Disruptive Innovation in Healthcare: A Case Study of Millennium Health Sciences

Disruptive Innovation
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Table of Contents
Introduction......................................................................................................................................3
A. Internal perspective.....................................................................................................................3
Human resources.........................................................................................................................3
Organisational culture..................................................................................................................4
Allocating resources....................................................................................................................4
Organisational structure...............................................................................................................5
B. External Perspectives...............................................................................................................5
Commitments and relationships..................................................................................................5
Regulatory and economic conditions...........................................................................................6
C. Marketing perspective.................................................................................................................6
Customer visit program...............................................................................................................6
Empathic designs.........................................................................................................................7
Lead-user processes.....................................................................................................................7
D. Technology perspective..............................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Disruptive innovation is termed as the process through which a product or services performs
effectively at the lower costs as compared to other offerings which thereby displaces the leaders
of the market in that specified market space and makes the transformation of the industry. The
most significant feature of disruptive innovation is the adoption of innovation. The practices of
disruptive innovation are being utilized by the medical services which make the involvement of
innovation in specific medical care such as m-health, health insurance, robotic surgery, online
delivery of medicines, etc. (Hyland and Beckett, 2018). This report will also highlight the usage
of dynamic strategy and disruptive innovation in healthcare systems such as Millenium Health
Sciences (MHS).
A. Internal perspective
Disruptive innovation is noted as an innovation related to strategic significance for the present
and entrant firm. They are considered to be innovations that bring disruption in the market and
also tends to alter the bases of competition.
Human resources
The conventional practices associated with people management are not adequate for meeting the
needs and demands of a new generation. The technology innovation associated with human
resources management is applicable to a predetermined set of values in order to create synergetic
values. The human resource department is supposed to disrupt themselves by means of policies
and practices before the management themselves discard them for not offering value. It can be
revealed that the companies implementing different innovative methods in relation to HRM
functions tend to improve the employee job involvement and commitment towards the
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organization. The degree of innovation along with disruptiveness in the organization tends to
possess a major and direct association with high impact employee performance. It is noted that in
MHS the managerial structure is top-down where the decisions such as appraisal of the project
are made by the GM and then they are filtered down to lower levels. This might have an impact
over the performance of the employees in MHS. It is important that for MHS to implement
bottom up approach for disruptive innovation to work (Fox School of Business, 2019).
Organizational Culture
The overall culture tends to become cultural inertia that becomes too difficult to overcome. The
healthcare industry faced a huge injection of technology in the latter times. Hence, major
initiatives have been taken such as data analytics, health information systems, virtual reality and
so on. For all these aspects to materialize and become efficient, a shift in organizational culture
needs to be made. This proves to be one of the significant aspects because of the fact that
management offers the provision to implement such changes. The organization can attain an
advantage by injecting new and young employees who tend to be quite enthusiastic regarding
disruptive innovation thereby leading to changes. The culture of the company is such that they
believe the fact senior executives needs to come up with ranks. Hence, most of the top executive
has worked with the company for longer period of time. Experience is considered as the main
criteria for promotion in MHS. Hence, it can be analysed that the company is not yet ready to
implement MHS because of the fact that young and enthusiastic employees can work better in
terms of disruptive innovation but at MHS most of the employees are 50 plus age group (Fox
School of Business, 2019).
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