Case study 1:
The CEO of UHG, Stephen has an unusually calm day today except that his iPhone keeps beeping every now and then. Amongst all the micro-news, the one which still has his attention is “ESI predicts adherence to medicines with 90% accuracy”.
Stephen has seen United Health Group(UHG) becoming the market leader in the healthcare payer space and sustaining the position for the last decade (see Appendix 1,2). UnitedHealth Group5 (NYSE: UNH) is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better. With headquarters in Minnetonka, MN., United Health Group offers a broad spectrum of products and services through two business platforms: United Healthcare, which provides health care coverage and benefits services; and Optum, which provides information and technology-enabled health services. Through its businesses, UnitedHealth Group serves more than 80 million people worldwide. It has recently gone through a re-organization in 2011 (see Appendix 3)
Its core business is the healthcare insurance market and the sales channels consist of typical entities of agents, brokers and online portals. It also works in the pharmacy business segment with its captive Optum Rx. Optum Rx has been catering to UHG customer needs in the pharmacy benefit segment. However, it’s not the core business of UHG.
One of the key goals of this year is to consolidate the business and focus on increasing the diminishing lead between UHG and its peers.
Meanwhile another headline from the IBN news feed read, “Consumerism and medical personalization the way to the future”. Stephen, who had witnessed the trends since last 30 years (see Appendix 4) was unsure on how much was it a fact and how much a hype. He had seen lot of these predictions wither away with time (see Appendix 5). Moreover, even if it was to stay, tying these to his business goals, does it really make sense? Also, the bigger question is “How ?”.
While having a big picture view, Stephen suddenly recollected last Friday meeting with the Board of director – “We got to think about Optum, it’s not our core” ? - referring to term and concept by Prahalad and Hamel in “The core competence of the corporation”(see Appendix 6)
However, it wasn’t a product business they were in, and isn’t the core competence itself changing over time? In the dynamic world, where product and service cycles have been shortened by more than 3/4th of its time in the 80’s , doesn’t it make sense to redefine the role of competencies ?
Stephen just has a calm day in his office calendar, but his mind is busy asking and answering a lot of baffling questions.
He dials in the number of Cognizant consulting lead, who had helped them in numerous such dicey situations. She listens to Stephen and schedules a meeting next Monday.
Stephen takes a sigh of relief when she says “We know what has been on your mind; let’s demystify the uncertainties over future and what to do with Optum in next week meeting. I shall block your calendar for an hour”
Stephen eagerly awaits the next Monday meeting, while looking out of his magnificently crafted window pane, seeing the tangy orange sun, setting its course for a new morning tomorrow.
The CEO of UHG, Stephen has an unusually calm day today except that his iPhone keeps beeping every now and then. Amongst all the micro-news, the one which still has his attention is “ESI predicts adherence to medicines with 90% accuracy”.
Stephen has seen United Health Group(UHG) becoming the market leader in the healthcare payer space and sustaining the position for the last decade (see Appendix 1,2). UnitedHealth Group5 (NYSE: UNH) is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better. With headquarters in Minnetonka, MN., United Health Group offers a broad spectrum of products and services through two business platforms: United Healthcare, which provides health care coverage and benefits services; and Optum, which provides information and technology-enabled health services. Through its businesses, UnitedHealth Group serves more than 80 million people worldwide. It has recently gone through a re-organization in 2011 (see Appendix 3)
Its core business is the healthcare insurance market and the sales channels consist of typical entities of agents, brokers and online portals. It also works in the pharmacy business segment with its captive Optum Rx. Optum Rx has been catering to UHG customer needs in the pharmacy benefit segment. However, it’s not the core business of UHG.
One of the key goals of this year is to consolidate the business and focus on increasing the diminishing lead between UHG and its peers.
Meanwhile another headline from the IBN news feed read, “Consumerism and medical personalization the way to the future”. Stephen, who had witnessed the trends since last 30 years (see Appendix 4) was unsure on how much was it a fact and how much a hype. He had seen lot of these predictions wither away with time (see Appendix 5). Moreover, even if it was to stay, tying these to his business goals, does it really make sense? Also, the bigger question is “How ?”.
While having a big picture view, Stephen suddenly recollected last Friday meeting with the Board of director – “We got to think about Optum, it’s not our core” ? - referring to term and concept by Prahalad and Hamel in “The core competence of the corporation”(see Appendix 6)
However, it wasn’t a product business they were in, and isn’t the core competence itself changing over time? In the dynamic world, where product and service cycles have been shortened by more than 3/4th of its time in the 80’s , doesn’t it make sense to redefine the role of competencies ?
Stephen just has a calm day in his office calendar, but his mind is busy asking and answering a lot of baffling questions.
He dials in the number of Cognizant consulting lead, who had helped them in numerous such dicey situations. She listens to Stephen and schedules a meeting next Monday.
Stephen takes a sigh of relief when she says “We know what has been on your mind; let’s demystify the uncertainties over future and what to do with Optum in next week meeting. I shall block your calendar for an hour”
Stephen eagerly awaits the next Monday meeting, while looking out of his magnificently crafted window pane, seeing the tangy orange sun, setting its course for a new morning tomorrow.
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