the health strategist
institute for strategic health transformation
& digital technology
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO),
Chief Editor and Senior Advisor
October 12, 2023
What is the message?
Epic Systems Corporation, as a dominant player in the healthcare IT industry, is undergoing a transformation by relaunching its third-party app marketplace.
For this transformation to be successful, Epic needs to shift its business strategy from a software-centric approach to a platform-oriented one, embracing principles of trust, neutrality, and openness.
While the transition comes with challenges, it offers the potential for significant benefits, similar to the success of Salesforce’s app marketplace.
The ultimate goal is for Epic to facilitate a thriving ecosystem in which healthcare innovators, developers, health systems, and patients can all benefit, resulting in a win-win scenario for all stakeholders in the healthcare IT landscape.
Executive Summary
In the world of business, digital marketplace platforms and third-party app developers share a symbiotic relationship similar to that of sharks and remora fish in nature. The success of this relationship, much like in the natural world, hinges on cooperation and mutual benefit.
Epic Systems Corporation (Epic) stands as the apex predator in the healthcare IT ecosystem, commanding over one-third of the US market and nearly half of all hospital beds.
As of 2022, they have embarked on a transformative journey, relaunching their third-party app marketplace and vendor program to optimize value and innovation for both parties involved.
The unique challenges of healthcare, marked by misaligned stakeholder priorities, conflicting incentives, complex data structures, and stringent regulations, necessitate a nuanced approach to building and scaling a digital marketplace.
Epic’s transition from a software-centric company to a multi-sided platform business model raises questions regarding their capability as an impartial innovation facilitator in the healthcare domain.
However, the potential benefits, both in revenue and market value, are significant, drawing parallels to the success story of Salesforce’s app marketplace.
To navigate this transition, Epic must implement five key tactics.
- Firstly, building trust with innovators and developers, ensuring an equitable and ethical marketplace.
- Second, aligning stakeholder interests while staying committed to a clear North Star.
- Third, fostering quality interactions to drive value for all, prioritizing validated and relevant solutions.
- Fourth, starting small, being deliberate, and supporting the ecosystem to avoid overwhelming users with options.
- Lastly, being patient, learning from the journey of Salesforce, and understanding that the development of a thriving network-driven marketplace takes time.
In this evolving landscape of healthcare digital marketplaces, success is achievable, provided that Epic and similar organizations make the necessary transition from being apex predators to peaceful cohabitants with the remoras.
This is an Executive Summary of the article “ The Great White Shark And The Remora: Epic’s Revamped Digital Health App Marketplace”, published on Forbes, and written by Seth Joseph.
Long version originally published at https://www.forbes.com.
