Healthcare industry is fast evolving and so is the healthcare consumer. In this rapid changing environment, streamlining of business strategy to match the business environment is a crucial component for success for a hospital/ HCO
For success of a hospital/ HCO there is need for a match between the environment and the organization components.
The systems are first to get obsolete as these are based on SWOT analysis done in the past where opportunities identified are quite out of date for the present. Accordingly the objectives, strategy, and structure are also irrelevant for the present.
The case with most of the hospitals is that the:
- Ideal alignment between various components is not realized
- Various components, as mentioned above, change at different rates, resulting in lack of fit
- Most rapidly changing component is environment, affecting the opportunity available.
Then the problem is that HCOs strategy, structure & systems are dictating what opportunities it sees & pursues, rather than HCO studying its total opportunities & adapting all to work in new environment.
Blue Ocean consultants have its origin in Blue Ocean Strategy.
Blue Ocean Consultants is a first generation young, dynamic and vibrant organization, driven by the mission for
“creating uncontested market space for healthcare organizers and providers and making competition irrelevant”.
It’s long term Vision is
“Don’t compete, make competition irrelevant”.
BOC helps in making strategy and provides long lasting solutions for healthcare providers and organizers by creating uncontested market space for hospitals and their services.
BOC is just a phone call/ Email away.
Healthcare customers have wants and needs that they aspire to fulfill by visiting a hospital / clinic / doctor. Healthcare providers must address these needs by putting forth a VALUE PROPOSITION, a set of benefits they offer to customers to satisfy their needs. The intangible value proposition is made physical by an offering- a combination of products, services, information & experiences. Hospitals strive to build brand strength- a strong, favorable brand image. Offering is successful if it delivers value & satisfaction to the target buyer
Buyer chooses between different offerings on the basis of which it is perceived to deliver the most value. Value is a combination of Quality, Service & Price (QSP), called the customer value triad. Value increases with quality & service and decreases with price. More specifically, value is a ratio between what the customer get & what he gives. Customer gets benefits & assumes costs
Benefits can be Functional benefit/ Emotional benefits. Costs can be in terms of monetary cost, Time, Energy & Psychic costs. There is need for the healthcare organizer and providers to choose and design the right balanced combination.
The concept of ‘Lifetime Customer Value’ is now catching up in healthcare industry as well. This is the value of money a healthcare customer is expected to spend in his life for accessing healthcare. CLV concept is as under:
- The case of increasing the customer retention rate is captured in the concept of customer lifetime value (CLV).
- It describes the present value of the stream of future profits expected over the customer’s lifetime purchases of healthcare services.
- If the satisfied customer brings in other customers, this figure would be higher.
- HCOs must subtract from the expected revenues the expected costs of attracting, selling & servicing that customer.
Establishing and running a hospital is quite a capital intensive proposition. Time is now ripe to work on these lines by deep understanding and planning of healthcare services especially in the private domain.
BOC provides solutions for such realignment by helping you in strategy.