Here's How Tech is Disrupting the Traditional Healthcare Market
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Here’s How Tech is Disrupting the Traditional Healthcare Market

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Tech is rapidly shaking up the traditional healthcare market in ways that could be described as both exciting and terrifying. Fortunately for investors, these disruptions are also creating new opportunities to solve some of the biggest health-related challenges facing the world today.

The following infographic from MW Homecare shows how healthcare is being impacted by emerging technologies and startup companies.

Here's How Tech is Disrupting the Traditional Healthcare Market

Healthcare: the big picture

Today’s healthcare industry faces many hurdles that are driving up costs. Political and economic uncertainty, an aging population, and a growing prevalence of chronic diseases are all contributing factors in the global push to find more cost-effective healthcare solutions.

The entire healthcare industry, from insurance providers to drug manufacturers, is seeking opportunities to reduce costs through modern technologies. This is playing into a wider trend towards a more personalized and efficient approach to healthcare. For investors, some of the most interesting crossroads between technology and healthcare may be found in big data, cybersecurity, developing markets, and strategic partnerships.

Big data

The collection and storage of large amounts of medical data, made possible by recent technological advancements, is helping healthcare professionals improve the quality of medical care, from research to diagnosis and treatment.

Investor interest in digital health startups that use big data to improve the efficiency and effectiveness of healthcare is increasing. These companies attracted $5.8 billion in funding in 2015, according to CB Insights – an increase of 20% over the previous year.

Cybersecurity

While technology is disrupting the healthcare industry in many positive ways, it’s also creating new challenges that will need to be addressed with greater urgency moving forward. One issue is the world’s growing reliance on cloud-based technology, which can place personal medical data at risk of security breaches.

Cyberattacks and IP theft are a growing threat to healthcare companies. According to Deloitte’s 2016 Global Life Sciences Outlook, in 2011 the U.K. government claimed that its life sciences and healthcare industry suffered $2.9 billion in losses due to IP theft.

Investment into cybersecurity technology has grown by 235% over the last five years, reaching a total of $3.9 billion in 2015 alone, according to CB Insights.

Developing markets

Currently, each country has its own complex regulatory and compliance systems which act as gatekeepers in the development of medical products. While these systems are necessary in order to ensure the safety and credibility of products before they go to market, they often clash with technology’s rapid pace of innovation.

Although the U.S. has been a leader in health tech innovation, current regulatory and compliance models tend to hold back progression. Digital health companies face heavy regulations in the U.S., which is causing investors to seek out new opportunities in developing markets such as China and India – two nations facing extreme healthcare costs against a backdrop of large aging populations and a rapid increase in chronic diseases such as cancer and diabetes.

China, with more than 185 million residents currently over the age of 60, is set to become the world’s most aged society by 2030. The Chinese government has responded to this looming economic threat by opening up opportunities for private foreign investment into its healthcare sector. As part of China’s recently implemented 13th Five-Year Plan, foreign senior care operators are now permitted to set up wholly–foreign owned enterprises (WFOE) in China, and are eligible to receive tax incentives, administrative fee exemptions and deductions and waivers. Chinese health companies are also seeking opportunities in foreign health technologies that will help China meet its domestic healthcare needs.

Strategic Partnerships

A trend that has been occurring with more frequency in recent years is the establishment of partnerships between tech giants and healthcare startups. For example, by partnering with Epic Systems in 2014, Apple’s Healthkit platform was able to integrate substantial amounts of patient data to leverage its digital health and tracking technologies.

Mergers and acquisitions within the digital health tech space have also been steadily growing over the last few years. In fact 2016 has been a record-breaking year for digital health tech M&A, with 41 deals in total – a solid increase over 2015’s total of 36 deals and 2014’s total of 33 deals. Many of these mergers and acquisitions are strategic moves by healthcare retail companies looking to build up their marketing presence and customer interaction platforms.

As technology continues to act as a catalyst for rapidly changing market dynamics within the healthcare industry, it is likely that strategic partnerships, co-investments, and M&A will continue to be key drivers of growth.

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How Big Tech Revenue and Profit Breaks Down, by Company

How do the big tech giants make their money? This series of graphics shows a breakdown of big tech revenue, using Q2 2022 income statements.

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In the media and public discourse, companies like Alphabet, Apple, and Microsoft are often lumped together into the same “Big Tech” category. After all, they constitute the world’s largest companies by market capitalization.

And because of this, it’s easy to assume they’re in direct competition with each other, fiercely battling for a bigger piece of the “Big Tech” pie. But while there is certainly competition between the world’s tech giants, it’s a lot less drastic than you might imagine.

This is apparent when you look into their various revenue streams, and this series of graphics by Truman Du provides a revenue breakdown of Alphabet, Amazon, Apple, and Microsoft.

How Big Tech Companies Generate Revenue

So how does each big tech firm make money? Let’s explore using data from each company’s June 2022 quarterly income statements.

Alphabet

breakdown of Alphabet's revenue streams and profit

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In Q2 2022, about 72% of Alphabet’s revenue came from search advertising. This makes sense considering Google and YouTube get a lot of eyeballs. Google dominates the search market—about 90% of all internet searches are done on Google platforms.

Amazon

breakdown of amazon's revenue streams and profit

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Perhaps unsurprisingly, Amazon’s biggest revenue driver is e-commerce. However, as the graphic above shows, the costs of e-commerce are so steep, that it actually reported a net loss in Q2 2022.

As it often is, Amazon Web Services (AWS) was the company’s main profit-earner this quarter.

Apple

breakdown of Apple's revenue streams and profit

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Apple’s biggest revenue driver is consumer electronics sales, particularly from the iPhone which accounts for nearly half of overall revenue. iPhones are particularly popular in the U.S., where they make up around 50% of smartphone sales across the country.

Besides devices, services like Apple Music, Apple Pay, and Apple TV+ also generate revenue for the company. But in Q2 2022, Apple’s services branch accounted for only 24% of the company’s overall revenue.

Microsoft

breakdown of Microsoft's revenue streams and profit

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Microsoft has a fairly even split between its various revenue sources, but similarly to Amazon its biggest revenue driver is its cloud services platform, Azure.

After AWS, Azure is the second largest cloud server in the world, capturing 21% of the global cloud infrastructure market.

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Animation: The Most Popular Websites by Web Traffic (1993-2022)

This video shows the evolution of the internet, highlighting the most popular websites from 1993 until 2022.

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ranking websites by page views 1993-2022

The Most Popular Websites Since 1993

Over the last three decades, the internet has grown at a mind-bending pace.

In 1993, there were fewer than 200 websites available on the World Wide Web. Fast forward to 2022, and that figure has grown to 2 billion.

This animated graphic by James Eagle provides a historical look at the evolution of the internet, showing the most popular websites over the years from 1993 to 2022.

The 90s to Early 2000s: Dial-Up Internet

It was possible to go on the proto-internet as early as the 1970s, but the more user-centric and widely accessible version we think of today didn’t really materialize until the early 1990s using dial-up modems.

Dial-up gave users access to the web through a modem that was connected to an active telephone line. There were several different portals in the 1990s for internet use, such as Prodigy and CompuServe, but AOL quickly became the most popular.

AOL held its top spot as the most visited website for nearly a decade. By June 2000, the online portal was getting over 400 million monthly visits. For context, there were about 413 million internet users around the world at that time.

RankWebsiteMonthly Visits (May 2000)
1AOL400,891,812
2Yahoo387,573,587
3MSN354,239,803
4eBay116,101,785
5Lycos116,064,930

But when broadband internet hit the market and made dial-up obsolete, AOL lost its footing, and a new website took the top spot—Yahoo.

The Mid 2000s: Yahoo vs. Google

Founded in 1994, Yahoo started off as a web directory that was originally called “Jerry and David’s Guide to the World Wide Web.”

When the company started to pick up steam, its name changed to Yahoo, which became a backronym that stands for “Yet Another Hierarchical Officious Oracle.”

Yahoo grew fast and by the early 2000s, it became the most popular website on the internet. It held its top spot for several years—by April 2004, Yahoo was receiving 5.6 billion monthly visits.

RankWebsiteMonthly Visits (April 2004)
1Yahoo5,658,032,268
2MSN1,838,700,057
3Google1,318,276,780
4AOL905,009,947
5eBay805,474,705

But Google was close on its heels. Founded in 1998, Google started out as a simpler and more efficient search engine, and the website quickly gained traction.

Funny enough, Google was actually Yahoo’s default search engine in the early 2000s until Yahoo dropped Google so it could use its own search engine technology in 2004.

For the next few years, Google and Yahoo competed fiercely, and both names took turns at the top of the most popular websites list. Then, in the 2010s, Yahoo’s trajectory started to head south after a series of missed opportunities and unsuccessful moves.

This cemented Google’s place at the top, and the website is still the most popular website as of January 2022.

The Late 2000s, Early 2010s: Social Media Enters the Chat

While Google has held its spot at the top for nearly two decades, it’s worth highlighting the emergence of social media platforms like YouTube and Facebook.

YouTube and Facebook certainly weren’t the first social media platforms to gain traction. MySpace had a successful run back in 2007—at one point, it was the third most popular website on the World Wide Web.

RankWebsiteMonthly Visits (Jan 2007)
1Google7,349,521,929
2Yahoo5,169,762,311
3MySpace1,276,515,128
4MSN1,259,467,102
5eBay957,928,554

But YouTube and Facebook marked a new era for social media platforms, partly because of their ​​impeccable timing. Both platforms entered the scene around the same time that smartphone innovations were turning the mobile phone industry on its head. The iPhone’s design, and the introduction of the App store in 2008, made it easier than ever to access the internet via your mobile device.

As of January 2022, YouTube and Facebook are still the second and third most visited websites on the internet.

The 2020s: Google is Now Synonymous With the Internet

Google is the leading search engine by far, making up about 90% of all web, mobile, and in-app searches.

What will the most popular websites be in a few years? Will Google continue to hold the top spot? There are no signs of the internet giant slowing down anytime soon, but if history has taught us anything, it’s that things change. And no one should get too comfortable at the top.

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