Professor Daniel SteenstraMr Simon Potter

Overview

Disruptive Healthcare Innovation Initiative

Personal Introduction

Royal Academy of Engineering’s first Visiting Professor in Medical Innovation

• Medicine• Design & Innovation Management in Automotive sector (Jaguar)• Consultancy in Innovation Management (Unilever, Alstom)• HealthTech at WMG / University of Warwick (170 projects; 800 jobs

and £50m in sales for SMEs)• Developing and commercialising healthcare product and services

(Innovations Factory based at Heartlands Hospital)

Outline

• Healthcare challenges• Need for innovation• Why disruptive innovation• The £1000 scanner• Cranfield Disruptive Healthcare Innovation initiative• Visionair

o Deliverableso Ongoing project opportunities

Healthcare challenges

1. Rapidly increasing need for healthcare

2. Demand to provide better quality of care

3. No extra funding

Demand and Expenditure in the NHS

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

0

20

40

60

80

100

120

elective hospital admission (millions)Linear (elective hospital admission (millions))A&E attendencies (millions)Linear (A&E attendencies (millions))NHS Net Expenditure (£Billions)

The King's FundHouse of Commons - Health Committee

Need for healthcare and funding

time

Funding(£)

Need

Position?

Need for healthcare and funding

time

Funding(£)

Need

Position?

Increasing efficiency and productivity does not suffice

Need for innovation

• Innovation is critical to economic change• Responses to change in business environment:

o ‘adaptive response’ – Incremental Innovationo ‘creative response’ – Radical Innovation

Joseph Schumpeter ‘The Theory of Economic Development’

Disruptive Innovation- Theory

Performance

Timeleast demanding customer

most demanding customer

Sustaining innovatio

n

Disruptiv

e innovatio

n

Clayton Christensen – The Innovator’s Dilemma

e.g. SonyIBM

Apple

Virgin

Disruptive Innovation- Enablers

1. Simplifying technology

2. Business model innovation

3. Disruptive value network

Disruptive Innovation- Why

• Focussed on the US healthcare system • Lacks practical methods, tools and techniques

However disruptive innovation is most appropriate:• affordable products and services • shift diagnostics, therapy and care out of expensive

hospitals back into the community.

£1000 Scanner- History

• Diagnostics in primary care• Inspired by $100 laptop• Based on Open Source (OS) and PSS models

£1,000 primary care medical scanner

Scanning technologies

• X – Ray / CT • UV• Ultrasound• NMR / MRI• PET / Gamma ray

Dedicated MRI- Positioning

Dedicated MRI- Pathways

Dedicated MRI- Layout

Dedicated MRI- Infrastructure

• Integrating product and service design

Service design

PATIENT JOURNEYIN IMAGES

PATIENT JOURNEYIN IMAGES

RELATED MEDICAL RESEARCH IIIRELATED MEDICAL RESEARCH III

Availability contract Vs Pay-per-scan

Ultrasound image processing

Key Challenges

• Market pull instead of technology pusho Involving patients and other stakeholders

• Viable business model that provides return on investment for companies investing in manufactureo Identify sources of funding for product development

• Perceived threat to established OEMso Assess infringement of their IP rightso Get end-customer buy-in and supporto PR campaign

• Regulatory approval o Technical fileso Accredited supply chain

Disruptive Healthcare Innovation initiative- Vision

Disruptive Healthcare Innovation Initiative supports sustainable healthcare by leading the development and implementation of practical methods and demonstrators of disruptive healthcare innovations.

Disruptive Healthcare Innovation initiative- Elements

Disruptive Healthcare Innovation initiative- Demonstrator

Integrated system

Ultrasound scanner

OK

?

Aneurysm

Further investigation

Intervention

Product / Service System

Ultrasound scanner

OK

?

Aneurysm

Further investigation

Intervention

?

Product / Service System

??

?

?

??

Thank you