Business Models & Tech

This somewhat dated (2015) but still highly relevant essay by Alex Danco offers an insightful overview of the state of software in healthcare. If you care about this sort of thing, I highly recommend reading it.

The most interesting aspect of the piece for me is the reminder that when tech impacts or “disrupts” an industry, the tech isn’t necessarily the interesting part. The interesting part is the business models that change or emerge as a result of the tech.

Here are a few examples of what I mean:

Spotify leveraged technology to change the business model of music from $10 per album to 40 million songs for $10 a month.

AirBnB leveraged technology to change the hospitality business model, listing 6 million rooms and homes while owning zero properties. 

Uber leveraged technology to change the taxi business model, doing 4 million rides per day, while owning zero vehicles or taxi medallions.

As we consider how much software has impacted (or not impacted) healthcare, we shouldn’t be looking for the flashy, healthcare-specific, transformational technologies. We should consider the new and emerging business models that are enabled or enhanced by technologies. Those aren’t hard to find.