(This is the third and last part)
The healthcare services provider is a founder-funded healthcare IT startup in search for repeatable and scalable production, marketing and sales processes to implement the business model for the services. The company founder and his team have defined the customer pain killer, the customer gain creator, and the minimum viable product solution.
In the environment of 2014 , a healthtech IT startup has to be particulary bold in conception. How can CEOs, entrepreneurs and their teams sustain that incredible momentum it takes to get to the next round of milestones and financing? Plus at the same time of deal with significant barriers to market? It’s a larger than life activity beyond average.
Here are quotes from providers and payors who voice significant hesitation to embrace healthtech innovation:
I guess this is the new reality. Does your technology improve care and save cost? Great, show metrics you used to measure your technology against the status quo. Seems like in the medtech innovation world performance evaluations take place every day, not every year.
Here is another quote from a payor representative:
Reading about the hurdles it takes to get your innovation to market reminds me of the FUD illness. Fear, Uncertainty, Doubt disease. Entrepreneurs have it, it will probably last for a while, but they fight it any way they can.
Medtech startup people know that building something from nothing requires mostly faith and considerable courage. It certainly teaches a good deal what life is really about. Entrepreneurs are survivors who accurately observe reality which exits independent of any observer’s knowledge, beliefs, feelings, desires, or fears. Just facts. What are the assets and resources needed to make the venture work and get the intended results?
Here is how one healthtech IT startup does it. Their business model is the 2.0 version, meaning they control their cost tightly in choosing carefully who they partner with, what resources they use, and what key activities they engage in. This defines a crisp and clear value proposition on the intake side. Combined with carefully built customer relationships and sales channels that target the right customer segment, revenue streams come within reach even in the early version of their business model.
This healthtech startup is doing it right: it defined accurately the business integration elements required to realize the value proposition in their architecture blueprint before going into delivery phase. The founder realized and recognized that the architecture is the concept that defines the characteristics, styles, and interactions among the applications. The team staged its build and test phase in tasks for defining human performance in addition to skills, jobs, apps and infrastructure requirements. Among the standard, packaged, and component development routes, they realized that each route differs and are seperate in their approach to application developement. They chose to plan for the standard pathway as the baseline in the delivery phase driven by capability requirements and interaction.
The next step for this startup is to have a qualitative model of benefits and costs used to approve the investment and guide the work conducted during the next chunk of investment. I have no doubt that the fundraising will be successful.
The take away for the startup team: Recognize key startup activities as logical groups of tasks that occur over time and produces recognizable and intended results. Recognize applications as software intended to fulfill the specific needs of a business capability. Commit to human performance structure first, then build & test technology infrastructure and assets.
The startup team knows that written visions, missions, or build & test plans are not as important as knowing what you are supposed to do when you show up in the morning.
Enjoy the part 2 of this series here…
Find me here @MedTechMentor
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