With just 24% of healthcare orgs reporting that they are currently monetizing their data (but an additional 40% angling to join them this year), the data product development space is ripe with opportunities for innovative healthcare technology providers. With services like the Snowflake Marketplace connecting hundreds of data providers and offering more than 2,800 live, ready-to-use apps and AI products, the barrier to entry for organizations looking to turn their data into a revenue stream has also never been lower in many ways.
Nevertheless, healthcare product development is a multifaceted endeavor that demands a confluence of technical know-how, regulatory awareness, and marketplace savvy. As a result, recruiting and retaining the talent needed to navigate the development process can be a challenge, even for data mature organizations. For many enterprises in the space, the solution has been to look for external help, with 84% of healthcare and life sciences organizations reporting that they will need a moderate to large amount of external support to achieve their data goals this year.
In this introductory guide, we’ll explore the essentials of developing a data product in healthcare and how partnering with experienced data experts like Hakkoda can help healthcare technology providers see better returns on their data platform investments.
Understanding the Unique Challenges in Healthcare Technology
Healthcare technology involves a distinct set of challenges that significantly impact product development. Medical data is complex, frequently unstructured, and highly sensitive, requiring rigorous measures to ensure data accuracy and patient confidentiality. Stringent patient privacy and security regulations add layers of compliance that must be strictly adhered to, complicating the development process.
Interoperability is another major hurdle. New data products must integrate seamlessly with existing healthcare systems and technologies to be effective, necessitating robust compatibility and communication protocols. Additionally, the need for real-time data processing and analytics requires advanced infrastructure and technical capabilities.
Addressing these challenges demands not only technical expertise but also a deep understanding of healthcare workflows and regulatory environments. Successful product development in this space hinges on the ability to navigate these complexities while delivering reliable, secure, and compliant solutions.
Key Considerations Before Developing a Data Product
Before embarking on data product development, healthcare companies should first identify the specific problem the product will address and who the intended audience for the data product is. This requires thorough market research and stakeholder engagement to gauge demand and potential impact.
Clearly defining the scope and objectives of the data product is also essential. Companies must outline core functionalities and expected outcomes to set a clear development roadmap. Additionally, evaluating technical feasibility and resource availability is crucial.
Assess whether your team has the necessary skills and tools for execution. If not, partnerships or external expertise may be needed. Financial planning, compliance requirements, and risk management should also be factored into the development process.
Success Stories: How Hakkoda Helped a Major Health Technology Provider Develop a Scalable Data Product
Facing the challenge of automating Snowflake provisioning and account management as a critical component of a product development initiative, a major health technology provider sought to improve their data delivery capabilities across over fifty therapeutic areas. Partnering with Hakkoda, they aimed to streamline the creation and management of Snowflake accounts, enhancing data accessibility and operational efficiency while automating hard-to-scale manual processes.
This automation allowed the health technology provider to quickly and securely establish new Snowflake accounts for their clients, reducing manual intervention and minimizing the risk of errors. The solution included advanced observability features, enabling real-time monitoring and troubleshooting, which ensured continuous performance and reliability.
Security was also a top priority. Hakkoda incorporated robust encryption and access control measures to safeguard sensitive health data, aligning with stringent compliance requirements. This fortified the provider’s data environment against unauthorized access and potential breaches.
The collaboration yielded a scalable data product that could handle increasing data volumes and user demands without performance degradation. By leveraging Hakkoda’s technical capabilities, the health technology provider not only achieved greater efficiency but also enhanced their ability to deliver vital data insights across various therapeutic areas.
Leveraging External Data Expertise for Successful Product Development
Developing healthcare products is a complex task that requires a breadth of technical knowledge, industry expertise, and marketplace awareness. For many organizations, recruiting and retaining the talent necessary to develop a data platform from start to finish is a challenge in its own right—especially as these same enterprises juggle the equally crucial work of minimizing disruptions to their existing operations. For this reason alone, the value proposition of leveraging an external partner is a considerable one.
Engaging with a trusted and seasoned data partner can provide the necessary expertise and resources to navigate these complexities efficiently without putting undue pressure on internal teams and their ability to carry out other mission-critical operations. Specialized data experts bring in-depth knowledge of the modern data stack, cloud infrastructure, and cybersecurity measures essential for developing scalable and secure healthcare data products. In the case of data partners like Hakkoda, these experts also come equipped with the industry experience necessary to navigate the space’s matrix of regulations and requirements.
Ultimately, collaborating with a data expert enables healthcare technology companies to focus on their core mission—improving patient care through innovative solutions—while ensuring their data products are secure, compliant, and ready to meet the demands of an ever-evolving industry.
Ready to unlock new revenue streams with a scalable and secure data platform that expands your addressable market? Talk to one of our experts today.
