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April 20th, 2012

INNOVATION STRATEGY
MATT GYMER
L1 – Progress of Disruptive Innovation
    Performance




                                                                         Performance that
                                                                         customers in the
                                                                         main-stream
                                                                         market can absorb




                                                                  Time
Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
Disruptions of Healthcare Professions
           Complexity
           of diagnosis
           and
           treatment


                                                                         Performance
                                                                         that patients
                                                                         need or can use




                                                                  Time
Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
Disruption of Healthcare Institutions
     Complexity of
     diagnosis and
     treatment



                                                                         Performance
                                                                         that patients
                                                                         need or can use




                                                                  Time
Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
Novant Innovation
        DNA of Novant Innovation must include capacity for addressing disruptions in
        health care professions (care) and institutions (business process)




                Depth
                          Business
                          Process
                          (i.e. ED)




                                      Distinctive Care at the Bedside

                                      Remarkable Patient Experience


Source: OVO Innovations                                                 Breadth
Organizational Nimbleness
     Disrupted markets will require Novant managers to exploit old certainties,
     explore new business models, and execute leadership ambidexterity.



                                  “High Change” future
               Change


                                                Range of possible   “Anticipated” future
                                                   futures




                                                                    “Low Change” future
                          Today
Source: OVO Innovations                                               Time
L2 – Manage as Designer
•   Boundary Span
•   Use of Employee Narratives
•   Rapid Cycle Development
•   New Value Creation
•   Positive ROI
Novant Vision Elements
      Safety
      Our patients are safe and free from harm when they are in our care. Our work environment
      is one of open communication and timely feedback about the patient’s safety and care
      experience which is guided by the expectation “First, Do No Harm.”


       Quality
       Patients receive integrated healthcare services which deliver superior outcomes as
       measured against national, state and regional benchmarks, peer databases, internal
       standards, and the patient and family experience. Our system of care incorporates
       prevention, early detection, treatment and ongoing health across all venues of care. Our
       public transparency about our outcomes data creates a compelling reason for patients,
       communities, physicians and employees to affiliate with Novant and choose us for their
       healthcare needs.


      Affordability
      We deliver a system of care that provides value, as judged by our patients and their payers.
      Novant will compare favorably to a similar group of top performing health systems. Our
      sustained financial strength will allow us to grow strategically and invest to meet the needs
      of the patients and communities we serve.
Novant Vision Elements
     Easy for Me
     We deliver a convenient and seamless patient and family experience which is accessible and
     welcoming. Patients understand they are part of a system of care and can describe what is
     going to happen during their journey and why. Resources and information are readily
     available and waits are filled in ways that add value to patients and their families.



      Voice & Choice
      Patients receive all the necessary information to make knowledgeable and confident choices
      about their health conditions, treatment options and overall well-being. We embrace patients
      as true partners by valuing their perspectives and engaging them in genuine dialogue.




     Authentic Personalized Relationships
     We know our patients and see healthcare from their shoes. Patients receive personalized
     care during and beyond their encounters with us, and always from a place of compassion.
     They truly feel like family and give us their loyalty because of the genuine, meaningful
     relationships we have built with them.
Mission: Innovation as a Cross-
Functional Moderator
•   Data broker - deep consumer insight & analytics
•   Technology integrator - value chain
•   Strategy executor - short/long term P/L clarity
•   Trust builder - individual voice & meaningful purpose
•   Designer - business models
•   Value creator - market making opportunities
Value Creation

                                              ELIMINATE                      RAISE
                                              Which factors can you          Which factors should be
                                              eliminate that your industry   raised well above the
                                              has long competed on?          industry’s standard?
     - COSTS                        + VALUE
                                              REDUCE                         CREATE
                                              Which factors should be        Which factors should be
                                              reduced well below the         created that the industry has
                                              industry’s standard?           never offered?



                  - VALUE INNOVATION -                    - FOUR ACTIONS FRAMEWORK-


Source: Business Model Generation
Automated Idea Generation

                              Automated idea graduation criteria are
                              completely configurable based on user
                              data and site use patterns


                         Idea scoring criteria include: vote up/down
                         button, number of comments attached to
                         idea,

                   Number of subject matter expert reviews of idea,
                   frequency idea is “shared with a friend”

              Frequency the idea is opened and viewed, speed at
              which ideas gather comments, cross market/facility
              views, overall collaboration is critical
Manual Idea Graduation


                          Corporate-wide Innovation
                          Challenges feed innovation funnel

                       Subject matter experts (badge)
                       help shape ideas

                  Innovation council members score
                  ideas

              Executive Team chooses ideas to
              fund and test
Idea Display
Questions or Comments

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Matt Gymer 2012 Innovate Carolina Presentation

  • 1. April 20th, 2012 INNOVATION STRATEGY MATT GYMER
  • 2. L1 – Progress of Disruptive Innovation Performance Performance that customers in the main-stream market can absorb Time Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
  • 3. Disruptions of Healthcare Professions Complexity of diagnosis and treatment Performance that patients need or can use Time Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
  • 4. Disruption of Healthcare Institutions Complexity of diagnosis and treatment Performance that patients need or can use Time Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy
  • 5. Novant Innovation DNA of Novant Innovation must include capacity for addressing disruptions in health care professions (care) and institutions (business process) Depth Business Process (i.e. ED) Distinctive Care at the Bedside Remarkable Patient Experience Source: OVO Innovations Breadth
  • 6. Organizational Nimbleness Disrupted markets will require Novant managers to exploit old certainties, explore new business models, and execute leadership ambidexterity. “High Change” future Change Range of possible “Anticipated” future futures “Low Change” future Today Source: OVO Innovations Time
  • 7. L2 – Manage as Designer • Boundary Span • Use of Employee Narratives • Rapid Cycle Development • New Value Creation • Positive ROI
  • 8. Novant Vision Elements Safety Our patients are safe and free from harm when they are in our care. Our work environment is one of open communication and timely feedback about the patient’s safety and care experience which is guided by the expectation “First, Do No Harm.” Quality Patients receive integrated healthcare services which deliver superior outcomes as measured against national, state and regional benchmarks, peer databases, internal standards, and the patient and family experience. Our system of care incorporates prevention, early detection, treatment and ongoing health across all venues of care. Our public transparency about our outcomes data creates a compelling reason for patients, communities, physicians and employees to affiliate with Novant and choose us for their healthcare needs. Affordability We deliver a system of care that provides value, as judged by our patients and their payers. Novant will compare favorably to a similar group of top performing health systems. Our sustained financial strength will allow us to grow strategically and invest to meet the needs of the patients and communities we serve.
  • 9. Novant Vision Elements Easy for Me We deliver a convenient and seamless patient and family experience which is accessible and welcoming. Patients understand they are part of a system of care and can describe what is going to happen during their journey and why. Resources and information are readily available and waits are filled in ways that add value to patients and their families. Voice & Choice Patients receive all the necessary information to make knowledgeable and confident choices about their health conditions, treatment options and overall well-being. We embrace patients as true partners by valuing their perspectives and engaging them in genuine dialogue. Authentic Personalized Relationships We know our patients and see healthcare from their shoes. Patients receive personalized care during and beyond their encounters with us, and always from a place of compassion. They truly feel like family and give us their loyalty because of the genuine, meaningful relationships we have built with them.
  • 10. Mission: Innovation as a Cross- Functional Moderator • Data broker - deep consumer insight & analytics • Technology integrator - value chain • Strategy executor - short/long term P/L clarity • Trust builder - individual voice & meaningful purpose • Designer - business models • Value creator - market making opportunities
  • 11. Value Creation ELIMINATE RAISE Which factors can you Which factors should be eliminate that your industry raised well above the has long competed on? industry’s standard? - COSTS + VALUE REDUCE CREATE Which factors should be Which factors should be reduced well below the created that the industry has industry’s standard? never offered? - VALUE INNOVATION - - FOUR ACTIONS FRAMEWORK- Source: Business Model Generation
  • 12. Automated Idea Generation Automated idea graduation criteria are completely configurable based on user data and site use patterns Idea scoring criteria include: vote up/down button, number of comments attached to idea, Number of subject matter expert reviews of idea, frequency idea is “shared with a friend” Frequency the idea is opened and viewed, speed at which ideas gather comments, cross market/facility views, overall collaboration is critical
  • 13. Manual Idea Graduation Corporate-wide Innovation Challenges feed innovation funnel Subject matter experts (badge) help shape ideas Innovation council members score ideas Executive Team chooses ideas to fund and test