IoT, Wearables and mhealth Apps 2020
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1 IoT, Wearables and mhealth Apps 2020 Beyond the Hype Guy Meiri 8 June 2015
2 About Deloitte Deloitte is the brand under which over 200,000 professionals in 48 independent member firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. 2
3 About Deloitte s industry focus Within Deloitte, there are seven global industries practices. Within our industry, LSHC, we operate within two sectors and several subsectors. Industries we serve Consumer Business and Transportation Energy & Resources Financial Services Life Sciences and Health Care Manufacturing Public Sector Technology, Media & Telecommunications Health Care Life Sciences Health Care Payers Health Plans Public Health Care Other Health Insurance Companies Pharmaceutical Benefit Managers (PBMs) Government Health Global Public Health Federal & Military Health State and Local Public Health Health Care Providers Hospitals Academic Medical Organizations Health Systems Home Health Agencies & Long Term Care Outpatient facilities Ambulatory Surgical Centers Practitioners and Physician Groups Life Sciences Medical Device & Diagnostic Manufacturers Medical Equipment & Supplies Pharmaceuticals Biotechnology Service Companies (CROs, CMOs, drug wholesaler) 3
4 Industry insights Developing industry research and collaborating with leading industry organizations to address today s healthcare and life sciences environment Organizations Centers for Health Solutions Differentiators Participation in leading industry organizations Deloitte s U.S. & U.K.-based research organizations addressing health care industry issues Unique service offerings with an industry focus that compliment our practice Thought leadership Surveys, whitepapers, and POVs 4
5 Healthcare IoT and Wearables 2020 A vision for 2020 and Present Indications Ecosystem Components Considerations and Challenges The Way Forward Conclusions 5
6 Wearables and e-health applications in 2020 What the future could look like Wearables provide a comprehensive view of health as well as fitness Interoperable, integrated, engaging, and outcomes focused New physician/ patient partnership is formed Wearables are recommended as part of prevention and wellness protocols Enable more home care alternatives 6 Source: Healthcare and Life Sciences Predictions 2020, A Bold Future? Deloitte Centre for Health Solutions, 2014
7 Revenues (US$ Million) mhealth market expected to grow significantly The global mhealth market is projected to grow significantly (54.9%) through 2018, particularly strong growth is forecast in Europe Global mhealth market revenue (USD Million) Total 2,414 21, CAGR 22,000 20, ,000 16, ROW 14,000 12,000 Asia-Pacific region 10, ,000 Europe 6,000 4,000 2,000-6, North America Source: BCC Research Mobile health technologies and global markets,
8 mhealth is evolving on multiple fronts Precision medicine/ beyond the pill pharma - Pharma companies are using wearable devices to collect patient data to support research and provide a more holistic service to patients. Examples of mhealth initiatives in emerging countries Kenya - mobile health technology has improved antiretroviral medication compliance by 11% Botswana - reduced government response time to malaria outbreaks from four months to three minutes Source: Connected Health, How Digital technology is Transforming Health and Social Care, Deloitte Centre for Health Solutions,
9 Current mhealth apps support a variety of needs Source: Research2guidance, 808 apps frim Apple App Sore, Google Play, Blackberry App World and Windows Phone Store,
10 Beyond the smartphone: the rise of wearables Wearables, or wearable devices, are clothing and accessories incorporating electronic technologies Biosensing wearables Activity trackers Smart watches Smart clothing Patches and tattoos Ingestibles and smart implants 90 million wearable computing devices estimated to have been shipped in 2014, approximately 74 million of which will be biosensing. The goal: accurately monitor and analyze health and fitness activity on a continuous real-time basis Source: Rock Health. The Future of Biosensing Wearables,
11 A variety of wearables used for specific purposes 11 Source: Healthcare and Life Sciences Predictions 2020, A Bold Future? Deloitte Centre for Health Solutions, 2014
12 Examples of devices developed in Israel 12
13 Simple many-in-one devices? 13
14 Healthcare IoT and Wearables 2020 A vision for 2020 and Present Indications Ecosystem Components Considerations and Challenges The Way Forward Conclusions 14
15 The Internet of Things stack Cognitive Action Analytics of Things Data Integration Local Sensing It s not just about the sensors Source: Running on data, Activity trackers and the Internet of Things, Thomas H Davenport and John Lucker, Deloitte Review,
16 Local Sensing M2M the lowest layer Not capable by itself of orchestrating a complex process Considerable variation across devices Functionality (activities, what is measured) Clinical data Cognitive Action Analytics of Things Data Integration Local Sensing Behavioral data (e.g. motion patterns) Environmental data (e.g. air pollution) Data quality and reliability Measurement approach 16
17 Data Integration The local level tracker to smartphone The network level social, HCP, insurance Different types of data, functions & formats Multiple platforms and health tracking apps Standard development is significantly difficult APIs help but cannot span all devices Cognitive Action Analytics of Things Data Integration Local Sensing Regulatory / industry guidance likely to be very lengthy Opportunity for cloud service providers? Some attempts include: Health Vault, Apple Healthkit, PKB, Jawbone 17
18 The Analytics of Things the Mind Anomaly detection is something different today? Comparative usage how am I compared to others who resemble me Understanding patterns and reasons for variation Predictive asset (or body) maintenance Process (behavior) optimization (e.g. when to go to sleep, wake up) Prescription - tell the user what to do ( go running ) Situational awareness - connecting the dots (glucose level + activity level + weight = risk) Cognitive Action Analytics of Things Data Integration Local Sensing data without meaning, without soul, will not move people to change their behaviors over the long time * 18 Janko Roettgers, Stealth startup alert: Skype co-founder ventures into health and wearables with Project Florida, GigaOM, May 13, 2014, <
19 Cognitive Action the Arms & Legs of IoT Doctors monitor patient/wearable generated data Health care provider organizations incorporate into EMR and processes Measurement of patient compliance and usage continuity Researchers - understand the relationship between physical activity and treatment protocols Health insurers - factor physical activity and patient engagement into their pricing and risk models Cognitive Action Analytics of Things Data Integration Local Sensing Governments and insurers - change reimbursement models Improve data security and protection Where we are truly slow as a society is in the human activities that allow IoT-based action 19 Source: Running on data, Activity trackers and the Internet of Things, Thomas H Davenport and John Lucker, Deloitte Review, 2015
20 Healthcare IoT and Wearables 2020 A vision for 2020 and Present Indications Ecosystem Components Considerations and Challenges The Way Forward Conclusions 20
21 Current barriers preventing adoption by HCPs TEC is unreliable and not appropriate for care delivery My patients don t want or need TEC solutions There are 1000s of apps available, how do I choose the most appropriate/ best? Where s the evidence for using TEC solutions? HCPs Whose liable if anything goes wrong with a patient using digital technology? How do I use this technology? There s no protocol or training Is the data trustworthy and how secure is it? Who has to pay for the technology? What the patient can t? The challenge - how can patient/wearable generated data be incorporated cost-effectively and safely into clinical processes? Source: Connected Health, How Digital technology is Transforming Health and Social Care, Deloitte Centre for Health Solutions,
22 Tackling the barriers to the uptake of digital health Patients acceptance of mhealth apps is dependent mostly on the provision of trustworthy and accurate information, and usability Which of the following would convince you to use health apps regularly? (%) Provide trustworthy, accurate information Be easy to use/ simple/ welldesigned Provide guarantees that my personal data is secure Be free Contain no advertisements What is the single most important service you think health apps should provide? (%) Give me understandable info on symptoms/ medical conditions Help me communicate with my doctor/ nurse Allow me to examine my health records/ medical tests online Help me track my medical symptoms Work effectively and consistently over time 44 Help track activities to improve my health, or keep me healthy 13 Not be expensive to buy, and provide value for money 28 Give me understandable info about how to live a healthier life 7 Allow me to network with other people important to me 26 Help me communicate with other people important to me 6 Be packed with detail (I don't mind complex apps) 23 Allow me to comment about, or rate, local healthcare services 3 22 Source: PatientView survey of 1,130 People with a ling term condition 2014, Connected Health, How Digital technology is Transforming Health and Social Care, Deloitte Centre for Health Solutions, 2015
23 Tackling the barriers to the uptake of digital health In 2014 the European commission launched a stakeholder consultation that identified the following barriers to wider digital health adoption Lack of agreed standards for data protection, privacy, and security Concerns over patient safety, quality and liability and need for a clear legal and regulatory framework Difficulties in generating cost effectiveness evidence Lack of interoperability and interoperability standards Barriers to mhealth adoption Inadequate funding or reimbursement models Cultural resistance from healthcare providers 23 Source: Connected Health, How Digital technology is Transforming Health and Social Care, Deloitte Centre for Health Solutions, 2015
24 Healthcare IoT and Wearables 2020 A vision for 2020 and Present Indications Ecosystem Components Considerations and Challenges The Way Forward Conclusions 24
25 Predicting how the market will evolve is challenging 25 Source: Digital Health Hype, Bionicly, 2014
26 Tackling the barriers to the uptake of mhealth Respondents to the European Commission consultation listed a number of actions needed to tackle current barriers to mhealth adoption 1 Improve mhealth privacy and security build users trust by providing: A clear governance structure Patients with control over who sees their data and what it s used for 2 Publish clear guidance containing information on: How new technology needs to be regulated 3 Gather evidence on economic benefit of using mhealth technology and equality of access 4 5 Improve usability of mhealth technology: Involve patients/ carers in design Develop Interoperability capabilities and standards Streamline market access provide clarity on who bears the cost of mhealth solutions and allocate a separate mhealth funding pot/ budget Source: Connected Health, How Digital technology is Transforming Health and Social Care, Deloitte Centre for Health Solutions,
27 Players will need to develop suitable value propositions, incentives and experiences for the various consumer segments Six healthcare consumer segments 27 Source: The four dimensions of effective mhealth, Deloitte Center for Health Solutions, 2014
28 Future solutions would span the spectrum from simple to complex mhealth Such solutions should be able to provide the right responses to various needs of different types of consumers Simple mhealth Complex Single use mhealth Social mhealth Integrated mhealth Complex mhealth Focuses on a single purpose for a single user, typically consumer initiated Draws upon the support, encouragement provided through social networks Links apps and devices with the formal healthcare system s Leverages advanced integrated analytics for decision support Smartphone apps and wearable tech products that support the user to record data which may be communicated to others Consumer driven, focus on wellness, diet and exercise Gamification and competition based apps which encourage users to meet goals Consumers likely to pursue activities independently Mobile technology linking patients and HCPs Tailored to multiple end users: consumers, physicians and administrators Predictive analytics applied to complex data generated through mhealth applications Focus on achieving optimal management of a specific disease. 28 Source: The four dimensions of effective mhealth, Deloitte Center for Health Solutions, 2014
29 Healthcare IoT and Wearables 2020 A vision for 2020 and Present Indications Ecosystem Components Considerations and Challenges The Way Forward Conclusions 29
30 Conclusions Wearables / IoT / mhealth apps will play an important role in tomorrow s healthcare Local sensing is just the first layer; data integration, analytics and cognitive action are required to realize the vision There are a number of key challenges that need to be addressed These challenges include: developing viable business models and financing, interoperability, privacy & security, HCP adoption and process alignment Appropriate governance and clear guidelines will need to be developed Evidence on benefits will need to be gathered Players should develop suitable value propositions, incentives and experiences for the various consumer segments Future solutions would span the spectrum from simple to complex mhealth 30
31 Thank You Contact details: Guy Meiri
32 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) Fax: +44 (0)
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