Leverage on disruptive technologies

With a commitment to disruptive innovation, the provision of public goods such as education may be far less costly and more accessible in the future

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JEFFREY D. Sachs, Professor of Economics and director of the Earth Institute at Columbia University in the United States, is both a prolific writer and creative and erudite public intellectual.

In a recent commentary  in Project Syndicate,  Sachs has written an important piece titled Service Without Tears (www.project-syndicate.org/commentary/sachs184/English).

In this article,  Sachs points out that “a productivity revolution in service-sector delivery is now possible”.

Drawing on the example of how information technology has revolutionised the classroom,  he points out that “information technology is revolutionising the classroom and driving down the costs of producing first-rate educational materials. Many universities are putting their classes online for free, so that anyone in the world can learn Physics, Math or Economics from world-class faculty.”

I can attest to the way information technology is having an effect on my  work. All of my lectures are recorded and videoed, and students who otherwise might not have had the chance to access my lectures now have them. Readings and other resources are put online,  increasing accessibility.

Sachs makes the argument that the “same breakthroughs now possible in education can occur in healthcare”.

While  he points out the problems when key costs in healthcare are effectively controlled by associations and business interests which “act like monopolists, driving up costs”, the fact is that improvements in information technology and our capacity to communicate can significantly aid in addressing some of the critical issues we face in healthcare.

Sachs says: “Far too many people end up in the emergency room and the hospital because they lacked the advice and help to keep their conditions under control without institutional care, or even to prevent their disorders entirely.”

Companies that are practising disruptive innovation are  helping individuals to monitor their own conditions and connect them through  Information and Communications Technology (ICT) to experts who can advise them when necessary.

The use of community health workers to reach out to patients saves the costs of visiting a doctor and reintegrating people into community both through the use of ICT and the cheaper mechanism of increasing community outreach is making the cost of healthcare decline.

In a previous column, I discussed the importance of disruptive innovation (Disrupting The Status Quo, Learning Curve, Oct 30, 2011).  Sachs’ article reminds us that disruptive innovation is not just an idea.

It is a reality and governments and other health providers will increasingly take an interest in disruptively innovative ways to make healthcare more accessible and less costly just as is occurring in the educational sector.

Due to a combination of  creative delivery practices, advances in information technology and a commitment to disruptive innovation, the provision of public goods such as healthcare and education may in the future be far less costly and more accessible to all.

Many of our arguments in regard to social inclusion and  justice are in large measure debates  on the amount of finance given to public goods.  Through disruptive innovation, the cost of providing accessible and decent healthcare and education can be lowered.

The fundamental commitment of a community and nation to the principles of sustainability and inclusiveness can be met through accelerating multiple forms of innovation and creative uses of technology.

Such innovation can enable Malaysia to reach the goal of economic transformation in healthcare and education.

Leveraging advantage from low-cost structures and accelerating capacities in information technology and other disruptive technologies when combined with new ways of working may lead to a renewed confidence in Malaysia’s ability to advance the public good.

Such measures may allow  the country to overcome the tendency that increased competitive pressures have on accentuating inequality and social exclusion.

Malaysia can improve and expand on its already very good record of delivery of public goods, such as education and healthcare, through the use of disruptive innovation, technological applications and innovative ways of thinking about service provision.

These  approaches can help to make real the holistic aims of growth, inclusiveness and sustainability as outlined in the New Economic Model (NEM).

Sachs concluded his article and discussion of healthcare provision  by pointing out that “smart healthcare is therefore holistic”.

I want to expand on Sach’s argument and suggest that the smart provision of public goods and the transformational effort to base an economy on inclusiveness, sustainability and growth as outlined in   NEM is also holistic and, ultimately, disruptive.