McKinsey’s special report, What happens next? Five Crucibles of Innovation That Will Shape The Coming Decade, points out how the increasing population, desire for goods and services, and technological innovations are changing the way organizations and businesses conduct themselves. The United States healthcare industry is a great example of how an industry must adapt to legislative measures and the increasing demand for health care for chronic illnesses.
President Obama’s Affordable Care Act requires all US residents to have healthcare insurance or incur a monetary penalty. The act increases the amount of people seeking healthcare providers resulting in a shortage of medical providers. The healthcare industry, overcome with the amount of people looking for healthcare, adopted the use of Internet connected medical devices to address the provider shortfalls. These devices are part of the Internet of Things movement, in which network enabled devices have sensors built-in to them communicate to a centralized server for medical providers to access. The Internet of Things (IoT), a technological innovation which allows providers to address the increased patient population by remotely monitoring and administering care through Internet enabled devices.
Medical technology companies are adapting to the demand for IoT medical devices. McKinsey’s five crucibles are applicable to these medical companies if they want to remain competitive and desirable in the healthcare industry. The companies must be able to harvest great talent and innovators to quickly design and invent new technologies. Being the first on the market with the newest device can give medical companies the competitive advantage. When we think of medical companies, we often think of Western companies but the global grid of the Internet allows global medical companies to enter the market and reach consumers from all over the world. Companies may also use the Internet to crowd source ideas and adopt recommendations from users, able to accommodate to the consumers’ desires for goods and services. Device companies may also use analytic software to predict user preferences for creation of better products or introduce new products that the consumer might not have recognized on their own.
The healthcare industry, ranging from providers, patients, and technology companies, will have to adjust to the government legislation. Through the use of new technologies within the Internet of Things, all parties will have a better experience in making these changes. Medical technology companies should strategically plan and take McKinsey’s five crucibles into consideration when adapting to the changing healthcare environment.