Strategic Awareness in a Time of Disruptive Innovation

By Rose O. Sherman, EdD, RN, MSN, NEA-BC, FAAN

I had a conversation with a colleague the other day about Amazon’s move into the healthcare space. She works in a health system where Amazon has one of their satellite headquarters and has targeted the state for both virtual and on-the-ground services. There are no strategic discussions in her organization about the potential implications of Amazon Care. The rationale is that Amazon is not seen as a competitor. This reaction could prove to be a huge mistake. Many companies (Kodak, Books a Million, the Publishing Industry) did not anticipate innovative disruption and suffered the consequences. Assuming that Amazon will just stay in the primary care or urgent care space is shortsighted.

Healthcare leaders often say that healthcare is both complex and highly regulated. Moving into the healthcare space without extensive experience is both costly and complicated. While parts of this argument are true, healthcare is a 3.6 trillion dollar industry. The US Healthcare system’s fragility and lack of coordination were on full display during COVID night after night. Scott Galloway, an NYU professor and marketing expert points out that the current healthcare system is emerging from the pandemic with financial losses. Simultaneously, the four behemoth technology giants interested in moving into healthcare have lots of resources to invest.

It surprised me that Amazon Care might not be seen as a threat. 62% of US households have Amazon prime accounts and are very satisfied with their services. By their purchases, Amazon knows a great deal about their customers and can do some strategic marketing. They enter the healthcare space without plans to make big investments in infrastructure. Amazon leaders are supply chain experts who can offer services in the home, including lab and pharmacy. Most notably, they plan price transparency – something younger consumers crave and most healthcare systems don’t do. They could exacerbate healthcare workforce shortages and are actively hiring both RNs and ARNPS as part of their delivery model.

Nurse leaders, regardless of their roles, need to maintain a strategic awareness of these trends. Read general business publications like the Wall Street Journal that track healthcare trends and challenge the lack of price transparency in the current system. Corporate leaders want to lower their costs, and healthcare is a logical place to look. Don’t assume that your market share is solid and your customer base is loyal. You may be surprised.

Galloway S. (2020). Post Corona: From Crisis to Opportunity. New York: Penguin Portfolio.

Launch 2021 by giving your leadership team the gift of a highly rated webinar – Nursing Leadership in 2021: Rebooting after a Life-Quake A Nursing Leadership Reboot Workshop

Read the Nurse Leader Coach – Available at Amazon and Other Book Sellers.

Now Available to Strengthen Your Leadership in 2021 – The Nuts and Bolts of Nursing Leadership: Your Toolkit for Success