Madaket Health is using a value chain entrepreneurial strategy to enter the market. Value chain strategy is where a business integrates an idea into an established chain to enhance market power and allow it to build and retain bargaining power. Madaket is a product of an idea to solve an existing problem in the provider enrolment system for payment. Jim developed a prototype of SaaS to provide a platform that connects payers and healthcare providers. The primary role of Madaket is to add value to the existing payment system. It intends to eliminate the manual enrolment of providers to different payers in the market. Therefore, Madaket Health adds value to the existing SaaS platform to help with the provider enrolment system in the healthcare industry.
Some of the key elements in the value chain strategy are collaboration, integration of an idea, and pursuant of value. The strategy involves creating value through cooperation with others in the market. For example, after building a successful prototype of SaaS, Madaket sought a collaborative partnership with a Revenue Cycle Management company or payer to gain feedback, maximize the platform, and show value. The other element is applying a new idea into an established value chain to enhance the market power. Madaket is established on a new idea focused on improving the value of an existing healthcare chain. Another element is the need to provide value to the target client. An organization using this strategy should show the ability to collaborate, integrate and focus on value addition.
The entrepreneurs using value chain strategy often seek to capitalize on innovation and recognize a potential technological trajectory that established enterprises have yet to exploit. As a result, they emphasize new technologies having the ability to exceed current systems in terms of performance and consumer value creation. However, the value chain entrepreneur must incorporate technology and innovation into the current value chain’s operations and structure in order to maintain a successful partnership with established companies. This creates a tension between the freedom to employ new technology and the obligation to integrate it into current systems. As a result, the firm should be able to handle the tension based on its operation.
The other key elements are developing and sustaining a unique entrepreneurial identity. Entrepreneurs can organize their identities around a certain technology with control-oriented strategies, whereas disruptive entrepreneurs can take advantage of an uncontrolled entrepreneurial spirit with disruptive tactics. Madaket must build a distinct identity as a result of this in order to be successful. A company’s identity is usually focused on developing and expanding its primary skill. On the other hand, value chain start-ups establish their identities by providing an irreplaceable service to the value chain through their linked personnel and the distinct and capabilities they create. Therefore, the performance of Madaket depends on the identity it creates in the market.
Roll-Out of Their Product in Pioneer
Madaket should ensure a successful roll-out of their solution with pioneers because it will create momentum for the process. A successful trial process is important since it provides the drive to continue. At this moment, momentum is required for Madaket to overcome the challenges it might experience in the market. For example, if the products work effectively for Pioneer, both parties will generate excitement. Pioneer will be interested in using the system to manage its payment process. On the other hand, Jim and other partners will be interested in taking the product to other potential clients in the market. Therefore, the roll-out will help build momentum for promoting the product.
The roll-out will enable Madaket to understand the strengths and weaknesses of the product. This is an important process in developing quality and reliable products. Furthermore, it presents an opportunity for Madaket to conduct an actual test of its prototype SaaS provider enrolment solution in the market and determine whether it works effectively or not. In addition, the roll-out will enable Pioneer to give their feedback on the usability of the product. For example, they can inform Madaket whether the product meets their needs or needs for improvement. Based on this, the feedback from the roll-out will help improve the SaaS system to enhance productivity.
An Alternative Strategic Orientation
Madaket can choose to build on Kingfish due to its potential to succeed in the market. Compared to other groups such as Classic with organizational resistance, Kingfish provides an opportunity for Madaket to access a large number of providers. The other benefit that comes with this group is the ability to scale up quickly. Kingfish serves a cluster of providers distributed in various hospitals in the market. As a result, with a high number of providers, Madaket can create a competitive advantage over its competitors. Thus, the strategy will also allow Madaket to market its products to many clients effectively.
Apart from Kingfish and RCM, Madaket can also major in serving Classic due to their interest in SaaS solutions. The leaders of Classic have already shown interest in the product. They believe that the product will help them enhance the efficiency of their operations. With the leadership supporting the product, it will be easy for Classic to partner with Madaket. However, in this case, Madaket needs to handle organizational resistance to provide its services. At this time, Jim needs to focus on proving and confirming that its product is working effectively. Therefore, Madaket serving Classic will help build its portfolio in the market.
Strategic Orientation to Pursue
Madaket should focus on a successful roll-out program with one customer because it will enable it to focus and achieve its goals. By focusing on one group, Jim and his partners will find ample time to ensure that its product works effectively. For example, when they major in Classic, they will be able to identify and address the challenges that might affect the effective integration of the product. In addition, a single roll-out program enables Madaket to achieve the intended task quickly and with fewer errors. It will be easy for the business to identify the faults in the enrolment. However, this becomes challenging when Madaket engages in multiple roll-out programs. Thus, it is beneficial for the business to engage in a single roll-out program.
Madaket should stay in its current course of rolling out the product to Pioneer. The strategy gives the business an opportunity to attract new providers in the market. The success of Madaket depends on the number of providers using its product. Pioneer has skilled IT staff, which enables Madaket to increase the value of its SaaS product through the integration of the market process. During the program, the interaction of the staff promotes knowledge sharing, which is integral in achieving the intended value. In addition, because Pioneer is interested in improving its efficiency, focusing on this task gives them the ability to achieve the expected quality.