© Feng Li, How have we changed the business model? Sustainable Business Models for Assisted Living Technologies and Services (SALT) Professor Feng Li SALT Principal Investigator Cass Business School, City University London Assisted Living Innovation Platform and Medilink UK workshop 12th December 2012, ; Hilton, Coventry

© Feng Li, 2012 SALT Objectives Identify business models for scalable assistive technologies and services to promote sustainable market development for independent healthy living Understand the factors that promote or inhibit the uptake, use and integration of assistive technologies for older people living in the community from a user-centred perspective. 2

© Feng Li, 2012 Context Digital technologies transformed organisations and changed the way we work & live Opportunities to tackle significant societal challenges and transform people’s lives Desirable, feasible and sustainable Identify sustainable and scalable business models Tackle social objectives via robust business principles Beyond traditional Philanthropy and Corporate social responsibilities (CSR) © Feng Li, 2011

© Feng Li, 2012 The health and social care markets are huge and rapidly growing from the ageing population The 65+ age group possess significant proportion of wealth in the UK and internationally Product and service innovations in ALTS 4 Huge Market & Significant Potential

© Feng Li, 2012 Faced with a choice between moving in with relatives and remaining in their own home if they become more frail, almost seven out of 10 said they would always opt for independence [CarelineUK, Telegraph, 7 Dec 2012] Vulnerable care home residents are treated like “brutes or malfunctioning machines” … either “excruciatingly expensive” or “utterly depressing” … We didn’t see anywhere dirty, but we saw places that were utterly depressing [Booker prize-winning novelist Hilary Mantel speaking to Telegraph, 9 Dec 2012] Elderly less lonely if plugged in to internet, says Martha Lane Fox [26 Nov 2012, Telegraph] 5 In The Headlines …

© Feng Li, 2012 Systematic review of previous studies Facilitated workshops (4) Case studies in the UK (20) Engagement with business partners and collaborators (Action research) Promote SALT and disseminate findings at academic conferences and commercial events International best practice (on going) 6 Our Progress So Far …

© Feng Li, 2012 Most previous studies are from clinical, technological, social or policy perspectives – limited work from the business and economic perspectives Diverse stakeholders and complex relations between them; and emotionally charged issues Rapidly changing policies and landscape – GP commissioning; personal budget etc The existing ALTS markets dominated by state (health services and social care) Insurance funded market in some countries The self purchase market is fragmented and small 7 Main findings

© Feng Li, 2012 Effective ALTS innovations do exist both in the UK and internationally Most of them run by local champions and funded by state Few ALTS applications have been successful in financially sustainable ways at large scales Key challenges are sustainability and scalability 8 Main findings … cont 2

© Feng Li, 2012 Most businesses not generating sufficient income from mainstream ALTS Many rely on side activities to survive - R&D income, government grants, investments, or income from general market Many technologies but few end users /consumers Intricate mismatches between supply and demand – local authorities want cheap techs to reduce costs versus sophisticated technologies too expensive for local authorities; or not what the consumers want through self-purchase 9 Main findings … cont 3

© Feng Li, 2012 Traditional ALTS providers Large new ‘entrants’ from other areas/sectors SME new entrants Emerging evidence of innovative practices Landscape could change dramatically but it will take time 10 Main findings … cont 4

© Feng Li, 2012 The notion of sustainability Key challenge – scale up operations State market and self-purchase market Technologies and services – Beyond workable and interoperable Barriers - sustainable and scalable market development 11 Business Models for ALTS

© Feng Li, 2012 Thank you! Questions and Comments? 12