PracticalDermatology

The “Internet of Things” (IoT) is the network of physical objects or “things” embedded with electronics, software, sensors, and connectivity to enable objects to exchange data with the manufacturer, operator, and/or other connected devices … IoT allows objects to be sensed and controlled remotely across existing network infrastructure, creating opportunities for more direct integration between the physical world and computer-based systems, and resulting in improved efficiency, accuracy and economic benefit … Experts estimate that the IoT will consist of almost 50 billion objects by 2020.

—Wikipedia, 2015

This Wikipedia definition indicates that the “Internet of Things,” or IoT, is gaining momentum and creating vast opportunities. Understanding IoT may be easy for techies, but some physicians may be left wondering, “What exactly does this mean, and what does it have to do with my practice?” Technologies made possible by IoT are important because they are streamlining the way healthcare is provided and likely will be universal in all areas of healthcare businesses in the near future.

IoT is not a fad or passing trend. Soon practices can expect cloud-based technologies to have a major impact on how patient data analytics of purchase patterns and history are obtained. IoT also creates opportunities for marketers to better understand and track customer preference and behavior. And, IoT technologies are as helpful in the operating room as they are in the marketing department. For instance, IoT aids in patient safety by helping surgeons account for all instruments when completing a surgery.

This article’s aim is to prepare you for the shift by explaining, in easily understood terms, IoT technologies that are being used and developed today in healthcare.

Current IoT Technologies

The most commonly used IoT technologies are quick response (QR) codes, push notifications, and beacons.

Quick Response (QR) codes. QR codes are those black and white squares with digital graphics that have been used in stores for checkout purposes for years. Today they are commonly placed on in-office procedure and product labels/displays for a variety of purposes. This technology allows patients the convenience of obtaining more information by scanning the code with their phone. The information can be read at a later time and relieves patients from the burden of conducting their own research later. Additionally, QR technology eliminates the need for paper handouts, which cost money to generate and often end up in the trash. QR codes can be used for sharing business cards, maps/directions, patient instructions, and much more. This technology is often tied to in-store marketing activities. For instance, if a patient scans a QR code when purchasing a procedure/product at the checkout window, the patient would be notified immediately that he or she can purchase other complementary office procedures/products at a reduced rate. QR codes evolved from a technology known as radio frequency identification device (RFID), which is commonly used in retail stores to prevent customers from stealing.

Push notifications. Push notification enables the sending of uniquely targeted messages to patients at specific times, with the ultimate goal of enhancing the customer experience. The name “push” comes from the idea of “pushing” a customer to do something. Very advanced aesthetic practices use push notifications to communicate with customers, for example to let them know they are due for their next treatment or are currently offering a special program. Pharmacies use them to remind customers that it is time to refill their prescription. A nonmedical example many are familiar with is airlines and travel companies using push notification technology to communicate flight delays or gate changes. Another example is a department store sending the following type of message to anyone within 10 miles: “Sale at our store today on all skin care products. Come in between 8 a.m.–5 p.m. for an additional 20% savings.” This is an example of push notification combined with beacon technology (described in the next section).

Beacons. Beacons detect the location of patients with an approximation (between five and 10 miles), which makes in-office marketing and tracking potentially more effective and detailed. For instance, beacon technology makes it possible for health care businesses to send push marketing notifications to a patient’s device when he/she gets close to or is at the office (as previously described). In addition to announcing spontaneous sales, these notifications can remind patients it is time to purchase a product or procedure, make a follow-up appointment, or pick up a prescription. Or, they can be used to alter an interactive display when a patient is in the vicinity. The data collected via beacons can also be used for practice analytics to track and measure the flow of patients in specific areas of a practice. Most smartphones and watches are equipped with applications communicating with beacon devices located in practices. Beacons are a form of Bluetooth low energy (BLE) technology, which most people associate with wireless headsets and keyboards. Analysts see the future of the aesthetic medicine sector in BLE applications like beacons. For example, in the future, aesthetic practices will be able to install beacons in their offices and use them to send tailored offers and notifications to patients depending on their status (i.e., new vs. returning).

Endless Implications

The IoT is changing the way medical businesses function. As IoT technologies progress, healthcare professionals will continue to have access to better data collection and improved business applications that create frictionless experiences for patients. Historically, aesthetic patients are technologically advanced individuals and will most likely have already seen/experienced IoT technology in action (e.g., car door openers, thermostat controllers, and push notifications). Most customers will not be surprised by these changes because they tend to understand and embrace the fact that connected devices are improving the way they live. In fact, they likely will expect it. The IoT will only get bigger and better. Now it is up to providers to decide if they are ready to jump on board. n

Elmer Books is a management consultant with the Allergan Practice Consulting Group, of Allergan, Inc., a specialty pharmaceutical company based in Irvine, California. He consults with dermatology and plastic surgery practices in the areas of financial analysis, practice valuations, practice efficiency, human resource issues, internal and external marketing, leadership training and team building, sales training, compensation, and other general practice management issues. Mr. Books has more than 20 years of sales and management experience. Prior to joining the Allergan Practice Consulting Group, he served as a Botox® Cosmetic Development Manager in Philadelphia. Before that, he served in a number of sales and management positions in the pharmaceutical and medical device industry, including sales representative for breast implants, facial implants, and liposuction equipment; national and field sales trainer; manager of pricing and marketing; and director of sales and marketing. He has participated in corporate marketing initiatives that included planning, pricing, and strategizing the launch of several new product lines.