Adoption of big data and analytics in mobile healthcare market

AbstractWearable device and BDA bring opportunities for healthcare sector.BDA adoption strategy is investigated by stylizing an analytical model.The effects of the privacy risk and healthcare efficiency are discussed.BDAs influence on social welfare is analytically pointed. This paper investigates the impact of big data and analytics (BDA) on health IT market competition as well as health IT providers optimal BDA adoption decisions. To capture the specific characteristics of BDA in healthcare, we simultaneously model BDAs healthcare efficiency and privacy risk from consumer perspective and BDAs benefit and cost from provider perspective in a stylized two-dimensional product differentiation framework. The results indicate firms optimal pricing strategies with the dynamic of BDAs efficiency and privacy risk. In addition, BDAs influence on firms outcomes and social welfare are analytically pointed. Theoretically, this study has potentials to provide foundations for future big data research by stylizing an analytical model to understand firms BDA adoption. Practically, insights for business managers on how to optimize strategies of BDA adoption, and for social planners on how to conduct better policies to improve healthcare service quality by promoting BDA adoption in healthcare, are derived.