Innovation

Innovation lies in the development of specialized software for the healthcare sector and for speech recognition. This software enables the integration of voice recognition functionalities in hospitals settings to facilitate and improve communication and documentation processes. Liaison Vocale works on the digital transformation of its customers, offering innovative technological solutions tailored to the needs of the healthcare sector.

The innovation emerged in the context of a buyout orchestrated by the Chairman and his four partners, all of whom were committed to the company's strategy. Their objective was to stimulate the company's growth to increase its value and sell it within four to five years, as part of a private equity transaction. To achieve this ambitious goal, it was essential to invest and develop the company. This led to an in-depth strategic review, aimed at repositioning and repackaging the company to increase its value. Innovation became a central pillar of the strategy, requiring a significant transformation of the company following the strategic change initiated by the CEO after the company's acquisition five years ago. Recognizing the obsolescence of the Windows technologies previously used, and the need to invest in new technological solutions, the founder decided to focus on investment and technology change. With a focus on speech recognition, the aim was to modernize the offering by "cloudifying" it, i.e. making it accessible via a company-managed platform, as opposed to the previous model where software was installed locally on the customer's premises. "The idea was to be able to cloudify our offer, i.e. to be able to make it available to our customers," he tells us. This development was in response to growing demand from customers, particularly hospitals in France, for cloud-based services. The innovation was intimately linked to the company's overall strategic vision, aimed at maximizing its value and achieving the exit targets set as part of the private equity deal. The emergence of this innovation was therefore driven by the desire to adapt the company to technological developments and the changing needs of the healthcare market. The whole company was involved in creating the innovation, each in his or her own specific field. First of all, technological transformation was essential, which involved radically changing the offering by "cloudifying" it, in order word using adapted software, open-source software, to reduce costs. "We had to turn the old technology into a new, more modern one, find the open-source partners who would be able to support us, and then of course develop the solutions," he tells us. The R&D teams played a crucial role in developing new solutions by teaming up with partners, including international ones. Following that, the organizational side of human resources was also impacted. Technicians familiar with the old platform had to adapt to the new technologies, necessitating the recruitment of new talent specialized in the cloud. Profound organizational changes were required to integrate these new skills. Beyond the technological transformation, the business model also changed, moving from software sales to a subscription model. Overall, the creation of the innovation involved close collaboration between the technical, R&D, human resources and sales teams, each contributing in their own way to the successful transition to a new offering and business model.

Cloudification innovation is closely linked to a mission and a sense of corporate sustainability. The transition to a cloud offering was not simply an option, but a vital necessity to ensure the company's long-term continuity. This transformation involved a radical shift in the company's mindset, priorities, challenges and investments. The choice of cloudification was driven by the understanding that, without a presence in the cloud market within a relatively short timeframe, the company risked losing its economic viability. This realization mobilized the entire company towards a common goal: "The idea was that in 3 years' time, if we didn't have a cloud offering on the market, we'd be out of business. The choice was an obligatory one, and that of course changed the mindset, the priority, the stakes and the investments, because we had an obligation to succeed, and so it was the whole company that was mobilized." Moreover, this transition has also brought about a significant shift in value. In the previous model, the customer relationship was often limited to the sales phase, with limited follow-up once the solution had been deployed. However, in the cloud subscription model, service continuity becomes essential to guarantee annual contract renewal. This means that the company must provide consistent, exemplary service quality to maintain customer commitment. This evolution has led to a stronger commitment to customers, as their loyalty now depends on ongoing service satisfaction rather than a one-off transaction.

Inspiration

The original idea for the innovation came about through a strategic review after a buyout of the company. Recognizing the need to modernize and adapt to technological advancements, the company aimed to transition from traditional locally installed software to cloud-based solutions in response to increasing demand for such services in the healthcare market, particularly from hospitals in France and in Europe as well.

The motivation behind this innovation was multifaceted. Primarily, it was driven by the company's strategic goal to increase its value and prepare for a future sale within a defined timeline. The shift towards cloud-based services was also motivated by the need to keep pace with technological developments and meet the evolving demands of the healthcare sector as consumer preferences are trending towards cloud-based solutions. Additionally, there was a sense of urgency and necessity—without adapting to the cloud market, the company risked losing economic viability and potentially going out of business within a few years. Bruno talked about: “A sense of Mission, Purpose, or Meaning.” The cloudification innovation was driven by a sense of mission and corporate sustainability. It was not just a strategic choice but a necessity for the company's survival and long-term continuity in a rapidly evolving market. The transition to cloud services mobilized the entire organization towards a common goal of securing the company's future viability. Moreover, this transformation led to a deeper commitment to customer satisfaction, as the subscription model required ongoing service excellence to maintain customer loyalty, thereby instilling a stronger sense of purpose and focus within the company.

In summary, this innovation in healthcare software development reflects a strategic response to market demands, technological evolution, and the imperative of sustaining corporate viability. The initiative underscores the critical role of innovation in reshaping business strategies, organizational structures, and customer relationships to drive long-term success and value creation.

Overall impact

The innovation at Liaison Vocale emerged primarily from a change in technology coinciding with a takeover, leading to the cloudification of their offerings and a shift from on-premises solutions. Drawing from past experiences, Bruno played a pivotal role in driving innovation and overseeing changes in product technology, human resources, and business models. The innovation was linked to the company's survival and growth, as cloudification became imperative for competitiveness and sustainability in the market. The original idea stemmed from the collective efforts of four associates aiming to grow the company and turn a profit, necessitating significant investments despite technological challenges. The motivation behind the innovation was primarily financial, aiming to increase the company's valuation and profitability in the context of resale. The impact on the company was significant, leading to a transformation in its revenue structure, shifting towards recurring revenues and increasing overall valuation. In the short term, cloudification efforts aimed to increase recurring revenue to 70% by the end of 2024, revolutionizing the company's revenue streams. Concrete evidence of this impact includes the observed increase in the recurring revenue rate from 20-30% to 70-80%, indicating successful implementation and adoption of codified products.

The impact of Liaison Vocaleon society in the healthcare sector is significant. By transitioning to cloud-based solutions, the company enhances data security and accessibility for healthcare professionals, including doctors, nurses, and surgeons, ensuring the protection and integrity of patient data. This shift improves efficiency and collaboration among healthcare providers, ultimately enhancing patient care and outcomes. Moreover, the emphasis on cloudification aligns with broader trends in healthcare technology, contributing to the industry's overall digital transformation and modernization. Innovation positively influences the quality and delivery of healthcare services, benefiting society by advancing patient care standards and promoting data security in a critical sector.

The impact of the innovation on the environment, while indirect, can still be significant. Transitioning to cloud-based solutions typically reduces the need for physical infrastructure and hardware, which can lead to lower energy consumption and carbon emissions associated with data storage and management. By streamlining processes and enabling remote access to services, cloudification may reduce transportation-related emissions as fewer resources are required for on-site maintenance and support. However, it's essential to consider potential environmental impacts associated with increased data center usage and energy consumption in cloud infrastructure, highlighting the importance of sustainable practices in technology adoption. Overall, while the direct environmental impact may vary, the innovation's broader implications for resource efficiency and operational sustainability align with efforts to reduce the carbon footprint of digital technologies.

Liaison Vocale’s objective is to sell these cloudified products by the end of 2024, having them represent 70% of reoccurring revenue for the business. Subscriptions from the sale of their cloud service would impact the revenue structure by providing these long-term reoccurring sustained revenues creating a strong and steady short-term stream of revenue. Over time, Liaison Vocale would gain traction and establish a strong brand presence within the market but to sustain long-term success, they plan on continuously innovating their service to attract new customers, retain existing ones, and remain competitive within the industry.

After witnessing an increase in reoccurring revenue from 20-30 percent to 70-80 percent, this evidence suggests that the innovation to cloud-based service systems has had positive effects on the businesses revenue growth, indicating that the increase in the population of newer customer’s and existing customers are pleased with the service and are dedicated to keeping their subscriptions active. High levels of customer satisfaction forms a direct line to long-term success and business growth, which is why their evaluation of revenue growth due to consistent subscription renewals proves as great evidence of the success of Liaison Vocale.

Business benefit

The innovation of transitioning to cloud-based solutions offers several benefits to Liaison Vocale's business. Firstly, it enables the company to adapt to evolving market trends and technological advancements, enhancing its competitiveness and relevance in the industry. Secondly, cloudification leads to cost efficiencies by reducing the need for physical infrastructure, maintenance, and support, thereby improving overall profitability and resource allocation. Additionally, the shift towards recurring revenue models associated with cloud services enhances the predictability and stability of the company's income streams, contributing to long-term financial sustainability and growth. Overall, the innovation facilitates working skills, cost-effectiveness, and revenue diversification, setting Liaison Vocale for continued success in the market.

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Social and environmental benefit

The general benefits cloud-based solutions impose on the environment can consist of decreases in resource consumption and demand for hardware production, the reduction in energy consumption with data centers, improved security and more. In addition to the general benefits cloud-based solutions bring to the table, the integration of this innovation into Liaison Vocale’s business showcases these benefits in a business environment seamlessly. The reduction in energy consumption promotes resource and energy efficiency, allowing the business to run their software on servers that are optimal for these improvements. The energy required to maintain on-premises servers (servers hosted physically on site and within the organizations infrastructure compared to cloud, which are servers accessed via the internet) would be lessened. Another incredibly important feature of this innovation is the ability for remote access to Liaison Vocale’s software from any location with internet access. With the reduction in the need for users of this software to travel, the environment would experience lower carbon emissions which would have positive long-term environmental impacts.

Interview

Bruno Palmino, CEO