Image credit: Courtesy of Dharminder Biharie
We spoke with Dharminder Biharie, owner of BizzModell, to discuss the need for healthcare companies to continuously respond to relevant technological and market developments.
Can you tell us about your background?
I work for a large US corporate and have my own business as a business designer. My experience is working internationally. I had several assignments for Scandinavia and Germany. Currently, I run my own business called BizzModell.
How did you get interested in business models?
I followed a masterclass at Strategyzer of a business model and Value proposition design in Berlin in September 2016. I got so enthusiastic that my coach suggested that I give it a try. Guess what? It worked. In February 2019, I took a boot camp SPRINT with Jake Knapp, an ex-Google ventures SPRINT designer. The reality is: I am too curious; business models always have my attention.
What prompted you to start Bizz Modell?
I worked on a project in Germany and started to use the models I learned, which eventually showed me why applying visual canvasses is so compelling. I saw many companies struggling with old-fashioned business planning. Create a product, form a team, fill in the position, apply marketing, and sell a lot. However, what do you do if the product or service does not add Value? Here is where BizzModell adds Value. Save time, money, and unnecessary waste in all the processes.
In your opinion, what are some of the key challenges companies face when defining their business models?
What are the jobs that need to be done? How are you going to test and validate? In many processes, we talk about the customer. However, the reality is that many times the customer is not always the user. So instead of talking about customers, speak with the end user. There will be challenges in company culture, HR, finance, legal, and maybe IT. All are part of the business design methodology. Looking at Healthcare, we see the shift from payers and providers from considering only costs to look also into Value and benefits of medical technologies.
What are some of the consequences of this shift towards Value-Based Healthcare to medical technology companies?
Healthcare is created for curing. VBHC should shift to prevention. We will have DNA databases and Artificial Intelligence that can help us. You have seen nothing yet if we break the barriers of ethics, legal, and honest usage of AI and DNA material. There will be more hurdles, but hey, we landed a human on the moon. So imagine what we can achieve on earth!
How much is it necessary for a medical technology company to understand the business models of their clients, such as hospitals?
It is crucial. If you don’t know the KPI (Key Performance Metrics) and SLA (service-level agreement) of your client's customer, your performance will be weak by default. By understanding the position where you are in your customer’s business model, you are aware of your place in the framework and the contribution that you can deliver. Otherwise, your input is only price over time, since the commodity trap is never far away. If you do understand the business model of your clients, your contribution can have a stronger effect on the customer (hospital) and the user (patient). The dynamics of your business and product or service will change.
Can you give a few strategic recommendations for companies struggling to define the Value of their products and communicate it to the market?
Get out of the building to understand what customers, clients, and users do with your product or service. I call it a customer safari. Once you know this, try to translate this to the Value you offer. Personal interviews are helpful to understand the dynamics of the customer or the user. A tip: it is 18-degrees Celsius outside. What will you wear today? Ask the same question in the spring and autumn. You will get two answers, but the temperature is still the same. The environment is very critical to what people answer.
Looking ahead, how do you see your collaboration with ValueConnected?
I am very positive about our collaboration. ValueConnected can bring in all the knowledge that needs to make the transformation towards Value-Based Healthcare. BizzModell can bring in all the expertise of business model and Value propositions design. Together, we can address the three components of businesses: operations, management, and strategy.