The document is a presentation from Kalypso, a consulting firm focused on innovation. It introduces Kalypso and its services around innovation management. It then summarizes the results of Kalypso's 2011 healthcare reform and innovation survey, including the top market issues according to respondents, an assessment of capabilities, and gaps. It outlines Kalypso's approach to innovation transformation and diagnostic tools to help clients improve innovation processes.
2. Agenda
• Introduction to Kalypso
– The Kalypso Difference
– The Innovation Engine
– Software Expertise
• About the Study
• Detailed Results
– Market Issues
– Capabilities
– Gaps & Barriers
• Getting Started
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3. • Introduction to Kalypso
– The Kalypso Difference
– The Innovation Engine
• About the Study
• Detailed Results
– Market Issues
– Capabilities
– Gaps & Barriers
• Getting Started
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4. The Kalypso Difference
Kalypso is a consulting firm focused exclusively on innovation.
Our people are leading business professionals who combine experience
in select industries with product and process innovation expertise.
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5. The Innovation Engine
Our services are designed to help companies become more innovative
and provide a systemic view of new product & service development.
Business
&
Innova-on
Strategy
New
Product
Front
End
Por0olio
&
Pipeline
Development
Pricing
&
Value
Of
Innova.on
Management
Management
Execu.on
PLM
Technology
Leadership
&
Learning
Intellectual
Property
Management
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6. • Introduction to Kalypso
– The Kalypso Difference
– The Innovation Engine
• About the Study
• Detailed Results
– Market Issues
– Capabilities
– Gaps & Barriers
• Getting Started
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7. About the Study
Innovation in Healthcare
In February – May 2011 we conducted a survey of market issues driving
the need to innovate and how healthcare companies are planning to
address these market changes and opportunities.
Company Operations
Market Issue Need to
Drivers Innovate
Capability Maturity Framework
Current Gaps & Future
Capabilities Barriers Capabilities
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8. About the Study
We surveyed 31 individuals in
U.S. Companies
23 different healthcare organizations.
Company Type Organization Role
Director
Provider / Prod Dev
16% Other 19% Prod Mgmt
32% Payor
45% 39% Prod Dev 49% Executive
Did not Support 19%
respond Did not
52% Did not
respond
16% respond
13%
n= 31 n= 31 n= 31
Members Revenue Geography
<1MM <$ 1 BN Single-state
1-20MM $1-10 BN Regional
16% 19%
39% >20MM
32% > $10 BN
32% 32% National
Did not
39% Did not
13% 36% Did not
respond respond 16% 20% respond
6%
n= 31 n= 31 n= 31
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9. • Introduction to Kalypso
– The Kalypso Difference
– The Innovation Engine
• About the Study
• Detailed Results
– Market Issues
– Capabilities
– Gaps & Barriers
• Getting Started
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10. Benchmarking Market Issues
Top Concerns for Product Development:
There was general agreement that two issues (Retail Exchanges and ACOs) were of major
concern, after which agreement fell off significantly.
See Health Care Reform Magazine for a more in depth discussion on the top issues.
Market Issues
Retail Exchanges
Accountable Care Organizations
Transparency to Cost and Quality
Alternative Care Delivery Models
ASO / ASC - increased demand for and/or complexity of relationships
Changing Channel Strategies
Mandated Medicare Reduction in Spend
Change in Reimbursement Methodology
Health and Wellness
Aging Population
Increased Demand for Customization
Benefit Carve Outs / Exclusions
High Deductible Health Plans v 2.0
Sharply Tiered Network Designs
Role / impact of essential community care providers in commercial
Medical Health Records
Source: Kalypso Healthcare Survey Data 05.11.11
0% 10% 20% 30% 40% 50% 60%
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11. Benchmarking Capability Maturity
Companies believe they do not yet have formal product development capabilities in place;
however, they plan to have “advanced” product development capabilities in the near
future.
This is typical of other industries, where the experience is that making this change is often
a 5 to 10 year effort and expectations often outpace ability to change.
Current State vs. Future State
Avg. Current State Avg. Future State
Technology
1.41
Six Elements
Resource
of Product Management 1.35
Development
Process
Management 1.15
Products 1.29
Innovation 1.36
Current State
Strategy Future State
0.91
0 1 2 3 4 5
(Developing) (Basic) (Formal) (Advanced) (World Class)
Source: Kalypso Healthcare Survey Data 05.11.11
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12. Benchmarking Gaps & Barriers
There are significant differences of opinion between leadership and staff on what the
major issues will be in achieving targeted capability improvements
Agreeing to where to focus, and overcoming these barriers will be a major factor in
achieving planned improvements to meet the emerging competitive threats in the industry
Gaps & Barriers by Level
100% Leadership = Directors, VPs, Senior Executives
90% Product Managers & Staff = Product management
80%
70%
60%
All Responses
50%
40% Product Managers & Staff
30%
Leadership
20%
10%
0%
Resource Technology - Leadership Strategic Innovation Organization Resource Technology -
Availability Core Systems Alignment Culture Alignment Capability General
Source: Kalypso Healthcare Survey Data 05.11.11
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13. • Introduction to Kalypso
– The Kalypso Difference
– The Innovation Engine
• About the Study
• Detailed Results
– Market Issues
– Capabilities
– Gaps & Barriers
• Getting Started
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14. Innovation Transformation Framework
Kalypso uses an integrated approach to improve our clients’ ability
to innovate
Finance/ ERP Sales/ CRM
Innovation Strategy
Portfolio & Pipeline Management
Front End
Of Innovation Development Commercialization
Product Lifecycle Management
People, Leadership & Culture
Human Supply Chain/
Resources ERP
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15. Innovation Mgmt. Implementation Approach
Our Innovation Management implementation approach is designed to be
scalable and adapt to our clients’ unique situations
Phase I Phase II Phase III
Assess Detail Design & Piloting Roll-out Institutionalize
Innovation Engine
Diagnostic Detailed Process Design
Implementation Approach
Design Workshops
Solution Architecture Training Organization
Design Materials Roll-out
Design Workshop “Quick Hit”
Implementation
Stakeholder End-to-End Process Piloting
Alignment & Refinement
Pipeline IT Systems Design
Rationalization and Rollout
Project Team Formed Champions for Change
• Prioritize for “to be” framework • Design integrated cycle time process • Begin roll-out
• Validate high level design elements • Pilot on projects • Continuous Improvement Plan
• Initiate “Quick Hit” implementation • Construct Training Plan & Materials (Measure, Monitor, Improve)
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16. Innovation Engine Diagnostic
Our Innovation Diagnostic Sets The Stage For Redesigning And
Transforming Your Capabilities
Step 1: Step 5:
Evaluate Current Product Step 2: Step 3: Step 4:
Complete Innovation Identify Innovation Develop
Planning Processes & Design Future State
Benchmarking Gaps / Opportunities Transformation
Innovation Strategies Process
Roadmap
Objectives Detailed understanding Gather specific data to ID gaps in current Determine practices and Blueprint for
of the current understand current processes relative to organizational changes transformation.
innovation and product practices against best practices. Develop needed Detail “Quick Hit”
planning process industry benchmarks value prop. for change Opportunities
Key Activities • Refine project objectives • Conduct interviews • Analyze benchmarking • Compile findings from • Map path from current
• Mobilize project team • Compile interview and interview data previous work to compile state to desired future
responses & compare • Compare to best practices holistic view of planning / state
• Hold Kick-off meeting NPI process
to Maturity Model and ID gaps • Align with implement-
• Schedule interviews, and opportunities for • Leverage relevant best ation timeline
workshops, & updates • Assess existing metrics
against industry database improvement practices • Develop change program
• Gather and review • Prioritize gaps and • Design future state
relevant process • Identify barriers to • Goals
collaboration (internal improvement process architecture
documentation opportunities • Communications
and with key partners) • Determine proposed org.
• Collect and analyze • Identify key business and design required to
existing metrics • Identify organizational
constraints performance drivers support process
• Examine s/w tools in use architecture
• Review as-is for 1-2
recent projects
Deliverables • Project Plan • Interview summaries • Process gap analysis • High-level process • Transformation
• As-is Process Map • Summarized Planning/ • Detailed Findings & architecture Roadmap
• Initial Quick Hit list NPI Objectives Recommendations • Organizational design • Quick-Hit Plans
• NPI Maturity • Executive Summary • Final Report
Scorecard with Prioritized
Recommendations
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17. Product Portfolio Management
Kalypso uses a rapid prototyping approach to design, implement, sustain
and optimize Portfolio & Pipeline Management.
Create Pipeline Visibility Through
Iterative Portfolio Design and Test Validate Governance, Teams and
• Leading practice design is tailored to client specific requirements
Sustaining Processes
• Design is tested immediately with real data for validation • Pilot implementation of processes, teams and tools guide
• Value of analysis is confirmed through executive presentation improvements and roadmap phasing
• Decision making becomes part of the way work gets done
Portfolio Phase-Gate
Integration
Executive Organizational Portfolio Working
Objectives Requirements & Decision Teams
Portfolio
Design
Facilitated Portfolio
Portfolio Data Portfolio
Review Analysis Calendar
Portfolio Process &
Off-Cycle Process
Develop Advanced Scenario Planning and Optimize Strategy
• Scenario planning is enabled and drives proactive resource allocation
• Innovation strategy, roadmaps and internal capabilities are tightly
integrated with portfolio decision making to optimize investments
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18. Portfolio Design Elements
The innovation portfolio management base design includes all components
needed to gain pipeline visibility to enable decision making.
Portfolio Scope
When and how does a project enter and
Project exit the innovation portfolio?
Strategic
Definition Buckets
Do we all mean the same How do we classify
thing when we say innovation projects to
“project?” monitor investment?
Inclusion Resource
Criteria Pools
Is this project big enough What do we need to
to spend time doing deliver innovation
portfolio analysis on? portfolio objectives?
Project Basic Project Evaluation
Project-Level Information Reporting Data Criteria
Data How do we identify How do we slice, dice and How should we value one
projects? aggregate portfolio information? project against another?
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