The promise of Healthcare Transformation through digital technology is exciting but full of uncertainty. I predict that analytics will be most valued by the companies that pay for healthcare costs, rather than by the individuals who stand to benefit.
Verisk sells analytics products and services to companies to help these insurance payers and buyers minimize uncertainty, understand risks, and reduce costs. This focus allows Verisk Health to enjoy many strategic advantages but they face a threat of new entrants from start-ups who could pool and aggregate EMRs based on customers’ opt-in. Another threat is that when EMRs become ubiquitous, positive demand-side network effects could disrupt Verisk’s position.
Verisk should push the edge to the consumer to deepen lock-in with current customers and create value for new customers. Rather than marketing their product to consumers, Verisk would offer added B2C functionality through B2B clients. By adding this new value, Verisk’s clients’ patients and employees would demand continued service with Verisk.