"Solving the Surround" is about understanding and addressing multiple market barriers in unison. To explain the concept, let's consider the most recent disruption of the music industry -- the success of Apple's iPod.

The iPod itself did not win the market and drive industry disruption because it was from Apple or due to its great design. Other behemoths like Microsoft and Philips, with huge budgets and marketing machines, built powerful MP3 players without market impact. Apple succeeded because they also 'solved the surround' — they identified and addressed numerous other barriers to overcome mass adoption.


Among other contributions, they:

- Made software available for both the PC and Mac

- Delivered an easy (and legal) way for users to "rip" their old CD collection and use the possession of music on a fixed medium that proved legal "ownership"

- Built an online store with a massive library of music

- Allowed users to purchase individual tracks

- Created new artist packaging, distribution, licensing, and payment models

- Addressed legalities and multiple licensing issues

- Designed a way to synchronize and backup music across devices

In other words, Apple broke down most of these barriers all at once to enable the broad adoption of both their device and platform. By "Solving the Surround," Apple was the one to successfully disrupt the music industry (and make way for their iPhone).

The revolution that missed healthcare
Disruption doesn't happen in a vacuum. The market needs to be "ready" to replace the old way of doing things or accept a much better model. In the iPod case, the market first required the internet, online payment systems, pervasive home computers, and much more. What Apple did to make the iPod successful wasn't to build all of the things required for the market to be ready, but they identified and conquered the "surround problems" within their control to accelerate and disrupt the otherwise-ready market.

Together, the PC, internet, and mobile revolutions led to the most significant workforce productivity expansion since WWII. Productivity in nearly all industries soared. The biggest exception was in the healthcare sector, which did not participate in that productivity revolution or did not realize the same rapid improvements. The cost of healthcare continued its inexorable rise, while prices (in constant dollars) leveled off or declined in most other sectors. Healthcare mostly followed IT-centric, local, customized models.

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