Transcript
Page 1: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

5 Medical Device Strategies Doomed to Fail in 2012

Gunter Wessels, Ph.D., MBAPartner, Practice Principal, Total Innovation Group, Inc.

[email protected]@gunterwessels

Charlie Johnson, M.Ed., B.S.Consultant, Leadership Practice Principal,

Total Innovation Group, [email protected]

www.tigi.net

More>

July 25, 2012

Page 2: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Sluggish growth

Market Share Decline

Price/Margin Erosion

Commoditization

Diminished profitability

Failure Defined

Page 3: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Pricing Confidentiality Agreements

Additional Salespeople

Geographic Market Assignment

Appeal to Physician Preference

Feature-Advantage-Benefit Sales and Marketing

The First Big 5

12345

Page 4: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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5 More Strategies That Will Fail

12345

Add Features and Launch Now

Go-Big - Win Big

Get KOLs - Trickle Down

Bet on Past Performers

Drive Activity - Skip Training

Page 5: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Focus: New Product Features and Advancements

Add Features & Launch Now1

Page 6: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Problem: Solutions are more contingent on customer capabilities than “more of” the same advances in resolution, speed, accuracy.

• Care delivery is evolving

• Workflow remains a challenge

• Automation is critical

• Disruptive innovations can win...but more closely matched solutions are key

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© TIGI 2012 All rights reserved

Add Features & Launch Now Remedy

Demonstrate the value of your solutions and claim the realization of your benefits.

• Clinical Capability Enhancement

• Operational Efficiency Improvement

• Financial Performance in Cost Reduction and Liability Avoidance

SM

Page 8: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Focus: The Largest Customers or Potential Customers

Go Big - Win Big2

Page 9: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Problem One: The healthcare market is growing and declining at different rates in different spaces.

Source: Medpac 2011 based on 2009 Discharge and Facility Count Data

28%

24%

3%9%

4%2%

3%

27%

Critical Access Hospitals1290 Facilities

3.8% of DischargesLarge Urban1310 Facilities

45% of Discharges

Other Urban1092 Facilities

38% of Discharges

Rural Referral124 Facilities

4% of Discharges

Sole Community394 Facilities

6% of Discharges

Medicare Dependent

195 Facilities6% of Discharges

Rural <50 Beds102 Facilities

<1% of Discharges

Rural >50 Beds153 Facilities

2% of Discharges

Page 10: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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AHA Hospital Market

Not For Profit50%

For Profit17%

State/Local Run19%

Federal4%

Psychiatric8%

Long Term Care2%

Prisons0.26%

Stable

5795 Registered Hospitals in 2009

Consolidating

Declining

Consolidating

Source: AHA ChartPack Data

Page 11: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Problem Two: The largest and most capable organizations are incorporating the latest in care-delivery forms that reduce utilization, cut cost, and streamline care delivery.

Page 12: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Go Big - Win Big RemedyDefine where your solution has the greatest positive impact in clinical, operational and financial benefits.

• The mid-market is straining; creating opportunity.

• The low-end of the market is evolving rapidly and creating new opportunities

Page 13: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Focus: Engage Lead Users and Innovators

Get KOLs - Trickle Down3

Page 14: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Problem: Many lead users and innovators do not represent your target market.

Page 15: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Service Lines Dominate Healthcare Delivery

A Service Line is:

- A Center of Excellence- Focused on a patient population with a range of conditions and symptoms.- Engaged in meeting providers’ and patients’ needs for:

• Quality• Access• Convenience

Service Lines are comprehensive, “product lines” including:Screening & Prevention Diagnosis Treatment Aftercare support

Get KOLs - Trickle Down RemedyEngage Service Line Managers

Page 16: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Focus: Hiring Your Best Competitor

Bet on Past Performers4

Page 17: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Problem One: Your biggest competition is not the good people you bid against-- it is another project.

IT Project

Lean Project

Parking Deck

Investment

Page 18: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Problem Two: “A” players don’t regularly leave their companies.

“Experience is more easily gained than sales skill.”-Herbert Greenberg, Ph.D.

Page 19: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Bet on Past Performers Remedy

1. Recognize that the environment has changed

2. Re-examine your value in the “new normal”

3. Evolve your skills and understanding

4. Align sales and marketing activity

Page 20: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Drive Activity - Skip Training5

Focus: Maximize Time-in-Territory and Defer Development and Training

Page 21: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Problem One: Without a fundamental understanding of healthcare changes and their implications, you will struggle to remain relevant.

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Problem Two: The key to better performance is management, culture, and values.

Page 23: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Drive Activity - Skip Training Remedy

1. Study your industry, not just your product and your competitors

2. Develop your healthcare business acumen

3. Focus on Sales Productivity Metrics; ROSI

4. Ask for help when you need it

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Recommendations: A Balanced Approach

Page 25: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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Developing Your Value: What are the Hurts?

ClinicalUtility

OperationalEfficiency

FinancialPerformance

Department

Allocated Revenues and

Expenses

Equipment, Facilities,

Technology

Evidence-Based Medicine

Service Line

Profit and Loss on the Service Line

Operations

Workflow, Patient Flow, Patient Experience

Enforce Protocols & Medical Policy

Across Departments

Facility

Optimize EBITDA Margin, and

Return on Assets

Optimize Staffing Skill-Mix Required

MD/RN/AH, Regulatory Compliance

Growing or Reducing

Services Offered

Capitalization, Debt Service,

Leverage, Acquisitions,

Project Justification

Resource Deployment &

Coordination of Assets

Care Coordination and

Service Line Portfolios

IDN/System

Market Power Aggregation with

Suppliers and Payers

Shared Services and Process Outsourcing

Delivering Accountable Care

to Populations, Disease

Management

ACO/Network

Page 26: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

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➡ Upgrade skills: Business Acumen, Evidence-Based Medicine, Salesmanship, RFP Strategy

➡ Update the playbook: Corporate Accounts, GPO Contracts, Coverage Models

➡ Revise the forecasts: Plan for Rebuilding, Customer Attrition, Margin Compression

➡ Assess and Develop Talent: Specialists, Generalists, Managers, and Support

➡ Commercialize Innovations: New Care Delivery Models, Improved Patient Flow, Increased Quality

What to Do?

Page 27: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Summary RecommendationsStrategic Recommendations

1. Balance your value proposition on Clinical, Operational, and Financial dimensions.2. Re-examine your value in the “new normal” & define where your solutions have the

greatest impact3. Examine the small, mid, and larger organizations for gaps and strategic fit4. Align sales and marketing activity5. Focus on Sales Productivity Metrics; ROSI

Tactical Recommendations

1. Target Service-Line Managers2. Recognize that the environment has changed and evolve your skills and understanding

a) Study your industry, not just your product and your competitorsb) Develop your healthcare business acumen

3. Ask for help when you need it

Page 28: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Questions?

www.tigi.net

Page 29: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

As a participant today:

• Use Code: “2012MedDevice2”

• $500 credit on a TIGI course

• $500 credit on a TIGI consultation

• A Hospital Clinical, Operational and Financial Profile Scorecard Report (Free)

Page 30: July 25 2012 | 5 more medical device strategies doomed to fail in 2012

© TIGI 2012 All rights reserved

Thank You

Gunter Wessels, Ph.D., MBAPartner, Practice Principal, TIGI

[email protected]@gunterwessels

Charlie Johnson, M.Ed. B.S.Consultant & Leadership

Practice [email protected]

www.tigi.net


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