Health technology - the next big thing
The fast growing field of health technology is currently the most significant high tech industry export in Finland. Students at Aalto University have examined the effects of trends on the growth of disruptive companies by conducting a case study on health tech company Naava.
When examining the lifespan of the health tech industry, one can see a clear turning point. However, in Finland, its growth spurt is still in its early stages, as the industry only consists of a few hundred businesses. Many of the health tech businesses are disruptive, in that they create and develop the industry themselves.
Disruption refers to the phenomenon, where new technology and practice replace the old. With the new technology, businesses develop a demand for products and services, thus being the only company that can supply for the demand.
Global trends as the source of Naava’s growth
In terms of Naava, disruption means a new innovation in relation to green walls: at the moment, Naava is the only business manufacturing green walls that purify air biologically.
It is essential for businesses working in disruptive industries to identify big trends and developments, and then find the right niche market. The increasing interest in health and eco-friendly consumer behavior has sped up Naava’s success.
The prevailing health boom offers Naava a growth medium, as more and more people are interested in health these days. New problems and factors affecting health have risen to people’s attention. The demand for new health services and products increases and the market is constantly supplied with a number of solutions focusing on health and wellbeing.
The values of eco-friendliness, naturalness and greenness have a big impact on many consumers’ choices at the moment. The consumption oriented way of thinking has had to make room for a way of thinking that focuses on the quality and durability of products.
Longing for nature is a rising trend, especially in big cities where air pollution and the health issues caused by them have surfaced in recent years. Fresh outdoor air, forests and parks have a health advancing effect. As the world’s population grows and air pollution increases, the significance of pure air is emphasized, as one’s eyes are opened to the importance of air.
Creating something new takes courage
As social responsibility is valued more and more in consumer behavior, an increasing number of consumers are willing to pay for a product’s eco-friendliness, health effects and durable design. However, discovering something new isn’t self-evident. A trailblazer needs to be able identify an opportunity.
From the beginning, Naava has trusted in its vision as a purifier of indoor air and believed in the success of its innovation. It is exactly this kind of courage that the Finnish field of business calls for.
In a competitive and complex environment, experimentation and boldness are the factors producing success stories, complemented with research and hard facts - Naava is an excellent example of this kind of a business.
The article is based on the group assignment of students Mari Turunen, Pietari Turunen, Eveliina Leskinen, and Jasmin Kontinen of Aalto University: The effect of the industry’s turning point in Naava’s internal functions.