Practo – Building a Consumer Centric Wellness Solutions Ecosystem offering

Building a Consumer-Centric Wellness Solutions Ecosystem offering

The Brew for the day is for Practo
Type: Served Hot – Disrupt and Transform brew.

The Brew will analyze Practo on the following points:
Business Model Analysis (& Improvisations)

a) Business Model Analysis:  Practo’s Offerings predominantly consist of the following: Professional Discoverability Platform along with Bookings & Appointments, SAAS Offerings for Healthcare Management, Health Records Storage, Engagement Solutions & Online Consultations, Social Network & Information Services, Wellness Offerings & Lifestyle Solutions. This, as per The Brew covers all the offerings that Practo delivers on.  

While Practo continues its expansion in global markets (of similar nature with respect to Indian context), with respect to Monetisation model, Practo’s focus remains very high on Professional Services Discoverability (enabled by Listings revenue line), SAAS offerings, Online Consultations and discrete services of Wellness and Lifestyle solutions. Infact, these are the only ones where Practo has found positive proofs of concept, while the rest are either yet to find the traction or to find the economic value from the consumer.

Basis this, The Brew has 2 fundamental line of thoughts which can pivot Practo’s existing focus, unlocking massive quantum of value for entire ecosystem, and hence unto itself.
a) The Brew recommends Practo to take inspirations from Oyo’s Business Model Analysis published by The Brew – With the ratio of healthcare service providers being highly skewed, low dissemination of consumer technology and healthcare awareness in consumers v/s. conventional practice of legacy relationship, pre-decided networks for seeking reactive health solutions & the pseudo-geographic proximity (& centricity) affecting the consumer decision making process; the Problem of Discoverability is a much smaller problem to focus on – rather what remains to be solved is the Enhancement of Experience, Effectiveness of Services and Continuous Engagement.  The Brew highly recommends Practo to think on these lines to while redesigning it’s offerings for the pivot. (explained further in point b - Sense of Purpose)

b) While Practo seeks global expansion, it’s pertinent to note that this needs to come with right product – solutions mix along with clear focus areas and a strong understanding of Practo’s competence, which if overseen will only lead to undercapitalization of brand Practo, self-imposed resource constraints and continuous juggling of resource allocation between different business units given that Practo is yet to see a sustainable revenue stream enabled by healthy business metrics. It’s definitely an age old wisdom tested over times – health is wealth & Practo’s health check needs to get manifested by it’s Purpose, Value Proposition and Business Metrics, elaborated below.

b) Sense of Purpose & its Culmination to a Value Proposition:
In the words of its founders, Practo’s vision is – ‘to help people become more productive and reduce the number of times they fall sick. Even if they fall sick, how fast can they recover? To help them connect with whatever service is available’. That’s definitely an inspiring purpose statement, however much less is done when its comes to action, predominantly post studying the broken healthcare value chain which is ailed by 3 major paint points: 
a) Lack of measurement for continuous engagement, strong effectiveness and good experience with existing/new networks of Consumer (Rather Practo’s single minded myopic focus on Professional Services discoverability is turning counterproductive, inspite of having potential to disrupt and set new ground rules for entire Industry practice with regards to Engagement, Experience and Effectiveness which ideally needs to be solved at an Industry level)
b) Enablement of Technology, Data & Data Sciences at an Ecosystem level (Enablement of intelligent tech layer to identify and proactively aid people with regards to health and wellness management seems to have been given a complete miss)
c) Continuity and Convergence of Data and Information for the Ecosystem: The beauty of spread of Practo’s offerings is it covers end to end of Healthcare Value chain, effectively laying foundation of standardization of Consumer information for causality analysis, single point of reference for any of the stakeholders in value chain, and historical datasets. This in itself can unlock a huge value, along with above points in decoding the entire human – body mechanism at work.

Basis the above, The Brew recommends Practo to change it’s approach in line with above thoughts of Solving the Healthcare Issue at a Granular level, Stitching the broken Healthcare Value chain with regards to Data, Information and Decision making and with the given data, leveraging Technology to intuitively validate the decision making and proactive health management, Cos in The Brew’s opinion, by effecting this, will align the actions to Practo’s purpose and fulfillment.

c) Core Competence & Strategy: Post solving the problem of experience, effectiveness & engagement, what remains is being seen as an Ecosystem player and getting involved in all the essential touch-points in the entire value chain, and that’s what Practo should ideally see itself. as an Ecosystem Enabler, along with leveraging the Decision & Data Sciences,  and with focus on enhancing solutions enabled by technology.

Projecting as an Ecosystem enabler, Practo stands to unlock huge value in fragmented healthcare industry; standardizing (enhancing) the service expectations, and disrupting consumer’s perspective of approaching healthcare solutions, both, proactive and reactive.

With Technology as Core Competence, Data, Data Sciences and a strong brand proposition needs to be Practo’s strategy along with building value based relationships driving competitive advantage, and The Brew does recommend Practo to build these further up from its current state, for effecting larger scaleups, adoptions and behavioral changes.

d) Competitive Advantage – Networks & Platform Enabled Ecosystem Offering:
With it’s strategy being revisited to serve the proposition and vision well, being a platform enabled Ecosystem offering and syncing it seamlessly in the existing relationship model of value chain can definitely prove to be a competitive advantage given that adoptions, acceptance, speed and effectiveness will increase at an overall level.

The Brew urges Practo to leverage the existing offline network and relationship arrangement, promoting a shift to an online model, along with promoting motivations and Incentivisation to change the User behavior to see an increased usage of it’s offerings.

Being an Ecosystem offering, Practo technically has potential to unlock value for all the stakeholders – Point a provides context for Doctors and Consumers, Data solutions for Medical Supplier can help with better Inventory Management and better profitability, for auxiliary service providers – providing the health care records and SAAS offerings will unlock higher economic efficiencies & allocations.

e) Enablement Competence: With it’s competence for Tech and strategy to focus on Data, Practo equally has a potential to build strong Enablement competence – of mass procuring the supplies over a scale realizing better economies to the service providers and enabling similar Platform solutions for all stakeholders in the ecosystem as it helps the entire value chain with respect to better planning, capacity creation & management, demand forecasts and inventory management over optimized shelf life.

f) Disrupting the Consumer Behavior practice: While most of the healthcare in the existing state is highly reactive and pre-decided with multiple service providers offering different solutions (dentists, opticians, physician, gyno etc), Practo’s ultimate challenge will be to make it proactive along with bundling of different services with a proactive-reactive combination which can ultimately be transformed to a Subscription based practice and offering. While definitely a long shot, but it will definitely set in standardization in value, experience, higher cognizance of health and healthcare.

g) Building an Organisation: With Practo on a High Impact – High Growth trajectory, equally with a potential to disrupt the ecosystem, it should equally focus now on transforming itself from a Startup to Organisation with increased focus on mechanisms of institutionalization, governance for Operational Excellence, People Strategy & Human Capital, Collaboration, Innovation, Culture & binding all of this to Practo’s Purpose, Business Model and Organisational Strategy.

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