Analysis of VR and AR Business Model in Healthcare Startup Company

This report presents a comprehensive analysis of incorporating Virtual Reality (VR) and Augmented Reality (AR) into a new healthcare startup. It begins with an executive summary highlighting the potential of AR and VR, followed by an introduction outlining the context. The core of the report utilizes the business model canvas to illustrate the startup's structure, value proposition, key partners, activities, resources, customer segments, distribution channels, and customer relationships. The report then delves into technology analysis and trends within the VR and AR healthcare landscape, emphasizing its application in medical training, patient safety, and various medical disciplines. An alignment of the business model and value proposition is provided, followed by a detailed examination of customer segmentation and the creation of a representative customer journey map. Finally, the report concludes with recommendations for business model innovation and the importance of AR/VR in the healthcare sector. The report emphasizes the importance of strategic market segmentation and provides references to support its findings.

Running head: VR and AR of new startup business 1
Digital innovation
Virtual reality and Augmented reality

VR and AR of new startup business 2
Executive summary
Augmented reality has been considered as the research area for so many years. However,
it has been analyzed that there is no original break through for the applications of commercial.
The reality of Augmented seems like the latest technology for the coming year. A research
moved out to inspection the factor of success for the augmented business models. It is the report
which has been described the business model canvas in the context of Virtual reality along with
augmented reality. Alignment of business model and value proposition has been discussed in this
report I the context of healthcare industry.

VR and AR of new startup business 3
Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Business model canvas in the context of Virtual Reality and Augmented Reality.......................................4
Technology analysis and trends in the context of Virtual Reality and Augmented Reality in the selected
industry........................................................................................................................................................7
Alignment of business model and value proposition...............................................................................7
Recognize the different customer segments.............................................................................................8
Outline a representative customer journey...............................................................................................8
Recommendation and conclusion..............................................................................................................11
References.................................................................................................................................................12

VR and AR of new startup business 4
Introduction
Model of business canvas in the context of Virtual Reality and Augmented Reality
In the context of Start-up Company, the report will present the business model canvas,
augmented reality and virtual reality in the healthcare industry. The industry of healthcare is
evolving and it is not being done by the government interventions. More and more, the industry
of health care is considered by people as a way of life. I have started the company in the same
industry and here is business model canvas in the context of VR and AR will be described.
Augmented reality is a technique that consist a live view regarding virtual computer generated
images in which it is able to generate a real time augmented experience of reality.
Figure 1: Business Model Innovation
Source: (DaSilva & Trkman, 2014).
It is the business model framework which looks at the various implementations for each
of the nine elements with the aim of providing a complete view regarding AR domain. AR/VR

VR and AR of new startup business 5
business model have to be built up from number of implementations regarding nine elements
(Bower, Howe, McCredie, Robinson and Grover, 2014).
Elements Description
Value proposition Our healthcare company will provide number of services and products
that will value for our customers. For AR, it is something like
“integrating virtual information into real world”.
Key partners The partner of our company will enhance the value of our customers.
The key partner of AR applications for our healthcare industry is
technology provider along with infrastructure provider.
Key activities Key activities in the context of AR/VR applications can be developing
new software or techniques so that the patients of our company take
advantage of it. It will facilitate to enhance the value of our customers.
Key resources Our company needs to focus on those resources that are able to
generate the value of the customers. A Device of AR is required
resources through which AR/VR can be perceived.
Customer segments The focus of our healthcare company to plan to enhance into other
medical fields where the need of transfer of medical are required. The
possible applications in the context of AR are board in which any
customer segments will be allowed to apply.

VR and AR of new startup business 6
Distribution channels Distribution channel for our company can be App store or PC software.
Since the applications of AR can be distinguished through the internet.
It will be considered as the most important distribution channel for our
healthcare company.
Customer
relationship
It is required for our company to save the time of or patients as much as
can. AR software is distributed online, that is why the relationship with
customer will be indirect which is not intensive.
Figure 2: Differences between reality and Augmented
Source: (Choi, Jung and Noh, 2015)

VR and AR of new startup business 7
Technology analysis and trends in the context of Virtual Reality and Augmented Reality in
the selected industry
Augmented reality is able to provide contextual learning for medical students as an aid
which facilitates to gain core competencies such as effective teamwork, decision making and
adaption of creativeness of the resources of global (Frenk, et. al., 2010). It provides the
opportunities to being more authentic in the term of technology and market trend. The
technology of AR allows learning in multiple styles. The safety of patients is safeguarded AR is
able to elaborate the complete procedure regarding their safety. It has been analyzed that there
are two systematic review of AR for healthcare industry; one is AR in reformation to enhance the
physical outcome and other is considered on AR tracking techniques. It is required for the
business to apply this technique in its system.
The virtual technology in the healthcare sector is attaining effective interest, with
application possibilities enhancing the diversity of the disciplines of medical such as
rehabilitation, practice psychiatry and medical training. The technology continues to gain
enhanced demand I the form of diagnostic tool in the sector of healthcare in the form of entirely
impassively 3D simulation for clinicians. These tools are being used in the treatment of autism,
anxiety, depression, phobias and in severe pain in burn victims. Furthermore, this technology is
used in the pain which decrease the use of painkillers by using cognitive activity (Fichman, Dos
Santos and Zheng, 2014).
Alignment of business model and value proposition
As per Osterwalder, Pigneur, Bernarda and Smith, (2014), the proposition of value refers
what type of services and products decided application provides. For augmented reality, there are
various kinds of value propositions described. It defines that any application of AR conforms to

VR and AR of new startup business 8
some multiplication of these types. These are the factors to this list changing according to time is
that innovation of business model is the essential factor for the growth of business. There is a
various value proposition type such as cooperation, utility, virtual demo, 3D viral, recognition &
targeting and training (Lemon and Verhoef, 2016). Cooperation is the proposition which applies
to working together with the use of the reality of augmented. For an example meeting where
external participants from outside of hospital can be presented through AR. Utility refers any
application that will be able to provide the relevant information to its users. 3D viral is virtual
advertising as component of the environment. It is the proposition coats advertising in
augmented reality. Recognition and customers are the part of value proposition that applies to
recognize the patients. Training can be improved by using AR. AR can be used to build a
situation that may be impossible to build in real life (Briscoe, 2014). For instance, used of
application to show the procedure of surgery.
Recognize the different customer segments
Market segmentation can be done in the form geographic, demographic, psychological,
psychographic or behavioral in the context of healthcare industry. There are a lot of diseases
around the world. It is required for the hospital to make segments as per patients and doctors.
Strategic market segmentation is important in innovation, discovery and development of
products of medical services. It can be distinguished as per small amount of premium users and
large amount of free users to whom the product will be valuable. In our business, services will be
distinguished such as emergency services and normal services (Akçayır and Akçayır, 2017).

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Outline a representative customer journey
A customer journey map is a way to define the steps of customers in the interest of
product, online experiences, services or any combination. There is a four step to build customer
journey map.
Figure 3: healthcare customer journey mapping
Source: (Barrett, Davidson, Prabhu and Vargo, 2015)
Step 1: Map the starting scenario
The first step of customer journey map is to set the high level of processors. In this part our
industry need to divide each section as per requirement so that confusion cannot crate while
treatment.
Step 2: Add qualitative data

VR and AR of new startup business 10
It is important for our business to know the way of services which is used by our patients. Our
organization will add some additional information such as observation or contextual inquiry
study. It will be helpful to highlight the critical events.
Step 3: add quantitative data
It will be helpful for our business to analyze the attitude of customers by using statistical data. It
will be the survey which facilitates to give the answer of specific questions.
Step 4: final review and clean up
After conducting all research, we will finalize that what would be beneficiary for our business or
what not. With final touching we will remove irrelevant data from our customer mapping
(Anderl, Becker, von Wangenheim and Schumann, 2016).

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Recommendation and conclusion
It has been recommended that the business innovation model should be implemented with
effective manner because the business in health care industry is just started so it will be good for
the business if start up is being done with planning. Business model is the most effective source
which helps to take decision in an organized manner because health care industry is facing
number of challenges. The business should be more attentive in the health and care industry and
it should give proper training by using latest technology such as AR to their employees. AR will
be helpful to give proper definition of certain things which is difficult to show in reality.
It has been recommended that business model innovation has already succeeded in not
only healthcare industry but also in many industries. In this business research, it is found that
AR/VR keeps a lot of importance in the context of healthcare industry. Alignment of business
model in value proposition has been described in effective way. Along with that customer
segmentation for healthcare industry has been elaborated which shows that the business should
focus on current clients and do segment on the basis of emergency case and normal case.

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References
Akçayır, M. and Akçayır, G., 2017, Advantages and challenges associated with augmented
reality for education: A systematic review of the literature, Educational Research Review, 20,
pp.1-11.
Anderl, E., Becker, I., von Wangenheim, F. and Schumann, J.H., 2016, Mapping the customer
journey: Lessons learned from graph-based online attribution modeling, International Journal of
Research in Marketing, 33(3), pp.457-474.
Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015, Service innovation in the digital
age: key contributions and future directions, MIS quarterly, 39(1), pp.135-154.
Bower, M., Howe, C., McCredie, N., Robinson, A. and Grover, D., 2014, Augmented Reality in
education–cases, places and potentials, Educational Media International, 51(1), pp.1-15.
Briscoe, G., 2014, Digital innovation: The hackathon phenomenon.
Choi, S., Jung, K. and Noh, S.D., 2015, Virtual reality applications in manufacturing industries:
Past research, present findings, and future directions, Concurrent Engineering, 23(1), pp.40-63.
DaSilva, C. M., & Trkman, P. 2014, Business model: What it is and what it is not. Long range
planning, 47(6), 379-389.
Fichman, R.G., Dos Santos, B.L. and Zheng, Z.E., 2014, Digital innovation as a fundamental
and powerful concept in the information Systems curriculum. MIS quarterly, 38(2).
Frenk J, Chen L, Bhutta ZA, Cohen J, Crisp N, Evans T, Fineberg H, Garcia P, Ke Y, Kelley P,
Kistnasamy B, Meleis A, Naylor D, Pablos-Mendez A, Reddy S, Scrimshaw S, Sepulveda J,