Establishing a Healthcare Firm: VR/AR Strategy, Cost Analysis, Roadmap

This project outlines the establishment of a healthcare firm in Australia that leverages Virtual Reality (VR) and Augmented Reality (AR) technologies to enhance patient care. The study details the firm's short-term and long-term strategies, including mission, vision, goals, objectives, and tactics. It presents a cost-benefit analysis for both phases, evaluating the financial implications of launching a Minimal Viable Product (MVP) and expanding the business model. The project includes a product roadmap, illustrating the firm's development phases, and explores the integration of VR/AR in patient diagnosis, physical therapy, and pain management. The analysis incorporates hypothesis testing to assess the impact of VR/AR on healthcare outcomes and concludes with recommendations for future market competitiveness and innovation, including patent protection for new technologies.

Organisational Integrations
Assignment 3
Student Name: Student ID:
Subject Name: Subject ID:
Date Due: Professor Name:
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Executive Summary
Multiple technological innovation have impacted healthcare sector in the past and such
innovations continue to impact lives of patients. One of the best possible digital innovation that
has taken place in recent times in the area of healthcare had been in Augmented Reality (AR)
and Virtual Reality (VR). These technological trends are advancing current quality and levels of
healthcare catered to patients. The scope of the current study deals in establishment of a
healthcare firm that makes use of VR and AR related technologies. Various strategies that they
are putting into use as well as their shorter term and long term strategic cost benefit analysis. The
product roadmap is incorporated into the study for greater accomplishments for the firm and then
recommendations are provided for overcoming any challenges or issues existing in the domain of
business.
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Table of Contents
Executive Summary.........................................................................................................................2
1.0 Introduction...........................................................................................................................3
2.0 Strategy......................................................................................................................................5
2.1 Short Term Strategy to launch the MVP and validate the product........................................5
2.1.1 Mission, vision, goals, objectives, strategies and tactics................................................5
2.1.2 Hypothesis.......................................................................................................................6
2.1.3 Cost Benefit Analysis......................................................................................................6
2.2 Longer Term Strategy to iterate the product with additional features and to develop a
viable business model..................................................................................................................7
2.2.1 Mission, Vision, Goals, Objectives, Strategies and Tactics............................................8
2.2.2 Hypothesis.......................................................................................................................9
2.2.3 Cost benefit analysis........................................................................................................9
3.0 Product Roadmap and minimal viable product for Virtual Reality and Augmented Reality. .10
4.0 Integrations of Virtual Reality and Augmented Reality in the selected industry....................11
5.0 Recommendation & Conclusion..............................................................................................12
Reference Lists..............................................................................................................................14
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1.0 Introduction
Healthcare sector is a rapidly developing sector in Australia and integration of Augmented
Reality (AR) along with Virtual Reality (VR) has led to further development (Lee, 2012).
Federal Government in the country are making huge amounts of investment for improving
quality of healthcare by providing benefits of AR and VR. The scope of this current study deals
with establishing a healthcare firm in Sydney in Australia with enabled technology of VR and
AR (Banerjee, 2007).
Figure 1: Healthcare Trends in Australia
Source: (strategyand.pwc, Retrieved on 3rd October 2017)
It has already been diagnosed that VR and AR have huge potential for driving efficient
healthcare practices that can drive quality patient experience. The current business will be
integrating AR and VR related technologies in patient diagnosis (Di Serio, 2013). There are
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multiple impacts that AR and VR related technologies that will be included in product features
for the firm. This study includes short term strategies along with long-term strategies with cost
benefit analysis included.
2.0 Strategy
Several benefits of VR and AR technologies that benefit healthcare in Australia. The firm will
develop strategies for its Minimal Viable Product MVP that matches with business model canvas
(Alaraj, 2013). Short term strategies will aim at a product roadmap that will aim to launch MVP
along with studying the product and establishing its validity while long term strategy will aim at
developing further product features such as to generate a viable business model.
2.1 Short Term Strategy to launch the MVP and validate the product
The newly established firm in the short term will aim at a MVP that is readily acceptable
according to customer demands. Initial strategic fit for the firm will aim at diagnosis for patients,
physical therapy and pain management treatment (Zhu, 2014). The healthcare center will aim to
start-up its business by attracting it customers to only testing, therapy and pain management
procedure. The firm with encompasses on customer demographic, psychographic and geographic
trend have realized that there is a need for testing procedure in the area for AR and VR integrated
instruments. Hence, marketing endeavors of the Company will aim at MVP of lab testing
equipment with latest technology for validating their products (Kilmon, 2010).
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2.1.1 Mission, vision, goals, objectives, strategies and tactics
Mission: The primary mission of the firm will be to cater to highest possible levels in testing
procedures.
Vision: The vision of the firm will be focused on creating an unique interface to provide readily
acceptable and fast paced delivery of medical reports.
Goals: Goals of the Company are focused on creation profitability, employee engagement and
customer engagement.
Objectives: Primary objective for the firm includes VR and AR technologies application in
various medical equipment.
Strategies: Strategies for the firm will be to attract customers towards quality healthcare by
providing them fast paced affordable medical reports.
Tactics: Tactics that will be implemented by the Company will be to develop better digital
impression for medical treatment.
2.1.2 Hypothesis
The study will encompass Null Hypothesis (H0) and Alternate Hypothesis (H1) for establishing
results of the study. Null Hypothesis (H0) in this case will include AR and VR applicability will
not be able to render quality treatment to patient parties. Alternate Hypothesis (H1) will include
VR and AR applicability will affect lives of patients and improve their quality of healthcare
(Yuen, 2011).
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2.1.3 Cost Benefit Analysis
AR and VR techniques integrated into Cost Benefit Analysis for short term purposes for
estimating a proper budget. Benefits with costs for shorter term endeavors are included in this
analysis (Yudkowsky, 2013). A period of 1 year has been estimated as short term for this study
and analysed monthly for assessing outcomes. All the months costs includes costs related
development of MVP.
Month Cost Benefit
January 60,000 300,000
February 70,000 110,000
March 105,000 250,000
April 90,000 450,000
May 50,000 650,000
June 40,000 700,000
July 80,000 500,000
August 110,000 750,000
September 150,000 800,000
October 40,000 360,000
November 70,000 410,000
December 140,000 900,000
Figure 2: Short-term Cost Benefit Analysis
Source: Author
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2.2 Longer Term Strategy to iterate the product with additional features
and to develop a viable business model
Post establishing the business of the firm within 1 year with its strategic fit, the firm will develop
long-term based strategy to iterate products. It will aim at developing additional product features
with which it will be able to develop the business model extension and create viability for it
(Willaert, 2012). Feasibility for the business model will be built by way of integrating more
enhanced technological adaptation. Long-term strategy for the firm will be making use of VR
and AR technologies to not only cater to patient are and therapy but also in integrating
psychology related treatment. This new product extension will allow validating the product and
encompassing more feasibility approach towards its products and the business (Billinghurst,
2012).
2.2.1 Mission, Vision, Goals, Objectives, Strategies and Tactics
Mission: The firm will encompass mission of catering to wholesome patient care in the long
term.
Vision: Vision of the firm will be oriented towards catering to innovative and technologically
advanced healthcare facilities for patient diagnosis.
Goals: The firm will be focused on attaining high levels of complicated products for rendering to
healthcare for patients.
Objectives: The firm’s objective will be focused on creating a sustainable brand name in the
domain of healthcare. Objective for the firm will be to extend AR and VR related application in
patient care.
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Strategies: The firm will be adopting competitive led strategy for extending its core competency.
Strategy for the firm will be to adapt latest medical treatment utilizing VR and AR techniques.
Tactics: The firm will include various tactics in order to deliver medical diagnosis using AR and
VR technology along with providing therapies.
2.2.2 Hypothesis
The study will adopt Null Hypothesis (H0) and Alternate Hypothesis (H1). In the long term the
Null Hypothesis will aim at establishing innovation trends impacting heath care cannot affect
lives of patient care. Alternate Hypothesis will aim at creating greater impacts of innovative
trends in health care for patient care (Kim, 2009).
2.2.3 Cost benefit analysis
In order to integrate innovate trends in the long term for product development using VR and AR
technologies there will be costs associated. The costs against its associated benefits will be
reflected in CBA analysis as depicted below for a five term period, which is considered long
term for this purpose (Botella, 2010).
Month Cost Benefit
Year 1 1,300,000 3,100,000
Year 2 500,000 2,500,000
Year 3 1,800,000 5,000,000
Year 4 600,000 1,500,000
Year 5 1,700,000 7,000,000
Year 6 800,000 5,000,000
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Year 7 2,900,000 9,000,000
Year 8 400,000 1,900,000
Year 9 900,000 3,500,000
Year 10 1,100,000 4,200,000
Figure 3: Long-Term Cost Benefit Analysis
Source: Author
3.0 Product Roadmap and minimal viable product for Virtual Reality and
Augmented Reality
Product Roadmap is critical for success for any product. From starting point of launch of the
product till its delivery process (Hernando, 2009). There are lot of traditional VR and AR
integrated products available in the market, but the firm will aim to produce products that can
render highest possible levels of medical treatment. In the first phase of the product, it will be
designed by innovative product designers and then its market fit will be created. A product that
fits customer demand will find greater success compared to those products that cannot find any
market fit. Frequently the firm will aim at collecting customer related data and then process the
same for higher levels of innovations (Noh, 2009).
Short
Term
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Long
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2018 Q1 Q2 Q3 Q4
Jan Feb Mar Apr
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Mark
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Compet
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Strategi
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Cust
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Anal
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Marketi
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Idea
Buildin
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Figure 4: Product Road Map
Source: Author
In order to cater to greater benefits for patients a therapy product and later a product that can be
used to treat psychological ailments will be established (Scott, 2009). AR and VR in the firm’s
domain can create greater impact on the brand name of the firm and therapy related medical
instruments will help attract broader spectrum of patients.
4.0 Integrations of Virtual Reality and Augmented Reality in the selected
industry
Virtual Reality and Augmented Reality are creating new possibilities in the domain of medical
sciences. AR software that will be used by the firm will be mobile responsive will reduce service
related calls in medical labs. Smart glasses that makes use of VR technologies can enable
technicians in medical profession can bring tremendous benefits n patient care. There are various
companies that are developing machines for providing physical therapy for benefit of patients
(Bohil, 2011). Omnidirectional treadmill is one such instrument that has immense demand in the
market combined with virtual reality headsets can bring about improving patient’s with
Parkinson’s Disease. There are recent trends showing treadmills with VR games that involve
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individuals while working on treadmills. The firm will make provisions such that in-flight
medical emergencies can be managed effectively. AR software are increasingly devised that
allows ER doctor to connect by means of satellite to guide an individual wearing ODG R-7 smart
glasses instruction aid. Pain management treatment is a relatively new idea in Australian
healthcare and creates tremendous impact for burn victims. Through VR techniques the firm will
aim at solving virtual meditative talk. Vibrating footpads along with virtual beach environment
as if an individual is sitting next to an ocean. Testing visual aid devices will further enable more
enhanced treatment to take tests using medical devices.
5.0 Recommendation & Conclusion
The firm will act in an aggressive manner and fashion to create market share to cater to better
standards in patient healthcare. Recommendations for the future for the firm will enable more
competitive building with capacities to extend core competencies such as to create future
sustainable impact.
 The firm will need to design and manufacture it products at a comparatively lower rates,
such that it is ultimately cost affordable in nature. Such cost effective products will attract
greater number of customers.
 The company will need to adopt innovative practices such that it can constantly create
and contribute new products to the market.
 The firm will need to patent all its projects and productions such that it is able to protect
the newly developed technology. Providing patent related rights can let to a stream of
financial benefits for the firm as well.
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