/accessing good impact evidence
Smart procurement
Standards, guidelines, interoperability
Medium / long-term view
Smart use of funding
• New partnership / business
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Lack of standards
Silo benefits/investments
Lack of understanding
Lack of skills / infrastructure
• Lack of buy-in from senior
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models
Ecosystem approach
Modular solutions
Consumer-led models
Impact evidence
management
Uncertainty of funding
Channels and pricing
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Stay tuned...
Visit us:
Follow us on Twitter:
Contact us:
www.technolage.org
@TechnolAGE
[email protected]
Final conference: Brussels, 14 February 2013
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Thank you!
For any comments or questions, please do get in touch!
Mariafrancesca Miele
Senior Consultant, Ernst & Young
[email protected]
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