The Global Human Capital Journal

Reports of "Character Building" Market—Significant Parallels with High Tech Bust—Plus, the Emerging Web 2.0 Vein

The sub-prime induced correction of the U.S. financial sector has changed the context around M&A during the last year, and mergers and acquisitions experts met last week to share success stories, lessons learned and admonitions at the Alliance of Mergers & Acquisition Advisors Summer Conference July 22-25, 2008 at Chicago's Wyndham Hotel. I was asked to present a new talk, "Leveraging a Web 2.0 Ecosystem to Grow Your Business," and I had the opportunity to attend some of the other sessions. I'll summarize their key points before adding some thoughts on the promise that Web 2.0 and social networks bring to deal marketing due to significantly decreased transaction costs.

AM&AA members hail from all parts of a rich ecosystem of investment bankers, attorneys, private equity, brokers, intermediaries, CPAs and others who specialize in every aspect of architecting, researching, negotiating and executing deals. To make money consistently in M&A, one needs to know how to identify and manage a wide range of risks. The financial system's painful correction is changing many of the metrics around M&A, but those who can adjust their strategies can do quite well. It's necessary to accept the new conditions and to play by them.

How Consumer-Generated Content Is Contributing to Transparency in Healthcare

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

Consumer-directed healthcare is an attempt to decrease U.S. healthcare costs by giving healthcare consumers (patients) a financial stake in the healthcare they access. At the consumer level, most programs consist of two parts, a high deductible health policy to protect against catastrophic expenses and a health savings account (HSA), which consumers use to pay the majority of their healthcare expenses. HSAs are tax-advantaged: in most cases, the consumer pays for healthcare cost pre-tax (healthcare costs reduce the tax rate). The consumer can save unused healthcare funds for following years.

CDHC will work best when consumers have detailed information about healthcare procedures, outcomes and costs so that they can make better decisions about the type and quantity of care they receive. This is disruptive in many areas of healthcare, where releasing cost and outcome information to the patient is often seen as taboo. Most of the sites below build their business models around advertising and up-selling, as they are free to use by consumers.

How a "Facebook for Health Conditions" Is Redefining Privacy and Collaboration

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

PatientsLikeMe is a digital social network where patients of chronic, life-changing diseases share detailed quantifiable information about themselves, their diseases and their treatments' effectiveness. The goal of the site is to improve quality of life by sharing information.

New Life Sciences Accelerator Leverages Digital Social Network—Inspired by LinkedIn and Facebook

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

The Hershey Center for Applied Research KnowledgeMesh is a new initiative that unites healthcare- and life sciences-focused commercial, academic and government forces in a digital social network.  It is a cutting edge social networking and scientific mapping online community that will drive R&D in the life sciences and high tech. 

KnowledgeMesh is inspired by Facebook and business executive social network LinkedIn.  It is explicitly designed to create and enhance interactions among industry, government, academie, venture capitalists, intellectual property attorneys and the work force.

U.S. Physicians Learn the Power of Professional Crowdsourcing—Consult Each Other in Digital Social Network

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

Sermo is a start-up that was founded by a doctor with a passion, to create a professional community in which often-isolated U.S. doctors can advise each other.  Once confirmed as practicing physicians, members create pseudonyms that are attached to their specialties.  No other information about members is required, but they can volunteer other information about themselves.

The Sermo story reflects the limitless applicability of Web 2.0 collaboration, in healthcare and other industries. 

Renowned Health Center Lets Patients and Employees Share Experiences in Facebook—Podcasts, a New Way to Leverage Multimedia

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

Mayo Clinic is literally a pioneer in that it was founded on the U.S. frontier in the 19th century.  The world-renowned medical center has innovated many of the practices that evolved into the modern medical practice. It became organized as a nonprofit in 1919 and, as the Mayo Foundation, it has played a lead role in supporting medical education at the University of Minnesota Graduate School.

It may be natural, then, that Mayo Clinic began to pioneer the way in enabling patient-to-patient communication with Facebook, one of the most popular public Web 2.0 venues for many-to-many interaction in 2008.  Mayo Clinic practitioners understand the power of word of mouth, which is embedded into its culture.

How Blogs and Wikis Add Value in Global Organizations by Supplementing Enterprise IT—Contagious Grassroots Enthusiasm

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

Business Drivers

Pfizer is the world's largest pharmaceutical company by sales, having in its stable numerous bestselling drugs, from Lipitor, Lyrica and Diflucan to Zithromax and Viagra.  It also has the industry's largest R&D budget, a global workforce and a tremendous need for its people to collaborate seamlessly across boundaries.

All pharmaceutical companies are struggling to invent new drugs because much of the "low hanging fruit" has been harvested, and their R&D staffs need to try new things to discover and bring new drugs to market.

In this case, Pfizer's experience suggests the power of applying Web 2.0 tools internally, a practice termed "enterprise 2.0."

Collaborating with Customers to Achieve Corporate Strategy—How Small Steps Can Lead to Large Impact

Healthcare systems worldwide are criticized for falling short of expectations, and countries like the U.S. which feature aging populations, are rapidly approaching a crisis. Demand and cost will grow, but the system as currently structured will certainly break down unless radical changes are made. Web 2.0's disruptive potential can be part of the remedy: we need to introduce much more accountability and collaboration into all parts of the system. We need to change the paternalistic attitudes that pervade the system, treat patients as active participants and encourage everyone to be more accountable. This series introduces healthcare Web 2.0 innovators.

CDC Business Drivers

CDC's charter is to protect public health. The agency serves as a resource to mitigate the impact of infectious diseases, environmental health, bioterrorism and others. It fulfils its mission by connecting with people and educating the public; it seeks to partner with people to increase their knowledge of health hazards and how to respond appropriately in the face of threats.