In respect of expanding the adoption of health information technology, the HITECH Act applies to healthcare organizations and medical practices that benefit from the Medicare and Medicaid programs. (It had suffered a similar fate some years before in digital watches.) Therefore, much of the early interface efforts should address such questions as what industry is the company in, what are the conceivable market opportunities, and what are the market development priorities? While this in itself was a major breakthrough, the late R. Lee Waterman, former CEO of Corning, saw a different and unique application for this material (trademarked PYROCERAM). It also introduces accountability for Business Associates and vendors of personal health devices, who – in addition to HHS sanctions – can now be subject to civil and criminal penalties for data breaches. (For details on our research, see the insert.). The company-specific study focused on the high-tech business-to-business sales force of a single, but premier, comprehensive computer producer-marketer. Being the first person at WordStream to take the lead on customer marketing, I had to build the role from the ground up…seriously, we had zip, nothing, nada! 5. “Listening to the Voice of the Marketplace,” Business Week, February 21, 1983, p. 90. 8. As the first high-tech marketer, Thomas Edison, observed, “First, be sure a thing is wanted or needed, then go ahead.”. Companies competing in the same industry forming a cooperative R&D venture. This example of a company taking advantage of corporate-research separation highlights the need for ongoing top management attention to the linkage problem. The Department of Health and Human Services’ Office for Civil Rights must also be notified of breaches within the same time frame if the breach impacts 500 or more individuals. A few high-technology companies, such as Apple Computer, have even looked to consumer-goods marketing professionals to provide marketing leadership. These variables are also known as the 4 P's of marketing or the product marketing mix. Technological … The high-tech marketers surveyed register strong dissent to the notion that the R&D people’s involvement with a new product ends when it is turned over to marketing; 85% encourage a continuing role for R&D. Philip Maher, “CAD/CAM Vendors Plot a New Course,” Business Marketing, April 1983, p. 66. Not necessarily. The final HITECH omnibus rule significantly tightens the HIPAA marketing restrictions. The primary purpose of the HITECH Act is to improve the quality, safety, and efficiency of healthcare by expanding the adoption of health information technology. The rewards of cross-pollination of ideas among divisions come from triggering previously undiscovered market applications or correcting competitive shortcomings in product quality. Backing up the high-tech marketing team are the traditional specialized support organizations, mainly advertising agencies and marketing research firms, as well as other consultants. Seconding his view, Edward W. Ungar, head of Battelle Memorial Institute (one of the world’s foremost contract R&D organizations) remarked, “In corporate R&D, most ideas for new products need to be evaluated against the test of whether or not the product will be accepted in the competitive marketplace.” In applying this problem-solving orientation, Schering-Plough is coupling its discovery abilities with its marketing strengths. 2. Exhibit Conceptualizing the high-technology marketing-R&D interface. We collected the data for this article via in-person and telephone interviews, questionnaires, and studies of specific marketing areas, such as personal selling, distribution channels, and advertising in high-technology companies. Companies that appropriately link the two areas, though, can effectively anticipate, analyze, and exploit market opportunities. The HITECH Act introduced a new requirement for issuing notifications to individuals whose electronic protected health information was exposed in a security breach if the information was not encrypted. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization. See more. Similarly, in the medical field, customer-service people are sometimes part of the marketing team and the linkage activity. For strategic reasons, the company may have placed the high-tech group in a research environment (Silicon Valley, Route 128, or Research Triangle), or an attractive site (Aspen or Austin, for example), or at some distance from headquarters’ distractions. G.D. Searle’s low-calorie sweetener, Aspartame, was discovered accidentally by a lab researcher who was involved with a quite different research project. Allied’s technology broker will promote new marketing-R&D linkage opportunities by asking, in effect, “How about the commercial market opportunities of matching Division X’s technological know-how with the needs of Division Y’s marketing?”. Apple Computer’s president, John Sculley, is right on target; he has mandated that Apple’s top management pay close attention to product development so that more disciplined market strategy will result. Cigarette marketing has created a profitable business for tobacco companies. HIPAA Journal's goal is to assist HIPAA-covered entities achieve and maintain compliance with state and federal regulations governing the use, storage and disclosure of PHI and PII. The linkage in market-driven situations needs to be formal and carefully designed; a high-tech marketing team is a must. Just as there are technically trained top executives who are also good marketers, there are marketing professionals with no technological training who successfully help guide high-tech companies. In contrast, Aircraft sells aircraft wheels, brakes, and brake-control systems to both commercial and military aircraft manufacturers. They were also required to agree to adhere to certain provisions of the HIPAA Security Rule, including the implementation of administrative, physical, and technical controls to safeguard the confidentiality, integrity, and availability of PHI. That in turn has created high levels of employment in the industry—a benefit to society at one level. Turning a longtime technology-driven regulated monopoly into a market-driven competitor is a formidable chore. That evolution is usually not a smooth process. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Several examples offer evidence of the ways revolutionary changes can occur in high technology. Market planning that explicitly recognizes and accounts for the strategic distinction between market-driven and innovation-driven research goes a long way toward yielding better corporate performance. The possible applications of biotechnology are so numerous that the initial battle has been waged for basic patents.2 While forecasters talk of developments ranging from disease-free grains to microorganisms for gobbling up oil spills, the range may be so vast that some companies may delay or ignore entirely important commercial applications. So, in summary, the marketing and development teams work together on the front and tail end of projects, and work independently from project go-ahead to the product testing and evaluation phase. 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