Healthtech <> Sports Tech: When Data Isn’t Enough

Healthtech <> Sports Tech: When Data Isn’t Enough

There's a common belief that having more data guarantees success, especially with advancements in large language models (LLMs) that excel at parsing it. But this assumption is often misleading. The real question isn't just about the data itself, but what users can actually do with it.

Both healthcare tech and sports tech face a similar challenge. Tech-enabled healthcare companies generate vast amounts of data from patient interactions, coordination with other stakeholders, and the broader healthcare ecosystem. Similarly, sports tech companies accumulate tons of data directly from users, third-party providers, and partnership data.

Throughout my conversations over the years, the one consistent theme is that both industries grapple with the same issue: determining the actual problems this data solves and for whom. Having the data is not enough but rather understanding how to leverage it effectively to create meaningful and scalable solutions that align with both immediate needs and long-term strategic goals.

With so many stakeholders and potential customers, there's a tendency to focus primarily on the highest-paying ones, putting all eggs in one basket. This approach can transform a product into more of an enterprise consulting service than an innovative tech solution, stifling innovation and leaving the company vulnerable if a major contract isn't renewed.

Companies need to consider their ideal customers beyond just revenue potential. Questions like, "How will our product evolve if we focus on Customer X?" or "What are our core values and long-term vision, and does this customer align with them?" are crucial. Chasing immediate revenue can be enticing, but it often leads to significant technical and operational debt down the line.

It's clear that the drive to secure revenue and "figure things out later" is tempting. However, a strategic approach that balances immediate gains with long-term sustainability and alignment with company values is essential for lasting success.