The US Market for Game-based Learning in Healthcare: Trends and Opportunities

A spoonful of (digital) honey

Key Findings from Recent Ambient Insight Research Serious Play Conference 2011 August 23, 2011

Tyson Greer, Chief Executive Officer

Ambient Insight
Ambient Insight 2010

Introductions
Ambient Insight is an integrity-based market research firm that uses predictive analytics to identify revenue opportunities for suppliers. Ambient Insight founded in 2004 by Microsoft Training and Certification veterans that built the Microsoft Online Institute (MOLI)

International boutique analysis firm specializing in quantitative analysis, learning technology forecasts, M&A analysis, and competitive intelligence Ambient Insight Does not evaluate, compare, or rank the effectiveness of learning technology products Does not endorse or promote companies or products

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Agenda

Introductions Ambient Insights Research Taxonomy Key Findings from Ambient Insight Research Whos Buying and What Are They Buying?

Trends that Energize the Market

Innovative Products and Services on a Wide Range of Topics
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Ambient Insights Research Taxonomy

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Ambient Insights Learning Technology Research Taxonomy

Eight Buyer Segments

Consumer PreK-12 Higher Education Corporations and Businesses Federal Government State and Local Government Associations, NGOs, and Non-Profits Healthcare

Buy Eight Types of Pedagogically-defined Learning Products

Self-paced eLearning Courseware Digital Video, Text, & Audio Reference Collaborationbased Learning Social Learning Simulationbased Learning Game-based Learning Cognitive Learning Mobile Learning

From Four Types of Suppliers

Packaged Content Custom Content Services Software as a Service (SaaS) Tools and Installed Technology

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Key Findings from Ambient Insight Research

The US Healthcare Market for Mobile Learning Products and Services: 2009-2014 Forecast and Analysis The US Market for Game-based Learning Products and Services: 2010-2015 Forecast and Analysis The US Market for Mobile Learning Products and Services: 2010-2015 Forecast and Analysis

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Key Catalysts for Game-based Learning and Simulation-based Learning

Advances in game technology allow for great precision in images designed for instruction
Mobile device ubiquity and continued increases in device capabilities Gesture-based games gaining ground with all ages: Wii & Kinect

Legacy Interactive Heroic Measures

Involvement of academic institutions in game-based learning initiatives and entrepreneurial accelerators supports the learning market
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Key Findings: The US Healthcare Simulation-based Learning and Game-based Learning Markets

The US Healthcare Simulation-based Learning market reached $341.6 million in 2010. The five-year compound annual growth rate (CAGR) is 20.5% and revenues will reach $870.3 million by 2015

Healthcare buyers now pay custom content development firms to create simulation-based patient education

The growth rate for custom development services is 27.8% in the Healthcare segment and revenues for services will reach $204.4 million by 2015

The US Healthcare Game-based Learning market reached $29.5 million by 2010. The five-year growth rate is 16.3% and revenues will reach $62.7 million by 2015

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Veteran and Newcomers Seek the Opportunities in Game-based Learning and Sims for Healthcare Major Health-related brands enter the edugame market:
Bayer; Epocrates; Mens Health Mag; Pfiser; Aetna

Digital content producers partner with publishers and providers:

Legacy Interactive & Reed Elsevier, Pearson; Mayo Clinic & University of Houston; Active Ingredient & Middlesex Univ.

Innovative suppliers create fresh, media-rich, customer-oriented packaged content products:

Nerdcore; Altus; QD Ideas, iAnesthesia; LiveOncePlayHard; Docomo; Benoit Essiambre; Current Clinical Strategies Publishers; Ubisoft
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Ubisofts My Stop Smoking Coach with Allen Carr for Nintendo DS

Whos Buying and What Are They Buying?

Changing Demographics Create New Opportunities

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2010 US Healthcare Learning Products and Services Supply Chain Dependencies

Licensing & certification Buyers boards and associations are buyers and suppliers, and their members are users. Licensing and Pharma and medical Certification Boards device companies are & Associations buyers and suppliers, Diplomates and their staff are users. Pharmaceutical & Medical Device Companies
Licensing & Certification

Users

Healthcare Workers

Diplomates sometimes pay for their own content, but usually access association sponsored content as membership perk

Pharma and Device Sales

Subject Matter Experts

Pharma and Device Sales Organizations Buy and Sell Learning Products as a Marketing Tool

Medical Marketing Suppliers, Licensing Organizations and Colleges, Medical Reference Publishers, Content Services Firms

SMEs are Healthcare Professionals that provide fee-based Subject Matter Expertise Services to Suppliers

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Suppliers

Pharmas Buy Custom Content Services from Suppliers for Patient Education and Product Promotion

Pfizer has released several diseaseawareness apps, including the iPhone Les Meningo game

International awareness app from SanofiAventis

InViVo Communications creates custom games for trade shows and launch events

The continued controversy about the ethical propriety of pharma-sponsored education is causing a drop in pharma funding worldwide.
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Consumers and PreK-12 are the Largest Buyers of Packaged Content

Topics cover alcohol consumption, allergies, anatomy, asthma, brain fitness, cardiovascular health, cognition, dental health, diabetes, emergency response, environmental risk, exercise and fitness, eye health, food and nutrition, pet care, obesity and weight loss, pain, smoking cessation, substance abuse, and safety
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Trends that Energize the Market

"Technology may not directly cure peoplebut it can be used to educate the entire population, from active youth to parents to grandparents, and to help them look after their own health."
Michael Foley, PhD, Executive Director of Bluetooth SIG

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Trends: Personalization of Healthcare

Consumers are changing their relationship with their health and their healthcare professionals. Prior to visiting the doctor, they visit the web The Expert Patient is an engaged, well-informed participant in their healthcare and wellness regimes. They expect more partnership, less paternalism They readily adopt mobile monitoring, patient education, and healthcare professionals products
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Device & Broadband Capabilities Enable Games & Simulations Designed for Students and Expert Patients

Bennoit Essiambre (Speed Anatomy)

Nerdcore Learning (Healing Blade)

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Active Ingredient (Heartland)

Source: Mayo Clinic (Walk nPlay)

Trends: Escalating Enthusiasm for Fitness

Consumers are seeking ways to monitor and manage their physical and mental well being.

A spoonful of honey
A mobile device, always with them, is an ideal partner for reinforcing healthy habits
InViVo

Suppliers tout cognitive fitness games backed by science Medical or scientific endorsements reassure adults and/or parents of credible information via game-play Leading suppliers in the brain fitness industry are: Posit Science, Dakim, CogniFit, Scientific Learning, Lumos Labs, and Vivity Labs

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For PreK-3: Online Games Promote Healthy Food Choices and Encourage Physical Activity
BrainPop Jr is an online site geared to younger children with game topics that include allergies, asthma, exercise, hand-washing, and going to the doctor

Build A Healthy Kid is a drag-anddrop activity to choose healthy foods and activities
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For Youngsters and Elders: Cognitive Fitness Games

Brain Trainer mobile edugames capitalize on fitness trend and moved from Zero to 1st Place in 3 years

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Trends: Increases in Chronic Diseases & Aging Population

Payers and providers recognize the critical need to reduce healthcare costs because
Chronic diseases are steadily increasing One out of every three children born after 2000 will develop diabetes, if current trends continue. US Centers for Disease
Control and Prevention

Obesity is recognized as an underlying cause of many lifethreatening diseases Population demographics has shifted Over-65 demographic represents 12.9% of the total US population, but 70% of home health visits

Seniors at home, in nursing homes or retirement facilities are using online/DVD and gesture-based wellness games
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Innovative Products and Services on a Wide Range of Topics

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For Kids: Adventures in Eating Deliver Game-based Intervention and Positive Reinforcement
Childhood obesity has been linked to Type II diabetes.

Nanoswarm video game by Archimage funded by $8 million grant from the National Institute of Diabetes and Digestive and Kidney Diseases (NIH)

Build A Healthy Kid Kid generator funded by the American Diabetes Association

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Pyramid Pile-up from Archimage on Playnormous.com, with National Institutes of Health and researchers at Baylor College of Medicine, and U. of Texas Health Science Center

For Kids: Pet Health Games also Teach Kids Responsibility

The goal of BrainPops Diabetic Dog Game is not to let the dogs blood sugar get too low.

Legacy Us Pet Pals and Zoo Vet games focus on teaching animal facts in a fun way.

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For Medical Professionals: Reference Content, Exam Prep, and Skill Development
Suppliers create custom content and packaged content for nursing and medical students, and healthcare professionals
Legacy Interactive has partnered with Elsevier (Top Doc, visual diagnosis iPhone quiz) and Pearson (virtual world games, quizzes, and tips)

Pulse!! Virtual clinic training (first-person shooter design) for civilian and military healthcare professionals and students (by BreakAway).
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Pearson Medical Assisting

For Professionals, Corporate, and Consumers: Games and Sims for Safety

Electrical Safety (Etcetera)

Disaster Hero (Legacy Interactive) Table top game, and live events (Disaster Game) Game Show Presenter - software to develop games (Bodine Training Games)
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Corporate Sponsors of Games for Good (GfG) Enhance Their Brands

Generation Cure, Childrens Hospital Boston online games, teach philanthropy as youngsters play to raise funds for research

www.freerice.com site is funded by their advertisers: Macys, Fujitsu, Timelife, Apple, Office Depot, Readers Digest, and others

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Games for Good for Empowerment and with Humanitarian Missions

Starlight Childrens Foundations Quest is an asthma adventure game FAS - The hero of Immune Attack is a 12 year old girl with an immunodeficiency.

World Food Force, first humanitarian video game (2005), offers six virtual emergency response missions. Estimated network of 10 million players worldwide.
Hope Labs game Re-mission was developed for adolescents and young adults with cancer.

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Ambient Insight Research Sources

www.ambientinsight.com Ambient Insights Free Resource Library at:
http://www.ambientinsight.com/News/PublishedContent.aspx

The US Market for Mobile Learning Products and Services: 2010-2015 Forecast and Analysis The US Market for Game-based Learning Products and Services: 2010-2015 Forecast and Analysis The US Market for Location-based Learning Products and Services: 2010-2015 Forecast and Analysis

The Worldwide Market for Mobile Learning Products and Services: 2010-2015 Forecast and Analysis
The US Healthcare Market for Mobile Learning Products and Services: 2009-2014 Forecast and Analysis The US Consumer Market for Brain Fitness Applications: 2009-2014 Forecast and Analysis Ambient Insights 2011 Learning Technology Research Taxonomy
Ambient Insight 2011