Today was the final day of The 2017 OPEN MINDS Strategy & Innovation Institute – and it has been another great year in New Orleans. Over the past few days, 400+ executive thoughtleaders gathered to discuss their innovation successes (and frustrations) – and this afternoon I closed out the institute with my keynote, There Is No “Plan B” Alternative To Value: Creating A Value-Focused Competitive Strategy In A Changing Market. My focus – how to use innovation in developing a sustainable strategy.
I started the discussion with a simple concept – executive teams need to rethink what they know about the forces shaping the market landscape. Traditional thinking about “competition forces” needs to change – there are new organizations in the mix; the importance of consumer experience is on the rise; and the potential of technological substitution.
The New Competition – So who is the new competition? The competition for behavioral health revenue includes a new cast of characters – provider organizations acquired by health plans, health system ACOs, national specialty care organizations, and “virtual care” organizations.
The Changing Face of Consumer Preference – This is the “Amazon” and “Uber” phenomenon. Consumers want convenience, and they want it in the form of 24/7 access with “one click.” And there are a host of organizations that are stepping into this space, differentiating their service offering with “on demand” convenience.
The Substitution Effect Of New Technology – How much technology will replace “live” services remains to be seen. But there are new organizations offering services that replace therapy, replace billable case manager time, and traditional diagnostic testing.
The question for executives of health plans and provider organizations – are these new “players” competitors or potential partners? As management teams sort out of the questions of “unique selling proposition” (see The Goal: Be A Golden Brand and Positioning > Branding > Marketing > Revenue) and “competitive advantage” (see ‘Agile Innovation’ Needed For The Challenges Ahead and No System Too Big? No Niche Too Small? Strategy Challenges Ahead), the effect that these organizations have on strategy will become more apparent.
For more, join my colleague Joseph P. Naughton-Travers for his session, “Reinventing Your Organization In A Complex Market: How To Build A Sustainable Strategy” at post-institute seminar for The 2017 OPEN MINDS Executive Leadership Retreat, on September 29 in Gettysburg, Pennsylvania. And, if you couldn’t attend this year? Be sure to check out our archived coverage on Twitter @openmindscircle – #OMInnovation.