SALT WP1�Sustainable Business Models for Assisted Living Technologies and Services (ALTS)

SALT WP1�Sustainable Business Models for Assisted Living Technologies and Services

1. SALT WP1
Sustainable Business Models for Assisted Living Technologies
and Services
Festus Oderanti
The Business School, Newcastle University
The United Kingdom
&
ProfessorFeng Li
Cass Business School, City University, London.

2. WP1 Objective
•To identify and develop new business
models for sustainable market
development of assisted living
technologies and services through
empirical research

3. What is a Business Model?
•Business model defines how a business works
and the logic that creates its value
•Representations of a class of organisations in
the way they operate
•Ideal types that organisations should aspire to
become

4. Review Results
•Lack of a holistic approach to the general ALTS
market
•Most previous research and experiments on ALTS
focused on specific segment
•Few empirical evidence were gathered from the
health and social care systems from some countries
and tailored to their systems
•Most of these could not be applied to UK system
because of their difference in traditional health and
social care models to UK’s.

5. Review Results
•The UK has a unique health and social care system and its
own underlying business model
•Evidences from previous studies show that for ALTS
innovation to diffuse successfully into the market and
enter the mainstream, BMs that are sustainable need to
be put in place and these need to be:
–workable for the UK health and social care system
model
–Workable in multiple segments of ALTS market
–Possibly extendable to other countries

6. Results: Segmentsof ALTS Markets
Identified
–Telehealth Market
–Telecare Market
–Telemedicine/Teleconferencing
–Digital participation or Teleworking
Services

7. Results: Why the market fails to develop?
•Poor coordination
•Lack of user centred design
•Security and privacy concern
•Poor integration of policy & practice
•Small market size
•Cost effectiveness
•Policy and regulations
•Control and interference
•Market competition

8. Barricades between ALTS Providers & Consumers.
3
Figure: Illustration showing the barricades between digital Health innovation
providers and the consumers. Sustainable business modelsare expected to
be the bridges necessary for dismantling these barricades to ensure successful
commercialisation of digital health innovations.

9. Desirable Business Models (BM)
•BMs that are sustainable, scalable and workable for the
UK health & social care systems and possibly extendable
to other countries.
•ALTS services will become meaningful to the general
public when the BMs are sustainable.
•Such that they will provide mutual benefits for providers
as well as the users.

10. Building Blocks of a Business Model
•The building blocks of business models are:
–Value proposition
–Product innovation
–Infrastructure management
–Customer relations management
–Financial viability and sustainability
–Stakeholder credibility
–Revenue Streams
•Ultimately, the successful BMs will depend on the:
–Capacity to provide very quality products and services to the customers at
the least cost,
–High credibility to stakeholders
–Generate sustainable revenue streams to service providers

11. Sustainable BM for ALTS
•The proposed conceptual framework for ALTS
business models consists of two main parts:
–Business model framework as defined in
(Osterwalder and Pigneur 2009)
–Diffusion of Innovation theory (Rogers 1995).

12. Thank you!
12