Service Innovation in Healthcare

Topics: Health care, Medicine, Health care provider Pages: 58 (18617 words) Published: July 22, 2013
Service Innovation in Healthcare

Marketing 410: Service Innovation
Spring 2013
June 10, 2013

Cecily Quintana

Table of Contents
Defining Innovation in Healthcare6
Literature Review9
Innovative Solutions9
Quick Care9
Introducing Co-Creation into Healthcare Services10
Healthcare Delivery Systems13
The smart phone in medicine13
The Importance of Context-Awareness Computing14
Potential Models17
A Conceptual Model17
Experience Based Design18
Balanced Scorecard (BSC)19
Limitations to Innovation20
Importance of a Systemic Service Model22
Towards a Value Constellation Model24
Flowchart toward a Value Constellation27
Case Studies30
Alaska’s Underserved30
Michigan’s Underserved33
Hypothetical Application33


As a provider of essential services the healthcare industry has experienced unprecedented challenges in recent years, due to exponential increases in the demand for services and increased cost for care. Bureaucratic systems in healthcare reduce productivity and efficiency, driving down stakeholders’ perceived value of healthcare services. In order to balance cost containment with the quality of healthcare, service innovation models focused on sharing information and bundling resources must be must be developed, tested and ultimately implemented. This paper will outline what service innovation in healthcare means, and how innovation is vital to improve the way medical services will be offered in the future. A stakeholder analysis explores the needs, wants and expectations of both consumers and healthcare providers regarding their healthcare experiences. As well, regulatory, technology, infrastructure, and cost barriers will be explored in depth, as these barriers have become the major obstacles to the advancement of service innovation. A literature review identifies recent innovative solutions, while case studies, toolkits and models are used to assess the current state of healthcare service innovation. Based on these findings, a conceptual flow chart towards a value constellation is proposed, followed by three case studies examining the effectiveness of the proposed model. Finally a hypothetical medical delivery scenario is suggested as a potential service solution using the proposed flowchart.

Medical innovations continue to change the way consumers view the service of healing. From the ancient Egyptian’s “System of Medicine,” to the 20th century discovery of penicillin, these and other revolutions in healthcare paved the way for human civilizations to flourish. Throughout history, the role of the physician was one of unquestionable omnipotence, in which his or her diagnosis and prescription were taken with blind faith by their patients. Today, as technology and service innovation in healthcare advances, so too does the consumers more educated understanding of their medical service needs. The primary impetus to these changes is the advancement of technology and the overwhelming access to information. Internet services such as “WebMD”, “Wikipedia”, and other online channels have given consumers seeking medical services the ability to perform an informational self-diagnosis to possibly value and rank the importance of visiting a healthcare professional. Technological advances in sensors and smartphone capabilities have begun to pave the way for medical services to be performed in the home of the consumer rather than onsite in clinics and hospitals. Advances in communication technology have created opportunities for patients in one part of the world to consult with experts in specific fields of healthcare in another part of the world, and physicians and pharmacists can approve prescriptions electronically as a convenience for patients. The healthcare industry has experienced a proliferation of innovations aimed at enhancing life...

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“Children’s Health Insurance Program (CHIP),” (accessed April 29, 2013), [available at]
Ozdalga, Errol, Ark Ozdalga, and Neera Ahuja (2012), “The Smartphone in Medicine: A Review of Current and Potential Use Among Physicians and Students,” Journal of Medical Internet Research (JMIR), J Med Internet Res; 14(5): e128.
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Kaiser Family Foundation (2013), “The Henry J
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