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Construction Of Healthengine Business Model Canvas


Task: To be completed individually, you are required to prepare a business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings.
Before commencing, you must seek your lecturer's approval to undertake an analysis of the business you have chosen. The type of organisation that should be identified for study is one that is relatively new, innovative in how they operate, and have most likely been established in the last five years.

Assessment Criteria:

  1. Provide a succinct description of the business, the industry in which it operates, the market or markets it serves, and the products and services it provides (10%)
  2. Deconstruct the business model of the selected business using the nine building blocks in Osterwalder & Pigneur’s canvas (20%)
  3. Explain the key interrelationships that exist across the nine building blocks (20%)
  4. Identify and discuss the critical success factors the business has to get right to achieve sustainable success (10%)
  5. Evaluate what factors might impact the success of the business model (10%)
  6. Discuss the changes you would make to the business model if this was your business (20%)
  7. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).


Executive summary
The present report is developed based on the HealthEngine business model which is an Australian start-up organisation. Business model canvas suggested by Osterwalder and Pigneur has been used for understanding the basics of the business owned by HealthEngine. All the nine aspects represented within the HealthEngine business model canvas are interrelated and their level of interrelation determines the success of the organization; the same has been investigated in this project, to determine the extent to which HealthEngine has succeeded in establishing itself in the market. The recommendations for the company for its improvement has also been investigated and stated in this report.

HealthEngine business model refers to the overall plan of a business that helps to generate profitability and corporate the business successfully by identifying the sources of revenue, target market, details of financing, the products and services to sell, key partners and resources. According to Felin, Gambardella, Stern & Zenger (2019), it is important for the new start-up organisation to possess a strong business model for attracting investments, recruit, motivate and retain talented employees and gain profitability and competitive advantage. The present study effectively deconstructs the HealthEngine business model, an online platform for the patients in order to search and book appointments with doctors, dentists, and psychologists.

Description of the business
HealthEngine is regarded as the largest patient network based in Australia. The organisation has provided the patients based in Australia the opportunity to connect with their preferred healthcare providers through the online platform. HealthEngine was founded by Marcus Tan in the year 2006 (HealthEngine. 2020). The organisation is providing services to around 7 million Australians who used to make 30 million bookings online through HealthEngine. The company makes the use of different cost, time and effort saving tools that makes the practices to meet the demand of the patients much easier. Apart from that, the organization is also gaining an increased level of consumer engagement and loyalty with the usage of such tools. The total amount of funding that the organization has received till now is $20.2M. The revenue generation of the organization per employee was recorded to be $50.6K. The estimated annual revenue of HealthEngine is $4.1M. The number of employees in HealthEngine was estimated to be 80 (HealthEngine. 2020). KelDoc, Zesty, and Doctify are the major competitors of the organization in Australia.

Deconstruction of the HealthEngine business model
The HealthEngine business model has been explained using the business model canvas of Osterwalder & Pigneur. (See Appendix 1)

  • Key partners: Investors such as Go capital fund, Larsen ventures, Alium capital, channel partners such as Core plus, technology partners, advertisers, private and public hospitals and clinics, government institutes, IT platform operator, IT platform suppliers, private lawyer buffet.
  • Key activities: The key activities that support the business of HealthEngine are marketing, logistics, and human resource, development of a relationship with industry partners, content development, and customer relationship management.
  • Key resources: Hosting support infrastructure, business knowledge, financial resources, hardware and software development expertise are the key resources for the business of HealthEngine. Apart from that, the knowledge regarding health care services is another resource for the business.
  • Value propositions: HealthEngine makes it easy for healthcare consumers to book healthcare service provider destinations. It provides the patients with the opportunity to connect in a better way with the healthcare providers at any time of the day or night.
  • Customer relationship: Customer relationship is managed by providing adequate training to the employees to understand the requirements of the patients (Yun and Zhao, 2020). The online chat systems, e-mail and the 24-hour customer service also help in solving the queries generated by the patients.
  • Channels: The different channels through which HealthEngine use to develop its relationship with the key partners such as the investors, marketers, technology partners and customers are sponsorships, conferences, seminars and webinars.
  • Customer segments: HealthEngine uses a demographic market segmentation technique in order to segment the market. The customer segments targeted by the company are the patients looking for physiotherapists, dentists, general physicians, psychologists, counsellors, optometrists, paediatrics and other different healthcare professionals.
  • Revenue streams: The organization generated $4.1M turnover from its business that has increased significantly in the last few years.
  • HealthEngine








    Table.1: Revenue of HealthEngine
    (Source: Created by the learner)

  • Cost structure: The salaries of the employees are included in the fixed costs. The variable costs include marketing costs, recruitment-related costs.

Key interrelationships across the nine building-block
The key activities performed by HealthEngine enables the organisations to maintain a strong relationship with its key partners such as the investors, potential buyers, technology partners, suppliers, hospitals and clinics. Therefore there is a strong relationship between key activities and key partners. According to Annarelli, Battistella & Nonino (2019), there is an interconnection between the customer relationship and the key activities of a business. The key activities such as marketing, customer relationship management, and public relation, and customer service help the organisation HealthEngine to maintain strong relationships with the customers. On the other hand, another element of the HealthEngine business model that is the value proposition incorporates the value that an organisation can deliver to the customers. Therefore value proposition is also identified to impact greatly on customer relationship. The value proposition of HealthEngine indicates that it enables its customers to search for and book an appointment with their favourite healthcare provider at any time of the day or night. Such a value offered by the organisation also has a strong link with the key resources.

The key resources of HealthEngine are identified to be strong financial funding ability, human resource capability, and strong business knowledge. In the view of Carter (2018), utilising these resources the organisation has been able to improve the value proposition in order to strengthen the relationships with the customers. The key partners of the company help it in acquiring the key resources. In HealthEngine, the investors have supported the company to increase the funding resources to improve the value proposition. The channels in the HealthEngine business model represent the communication channels through which the organisation can offer value to the customers as well as can communicate with the customers (Biloslavo, Bagnoli & Edgar, 2018). The channels that are used by HealthEngine are its mobile-friendly application, official website, seminar, webinars, and other events. These channels help the company to interact with the three partners as well as the customers and also aids in performing the key activities.

What are the critical success factors identified in the HealthEngine business model? Discuss.
The continuous improvement of the business processes has been identified to be a critical success factor for the majority of the business models in the healthcare support industry (Yoon, Thin, Thao, Im, & Gim, 2018). In the case of the organisation HealthEngine, the improvement of the training of the employees can improve the speed of customer service as well as suggestions given by the employees to the customers. Therefore, the training of the employees can be regarded as a critical success factor for the business. Funding is another important critical success factor in the case of HealthEngine. It has been identified that the business has successfully acquired a fund of $37.8M from different investors. In order to meet the demands of the customers and fulfil the value proposition, the organisation is required to gain more financial resources. 1The competition in the Australian healthcare sector is highly increasing and therefore marketing and advertisements are other critical success factors for HealthEngine.

Evaluation of the factors impacting on the success of the HealthEngine business model
In recent research, Tsironis, Gotzamani & Mastos, (2017) has identified a number of factors that play a major role in the success of business models. Customer relationship management, technology innovation, value proposition, empowered employees and internal marketing are likely to play a positive role in the success of business models in the healthcare sector. The innovation of the business processes can help an organisation to improve the quality of the services as well as reduce the operational cost. Innovation of the technology also enables the network providers to satisfy the changing needs of the customers. On the other hand, customer relationship management with efficient and trained employees can enable a company to meet the changing demand of the patients (Nguyen, Meredith & Burstein, F. (2018). Internal marketing is another factor that helps the health care support service providing companies like HealthEngine to understand the attitude of the customers regarding the delivery of services ensuring long-term success of the business.

Recommended changes to the HealthEngine business model
On the basis of the evaluation of the impact of the critical success factors and other factors in the improvement of the HealthEngine business model, the company can be recommended to make several changes to its business model. The organisation is suggested to increase the number of investors by attracting foreign investors. This would help the company in strengthening its financial resources and improve the value offered to the customers. The organisation is also recommended to strengthen customer relationship management by focusing on social media marketing techniques. Social media would enable the organisation to build a communication channel to develop a relationship with the customers as well as business partners (Yu, Gong, Xu, Jiang & Luo, 2018). Continuous improvement for innovation of the business processes and technologies is also identified to be a critical success factor for HealthEngine, hence the organisation is suggested to focus on developing a culture of innovation and continuous improvement of the business processes and services.

From the above-conducted study, it has been identified that improvement of the HealthEngine business model is a necessary business function in the case of the start-up organisations. In the case of HealthEngine, the critical success factors for the business have been identified to be employee training, funding, marketing and advertisements. These factors are identified to play a positive role to improve the HealthEngine business model. The study has recommended a number of changes to the HealthEngine business model that can help the business to grow further in the future.

Annarelli, A., Battistella, C., & Nonino, F. (2019). How Product Service System Can Disrupt Companies’ Business Model. In The Road to Servitization (pp. 175-205). Springer, Cham.

Biloslavo, R., Bagnoli, C., & Edgar, D. (2018). An eco-critical perspective on business models: The value triangle as an approach to closing the sustainability gap. HealthEngine business model Journal of Cleaner Production, 174, 746-762.

Carter, M. L. (2018). The Creative Business Model Canvas: The Business Model Canvas reimagined for visual artists (Doctoral dissertation, Queensland University of Technology).

Felin, T., Gambardella, A., Stern, S., & Zenger, T. (2019). Lean startup and the business model: Experimentation revisited. Forthcoming in Long Range Planning (Open Access).

HealthEngine. (2020). HealthEngine. Retrieved 30 March 2020, from

Nguyen, Q., Meredith, R., & Burstein, F. (2018). A Comparative study of critical success factors for general and healthcare business intelligence systems.

Tsironis, L. K., Gotzamani, K. D., & Mastos, T. D. (2017). e-Business critical success factors: toward the development of an integrated success model. Business Process Management Journal.

Yoon, S. H., Thin, N. S., Thao, V. T. T., Im, E. T., & Gim, G. Y. (2018, June). A Study on Success Factors for Business Model Innovation in the 4th Industrial Revolution. In International Conference on Software Engineering Research, Management and Applications (pp. 105-127). Springer, Cham.

Yu, K., Gong, R., Xu, F., Jiang, C., & Luo, Y. (2018). Key Success Factors in Healthcare Ecology Integrated Tourism Development. HealthEngine business model Ekoloji, 27(106), 351-355.

Yun, J. J., & Zhao, X. (2020). Rectangular Compass for Business Model Enlargement. Special Issue “Ambedixtrous open innovtion; technology, market and complexity, 71.

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