Should Babylon Health prioritize expanding our telemedicine services or focus on improving our in-person clinic network?

Introduction

The key trade-off we're examining is whether Babylon Health should prioritize expanding our telemedicine services or focus on improving our in-person clinic network. This decision is critical for our growth strategy and resource allocation. I'll analyze this trade-off by considering our business context, user impact, technical feasibility, and resource implications. My approach will involve clarifying the situation, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming our telemedicine services have seen significant growth recently. Could you share how our telemedicine usage has trended over the past year compared to in-person visits?

Why it matters: Helps understand current user preferences and market trends Expected answer: Telemedicine usage has increased by 50%, while in-person visits remain stable Impact on approach: High telemedicine growth would support expansion, while stable in-person visits might indicate a need for improvement

• Business Context: Based on our current revenue model, I'm thinking telemedicine might have higher profit margins. Can you confirm our revenue breakdown between telemedicine and in-person services?

Why it matters: Informs which area could drive more financial growth Expected answer: Telemedicine accounts for 40% of revenue with 60% profit margin, in-person 60% of revenue with 40% margin Impact on approach: Higher telemedicine profitability could justify prioritizing its expansion

• User Impact: I'm curious about user satisfaction rates. How do our Net Promoter Scores compare between telemedicine and in-person services?

Why it matters: Indicates where we're delivering the most value to users Expected answer: Telemedicine NPS is 60, in-person NPS is 50 Impact on approach: Higher telemedicine satisfaction could support its expansion, while lower in-person scores might suggest a need for improvement

• Technical Feasibility: Considering our current infrastructure, what's our capacity for scaling telemedicine services versus expanding our clinic network?

Why it matters: Determines the ease and speed of implementation for each option Expected answer: Telemedicine can scale 200% with current infrastructure, clinic expansion requires significant investment Impact on approach: Easier telemedicine scaling could make it a more attractive short-term option

• Resource Allocation: Given our current team structure, how would you describe our capabilities in telemedicine development versus clinic operations improvement?

Why it matters: Helps understand where we have the most expertise and potential for quick wins Expected answer: Strong telemedicine development team, but limited experience in clinic operations improvement Impact on approach: Stronger telemedicine capabilities might favor that option for faster results