Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?

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Insights Blog

Consider how the different groups of players in the healthcare system are connected to one another:

hc game

Healthcare Industry Trends

Trends in society and in the healthcare industry over time have led to 

  • Increases in medical information 
  • Increases in numbers and specialties of service providers
  • Increases in numbers of available medical devices and pharmaceuticals
  • Increases in malpractice attorneys and healthcare regulations
  • Consolidation of payers
  • Consolidation of providers
  • Increases in consumer access to healthcare insurance
  • Increases in incidences of chronic disease in consumers

All these trends in the healthcare industry have led all the different sets of players to become more interconnected to one another in their actions and payoffs. As players become more interconnected, small changes to one piece of the system increasingly ripple through and affect all other parts of the system. In other words, you cannot change one part of a system without that change rippling through and causing changes in other parts of the system.

The healthcare system has become an intricately interconnected web of players. Furthermore, each player acts in seemingly perverse ways — given his particular set of incentives — to optimize his payoffs. Actions in one of the system lead to unexpected outcomes in other parts of the system.

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