study commissioned by dg connect home sweet home midterm workshop barcelona, 17 january 2013...

Study commissioned by DG CONNECT 1

www.technolage.org

Home Sweet Home Midterm Workshop

Barcelona, 17 January 2013

TechnolAGE: Study on business and financing models related to ICT for ageing well

Sustainable business cases for ICT based services for elderly care


Contents

(1) The TechnolAGE Study: Introduction and overview

(2) Focus on two sustainable business cases

(3) Conclusions and lessons learned


(1) The TechnolAGE Study

Introduction and overview


• Project commissioned by DG CONNECT, conducted by Ernst & Young and the Danish Technological Institute

• The overall aim is to show that it is worth investing funds on ICT for ageing well and that it is possible to generate a return on investment

• Policy and strategic context:

• Need for a change in mindset behind financing care systems for older people – it is worthwhile investing now to save in the longer term

• Shift from cost to investment mindset (benefits for older people, market, society)

The TechnolAGE StudyStudy on business and financing models related to ICT for ageing well

Study commissioned by DG CONNECT

Objectives and scope of the Study

5

1

2

3

1

2

3

20 case studies of sustainable business & financing models for existing innovative ICT solutions

for ageing well

5 case studies (selected from the 20) explored in greater detail with respect to their

replicability

Stakeholder engagement through an interactive project

website & events (e.g. conferences, workshops, etc)

5

What is already out there?

What can be learned from his?

How can this be shared?


Methodology for case selection

ICT solutions for ageing

well

20 cases of sustainable business & financing models for existing innovative

ICT solutions for ageing well

5 cases for the replicability and

scalability analysis

TAXONOMY DIMENSIONSDimension A: Geographic region

Anglo-Saxon

Scandi-navian

Conti-nental

Mediter-ranean

Eastern European

Dimension B: Actors

StateCommercialCivil societyInsurersPeople

Dimension C:Actor roles

FunderProviderCarerOlder person

Dimension D:Domains

Prevention Care & cureActive ageing

Dimension E: Scale

Local / regionalNationalCross-border/Int’l

Dimension F: Type

Type of intervention

Actor roles (C)

Actors (B)

Fund

er

Prov

ider

Care

r

Old

erpe

rson

StateCommercialCivil societyInsurersPeople

The case selection taxonomy was used to ensure a balanced and pertinent selection of cases across the main types and issues relevant to the study.

• Impact evidence• Scaling/replicability

evidence• Business model

innovation• Availability of

information• Geography• Domain• Scale


The selected 20 cases

North Yorkshire County Council (NYCC) telecare

and NHS North Yorkshire & York (NHS NYY) telehealth

doc@HOME® (Docobo Ltd)

Netwell-CASALA Centre and the Great Northern

Haven project

The ESOPPE Programme

SOPHIA

VieDome (Mextal B.V.)

Wit-Gele Kruis: Electronic Nursing Record (ENR)

Distress care AREÍON (TeleCare) Emergency Care

Digital Hungary, mHealth

Griffin Medical Alarm

Nuvola IT Home Doctor

Telecare and remote monitoring for older people in Veneto Region (TESAN)

Eldy

Patient briefcase (Medisat)

eCare (NEAT)

Phoniro

Vivago

Abilia: Assistive technologies for patients with dementia

Scottish Telecare Programme Board (STPB)

SIMAP (Vodafone and Red Cross)

KEY:

Anglo-saxon (4)

Scandinavian (4)

Mediterranean (5)Eastern European (3)

Continental (4)


The selected 5 cases

8

SOPHIA

VieDome (Mextal B.V.)

Patient briefcase (Medisat)

SIMAP (Vodafone

and Red Cross)

The Scottish Telecare Programme Board and the

2006-2011 Telecare Development Programme

(STPB)


Key partnerships Key activities Value propositions

Customer relationships

Customer segments

Key resources Channels

Cost structure Revenue streams

Methodology for case analysis

• Each of the 20 cases has been analyzed based on the 9 elements of the Business Model Canvas (Osterwalder, Pigneur et al, 2010*)

• Additional features were also considered, in order to account for framework conditions

The Business Model CanvasThe Business Model Canvas

* See http://www.businessmodelgeneration.com/

http://www.businessmodelgeneration.com/


(2) Focus on two sustainable business cases

SOPHIA and the Patient Briefcase


The SOPHIA case (Germany)

(1) Housing companies as the distribution channel

(3) Customer service centre and professionally managed network of local service providers

(non profit)

(4) The role of the SOPHIA volunteer

network in providing an end

user-centric service

€ € €

JosephStiftung

StadtbauBamberg

WohnbauCoburg

€

(2) Regional franchise model


The SOPHIA business model



Customer segments




Financial strategy and success factors of SOPHIA• Sophisticated franchise (fixed-fee) and financial

incentives to housing organizations

• Strategy as price leader, with 90% refund eligibility

• Non-profit partner reinvests any profit

• Revenue growth keeping pace with customer growth with managed costs

• Breakeven achieved in 2010, after 5 years (for housing companies) – key is the growth in customer base

€ 0

€ 100.000

€ 200.000

€ 300.000

€ 400.000

€ 500.000

€ 600.000

2005 2006 2007 2008 2009 2010 2011

TOTAL revenues

TOTAL costs

Total costsTotal revenues

Breakeven


The Patient Briefcase case (Denmark)


The Patient Briefcase business model



Customer segments




Financial strategy and success factors of the Patient Briefcase

•Public investment through national and European research funds

•Early establishment of private company to convert public/own investment into viable enterprise

•Recent breakeven and 2012 profits after 5 years


(3) Conclusions and lessons learned

SOPHIA and the Patient Briefcase


Some lessons on and barriers to sustainability from the two cases

SOPHIASOPHIA

The Patient Briefcase

The Patient Briefcase• Breakeven thanks to favourable

revenue and cost developments• Clear benefits for both public and

private partners through franchising approach adding value to each actor

• Strong staff commitment, also from volunteers

• Low average income of older people (insufficient to support the market alone)

• Public financial aid relies on demonstrating high need levels

• Radically innovative product generating large cost savings and clear user benefits

• Flexibility of product in terms of contexts and conditions

• High initial reliance on public R&D funding

• Price setting and contractual difficulties with public customers

LESS

ON

SBA

RRIE

RS


Some lessons on and barriers to sustainability from the twenty cases

• Policy context• Producing/accessing good impact evidence• Smart procurement• Standards, guidelines, interoperability• Medium / long-term view• Smart use of funding

• Lack of standards• Silo benefits/investments• Lack of understanding• Lack of skills / infrastructure

LESS

ON

SBA

RRIE

RS

FOR PUBLIC SECTOR

• New partnership / business models

• Ecosystem approach• Modular solutions• Consumer-led models• Impact evidence

• Lack of buy-in from senior management

• Uncertainty of funding• Channels and pricing

FOR PRIVATE SECTOR


Stay tuned...

Visit us: www.technolage.orgFollow us on Twitter: @TechnolAGEContact us: [email protected]

Final conference: Brussels, 14 February 2013


Thank you!

For any comments or questions, please do get in touch!

Mariafrancesca MieleSenior Consultant, Ernst & [email protected]

mailto:[email protected]

study commissioned by dg connect home sweet home midterm workshop barcelona, 17 january 2013...

Documents

technolage study study

technolage study introduction

sustainable business

overview slide

elderly care slide

home doctor telecare

pertinent selection

case analysis