Orange Business Services: a Check-Up on Orange Healthcare

Orange Business Services: A check-up on Orange Healthcare

Analyst: Brian Partridge 29 Jul, 2014

The combination of mobility, high bandwidth, low-latency networks and cloud infrastructure has set the stage for unprecedented disruption in the delivery of all forms of healthcare services. For instance, healthcare service providers (HSPs) around the world are facing unprecedented demand from growing and aging populations and the rising costs of supporting them. At the same time, digital transformation within HSPs is delivering new innovations in care quality, effectiveness and efficiency. In this report we provide analysis of Orange Healthcare, the (former France Telecom) business unit focused on selling ICT solutions within the healthcare vertical across its global footprint. Orange currently provides healthcare services in France, Poland, Romania, the Netherlands, Italy Spain, Austria, the UK, the US, Bhutan, India, Singapore, Mauritius, Senegal, Egypt, Madagascar, Mali, Cameroon, Ivory Coast and Kenya. Despite the fact that Orange – similar to its Tier 1 telecoms competitors in Western Europe – has struggled to achieve revenue growth in the current economic and competitive situation across its territories, its healthcare business has been a significant bright spot and area of focused investment, especially within France.

The 451 Take

The digital transformation under way in the delivery of healthcare services across a spectrum of care scenarios holds massive potential in the long run. There is perhaps no greater example of where technology innovation such as mobility, cloud and wearable computing can bring positive benefit to society. Orange's longstanding commitment to building and improving its healthcare offerings, including the establishment of Orange Healthcare, is one of the best examples of vertical market execution by a Tier 1 mobile operator. Ensuring its fair share of digital transformation revenue will require it to constantly evaluate its local

Context

Orange is one of the world's largest telecommunications operators with annual sales of €41bn during FY2013, 165,550 employees and presence in 160 countries around the globe. Orange's enterprise solutions line of business, Orange Business Services (OBS), is focused on supporting enterprise digital transformations of voice, data (IPVPNs) and IT services (video conferencing, security and cloud). OBS contributed €6.5bn to overall revenues in 2013 (15.8%). OBS has approximately 20,800 employees worldwide (10,000 in France).

In the early 2000s Orange made a strategic decision to focus on building its healthcare business by adding dedicated personnel, solutions and go-to-market partners. This focus culminated in the 2007 creation of Orange Healthcare to better respond to the health challenges where its assets and expertise can help broker an effective and relevant response. The unit hopes to help all players in the healthcare ecosystem through solutions such as telemedicine, remote monitoring, shared medical imaging, connected medical device platforms, total communications and information systems for hospitals and SIM-enabled mobile health identity management. With the help of partners, Orange has equipped hospitals and clinics with software, communications technology and infrastructure to improve the efficiency of healthcare delivery and ROI while keeping patient satisfaction a top priority.

The Orange Healthcare business unit is a central group of about 50 employees in France that works closely with all of the in-country OBS operations, such as in Spain, Poland and France. It uses a global/local market approach due to the fragmented nature of the healthcare vertical: More than most other market segments, healthcare requires localized knowledge and presence to understand the market and regulatory requirements. In many cases, country A in Africa and country B in Western Europe are worlds apart in terms of the underlying business models required for solution viability. The Healthcare Group has three core missions: promote Orange HC capabilities, work with individual groups to design solutions and provide sales support (e.g., assist with RFP responses, present to prospects, etc.).

Copyright 2014 - The 451 Group 2 The Orange Healthcare business unit recently ran an internal seminar called Orange Health Days, which was attended by more than 200 employees, to educate colleagues and generate excitement and new opportunities.

PRODUCT

Orange has bet significant assets and market focus on establishing credentials as a catalyst for improvements in healthcare quality and efficiency on the back of its reputation for a global network, mobility, cloud and data security. The ICT assets are packaged along with significant on-staff healthcare expertise and a growing partner ecosystem. The company has specifically chosen not to focus on acute care management solutions where it might take on significant legal liabilities. Today, the unit applies its expertise to three main areas: health professional services, health management services and prevention services:

❍ Health professional services. Orange focuses on the traditional players in the healthcare sector, such as hospitals, clinics, doctors' offices or independent medical practitioners. These services are designed to interconnect infrastructures, enabling improved coordination, cooperation and fluidity of information exchange between all these players. They make up approximately one-third of Orange Healthcare revenue. One example is Smart Numbers, a solution that routes patient calls to the healthcare workers who can assist based on availability.

❍ Remote healthcare monitoring services. Orange focuses on aspects of healthcare outside the usual treatment environment – for example, at home. These services allow patients to stay in permanent contact with healthcare professionals, making it possible to provide the highest quality care to a wider population and offering more choices in care. Marrying traditional and non-traditional healthcare environments enables high-quality care and condition management within the broader community, giving patients more choice over their models of care. Examples include DiabeTIC in Spain (see below) and a cardiac remote monitoring system launched in partnership with Sorin Group.

❍ Prevention. To prevent health conditions before they arise, Orange brings people the tools and information they need to manage their own health and well-being in the course of their everyday lives – whenever they need to, wherever they are. One example is Healthline, a call center where people can get in touch with healthcare professionals for medical advice.

Today Orange is implementing services such as data hosting for the secure storage of patient medical files, solutions for improved management of medical material and pharmaceuticals, and services for optimized patient experiences including patient reception, bedside multimedia equipment and mobile applications. The Orange Healthcare services are developed for individual

Copyright 2014 - The 451 Group 3 healthcare professionals as well as for larger healthcare entities. Utilizing its R&D capability with Orange Labs, Orange wants to be a go-to partner for healthcare systems to cope with the rapidly growing demand for care as well as anticipate needs in the future. The greatest numbers of Orange Healthcare solutions are deployed in France: the Connected Hospital product line (e.g., safety solutions, room TV, patient appointment management), shared medical imaging, a patient record management system, an appointment reminder solution and tele-consultation in oncology that allows pathologists to give a real-time diagnosis from afar.

We note that OBS offers a full scope of machine-to-machine/Internet of Things (M2M/IoT) solutions – within which healthcare solutions such as remote health services and connected monitoring devices for preventative care carry significant important sector focus. With more than 250 people dedicated to M2M, OBS offers expertise in innovation, integration and vertical solutions – healthcare is among the largest contributors to M2M revenues. The company claims to be the first telecom operator recognized by the French Ministry of Health for the hosting of private medical data. It also claims more than 50 percent of French health practitioners transmit their treatment forms via Orange Internet's dedicated email service in Africa and the Middle East.

The treatment and prevention of diabetes is one of the biggest healthcare challenges facing providers around the globe today. More than 170 million people throughout the world suffer from diabetes, and this figure could more than double by 2030. The challenges range from driving better treatment outcomes to lowering costs. To tackle these challenges, Orange has partnered with medical solutions supplier Sanofi to create the DiabeTIC telemedicine platform. DiabeTIC is equipped with intelligent systems and integrated services, and provides treatment and follow-up for diabetes patients thanks to a system of two-way communication between patients and healthcare professionals. Patients measure their sugar levels using a glucose meter integrated into their iPhone or computer and send these readings to healthcare personnel, who interact in response. For healthcare professionals and entities within the health ecosystem, the benefits generally include improvements in reliability, care optimization and improved proximity.

Orange is actively engaged with key initiatives to promote and establish end-to-end healthcare solution interoperability, common standards and open solutions for health information systems. These efforts include ongoing work as a member of the Continua Health Alliance, both at the board level and within working groups. As an ancillary benefit, working within the Continua Alliance also keeps Orange in regular contact with a like-minded group of healthcare constituents from which strategic partnerships can matriculate as well. Orange Health draws on health data standards including Health Level Seven (HL7), Integrating the Healthcare Enterprise (IHE) and Digital Imaging and Communications in Medicine (DICOM). Orange solutions are compliant with personal health

GO TO MARKET

Most of the time, Orange Healthcare relies on partners to deliver E2E solutions. In the case of medical imaging, for instance, the company will always work with third parties that have imaging experience, medical/software expertise and local support presence. GE is its largest partner in terms of revenue contribution worldwide. OBS leadership doesn't focus on per-connection ARPU as a key performance indicator; rather, it assesses deals more holistically based on present and future potential. Success is not based on the number of SIMs, but the amount and frequency of data collected and how that data can be made available. In the cases where Orange is providing secure connectivity and/or hosting services, it seeks contracts of three to five years.

Orange, through its healthcare services subsidiary Almerys and Morpho, a leader in identity management solutions and secure credentials, jointly created a mobile identity management system for the healthcare sector to extend existing healthcare solutions. Almerys is a key player in the industrial processing of digital data, particularly in the areas of health and paperless transactions. As a specialist in medical payments transactions, Almerys facilitates the practice of third-party payment for health professionals and supports supplementary health insurance organizations in their business operations.

The solution represents a significant breakthrough for healthcare data mobility, enabling secure access to patient data anytime, anywhere and on any device. A successful field trial is under way at Clermont Ferrand University Hospital Center (CHU) in France. OBS and Medasys, a leading French provider of software systems to healthcare institutions, are supporting CHU in the digitization of patient data and in the introduction of Computerized Patient Records (CPR). With its Flexible Computing Santé solution, Orange is hosting the CPR data: personal data associated with patient healthcare and treatment histories.

COMPETITION

The competitive global landscape for Orange Healthcare's range of offerings can be broken into several layers, including networking/connectivity/communications; application development/hosting; cloud services including data storage; managed services; and systems integration and consulting. At every layer are large and reputable competitors that can offer most or all of the stack – with the exception of networking. On the network and connectivity side, pan-European operators such as Telefónica, DT and Vodafone will compete for connectivity-related solutions while domestic operators such as SFR and Bouygues are present in the market. In many instances these global SIs

Copyright 2014 - The 451 Group 5 can be both partners and competitors – even potentially in the same deal. Orange goes above and beyond most Tier 1 operators in its pursuit of healthcare solutions, with research units dedicated to healthcare in Meylan in France and San Francisco in the US.

In every market, there are regional SIs that may compete for application/hosting and integration business to go along with global brands such as Accenture, Cognizant, Computer Sciences Corp. (CSC), Deloitte, HCL Technologies (HCL), HP, Infosys, IBM, PricewaterhouseCoopers (PwC) and Wipro.

SWOT Analysis

Copyright 2014 - The 451 Group 6 Reproduced by permission of The 451 Group; © 2014. This report was originally published within 451 Research's Market Insight Service. For additional information on 451 Research or to apply for trial access, go to: www.451research.com