Digital Transformation In Healthcare: Case Study Of Privia Health Care

Discussion

Digitization of the business has become a popular practice. Privia Health Care is a startup company that provides health care services. The company started its journey on 2009.The company was started by a group of three friends. Initially Privia Health Care was providing services to the well beings of newborn and their mother, but after 2 years the company started to expand its business. Expansion of business enables the organization to provide variety of services related to the healthcare. Presently Privia Health Care provides services in different parts of the country. The types of service includes providing in-house attendant or nurse, doctor visit, physiotherapy, care of mother and new born baby, and lab tests for diagnosis .The main objective of this health care organization is to provide and bring the world class health care service to the house of the patient. This initiative of the organization is getting a good response as many of the patients are unable to go to the hospital for checkups and many of them need customized way of health care (Lynch et al. 2014). The company has captured this need of the health care segment which has become a positive influence for the growth of the company. Privia Health Care is expanding its business for that it needs to expand its network in the health care industry and recruit more employees. In order to do this efficiently the company is planning to introduce digital advancement in the infrastructure of the organization.

Privia Health Care is successfully running its business. Currently the company is thinking to expand its business by opening new branches and adding more services. In order to do this the company needs more publicity and expansion of their network in the health care segment(Westerman, and Bonnet 2015). This will help to reach them to more consumers and the strong network will help them to tie up with renowned doctors and hospitals. In this situation Privia Health Care is planning to transfer their business to a digital interface. The analysis of the current position of the company can be done through SWOT analysis.

Unique Business Idea: The business idea of Privia Health Care is itself a unique idea. Providing health care services at the patient’s home is unusual. However this business idea works for the Privia Health Care. Many of the patients are not able to go to the hospitals or clinics for the checkups or visiting doctors. These patients are the major consumer of the services provided by the Privia Health Care.

Strengths

There are not so many weaknesses that can be attributed to the company. However with the expansion of the demand of service and the business the company has not expanded in that way (Shivakumar 2018). The company has not required number of branches in different parts of the country. The price of some of its services are bit costly which may work as a barrier for the common people to avail the services.

New Customers: Privia Health Care has good review for their services. The good will of the company indirectly helps to gain the publicity (Tresp et al.2016). The positive publicity of the Privia Health Care helps to gain the company a bunch of new potential customers. The improved service and the customer review help the company to identify the required modification of the services if needed.

Innovation of new technologies: The advancement of the technology enables the use of advance digital technique in the field of health care services (Dimitrov 2016). Privia Health Care is adopting the latest technology in order to provide a better service. It helps to co-ordinate the company with the customers more effectively and also it helps to provide more accurate lab reports.

Change in need of consumers (Non-Digital Factor): Presenting health care solutions at the hose of the patient is appreciated and accepted by largely by the people. The needs of consumers are changing day by day. Presently people need more customized services and they are also concerned about their security (Piccinini,  Gregory and Kolbe 2015). Patients are asking for healthcare services along with personal care also. The challenge, Privia Health Care facing is the merging the professionalism and personal caring giving. The service givers are needed to be extremely professional in their work along with that they are needed to handle the patient with care so that the patient can feel homely.

Presence of New Competitors (Non-Digital Factors):  Presently there are some companies present in the market and they are following the business idea of the Privia Health Care. The presence of other health care service providing companies is making the market competitive for the Privia Health Care. The other companies are making attractive offers to the customers by lowering down the prices of services and providing other services that are not given by the Privia Health Care. In this case company needs to analyze the current business position in the market and after that consumer’s needs are needed to be understood. This can be done by conducting a survey among the consumers. According to that the required improvement can be made.

Weaknesses

Increasing cost of new technology (Digital factor): Use of advanced technology and its implementation is expensive for the company, but it is necessary in order to improve level of service (Pagani and Pardo 2017). The company is spending much money for digital improvement. This extra expense forces company to add some extra price for the services in order to maintain minimum profit. This addition of cost is making the services of Privia Health Care a bit expensive compared to the services from the other companies. Many customers in this case can go for the companies providing the same service in lower cost. This can cause the loss of some customer base of Privia Health Care.

Change in the need: The need of customer is changing and Privia Health Care is aware of it. The change in the need of the customer can become an opportunity as it can give the company a better business idea (Peters et al. 2016). The company has conducted a survey among the customers about the review of the service and understands the gap between requirement and the service. It has been found out that the customers are asking more of their involvement in the entire service providing process. They want to be aware of what type of products Company is using while giving the service and its way of working.

 Depending on the future aspects of the company the new model for the digital transformation can be deployed (Lupton 2014). Digital disruption plays an important role in determining the future prospects of the company. The main digital disruption can be loss of jobs of workers but in case of Privia Health Care the digital disruption is transformative.

The digital transformation of the business model of the company will provide certain benefits such as;

• Cost reduction
• Digital exchange of payments.
• Transparency in pricing
• Providing online platform for reaching to the customers.

Presently the company has partially adopted the use of digital interface in some cases but in future it is planning for digital transformation of the whole business model (Westerman and Bonne 2015). The company is using digital interface in primary level of communication. It has implemented automated voice machine in case if there is o one to answer the call of the consumers.

The company is planning to use digital interface both for promoting the business and improvement of the business. The management of the critical operations can be done by automated machines. Moreover booking an appointment, or making a payment can be done by digitally operated system. In case of operating different systems in the organization IoT (Internet of Things) can be used (Wang, Kung and Byrd 2018). Fetching the important data regarding the patient and the organization and maintaining the system record can be done by systems those are based on Artificial intelligence software (Schwertner 2017). In order to reduce the system overhead the storage of data can be done in internet cloud. These steps will help to reduce the maintenance cost of the company.

Opportunities

The digital transformation of the company can be viewed as the well managed interface between the provider, digital interface and the customers of the company (Hellbe and Leung 2015). It will help the company to implement an on-demand platform (Phillips and Merrill 2015). This on-demand platform of the service will help to improve the experience of customers and will help to manage supply demand system.

The disruption due to the digital transformation in case of Privia Health Care is transformative. Due to the digital transformation Privia Health Care may need fewer workers for the operation but the digital transformation enables new business opportunities for the individuals as people can avail franchise of Privia Health Care and can build their own business with collaboration of the company. The business strategy in case of digital transformation can be analyzed using Porter’s Five Forces model in industry level view .

Competitive Rivalry: Privia Health Care has certain numbers of competitors. Based on the market situation Privia Health Care is in the best position(Lynch et al. 2014). However the other companies are also improving their service and taking smart strategies to attract consumers. Privia Health Care needs to take some initiative that will make a difference between service given by other companies and Privia Health Care.

Threat from new entrants:  Initially there was no competitor of Privia Health Care but now some companies have followed its path of doing business (Michie et al. 2017). Company is aware of its competitors. There are certain areas which gives other companies giving advantage over Privia Health Care (Smorodin et al. 2017). Cost is one of the major factors among them. The company is using analytical tools and digital interface in order to reduce production and administrative cost. The company is doing publicity in its favor and it has taken initiative to differentiate their services with the services from other companies.

Threat from substitute: Presently there is no substitute of the types of the service Privia Health Care is providing (Matt, Hess and Benlian 2015). However certain digital improvisation can be made in different fields which can make the services different from the present services.

Bargaining Power of Suppliers: The other competitors of Privia Health Care are lowering down the price of services (Demirkan, Spohrer and Welser 2016). Privia Health Care believes in the quality of the service. In this case the main challenge of the company is to minimize the cost of service maintaining the quality service as well as profit margin.

Threats (Challenges)

Bargaining Power of Customers: Initially there was no competitor of Privia Health Care. In that case the company was the only option for the customers to avail special type of health service (Wang, Kung and Byrd 2018). Presently there are other organizations providing same kind of service so consumers have many choices to choose. Customer choice plays an important factor for Privia Health Care.

Table 1: Factors and their priority

The response of the Privia Health Care in case of digital transformation is positive. In the long run the company is aiming a digital transfer of the whole organizational function structure. Regarding this some recommendations can be made:

• Company is planning to transfer the storage system to the cloud storage. In this case hybrid cloud storage can be used.
• Privia Health Care can launch an application which will contain all the information about the company and also enables the user to book an appointment.
• Maintenance of certain machines like X-ray machine or MRI machines can be done by the IoT.

Conclusion

It can be concluded that Privia Health Care has occupied the major segment of the health care giving service market. Market change is a constant thing and in order to maintain a smart competition with the other organizations Privia Health Care needs to adopt the new technology in the field of health care.  This will help to make a good will for the company and this good impact will help to expand the business of Privia Health Care in a long run. Recommendations are made based on the implementations and impacts of using digital technology in the Privia Health Care.

References

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Hellbe, S. and Leung, P., 2015. Digital transformation: How APIS drive business model change and innovation.

Lupton, D., 2014. Critical perspectives on digital health technologies. Sociology Compass, 8(12), pp.1344-1359.

Lynch, K., Kendall, M., Shanks, K., Haque, A., Jones, E., Wanis, M.G., Furukawa, M. and Mostashari, F., 2014. The Health IT Regional Extension Center Program: evolution and lessons for health care transformation. Health services research, 49(1pt2), pp.421-437.

Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business & Information Systems Engineering, 57(5), pp.339-343.

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