Scenario
Innovation is essential to the delivery of high-quality, professional, and adequate medical services. With the rise of opportunities for improving care due to more accurate medical equipment, as well as the devices that have opened new possibilities for addressing patients’ needs, the demand for innovative medical equipment has risen exponentially (Di Sivo & Balducci, 2019). Therefore, “HealthTech Solutions,” the target organization, which specializes in the production of virtual reality (VR) devices for medical purposes, as well as for patients’ use, will benefit from the performance measurement strategies that will allow it to thrive in the current medical device production market.
The company in question produces VR tools that allow healthcare experts to train for performing invasive treatments and surgeries that require high precision. VR and augmented reality (AR) tools created by “HealthTech Solutions” will also assist outpatients in developing personal care skills that will allow them to train the skills needed to maintain proper health levels at home. Therefore, hospitals, pharmacies, and retail companies such as Walmart are the target customers of “HealthTech Solutions.”
Summary
During invasive operations such as surgeries, communication is crucial, yet it may be hampered by a range of multiple obstacles, space being the most common one. For instance, the support of a coaching surgeon may be unavailable to the healthcare experts performing the invasive treatment, which is why real-time telecommunication is critical for the accurate implementation of a surgery. Moreover, the use of VR and AR tools as the methods of guiding patients through the process of learning to use specific health maintenance devices and educating them about the methods of keeping their health levels consistent is also worth mentioning as an important opportunity. Therefore, the innovations linked to VR and AR have gained a high degree of importance in the healthcare field. Implementing the innovations that have allowed creating VR and AR tools and equipment has been the groundbreaking change that has opened the doors to multiple opportunities for “HealthTech Solutions” in the global healthcare market. The company will target
Description
The potential benefits of the innovation in question are immense. The use of VR and AR as the means of enhancing communication in the healthcare environment and encouraging better patient education with the help of a more consistent contact between a patient and the healthcare staff will cause the level of threat that outpatients experience to reduce significantly. Moreover, the quality of invasive treatment and surgeries will rise due to the improved chances for online coaching for surgeons (Frajhof, Borges, Hoffmann, Lopes, & Haddad, 2018). The chance to receive concise and accurate instructions exactly during surgery will increase the chances for its success and the further recovery of a patient.
The rise in the accuracy of provided treatments will also reduce the duration of hospital stay among inpatients and the threat of readmissions to hospitals among outpatients. Consequently, the probability of vulnerable groups developing nosocomial issues will drop immediately after the integration of VR and AR into the target setting. Therefore, the effects that the focus on research and development of new VR and AR options will have a profoundly positive impact on the well-being of the global community.
While the focus on developing VR and AR for the healthcare context is believed to have a positive effect on the levels of the global well-being, as well as the company’s income, “HelathTech Solutions” is very likely to encounter multiple challenges on its way to integrating the specified innovation into its designated market and the environments of healthcare organizations. The financial issues are the most expected ones and the ones that are most difficult to manage. Since the research, development, and production of VR and AR technologies for hospitals will require enormous amounts of money, very few hospitals and other potential buyers may afford it. However, setting the prices low enough for average citizens and healthcare companies to buy the tools will cause “HealthTech Solutions” to suffer losses instead of accumulating revenues. Therefore, the company will need an elaborate approach for its financial strategy and the marketing plan with the help of which it will convince healthcare organizations to invest in purchasing its products.
Proposal of Measures
Several measures will be utilized to evaluate the extent of the project’s success.
Financial Measures
Return on investment
The Return on Investment (ROI) formula allows calculating the benefits that a company will receive upon selling its investments of interest. The expected ROI rate can be determined by dividing the difference between the current value of an investment and the cost of investment by the latter:
ROI = (Current Value of Investment – Cost of Investment) / Cost of Investment
(Opperman, Liebig, Bowling, Johnson, & Harper, 2016). Using the formula above, the organization’s financial manager will determine the profitability of the investments made by the organization, which will help to examine the potential outcomes of funding the development of VR and AR for healthcare purposes.
Growth in market share
Defining the extent to which the company’s market share will expand in the future is quite challenging due to the unpredictability of the market and the emergence of disruptive innovations. Nevertheless, the levels of market share growth can be defined by comparing the market share dynamics within the firm to those within the industry.
Profitability
To evaluate the possible profitability of the project, “HealthTech Solutions” will need an analysis of the potential benefits of the innovation and an assessment of the costs needed to produce it.
Non-Financial Measures
Employee loyalty and commitment. The extent of staff members’ engagement in the project and the relevant processes will be measured based on the information obtained from uniquely designed surveys and questionnaires. By using the strategies aimed at building loyalty and commitment in staff members, “HealthTech Solutions” will thrive in the healthcare technology market.
The breadth of employee participation
For “HealthTech Solutions” to thrive in the global economy, employees need to be proactive and willing to participate in the company’s progress in the chosen economic field. Therefore, the extent of employee participation will be measured by a diagnostic tool that includes criteria such as the extent of activity in decision-making, provision of innovative solutions to corporate issues, and achievement of set goals.
Employee retention
The extent of employee retention can be evaluated based on the comparison between the ratio of newly recruited employees and dismissed ones over a specific period.
Employee willingness to change
It is natural to expect that staff members will not welcome changes and non-incremental innovations with open arms since rapid changes will imply greater strain and the pressure to acquire new skills immediately. However, by focusing on the benefits of change for the staff members’ professional development, one will encourage employees to accept change. Using anonymous surveys will help to determine employees’ readiness and willingness to change.
Strategic repositioning
To assess the efficacy of the approach chosen by the “HealthTech Solutions” company for its strategic repositioning, one will need to examine the costs taken by the firm over a specific period and locate either a downward or an upward trajectory in the analyzed data (Hu, 2015). Thus, the effects of newly deployed innovations as a part of the strategic repositioning technique will be assessed accurately.
Competitive capabilities
The extent of the company’s competitiveness can be evaluated by comparing its performance to that one of rival organizations. For this purpose, quantitative characteristics such as profit margins, annual income, and expenses will have to be assessed.
Potential creation of further breakthroughs
As stressed above, “HelathTech Solutions” thrives on the creation of innovative solutions to healthcare issues and their production. Therefore, the company needs to gauge its potential for creating future innovations. For this purpose, the number of innovative ideas produced by the company per month will have to be calculated. In addition, the profitability of these ideas will be assessed to define the potential market performance and value of innovation.
A number of potential future innovations
The range of innovative solutions that the company may offer in the future can be assessed by calculating the “percentage of ideas found viable for commercialization” (Dziallas & Blind, 2019, p. 5). The described measurement tool will also help the company to evaluate its chances for success with the possible innovative solutions sensibly. As a result, the ideas that may result in the ultimate failure will be rejected at the stage of their conception, which will prevent the organization from investing in them and wasting its money.
References
Di Sivo, M., & Balducci, C. (2019). Quality in Healthcare: An Innovative Adaptable System for In-patient Rooms. International Journal of Architecture, Arts and Applications, 5(1), 10-17. Web.
Dziallas, M., & Blind, K. (2019). Innovation indicators throughout the innovation process: An extensive literature analysis. Technovation, 80, 3-29. Web.
Frajhof, L., Borges, J., Hoffmann, E., Lopes, J., & Haddad, R. (2018). Virtual reality, mixed reality, and augmented reality in surgical planning for video or robotically assisted thoracoscopic anatomic resections for treatment of lung cancer. The Journal of Visualized Surgery, 4(7), 1-6. Web.
Hu, F. Z. (2015). Industrial capitalisation and spatial transformation in Chinese cities: Strategic repositioning, state-owned enterprise capitalisation, and the reproduction of urban space in Beijing. Urban Studies, 52(15), 2799-2821. Web.
Opperman, C., Liebig, D., Bowling, J., Johnson, C. S., & Harper, M. (2016). Measuring return on investment for professional development activities: Implications for practice. Journal for Nurses in Professional Development, 32(4), 176-184. Web.