disruptive healthcare innovation initiative

Professor Daniel SteenstraMr Simon Potter

Overview

Disruptive Healthcare Innovation Initiative

Personal Introduction

Royal Academy of Engineering’s first Visiting Professor in Medical Innovation

• Medicine• Design & Innovation Management in Automotive sector (Jaguar)• Consultancy in Innovation Management (Unilever, Alstom)• HealthTech at WMG / University of Warwick (170 projects; 800 jobs

and £50m in sales for SMEs)• Developing and commercialising healthcare product and services

(Innovations Factory based at Heartlands Hospital)

Outline

• Healthcare challenges• Need for innovation• Why disruptive innovation• The £1000 scanner• Cranfield Disruptive Healthcare Innovation initiative• Visionair

o Deliverableso Ongoing project opportunities

Healthcare challenges

1. Rapidly increasing need for healthcare2. Demand to provide better quality of care 3. No extra funding

Demand and Expenditure in the NHS

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

0

20

40

60

80

100

120

elective hospital admission (millions)Linear (elective hospital admission (millions))A&E attendencies (millions)Linear (A&E attendencies (millions))NHS Net Expenditure (£Billions)

The King's FundHouse of Commons - Health Committee

Need for healthcare and funding

time

Funding(£)

Need

Position?

Need for healthcare and funding

time

Funding(£)

Need

Position?

Increasing efficiency and productivity does not suffice

Need for innovation

• Innovation is critical to economic change• Responses to change in business environment:

o ‘adaptive response’ – Incremental Innovationo ‘creative response’ – Radical Innovation

Joseph Schumpeter ‘The Theory of Economic Development’

Disruptive Innovation- Theory

Performance

Timeleast demanding customer

most demanding customer

Sustaining innovation

Disruptive innovation

Clayton Christensen – The Innovator’s Dilemma

e.g. SonyIBM

Apple

Virgin

Disruptive Innovation- Enablers

1. Simplifying technology2. Business model innovation 3. Disruptive value network

Disruptive Innovation- Why

• Focussed on the US healthcare system • Lacks practical methods, tools and techniques

However disruptive innovation is most appropriate:• affordable products and services • shift diagnostics, therapy and care out of expensive

hospitals back into the community.

£1000 Scanner- History

• Diagnostics in primary care• Inspired by $100 laptop• Based on Open Source (OS) and PSS models

£1,000 primary care medical scanner

Scanning technologies

• X – Ray / CT • UV• Ultrasound• NMR / MRI• PET / Gamma ray

Dedicated MRI- Positioning

Dedicated MRI- Pathways

Dedicated MRI- Layout

Dedicated MRI- Infrastructure

• Integrating product and service design

Service design

PATIENT JOURNEYIN IMAGES

RELATED MEDICAL RESEARCH III

Availability contract Vs Pay-per-scan

Ultrasound image processing

Key Challenges

• Market pull instead of technology pusho Involving patients and other stakeholders

• Viable business model that provides return on investment for companies investing in manufactureo Identify sources of funding for product development

• Perceived threat to established OEMso Assess infringement of their IP rightso Get end-customer buy-in and supporto PR campaign

• Regulatory approval o Technical fileso Accredited supply chain

Disruptive Healthcare Innovation initiative- Vision

Disruptive Healthcare Innovation Initiative supports sustainable healthcare by leading the development and implementation of practical methods and demonstrators of disruptive healthcare innovations.

Disruptive Healthcare Innovation initiative- Elements

Disruptive Healthcare Innovation initiative- Demonstrator

Integrated system

Ultrasound scanner

OK

?

Aneurysm

Further investigation

Intervention

Product / Service System

Ultrasound scanner

OK

?

Aneurysm

Further investigation

Intervention

?

Product / Service System

??

?

?

??

Thank you