Service Innovation Framework In Complex Healthcare System

Abstract:  In the last two decades, Innovation in healthcare has brought about a significant transition from the conventional methods relating to activities within the healthcare system such as medical record journaling and patient diagnosis and additionally to the way clinical care is delivered to the patients. Service innovation as opposed to product innovation is the integration or positive increment of new or existing services cumprocesses in the system through the introduction of new methods, techniques, or abstract services. Healthcare industry is primarily a service driven sector. As compared to other industries it is unique given its setting. It is emotionally vulnerable, highly sophisticated and encounters life-death situations on a daily. Service innovation holds the key for large private multi-speciality to move forward.As of now, numerous challenges plague the healthcare sector such as increased healthcare costs, reduced monetary and ethical quality of clinical value care. Service innovation holds the key especially for large private multi-speciality to move forward towards. Inclusion of ancillary services such as rehabilitation,testing, nursing, emotional care coupled with digital service innovation (Telemedcine, Electronic health records, billing systems) overcome challenges of efficient billing, remote diagnosis, emotional burnout, and high medical expenditure for patients.The purpose of this thesis to underline the need for service-based innovation and its framework in correlation to a complex healthcare system. Case of an upcoming super-speciality Venkateshwara hospital located in New Delhi, India is analysed to answer the research question and understand theoretically the conflicting nature of barriers of different stakeholders involved in the process. Currently, most literature is centred around the importance of product innovation, with lacking focus on concept of service science. The study fills the gap by providing an exhaustive approach of defining service-based innovation within healthcare setting and addressing difference between product drive logic and service dominant logic. Additionally, a new service model is implemented utilizing NK Kauffman model and Greenhalgh’s (2008)eight pillar model.Since the Hospital is a private entity, paradox specific to healthcare that is “ethical vs economical” conundrum is assessed through primary empirics. Complexity of a tertiary healthcare organization is addressed in relation to the level of interrelatedness between services innovation. Venkateshwara as a multispeciality service system ranks into a highly complex organisation with high interrelatedness between varying components. Study is qualitative with explorative nature. Primary data is collected via semi-structured interviews and physical observation of the organization, while secondary data is collected via official website and brochures. Triangulation method serves the purpose of data analysis and rigour. Data Analysis section uses thematic coding to generate themes and complexity of Venkateshwara Hospital is mapped through component and interrelatedness graph.The discussion section puts forth detailed overview of over-arching and sub-themes coupled with collected data(Primary and secondary) to highlight the significance in need for service innovation. Results formally answer the research question. New services such as value-based care and telemedicine are discussed. Challenges specific to Venkateshwara hospital are put forth and categorized by needs of different stakeholders when implementing the service innovation framework. Concluding remarks include future need of service innovation. Lastly, theoretical, and practical implications of the study are provided.