ROI Case File No.225 | 'The Labyrinth of Nordic Healthcare'

Chapter 1: Evolving Medicine — Between Function and Emotion

The week following the resolution of MercadoSur's VRIO competitive advantage reconstruction case, a serious consultation arrived from the Nordic region regarding healthcare industry-specific issues. The fifth case of Volume XVII "The Challenge of Reproducibility" concerned the mystery of excellent products not being accepted in the market.

"Detective, we develop technically excellent healthcare products, but somehow patients don't choose us. While we exceed competitors functionally, our market share remains stagnant."

NordicHealth Innovation's Chief Medical Officer, Dr. Erik Larsson, visited 221B Baker Street with undeniable confusion. In his hands were advanced medical device technical specifications alongside contrasting market penetration reports.

"We are a medical technology company developing and providing healthcare products across the Nordic region. Our mission is contributing to patient health improvement through cutting-edge research-based products."

NordicHealth Innovation's Technical Superiority: - Established: 1995 (30 years of research accumulation) - R&D expenses: ¥12 billion annually (25% of revenue) - Patent count: 450 (most in Nordic region) - Clinical trials: 95% efficacy proven (industry's highest standard) - Academic papers: 85 annually (world-class level)

The numbers certainly showed technical excellence. However, Erik's expression was marked with deep confusion.

"The problem is that despite our products being technically superior to competitors, we lose in patient selection. I can't understand why 'better products' aren't chosen."

Gap Between Technical Superiority and Market Results: - Main product technical evaluation: Industry #1 (expert evaluation) - Market share: 18% (Industry #3, competitors with inferior technology rank higher) - Patient selection rate: 32% (lower than technically inferior products) - Physician recommendation rate: 78% (high but patients don't comply)

"Physicians recommend our products, but patients actually choose different products. There's a huge gap between technical superiority and patient selection."

Chapter 2: Unchosen Products — The Divergence Between Technology and Choice

"Dr. Erik, what specific products are these, and why do patients choose other companies' products?"

Holmes inquired quietly.

Erik pulled out product materials with a confused expression.

"Our flagship product is 'AdvancedCare Pro,' an advanced home medical monitoring system. Technically, it's industry-leading, but..."

AdvancedCare Pro Technical Specifications: - Measurement accuracy: 99.7% (industry highest) - Data processing speed: Real-time analysis - Function count: 145 types of health indicators measured - AI diagnosis: 95% accuracy in health risk prediction - Medical institution integration: Automatic important data transmission to physicians

Competitor Product A (Market share #1, 35%) Specifications: - Measurement accuracy: 95.2% (sufficient but inferior) - Data processing: Basic analysis only - Function count: 25 types (significantly fewer) - AI diagnosis: None - Medical institution integration: Manual patient reporting required

Competitor Product B (Market share #2, 28%) Specifications: - Measurement accuracy: 93.8% (even more inferior) - Data processing: Simple reports only - Function count: 15 types (minimum) - AI diagnosis: None - Medical institution integration: Monthly report transmission only

I focused on the paradox of technically inferior products being chosen.

"If technically inferior products are winning in the market, patients are selecting based on reasons other than 'technical excellence.'"

Erik sighed deeply.

"Exactly. We believed 'creating the most excellent products would make them chosen,' but reality is completely different. I no longer understand what patients are seeking."

Shocking Facts from Patient Interviews:

Patient A (60-year-old male, hypertension treatment): "AdvancedCare Pro is certainly high-function, but measuring 145 items daily with complex reports is too much. Competitor B's product has fewer measurement items but simply tells me 'blood pressure normal' or 'abnormal,' which is understandable."

Patient B (50-year-old female, diabetes treatment): "I heard from my physician that NordicHealth's product has high accuracy, but when AI randomly says 'risk is 85%,' it makes me anxious. Competitor A's product just says 'good today' or 'attention needed,' which is mentally easier."

Patient C (70-year-old male, heart disease): "I understand it's high-function, but it's too complex for someone like me who's not good with machines. Simple products are easier to continue daily."

"We were providing 'technical excellence,' but patients were seeking 'ease of use' and 'peace of mind.'"

Chapter 3: Jobs Theory Reveals Selection Reasons — The True Motivation for Hiring Products

⬜️ ChatGPT | Catalyst of Concepts

"People 'hire' products. True selection reasons are hidden in jobs"

🟧 Claude | Alchemist of Narratives

"The protagonist of stories is always 'desire.' The desire for peace of mind resonated beyond products"

🟦 Gemini | Compass of Logic

"Misunderstanding jobs causes any strategy to spin wheels"

The three members began analysis. Gemini deployed the "Jobs Theory" framework on the whiteboard.

Core Concepts of Jobs Theory: - Job to be Done: Work customers want to "hire" - Functional Job: Practical, rational problem-solving - Emotional Job: Emotional, psychological desire fulfillment - Social Job: Social status and identity-related

"Dr. Erik, let's analyze the true reasons patients 'hire' healthcare products using Jobs Theory."

Jobs NordicHealth Assumed: - Functional Job: "Want to measure health status accurately" - Product Design Philosophy: Respond with high precision, multi-function, advanced technology - Expected Customer Behavior: Rationally select high-performance products

However, Actual Patient Jobs:

Detailed Patient Job Analysis:

60-year-old Male Patient Jobs (Hypertension): - Functional Job: "Want to manage blood pressure" (Importance: Medium) - Emotional Job: "Want to ease health anxiety" (Importance: High) - Social Job: "Don't want to worry family" (Importance: High)

50-year-old Female Patient Jobs (Diabetes): - Functional Job: "Want to control blood sugar" (Importance: Medium) - Emotional Job: "Want peace of mind in daily life" (Importance: High) - Social Job: "Want to maintain normal life" (Importance: High)

70-year-old Male Patient Jobs (Heart Disease): - Functional Job: "Want to understand heart condition" (Importance: Medium) - Emotional Job: "Don't want to think about complex things" (Importance: High) - Social Job: "Want to live independently" (Importance: High)

Claude reported a shocking discovery.

"This is an important discovery. Patients' top priority job wasn't 'functional jobs' but 'emotional and social jobs.' NordicHealth specialized in jobs patients weren't seeking."

Job Priority Reversal Phenomenon:

NordicHealth's Product Design (Function Priority): 1. Functional Job: High-precision measurement (top priority) 2. Emotional Job: Not considered 3. Social Job: Not considered

Actual Patient Priorities (Emotion/Social Priority): 1. Emotional Job: Peace of mind, anxiety reduction (top priority) 2. Social Job: Daily life maintenance (important) 3. Functional Job: Sufficient accuracy is fine (minimum)

Jobs Theory Analysis of Competitor Product Success:

Competitor A Product (Market #1) Job Response: - Emotional Job: Simple and understandable → Peace of mind provision - Social Job: Easy to use → Independent living support - Functional Job: 95% accuracy → Necessary and sufficient

Competitor B Product (Market #2) Job Response: - Emotional Job: Two-level "good"/"attention" → Anxiety reduction - Social Job: Simple operation → Reduced family burden - Functional Job: 93% accuracy → Minimum cleared

NordicHealth Product Job Response: - Functional Job: 99.7% accuracy → Excessive quality - Emotional Job: Complex data → Increased anxiety - Social Job: Complex operation → Independence hindrance

Most Serious Discovery: "Too Excellent Product" Reverse Effect

AdvancedCare Pro was functionally perfect but had negative effects on emotional and social jobs.

Chapter 4: The Power of Peace of Mind — Discovery of Invisible Value

Detailed job analysis and patient behavior research revealed the structure of "true value" in healthcare products.

Importance of "Peace of Mind" as Invisible Value:

Patient Decision-Making Process Analysis:

Traditional NordicHealth Assumption (Rational Choice Model): 1. Compare product functions 2. Evaluate technical specifications 3. Select most excellent product

Actual Patient Decision-Making Process (Emotion-Driven Model): 1. "Can I use this?" (Anxiety reduction) 2. "Can I continue this daily?" (Habit formation possibility) 3. "Can I understand the results?" (Cognitive load) 4. "Will this not burden my family?" (Social consideration) 5. Function/accuracy confirmation (final stage)

Detailed Analysis of Peace of Mind Components:

1. Cognitive Peace of Mind - Operation simplicity: Few things to remember - Result understandability: No specialized knowledge required - Error unlikeliness: Fear of failure reduction

2. Emotional Peace of Mind - Anxiety increase prevention: Avoiding excessive detailed information - Positive feedback: Encouraging elements - Gentle warnings: Attention alerts without fear

3. Social Peace of Mind - Independence maintenance: Usage feeling without dependence on others - Burden reduction: Minimizing worry for family - Normalcy preservation: Avoiding special patient treatment

"Peace of Mind Design" Analysis of Competitor Products:

Competitor A Product Peace of Mind Design: - Measurement items: 25 types (within patient understanding range) - Result display: Simple 3-color display (green, yellow, red) - Operation steps: Only 3 steps (easy to remember) - Feedback: "Thank you for today's measurement" (appreciation)

Competitor B Product Peace of Mind Design: - Measurement items: 15 types (necessary minimum) - Result display: Two-level "good"/"attention" (understandable) - Operation steps: One button (simplest) - Feedback: "Persistence is strength" (encouragement)

NordicHealth Product Peace of Mind Hindering Factors: - Measurement items: 145 types (difficult to understand) - Result display: Detailed numbers and graphs (too technical) - Operation steps: 8 steps (complex) - Feedback: "Risk 85%" (anxiety increase)

Most Important Discovery: "Technology is Means, Peace of Mind is Purpose"

For patients, the ultimate purpose of health management is "living daily life with peace of mind." Technical accuracy is merely a means to obtain that peace of mind. When means hinder purpose, it's putting the cart before the horse.

Industry Expert Insight: "The most important thing in healthcare products is patients' 'emotional well-being.' No matter how accurate, products that make users anxious or stressed have negative health effects."

Chapter 5: Detective's Jobs Theory Diagnosis — The Reason for Being Hired

Holmes summarized the comprehensive analysis.

"Dr. Erik, Jobs Theory's essence is 'discovering the true reasons customers hire products.' Functional excellence alone is insufficient; response to emotional and social jobs becomes the determining factor for selection. Especially in healthcare, emotional value called peace of mind is most important."

Jobs Theory Product Strategy Transformation: From "Technology-Centered" to "Peace of Mind-Centered"

Basic Policy: Three Jobs Integration (Integrated Response to 3 Jobs)

Phase 1: Enhanced Emotional Job Response (3 months)

Introduction of Peace of Mind Design:

1. Cognitive Load Reduction - Measurement items: 145 types → 25 types (essential items consolidated) - Result display: Detailed numbers → 5-level evaluation (intuitive understanding) - Operation steps: 8 steps → 2 steps (maximum simplification) - Technical terms: Medical terminology → Daily language (understanding promotion)

2. Anxiety Reduction System - Risk display: "85%" → "Attention needed" (fear reduction) - Recommended actions: "Immediately to physician" → "Consult at next visit" (preventing excessive worry) - Trend display: Only deterioration emphasized → Equal display of improvement (hope provision)

Phase 2: Social Job Response (2 months)

Independence Support Design:

1. Operational Independence - Family instructions: Complex manual → 1-page summary - Troubleshooting: Specialized knowledge required → Self-resolution possible - Setting changes: Technician required → Self-adjustable

2. Harmony with Daily Life - Measurement time: Fixed time → Adjustable to life patterns - Portability: Desktop type → Pocket size - Sound/light: Medical device-like → Natural like home appliances

Phase 3: Functional Job Optimization (Ongoing)

Achieving Necessary and Sufficient Accuracy:

Quality Redefinition: - Traditional: Pursuing technical perfection - New: Pursuing optimality for patients - Accuracy target: 99.7% → 96% (necessary and sufficient level) - Feature reduction: Advanced functions → Optimized for daily use

Continuous Job Research: - Patient job change monitoring - Discovery of new emotional and social needs - Competitor job response analysis - Reflection cycle to product improvement

Expected Effects: - Patient selection rate: 32% → 65%+ - Continuation usage rate: +150% improvement - Patient satisfaction: Significant improvement - Word-of-mouth recommendation: Natural spreading

Investment Allocation Transformation: - Technology development: ¥12 billion → ¥6 billion (efficiency) - UX/emotional design: Newly established → ¥4 billion - Patient research: ¥500 million → ¥2.5 billion (5x increase) - Peace of mind testing: Newly established → ¥1.5 billion

"The key is not 'not fearing failure' but 'actively making good failures.' Through KPT balance recovery, organizations regain motivation for growth."

Chapter 6: Victory of Peace of Mind — True Healthcare Value

Fourteen months later, a report arrived from NordicHealth Innovation.

Results of Product Strategy Transformation through Jobs Theory:

Dramatic Market Position Improvement: - Market share: 18% → 42% (leaped to industry #1) - Patient selection rate: 32% → 71% (significant improvement) - Continuation usage rate: 65% → 94% (industry's highest level) - Patient satisfaction: 3.4/5 → 4.8/5 (overwhelming improvement)

Integrated Response Results to 3 Jobs:

Functional Job (Necessary and Sufficient Accuracy): - Measurement accuracy: 96% (maintaining necessary and sufficient level) - Measurement items: 25 types (within patient understanding range) - Processing speed: 3 seconds (practical level) - Medical integration: Automatic notification of important matters only

Emotional Job (Peace of Mind Provision): - Cognitive load: 90% reduction (operation/understanding simplification) - Anxiety reduction: 85% of patients answered "peace of mind improved" - Positive feedback: "Encouraged" 93% - Fear reduction: "Not scary" 89%

Social Job (Independent Living Support): - Operational independence: 98% of patients "can do alone" - Family burden: 75% reduction (no explanation/support needed) - Daily harmony: "Part of normal life" 92% - Social participation: "Feel no restrictions" 87%

Changes in Patient Voices:

Patient A (60-year-old male): "The new AdvancedCare has fewer measurement items but I understand everything I want to know. The 'blood pressure good' and 'blood sugar attention' displays are sufficient. No more worrying about complex numbers, making every day easier."

Patient B (50-year-old female): "I used to get anxious every time I saw measurement results, but now the 'you worked hard today' message encourages me. Health management has become a positive habit."

Patient C (70-year-old male): "Even someone like me who's not good with machines can use it easily. I gained confidence in managing my health myself without bothering my family."

Business Results: - Annual revenue: ¥38 billion → ¥65 billion (71% increase) - Operating profit margin: 8% → 18% (efficiency and premium pricing) - R&D efficiency: +200% improvement (focus on true needs) - New product success rate: 40% → 85% (Jobs Theory application)

Competitive Environment Changes: - Industry value standards: Technical specifications → Patient experience transformation - Competitors: Started imitating NordicHealth's peace of mind design - New market entry: Patient job understanding became entry requirement - Healthcare professionals: Emphasize "products patients can continue"

New Value Creation: - Emotional well-being: Established new indicator in health management - Peace of mind engineering: Opened new field in healthcare product design - Job research center: Continuous patient needs investigation system - Industry standardization: Contributed to establishing patient-centered design industry standards

Erik's letter contained deep gratitude and realization:

"Through Jobs Theory, we transformed from 'technology for technology's sake' to 'technology for patients.' Most important was understanding that patients seek not perfect measurement but peace of mind in daily life. Functional excellence is a prerequisite; emotional and social satisfaction determines selection. Now we can create products that patients truly appreciate, which is our greatest joy. Jobs Theory is the ultimate method for listening to customers' true voices."

Detective's Perspective — The True Reason for Hiring

That night, I pondered deeply about the essence of customer selection behavior.

NordicHealth's case vividly demonstrated the deep chasm between "functional excellence" and "customer selection." Especially in emotionally charged fields like healthcare, psychological peace of mind becomes a more important selection factor than technical performance.

Jobs Theory's true value lies in its ability to structurally understand the multi-layered motivations when customers "hire" products. Only by including not just functional jobs but also emotional and social jobs can we see true customer needs.

In the context of Volume XVII "The Challenge of Reproducibility," NordicHealth's transformation provided important insights. To gain reproducible customer selection, we must accurately understand the jobs customers truly want to "hire" and continue providing products and services that respond to them.

"Customers don't buy products. They hire products for jobs they want solved"

This Jobs Theory insight has the power to bring revolutionary transformation to product development across all industries. The next case will also explore the gap between customers' true needs and corporate provided value.

"True customer understanding means understanding the jobs customers want to hire. Functional excellence is just the starting point; emotional and social satisfaction is the goal." — From the Detective's Notes