I need a response to my classmate below:
United Healthcare Group (UNH) Incorporated is a diversified healthcare organization with four distinct subsidiaries that operate in four segments (Yahoo!, 1): UnitedHealthcare provides health insurance coverage for population segments (i.e. individual vs. organization insurance; medicare/retirement, etc.) primarily based in the US in addition to a UnitedHealthcare Global Coverage division; OptumHealth which provides care directly through local medical groups and ambulatory care systems, including primary, specialty, urgent and surgical care to 99 million consumers.; OptumInsight which provides health sector data analytics, AI technology and consulting to public and private organizations, particularly in terms of more efficient revenue cycle management and cost optimization measures; and OptumRx provides an array of pharmaceutical products and services which help individuals and public/private healthcare groups, such as the acquisition of respective medicinal product purchases at low costs when feasible (UNH, 2).
Describe one idea to generate substantial top-line revenue growth.Choosing the best option to leverage the most optimum levels of top-line growth – which is more focused on gross sales and revenue (Hart, 3) – for this conglomerate has been a challenge. But, in consideration of readings gathered from Sherman’s first chapter, where he asserted that there are three strategic imperatives that drive sustainable growth (Sherman, 4), I gravitated towards highlighting two of the three pillars of his theory: Business alignment and continuous innovation.In this regard, I chose to identify the creation of a analytical forecasting tool, a product of OptumInsight’s AI research and development, that would serve to consolidate funnel global news, social media, influencer commentaries on key sites about trends happening around the globe that is related to key words from environmental shifts, to local disease spottings, in the hopes of creating a predictive model that would anticipate the next round of potential pandemic in the future. This product will be web-based software predictive analytics solution, that can be downloaded by users who also get to upload data that can be used to enhance knowledge as it is received. Such an idea will generate gross sales at effective unit prices for membership at set time periods (similar to membership of an elite knowledge sharing group), or via ad-hoc report downloads based on data points and/or cuts that can be requested as needed.The creation of such a knowledge repository and its constant updates, support Sherman’s first strategic imperative: Continuous improvement. Investing in the development and launch of such technology will bring business alignment and a collaborative approach to the other segments of UNH. Specifically, having the fostered capability of an AI product such as this one can enable better actuarial predictions that help bolster more effective insurance products and services. AI predictive tools like this one can also help determine what supplies, pharmaceutical products can be mass produced and sold at optimum rates. And of course operational expenses related to staffing and equipment can be better managed if volumes of ambulatory needs can be anticipated at specific time periods, when such technology is generated.
Do you predict your idea will generate short-term growth, long-term sustainable growth, or both?In review of Sherman’s framework captured in Chapter 4, Figure 4.1, such a knowledge portal, when priced right and utilized by the right segment of customers, will generate organic growth (Sherman, 5) as product innovations enable the creation of new markets, that generate revenue growth and which increases traction, stock price appreciation and dividend investment. The rate of growth that takes place with new product innovations such as this is pretty instantaneous when the right amount of publicity is applied, and with correct timing and product launch initiatives are established. Pre-launch anticipatory media, some snippets of benefits to organizations seeking to acquire such knowledge, and having the right individuals discuss pros and cons at consumer-based chat communities will certainly generate a “buzz” leading to short-term growth. The sustainability of momentum from there will depend on how stable and constant the data flow (i.e. of new trends) as well as the rate of how updates are made to ensure relevancy. I anticipate, again with the proper planning and execution, long-term sustainable growth will occur – not just because gross sales are attained at target and beyond, but also because bottom-line growth – which refers to the ability of organizations to optimize cost while also generating revenue (Hart, 2) – is maintained through the savings UNH can obtain from targetted investments on insurance coverage products, pharmaceutical supplies and overhead investments in primary/ambulatory care. Such savings will be possible if the predictive tool does indeed identify trends leading to focused purchases and investments of current and non-current assets.
How can you keep your competitors from easily copying your strategy?This is where a tight-locked procees or Software tool patent (and therefore a vigilant Legal team at UNH) is key. Trademarked software, with knowledge/process protection clauses, will prevent quick duplication of protected data-gathering methodologies.
What costs, systems, or capabilities are necessary for this growth to occur?UNH should conduct organizational assessments on where it wants to head when it comes to investing in capital in hopes of expanding operations leading to growth. In the case of AI technology, merger and acquisition initiatives are the surest and quickest way to grow if investment in the right organization is done right. This prove successful to UNH when it acquired Change Healthcare, which is a tech organization specializing in revenue cycle management (Landi, 6). In my mind, this strategy is a necessary plan to enable growth.
I need a response to my classmate below: