Online Healthcare MBA
Foundational Management Topics in Healthcare: Disruption in the Health Care Domain
See what our core course, Foundational Management Topics in Healthcare is like. Dr Tarabishy took a sample topic from the course and explores it with the audience. It prompted creative thinking among the crowd.
Dr Ayman El Tarabishy
Associate Teaching Professor in Management
Executive Director of International Council of Small Business (ICSB)
Enrollment Advisor: Gillian Birminghan
Annie: Thank you, everyone, for joining today’s webinar from the GW MBA Healthcare program. So let’s begin the webinar.So let me, again, welcome Dr. Tarabishy, who is the associate teaching professor at GW and also the director at … of [ISCB]. Tarabishy is a very well regarded professor and also an expert. So it will be really great to be hearing from him today.
And then we also have Gillian, who is your dedicated enrollment advisor. And she will help you every step of your application process. And, also, she will be going over the application requirements today.
So, now, before I pass it over, Dr. Tarabishy and Gillian, would you guys like to say a few words, maybe starting with Dr. Tarabishy?
Dr. Tarabishy: Yes. Hi. Thank you, [Annie]. And welcome, everybody to this webinar and … this afternoon. So, hopefully, you had a good lunch and you’re sitting there just to, kind of, catch up with some e-mails but also to listen to our webinar.
Gillian: Okay. Thank you. And hi, everyone. You know, thanks again for taking the time out of your busy schedule today. Thanks for joining us. And, as Annie mentioned earlier, I would also be also following up with you after the session as well.
So I do appreciate you taking this few minutes to attend the session with us and look forward to working with you very closely throughout the application, should you decide to move forward later. Have a pleasant one. Thanks, Annie.
Annie: Thank you. And, Dr. Tarabishy, I will pass over the presentation to you.
Dr. Tarabishy: Great. Okay. Thank you. Thank you. And how is everybody doing? I hope everybody is doing well. I don’t know if you have audio or not. But if you don’t see the group chat, that you can write some comment or just say hi … do you all see it and … it’s in the … kind of, on the bottom of the navigation. Also, if you click on it, it will pop up on your screen.
If you do, why don’t you just type in a little … say hi, hello or whatever you would like to say and let’s see if you’re on there.
So [Ashley] said hello with a big exclamation mark. And let’s see if the other ones are arriving or not. And so where are you all located now? Where are you? What city are you guys in?
So we’re going to have fun with this webinar. So let’s see where you’re all from. So … okay. So we actually have live people and not robots. So Philadelphia, Rowley, [unintelligible 00:02:25], Baltimore, Arizona, Houston. Okay. So we have a good mix here.
Okay. So let me start the session by asking you a question here and let’s see if you all can answer. If you had to pick between one or the other, are you innovative or are you creative? Let’s write an answer. Which one are you, innovative or creative? You have to pick one. You can’t pick both. Let’s see what you all say.
Okay. So creative, innovative, creative … okay, we don’t have agreement here. Seems that people are either innovative or creative.
Have you ever wondered what’s the difference between both? You know, can I have … we keep using them, oh, this is … he or she is so creative, oh, this … he or she is so innovative. Have you ever wondered, really, what’s the difference, you know?
And that’s, kind of … well, you know, action maybe, that’s a good point. You know, so what might it be. So that’s, kind of, the interesting take on it here, how can things be, kind of, answered, you know, what’s the difference between both.
So this is, kind of, my area of interest that I started exploring. And I put a course together in it. But that’s, kind of, the underpinning course for when you join our Healthcare MBA program is we delve in this topic a little bit.
So let me explain, okay? So, for this session today, there are three key components that I want to discuss. One is, you know, let’s discuss this whole concept of disruptive technology. We hear about it all the time. And this business model innovation. So we’ll talk a little bit about this, making products and services affordable.
The second part is, kind of, what … analyze some drivers and trends in healthcare that lead to innovation. So we’ll talk about that as well at a very high level.
And third is, kind of, what strategies for integrating business, operational, clinical, policy components into a cohesive plan. So sounds complex but we’re … for this session today, we’re going to actually have fun with it. You know, we’re going to take a very broad view of it. And, kind of, poke fun at it a little bit and see what comes out.
So what’s your view? If I give you four different models … and we’ll go model one, two, three, four … and which one would you think you would agree with on this whole concept of what is innovation and creativity.
So the question I ask is, in your mental map or mental thinking, do you agree with this concept, that innovation and creativity are somehow interlinked? You know, we have an innovation sphere and we have a creativity sphere. And in the middle, this is where they both collide and things happen. So that’s model number one.
Model number two, absolutely not. They’re two separate things, don’t tell me they mingle. It’s either innovation or creativity and we have to, you know, differentiate between both. So that’s model number two.
Model number three gets a little bit interesting, little bit playful, is that within the innovation sphere there’s a sub-sphere or creativity, right? So there’s a lot of innovation but within innovation there’s that hub, that nucleus of creativity.
And the last one, the fourth model is within this whole creativity sphere, within it, there is an innovation sub-sphere or sub … innovation, you know, nucleus.
Now … so let’s go. Model one, model two, model three, model four. If you had to pick one, which one would you agree with? So let’s pick one. Which one would it be?
You know, it’s an interesting question here. So let’s see what people think. So … we’re getting a lot of ones, some fours. And that’s, kind of … the root some research that’s been going on now for quite some time is trying to figure out, well, how do these interact. And if you add a discipline to it, like healthcare, like engineering, like marketing, it becomes more interesting.
Now, if I … if you were in a regular class, I would pick on [Trevor] or I’ll pick on [Melanie] and say, well, why do you say this, defend your position or explain why, what’s your justification for it. And we’ll have a discussion online, kind of, get into the root of this thinking process that you all have.
But in the meantime, at least for this session, we just raised this whole concept of saying what is the difference between innovation and creativity and how do they add to each other.
So the question I propose then is what is innovation? You know, and we’ll backtrack to creativity. So what is innovation?
So some of the research that’s been currently happening here … and it’s a very … kind of, generally accepted here … is we use it in a formula model. And what I mean by this is when we try to differentiate between innovation and creativity we say the following, right? We say that innovation is equal to creativity times execution.
Somebody said earlier it had to do with the action. And, you’re right, it had to do with action, the action and form of execution. So most of you, I am very pleased to say to you all, that you all … all of you are creative. You should be very pleased. If you walk away today from this session saying, wow, I got from a professor that I am creative, right? And you all should get a certificate saying you are officially a creative person.
But not all of you are innovative. And the reason is it depends on your execution. See, we can all sit on our tables, or desks or sofas, wherever we are, and come up with the most creative ideas. That’s just, kind of, a God-given gift for us, you know, for our minds, to think creatively. But when we start the process of execution, then we move into the sphere of innovation.
Does that make sense for everyone? Say yes so at least I know that you’re following here.
So as much as you all are progressing, in life, and work and everything, what you can assure yourself is that you all are creative. You had this idea of continuing your education, what a creative idea, fantastic. We applaud you. Now there comes the term of execution, what are you going to do about it, when are you going to do it, how are you going to do it and what’s the end goal.
So that becomes more complex. So the execution part is the tricky part or the devil’s in the details, if you hear that part. So if you’re in the details of things, that means you are executing.
So, in a way, right, what differentiates a lot of people from a lot of other individuals is their ability to execute. It is not the level of creativity, it’s the level of execution that matters.
So let’s continue. So first thing I want to ask … and this is something with all these tools we have here … is we have a poll question. I just want to know how much of you are aware of these buzz words. So let’s go to the next slide.
And have you heard of the term “creative destruction”? It’s a yes, no question. Have you heard of “creative destruction”? And I’ll give it a minute for everybody to answer. And it’s on the poll. So just click on the poll, not here. [unintelligible 00:10:41] see, I have to be more specific.
Okay. So give it more … ten more seconds. Okay. So let’s … so did you click? Let’s see what the results show. Okay. So 21 percent of you said, yes, I’ve heard of the term, 78 percent said never heard of the term. So this is important. This is a term that you all should be aware of. And you should even actually start Googling here.
This term is, basically, what’s happening now in many different industries, the concept of creative destruction. For example, Kodak. What happened to Kodak? Anybody know what happened to Kodak? What about Blockbuster? What about Blackberry? All right. And we … or what’s happening with Yahoo right now?
See, that whole concept of creative destruction. “Destruction” is a very bad word, by the way. But creative destruction is causing industries to shake, to change, to morph. And, believe it or not, the healthcare industry is going through what we … what I call a creative destruction approach. With all the new innovations that are happening. So they are creative ideas but they’re being executed.
Does anybody want to give me an example of a creative destruction in the healthcare domain? Anybody? Let’s write it down. Let’s come up with some examples of, you know, creative destruction.
Managed care. Wow, [Adam], you’re on fire. What else? Telemedicine. Excellent. What else? Okay. I don’t know what [ICDC] means but sounds good to me. All right. Managed care, we talked about that.
What else? How about EMR, electronic medical records, right? [Medicine Advance]. What about … I think there was also a couple of things in the news now that they’re actually opening universities, right, some pharmaceuticals are. Electronic health records … right, [Mitchell]. Right.
So this is what’s going on. So you don’t know … you might not know the term itself, because it’s a nice buzzword. But you’re actually living this whole area of creative destruction, okay? [Precision Medicine], yeah.
So let me … let’s go through some of these examples, just to give you an idea. So what we see happening here is that this whole concept of creative destruction is hitting us in many different approaches, in creative ideas, in engineering, in the business case of things, how we actually conduct business. And also and the needs approach, our needs as well.
How many of you now actually Skype with your doctor or you do everything with your doctor online? How many of you have tried that? That everything is actually all done online, you don’t actually have to do a visit.
More importantly, I just recently … I have a [unintelligible 00:14:00] I use for my healthcare. I can schedule my appointment, get it up on my Google calendar, get directions, get the prescriptions done, get all that stuff done online. And even talk … and even send an e-mail to my physician and they reply back.
And, a week ago, I actually did a Skype call with them for my kids, because one has … you know, didn’t feel good and all that stuff. So we did a Skype call with him, right? But that’s the new normal. That’s what I call the new normal here, right?
So as we start to move into this domain or learn about this domain, we have to understand many different aspects of it. And I’ll get into that right away.
Okay. Oh, you tried it for your kids. How did it go? Tell us your experience. It went well, right? Oh, try it, it’s great. You know, because they had … like, a little rash on his face … he’s six year old. And I was like, oh, my God, to do appointment, spend two, three hours, all that stuff. And we did just a Skype call and it turned out to be an allergy. And that’s it. And he said follow up in a day or two, send me a picture of it and I’ll tell you if it’s gone or not. Voila, done. You know, I did it all from my office. All right. I digress. But let’s move on.
All right. So here are some concepts that I usually use in my class but I’m using here today just to give you an idea of, kind of, the classrooms and other faculties’ classrooms that we conduct.
First thing we do is we talk from a theory perspective about what we call is the [weigh structure] of economic booms and basic innovation. If you look carefully, what you start seeing here is different cycles of innovation that we have.
So we started in the 1800’s with the steam engine or the cotton. And then we went to the railway steel boom. And then we went … and then we had a recession, and then a depression and then we move up again. And then electricity and chemistry. We go up again and now we’re going down again.
And now in the automobile and petro chemistry. And then we go down again. And now we’re in the [ICP] or information technology computers. But now we’re heading downward. And this is where we are right now. Now there is the next boom coming up.
My opinion and a lot of people that you ask and stuff, the next boom, what we believe is going to be the next generation of innovations is nanotechnology and energy.
I don’t know if you all heard this in the news or not, what did the … Tesla do today? Tesla was in the news this morning, all over the news. Did you hear what they all do?
Tesla just announced a 3.5-billion-dollar acquisition of a solar power company, right? They want to be now the clean energy company, right? Absolutely.
So they’re not even a car manufacturer anymore. They just repositioned themselves. They’re … they pivoted themselves to being your clean energy company. So now when we think of Tesla, oh, yeah, they do everything clean energy. They’re going to have batteries for us, they’re going to have cars, they’re going to have solar power this, solar power that. So Tesla now becomes our energy company.
Again, a whole new creative destruction happening. And … I don’t know, Elon Musk … I don’t know if he’s the same CEO, probably but … all right, maybe he’s the mega CEO and then we’ll figure out what’s next.
The Netflix … I like that, [Diana], the Netflix effect. So as we move to the next slide here, here’s what we see. All right. Every fifty to sixty years, we see a shift happening, new theories, new concepts, inventions. You know, we … there’s a proof of concept, there’s a development, start of development, there’s implementation decisions. And then there’s an innovation.
And you’re, kind of, in the midst of all of this. This is why it’s kind of exciting, that we’re in the midst. It’s not just about executing, making things better. It’s about innovating.
And, as we said earlier, innovation is creative ideas times execution, right? So you’re either coming up with creative ideas or you’re learning how to execute better. And, in my opinion, if you’re in the MBA program or you’re pursuing an MBA program, it’s about sharpening your execution but do not forget to be creative. Because there’s always somebody else better than you in execution. You need to start defining what makes you creative.
So … all right. Question, what is this? Anybody know what this is? Let’s write it. Come up with the most creative ideas you can think of. Let’s have fun. We’re not all working now, so let’s have fun. Tell me what this is.
[Geoffrey], that is the most boring answer I’ve ever seen. I said “creative” and you give me the most boring answer. Try again.
Okay, Diana, you’re working on something, [unintelligible 00:18:54]. What else? Fusion tube, all right. Come on, Geoffrey, I’m waiting for you to come back with an answer. Okay, vaporizer. All right, that’s good. You watch a lot of Disney. All right. Come on, couple of more. Golf ball receptacle. [laughs] A purse.
All right. One time I was in class at GW and somebody told me … and I’ll write it down, just for effect … this is what they wrote, weapon of mass destruction. I was like, “How did you come up with that one?” and they said, “Well, look at the back of it. It’s, like, in a warehouse,” all right? So … all right, hydroponic plant grower. Okay. Now, we’re having fun here with this. We’ll get back to this.
So first concept. What does everybody want, from a patient or a customer? And I put both to make a distinction because, yes, there … they are the same individual but yet they’re are also … they are customer and they’re patients. Patients first because of … you know, we’re in the business of making their lives better, you know, curing their ills and so on … and saving them, saving their lives. But, at the end of the day, they’re also customers, in a business model perspective.
So what do they want? Four key things. Whatever you do from a customer perspective or even from a patient perspective, this is how we function, this is how we actually work.
One, we need speed, right? Today … in today’s age, everything is about speed, how fast can you get me this, how fast can I have an appointment, why can’t my doctor see my kid in the next hour via Skype, why do I have to make an appointment, wait three days, pick him up, take him from school, bring him back. That’s just absolutely unacceptable for me. Why can’t we do it now and I’ll pay for it, right? But let’s get it done.
Two, convenience. Why can’t I just pull up the … my Apple … my iPad in the morning at the kitchen table, have the doctor pop up, and they see the kid and off they go to school. Do we want convenience.
Three, personalization. They better know me and I better know them, right, because that’s … this is how life is today. It’s all about, kind of, make it unique for your own personal experience.
And, finally, price. How much are you willing to pay for the quality of service that you’re getting.
So, if you look at all these four things, give me examples of companies that have mastered all four. Let’s write them down. Give me some examples of companies that have mastered all four. And have done it in a very, very … excellent job. I’m using the word … even excellent. Give me examples.
Amazon. Wow. Absolutely. They have done a fantastic job. They charge $99.00 for free shipping and they have 18 million subscribers for this $99.00. Not all of them use it. Look at the bottom line profit that just comes to Amazon, just for having people … the convenience of having free shipping with just one click of a button. You get it and we know who you are as soon as you log in, you can actually refresh your order.
What have they done even more to make it more convenient? What’s that thing that you see in the … in TV now that they do? What is it called? It’s called a … I think it’s called a button, right, that you can click a button and you get everything, right? I don’t know what they call it but I wish I had that button to put my kids to sleep. You know, you press a button and off they go to sleep. It never works. [Pods], yes. Thank you.
So Netflix. Speed, convenience, personalization, price. Right now, you have … [Echo], absolutely. I’ve never heard of 23andMe. What’s that, [Prem]? Uber, exactly. Drones, right?
So if we start looking at these four components, start thinking healthcare. What are companies doing in the healthcare domain, not just companies but hospitals, clinicians, administrators, managers. All in the healthcare industry, they’re moving into these four components.
So where do they come from, how do they come from, what’s the evolution of them. I’ll give you a little bit of a preview of each one.
The first one is, actually, a book written by [Nicholas Nicofontay]. He’s out of MIT. And he wrote a book … I think it was in the early ‘Eighties. But his book was, kind of, revolutionary in a way because he talked about the concept of being digital.
And what he meant by being digital is the following, right? Ooh, I missed a slide here but let me go back. Being digital, what he meant by this is saying that we need to start looking at the environment, at society in two ways.
The first way is atoms, right? There’s structures in place. So when you want to take … I’m going to use the kid example … when you want to take your kid to see a doctor, the atom approach is you go to the clinic, or to the office, or the doctor’s office or to the hospital and it requires physical movement, okay? Get in the car, park, go up the elevator, go to the clinic, register, sit on the … sit on a chair, look at your form for an hour, finally, the doctor sees you for two minutes and off you go. That’s all an atom’s approach.
What Nicofontay is saying, saying that’s the old model. What we’re looking at here is a new model, which is the digital model, right? And the digital model is all binary numbers. In simple terms, it’s electronic medical records or electronic health record. You don’t need a file anymore, you don’t need a folder anymore. Everything is digitized.
And what Nicofontay, what the industry is looking at for is we’re shifting from a classic atom’s approach, everything has to be physical, to a whole digital approach. Does that make sense for everybody? Yes, no?
Right? And that’s revolutionary, by itself. If we shift our industries from being atom approach to a digital approach, it opens up whole slew of opportunities. So that’s concept number one, start thinking digital.
Concept number two is this whole idea of what we … [Christiansons] call the innovative dilemma. And what he meant with this is in the title of the book, when new technologies cause great firms to fail. And we talked about Blockbuster, what did Netflix do to Blockbuster. It’s basically they adopted a new technology that created a whole different industry by itself.
I’ll give you an example. This one, I have an example. How many of you remember the regular typewriter, right? I’m going to start dating people now based on when they actually used a typewriter, okay?
So I’ll give you an example. When I was young I would work in my dad’s office, typing letters. And I hated that job. I was nine, ten years old. I hated that job because it was so boring, typing letters on a typewriter. And, if I made three mistakes, I had to retype the whole letter again. And, for a ten year old, that’s just miserable.
But then in … you know, incremental innovations happened and we got an electronic typewriter. I was so happy that I didn’t have to type the letter again if I made three mistakes, because you can always go back and fix the error that you made. But yet I had to type the letter over, and over and over again, because it didn’t have any memory. You just … it was just an electronic typewriter.
And then another incremental innovation happened. And that incremental innovation that happened was actually the computer. Now I can write ten letters in five minutes, because I saved these letters. And still got paid by my dad for an hour worth of work, even though I only worked five minutes. I’m like it’s not my problem, you pay me for an hour even though I spent five minutes.
What’s next is the question. And that’s what Christianson talks about. Are you ready for the next … what we call a disruptive technology. Any guess what that can be?
If you tell me it’s the iPad, you’re wrong. If you tell me it’s the … you know, another version of a laptop, you’re wrong. What might … 3D printing, maybe, right? Yeah, no, I’ll give 3D … that’s a good answer, Prem. 3D printing is the next destruction. But what else can it be in the same realm?
So you went from regular typewriter, to electronic to computer. What’s next? We have text. The next one in my opinion is … wearables, yes. Voice. Exactly, dictation. [Cheryl] got it. It’s voice. Now, imagine, we can actually … I don’t need to type any of this stuff and you don’t need to read any of this stuff, we’re just talking over a digital screen and nothing is being printed, right?
I can get into my car, say “call home” and I can call home and get everything I need from my wife saying what am I missing. So she quickly tells me on the … on the car’s voice recorder and it quickly sends it to my phone. So I go into, you know, Safeway, wherever I go, and I have it all digitized.
Even better, with the new commercials that are coming out, your fridge will start to e-mail you or call Whole Foods, and order foods on your behalf and have it delivered, which is I think in the next two years what’s going to happen. Oh, it’s already here? Wow, I need that. Okay, good note.
All right. So disruptive impact … so that’s concept number two. Concept number three. I know, it’s really scary, right? You know, imagine you have a student now that just does your digital homework. [laughs] They’re, like, “Yeah, yeah, I took care of it, Dr. Tarabishy. It’s already done.” Who, [Bob], the computer or [Mary], the computer took care of it.
Next one is cannons versus bullets. And that’s … have you all heard of Jim Collins, right, from Good to Great? Well, this is his new book. And I like this book. It has a very neat concept to it. And I’ll explain to you what it is. And this is something unique. Right?
In his book, he talks about this concept of cannons. And what he meant about this is saying that, you know, in the traditional model, if you wanted to do something you had to spend a lot of money, time and resources to build this big cannon to execute.
To make it simple, if you were going to go back to school, you had to leave your job, find the school next to you, change your whole schedule, change your whole income model, if you’re going to take off time from work, right, and invest all these resources to build this cannon, right? And the end goal is, you know, to graduate and to get a degree, right? And Collins talks about … saying that’s the traditional model, that’s the cannon approach, right?
Now he’s saying what about a whole new approach. And what he’s talking about is strategic bullets. He goes, “Schools like GW, like other schools said, ‘Well, you know, we can’t really be all over the US with all these campuses, it just costs us too much money to get these offices. So why don’t we use a digital approach, because we see a disruption happening?’” and that’s the MBA online, right? Now you start focusing on areas with limited resources, time and personnel saying, “What do we do next?”
An example … and a classic example … and you will be shocked … and I want you to use it all to show off at your dinner party … is Apple. So you’re all familiar with the iPod, right? You all had one, correct? Now, what is an iPod? Apple, when they were designing the iPod said we want to get into the music business. It’s a simple decision.
Okay, so what do we do. They said, well, we’ll create an MP3 player. The iPod, by itself, is an MP3 player. It is nothing more than just an MP3 player. Heck, this is the design of an MP3 player and it tells you exactly what’s in it, made in Taiwan, made in China, made in South Korea, made wherever it is. It’s just components of it. So they created the iPod as the strategic bullet. They say let’s make couple of million of them, no big deal.
And then they went and did the following. Then they said what about if we talk to the music companies and ask them if we can buy their songs for 99 cents. The music company said, “You want to buy a song for 99 cents?” they said, “Well, no, less. We’ll sell it for 99 cents but you give it to us … not by the whole CD, just a song in an album.” And they said, “Sure. Nobody is going to do it. But, go ahead, we’ll make money out of you. Take our songs, because they’re being pirated anyhow.”
So Apple said, “Thank you very much. That’s great, that’s fantastic. Now we have a music library where anybody can buy a song for 99 cents.” Are you all following this, yes or no? This is a really great story.
So, back then, ninety percent of the whole IT industry was Microsoft, right? Microsoft dominated. Everybody used Microsoft. Only ten percent was using Apple.
So Apple were, kind of, sneaky, smart sneaky. They said, okay, we’re going to get into the music business. People like us because we’re cool, we’re different. So we’re going to create … we’re going to start telling these iPods and we’re going to tell people to buy these songs for 99 cents. Microsoft said, “This … let them play. [laughs] These are small kids, let them play, right? They’re not going to bother us.”
And then Apple did this. And they said, okay. let’s launch it. And they launched it. And, surprisingly, it was a success. You know, people liked it.
When did they launch the cannon? When did Apple say, “Microsoft, get ready. Here is our cannons and they’re going to blow things up”? What did Apple do that changed the whole domain of the whole IT industry? What did they do, with the iPod and the iTunes Store? What was their classic move? It was the simplest move ever, what changed everything. Anybody want to take a guess?
I gave you a clue and I, kind of, moved back real quick. Connected … well, yes, exactly. But what did they do, [Robby]? What was it, a simple thing that they do that changed everything? So now they have the iPods out in the market, they have the iTunes store but only ten percent of the market was Apple. No, no, no, no iTunes, no wireless, none of that stuff. iTunes was a bullet, wireless was a bullet. What did they do?
Here’s what they did. They made iTunes available for PC. They went after the PC market. How many of you … do you all remember when you downloaded iTunes on your Microsoft laptops? And … you all remember when you downloaded iTunes on your laptops and now you started putting … connecting your iPod to your Microsoft laptop? You all remember this?
Exactly. You fell for it, Geoffrey. You absolutely … you know, line, hook and sinker. You fell for it. They unleashed the cannons. [laughs] They made you all switch … without you realizing. Because now you have a cool iPod, you’re buying music from Apple, you’re still using Microsoft and you’re saying, “Why am I using, you know, this computer? Why couldn’t I just go get a Mac? Macs are cool. I’m in that industry now. I’m in that domain. I am now officially cool.” And they made billions.
So what Collins is talking about, right, bullets versus cannons. And the industry itself, the healthcare industry itself is playing this game. They’re doing small little bullets to unleash the major cannons, right? And what are they, what do you think they are. And that’s something that you’ll explore in your MBA adventure.
Okay. So let’s continue. The other one is blown to bits, right, which is basically … and Evans and Wurster. And they come with … kind of, dilemma but within the dilemma is a very neat solution. They divide customers into two parts, right? They say the two customers … the customers are … have two needs. One is richness and two is reach. And I’ll explain that … what that means, right?
Richness means, basically, is … customer tailor. You want something very specific to you. So you go to a tailor and they treat you like a king or a queen. You get the best service ever. But, at the end, you get a bill, a big bill. Or you go to a rich … a reach approach, which is off the rack, right? So they’re ready-made suits or dresses, right? They’re nice but they’re not tailored specifically to your need.
And what … the concept here is the companies that will succeed will be able to merge both together. Okay? Anybody have an example? Anybody? This is a tricky one. Which companies … and we don’t need to use healthcare, we can use other ones … manage to have richness and reach, together?
The example I want to share is J. Crew. J. Crew, about fifteen years ago, changed the whole retail industry by doing a simple little trick on people, that you buy online, okay, buy online … which is reaching everybody they know … but with a caveat. We will deliver it to your house, in the comfort of your house, so you don’t have to be at the store, right, you can try it at your house. And if you don’t like it, what you can do, you can go back to the store and return it at no cost.
This whole custom approach. Now you can buy three, four dresses, two, three shirts. Whatever you do, enjoy it, try it at home, look at all the mirrors in your house, wear it wherever you want in the house for a day or two. And, if you don’t like it, bring it back but keep the tag on and we’ll a hundred percent refund you but you have to bring it back to the store.
But, again, they were smart business people. Because what did they do, they brought you from your computer, from your desk, from your office, to go to the store, wherever you are. And in the store, guess what was there … more sales.
Now you’re in the store, so you’re captive. You say, “Oh, well, you know, I really didn’t like this dress but, look, there’s another dress that looks like it or there’s another dress that looks like it. Oh, look, my God, there’s a bigger sale, I’m going to buy …”
So they pulled people. They just weren’t waiting for people to actually decide to go shop, they were actually actively shopping with them right from the beginning.
So these four concepts, if you may, kind of, are diverging into the healthcare domain. So let me give you an example. We talked about this a little bit.
I asked you … remember what I asked you, what do you think this is? Right? And you gave me some neat examples. And this is where innovation starts to happen. This is when somebody says why can’t we just take a simple teapot, right, simple teapot that everybody uses … like going to the doctor, like going to the hospital, right … and say why don’t we innovate it?
Yes, Nordstrom did but Nordstrom never did online, right? It was J. Crew that was the online … actually, it was a mailing company first, [Flora], and now they started opening stores. And the first store they actually opened was in … I think it was either in Boston or Virginia, the first concept store, right?
So but back to this teapot, that what we think is a teapot can be transformed into something different. And this is what’s happening with the healthcare industry. Even though it’s still healthcare but the healthcare industry itself is changing into something different.
And this example, it’s called the Sorapot. And what is a Sorapot? I’ll explain to you exactly what a Sorapot is, right? A “Sorapot is unique, modern teapot. Its architectural shape and simple functionality brings tea’s quiet beauty into sharp focus.” Made of Pyrex, which I don’t know what that is. And it’s, basically, the new way of revolutionizing making tea, in a very beautifully aesthetic method. And if you want to buy it, costs $179.00 online, and on Amazon and it’s sold out. Who would buy a Sorapot for $179.00, even though teapot might cost you $10.00?
That changes the game. Even the most simple assumptions that we have about everything we do, people are looking at it from a creative way and saying why don’t we just change it a little bit, let’s tweak it. Because if we can answer four key things, right … speed, right, personalization … if I spell right … convenience … ah … and price. If we can address these four things, then we’re on to something. And we have strategies in place, atoms versus bits, disruption, atoms and … cannons versus bullets and reach versus richness.
I want to stop here, because it’s 2:45 and I think you’re all ready to leave for lunch and stuff. I had more slides but maybe we can do that in the future. So why don’t we open up for questions or comments, both about the presentation and also about … anything about the courses at GW, because I’m the director. So let’s open up with Q and A.
And … Annie, you there?
Annie: Yeah, I am here.
Dr. Tarabishy: Okay. So, if there’s any questions, why don’t we type them in the group chat and I’ll read them real quick. And then if you have any program questions, you can ask Annie as well on the side.
Annie: This course is new to the curriculum and … right, Tarabishy? Like, maybe you can speak a little bit about also what they can expect.
Dr. Tarabishy: Yeah. So … okay. So for this first course that we just designed here. So, kind of, like, the … this is a sample topic that we’ll talk about. And so this is more of a general topic that we talked about.
That’s a good question if there’s … I think this a full-time program but depends on how many courses you take, Cheryl, so just check on that. I think sometimes if you get busy, right, and … the advising will help.
The way I see it … and this is what I know about the MBA office and this is what I do with my course. I have this rule. And this is the rule that I mention all the time, right? This rule is … I call it life happens rule, right? We’re all our busy executives and, you know, directors, parents, you name it, sons, daughters, we name it here. And you’re adding on this program on top of the things that you’re doing. So you have to be ready, you have to be mentally ready, is the number one thing, right? Are you ready for … to add this to your additional challenges and things that you’re doing.
If you are mentally ready, and you know you can do it and you get the support of everybody around you, right, then the next thing you know is you need to really sit down and put a schedule, a good schedule together of how you’re going to do it, you know, what’s going to work, what’s not going to work, what’s the threat that you might see, what’s the opportunities and to plan it accordingly and not just wing it. Because it’s not going to work if you wing it. Right?
Once you do this, and once you apply and once you do all this stuff, then there’s a serious commitment of time, effort and sacrifice, right? I’ve seen students graduate and they bring in their significant others and saying thank you … and I don’t think the students that are graduating, I thank their significant others, because I know they sacrifice. They sacrifice vacations, they sacrifice weekends. I have webinars on a Saturday sometimes or on a Tuesday night. So it’s challenging in the sense that you’re adding new skills and logic to this.
But, if there is a will and there’s a mindset, everything is doable. And if you don’t have both then, you know, take time and think carefully about it.
Now, regarding the course itself, this is an example of a course … and when you take my course, you’ll see online I went and got a bunch of disrupters and interviewed them. So I brought them into my online classroom, and I sat down with them and I grilled them with questions, like you grilling me with questions, at some point. So you’ll listen to these, they’re 20 minutes, 25 minutes.
And then there’s assignments. There will be online blogs, there will be group projects. And in the first course I’m throwing at you a kitchen sink, I’m asking you to actually do an online simulation. And in which two hospitals are merging, and you have limited time and limited resources and you have to solve the question, how to get them to buy into your new strategy. So you’ll be figuring that out. But that’s my course, that’s the introduction course just to get you to, kind of, get a feel of everything that’s happening.
As you move forward, then you get my colleagues from the marketing department, talking about marketing. Then you get the accounting people and you’ll be, like, I have no idea what they’re talking about, this is a whole new language.
But that’s good, you need a new language, you need a business language, which is accounting and which is finance. Because at some point, when you’re making decisions, you want to look up … a statement saying what’s our return on investment, you know, how do we catalogue this, how do … is this a debit or this is a credit. So all this stuff, you need to learn.
And then we’re talking about strategy. You know, what type of strategies there are. Then we talk about HR, the difference between a leader and manager, right, and an entrepreneur. So a lot of stuff that are happening here.
So I think I’ll stop here. Does that make sense for everybody? Yes, no? No, I don’t … yes, no, everybody? Okay, all right. Good. I think we have a plan here.
I’ll put my e-mail address here. If you want to talk to me about the course itself or the topic, shoot me an e-mail, right, and then I’ll answer you or I’ll give you an article to read.
And if you have anything about the program itself … aside from the logistics, and the admission and all that stuff … you know, if you have any concerns about, kind of, am I ready or not, please, let me know. I’ll tell it to you as honest and as truth …as much as possible here, if you are able or not, okay? This is a commitment, guys. This is not something that you take lightly.
Annie: Thank you, Dr. Tarabishy. And with that … and also adding onto Dr. Tarabishy’s e-mail, you guys can definitely book an appointment with us as well, with … directly with our advisors.
So at the bottom of your screen, the navigation bar at the bottom, there’s a link icon and it actually goes directly to a platform that you can book an appointment with our advisor.
And we can talk about, you know … I know some of … some folks have already asked, you know, based off of experience are they … do they … are they fitted for the program. We can talk about that, for sure, over a call and just to … and walk you through the requirements in more detail and also the scheduling that … you know, some folks have asked about the part time or full time.
So, definitely, reach out to us. And, in the meantime, I just want to remind everyone that on the left of your screen there should be a list of resources. Again, I encourage everyone to take a look at those resources, they … including another webinar that we did with other graduates that have came out of this program and also a recent survey results from our graduate survey.
So, by all means, please, take a look at that so that you are more familiar with our program, familiar with the different perspectives of the program.
So, definitely, we look forward to hearing from you. And, again, I really, really want to thank, Dr. Tarabishy for preparing this webinar and, really, being here to speak with us. And it’s been really inspiring, even for myself. So I hope this has been the same for you.