mHealth Israel_Research2Guidance_presentation by Ralf-Gordon Jahns_Dec 2014

15th of December 2014

Successful mHealth App Publishing

mHealth Summit Israel 2014

2© research2guidance 2014

RESEARCH2GUIDANCE: OUR FOOTPRINT IN THE MHEALTH APP MARKET

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Successful mHealth AppsPublishing

1. Make sure your app is state of theart

2. Get your users locked in

3. Find the right role

4. Find the right business model


Diagnostic0.4%

Patient health record0.5%

Remote consultation0.7%

Logistical and payments1.4%

Measurement1.4%

Reminders and alerts1.6%

Calculator1.6%

Nutrition1.6%

Misplaced1.7%Other

1.9%Mental health

4.1%Continuing medical

education tools7.6%

Women8.7%

Wellness10.1%

Medical condition management

12.9%

Fitness20.2%

Medical reference23.7%

TO SUCCESSFULLY LAUNCH A MHEALTH APP HAS BECOME A CHALLENGING

TASK

> 100k mHealth

apps

Source: research2guidance. Top 200 listed mHealth apps on Apple App Store and Google Play of categories health& fitness and medical. August 2014, n= 1,600

Share of app categories in

Apple App Store and

Google Play


AS A CONSEQUENCE APPS ARE NOT VISIBLE AND DON’T GET DOWNLOADED

Source:The mHealth App Developer Economics 2014, 2,032

< 5,000, 61.3%

5,001 - 50,000, 21.3%

50,001 - 100,000, 6.0%

100,001 -250,000, 3.4%

250,001 -500,000, 2.9%

> 500,000, 5.2%

Publisher’s yearly

downloads all mHealth

apps/platforms


NEW APPS HAVE TO MATCH CURRENT STATE OF THE ART

Most healthcare apps are predictable, incremental solutions to what already exists on the

web, with poor usability and value back to the stakeholders…

Educational

Basic Tools

Tracking

Coaching & connected


Sensors

THE COMPONENTS OF A STATE OF THE ART MHEALTH APP

Track & coach

Save mHealth dataConsult

remotely

Apps & SDKs

Integrate

Sensors

Automateinput

• Health plan• EHR• Physician

dashboard

Community

Sensors SensorsEngaging & beautiful

1

5

43

2


WITH INCREASING COMPETITION UNDERSTAND THE VALUE OF RETAINED

APP USERS BECOMES KEY FOR SUCCESS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8 9 10

Sensor Usage Apps > 50% MAU Apps > 75% MAU

Source: Endeavour Partners, 9/2013 in USA and Flurry, 2/2014, n= 26,176 apps

Decay of sensor users and apps used after first use/MAU peak over months

Apps used by >75%

Months

Sensor usage

Apps used by >50%

100,000 -10% -0.5m USD

$

Example: 3,99 USD monthly sub for health coaching


THERE ARE MANY TECHNIQUES THAT SUPPORT USER RETENTION BUT NO

SILVER BULLIT

Dialog withdoctors

Peer monitoring

Personalizedmessages

Economic incentives

Dashboards & selfmanagement

User-generatedcontent

Gamification

Ease of implementationDifficult Medium Easy

Po

ten

tial

imp

act

on

b

eh

avio

rLo

wM

ediu

m

Hig

h

Intervention techniques (impact on behavior and ease of implementation)

Reminders

Socialmonitoring

Education and motivation

Source: The Wireless Innovation Council and Mobiquity 2014, research2guidance


App portfolio size, performance and target group by company

Source: research2guidance

MAYBE APP PUBLISHER IS NOT THE BEST ROLE FOR SOME OF THE PLAYERS

Share of app targetedprivate users

0%-20% 21%-40% 41%-60% 61%-80% 81%-100%

Below average Above average No. of apps

Below average

Above average

No. of downloads

Downloads: All time downloads of all apps in the app portfolio of the company; No. of apps: All apps listed on Apple App Store andGoogle Play September 2014 of a company

NicheStill Trying

First Success

Example Pharma


App User

Apps /PHR SensorsAA

Health API Aggregator

HealthSDKs

App aggregator

Technology HealthData

Storage

Regulations

Hospitals Health databases Food databasesInsurances / Universities

THERE ARE OTHER ROLES THAT MIGHT FIT BETTER IN THE CONNECTED

MHEALTH APP ECO SYSTEM

/ /

ConnectedElite

Enablers

Data layer

HealthDevice

Connectors


TODAY MOST OF MHEALTH APP PUBLISHERS DON‘T MAKE MONEY

No revenues,

46%below

10,000 $, 22%

10,001 $ to 50,000 $, 9%

50,001 $ to 100,000 $, 8%

100,001 $ to 1,000,000 $, 9%

1,000,001 $ to 5,000,000 $, 4%

above 10,000,000 $, 0%

Share of app publishers by yearly mHealth app revenue

Source:The mHealth App Developer Economics 2014, 2,032

$


MHEALTH WILL NOT BE AN APP DOWNLOAD REVENUE, ADVERTISEMENT

AND TRANSACTION PLAY

Global mHealth market revenue in USD in 2017

Source: research2guidance, mHealth App Market Report 2013-2017, WHO

Services69%

Device sales21%

Paid downloads

5%

Transaction4%

Advertisement 1%

2017$26bn

Healthcarespending

>$ 6 trillion

mHealth apprevenue

0,03%

mHealth app market share of total healthcarespending in 2014


MHEALTH APPS WILL HAVE THE BIGGEST COST BENEFIT ON NON-ADHERENCE

AND HOSPITAL READMISSION

35.7%

31.4%

24.2%

19.9%

17.5%

15.8%

2.3%

Reduce costs of patients non-adherence to a medicaltreatment

Reduce costs for hospital readmission and duration ofstay

Reduce doctors visits costs

Reduce prevention cost

Reduce redundant examinations and medication costs

Reduce investment in expensive technologies

Reduce medical trial cost

Reduce labor costs

Others

Biggest positive impact on healthcare cost drivers

Source: reserch2guidance mHealth App Developer Economics survey 2014, n= 2032

55,7%

55,4%


H2 TO MAKE MONEY: THE TOP 3 BUSINESS MODELS 2017/2020. MHEALTH DATA WILL BE THE ENABLER

Cost reduction

Medopad• Hospital solution• Reduced readmission,

repeat diagnostics, lenghts of stay

Service

MyFitnessCompanion• Patient solution for

health tracking.• Switched from on time

payment to 3,99 USD/m r 29,99 USD/y

Hardware

Jawbone• Fitness tracking devices

and accessories• Starting from 9,99 EUR

Sell efficiency gains Sell value added service Sell devices

2017

2020

$

$ $ $

$ $

$

$ $

$ $

$

Source: research2guidance

Pay per download, advertisement and transaction will not belong to the top 3 business models


And…

„In 20 years, mHealth apps will be thenormal way of managing health.“

Survey participant

How do we manage the meantime?Let us connect.


THANK YOU

Ralf-Gordon Jahns

Contact:

[email protected]

Phone: +49 (0)30 609 89 3360

www.mHealthEconomics.com