Internet-Based Health Management Exploration Series I: Designing Health Management Like a Product

In my first year on the job, I conducted a series of explorations into the digital transformation of the traditional health management industry. This article serves two purposes: first, to summarize my work over the past year, and second, to share my insights on internet-based health management with readers.

1. Genetic testing products are not yet mature

While conducting data analysis on the population genetic structure of the 1000 Genomes Project at the Chinese Academy of Sciences, I came to recognize the immense value of genetic testing, viewing it as nothing short of an instruction manual for human health. After returning to Chongqing, I was invited by a newly established health management company, which boasted substantial financial resources, to develop genetically tested products with independent intellectual property rights. However, two months later, I proactively proposed halting the development of these proprietary genetic testing products.

23andMe, a biotechnology company backed by Google, is a U.S.-based provider of personal genetic testing services. The company offers its personal genetic testing service for just $99. Users simply need to provide a saliva sample into a test tube and mail it to 23andMe to undergo genetic testing. The resulting report covers more than 240 health-related traits and conditions, and even includes information on ancestry, medical history, and inherited characteristics.

In May 2013, American actress Angelina Jolie underwent a mastectomy based on specific genetic test results to prevent the development of breast cancer. On that day, shares of Myriad Genetics (MYGN) surged more than 4%, reaching above $34, prompting U.S. media to dub it the “Jolie Effect.”

As industry insiders at home and abroad cheered these positive developments, the U.S. Food and Drug Administration (FDA) halted 23andMe’s direct-to-consumer DNA testing health service in November 2013; in February 2014, the China Food and Drug Administration and the National Health and Family Planning Commission jointly issued a notice suspending the clinical application of gene sequencing.

“It feels like you’re driving a train, enjoying hot pot, and singing your heart out, when suddenly you get robbed—leaving you completely shaken. Coincidentally, hello to all the folks working on TV video apps.”

Unlike diagnostic genetic testing, such as non-invasive prenatal DNA screening, genetic testing is based on statistical results to estimate an individual’s risk of developing a particular disease. There are two technological approaches to obtaining genetic information: sequencing and microarray analysis. Disease risk assessment is derived from probabilistic statistics of susceptibility genes. Once genetic data is acquired, the probability of developing a specific disease can be determined by comparing it against standardized databases. The most critical components of genetic testing are data acquisition and algorithm development.

The figure above illustrates an analytical method for studying population genetic structure, clearly demonstrating the differentiation between Japanese and Chinese individuals based on genetic data. In the 1000 Genomes Project, Han Chinese samples are further stratified into two subpopulations: Han Chinese in Beijing (CHB) and Southern Han Chinese (CHS). China is a multi-ethnic country with a rich and complex population genetic structure. Therefore, what issues may arise if one relies solely on bioinformatic calculations yielding a p-value < 0.05, without adequate sample population stratification, molecular biological experimental validation, or clinical verification? A question on Zhihu asks: “Why do analysis results from different gene sequencing companies vary significantly?” Thus, regarding the accuracy of results from currently available commercial genetic testing products, my advice to the public is: believe it if you choose to.

Nevertheless, genuine trends will ultimately prevail; we simply need to wait for that moment. In the future, more affordable genetic testing products and more accurate analytical results will undoubtedly help everyone improve their quality of life.

Are genetic tests selling well now?

With the product priced at around 30,000 yuan, if you can secure two to three high-net-worth clients per month, while simultaneously suppressing base salaries and failing to honor agreed-upon sales commissions, you could still turn a small profit by year-end.

2. Health Management as an Experience Economy

Genetic diagnosis can confirm a disease, whereas genetic testing can only indicate your probability of developing a certain condition. Take BioCapital’s genetic testing product, “iShenPu,” as an example: after testing, users receive a test report and a telephone consultation to interpret the results—advising them to consume less oil and salt, exercise more, and maintain a healthy sleep schedule for better well-being. The most cunning aspect of genetic testing products is this: if you do develop the disease later, it proves the test was accurate; if you do not, it is credited with having alerted you to prioritize your health, thereby fulfilling the role of “preventive treatment.” Please repeat after me: “Rogue!”

From a product-thinking perspective, products should solve users' problems rather than create new ones.

PDCA is a classic quality management methodology, derived from the initial letters of the English words Plan, Do, Check, and Action. The PDCA cycle is a scientific procedure that conducts quality management in this sequence and iterates continuously. We can also apply the PDCA cycle to design health management processes, thereby progressively improving users’ health status. While the Plan and Check phases indeed require data support, the components that truly address users’ health issues are Do and the subsequent Action. Although well-designed, easy-to-read reports can enhance user experience, they still cannot resolve users’ health problems.

Data-collection products such as genetic testing kits or wearable devices cannot help users improve their health outcomes unless they serve as data entry points that connect to specific offline services for executing actions. Currently, many companies in China claim to leverage big data for health management services, but this is merely a marketing gimmick.

At the time, in order to get the genetic testing project off the ground, I infiltrated a small, private enterprise specializing in selling health products to the elderly—a rather low-end operation. The daily routine included morning meetings featuring poorly choreographed, homemade dances, reciting “parchment scrolls” endorsed by the boss, and finally shouting slogans about loving the company and the boss. Such practices were unimaginable in universities and research institutions. Wasn’t it supposed to be only insurance salespeople who behaved this way? Nevertheless, the young female employees in this company, whose educational backgrounds were only slightly better than that of their boss, were actually making real money! They successfully sold products that failed to effectively address the health needs of the elderly.

Returning to the previously mentioned product thinking, the fact that these young women can persuade the elderly to part with their money means they must have addressed a certain need of the elderly: empty-nesters crave familial care, which is a strong demand. After understanding this logical relationship, I realized that I had been too young and too naïve. It turns out that this company is operating within the experience economy; the actual product being sold is these young women themselves. The user experience they provide is akin to having a sweet-talking, considerate adopted daughter who visits frequently, while the health products merely serve as props for payment, similar to Q-coins. This aligns with the classic perspective in traditional marketing that the essence of sales is selling people. So, to all business owners considering digital transformation, have you prepared your company and products for an “internet-personified presence”?

“If you invest just one yuan in health management today, you can save 100 yuan on future hospital bills—and avoid suffering altogether!” Health management companies love to highlight this point in their promotional materials, yet it rarely resonates. While everyone pays lip service to the importance of health, most people only truly recognize its value (and are willing to pay for it) once they have lost it. Consequently, spending on medical treatment and medication consistently outweighs expenditure on preventive care and wellness.

Commerce liberates human nature, which is why the “lazy economy” has emerged. Good products are those that cater to the human tendencies of greed, aversion, and delusion. In middle school biology classes, there is a classic experiment demonstrating how paramecia move toward favorable stimuli and away from harmful ones. This reflects the survival instinct inherent in living organisms, and it is precisely this instinct that has driven human evolution to its current stage. However, the process of health management is inherently painful and counter to human nature—it requires enduring physical hardship, hunger, and deprivation, as the saying goes, “One must first toil one’s muscles and bones, starve one’s flesh, and exhaust one’s body.” You cannot eat what you crave, drink what you desire, or engage in the pleasures you wish to pursue—and yet you expect me to pay for it?

Health management is an experience-based economy; the business focus is not on telling users that persistence alone guarantees success. It requires continuously uncovering both explicit and latent user needs. Addressing users’ health issues represents only the most fundamental level of health management; the core lies in the process through which users improve their health. In product thinking, this is referred to as user experience.

Improving user experience means shortening the entire health management process (or at least making it feel shorter for users) and making it more enjoyable. This fundamental principle applies equally to other industries. Product is marketing; service is marketing. If your product or service can make users happy, ease their burden, and resolve their issues quickly, you won’t even need to engage in marketing—customers will line up to pay you.

A product’s lifecycle may have an end, but our commitment to crafting quality products should be timeless.

Tuo Ying:
A post-90s entrepreneur, member of the VCBeat Entrepreneur Circle. GraduateMajored in Medical Biological Engineering (five-year program) at Jilin University. During my undergraduate studies, I was accepted into the one-year internship program at the CAS-MPG Partner Institute for Computational Biology (PICB), where I independently undertook a portion of research projects and completed my graduation thesis. Subsequently, I took a one-year gap year, embracing a hippie lifestyle. During this interval, I discovered something exhilarating: exploring the possibilities of the world and my own potential.

This article is fromExclusively published by VCBeat with authorization from Tuo Ying. Please cite the source and VCBeat’s WeChat ID: VCBEAT.