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American Well Write Up

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MIS 513 Business Foundation for IT Case Analysis of American Well Shiqi Zhang
American Well is a tele-health company whose ultimate goal is to substantially increase the value proposition of the patients and reduce the medical process cost. Before 2009, one of the major service for American Well was to build a platform that can connect people and doctors instantly via secure video. Up to 2009, due to the incentive of increasing internet use, the founder of American Well, Ido and Roy Schoenberg were planning to launch an initiative for new service, Team Edition, which involves the PCP (primary care physician) and specialist into the existing online medical service system. American Well believed that interaction between patients and PCP or specialist would be significantly improved and also the patients’ waiting time would reduce from weeks to minutes because of the introduction of Team Edition. During this business expansion, American Well was facing with a strategic decision of when is a more appropriate time to launch the new undertaking. Launching it early may meet the concern of how to adopt the limited resources between its major core service and the new Team Edition service. On the other hand, if American Well waits too long, the other companies may seize this opportunity and gain the lead on the online medical service market. Moreover, American Well was also facing several options in market, such as hospital, retail clinics, online care, and international expansion. Therefore, a detailed analysis should be fulfilled before the decision was made.

SWOT analysis
Strength
Implementation of the advanced service, such as Team Edition, will make American Well obtain the advantage to catch the lead in the US market. Furthermore, American Well will also have the opportunity of process the intellectual property of the similar kind. This intellectual property is an entry barrier for other competitors.

Weakness
Resources are limited at American Well for developing multiply service simultaneously. Also American Well is lack of brand awareness to the public market compared with other companies.

Opportunity
The current time-consuming process of the traditional medical service is the largest opportunity for American Well to launch the new service, especially with the fact that the interaction with specialist or PCPs always take much longer. Also the online communication between doctor and patients should be delivered in a much lower cost compared with the traditional medical service. Furthermore, the international market hold a huge potential to be developed.

Threats
The privacy will become an issue if the medical report of patient will be available not to a specific doctor or specialist.

Key Stakeholders Analysis
Patient
For patient, they can get the medical service with a much lower price within a much shorter waiting time. The patient who need to follow up with the specialist or PCPs now can schedule the appointment at their initial visit or online service with their doctors instead of waiting for weeks to schedule appointments. Also the patient would face with an ample database of available doctors from anywhere in US irrespective of where the patient really is.

Insurance Companies
With the new platform of medical service, insurance companies are able to allow the access from nonmember who are willing to pay out-of-pocket. This is a field insurance companies haven’t touched before and will result in adding revenue to them. Additionally, open to non-insured members will label the insurance companies as goodwill. Moreover, conducting the online medical service will also resulting in reduction of cost for insurance company.

Doctors
The doctors who involved with the online medical service will result in significantly reduction of the working load and unnecessary diagnosis, since the patients should choose doctors depending on specialization. The working hour for doctors are more flexible, even work at home, compared with the traditional medical service model.

American Well
American Well was facing with an opportunity of business expansion in the field. American Well can also built up its brand during this innovation and likely expand into international market once they have strengthened their position in US market.

Porter’s Five Forces Analysis
Industry Competitors – High
There are several competitors in the market who have the similar product focused on online medical service. Some of the companies are already well established brands in the market, such as CISCO. This will push American Well into a position with tough competition.

Potential Entrants – Low
It is very difficult for a company to enter the online medical care, since the cost for the initial setup were very high. American Well itself have invested $70 million on this project.

Availability of substitutes – High
The traditional offline medical care is still prevails in the market. Also there are several companies have started on developing the online medical service which could be a substitute for American Well service.

Buyer Power – Low
There are only two types of buyers in the market, insurance providers and employers.

Supplier Power – Low
The competition of this particular service is tough which provide American Well a low supplier power status.

Best Solution
After the detailed analysis above, I suggest that American Well should launch the Team Edition service, since this service is an extension of the existing service. The current service will be lack of attractiveness to the key stakeholders mentioned above without the Team Edition, because based on the given data, the patients who need follow-up with specialist or PCPs are not in a small portion, thus, the integration between those two continuous service can better serve the patient. Also this combination will substantially reduce the cycle time for patients of re-visit for follow-up. American Well’s goal is to be the leader in the field of online medical service which should primarily focus on the aspect of lower cost and more convenient. Therefore, launching the Team Edition along with the current core service can provide the patients an environment of choosing doctor anywhere in the nation without waiting in weeks. Also, from the cost perspective, develop and deploy Team Edition will not increase the cost for American Well too much, since they have already have the infrastructure and technology for the same. Lastly, the launching would help American Well to catch the lead on the market. Along with the launching, American Well should also put some focus on the improvement of the current core service, since that is the one attracts customers to use it from the first place. After the completion of the previous step, launching Team Edition and improve the core service, American Well can expand its business into national-wide or even world-wide. It will be possible after American Well establish its brand and strengthen its service in the local market first.

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