Innovation in healthcare delivery systems

Innovation in healthcare continues to be a driving force in the quest to balance cost containment and health care quality. Innovation is considered to be a critical component of business productivity and competitive survival [Zaltman, et al., 1973]. Product innovations are essential to the life of any organization since they provide the most obvious means for generating incremental revenues [Johne, 1999]. Similarly, process innovation is concerned with improving internal capabilities [Johne and Davies, 2000; Johne, 1999] and safeguarding and improving quality [Johne, 1999].

In 2005, industryweek.com did a study about the effects of innovation on a company and they found that, ―overall revenue growth (78%), customer satisfaction (76%), growth in revenue from new products or services (74%), increased productivity (71%), and earnings/profit margins (68%) were a result of the impact of innovation efforts. [Jusko, 2008].

In medical career, innovation represents major track for improvement, intentionally was or running in present. As known innovation importance could be never been split up from opportunities creation and investement vehicles drawing. Features characterized innovation in work little far from the process of invention while in many circumstances there are a line of demarcation between them in form of sponsorship linkage. Moreover; how far innovation as a working concept serves and support target steps in maximal threshold. Paperwork is prone to costly errors.

Sastry argues that huge savings can be realized by more and better use of electronic recordkeeping, employing software that can detect mistakes and issue prompts [Grose, 2008]. Innovation of medical procedure and process reflects dirctly high degree of flexibility and convenience among patients and end users.  Patients should be able to have immediate access to their own records and be able to transmit or carry it from one healthcare provider to another. Innovation has become a critical capability of all healthcare organizations [Lansisalmi, et al., 2006].

In addition, new digital information, nanotechnology, semiconductor products, and genetic engineering are revolutionizing health care, making old assumptions invalid and creating unanticipated prospects for innovation and improvement of existing processes [Govindarajan, 2007]. The last century has produced a proliferation of innovations in the health care industry aimed at enhancing life expectancy, quality of life, disgnostic and treatment options, as well as the efficiency and cost effectiveness of the healthcare system [Varkey, Horne and Bennet, 2006].

Definition of innovation in many categorize scale pertaining the procesdures, steps and delivery process of medical products. Numerous theories, opinions and vision descriping the innovation. The intentional introduction and application within a role, group, or organization, of ideas, processes, products or procedures, new to the relevant unit of adoption, designed to significantly benefit the individual, the group, or wider society‖ [West, 1990]. This definition is largely accepted among researchers in the field [Anderson, et al., 2004], captures the three most important characteristics of innovation: (a) novelty, (b) an application component and (c) an intended benefit [Lansisalmi, et al., 2006].

In line with this definition, innovation in healthcare organizations are typically new services, new ways of working and/or new technologies [Lansisalmi, et al., 2006]. From the patient’s point of view, the intended benefits are either improved health or reduced suffering due to illness [Faulkner and Kent, 2001]. The Advisory Committee on Measuring Innovation in the 21st Century Economy (2007) defines innovation as the design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational structures, or business models for the purpose of creating new value for customers and financial returns for the firm.‖ [Varkey, et al., 2008]. Full healthJ