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Harvard Case - PharmAccess and the M-TIBA Platform: Leveraging Digital Technology in the Developing World

"PharmAccess and the M-TIBA Platform: Leveraging Digital Technology in the Developing World" Harvard business case study is written by Kevin A Schulman, Sashidaran Moodley, Anant Vasudevan. It deals with the challenges in the field of Entrepreneurship. The case study is 32 page(s) long and it was first published on : Mar 7, 2017

At Fern Fort University, we recommend that PharmAccess continue its strategic focus on leveraging digital technology to expand the reach and impact of the M-TIBA platform. This includes prioritizing growth strategies that focus on market segmentation, product development, and strategic partnerships to ensure the platform?s scalability and sustainability.

2. Background

PharmAccess is a Dutch non-profit organization dedicated to improving healthcare access in developing countries. The organization developed the M-TIBA platform, a mobile-based health insurance solution that allows individuals to pay for healthcare services through their mobile phones. The case study focuses on PharmAccess?s efforts to expand the M-TIBA platform and its challenges in navigating the complex landscape of the developing world.

The main protagonists of the case study are:

  • Dr. Koos Dekker, PharmAccess?s founder and CEO, who has a vision to use technology to improve healthcare access in developing countries.
  • The M-TIBA team, which is responsible for developing and implementing the M-TIBA platform.
  • The various stakeholders involved in the M-TIBA ecosystem, including insurance companies, healthcare providers, and mobile network operators.

3. Analysis of the Case Study

Strategic Analysis:

  • Disruptive Innovation: M-TIBA represents a disruptive innovation in the healthcare sector of developing countries, offering a more accessible and affordable way to access healthcare services.
  • Business Model Innovation: The platform utilizes a business model innovation by leveraging technology to bridge the gap between healthcare providers and patients, particularly those in underserved communities.
  • Market Segmentation: PharmAccess has successfully segmented its target market by focusing on specific demographics and geographical regions, tailoring the M-TIBA platform to meet their unique needs.
  • Strategic Partnerships: PharmAccess has formed strategic partnerships with key stakeholders, including insurance companies, healthcare providers, and mobile network operators, which are crucial for the platform?s success.

Financial Analysis:

  • Entrepreneurial Financing: PharmAccess has successfully secured funding through various sources, including venture capital, grants, and social impact investments, demonstrating its ability to attract investors and secure financial resources.
  • Scalability: The platform?s potential for scalability is significant, offering a cost-effective solution for expanding healthcare access to a large population.
  • Sustainability: PharmAccess needs to develop a sustainable financial model that ensures the long-term viability of the M-TIBA platform.

Marketing Analysis:

  • Marketing Strategy: PharmAccess has adopted a multi-pronged marketing strategy, utilizing a combination of digital marketing, community outreach, and partnerships to raise awareness about the M-TIBA platform.
  • Branding: PharmAccess has established a strong brand identity, associating the M-TIBA platform with innovation, accessibility, and social impact.
  • Customer Discovery: PharmAccess has conducted extensive customer discovery to understand the needs and preferences of its target market, which has been crucial in tailoring the platform to their specific requirements.

Operational Analysis:

  • Technology and Analytics: The M-TIBA platform relies heavily on technology and analytics to manage data, track transactions, and optimize operations.
  • Software Development and Engineering: PharmAccess has a strong team of software developers and engineers who are constantly working to improve the platform?s functionality and user experience.
  • Supply Chain Management: PharmAccess has established a robust supply chain management system to ensure the efficient delivery of healthcare services to patients.

4. Recommendations

  1. Expand Market Reach: PharmAccess should prioritize expanding the M-TIBA platform?s reach to new markets, focusing on regions with high demand for affordable healthcare solutions. This can be achieved through strategic partnerships with local healthcare providers, insurance companies, and mobile network operators.
  2. Product Development: PharmAccess should continue to invest in product development to enhance the M-TIBA platform?s functionality and user experience. This includes adding new features, improving security, and integrating with other healthcare services.
  3. Strategic Partnerships: PharmAccess should actively seek out new strategic partnerships with organizations that can contribute to the platform?s growth and sustainability. This includes partnerships with international development organizations, social impact investors, and technology companies.
  4. Financial Sustainability: PharmAccess should develop a sustainable financial model that ensures the long-term viability of the M-TIBA platform. This can be achieved through a combination of subscription fees, value-added services, and partnerships with insurance companies.
  5. Organizational Structure and Design: PharmAccess should consider restructuring its organization to better support the platform?s growth and expansion. This may involve creating new departments, hiring additional staff, and establishing clear lines of responsibility.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core Competencies and Consistency with Mission: Expanding market reach, product development, and strategic partnerships are all aligned with PharmAccess?s core competencies and mission to improve healthcare access in developing countries.
  2. External Customers and Internal Clients: These recommendations will benefit external customers by providing them with access to affordable healthcare services and internal clients by providing them with the resources and support they need to succeed.
  3. Competitors: PharmAccess needs to stay ahead of its competitors by continuously innovating and expanding its reach.
  4. Attractiveness ? Quantitative Measures: The recommendations are expected to generate positive returns on investment, increase market share, and improve operational efficiency.

6. Conclusion

PharmAccess has a unique opportunity to leverage digital technology to transform healthcare access in developing countries. By focusing on growth strategies that prioritize market expansion, product development, and strategic partnerships, the M-TIBA platform can achieve significant social impact and become a sustainable business model.

7. Discussion

Alternatives not Selected:

  • Going Public: While an IPO could provide significant funding for PharmAccess, it may not be the most appropriate option at this stage, given the organization?s non-profit status and its focus on social impact.
  • Mergers and Acquisitions: PharmAccess could consider merging with or acquiring other organizations in the healthcare sector, but this would require careful consideration of cultural fit, operational integration, and potential regulatory hurdles.

Risks and Key Assumptions:

  • Regulatory Environment: The regulatory environment in developing countries can be complex and unpredictable, which could pose a challenge to the M-TIBA platform?s expansion.
  • Technology Adoption: The success of the M-TIBA platform depends on the widespread adoption of mobile technology in developing countries.
  • Competition: PharmAccess faces competition from other organizations offering similar healthcare solutions, which could impact its market share and profitability.

8. Next Steps

  • Develop a detailed business plan: PharmAccess should develop a comprehensive business plan that outlines its growth strategy, financial projections, and key milestones.
  • Secure additional funding: PharmAccess should actively seek out additional funding to support its expansion plans.
  • Build a strong team: PharmAccess should invest in building a strong team of experienced professionals with expertise in technology, healthcare, and international development.
  • Monitor progress and adapt: PharmAccess should continuously monitor the progress of its expansion efforts and adapt its strategy as needed to ensure its success.

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Case Description

PharmAccess is an Amsterdam based NGO working to support the development of the private health care market in Africa. This work is critical as over 50% of care is delivered through the private sector, but well-intentioned efforts to address global health through the public sector have the unintended consequence of crowding-out capital formation in the private sector. PharmaAccess is working to crowd-in funding instead through the development of a three-pronged effort in Kenya. They are working to address supply through efforts to improve the quality of health care facilities through education and through a micro-lending program. At the same time, they are working to address demand through the development of the M-TIBA mobile health wallet. The critical question for this case is whether these efforts, in essence the development of a novel platform simultaneously addressing supply and demand, will be enough to change the dynamics of the private health care market. The case provides a background on private health care in Africa and in Kenya.

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