The slow pace of fast change
The more innovative the technology, the slower its adoption. Plan for it.
New medical technology creates value only when others change what they do: a clinician alters a pathway, a hospital builds a capability, a payor writes a policy. The paper examines this cost of change in cell and gene therapy and in algorithmic diagnostics, and how companies can fund the time it takes.
Points for boards and executive teams to consider:
- Understand the value chain you will need, early and in full. The more innovative the technology, the more it may differ from today’s value chains.
- That change will likely need to come from external stakeholders who may not share your enthusiasm for the technology. Adoption may take longer than planned; know how the longer period will be financed.
- Build this into plans and strategy from the start. For example, a bridging market that earns revenue and builds capabilities while adoption catches up.