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March 9th, 2006 Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms Responding to a New Generation of Home Healthcare Needs & Consumers TIAX LLC 15 Acorn Park Cambridge, MA 02140-2390 www. TIAXLLC .com © 2006 TIAX LLC Presentation to:

March 9th, 2006 Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms Responding to a New Generation of Home Healthcare Needs & Consumers

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Page 1: March 9th, 2006 Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms Responding to a New Generation of Home Healthcare Needs & Consumers

March 9th, 2006

Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms

Responding to a New Generation of Home Healthcare Needs & Consumers

TIAX LLC15 Acorn Park

Cambridge, MA02140-2390

www.TIAXLLC.com

© 2006 TIAX LLC

Presentation to:

Page 2: March 9th, 2006 Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms Responding to a New Generation of Home Healthcare Needs & Consumers

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There are many forces in place that are driving the shift of healthcare from a clinical (“Professional”) setting to the home (“Consumer”) setting

Next Generation Home Healthcare Needs & Consumers

Safety and Security

Concerns

Social Connectedness (“Wired” Home)

WellnessConcerns

Leisure(Time Poor)

Convenience(Attention Poor)

Mobile - Wireless

Tech

Decreasingnumber of

nurses

AgingPopulation

Increasing Trend of Earlier Discharge

Obesity “disease” Epidemic

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The scope of the existing consumer impact is vast and growing:

• ~ 22.4 million US households (23%) care for a spouse, relative, or other person older than age 501.

• ~ $192 Billion in “free” care is delivered each year - about double the size of the medical device market in 2004. Many caregivers report performing these jobs poorly.

• ~ 82% of mid-life and older Americans prefer not to move from home if they need help caring for themselves2

1 1997 National Family Caregiver Survey

2 AARP survey

Next Generation Home Healthcare Needs & Consumers

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Hypothesis: Success in the home healthcare market will require a blend of two different worlds.

Next Generation Home Healthcare Needs & Consumers

Professional … Consumer …

• Devices require training of skilled professionals

• Time and training pressures demand intuitiveintuitive operation

• Costs are dictated by reimbursement

• Self-pay dictates clear consumer consumer valuevalue to motivate purchase & use

• Cost drivers require leverageleverage• Special purpose devices

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Leverage: Cost drivers can be addressed by leveraging existing infrastructure

Next Generation Home Healthcare Needs & Consumers

Example: Entertainment for kids that encourages aerobic activity

• Physiological monitoring• Encourages aerobic

activity• Physical rehabilitation

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Intuitive Use: Consumers have little tolerance for new products that don’t naturally adapt into an existing life pattern

Next Generation Home Healthcare Needs & Consumers

Technologies must seamlessly integrate with existing residential infrastructure

• Entertainment• Reliability• Convenience• Functionality• Ease of Use

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Consumer Value: To ensure compliance and therefore consumer benefit, integration opportunities should be incorporated into everyday activities

Next Generation Home Healthcare Needs & Consumers

• Monitoring Monitoring physiological physiological behavior behavior

• Providing Providing feedback to the feedback to the individual and individual and professionalprofessional

• Impacting the Impacting the “living environ.”“living environ.”

Create value while Create value while also:also:

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How will a “Professionally” oriented organization evolve to meet the demands of consumers better than “Consumer Product” companies”?

Know Consumers & Professionals: Consider the capabilities and limitations of consumers in the context of their homes along with clinical need

– Age

– Chronic conditions

– Training

Leverage the existing consumer infrastructure: “Fitting in” ,not “Adding on”

– Communications

– Entertainment

– Household systems (Kitchen, bathroom, etc.)

Develop an intuitive product: Understand the context of the home environment and the consumer mindset

– Create intuitive interfaces to ensure convenience and use/compliance

– Understand user expectations to drive technical requirements

– Gain consumer insight into the needs for reliability, functionality and usability (ie value vs liability)

Next Generation Home Healthcare Needs & Consumers

Page 9: March 9th, 2006 Tomorrow’s Home Environment: Evolving Product Design & Technology Platforms Responding to a New Generation of Home Healthcare Needs & Consumers

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Next Generation Home Healthcare Needs & Consumers

Thank You

TIAX LLC

15 Acorn Park

Cambridge, MA 02140

John Collins, Ph.D.President

617-498-5854

[email protected]