Evolution Paths of Business Models in Personalized Medicine

Abstract

As a new personalized health care system is emerging, old roles, rules, and positions gradually decrease in influence and a new constellation of power emerges. To provide a better understanding of possible sources of social and economic value and distribution of surpluses, we find it necessary to map this emerging system. The purpose of this paper is to detect technology development paths and help regulators in the process of designing instruments that will guide the institutionalization of personalized medicine into a socially beneficent, as well as economically sustainable health care model.

Models are conceptual representatives of complex ideas or systems. As such, they carry more or less explanatory power. The same holds true for business models. Essentially, our design of a business model represents a description of (dynamic) power relations that may evolve in the personalized medicine sector. Actors considered in our design are the medical and the pharmaceutical sector, the insurance industry, the IT industry, educators, regulatory institutions, agencies and bodies, NGO-s, etc.

The paper starts by identifying the meaning, dynamics, and economic implications of personalized medicine. Further on, the authors provide a list of relevant stakeholders, analyze their roles and changing power positions.