Wednesday, June 24, 2015

Health Information Technology: Are we facing another bubble ?

U.S. Technology Funding -- What's Going On? from a16z

Some are comparing today's hot market in HIT to the Internet bubble of 1999.  However there are some significant differences.

The beauty here is its attempt to understand an organic phenomenon. IMO, it's also useful to look at the underlying drivers of (aka, incentives attributable to) that phenomenon. Today's large, "mature," post-IPO firms (Cisco, Apple, Microsoft, Ellie Mae, Intel, just to name a few) do less of their development in-house and rely more on the startup factories to generate new ideas; then the M&A engine kicks in to liquidate and (hopefully) integrate the new ideas. Sadly, most of these large(r) firms are saddled with un-innovative, un-inspired, un-inspiring, and sadly conventional senior managers, hence old thinking. It's too far a cry from the erstwhile "intra-preneuring" of the 70s and 80s to get to market relevancy, aka traction, while the market is still fertile and competitors sitting on laurels. Thanks for sharing this analysis.

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