INNOVATION STRATEGYMATT GYMER

April 20th, 2012

L1 – Progress of Disruptive InnovationPerformance

Time

Most-demanding customers

Least-demanding customers

Perform

ance trajecto

ry of

present technology (d

riven

by susta

ining innovation)

New perform

ance trajecto

ry

of disru

ptive technologies

Performance that customers in themain-stream market can absorb

Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy

Disruptions of Healthcare Professions

Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy

Complexity of diagnosis and treatment

Time

Specialist and su

bspecialist physicians

Primary care and family practice physicians

Performance that patients need or can use

Nurse practitioners

Self-care

Disruption of Healthcare Institutions

Source: Clayton M. Christensen, Richard Bohmer, and John Kenagy

Complexity of diagnosis and treatment

Time

Hospitals

Outpatient clinics and focused-care clinicsPerformance that patients need or can use

In-office care

In-home care

Novant InnovationDNA of Novant Innovation must include capacity for addressing disruptions in health care professions (care) and institutions (business process)

Business Process (i.e. ED)

Remarkable Patient Experience

Depth

Breadth

Distinctive Care at the Bedside

Source: OVO Innovations

Organizational NimblenessDisrupted markets will require Novant managers to exploit old certainties, explore new business models, and execute leadership ambidexterity.

Change

Time

Today

“Anticipated” future

“High Change” future

“Low Change” future

Range of possible futures

Source: OVO Innovations

L2 – Manage as Designer

• Boundary Span• Use of Employee Narratives• Rapid Cycle Development• New Value Creation• Positive ROI

Novant Vision Elements

AffordabilityWe deliver a system of care that provides value, as judged by our patients and their payers. Novant will compare favorably to a similar group of top performing health systems. Our sustained financial strength will allow us to grow strategically and invest to meet the needs of the patients and communities we serve.

QualityPatients receive integrated healthcare services which deliver superior outcomes as measured against national, state and regional benchmarks, peer databases, internal standards, and the patient and family experience. Our system of care incorporates prevention, early detection, treatment and ongoing health across all venues of care. Our public transparency about our outcomes data creates a compelling reason for patients, communities, physicians and employees to affiliate with Novant and choose us for their healthcare needs.

SafetyOur patients are safe and free from harm when they are in our care. Our work environment is one of open communication and timely feedback about the patient’s safety and care experience which is guided by the expectation “First, Do No Harm.”

Novant Vision ElementsEasy for MeWe deliver a convenient and seamless patient and family experience which is accessible and welcoming. Patients understand they are part of a system of care and can describe what is going to happen during their journey and why. Resources and information are readily available and waits are filled in ways that add value to patients and their families.

Voice & ChoicePatients receive all the necessary information to make knowledgeable and confident choices about their health conditions, treatment options and overall well-being. We embrace patients as true partners by valuing their perspectives and engaging them in genuine dialogue.

Authentic Personalized RelationshipsWe know our patients and see healthcare from their shoes. Patients receive personalized care during and beyond their encounters with us, and always from a place of compassion. They truly feel like family and give us their loyalty because of the genuine, meaningful relationships we have built with them.

Mission: Innovation as a Cross-Functional Moderator• Data broker - deep consumer insight & analytics• Technology integrator - value chain• Strategy executor - short/long term P/L clarity• Trust builder - individual voice & meaningful purpose• Designer - business models• Value creator - market making opportunities

Value Creation

- COSTS + VALUE

- VALUE INNOVATION -

ELIMINATE RAISE

Which factors can you eliminate that your industry has long competed on?

Which factors should be raised well above the industry’s standard?

REDUCE CREATE

Which factors should be reduced well below the industry’s standard?

Which factors should be created that the industry has never offered?

- FOUR ACTIONS FRAMEWORK-

Source: Business Model Generation

Automated Idea Generation

Automated idea graduation criteria are completely configurable based on user data and site use patterns

Idea scoring criteria include: vote up/down button, number of comments attached to idea,

Number of subject matter expert reviews of idea, frequency idea is “shared with a friend”

Frequency the idea is opened and viewed, speed at which ideas gather comments, cross market/facility views, overall collaboration is critical

Manual Idea Graduation

Corporate-wide Innovation Challenges feed innovation funnel

Subject matter experts (badge) help shape ideas

Innovation council members score ideas

Executive Team chooses ideas to fund and test

Idea Display

Questions or Comments