Traditional "pipeline" businesses including startups compete on cost, quality, and market breadth, and try to capture part of the value chain by focusing on economies of scale, unique intellectual property, specialized resources, geographic presence, and brand. They have traditionally used mergers and acquisitions (M&A) to grow and diversify, either as an opportunity (e.g., increase market share) or to mitigate threats (e.g., changing reimbursement models). However, M&A may not always be the best option due to constraints with capital, talent, and organizational structure. Digital health advancements in the past few years have enabled health care organizations to achieve similar ends (growth and diversification) through a newer avenue - platform - enabled business ecosystems - paving the way for transforming traditional business models.
Cross-border business ecosystems like Bio 9 Ventures can bring together diverse participants on an operational network to co-innovate, co-research, co-commercialize, co-marketing and co-partnering in co-creating products and solutions, providing opportunities for wider customer reach, access to new capabilities, expediting time to market and increased revenue.
Various leaders from health care organizations, health tech innovators (startups), and investors, agree that key components of a successful, sustainable platform-enabled business ecosystem will address:
Health care and Life science organizations looking to position themselves for the Future of Health and navigate current forces-such as venture partnering, faster time to market, clinical trials, product validation, value-based care, data liquidity, consumer expectations, digital transformation, and virtual health-should consider convening a platform and/or joining an ecosystem. Organizations should consider the following as they shape their thinking around how to use platforms and ecosystems like that of Bio 9 Ventures: