Harvard Case - Hewlett Packard eHealth Center: Healthcare Access Through Technology Convergence
"Hewlett Packard eHealth Center: Healthcare Access Through Technology Convergence" Harvard business case study is written by Kajari Mukherjee, Michael Rouse, Bhuvaneashwar Subramanian. It deals with the challenges in the field of General Management. The case study is 17 page(s) long and it was first published on : Jul 5, 2017
At Fern Fort University, we recommend Hewlett Packard (HP) to implement a comprehensive strategy that leverages technology convergence to expand its eHealth Center's reach and impact, particularly in emerging markets. This strategy will focus on building sustainable partnerships, adapting technology to local needs, and fostering a culture of innovation and social responsibility. By doing so, HP can solidify its position as a leader in digital healthcare solutions, driving positive social change while achieving sustainable business growth.
2. Background
This case study centers around HP's eHealth Center, a pioneering initiative aimed at improving healthcare access in underserved communities through technology. HP's vision is to utilize technology to bridge the healthcare gap, particularly in developing countries. The eHealth Center has already made significant strides in delivering telemedicine services, providing medical training, and facilitating data collection for disease surveillance. However, the case study highlights the challenges HP faces in scaling its operations and achieving long-term sustainability.
The main protagonists are:
- HP: A multinational technology corporation seeking to leverage its expertise and resources to address global health challenges.
- Developing Countries: The primary beneficiaries of the eHealth Center, facing significant healthcare access barriers.
- Local Partners: Crucial stakeholders who play a vital role in implementing and sustaining eHealth initiatives.
3. Analysis of the Case Study
This case study can be analyzed using a framework that combines Porter's Five Forces with SWOT Analysis to understand HP's competitive landscape and internal strengths and weaknesses.
Porter's Five Forces:
- Threat of New Entrants: The eHealth sector is rapidly evolving, with new players entering the market. However, HP's established brand reputation, technological expertise, and global reach offer a significant competitive advantage.
- Bargaining Power of Buyers: Developing countries often have limited resources and bargaining power, making it crucial for HP to offer affordable and accessible solutions.
- Bargaining Power of Suppliers: HP relies on various technology providers and local partners. Maintaining strong relationships and ensuring a diverse supply chain is essential.
- Threat of Substitutes: Alternative healthcare delivery models, such as traditional healthcare systems and mobile health applications, pose a potential threat. HP needs to continuously innovate and adapt to remain competitive.
- Competitive Rivalry: The eHealth sector is becoming increasingly competitive, with companies like Cisco and IBM vying for market share. HP needs to differentiate itself through its focus on social impact and customized solutions.
SWOT Analysis:
Strengths:
- Technological Expertise: HP's deep understanding of technology and its global infrastructure provide a strong foundation for developing and deploying eHealth solutions.
- Brand Reputation: HP enjoys a strong brand reputation for innovation and reliability, facilitating trust and partnership building.
- Global Reach: HP's extensive network and presence in emerging markets enable it to reach underserved communities effectively.
- Social Impact Focus: HP's commitment to social responsibility resonates with stakeholders and strengthens its brand image.
Weaknesses:
- Scaling Challenges: Expanding the eHealth Center's reach and impact requires significant investment and logistical coordination.
- Lack of Local Expertise: HP may struggle to fully understand and address the unique healthcare needs of diverse communities.
- Sustainability Concerns: Long-term funding and operational sustainability remain critical challenges for the eHealth Center.
Opportunities:
- Emerging Markets Growth: The growing demand for healthcare services in developing countries presents significant market potential.
- Technological Advancements: Emerging technologies like AI and machine learning offer new opportunities to enhance eHealth solutions.
- Partnerships and Collaborations: Strategic partnerships with governments, NGOs, and local healthcare providers can accelerate eHealth adoption.
Threats:
- Regulatory Uncertainty: Navigating diverse healthcare regulations and policies across different countries can be challenging.
- Data Security Concerns: Protecting patient data and ensuring privacy is paramount, especially in developing countries.
- Financial Sustainability: Securing long-term funding and ensuring financial viability is crucial for the eHealth Center's success.
4. Recommendations
HP should adopt a multi-pronged strategy to expand its eHealth Center's impact and achieve sustainable growth:
1. Partnering for Impact:
- Strategic Alliances: Establish strategic partnerships with local governments, NGOs, and healthcare providers in target countries. These partnerships will provide access to local knowledge, infrastructure, and resources.
- Joint Ventures: Consider joint ventures with local companies to leverage their expertise and market access, fostering a sense of ownership and shared responsibility.
- Community Engagement: Actively engage with local communities to understand their specific needs and ensure solutions are culturally appropriate and sustainable.
2. Adapting Technology for Local Needs:
- Localized Solutions: Develop and adapt eHealth solutions to address the unique healthcare challenges and infrastructure limitations of each target country.
- Language and Cultural Considerations: Ensure that eHealth platforms and materials are translated and culturally sensitive to facilitate user adoption.
- Training and Capacity Building: Invest in training programs for local healthcare professionals to effectively utilize eHealth technologies and maintain equipment.
3. Fostering Innovation and Sustainability:
- Open Innovation: Embrace an open innovation model to encourage collaboration with researchers, developers, and entrepreneurs in developing innovative eHealth solutions.
- Data-Driven Decision Making: Utilize data analytics to monitor program effectiveness, identify areas for improvement, and inform strategic decisions.
- Sustainable Business Model: Explore sustainable business models that combine social impact with financial viability, such as tiered pricing structures, partnerships with insurance providers, or social impact investments.
4. Building a Culture of Social Responsibility:
- Corporate Social Responsibility (CSR): Integrate social responsibility into HP's core business practices and values, demonstrating a commitment to ethical and sustainable operations.
- Employee Engagement: Encourage employee participation in eHealth initiatives, fostering a sense of purpose and ownership.
- Transparency and Accountability: Maintain transparency in program implementation and outcomes, fostering trust and accountability with stakeholders.
5. Basis of Recommendations
These recommendations align with HP's core competencies in technology and innovation, while also addressing the specific needs and challenges of emerging markets. They prioritize building sustainable partnerships, adapting technology to local contexts, and fostering a culture of social responsibility.
The recommendations are based on the following assumptions:
- Growing Demand for Healthcare: The demand for healthcare services in developing countries will continue to increase.
- Technological Advancements: Continued advancements in technology will provide new opportunities to improve eHealth solutions.
- Government Support: Governments in developing countries will increasingly recognize the importance of eHealth initiatives and provide supportive policies.
- Partner Commitment: Partners will be committed to collaborating with HP to achieve shared goals and ensure program sustainability.
6. Conclusion
By implementing these recommendations, HP can transform its eHealth Center into a sustainable and impactful global initiative. This will not only improve healthcare access in underserved communities but also solidify HP's position as a leader in digital healthcare solutions, driving positive social change and achieving sustainable business growth.
7. Discussion
Alternative approaches include:
- Focusing solely on technology development: This approach risks overlooking the critical need for local adaptation and partnership building.
- Adopting a purely philanthropic model: This approach may not be financially sustainable in the long term.
Key risks associated with the recommendations include:
- Partner Commitment: Maintaining partner engagement and ensuring long-term commitment is crucial.
- Regulatory Challenges: Navigating diverse healthcare regulations and policies can be complex.
- Data Security: Protecting patient data and ensuring privacy is paramount.
8. Next Steps
HP should implement the following steps to operationalize the recommended strategy:
- Phase 1 (Year 1): Establish strategic partnerships, conduct market research to identify local needs, and develop pilot eHealth solutions.
- Phase 2 (Year 2-3): Scale up pilot programs, refine eHealth solutions based on data analysis, and build capacity through training programs.
- Phase 3 (Year 4 onwards): Expand eHealth Center operations to new countries, explore sustainable business models, and continuously innovate and adapt to evolving needs.
By following these steps, HP can effectively leverage technology convergence to improve healthcare access, empower communities, and achieve sustainable business growth.
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Case Description
In 2012, eHealth Centers (eHCs) digitally delivered affordable medical care and diagnostic support for patients in villages and remote areas of India where none was otherwise available. The solution was initially conceived and developed as a mandate from Hewlett Packard India's corporate social responsibility team under the leadership of the chief technology officer. The eHCs design incorporated a self-contained diagnostic centre in a container, operated by a staff of paramedics. Doctors located in urban health hubs provided consulting care through video conferencing, and patients could experience the feeling of being in a doctor's office in real-time. These eHCs slowly turned out to be a business opportunity for Hewlett Packard India. By early 2016, there were 55 centres in operation. The challenge before the company was to scale up exponentially.
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