Digital Transformation Impacts: Privia Health Care Business Analysis

This report provides an in-depth analysis of the impact of digital technology on Privia Health Care, a startup company offering healthcare services. The study begins with an executive summary highlighting the role of technology in the business landscape and the need for digital transformation. It includes a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats, considering both digital and non-digital factors. The report examines the challenges posed by changing consumer needs, competition, and the costs associated with new technologies. It also outlines the company's future prospects, focusing on a digital transformation model that includes cost reduction, digital payment systems, and an online platform for customer engagement. The business model is analyzed using Porter’s Five Forces, and recommendations are made to leverage digital advancements for business expansion and improved customer service. The report concludes that digital transformation is crucial for Privia Health Care's growth, with the strategic selection of technology being key to its success.

Running head: IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Name of the Student:
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Author Note:

1IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Executive Summery
The use of technology in the business growth changes the nature of competition of the
market. The use of advanced technology helps the business organizations to improve their
services and infrastructures. Privia Health Care is an organization that provides different
types of services regarding the health care. The company is a startup company and
experiencing a fast growth. This paper deals with the analysis of the opportunities or the
challenges that Privia Health Care can face in the time of digital improvement and digital
transformation. In order to determine the challenges and opportunities of the digital
transformation the SWOT analysis of the company is done. Challenges can be both digital
and non digital. This analysis helps to detect the market position of the company and
indicates its competitors. Required improvement area is indentified after doing this analysis.
This also deals with the customer review of the company and requirement of the customers.
Depending on the analysis certain assumption is made about the future aspects of the
company. The details about the improvement of the service and the organization along with
the impacts on its customers are reviewed. Certain recommendations are made on the basis of
the review. The area where digital transformation can be made are identified along with that
the selection of the type of technology is decided. It can be said from the study of the case
that digital transformation of Privia Health Care is beneficial for the growth of the company
and selection of right technology can help the company to expand its business.

2IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Strength :................................................................................................................................4
Weakness:..............................................................................................................................4
Opportunities:.........................................................................................................................4
Threats (Challenges)..............................................................................................................5
Impacts of challenges in present business scenario:..............................................................6
Future Prospects of the company:..........................................................................................7
Business Model of Privia Health Care and its response to the digital transformation:..........9
Recommendations:.................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Introduction
Digitization of the business has become a popular practice. Privia Health Care is a
startup company that provides health care services. The company started its journey on
2009.The company was started by a group of three friends. Initially Privia Health Care was
providing services to the well beings of newborn and their mother, but after 2 years the
company started to expand its business. Expansion of business enables the organization to
provide variety of services related to the healthcare. Presently Privia Health Care provides
services in different parts of the country. The types of service includes providing in-house
attendant or nurse, doctor visit, physiotherapy, care of mother and new born baby, and lab
tests for diagnosis .The main objective of this health care organization is to provide and bring
the world class health care service to the house of the patient. This initiative of the
organization is getting a good response as many of the patients are unable to go to the
hospital for checkups and many of them need customized way of health care (Lynch et al.
2014). The company has captured this need of the health care segment which has become a
positive influence for the growth of the company. Privia Health Care is expanding its
business for that it needs to expand its network in the health care industry and recruit more
employees. In order to do this efficiently the company is planning to introduce digital
advancement in the infrastructure of the organization.
Discussion
Privia Health Care is successfully running its business. Currently the company is
thinking to expand its business by opening new branches and adding more services. In order
to do this the company needs more publicity and expansion of their network in the health care
segment(Westerman, and Bonnet 2015). This will help to reach them to more consumers and
the strong network will help them to tie up with renowned doctors and hospitals. In this

4IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
situation Privia Health Care is planning to transfer their business to a digital interface. The
analysis of the current position of the company can be done through SWOT analysis.
Strength:
Unique Business Idea: The business idea of Privia Health Care is itself a unique idea.
Providing health care services at the patient’s home is unusual. However this business idea
works for the Privia Health Care. Many of the patients are not able to go to the hospitals or
clinics for the checkups or visiting doctors. These patients are the major consumer of the
services provided by the Privia Health Care.
Weakness:
There are not so many weaknesses that can be attributed to the company. However
with the expansion of the demand of service and the business the company has not expanded
in that way (Shivakumar 2018). The company has not required number of branches in
different parts of the country. The price of some of its services are bit costly which may work
as a barrier for the common people to avail the services.
Opportunities:
New Customers: Privia Health Care has good review for their services. The good
will of the company indirectly helps to gain the publicity (Tresp et al.2016). The positive
publicity of the Privia Health Care helps to gain the company a bunch of new potential
customers. The improved service and the customer review help the company to identify the
required modification of the services if needed.
Innovation of new technologies: The advancement of the technology enables the use
of advance digital technique in the field of health care services (Dimitrov 2016). Privia
Health Care is adopting the latest technology in order to provide a better service. It helps to

5IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
co-ordinate the company with the customers more effectively and also it helps to provide
more accurate lab reports.
Threats (Challenges)
Change in need of consumers (Non-Digital Factor): Presenting health care
solutions at the hose of the patient is appreciated and accepted by largely by the people. The
needs of consumers are changing day by day. Presently people need more customized
services and they are also concerned about their security (Piccinini, Gregory and Kolbe
2015). Patients are asking for healthcare services along with personal care also. The
challenge, Privia Health Care facing is the merging the professionalism and personal caring
giving. The service givers are needed to be extremely professional in their work along with
that they are needed to handle the patient with care so that the patient can feel homely.
Presence of New Competitors (Non-Digital Factors): Presently there are some
companies present in the market and they are following the business idea of the Privia Health
Care. The presence of other health care service providing companies is making the market
competitive for the Privia Health Care. The other companies are making attractive offers to
the customers by lowering down the prices of services and providing other services that are
not given by the Privia Health Care. In this case company needs to analyze the current
business position in the market and after that consumer’s needs are needed to be understood.
This can be done by conducting a survey among the consumers. According to that the
required improvement can be made.
Increasing cost of new technology (Digital factor): Use of advanced technology and
its implementation is expensive for the company, but it is necessary in order to improve level
of service (Pagani and Pardo 2017). The company is spending much money for digital
improvement. This extra expense forces company to add some extra price for the services in

6IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
order to maintain minimum profit. This addition of cost is making the services of Privia
Health Care a bit expensive compared to the services from the other companies. Many
customers in this case can go for the companies providing the same service in lower cost.
This can cause the loss of some customer base of Privia Health Care.
Impacts of challenges in present business scenario:
Change in the need: The need of customer is changing and Privia Health Care is
aware of it. The change in the need of the customer can become an opportunity as it can give
the company a better business idea (Peters et al. 2016). The company has conducted a survey
among the customers about the review of the service and understands the gap between
requirement and the service. It has been found out that the customers are asking more of their
involvement in the entire service providing process. They want to be aware of what type of
products Company is using while giving the service and its way of working.
Future Prospects of the company:
Depending on the future aspects of the company the new model for the digital
transformation can be deployed (Lupton 2014). Digital disruption plays an important role in
determining the future prospects of the company. The main digital disruption can be loss of
jobs of workers but in case of Privia Health Care the digital disruption is transformative.
The digital transformation of the business model of the company will provide certain
benefits such as;
 Cost reduction
 Digital exchange of payments.
 Transparency in pricing
 Providing online platform for reaching to the customers.

7IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Presently the company has partially adopted the use of digital interface in some cases but
in future it is planning for digital transformation of the whole business model (Westerman
and Bonne 2015). The company is using digital interface in primary level of communication.
It has implemented automated voice machine in case if there is o one to answer the call of the
consumers.
The company is planning to use digital interface both for promoting the business and
improvement of the business. The management of the critical operations can be done by
automated machines. Moreover booking an appointment, or making a payment can be done
by digitally operated system. In case of operating different systems in the organization IoT
(Internet of Things) can be used (Wang, Kung and Byrd 2018). Fetching the important data
regarding the patient and the organization and maintaining the system record can be done by
systems those are based on Artificial intelligence software (Schwertner 2017). In order to
reduce the system overhead the storage of data can be done in internet cloud. These steps will
help to reduce the maintenance cost of the company.
The digital transformation of the company can be viewed as the well managed interface
between the provider, digital interface and the customers of the company (Hellbe and Leung
2015). It will help the company to implement an on-demand platform (Phillips and Merrill
2015). This on-demand platform of the service will help to improve the experience of
customers and will help to manage supply demand system.

8IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Figure 1:Model for digital transformation
(Source: Created by Author)
Business Model of Privia Health Care and its response to the digital transformation:
The disruption due to the digital transformation in case of Privia Health Care is
transformative. Due to the digital transformation Privia Health Care may need fewer workers
for the operation but the digital transformation enables new business opportunities for the
individuals as people can avail franchise of Privia Health Care and can build their own
business with collaboration of the company. The business strategy in case of digital
transformation can be analyzed using Porter’s Five Forces model in industry level view .
Competitive Rivalry: Privia Health Care has certain numbers of competitors. Based
on the market situation Privia Health Care is in the best position(Lynch et al. 2014). However
the other companies are also improving their service and taking smart strategies to attract
consumers. Privia Health Care needs to take some initiative that will make a difference
between service given by other companies and Privia Health Care.

9IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Threat from new entrants: Initially there was no competitor of Privia Health Care
but now some companies have followed its path of doing business (Michie et al. 2017).
Company is aware of its competitors. There are certain areas which gives other companies
giving advantage over Privia Health Care (Smorodin et al. 2017). Cost is one of the major
factors among them. The company is using analytical tools and digital interface in order to
reduce production and administrative cost. The company is doing publicity in its favor and it
has taken initiative to differentiate their services with the services from other companies.
Threat from substitute: Presently there is no substitute of the types of the service
Privia Health Care is providing (Matt, Hess and Benlian 2015). However certain digital
improvisation can be made in different fields which can make the services different from the
present services.
Bargaining Power of Suppliers: The other competitors of Privia Health Care are
lowering down the price of services (Demirkan, Spohrer and Welser 2016). Privia Health
Care believes in the quality of the service. In this case the main challenge of the company is
to minimize the cost of service maintaining the quality service as well as profit margin.
Bargaining Power of Customers: Initially there was no competitor of Privia Health
Care. In that case the company was the only option for the customers to avail special type of
health service (Wang, Kung and Byrd 2018). Presently there are other organizations
providing same kind of service so consumers have many choices to choose. Customer choice
plays an important factor for Privia Health Care.
Factors Level of Priority
Threat from new entrants High
Threat from substitute Medium
Bargaining Power of Suppliers Low

10IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
Bargaining Power of Customers High
Competitive Rivalry Medium
Table 1: Factors and their priority
Recommendations:
The response of the Privia Health Care in case of digital transformation is positive. In the
long run the company is aiming a digital transfer of the whole organizational function
structure. Regarding this some recommendations can be made:
 Company is planning to transfer the storage system to the cloud storage. In this case
hybrid cloud storage can be used.
 Privia Health Care can launch an application which will contain all the information
about the company and also enables the user to book an appointment.
 Maintenance of certain machines like X-ray machine or MRI machines can be done
by the IoT.
Conclusion
It can be concluded that Privia Health Care has occupied the major segment of the
health care giving service market. Market change is a constant thing and in order to maintain
a smart competition with the other organizations Privia Health Care needs to adopt the new
technology in the field of health care. This will help to make a good will for the company
and this good impact will help to expand the business of Privia Health Care in a long run.
Recommendations are made based on the implementations and impacts of using digital
technology in the Privia Health Care.

11IMPACTS OF DIGITAL TECHNOLOGY IN ORGANIZATION
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