Wi Fi Personal Health Monitor For The Elderly Economics Essay

Fiscal Implications – The universe recession has had many effects including reduced client disbursement. Swerve analysis every bit good as the complications around IP suggests entry into the UK wellness attention market, chiefly aiming the NHS is the best option.

Aging Population and Increasing Disease Prevalence – Statistics show an aging population and increasing disease prevalence are seting add-on strain on the NHS, tests have shown the usage of telehealth is likely to alleviate this strain.

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Wearable Technology Market Growth – There has been anticipations of rapid market growing, and with the apparatus of the 3millionlives strategy in the UK this is the ideal clip for entry.

To reason ; this appears to be a feasible concern chance ; there are some menaces dependant on market entry nevertheless by avoiding the higher hazard markets and by going established within the newer market early will let for good concern chance.

Word Count – 2448 words

Table of Contentss


Due to assorted alterations in the external environment there is turning strain on the wellness attention market. It is predicted that the telehealth market is to turn quickly within the following few old ages, so with the debut of a Wi-Fi enabled personal wellness proctor into the market it will be possible to profit economically from this growing.

The merchandise will work with either regular or changeless checking of the user ‘s critical marks ( blood force per unit area, bosom rate etc. ) depending on their specific demands, and will besides be wi-fi enabled so that this information can be automatically sent to a professional for analysis.

There are assorted possible markets to come in with the merchandise every bit good as assorted schemes for entry, the first market is the UK health care market which is chiefly dominated by the NHS but besides includes independent health care. The market size for the gross revenues of medical equipment in 2011 is estimated at ?2.57bn ( Key Note, 2012 ) . This value is chiefly taken up by dearly-won equipment such as MRI scanners ; a market value of $ 62.8m is more applicable as this is specific to the UK telehealth market ( Frost & A ; Sullivan, 2013 ) .

Following the set-up of the 3millionlives run this offer a specified market within UK wellness attention. An estimated market size can be made utilizing a retail monetary value of ?50 per unit, and presuming one device was traveling to each of the 3 million participants this represents a market size of ?150m.

Another possible market is the goods retailing market, the estimated market for goods other than pharmaceuticals ( medical goods, decorative and lavatory articles ) in 2011 was ?2.92bn ( rsp ) ( Key Note, 2013 ) .

The cardinal rival to this device is O2 ‘s Health at Home bundle, which offers a subscription telehealth service for a fixed monthly cost. There is no initial cost, and the user is supplied with Bluetooth enabled mensurating devices and a tablet computing machine, recordings are taken and sent from the mensurating equipment to the tabular array which so forwards them to O2. After this clinicians mark in where they can descry jobs and take the necessary action, every bit good as answering with feedback on the user ‘s status.

Key Trends

Fiscal Deductions

At the terminal of 2007 the universe entered a planetary recession which lasted until mid-2009 ( BBC News, n.d. ) and had important fiscal impacts on every state. For the UK a major result was budget cuts, during the 2010 disbursement reexamine the “ biggest UK disbursement cuts for decennaries ” ( BBC News, 2010 ) were unveiled, and it has been admitted it will take 10 old ages to acquire the budget back to the place it was in before the recognition crunch ( BBC News, n.d. ) .

Public Retail Market

The tendencies that followed the recession are likely to impact the economic public presentation within the public market. In add-on to the budget cuts the authorities raised VAT in 2011 from 17.5 % to 20 % ; this has negative effects as it means a higher cost for the client, every bit good as cut downing net net income. The consequence will be greater on lower income families as they have less disposable income anyhow, and the addition will cut down this as although they pay less VAT in entire, a larger per centum of their income is spent on taxed goods. ( BBC News, 2011 )

The recession besides brought increased unemployment and redundancies. The figure of unemployed is 2.5million, which is much higher than the pre-recession value of 1.61million ( Office for National Statistics, 2013 ) . The figure of redundancies has besides increased, pre-recession figures of 115,000 from Dec 2007-Feb 2008 has more than doubled to top out values of 310,000 ( Feb-Apr 2009 ) ( Office for National Statistics, 2013 ) . This is likely to cut down the populace ‘s assurance, doing decreased disbursement as they opt to salvage money. Figure 1 shows this consequence ; during the recession period disbursement declined although disposable income was still lifting.

Figure: Impact of the recession on family disbursement ( Gittins & A ; Luke, 2012 )

The merchandise will therefore demand to be advertised to demo it more of a demand than a luxury, this manner it is more likely the consumer will do the purchase.

Figure: Relationship between entire UK wellness attention outgo and GDP, Beginning: ( Office of Health Economics, 2011 )

UK Health Care Market

The device could besides be sold to the wellness attention market, chiefly aiming the NHS. Despite the big cuts wellness attention disbursement has continued to lift ; Figure 2 shows how UK wellness attention outgo has increased each twelvemonth, even though GDP declined between 2008/09-2009/10. The tendency applies to all wellness attention outgo, by the NHS, the private health care sector every bit good as other medical merchandises. David Cameron has besides late said how he will “ ne’er cut the NHS budget ” ( Daily Mail, 2013 ) . Despite the NHS budget being protected the one-year growing rate for its disbursement has decelerated and they have been instructed to do “ efficiency nest eggs worth up to ?20bn by 2014. ” ( Key Note, 2012 )

Intellectual Property

Due to the predicted growing of the wearable engineering market, every bit good as recent successful tests funded by the authorities at that place have been similar merchandises already introduced by other parties. These vary in manner from standalone devices such as the iHealth Wireless Blood Pressure Monitor which pairs with an iPhone, to full service bundles like the ‘Health at Home ‘ service provided by O2 Health, where the device braces to a tablet computing machine that sends the information to clinicians for appraisal and action/feedback ( O2 Health, 2013 ) . Due to these merchandises already being available in the market it is non possible to use rational belongings jurisprudence to this device, this could present possible jobs as it means it is easy for rivals to come in the market.

Aging Population & A ; Increasing Disease Prevalence

Aging Population

The population of the United Kingdom is estimated at 63.2million, with 10.4million being 65 and over ( Office for National Statistics, 2012 ) . Life anticipation is steadily increasing, and decease rates in the UK have decreased over clip ( Thomas, 2012 ) .

In absolute footings, the UK ‘s aged population ( 65+ ) has risen from 9.1million in 1991 to 19.5million in 2011 and is expected to make 14.8million by 2035. ( Office for National Statistics, 2011 ) . For many people these excess old ages of life may be undermined by long-run unwellnesss that are non curable but need active direction instead than intervention, and such attention is complex ( Deloitte LLP, 2012 ) .

“ An ageing population will affect an increasing figure of people viing for the services of a diminishing figure of carers. Indeed, the dependence ratio ( defined as the figure of people of working age to those who are retired ) is likely to fall from 4:1 to merely 2.5:1 in much of the developed universe within the following 40 old ages ” ( Doughty, et al. , 2007 ) .

Increasing Disease Prevalance

In 2011 Cancer was the most common cause of decease and the figure of new diagnosing each twelvemonth has increased well from around 150,000 in 1971 to about 290,000 in 2010 ( Thomas, 2012 ) . Whilst the figure of diagnosing has risen so has the endurance rate, “ Cancer endurance rates in the UK have doubled in the last 40 old ages ” and “ half of people diagnosed now survive their disease for at least five old ages ” ( Cancer Research UK, 2011 ) .

However there are many more wellness attention issues than merely Cancer. “ Long-run conditions account for 70 % of primary and secondary attention budgets in the UK, and the figure of people with a long-run status is set to lift 23 % over the following 25 old ages ” ( O2 Health, 2013 ) . Sing A & A ; E admittances for the over 80 ‘s, between 2007/2008 and 2009/2010 the figure of patients admitted rose by 37 % to 1.2 million ( Key Note, 2012 ) .

The Wearable Technology Market

Market Growth – A Global Position

“ 14 million wearable devices were estimated to hold been shipped in 2011. By 2016, this is forecast to turn to between 39 million and 171 million, depending on the scenario. ” The mid-range scenario presented by IMS Research, which is the most likely scenario, forecasts that 93 million wearable devices are to be shipped in 2016 ( Ahadome, 2012 ) .

Figure: Universe Market for Wearable Technology ( Ahadome, 2012 )

Figure 3 shows the market prognosiss, the largest bubble is for ‘Healthcare and Medical ‘ and its size represents that this sector has the largest market, which is ideal as this is the market we are aiming.

In 2010 the universe market for telehealth equipment was estimated to be deserving $ 163.2 million ( InMedica ( IMS Research ) , 2011 ) . “ Grosss in this market are forecast to turn at a CAGR of 43.4 % between 2010 and 2015 ” , which represents a market of $ 1billion by 2015.

Market Growth – UK Perspective

Within the UK telehealth is much less mainstreamed ( Deloitte LLP, 2012 ) , in 2009 the estimated spend in the UK on telehealth was $ 50.4m and this value rose to $ 62.8m for 2011 ( Frost & A ; Sullivan, 2013 ) stand foring a CAGR of 11.63 % . Overall the market is expected to turn by a CAGR of 12.2 % until 2015 ( Deloitte LLP, 2012 ) and to hold a value of $ 102.6m ( Frost & A ; Sullivan, 2013 ) .

There have been assorted publicly-funded programmes within the UK and these

“ stand for the most conjunct attempt by a national authorities to excite distant attention uptakeaˆ¦ Since 1998 there have been more than 25 authorities and other official studies naming for greater usage of remote attention in the UK. At least ?160m of public support was spent across the UK on enterprises to back up consumption over the period 2006-2012. ” ( Barlow, et al. , 2012 )

In 2008 a Whole System Demonstrator ( WSD ) plan was launched to test telecare and telehealth services. Interim consequences showed that telehealth appeared to cut down mortality, increase velocity of clinical attention, cut down infirmary admittances, lower the figure of bed yearss in infirmary every bit good as cut downing costs to the NHS ( Deloitte LLP, 2012 ) . Following the test the Department of Health launched the 3millionlives run in January 2012, which aims to better the lives of 3 million people with long-run conditions over the following 5 old ages ( 3millionlives, 2012 ) , with a cost economy of ?1.2bn through the usage of telehealth ( Pulse Today, 2012 ) . The plan besides aims to speed up the usage of the engineering, to develop the market and to take the barriers to bringing ( 3millionlives, 2012 ) .

hypertext transfer protocol: //imsresearch.com/tiny_mce/plugins/imagemanager/files/telehealth_patents_UKvsTheWorld.jpg

Figure: Telehealth Patients UK vs. ROW ( IMS Research, 2011 )

Figure 4 shows the impact of the 3million lives strategy ; it will hike the UK portion of telehealth patients worldwide from 4 % in 2010 to an estimated 74 % in 2016. The plan “ will hold a profound impact on the universe telehealth market, catapulting the UK to punt place ” ( IMS Research, 2011 ) .


It is clear that the recession will hold an impact on the concern, due to alterations made shortly after the recession entry into the UK wellness attention market looks most attractive ; as the advantages of the device suit the market ‘s demands. The NHS budget has n’t been cut so they still have the financess to pass, and besides they have been instructed to do efficiency nest eggs, which could be made through the usage of telehealth. Another advantage is that entry into this market is less complex as it merely involves selling the device, for the public retail market there will be no professional services to analyze the informations after device purchase, so this service needs to be implemented such as is offered by O2. This offers an advantage as it allows for extra concern range through subscription, nevertheless there is the major disadvantage of that the concern will be in direct competition with O2 and due to their market repute clients are more likely to utilize their service.

The population is ageing and disease prevalence is on the addition, which increases the strain on the wellness sector. There is market for the alleviation of force per unit area on the wellness system and the usage of telehealth will enable this ; IMS Research suggests that “ by promoting patients to be self-monitored and treated in an outpatient environment ” will let “ healthcare suppliers and remunerators seek to cut down the hospitalization and readmission ” ( Ahadome, 2012 ) .

The wearable engineering market has shown good growing over the last few old ages and is expected to ‘boom ‘ within the following few. It is advisable to come in the market prior to this in order to go established, the 3millionlives strategy offers a perfect chance for big market entry. By set uping early allows the merchandise to go the leader within the market, leting for maximal gross revenues, taking to maximal net income.

Opportunities and Menaces


Recent direction on the NHS informs efficiency nest eggs, this poses an chance as the usage of telehealth is proven to better efficiency. The NHS budget has besides non been cut intending they have the support to pass on the engineering.

The debut of the 3millionlives strategy offers a market of 3 million devices which offers big gross potency, as it was set up by the Department of Health societal and economic benefits are already known.


A major menace comes from the deficiency of rational belongings. The public retail market has already been discounted due to O2 ‘s presence nevertheless it is merely as possible that a big company, such as GE Healthcare comes into the wellness attention market, taking possible concern. If this was to go on within the life-cycle it could intend that all the research and stock could travel to blow, and the concern would non be protected due to no IP rights.

An extra menace is from wrong prediction, if the expected growing does non happen it will intend decreased net income potency. In line with this the recommendation of execution within the UK health care market comes chiefly due to the 3millionlives run, if this was to be pulled so the effects on the concern could be a cause of failure.


Pestle Analysis


Recent cuts to the NHS budget will cut down their disbursement on this new unseasoned engineering.

Government support could profit the undertaking as this merchandise could be used in infirmaries every bit good as at place to alarm the users GP or nurse.

The ‘3millionlives ‘ plan has late been developed by the Department of Health to relieve force per unit area on the long term costs for the NHS.

Rise in VAT reduces net income.

Items issued on prescription are VAT exempt leting for a larger net income border.

Medical goods purchased by an eligible organic structure ( i.e. infirmary, charitable attention establishment ) are vat exempt leting for a larger net income border.

Import/Export responsibility.

Positions of high power groups or brotherhoods such as the BMA or similar can either increase or destroy a merchandises opportunity for success.

The launch of self-care support leting people to take their ain attention suppliers offers several chances.

Must run into the standards as set out by the World Health Organisation.


If the device was to neglect or give wrong information taking to the decease of a user, the fiscal impact on the company could be immense due to compensation claims.

The ‘wearable engineering ‘ market is predicted to hold a big compound one-year growing rate ( 40.8 % CAGR ) within the following few old ages making a market roar.

Entering the market before the ‘boom ‘ will let it to be established and better known.

Exposure to the trade good markets for the cost of high value metals needed for production.

The mean pay for the UK has decreased whilst house measures has risen, intending less disposable income for impulse purchases.

Exposure to the currency markets if selling internationally, or holding the merchandise produced abroad.

Addition in the life pay means any employees will be more to the concern.

Could offer an all-in-one bundle, including cyberspace, the device, and a squad of professionals to analyze the informations to avoid overloading Hospitals/GP ‘s.


There could be spiritual resistance, as people may believe the device will interfere with ‘their clip ‘ for decease.

Could be seen in negative visible radiation as the company will be gaining through a device that could salvage persons life.

Likelihood is the possible user will non purchase the merchandise themselves ; it will be a household member or professional organic structure ( i.e. Hospital ) .

Main users will be aged, who will non be as technically minded so may fight to utilize the device or halt utilizing it all together.

Unrealistic outlooks of the devices capablenesss

Equipment abuse

Aged patients could hold Dementia so could bury to have on the device.

Percentage of population over 65 is increasing each twelvemonth conveying an increased market for the merchandise.

Having the device seeable to other people may set people off have oning the device.

Potential for market impregnation of the merchandise ; cut downing gross revenues after some old ages.

Homes need to hold internet connexion for Wi-Fi connexion, and it needs to be stable to avoid disjunction.

Increasing prevalence of disease


The merchandise is merely every bit good as its research ; if there was to be an mistake the costs could be terrible.

Technology is progressing at a rapid rate ; it is possible that the engineering is seen as ‘old ‘ and the device no longer competitory within a few old ages.

A recent study suggested ‘wearable engineering ‘ is to turn quickly in the following few old ages.

Promotions allow smaller devices intending the merchandise is less intrusive to the user. Future nanotechnology could enable it to be really little.

Scope for farther characteristics, such as detectors to observe is the user has fallen.

Must be certain informations is displayed in a meaningful manner to the client.

Data sending over Wi-Fi demands to be at right regularity for the physician to right measure it.

The package needed to run the device must be solidly coded and easy to update.

The lifetime of the battery charge and warnings if it has run out, possible inclusion of solar cells for back-up power.

Merchandise is suited for multiple markets, such as private health care, authorities health care, and athleticss goods.

Potential for automatic diagnosing by the device through tendency alterations ( i.e. cut downing blood force per unit area ) to alleviate the Doctor of this demand.


CE Taging a demand for market entry within Europe.

ISO 14971 for hazard decrease.

ISO 13485 to widen market chances by extinguishing uncertainnesss.

BMA ordinance needs to be considered.

Complex international Torahs on export and importation.

IP could be difficult to acquire granted due to similar bing merchandises.

Must abide by all corporate employment and trading Torahs in state of trading.

The device must come with instructions including contact inside informations for the maker.


High consensus on sustainability and environmental impact so an environmentally friendly device could be good.

Battery usage could be seen as negative, rechargeable batteries more environmentally friendly than disposable.

Disposal of the device after its life span, could it be reclaimable.

Energy efficient to cut down electricity ingestion, possibility of solar charging.

The device will be worn following to the organic structure, due to this it should be easy to clean to cut down the hazard of unwellness or infection spreading.

Could be worn at all times so will necessitate to be waterproof for usage in the shower/bath.

The device should be built to last impacts or maltreatment for high strength use.

The weight and size of the merchandise is critical to the user.




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