3. 3Confidential Information
36 YEARS in the health information industry
The leading provider of drug knowledge
The market leader in evidence- and experience-based
clinical improvement checklists at the point of care
Leading provider of care management guidelines
and software for health insurers and providers
The most comprehensive EHR system for homecare
and hospice agencies
Delivering our solutions abroad to Europe, the Middle
East, and AsiaPac
Rapidly prototypes and incubates new product ideas
developed internally
Investing in startups that offer disruptive health IT
solutions
Software platform for health plans to ensure compliance
with federal and state requirements, and manage the
health plan members’ clinical requirements
177 Million
insured individuals3
84%
patients discharged1
4 Billion
prescriptions processed2
47 Million
home health visits4
OUR MISSION
To guide the most important care
moments by delivering
vital information
into the hands of everyone who
touches a person’s health journey
1 Annually, from US acute care hospitals
2 Annually, US
3 Total current number as of February 2016, US
4 Total of 12-month period from March 1, 2015 to February 29, 2016,
US
OUR REACH
OUR NETWORK
7. 7Confidential Information
• Features, extensions,
variants, and cost reductions
• Incremental improvements
• Existing markets and
technology
• Faster commercialization
• Example: MCG Multi
Condition
HORIZON 1
• Adjacent growth
• Next generation products
• Existing markets and
technology no currently
addressed
• Example: CareBook, Swift
HORIZON 2
• New markets
• New technologies
• Example: Prism, MedProof
HORIZON 3
INNOVATION TARGET
HEARST NETWORK INNOVATION LAB
8. 8Confidential Information
FINANCIAL FILTERS
Market size
Annual revenue potential
EXECUTION FILTERS
Confidence on the potential to execute on technical/engineering/product requirements
Likely to proves business hypotheses in 1 year
STRATEGIC FILTERS
Unique competitive advantage
Level of competition and noise already in the market
Confidence that this is an important pain point for customers
TEAM FILTERS
Team passion for the idea
PARENT COMPANY FILTERS
Confidence in alignment with Hearst Health
PIPELINE FILTERS
13. 13Confidential Information
HEARST HEALTH INNOVATION
LAB
INGREDIENTS FOR SUCCESS• Autonomy
• Hearst culture
• Dedicated budget
• Supportive executives
• Private corporation
• Patience
• Brand
• Sister companies with
deep resources
14. 14Confidential Information
• Lab personnel career growth
• Slow pace of software adoption among healthcare buyers
• Regulatory uncertainty
• (Lack of) Interoperability
• 3-5 years from idea to profitability
• Scaling of our innovations after “graduation” from the Lab
• Aligning incentives, priorities, and vision with our sister companies
ONGOING CHALLENGES
15. 15Confidential Information
NEW MODEL:
HH PARTNERSHIP AGREEMENT
• This Product PartnershipAgreement (PPA) provides the foundation for
shared product development activities between the Innovation Lab and
Zynx Health (ZH).
• The PPA includes our shared vision, scope, and assumptions; and outlines
the methodology for gating decisions during the course of product
development. It is a living document that may require revision as the
product plan evolves.
• The PPA is executed between the Hearst Health Chief InnovationOfficer
and the operating company executive sponsor(s).The intended audience
for this agreement includes Hearst Health senior leadership; ZH product
development staff; and the members of the Hearst Health Innovation Lab.
16. 16Confidential Information
PARTNERSHIP MILESTONES
Low-Fidelity MVP
Value Proposition(s)
Defined
Pre-discovery
Sales Pitch
Post-discovery
Sales Pitch
Business & Customer
Hypotheses and
Technical Feasibility
Demonstrated Contract/LOI
• T-shirt sizing of
Budget, Resources &
Timeline
• Early Problem
Identification
• Problem Validation w/
Customers & Channels
• Definition of Technical
Feasibility
Requirements
• Definition of Customer
Value Proposition(s)
• Definition of Business
Value Proposition(s)
• Definition of Business
Model
• Development of Low-
fidelity MVP (e.g.
”Early Adopter
Program”)
• In depth Customer &
Channel Validation
• Finalize Customer
Value Proposition(s)
• Finalize Business
Value Proposition(s)
• Finalize Business
Model
• Validate Technical
Feasibility
• Go-to Market w/ Low-
fidelity MVP
• Initial Go-to Market w/
a Higher-fidelity MVP
• Market & Partner
Company Research to
finalize Budget,
Resources, & Timeline
• Finalize Problem
• Preliminary Customer
& Channel Validation
• Finalize Project
Charter
DISCOVER
IDEATE
DEVELOP
VALIDATE GO TO MARKET
17. 17Confidential Information
BUSINESS
OBJECTIVES
The <XXX Product> will allowZH to:
• realize $XXM in aggregate gross revenue in 3 years after product launch
• break even inYear 4
• operating margin on product ~ X% or better
• $XM in capital available inYear 1 (+ another $XXX in operating expenses)
• remain relevant in the world of value-based payments
• create a new core product line for Zynx
18. 18Confidential Information
HHIL – ZH PARTNERSHIP SCOPE
SUCCESS CRITERIA (AT 9 MONTHS, PRIOR TO
HANDOFF)
(TBD when product concept is more solid)
1. Customer commitment to purchase the product
2. Buy-in from the sales team
3. Demonstrate scalability
EXCLUSIONS/OUT OF SCOPE
1. Do not stray outside of value-based purchasing
2. Any revenue share still has to meet business objectives
3. HHIL prototypes are throw-away, not production level code.
19. 19Confidential Information
We must be
alarmingly
enterprising, and
we must be
startlingly
original, and do
new and striking
things which
constitute a
revolution.
-William Randolph Hearst
