Why More Health Techs Should Embrace the Product and Platform-Led Growth Model

Once a health tech product or solution has been delivered to market its fate is arguably sealed.

You may have identified the gap or the problem to solve, but did you have the right team in place to constructively challenge your proposition, to ensure that what you’re bringing to market is actually valuable?

Competitive pressure can lead to behind the scenes airbrushing or scrimping, in the rush to ‘differentiate’. Reality eventually catches up, and reveals too many products have become obsolete, considered by users to be irrelevant, cumbersome to use, or over-engineered.

One tried and tested approach to ensuring you minimise the risk in getting it wrong is the product and platform-led growth model (PLG). An increasing number of successful health techs have adapted and refined this model on their own terms, at different stages in their growth. And we see that it continues to serve them well in both their portfolio and geographic footprint expansion.

If ever there was a more compelling GTM blueprint to consider this is it, especially as enforced cost cutting measures show no signs of ending across health tech.

Taking Stock

PLG is appropriate for vendors of all size. Incumbents may have to implement widespread transformation to accomplish it, while SMEs looking to scale may already have some elements in place.  It’s arguably essential in any post M&A scenario.  

At face value PLG seems simple. But it’s not.

It forces you to dismantle your internal approach to product design, sales, marketing, and GTM strategy. Out are hierarchies, in is empowerment.

Firstly, the ‘product’ component is a misnomer. Across Healthcare we’ve endorsed the ‘product fit’ context. But PLG insists that client-side, your product must deliver tangible outcomes post-implementation. But that doesn’t mean ‘product first’ at all costs, especially to your business. Get this wrong and you have every other team running down the wrong track.

You need to consider the alignment between your intended product and your overall business and bottom line, as well as that of your partners. That means a series of ongoing checks and balances, treading fine lines on a number of fronts along the way.

Your ultimate goal is to get your product in front of real users, not buyers, who often have a different set of priorities. Their positive experiences can go viral and act as a gateway into their peer networks. Hope or assumption as a strategy won’t get you there.

Setting Up Your ‘A’ Team Through (Re) Discovery

PLG elevates the ‘Discovery’ phase to centre stage. Product teams get to act as proactive influencers in the overall company strategy and vision. They get room to breathe through this phase, alongside a range of cross-functional experts from your other teams, brought in to contribute to this early stage. This bottom-up approach authorises product leaders to overwrite or dismiss a top-down push for features or short-term thinking.

This sets a commitment to and among your teams, as well as the market: a culture of more balanced opportunity scoping generates a viable proposition that speaks to your organisation’s strengths, and makes sense for you to pursue. Discovery helps define your USP and keep it centre stage.

The best analogy is to think of the flywheel, where core strength is enhanced when more aligned force is applied to keep the wheel in motion and prevent it from derailing. Underpinned by mutual respect, accountability, all incentives are reset to new metrics.

Post-delivery, client relationship management obviously comes to the fore. And PLG also rewrites this remit.

Your Cultural and Operational ‘Shift Left’

The cross-functional culture seeded through Discovery now extends across your lines of business, further empowering all your teams to keep delivering value.

By embracing platform thinking, you form a series of small teams with the authority to work together continually to oversee these areas: core IT capabilities; business capabilities; and customer journeys. Modularity is the glue that binds.  

Together they navigate the layers of product strategy, business case analysis, demand forecasting, product-led growth tactics, your ongoing investment in technology, and end user validation. These are your under-writers, keeping you grounded.

And by keeping your fly wheel well oiled, the portfolio you offer has greater potential to serve new customers in adjacent healthcare sectors and new geographies.

Your new proposition will now embody these features:

  • The art of listening: Your sales teams will remain ‘customer obsessed’, but will no longer this pressure your product teams into a  conveyer belt of new features, or constant tweaks to customise.

Working alongside your product and engineering teams, they appreciate the power of pre-configured or modular solutions, and how this can actually help achieve superior outcomes.

  • The ‘why’ not the ‘what’: How it helps, not what it does. Storytelling can weave rich examples of inspired actions from peers achieved pragmatic, innovative outcomes. Case studies can be effective in highlighting outcomes to your technically geared audience.

Consistency in design: Helps your clients eradicate variation across their workflows. Building standardization into your processes still leaves scope to creatively address local needs.  

  • The power of data: Analytics captured contextually reduce the need for hard intrusive selling and indirect user feedback. Customer Success and Product Marketing can focus on nurturing customers with higher lifetime values. Data driven insight also supports richer storytelling.

If you’re sceptical about this, then ask yourself: Why we still have so much shadow IT, incumbent solutions dripping in bells-and-whistles add-ons, or so many point solutions across Healthcare? Something has got lost in translation.

For reference, these health techs examples are testament to the power of PLG.

Palantir and the NHS | So Near and Yet So Far

Palantir positions itself as a data harmonizer, integrator, and analytics facilitator, yet its National Health Service (NHS) detractors label it a data thief. The current barrage of recycled criticism surrounding the company is short sighted, when really, Palantir is being scapegoated for a decade of poor NHS leadership on nurturing a data driven culture.

Now, the NHS Transformation Directorate (a merger between the former NHS Digital, NHSX, and NHS England) is spending inordinate amounts of time defending its decision to exploit the effective partnership it forged with Palantir through the pandemic.

One upcoming ‘open’ contract, yet to be run, must rank among the most controversial in the history of NHS technology procurement:

  • A five-year relationship (with an option to extend by a further 2 years) worth £360m, to co-create a national data analytics platform, aka Federated Data Platform (FDP). This will enable analysis of disparate data streams from across the 42 newly established local Integrated Care Systems (ICSs).

Three key issues underpin the hotly debated and at times mis-interpreted discourse:

  • Outward behaviour has had the rumour mill running at an all time high that Palantir and NHS leaders have already jointly decided the structure and running of the FDP, so that the open tender is no more than a rubber-stamping exercise, to camouflage the award of the biggest chunk to Palantir. This also includes the recruitment of two former NHS England executives who had been working closely with Palantir through the pandemic;

  • No NHS-wide debate has been held to champion this next chapter, or reassure frontline teams on data sharing and privacy-by-design. Contrary to general perception, we’re told that the FDP is not intended to directly support patients’ care. It will reportedly initially be used for the national management of vaccines and immunisation programmes, population health, elective waiting lists, and meds & equipment supply chains;

    • Yet, relationships are further strained when we’re to believe that shared care records, which the vast majority of ICSs now have created in some form, will feed into the FDP.  Not everything adds up, and key stakeholders rightly expect transparency;

  • The company’s heritage in classified security and military-related contracts.

So much so that the release of the tender has been delayed twice so far.

Blinkered NHS Leadership

Perhaps part of the problem here lies in the drive by NHS leaders to accelerate at scale and pace. They have a legacy of spectacular failure in public, patient-advocacy, GP, and provider engagement over data sharing, ownership, and privacy.

That US providers continue to renew Palantir contracts seems to offer no reassurance on issues such as trust and data privacy. If anything, this further stokes the debate on the higher likelihood of the English model ‘descending’ towards privatised healthcare – in a culture steeped in free at the point of care, any mention of patients paying for at least some of their healthcare sparks outright fury. And yet the reality is that the self-payment model has been gaining traction among those unwilling to sit out delays of several years before being offered intervention. 

There is a huge spectrum of digitally enabled transformation across the NHS. The successful stories emanate from strong local leadership teams. This in itself represents another oddity within NHS policy here : When it suits, frontline leaders are offered match funding for tech innovation and advised that ‘local knows best”; in other instances, such as with this FDP, a top down model is all but imposed.    

Drowning in Data Yet Low Population Health Insight

We know that the ICSs and their aligned Boards have multiple challenges ahead to ensure on par digital maturity, while still grappling with paper-based settings and EPR deficits (a mandate has recently been set to close this deficit).

The NHS needs and wants much of what Palantir has to offer: a federated setting with strong governance foundations, interoperability, model-agnostic methods, open architecture, operational & decision intelligence, AI-on-the-fly, AI for IoT and Edge, “co-create once and repurpose”, and vertical platforms.

Most recently, through The London Medical Imaging & AI Centre for Value Based Healthcare, NHS leaders had a golden opportunity to create a wider coalition of the willing among frontline teams, to embrace a federated learning model. That hasn’t happened, with the result that this apparent leapfrog into a longer term and more consequential relationship is drawing such criticism and alarm.

But there is a clear line between both these projects: in the Value Based Care initiative, although tech companies were clearly involved, NHS Digital was in the driving seat. In this FDP initiative, the feeling is that these same leaders are handing over the crown jewels of NHS rich data to Palantir.

The justification for the tender is that the skills needed to build and manage such a platform go way beyond the collective capability of the NHS frontline, at a time of its greatest operational challenge.

While there are clinical and IT leaders who support this move, the drive to embed this nationally is still facing strong resistance. Not to over-simplify the tensions here, it’s worth busting some myths over Palantir:

Palantir Takes Up Mentoring

Palantir has clearly worked its successful pandemic relationship with the NHS to good effect. That approach too has been criticised. But let’s face it, this is no different a tactic from other vendors over the years, including many of those that stood up solutions for free through COVID-19. Equally, many vendors have over the years sought my advice on which among the NHS England/NHS Digital/ NHSX leaders they should woo, to embed their respective tech philosophy.   

Palantir has also stepped in to reassure on what to expect, should it win the largest part of the FDP work. But much of the language used is elusive to many frontline teams.  

The NHS Transformation Directorate may plough on and coronate Palantir, offering the 3 other related FDP tender parts to other bidders – note that the names in the running are not mainstream to the NHS. One of these vendors has confirmed its intention to submit a bid as part of a consortium.  

This is a further irony given the range of high calibre partners signing up to work with Palantir in general, many of which independently have forged solid trusted relationships with the NHS, and which within the context of this FDP contract will have to engage with Palantir on some level.

Or, as is currently politically fashionable, we may yet see a U-turn (expensive).

There is perhaps never an optimal time to go ‘big and bold’, but this is what’s being prioritised. This is high stakes for both the NHS and Palantir.  

Expect the debate to rage on, post-contract award. This expenditure carries all round high expectation on deliverables and frontline outcomes over the timelines carved out.

    Larry Ellison | Healthcare’s Misplaced Hero

    Larry Ellison has had plenty of time to mull over his ‘Future of Healthcare’ proposition, unveiled this week. He’s drawn on Oracle’s solid relationship with 28 of the top 30 global life sciences leaders, its support of some big name providers and US payors, and how it threw its weight behind some pioneering collaborative discovery through the pandemic.  

    And yet, he’s somehow managed to miss the mark.

    Continue reading “Larry Ellison | Healthcare’s Misplaced Hero”

    Taking Your Provider Relationship to the Next Level

    Despite several ‘big story’ headlines over the last few weeks, slamming both the enterprise and health tech sectors for their arrogance in thinking they can crack Healthcare simply, providers do appreciate the value in working with the vendor community.  

    Equally positively, as more advance along their Transformational and digital journey, they now recognise the need to shift from a transactional to a collaborative relationship: that they too have a role to play to ensure a tech partnership is successful; that they must better articulate their needs.  

    But there is a big ask from you too, the vendor.

    Continue reading “Taking Your Provider Relationship to the Next Level”

    AstraZeneca and Huma Therapeutics | Signalling a New Type of Relationship

    This week’s announcement of the sale of AstraZeneca’s chronic disease management platform, AMAZE™, to Huma Therapeutics in return for a stake in the company and collaborative partnership has generated a mix of responses.

    I see this neither as a spin off from a biopharma losing interest in digital healthcare, nor an attempt to catch up with peers that have already launched digital therapeutics products – as has been suggested by others.

    Continue reading “AstraZeneca and Huma Therapeutics | Signalling a New Type of Relationship”

    Amazon and Babylon Mount Their US Telehealth Bid | So What? | Part 2 Babylon Unpacked

    To Make an Imprint, Babylon Has to Keep Moving Deeper into the Clinical Stack

    Babylon set the primary care market alight when it launched back in 2013 as the hero Healthcare needed, intent on disrupting the inequitable primary care model.

    9 years on, and rarely out of the headlines, it’s certainly progressed, but the bold ambition it laid out hasn’t been fully realised. Along the way, it’s accumulated as many critics and sceptics as it has fans.

    Continue reading “Amazon and Babylon Mount Their US Telehealth Bid | So What? | Part 2 Babylon Unpacked”

    Amazon and Babylon Health Mount Their US Telehealth Bid | So What? | Part 1 Amazon Unpacked 

    Part 1: To Make Any Imprint, Amazon Must Apply Its Composable Principles to Create a New Ecosystem

    Many Healthcare disruptors are circling telehealth and DTx (digital therapeutics).  

    We shouldn’t therefore be surprised to see two more vendors throw their hat into the telehealth ring in the US: Amazon, the power brand with combined eCommerce and hyper-scaler credentials; and Babylon Health, the digital primary care SME on a mission to deliver universal, affordable, and value-based care.

    But should we care about two players which have only been operating on the fringes of the Healthcare spectrum? Can Jeff Bezos and Ali Parsa sufficiently penetrate a market as complex as the US to make a difference?  

    As latecomers, and until recently sitting on the same side of the Healthcare fence as partners, they face the urgency to scale, amplify reach, and build momentum. And from what we’ve seen most recently, although their strategic responses differ, they both clearly realise that their success hinges on the ability to tether their services directly to the clinical setting. Game on.  

    I believe that Amazon and Babylon each views telehealth as the front door to something bigger. But I also believe the only way they can fulfil this ambition is to embrace ‘Ecosystem 2.0’ , the model we need to see across Healthcare, which is underpinned by a culture of composability.

    Such an ecosystem celebrates open innovation, federation, and risk: reward, so it’s not for everyone. It also opens the door for more telcos to realise their Healthcare ambition, if they step up. Payers, providers, and Pharma can also join to exploit their own assets and co-create to pioneer.

    In this two-part profile, I’ll unpack each organisation in relation to how I think they’re laying the groundwork to move towards this new model.

    First up, Amazon.  

    Continue reading “Amazon and Babylon Health Mount Their US Telehealth Bid | So What? | Part 1 Amazon Unpacked “

    Health Tech’s High Stakes | Growth Strategy Isn’t a Stab in the Dark

    Distress Abated, For Now

    This pandemic has put all tech vendors through the wringer. And as we emerge from two years of what has felt like innovation on-the-fly, it’s becoming clearer which companies have been peddling furiously in the background, now running out of steam, or on the verge of collapse.

    For those positioned within the Cloud computing space, where it’s not yet a table-stakes issue across the Healthcare landscape, GTM and growth planning has become more challenging.  

    SMEs face the most intense pressure, with the risk of being cut off in their prime though unstable and erratic revenue streams. But we can’t blame it all on the pandemic.  

    Continue reading “Health Tech’s High Stakes | Growth Strategy Isn’t a Stab in the Dark”

    2022 | A Year of Purpose-Led Convergence

    These are my top 4 predictions for the Healthcare sector in 2022.

    Each contributor to this sector has to finely balance rigour and quality of service with a more agile, rapid response to market dynamics, while positioning against some form of innovation.  

    We all know the challenges, and can pinpoint the bottlenecks and backlogs. But we’ve also collectively acknowledged that having to embrace such high-risk stakes over the last 2 years has  unleashed a pioneering spirit, that has not only dismantled boundaries, but illustrated that cross-disciplinary groups with a shared purpose can move mountains – paving the way for a multi-pronged approach to tackling some of Healthcare’s greatest challenges.

    And of course, technology remains the critical enabler.

    Continue reading “2022 | A Year of Purpose-Led Convergence”
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