BUSI1067 Semester 1: Digital Platforms and Healthcare in China

This report, prepared for BUSI1067, investigates the transformative impact of digital platforms on China's healthcare industry, specifically addressing the challenges and opportunities in diabetes management. The study highlights the limitations of traditional healthcare systems and emphasizes the potential of electronic platforms to enhance prevention, treatment, and care services. It analyzes the perspectives of consumers, suppliers, and the government, showcasing the increasing acceptance of digital platforms, the capabilities of technology in providing high-level services, and the government's promotion of healthcare informatization. The report proposes a digital platform for diabetes management, incorporating medical data acquisition, artificial intelligence-driven forecasting, and nursing services. Furthermore, it discusses the business opportunities, potential benefits, and challenges, including data security concerns, and suggests blockchain-based solutions to protect patient privacy. The report concludes by outlining a plan for an IT exhibition to showcase these opportunities and promote the adoption of digital platforms in the healthcare sector. The report emphasizes the potential for investors and startups to capitalize on these emerging business opportunities, ultimately improving the quality of life for patients and advancing the healthcare system in China.

BUSI1067 Computers in Business
Group Assessment: Cover Page
Semester 1 2021-22
A study on how digital platforms empower healthcare businesses in
China: Enhancing the diabetes management by building an online
platform
Chen ZHANG (20319988)
Huanxin YING (20320208)
Jiamu GUO (20321108)
Jianing QI (20321089)
Yiqing WANG (20321092)
Ziyan ZHANG (20320154)

The healthcare industry plays a crucial role in improving people's quality of life
and promoting national economic development. However, the traditional
healthcare industry in China is facing challenges and diabetes is a typical
example. As a prevalent chronic disease, the high morbidity and huge treatment
costs of diabetes have become a concern partly due to the lack of
comprehensive medical services (Wild et al., 2004). According to Zhou et al.
(2020), the number of diabetes patients in China has increased rapidly in recent
decades, from 55.2 million in 2000 to 140 million in 2020, an increase of 150%.
Moreover, diabetes is a primary cause of disability and premature death because
it leads to complications in many organs. As noted by Du (2021), one hundred
and forty thousand people died from diabetes in 2016 in China and the losses of
gross domestic product due to diabetes were estimated to reach US$17 trillion.
These data demonstrate a huge burden of diabetes on individuals, society and
the country, but also show potential opportunities. Zhou et al. (2020) suggested
that manageability is a characteristic of diabetes; thus providing high-quality
prevention, treatment and care services has a positive role in prolonging
patients’ lives and reducing economic losses. Although traditional medical
institutions lack the ability to support the above services, with the development
of technology, electronic platforms based on multiple technologies can make it
possible. As a consulting company, this essay will center around a study on how
digital platforms empower China's diabetes business to help investors realize
business opportunities.
Existing medical resources are provided by offline medical institutions and online
medical platforms, which cannot fully meet the needs of patients. The offline
medical institutions provide a relatively single type of service and the quality is
uneven. LeRouge et al. (2010) pointed out that as information sharing is blocked,
high-quality medical resources are often concentrated in a few offline hospitals,

namely third-class hospitals, which only account for 7.7% of the total number of
hospitals in China. In addition, these medical resources are mainly used in the
treatment stage and little attention has been paid to the two equally important
phases of prevention and care. For instance, the telephone follow-up method is
used by hospitals as a nursing service, which has been proven to be inefficient
and cannot fully assess the patient’s condition. As for online medical systems,
although some platforms such as online consultation and disease knowledge
popularization have been developed to make up for the lack of offline, they are
at a preliminary stage and further improvements can be made in the content of
the supply (Deshpande, Harris-Hayes and Schootman, 2008).
Based on the shortcomings of existing medical institutions and the
characteristics of electronic platforms that can make up for these deficiencies,
the huge business opportunities in the medical industry can be clearly seen. In
analyzing these opportunities brought by electronic platforms in the healthcare
industry, the article will discuss respectively from the perspectives of consumers,
suppliers and government.
For consumers, the acceptance of digital platforms and willingness to pay for
high-quality medical resources has continued to increase. With the rapid
development of technology, consumers are beginning to transform their access
to medical resources as commercialization of IT makes the core functions of it
available to the public. From the analysis of the theme searched by Chinese
Internet users in 2016, health and medical services accounted for 53.78% of the
search on the eight topics, ranking first (Liu et al., 2017). Moreover, because of
the COVID-19 pandemic, patients' demand for online medical resources has
increased sharply, which raised the recognition of electronic platforms indirectly.
As noted by Zhou et al. (2020), due to fear of contracting the coronavirus, 65.4%

of the patients were reluctant to physically present to the offline hospitals. It can
be seen that the recognition of electronic platforms by consumers is showing an
upward trend. Additionally, the personal health expenditure in 2000 was 270.52
billion yuan, and by 2012 it reached 956.46 billion yuan, quadrupling from 2000,
with an average annual growth rate of 11.8%, which shows people’s increasing
emphasis and demand on health.
Suppliers of electronic platforms are able to provide high-level services with the
support of multiple technologies. Not only can these services solve the problems
in the traditional medical industry, but also create new models. For example, a
platform dedicated to diabetes management can be created to solve the problem
of the uneven distribution of regional medical resources and improve the chronic
disease management system by carrying out forecasting and nursing services.
To be more specific, first, medical data acquisition system collects big data
through multiple sources such as electronic medical records, research data and
data collected by mobile medical devices (Zhu and Zhu, 2021). Then, by
applying digital backbone, these data can be accessed by nursing institutions
when needed. Thus, doctors can be informed of correct information such as
disease history in time (Liu et al., 2017). Meanwhile, based on the collected
relevant information, artificial intelligence will push systematic and
comprehensive evidence and expert opinions to doctors to support data-based
practice (Cai et al., 2019).
This service will be fruitful, as the benefits obtained can be substantial. Firstly, it
solves problem of uneven distribution of regional medical resources and reduces
adverse drug events and medical errors (Wild et al., 2004), which significantly

reduces patients’ cost transportation expenses and time spent. Secondly,
compared with paper records, the digitization of medical information reduces
paper waste and improves portability (Zheng, 2013). Moreover, it embodies the
concept of green and sustainable development by storing data in the cloud.
Finally,
although the installation of this system is expensive, the estimated benefit over
5 years will reach 86,400 per provider (Zhou et al., 2020). However, doctors’
information technology level is a factor that needs to be considered when
applying this platform.
In terms of improving chronic disease management, this digital platform will
provide forecasting and nursing services to form a scientific system. Based on
big data and machine learning technology, the physical examination data of non-
diabetics and diabetic patients can be easily obtained as training sets (Zou et al.,
2018). By using the decision tree as the classifiers to analyze them, an 80.84%
accuracy rate can be obtained. In addition, sustainable nursing services will be
offered through the business information system (Bonney, 2013). Bluetooth-
enabled blood glucose meters can measure and enable data integration with the
platform. Wearable activity monitor and the activity monitoring capability of the
mobile phone will provide the amount of exercise, weight and other values
related to diabetes control. Based on these data, the platform can automatically
generate logs, graphs and curve intelligent statistics and provide personalized
diet, medication and exercise programs. If the patient’s indicators start to
deteriorate, the artificial intelligence-driven system will send alerts to the
hospital and the patient immediately (Herman et al., 2015).
These two services will have a positive impact and have the ability to achieve

profitability. Through the use of AI, the quality of life of patients will be improved,
and society can provide better medical services. Additionally, a new business
model has been created including active disease prevention and personalized
service. In terms of profit, the prevention of diabetes increases the early
detection rate of diabetes, which prolongs the life of patients by reducing
mortality and cardiovascular morbidity (Herman et al., 2015). Continuous follow-
up service reduces the possibility of diabetes-related complications and
effectively avoids risks. Therefore, patients will have a higher willingness to pay
for these two services. In addition, based on the long-term availability of this
system, the cost of operating the system will be greatly reduced, and investors
have a high probability of making a profit (Chan et al., 2009). However, there are
some negative issues relating to AI technology (Isacksz and Chang, 2019). Firstly,
as all the interested parties are related, who will hold accountable if harm is done
is unclear, which could make the distribution of responsibility ambiguous.
Secondly, data leakage is an issue that needs to be considered (Bao and Xu,
2018).
To address the data security issues, block-chain based electronic medical record
technology is applied to provide a guarantee for the operation of the platform
(Liu et al., 2017). Firstly, it enables the raw EMR securely stored in the private
chain, which is responsible for storing encrypted EMR, while the keyword index is
kept in the Consortium Blockchain. These two chains form a searchable EMR,
which could Effectively reduce the risk of data leakage and ensure that EMR
cannot be tampered with. Hence, patients' privacy could be well protected and
meanwhile be shared safely when necessary.
As the manager of the electronic platform, the Chinese government continues to
promote the informatization of medical institutions. In recent years, the

government has issued multiple opinions such as the 《 Guiding Opinions on
Promoting and Regulating the Development of the Application of Big Data in
Health Care 》 and 《Regarding the promotion of telemedicine services in medical
institutions opinion》 to encourage the development of internet medical services.
Therefore, providing services through digital platforms is the future development
trend of China’s healthcare industry.
In order to make these business opportunities visible, an IT exhibition with the
theme of “Where is the healthcare industry leading us” will be held. The whole
venue will be divided into four parts, including a display corridor, exhibition
booths, a lecture hall and a lounge. Manufacturers and developers of these
technologies will be invited to give better information about the technologies
related to digital platforms.
The first area that visitors could see upon entering the exhibition is a corridor
used to display. Along the way, there will be three themes introduced by
providing various videos, pictures and news. The first theme is about existing
problems, hot spots, pain points as well as the state of the healthcare business.
By this, visitors will be aware of the seriousness of these problems and the
urgency of solving them. Next, a brief introduction about how digital platforms
empower healthcare businesses in China will be given to enable visitors to have
a basic understanding of the theme of the exhibition. Finally, a layout of the
exhibition and an introduction about our company will be presented on the wall.
In the next part, some exhibition booths will be provided. To be more realistic and
practical, these booths will mainly focus on the diabetes business which is an
important issue in the healthcare business. In each booth, different business

opportunities will be explained. In the center of the exhibition booth, visitors can
gain the most basic knowledge through carefully crafted, easy-to-understand
videos. On the left side of the video, there will be an introduction of which brings
kinds of business opportunities that could be solved by this technology, some
basic content, functions, and usage. There will have two professionals who give
explanations and answer questions. In this process, visitors will deeply recognize
and discover these business opportunities. The high-quality content and services
will make them trust in our company and enhance reputation. Therefore, more
business investors or startups are willing to consult with us in the future. To the
right of the video, there will be a working table. If it is an electronic platform
technology used on the computer, such as medical data acquisition system,
there will provide computers for visitors to experience with professional
guidance. If it's something specific, like a wearable bluetooth-enabled blood
glucose meter, then visitors can try it. Through color, video, sound and other
exhibition environments to create a consistent expression and theme of the
atmosphere, to provide an immersive experience, so that visitors and the
exhibition can two-way construction, mutual benefit and mutual well-being (Yi,
2021). This could fully let them see and truly experience the existence of
business opportunities. Touchable screens could also be provided for tourists to
operate and enhance interaction. To the right of the video, there will be a
working table. If it is an electronic platform technology used on the computer,
such as Medical Data Acquisition System, we will provide computers for visitor to
experience with professional guidance. If it's something specific, like a wearable
Bluetooth-Enabled Blood Glucose meter, that visitor can try it. This could fully let
them see and truly experience the existence of business opportunities. Touchable
screens could also be provided for tourists to operate and enhance interaction.
The third part is lectures provided by professionals such as participating

exhibitors and government officials. At a fixed scheduled time, there will be 6
lectures each day to give lectures about how to better seize business
opportunities through electronic platforms. At the end of the session,
professionals will answer questions or give further explanations. At the same
time, the lecture can overcome and make up for the shortcomings of the
exhibition through the speaker's detailed and vivid explanation of the exhibition
content, so that the audience has a more comprehensive and profound
understanding of the exhibition content effectively (Wen, 2016).
Fourthly, visitors could have a rest or communicate in the lounge composed of
separate small rooms after they finish the visit. Drinks and snacks will be
provided for free. This is a good place for visitors to meet and interact with
manufacturers or potential business partners and interact with other experts in
the field. As a result, they can become more confident and knowledgeable about
building new businesses and investing in business opportunities.
Before the visitors leave the exhibition, they will receive a tote bag. Business
cards of company and brochures summarizing the business opportunities of the
whole exhibition are included in it so that visitors will have a deeper impression
of the entire exhibition and could contact us in the future if they need our
consulting services. Moreover, visitors’ contact information, either a business
card or staff recording, would be asked, which may increase the chances of
success by calling and asking if they need consulting in the future. Finally, if
visitors are willing to fill in the feedback form, they will get customized umbrellas
with the company's logo and contact information printed. Since the exhibition
will last for two weeks, these feedbacks will help us adjust in time and effectively
improve the customer experience, deepen their impression of our exhibition and
improve the reputation of our company.

As is mentioned in lecture 4, two-thirds of the decisions that customers make are
determined by the quality of their experience throughout the journey. In the
advertisement section, three steps including increasing potential customers’
interest and awareness, improving findability and getting a good reputation will
be had to maximize the quality of the customer journey.
First, an online website for IT Exhibition will be built and be promoted through
Baidu, Sohu and Alibaba, as the online website is one of the most common and
important media platforms which has a strong advantage in authority and
accuracy (Ye, 2017). Through big data calculation and analysis, the
advertisement can be accurately pushed to potential customers. This effectively
increases the interest and awareness of customers towards our IT exhibition.
Moreover, there will be a visitor registration service on the exhibition website.
Those who want to visit the exhibition can get more information about the
exhibition and invitation letters through online registration. It's a great way to
show respect to our potential customers, make them feel valued, and increase
their goodwill which could make us a close relationship.
Second, a Weibo account will be created to offer the newest information and
improve findability. At present, Weibo is a new media application with the largest
number of group participation, hottest topics, and the most real-time information
search on the Internet, which has strong advantages in media function and could
make information more effectively transmitted to the target audience (Xu, 2020).
Meanwhile, some comments or questions without the limitation of time and place
can be replied to in a digital way. Hence, potential customers will be effectively
interacted with and connected (Xu, 2020). By increasing the number of
discussion topics and related posts on Weibo, the richness and accuracy of

retrieval are enhanced. Additionally, we can cooperate with some celebrities in
the healthcare and investment area and use their influence to promote us.
Cooperating with them is more effective in getting information about our
proposals and IT exhibitions to potential customers, thereby increasing the
probability of success (Xu, 2020). This could also improve findability by
promoting to more people. Information can be collected quantitatively by
checking the clicks, interactions of comments and forwarding volume of
microblog posts, to predict the effectiveness of promotion, thus facilitating timely
feedback and improving decision-making
Lastly, we would like to improve our reputation by making full use of news
coverage, such as providing press releases to the media through the exhibition,
or directly inviting journalists to do promotional coverage for them days before
the IT exhibition and at the beginning of the exhibition, which has a low cost and
high benefit (Liu and Wang, 2004). This channel is authoritative and professional,
which will give us a good reputation. We could effectively promote the IT
exhibition to some professional managers and participants in the diabetes
healthcare field by our reported good reputation and improve the customer
journey.
In conclusion, this essay has explored the business opportunities arising from the
application of digital platforms in the healthcare industry from three different
perspectives and has planned a practical IT exhibition. The essay shows that
users’ acceptance of digital platforms and willingness to pay for high-quality
medical resources has continued to increase; suppliers have the power to
provide high-quality services and make profits; the government has issued a
number of policies to promote the development of the platform. Therefore, it is
recommended to invest in electronic platforms in China's healthcare sector.

However, investors should pay attention to the negative impact of the platform
before investing and try to circumvent or further explore possible solutions.
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