1.
1
Expansion Recommendations
GREY MATTER
CONSULTING
v
v
v
2.
2
TABLE
OF
CONTENTS
Executive
Summary……………………………........................................................................3
Introduction……………………………………………………………………………………………………………..4
Business
Description………………………………………..………………………………………………..…….4
Business
Problem……………………………………………................................................4
Project
Description.……………………………………………………………………………….........5
Project
Objectives……………………………………………...............................................6
SWOT
Analysis...................................................................................................6
Porter’s
5
Forces
Analysis…………………………….……….……………..……………………...7
Initial
Market
Research
&
Analysis……………….…...…….................................................8
Decision
Matrix……………………………………………................................................10
Rationale
Behind
Strategy.…………………………..................................................12
Decision
Matrix
Results…………………………………..............................................14
Houston
Analysis…………………………………………………………………………………………………….15
Atlanta
Analysis………………………………………………………..…………………………………………….17
Birmingham
Analysis……………………….………………………………………………..……………………20
Baton
Rouge
Analysis…………………………………………………………………………………..…………24
Marketing
Budget……………………………………………………………………………………………………24
Conclusions
and
Final
Recommendation…………………………………………………………………25
Appendix…………………………………………………………………………………………………………………26
Spreadsheet……….…………………………………………………………………………..……………26
PowerPoint
Slides…………………………………………………………………………..……………29
Project
Charter………………………………………………………………………………..…………..33
Bibliography…………………………………………………………………………………………………………….39
3.
3
RESEARCH
&
ANALYSIS
In
this
report,
we
have
examined
twelve
possible
cities
for
expansion,
and
evaluated
the
attractiveness
of
each.
Twelve
cities
were
superficially
evaluated
to
find
the
three
best
options
for
BDH
through
an
intensive
decision
matrix.
We
then
researched
each
of
these
three
cities
to
determine
the
best
opportunity
for
expansion
and
input
them
in
a
second
decision
matrix
to
determine
which
cities
were
the
most
attractive.
HOUSTON
Houston
is
the
most
attractive
market
for
BDH
to
enter
due
to
its
strong
results
in
the
decision
matrix.
Houston’s
large
presence
of
university
hospitals
and
orthopedic
clinics—a
specialized
area
BDH
has
already
successfully
entered,
as
well
as
its
large
total
population,
makes
it
a
strong,
viable
market
for
BDH.
ATLANTA
Atlanta
ranked
second
in
our
overall
decision
matrix
as
it
showed
strong
results
across
almost
all
of
our
categories.
With
a
large
population,
the
Emory
University
system,
and
many
additional
opportunities
for
BDH
to
expand
and
grow,
Grey
Matter
Consulting
has
pegged
Atlanta
as
the
second
most
attractive
market
in
the
Gulf
South
region.
BIRMINGHAM
Birmingham
is
the
third
most
attractive
city
for
BDH’s
expansion.
Birmingham
consistently
scored
lower
than
both
Atlanta
and
Houston
in
the
decision
matrix
and
proves
to
be
a
smaller
city
with
less
opportunity
of
success.
Nevertheless,
as
it
is
going
to
be
explained
later
in
detail,
Birmingham
has
attractive
factors
that
are
beneficial
if
the
company
wants
to
initiate
their
expansion
with
a
small
market.
MARKETING
BUDGET
&
CONCLUSION
Lastly,
we
investigated
the
normal
level
of
the
marketing
budget
for
companies
that
are
in
a
similar
field
to
BDH.
This
helped
us
recommend
a
budget
to
BDH,
as
well
as
give
suggestions
as
to
how
they
should
divide
the
budget
between
the
three
cities.
Overall,
this
report
details
where
BDH
should
attempt
to
expand
to
next.
EXECUTIVE
SUMMARY
Better
Day
Health
(BDH)
offers
an
Electronic
Healthcare
Record
(EHR)
system
that
has
the
potential
to
spread
throughout
doctors’
offices
across
the
country.
To
this
end,
BDH
must
expand
the
markets
they
reach.
4.
4
Business
Description
Better
Day
Health
(BDH)
is
a
medical
technology
company
that
focuses
on
electronic
data
entry
and
transcription
of
patient
health
records.
The
company
integrates
innovations
in
the
technology
and
healthcare
industries
to
create
a
superior
platform
for
both
doctors
and
patients.
The
company
is
driving
a
completed
trial
version
of
its
technologies
through
two
separate
clinics
in
the
Lake
Charles
area,
and
following
this
BDH
is
projecting
widespread
adoption
in
the
small
clinic
market
segment
due
to
its
ease
of
use
and
ability
to
integrate
with
existing
technologies
in
hospitals
and
doctors’
offices.
Compounding
this,
BDH
has
also
begun
integration
with
the
LSU
medical
system,
therein
setting
themselves
up
as
a
potential
niche
leader
in
medical
education.
With
these
advances,
BDH
has
set
itself
up
for
success
in
its
goal
to
free
up
doctors
“from
being
the
most
expensive
data
clerks
on
the
market,”
(Better
Day
Health).
INTRODUCTION
Business
Problem
BDH
knows
that
they
have
created
a
successful
innovation
in
the
healthcare
industry.
Currently,
the
company
is
looking
for
their
best
options
to
expand
their
reach
of
this
product.
BDH
is
confident
that
they
are
ready
to
expand
themselves,
but
they
lack
the
knowledge
of
markets
outside
of
their
current
scope.
They
require
an
analysis
of
both
the
demographics
and
the
healthcare
industry
in
other
major
cities
around
the
Southern
and
Eastern
regions
of
the
United
States,
in
order
to
make
a
determination
of
the
best
cities
to
focus
their
expansion
efforts.
Furthermore,
this
company
needs
an
analysis
of
the
educational
medical
communities
in
some
major
cities,
such
as
LSU
and
Emory,
and
the
potential
to
integrate
BDH
technology
into
their
systems.
Finally,
BDH
lacks
an
understanding
of
how
to
allocate
their
marketing
resources
effectively
in
terms
of
this
expansion
plan.
5.
5
PROJECT
DESCRIPTION
In
recognition
of
BDH’s
potential
for
widespread
growth,
our
project
identifies
three
cities
that
will
be
the
most
attractive
targets
for
early
expansion.
In
so
doing,
we
have
composed
a
set
of
factors
which
Grey
Matter
feels
will
indicate
BDH’s
success
in
any
given
market.
With
the
timeline
of
one
to
one
and
a
half
years
in
mind,
this
report
highlights:
To
determine
our
final
three
candidates,
Grey
Matter
Consulting
examined
BDH's
preliminary
list
of
12
target
cities.
We
then
began
brainstorming
and
researching
the
EHR
marketplace
before
creating
a
decision
matrix
to
narrow
the
list
of
twelve
potential
targets
to
three.
With
these
three
cities
chosen,
we
gathered
additional
data
and
examined
each
city
under
more
detailed
criteria.
In
so
doing,
we
have
created
a
list
of
important
factors
that
Grey
Matter
Consulting
feels
will
indicate
success
in
a
given
region,
as
well
as
constructing
a
model
to
provide
a
clear
order
of
attractiveness
among
our
final
three
cities.
Using
this
recommendation,
BDH
can
focus
its
resources
on
attractive
expansion
efforts
that
will
create
the
seed
from
which
BDH
can
grow
across
the
Gulf
South
region.
• Three
cities
most
ripe
for
BDH’s
expansion
• Explanation
of
the
attractiveness
of
each
city
• Recommended
prioritization
for
the
allocation
of
company
resources
Retrieved
From
Better
Day
Health
6.
6
Additionally,
our
project
encompasses
two
other
facets
of
BDH’s
business.
Beyond
the
three
cities
we
have
analyzed
in
depth,
we
also
gathered
basic
information
and
applied
our
matrix
to
the
city
of
Baton
Rouge.
BDH
is
already
in
talks
with
LSU
Hospitals,
and
therefore
we
chose
to
remove
the
city
from
our
suggestions.
However,
having
this
information
may
provide
additional
confidence
for
this
expansion
into
the
LSU
Hospital
system.
Finally,
we
researched
similar
companies
within
the
targeted
region
to
provide
an
estimated
budget
for
BDH’s
marketing
strategy.
Within
this
estimated
budget,
we
recommend
a
certain
level
of
spending
to
go
towards
each
of
the
three
top
cities,
in
accordance
with
market
size
and
attractiveness.
Overall,
this
report
contains
an
analysis
of
which
cities
are
the
best
targets
for
BDH’s
expansion,
and
a
target
amount
for
BDH’s
marketing
budget
in
each
city.
PROJECT
DESCRIPTION
CONTINUED…
• Narrow
BDH’s
preliminary
list
of
12
potential
markets
down
to
3
candidates
for
expansion.
• Analyze
these
3
cities
and
determine
the
factors
that
will
indicate
BDH’s
success
in
each
market.
• Compose
a
marketing
budget
for
BDH
based
on
comparable
companies
in
the
target
region.
• Provide
a
plan
for
distribution
of
marketing
budget
based
on
city
attractiveness
analyzed
previously.
Project
Objectives
SWOT
Analysis:
In
order
to
analyze
BDH’s
position
in
the
industry,
Grey
Matter
conducted
a
SWOT
analysis.
One
of
the
company’s
main
strengths
is
its
EHR
software’s
ability
to
consolidate
all
comprehensive
patient
records
to
reduce
costs
and
wasted
time.
On
the
other
hand,
one
of
BDH’s
main
weaknesses
lies
in
the
fact
that
healthcare
professionals
must
be
trained
to
properly
operate
the
software
and,
as
a
result,
these
people
might
be
hesitant
to
adopt
a
new
routine.
There
are
many
opportunities
BDH
can
take
advantage
of
in
the
healthcare
industry.
One
of
the
main
opportunities
is
the
attractiveness
of
the
healthcare
sector,
which
is
projected
to
grow
33.4%
by
2018.
(Marketline,
2014).
BDH’s
biggest
threats
are
the
regulations
it
might
face
in
the
future.
These
regulations
include,
but
are
not
limited
to,
privacy,
security,
and
quality
regulations.
SWOT
ACRONYM
Strengths
Internal
Weaknesses
Internal
Opportunities
External
Threats
External
7.
7
Retrieved
from
masonmyers.com
Porter’s
Five
Forces
Analysis:
A
quick
analysis
of
the
industry
shows
Better
Day
Health
to
have
a
strong,
but
not
steadfast,
position
in
the
Electronic
Health
Records
(EHR)
industry.
Buyer
power,
supplier
power,
rivalry
among
existing
competitors,
threat
of
new
entry,
and
threat
of
substitution
are
the
elements
to
examine
in
order
to
determine
the
position
of
BDH
in
the
EHR
industry.
BDH
has
medium
to
high
buyer
power
because
older
EHR
systems
are
becoming
outdated
due
to
new
Affordable
Care
Act
mandates
and
disapproval
of
other
current
EHR
systems.
The
supplier
power
of
BDH
is
low
to
medium
due
to
a
combination
of
the
contracts
BDH
has
in
place
which
mitigate
their
risk
as
well
as
the
value
of
their
proprietary
algorithms
and
in-‐house
coding
which
allows
their
data
system
to
outperform
competitors.
There
is
a
high
degree
of
rivalry
among
competitors,
which
stems
from
constant
advances
of
technology
making
staying
on
top
a
challenge.
The
threat
of
new
entry
in
the
EHR
market
is
medium
to
high
because
of
the
threat
of
the
technology
being
easily
duplicated.
The
threat
of
substitution
BDH
faces
is
medium
to
low
as
they
do
not
yet
have
a
direct
competitor.
Other
EHR
systems
still
allow
for
doctors
to
manually
enter
their
patient
data,
or
doctors
can
contract
with
a
third
party
to
input
this
data.
BDH
is
the
only
EHR
system
currently
on
the
market
that
allows
doctors’
dictation
to
enter
health
records
into
the
system.
Changes
in
the
current
EHR
mandate
could
cause
an
influx
in
threats
of
substitution,
which
can
effect
the
survival
of
BDH.
The
firm,
overall,
has
a
wide
variety
of
strengths
and
opportunities
that
can
be
taken
advantage
of.
Likewise,
adequate
planning
and
execution
by
BDH
can
mitigate
the
forces
of
the
threats
of
new
entrants
and
rivalry
among
competitors,
making
them
a
steady
contender
in
the
EHR
systems
market.
8.
8
INITIAL
MARKETRESEARCH
&
ANALYSIS
To
identify
the
three
target
cities
from
the
original
twelve
options,
we
developed
weighted
criteria
to
properly
evaluate
each
city’s
attractiveness
for
BDH.
We
did
this
by
constructing
a
decision
matrix
in
Microsoft
Excel,
inputting
the
following
data
and
calculating
which
three
cities
best
fit
BDH’s
target
market
needs.
We
distributed
the
weights
as
follows:
• University
hospitals:
30%
• Number
of
orthopedic
clinics:
25%
• Number
of
doctors:
20%
• Distance
from
New
Orleans:
15%
• Population:
10%
INITIAL
MARKET
ASSESSMENT
Lafayette,
LA
Alexandria,
LA
Shreveport,
LA
Beaumont,
TX
Orange,
TX
Austin,
TX
Houston,
TX
Jackson,
MS
Biloxi,
MS
Charlotte,
NC
Birmingham,
LA
Atlanta,
GA
Overall,
we
researched
the
above
data,
and
decided
that
Atlanta,
Birmingham,
and
Houston
were
the
most
attractive
cities
of
the
twelve
options
presented
by
the
client.
Better
Day
Health
provided
a
list
of
12
initial
cities
which
they
were
considering
for
expansion.
The
cities
included
in
the
original
12
are
as
follows:
9.
9
University
hospitals
were
given
the
most
weight
because
we
feel
the
client
values
that
the
target
market
should
have
at
least
one
university
hospital.
University
Hospitals
Orthopedic
clinics
were
the
second
most
weighted
criteria
because
BDH
has
already
experimented
with
orthopedic
clinics,
which
hopefully
will
translate
to
other
cities.
These
clinics
will
be
a
good
resource
for
introducing
the
software
to
physicians.
Clinics
also
have
high
client
traffic
on
a
daily
basis.
INITIAL
MARKET
ASSESSMENT
CONTINUED…
Orthopedic
Clinics
Doctors
are
next
in
rank
because
they
will
be
the
ones
implementing
the
software
in
their
practices
and
marketing
the
software
to
their
vast
healthcare
networks.
Doctors
Distance
from
New
Orleans
follows
because
it
impacts
the
attraction
of
a
city;
the
client
expressed
that
keeping
travel
costs
low
was
important.
BDH
representatives
will
have
to
travel
to
the
target
areas
to
market
the
product
and
help
physicians,
Distance
Population
is
the
least
weighted
criterion
in
the
initial
market
assessment.
Population
is
indicative
of
a
city’s
general
market
size
but
also
unspecific
to
the
EHR
industry
BDH
is
interested
in
reaching.
Population
Baton
Rouge
was
considered
(making
13
cities),
however,
since
BDH
already
is
looking
into
operations
in
the
Baton
Rouge
area,
it
was
excluded
from
our
research
of
new
market
cities
available
to
BDH.
We
then
brainstormed
and
compiled
a
list
of
criteria
to
shorten
the
list
of
cities
from
12
to
three,
based
on
requests
from
BDH
and
what
we
thought
were
relevant
criteria.
After
deciding
on
the
five
criteria
factors
above,
we
ranked
them
as
previously
mentioned
and
the
outcomes
from
the
decision
matrix
concluded
Atlanta,
Houston,
and
Birmingham
are
the
top
three
choices
for
expansion
by
BDH.
10.
10
Initial
Market
Assessment
Factor
Existence
of
University
Hospitals
Number
of
Orthopedic
Clinics
Number
of
Physicians
Population
Distance
from
New
Orleans
(miles)
Overall
Ranking
Factor
Weight
30%
25%
20%
10%
15%
City
Rank
Rank
Rank
Rank
Baton
Rouge
1
7
8
5
1
4
Lafayette
2
11
10
11
3
9
Alexandria
2
9
10
9
5
11
Shreveport
1
5
6
7
7
8
Beaumont/Orange
2
12
12
10
6
11
Austin
1
4
5
2
11
6
Houston
1
1
1
1
9
1
Jackson
1
8
7
8
4
5
Biloxi
2
10
9
12
2
10
Charlotte
1
5
4
3
12
7
Birmingham
1
3
3
6
8
3
Atlanta
1
2
2
4
10
2
INITIAL
MARKET
ASSESSMENT
CONTINUED…
After
determining
the
three
most
important
cities
for
Better
Day
Health´s
expansion,
Grey
Matter
Consulting
considered
it
essential
to
define
the
order
of
importance
of
the
final
cities.
We
designed
a
decision
matrix
in
order
to
obtain
this
information.
The
decision
matrix
presented
the
following
result:
1.
Houston
2.
Atlanta
3.
Birmingham
FINAL
DECISION
MATRIX
11.
11
FINAL
DECISION
MATRIX
CONTINUED…
The
decision
matrix
compared
the
three
cities
on
13
aspects
that
are
divided
in
three
factors.
Each
factor
was
assigned
a
certain
weight;
the
factors
of
each
category
add
up
to
100%
Population
(33.3%)
Population
0-‐5
(3.33%)
Population
6-‐18
(3.33%)
Population
19-‐64
(6.67%)
Population
65+
(6.67%)
Median
Household
Income
(20%)
DEMOGRAPHICS100%
MARKET100%
Number
of
Hospitals
(16%)
Number
of
University
Hospitals
(26.67%)
Number
of
Orthopedic
Clinics
(24%)
Number
of
Physicians
(16.67%)
Total
Health
Expenditure
(16.67%)
COST
OF
TRAVEL100%
Cost
of
Travel
(Flying)
(35%)
Cost
of
Travel
(Driving)
(35%)
Cost
of
Hotel
Stay
(30%)
After
repeating
the
same
process
in
each
of
the
13
aspects,
we
obtained
a
score
(based
on
the
rank)
for
each
city
in
each
factor.
The
dimensions
were
each
awarded
a
percentage
weight,
with
the
best
city
in
each
category
receiving
100%,
second
place
receiving
75%
of
possible
points,
and
third
receiving
50%.
Finally,
in
order
to
determine
the
total
score
of
each
city
we
multiplied
each
score
by
each
factor
and
added
them.
Then
we
ranked
the
cities
depending
on
their
score.
It
is
important
to
note
that
the
highest
score
possible
is
100.
From
this
information,
the
group
determined
in
which
order
BDH
should
focus
their
time
and
marketing
research.
Factor Houston Birmingham Atlanta
Demographics 10.00 5.88 12.63
Market 75.00 37.38 50.25
Cost of Travel 5.88 5.75 3.38
Total 90.88 49.00 66.25
12.
12
RATIONALE
BEHIND
STRATEGY
Each
item
in
our
decision
matrix
was
chosen
because
we
felt
it
would
affect
the
overall
attractiveness
of
a
city
to
Better
Day
Health.
Explained
here
is
our
rationale
for
each
category
we
evaluated:
The
number
of
orthopedic
clinics
is
a
key
feature
of
attractiveness
in
a
city
because
of
the
numerous
leads
those
clinics
provide
for
Better
Day
Health
to
explore.
One
of
BDH’s
main
investors
runs
an
orthopedic
clinic
in
Lake
Charles,
and
BDH
has
already
begun
their
pilot
program
in
the
center.
The
experience
with
orthopedics
will
be
invaluable
to
the
company
moving
forward
and
therefore
Grey
Matter
Consulting
felt
that
this
element
was
a
crucial
indicator
of
potential
success
for
BDH.
Orthopedic
Clinics
Beyond
the
number
of
clinics,
Grey
Matter
Consulting
has
examined
the
demographic
data
of
each
city’s
population.
As
a
healthcare
product,
BDH
will
benefit
from
an
aging
population,
as
it
will
lead
to
increases
in
a
city’s
healthcare
expenditure
in
the
future.
According
to
an
article
from
the
US
National
Library
of
Medicine
and
National
Institutes
of
Health,
the
aging
population,
specifically
those
65+,
require
a
higher
portion
of
work
within
the
orthopedic
specialty
and
therefor
an
aged
population
will
be
indicative
of
demand
for
BDH’s
product.
Population
Although
Better
Day
Health
is
a
derivative
product,
which
consumers
themselves
will
not
purchase,
the
wealth
of
the
population
is
highly
indicative
of
the
quality
and
quantity
of
healthcare
services
located
in
the
region.
People
that
are
insured
can
afford
healthcare,
regular
doctor
visits,
and
as
a
result
are
good
candidates
for
BDH’s
services.
The
higher
the
healthcare
expenditure
in
a
city,
the
more
potential
BDH
has
to
successfully
enter
a
new
market.
Although
EHR
will
only
receive
a
small
portion
of
the
total
healthcare
expenditure
in
each
given
marketplace,
the
larger
the
overall
expenditure
in
a
city,
the
more
attractive
and
valuable
the
market’s
potential
becomes.
FINAL
DECISION
MATRIX
CONTINUED…
Health
Care
Expenditure
13.
13
RATIONALE
BEHIND
STRATEGY
CONTINUED…
Hospitals,
in
general,
act
as
a
strong
resource
for
BDH,
because
they
allow
the
company
to
reach
a
large
number
of
physicians
with
whom
they
can
build
lasting
and
positive
relationships.
Therefore,
the
more
hospitals
within
a
given
city,
the
better
chance
BDH
has
to
enter
into
the
one
of
these
healthcare
institutions
and
gain
a
valuable
client.
Beyond
this,
the
presence
of
a
medical
school
within
a
target
city
represents
an
amazing
opportunity
for
Better
Day
Health.
With
the
proposed
integration
into
LSU
Health,
the
company
is
on
track
to
establish
itself
as
a
niche
player
in
the
medical
school
community.
In
Grey
Matter
Consulting’s
opinion,
this
represents
the
most
viable
strategy
for
BDH’s
success,
as
the
high
graduation
rates
from
these
hospitals
will
provide
Better
Day
Health
with
hundreds
of
physicians
trained
to
work
with
BDH
software,
who
can
then
further
spread
the
technology
throughout
their
career.
Hospitals
In
addition
to
research
on
the
number
of
hospitals
and
orthopedic
clinics
in
a
given
city,
Grey
Matter
Consulting
felt
it
was
prudent
to
determine
the
number
of
orthopedic
physicians
within
each
city.
These
physicians
are
the
clients
BDH
is
directly
targeting
with
their
product,
as
it
will
be
the
Physicians,
not
citizens,
who
will
drive
the
demand
for
BDH’s
system
in
their
practices.
Beyond
this,
Physicians
also
represent
an
invaluable
marketing
tool
for
BDH.
These
users
will
create
an
organic
word
of
mouth
campaign,
in
which
they
will
refer
and
promote
BDH’s
services
to
colleagues
in
the
healthcare
industry.
Therefore,
building
lasting
relationships
with
a
large
number
of
orthopedic
physicians
is
critical
to
the
long-‐term
success
of
BDH
in
any
city
that
it
chooses
to
expand
its
services.
Physicians
As
a
startup
with
limited
resources,
BDH
must
be
conscientious
of
the
money
it
spends
towards
client
acquisition
and
marketing.
Unfortunately,
however,
the
nature
of
the
EHR
requires
BDH
to
build
strong
relationships
with
doctors
and
hospitals
in
order
to
market,
explain,
and
implement
BDH’s
system.
This
will
lead
to
numerous
trips
between
BDH
and
potential
clients,
therefore
low
travel
costs
are
a
critical
factor
in
targeting
a
new
market.
Cost
of
Travel
14.
14
RATIONALE
BEHIND
STRATEGY
CONTINUED…
After
inputting
all
of
the
data
into
our
weighted
decision
matrix,
Houston
emerged
as
the
most
attractive
city
for
BDH’s
expansion,
followed
by
Atlanta,
with
Birmingham
ranked
last.
Houston
scored
a
total
of
90.88
points.
Each
city
received
a
score
that
had
three
components:
market,
demographics,
and
cost
of
travel.
Houston
had
the
highest
score
in
both
the
market
and
cost
of
travel
sections,
posting
a
score
of
75.00
and
5.88,
respectively.
Houston
also
landed
in
second
place
in
demographics
with
a
score
of
10.00,
trailing
Atlanta
in
this
category.
The
market
segment
was
the
most
heavily
weighted
section
of
the
decision
matrix;
by
winning
this
segment
handily,
Houston
grabbed
the
top
place
of
the
three
target
cities.
Atlanta
scored
a
total
of
66.25,
with
a
breakdown
of
12.63,
50.25,
and
3.38
in
Demographics,
Market,
and
Cost
of
Travel,
respectively.
Birmingham
landed
in
last
place,
with
a
total
of
49.00
points.
Birmingham
scored
37.38
in
the
market
category,
the
lowest
score
in
this
segment.
The
large
separation
between
Houston
and
the
two
cities
below
it
results
almost
entirely
from
the
gap
in
market
segment
scores.
Based
on
these
results,
we
recommend
Houston
as
the
most
attractive
city
for
Better
Day
Health’s
expansion
efforts.
FINAL
DECISION
MATRIX
RESULTS
15.
15
HOUSTON
Houston
ranked
first
in
our
overall
decision
matrix
due
to
its
high
population,
large
number
of
hospitals
and
orthopedic
clinics,
and
high
total
healthcare
expenditure.
With
so
many
attractive
attributes,
Grey
Matter
Consulting
believes
BDH
will
be
able
to
successfully
expand
into
the
Houston
market.
About
9%
of
Houston’s
population
is
over
65
years
old,
which
is
favorable
since
orthopedic
centers
in
Houston
probably
have
a
high
patient
return
rate
(US
Census
Bureau).
The
older
population
will
frequent
Houston’s
many
orthopedic
clinics
more
often
that
the
rest
of
Houston’s
population.
The
median
household
income
for
Houston
comes
in
at
$45,010
(US
Census
Bureau).
Although
this
number
is
below
the
US
median
household
income
of
$53,657
(typical
American
family
earned
$53,657
last
year),
73.94%
of
residents
are
insured
and
can
afford
healthcare,
regular
doctor
visits,
and
as
a
result
are
good
candidates
for
BDH’s
services
(US
Census
Bureau).
With
1,550,271
people
insured,
Houston
has
four
times
more
people
with
healthcare
coverage
than
the
second
leading
city,
Atlanta
(US
Census
Bureau).
The
total
healthcare
expenditure
is
$9,184,066,060
(State
Health
Facts),
which
is
another
reason
Houston
is
an
attractive
market
to
enter
for
BDH.
Houston’s
high
healthcare
expenditure
and
coverage
gives
BDH
a
better
potential
for
market
entry,
since
their
residents
will
go
to
the
doctors
more
frequently
since
they
are
covered.
Demographics
Houston
has
a
total
of
24
hospitals
(including
three
prominent
university
hospitals),
18
more
than
the
second
largest
market
(Birmingham
with
6)
making
this
the
most
attractive
attribute
for
entering
the
Houston
healthcare
market
(Healthgrades).
Houston’s
large
number
of
hospitals
gives
BDH
a
better
opportunity
to
break
into
the
market
because
that
increases
the
number
of
physicians
they
can
include
in
their
potential
client
base.
Market
Houston
Matrix
Rankings
• University
Hospitals
1
• Total
Hospitals
1
• Total
Orthopedic
Clinic
1
• Total
Physicians
1
• Total
Healthcare
1
Total
Orthopedic
Physicians:
Houston—251
Atlanta—196
Birmingham—156
16.
16
HOUSTON
CONTINUED…
Market
Continued…
Houston
has
a
large
number
of
orthopedic
clinics,
which
is
another
attractive
reason
to
enter
the
Houston
healthcare
market.
BDH
currently
operates
in
the
orthopedic
market
in
Lake
Charles,
which
provides
credibility
when
trying
to
sell
to
the
orthopedic
clinics
in
Houston.
Because
Houston
has
72
orthopedic
clinics
(Healthgrades),
BDH
has
room
for
growth
within
Houston.
In
addition
to
the
24
Houston
hospitals,
four
of
which
are
university
hospitals,
there
are
a
total
number
of
251
practicing
orthopedic
physicians
(Healthgrades).
Houston
has
the
largest
number
of
orthopedic
physicians
out
of
the
three
target
cities.
Travel
Travel
from
New
Orleans
to
Houston
would
not
require
extensive
funds
with
a
six
hour
drive
time
costing
$41.23
(Fuel
Economy),
a
flying
time
of
one
hour
costing
$109.00,
and
a
hotel
costing
approximately
$169
per
night
(Trivago).
Conclusion
Houston’s
strong
data
characteristics
have
confirmed
it
as
the
most
attractive
market
for
BDH
to
enter.
BDH
has
the
opportunity
to
infiltrate
Houston’s
healthcare
market
and
create
a
strong
brand
presence
in
the
city.
Retrieved
from
www.mdanderson.org/
17.
17
FINAL MARKET ASSESMENT
Market
Factors
Factor Weight Atlanta
Internal
%
Overall
%
Rank Score
Demographics 100.00% 15.00% 1 12.63
Population 33.33% 5.00% 2 75
Population 0-5yrs 3.33% 0.50% 3 50
Population 6-18yrs 3.33% 0.50% 4 25
Population 19-64yrs 6.67% 1.00% 1 100
Population 65yrs+ 6.67% 1.00% 3 50
Median Household
Income
20.00% 3.00% 1 100
Insurance Coverage 26.67% 4.00% 1 100
Market 100.00% 75.00% 2 50.25
Number of Hospitals 16.00% 12.00% 4 25
Number of University
Hospitals
26.67% 20.00% 2 75
Number of
Orthopedic Clinics
24.00% 18.00% 2 75
Number of Physicians 16.67% 12.50% 2 75
Total Health
Expenditure
16.67% 12.50% 2 75
Cost of Travel 100.00% 10.00% 4 3.38
Cost of Travel
(Driving)
35.00% 3.50% 4 25
Cost of Travel
(Flying)
35.00% 3.50% 3 50
Cost of Hotel Stay 30.00% 3.00% 4 25
Total 100.00% 100.00% 66.25
Overall Ranking 2
ATLANTA
Atlanta
ranked
second
in
our
overall
decision
matrix
as
it
showed
strong
results
across
almost
all
of
our
categories.
With
a
large
population,
the
Emory
University
system,
and
many
additional
opportunities
for
Better
Day
Health
to
expand
and
grow,
Grey
Matter
Consulting
has
pegged
Atlanta
as
the
second
most
attractive
market
in
the
Gulf
South
region.
Using
their
experience
gained
in
New
Orleans
and
Baton
Rouge,
as
well
as
our
data
for
our
top
recommended
city,
Houston,
we
believe
Better
Day
Health
can
establish
itself
as
a
strong
niche
player
in
the
Atlanta
Health
Care
marketplace.
Demographics
In
our
analysis
of
the
Atlanta
marketplace,
Grey
Matter
Consulting
has
honed
in
on
several
key
statistics,
discovered
through
an
analysis
of
the
latest
US
Census
data
from
2014,
which
define
the
size
and
attractiveness
of
the
city.
For
starters,
Atlanta
proper
hosts
an
estimated
population
of
420,256
people
(US
Census
Bureau).
This
places
Atlanta
in
second
on
our
population
ranking
and
provides
a
large
pool
of
potential
clients
for
Better
Day
Health.
Analyzing
this
factor
even
further,
we
found
that
the
age
breakdown
of
Atlanta
matches
the
general
trends
across
the
US.
Next,
Grey
Matter
Consulting
found
that
Atlanta
hosts
the
greatest
average
income
of
our
target
cities.
With
Better
Day
Health
representing
a
top
tier
product
in
the
EHR
marketplace,
it
will
find
a
large
market
with
the
affluent
population
of
the
Atlanta
region.
Lastly,
Grey
Matter
Consulting
has
tracked
the
healthcare
coverage
of
Atlanta’s
population.
With
the
advent
of
the
Affordable
Care
Act
and
the
EHR
mandates
it
contains,
insurance
coverage
is
on
the
rise
across
America.
Fortunately,
however,
Atlanta
is
ahead
of
the
curve
on
insurance
coverage
and
ranks
second
in
its
percentage
of
population
with
health
insurance.
This
will
provide
the
Atlanta
marketplace
with
increased
funding
as
well
as
increasing
the
number
of
individuals
with
access
to
healthcare.
18.
18
Market Factors Factor Weight Atlanta
Internal % Overall % Rank Score
Demographics 100.00% 15.00% 1 12.63
Population 33.33% 5.00% 2 75
Population 0-5yrs 3.33% 0.50% 3 50
Population 6-18yrs 3.33% 0.50% 4 25
Population 19-64yrs 6.67% 1.00% 1 100
Population 65yrs+ 6.67% 1.00% 3 50
Median Household Income 20.00% 3.00% 1 100
Insurance Coverage 26.67% 4.00% 1 100
ATLANTA
CONTINUED…
In
any
marketplace
analysis,
one
must
go
beyond
demographic
trends
and
explore
those
key
features
that
help
to
guarantee
a
company’s
successful
expansion.
For
Better
Day
Health,
Grey
Matter
Consulting
discerned
five
features
that
help
to
define
the
size
and
attractiveness
of
Atlanta’s
healthcare
marketplace.
These
include:
• 5
top
tier
hospitals
(Healthgrades)
• 2
medical
schools
with
high
graduation
rates
(Emory
University
and
Morehouse
College)
• 62
Orthopedic
clinics
(Healthgrades)
• 196
Orthopedic
physicians
(Healthgrades)
• About
$2
billion
spent
towards
health
care
expenditure
(State
Health
Facts)
Market
Assuming
BDH
representatives
will
be
traveling
from
New
Orleans,
Grey
Matter
Consulting
has
determined
that
Atlanta
will
likely
be
the
most
expensive
to
visit
and
network
with
clients.
With
the
farthest
distance
of
our
top
cities
from
New
Orleans,
the
cost
of
travel
for
Atlanta
is
as
follows:
• By
plane:
$128
(Trivago)
• By
car:
$57.50
(Fuel
Economy)
• Hotel:
$200
per
night
(Trivago)
Regardless
of
expense,
Grey
Matter
Consulting
finds
Atlanta
to
be
a
highly
attractive
market,
which
makes
the
cost
of
doing
business
there
worthwhile.
19.
19
ATLANTA
CONTINUED…
Overall,
Atlanta
is
an
attractive
city
for
BDH
to
expand
into
because
it
holds
the
second
largest
population
and
the
highest
average
income.
Additionally,
Atlanta
has
the
second
highest
percent
of
population
with
health
insurance,
adding
to
the
city’s
attraction.
In
terms
of
the
market,
Atlanta
represents
a
large
market
and
an
opportunity
to
grow
and
create
relationships
with
various
hospitals
and
doctors.
Finally,
Atlanta
is
the
most
expensive
city
to
visit
since
it
is
the
farthest
distance
from
New
Orleans.
Nevertheless,
Grey
Matter
Consulting
considers
Atlanta
an
attractive
market
because
of
the
many
positive
expansion
opportunities
it
has
to
offer
to
BDH.
Conclusion
Retrieved
from
Emory
University
Hospital
20.
20
BIRMINGHAM
Based
on
the
research
of
Grey
Matter
Consulting
it
is
easy
to
say
that
Birmingham
is
the
third
and
least
attractive
city
of
those
analyzed
for
Better
Day
Health’s
expansion.
Birmingham
consistently
scored
lower
than
both
Atlanta
and
Houston
in
the
decision
matrix
and
proves
to
be
a
smaller
city
with
less
opportunity
of
success.
Nevertheless,
as
explained
later
in
detail,
Birmingham
has
attractive
factors
that
are
beneficial
if
the
company
wants
to
initiate
their
expansion
with
a
small
market.
Birmingham
has
the
lowest
population
of
the
top
three
cities,
which
are
listed
below:
Demographics
However,
Birmingham's
small
population
is
not
the
most
desirable
market
for
Better
Day
Health
compared
to
Atlanta
and
the
over
two
million
population
of
Houston.
Furthermore,
the
median
household
income
for
Birmingham
is
slightly
over
$31,000
per
year,
the
lowest
of
the
three
cities
(US
Census
Bureau).
Nonetheless,
82.6%
of
the
total
population
has
insurance
coverage
putting
Birmingham
in
first
place
in
this
regard,
compared
to
Houston
with
73.94%
and
Atlanta
with
86.74%
of
their
total
populations
(Appendix
1)
(US
Census
Bureau).
In
general,
compared
to
the
other
two
cities
in
terms
of
demographics,
the
above
information
could
be
positive
for
Better
Day
Health
if
it
wants
a
small
market
to
begin
its
expansion.
• Birmingham
Population
à
212,193
• Atlanta
Population
à
420,256
• Houston
Population
à
2,096,661
(US
Census
Bureau)
• Birmingham
Population
65+
à
12.4
%
or
26,301
individuals
• Atlanta
Population
65+
à
10.44%
or
43,874
individuals
• Houston
Population
65+
à
9.43%
or
197,715
individuals
(US
Census
Bureau)
Given
that
Birmingham
holds
highest
percentage
of
individuals
65
years
and
older,
its
market
gains
more
of
an
appeal
to
Better
Day
Health
than
originally
thought.
21.
21
BIRMINGHAM
CONTINUED…
When
compared
to
Atlanta
and
Houston,
Birmingham
has
the
least
number
of
orthopedic
clinics
and
number
of
physicians.
Birmingham
does,
however,
have
one
more
hospital
than
Atlanta
and
also
has
a
university
hospital,
University
of
Alabama
Birmingham
Medicine.
Birmingham
has
the
smallest
population
out
of
the
top
three
cities
chosen.
Per
capita,
Birmingham
has
the
highest
healthcare
expenditure
but
still
has
the
lowest
total
healthcare
expenditure
when
compared
to
Atlanta
and
Houston.
In
conclusion,
when
taking
this
information
into
account,
Better
Day
Health
may
consider
Birmingham
as
a
smaller
test
market
in
order
to
further
grow
its
brand,
but
not
one
where
it
can
capitalize
and
rapidly
grow
its
customer
base
compared
to
what
Atlanta
and
Houston
offer.
Travel
The
cost
to
travel
to
Birmingham
from
New
Orleans
is
roughly
$40.20
in
a
car,
which
is
the
cheapest
driving
cost
of
the
three
cities
(Fuel
Economy).
Birmingham
also
has
the
cheapest
hotel
rates
which
makes
spending
the
night
more
desirable
after
a
drive
over.
The
only
downfall
to
traveling
to
Birmingham
is
if
choosing
to
fly,
Better
Day
Health
will
incur
the
highest
air
travel
rates
out
of
all
of
the
top
three
cities.
In
terms
of
traveling
distance,
lodging,
and
cost
of
driving,
Birmingham
is
the
most
desirable
market
for
Better
Day
Health,
in
comparison
with
Houston
and
Atlanta.
CITY
HOUSTON
BIRMINGHAM
ATLANTA
COST
OF
TRAVEL
(Driving)
$41.23
$40.20
$57.50
Market
22.
22
BIRMINGHAM
CONTINUED…
In
general,
Birmingham
is
an
attractive
city
for
Better
Day
Health
if
they
want
a
small
market
to
begin
expanding
to.
In
terms
of
demographics,
Birmingham
is
the
city
with
the
smallest
population.
But,
as
mentioned
before,
the
percentage
of
the
population
19
years
or
older
and
the
percentage
of
the
population
with
insurance
coverage
are
both
positive
aspects
for
the
company.
Finally,
in
terms
of
distance
and
cost
of
travel
from
New
Orleans,
Birmingham
is
attractive
because
it
is
the
cheapest
city
to
travel
to.
Nevertheless,
among
the
top
three
cities
it
is
the
least
attractive
primarily
due
to
the
fact
that
it
is
a
small
city
compared
to
Houston
and
Atlanta.
The
population
is
the
smallest
one
and
therefore
the
number
of
people
19
years
or
older,
the
number
of
orthopedic
clinics,
and
the
number
of
physicians
are
all
smaller
than
the
other
cities.
Conclusion
Retrieved
from
UAB
Hospital
23.
23
BATON
ROUGE
Demographics
Baton
Rouge
hosts
a
large
population
that
is
well
distributed
amongst
demographic
age
groups.
Beyond
this
fact,
the
city
can
claim
the
highest
per
capita
healthcare
expenditure
amongst
our
final
candidates.
These
facts
indicate
a
robust
and
growing
healthcare
market,
upon
which
BDH
should
seek
to
capitalize
in
the
coming
months.
Market
Next,
we
turn
towards
Baton
Rouge’s
healthcare
market
and
the
opportunities
it
represents
for
BDH.
With
six
hospitals
and
the
region’s
largest
collegiate
healthcare
system,
the
city
makes
up
for
its
shortcomings
in
the
orthopedic
clinic/physician
category
(which
rank
fourth
amongst
our
final
candidates)
(Healthgrades).
Furthering
BDH’s
potential
for
growth,
the
integration
with
LSU
healthcare
represents
an
opportunity
that
Grey
Matter
believes
will
solidify
BDH’s
position
in
the
EHR
marketplace.
Though
not
included
in
our
recommended
final
cities,
Baton
Rouge
was
a
necessary
location
to
analyze
for
BDH’s
expansion.
BDH
has
already
begun
to
expand
into
the
region
by
forming
a
tentative
agreement
for
integration
with
LSU
health
systems.
As
such,
Grey
Matter
wanted
to
confirm
the
efficacy
of
this
strategy,
as
well
as
demonstrate
that
our
matrix
correctly
predicts
attractive
markets
for
BDH.
When
analyzed
against
the
other
cities
in
our
final
matrix,
Baton
Rouge
would
occupy
the
third
position
in
our
recommendation
list,
due
to
strong
showings
in
demographic
distribution
and
healthcare
expenditures
by
the
city.
When
further
compounded
by
the
low
costs
of
travel
and
proximity
to
their
base
of
operations,
our
matrix
indicates
that
Baton
Rouge
is
indeed
a
viable
candidate
for
BDH’s
early
expansion
goals.
24.
24
BATON
ROUGE
CONTINUED…
With
close
proximity
to
BDH’s
home
office
as
well
as
their
Lake
Charles
clinics,
Baton
Rouge
would
require
the
least
amount
of
resources
to
visit
and
follow-‐up
with
potential
clients,
costing
about
$10.66
to
drive
there,
and
only
$90
for
a
hotel
stay.
As
a
budding
startup,
this
reduced
cost
per
client
acquisition
is
more
important
now
than
it
will
be
in
the
coming
months.
As
such,
this
city
is
an
excellent
location
for
BDH’s
initial
expansion
and
Grey
Matter
wholeheartedly
supports
this
strategic
initiative.
MARKETING
BUDGET
Grey
Matter
Consulting
analyzed
the
advertising
and
marketing
budgets
of
three
of
Better
Day
Health’s
competitors:
Greenway
Medical
Technologies
Inc.,
Athena
Health,
and
Henry
Schein
Inc.
These
three
companies
were
the
only
organizations
in
the
industry
to
publish
their
marketing
budgets
as
anything
other
than
general
expenses.
Grey
Matter
realizes
that
these
companies
are
much
larger
than
BDH,
however
these
companies
are
similar
enough
to
warrant
comparison.
Greenway
Medical,
Athena,
and
Henry
Schein
spend,
on
average,
1.5%
of
revenues
on
marketing.
(Athena,
2014)
(Greenway,
2013)
(Henry
Schein,
2014)
We
feel
this
is
an
appropriate
level
of
spending
for
BDH
as
well.
Taking
into
account
that
BDH
is
a
startup
with
limited
cash
flows,
we
believe
1.5%
is
a
reachable
and
appropriate
level
of
marketing
spending.
We
arrived
at
this
number
by
averaging
the
three
above
companies’
percentage
of
revenues
spent
on
marketing
from
2012
to
2014.
The
previously
mentioned
companies
spend
roughly
between
0.12%
and
3%
of
revenues
on
marketing,
so
in
the
long
term,
BDH
can
adjust
its
spending
depending
on
their
performance.
Below
is
a
table
presenting
our
suggestion
based
upon
BDH’s
projected
revenues.
25.
25
MARKETING
BUDGET
CONTINUED…
Better
Day
Health,
Inc.
2017
2016
2015
Revenue
$37,637,875.00
$11,553,508.00
$1,553,508.00
Adv.
Expense
$564,568.13
$173,302.62
$23,302.62
Ad
expense
as
a
%
of
rev.
1.50%
1.50%
1.50%
The
most
attractive
market
for
expansion
is
Houston,
TX.
Houston
ranked
highest
in
our
decision
matrix
followed
by
Atlanta,
GA
and
Birmingham,
AL.
Houston
showed
the
highest
potential
in
areas
including
number
of
orthopedic
physicians
and
number
of
university
hospitals.
Houston
ranked
first
over
all
in
our
decision
matrix
and
carried
an
overall
score
of
90.88%
out
of
100%.
The
second
closest
city
was
Atlanta.
However,
the
decision
matrix
clearly
shows
that
Atlanta
consistently
scored
lower
than
Houston
overall.
MARKETING
BUDGET
RECOMMENDATIONS
Grey
Matter
recommends
that
BDH
expand
to
Houston,
TX.
Houston
shows
the
most
potential
as
an
expansion
location
because
it
has
positive
synergy
with
BDH’s
current
resources
and
has
the
potential
for
continual
growth.
To
successfully
penetrate
the
Houston
market,
we
recommend
that
BDH
employ
a
marketing
plan
to
increase
brand
awareness.
To
support
this
marketing
plan
BDH
should
delegate
a
healthy
budget
towards
marketing.
Based
on
industry
norms
as
well
as
data
from
similar
companies,
Grey
Matter
suggests
allocating
a
marketing
budget
of
roughly
$23,000
in
2015,
which
is
1.5%
of
revenues
projected
as
shown
above,
across
the
three
most
attractive
cities,
allocated
as
follows:
•
Houston
(45%
of
budget):
$10,500
•
Atlanta
(30%
of
budget):
$7,000
•
Birmingham
(25%
of
budget):
$6,000
CONCLUSIONS
AND
FINAL
RECOMMENDATIONS
26.
26
City
Median
Household
Income
Insurance
Coverage
Health
Care
Expenditur
e
(per
insured
capita)
Total
Health
Care
Expenditure
Cost
of
Travel
(Driving)
Cost
of
Travel
(Flying)
Cost
of
Hotel
Stay
Number
of
University
Hospitals
Houston
$45,010
73.94%
$5,924
$9,184,066,060
$41.23
$109.00
$169.00
3.00
Birmingham
$31,335
82.57%
$6,272
$1,098,885,760
$40.20
$461.00
$120.00
1.00
Baton
Rouge
$38,593
82.99%
$6,795
$1,293,924,285
$10.66
$-‐
$90.00
1.00
Atlanta
$46,631
86.74%
$5,467
$1,992,951,114
$57.50
$128.00
$200.00
2.00
APPENDIX
APPENDIX
1
APPENDIX
2
City
Total
Population
%
Of
Population
with
Insurance
Coverage
Houston
2,195,914
70.60%
Birmingham
212,113
82.60%
Atlanta
447,841
81.40%
City
Number
of
Hospitals
Number
of
Orthopedic
Clinics
Population
Number
of
Physicians
Population
6-‐18yrs
Population
19-‐64yrs
Population
65yrs+
Houston
24
72
251
2,096,661
8.48%
27.13%
59.70%
9.43%
Birmingham
6
35
156
212,193
6.90%
21.49%
59.18%
12.40%
Baton
Rouge
6
14
61
229,447
6.50%
22.40%
59.90%
11.20%
Atlanta
5
62
196
420,256
6.82%
20.67%
68.63%
10.44%
28.
28
LEGEND
Changeable Input
Changeable Overall Weight
Factors 5.00%
Results*
Main Ranking Point 1
Total Score 100.00
City Score 100
Red Corner - Comment 100
(Hover over cell to read
comment)
*NOTE: Result cells should remain unchanged.
( To view the raw data for each variable, click on
the "Data" tab. For more information about
sources and assumptions, refer to "Sources" tab.)
Point Scale
Place Score
1 100
2 75
3 50
4 25
29.
29
PROJECT
CHARTER
APPENDIX
CONTINUED…
Team Members
Team Member Role(s) Contact Information
1. Nathan Benjamin Project Manager nbenjam@tulane.edu
(703) 855-3941
2. Hailey Breisacher Management and Leadership
Specialist
hbreisac@tulane.edu
(601) 463-2063
3. Emma Christon Branding and Social Media
Specialist
echrist1@tulane.edu
(650) 766-0839
4. Lena Franklin Presentation Design Specialist lfrankl@tulane.edu
(561) 504-4664
5. Samuel Gautreau Team Management and
Marketing Psychology Specialist
samuelgautreau@gmail.com
(956) 434-1501
6. David Kahn Communication Liaison dkahn1@tulane.edu
(407) 970-3486
7. Morgan Lopez Graphic Design Specialist Morgan.Lopez13@ymail.com
(713) 882-5531
8. María Camila Prieto
Nassar
Marketing Specialist MariaCamilaPrietoNassar@gmail.com
(504) 881-5320
9. James Ray Business Modeling and Legal
Specialist
jray2@tulane.edu
(504) 452-9662
10. Maria Camila Rico Financial Analyst mricopri@tulane.edu
(786) 731-5959
11. Carlos F. Salazar Financial Analyst csalaza@tulane.edu
(504) 462-4672
12. Maria Thomas Financial Analyst m.thomas10@unaindes.edu.co
(504) 909-4778
30.
30
PROJECT
CHARTER
CONTINUED…
APPENDIX
CONTINUED…
Client Business Description
Better Day Health is a medical technology company that focuses on the electronic data entry and
transcription of patient health records. The company integrates innovations in the technology and healthcare
industries and brings its products into healthcare facilities and providers around Louisiana, Virginia, and
New York. The company’s goal is to install equipment that saves doctors and healthcare facilities time and
money, as well as improves the quality and efficiency of the doctors’ work. Most importantly, these new
inventions can help to save lives every day. This innovation is accomplished through Better Day Health’s
proprietary application and software. By utilizing the latest radio frequency identification (RFID), speech-to-
text, and medical transcription technologies, the company has created a system that reduces the time doctors
spend entering data. In doing so, the company provides a product that not only improves the doctor-patient
dynamic and quality of care, but also frees up doctors “from being the most expensive data clerks on the
market.”
This company is driving a completed trial version of its technologies through two separate clinics in the
Lake Charles area. The company is projecting widespread adoption in the small clinic market segment due
its ease of use and its ability to seamlessly integrate with existing technologies in hospitals and doctors’
offices.
Client Organization Mission
Better Day Health’s purpose is “to create innovations that drive dramatic improvements in the way medicine
is practiced that lower costs, save lives, extend resources and facilitate closer patient-provider relationships,”
(www.betterdayhealth.com/about-us/). This company aims to improve the doctor-patient care relationship
with efficient, engaging, and cost-saving measures implemented through mobile and web-based innovations
in the healthcare industry.
Client Goal for Project
• The goal of this project will be to create a formula for analyzing and
comparing target cities for Better Day Health’s expansion.
• We will create a diagnostic model through Excel, which will analyze key
features of each city i.e. number of clinics, population, average age, other
demographic factors, etc., to create a short list of three to five markets we find
most attractive.
• Learn about the educational medical communities and the potential to integrate
Better Day Health into these systems (i.e. LSU, Tulane etc.)
• Create a timeline that demonstrates where and when Better Day Health should
leverage its resources across multiple southern cities.
31.
31
Key Stakeholders
Name / Group / Role(s) Primary Concerns
Dr. Keith Desonier, Dr. John Noble, and
doctors in general who offer the patients a
health related service by taking care of them
and ensuring their safety.
Use their time efficiently to provide superior customer
service. Make accurate diagnosis (which will be easier
with EHS since the doctor has access to the complete
clinical history of the patient).
ENT Associates, Center for Orthopedics, and
customers: health care providers.
Maximize the company’s workforce labor time, increase
their doctors’ satisfaction (which will lead to a lower
turnover rate), and reduce costs.
Andre duPlessis, MHA, COO of Presbyterian,
St. Luke's Hospital, and investors: provide
financial support for the development of the
project.
Gain long-term profit from their shares on the project.
Patients Receive satisfactory service, accurate diagnoses and
treatments.
Peter Ragusa, Rand Ragusa, Roman
Khmaladze, Don Lazzari, Jeff Miller, Howard
Luks/ Better Day’s Management
Provide a high quality product to clients, manage the risks
the firm faces, and create strategies to obtain earnings.
Nuance Healthcare, Isabel Healthcare,
Motorola Solutions, Qualcomm Life/ Partners:
strategic allies that help promote products to
enter the market.
Create a quality product that provides return on
investments and awareness for partner products/services.
Nuance, M*Modal, Care Cloud, Practice
Fusion & drchrono.com/ Competitors:
Documentation vendors.
Provide customers with an easy access to information.
Government: ensure the welfare of the
citizens.
Regulate companies’ actions in order to guarantee they
are safe for citizens.
PROJECT
CHARTER
CONTINUED…
APPENDIX
CONTINUED…
32.
32
Project Details
Project Description and Definition:
We will provide Better Day Health with three top cities to target for expansion in the next year and a half. First, we will narrow a
list of 12 potential targets to three using broad criteria such as population, demographic breakdown, and distance from New
Orleans.
With three cities chosen, we will rank these cities by attractiveness to Better Day Health using more criteria. Additionally, we will
analyze similar start-up companies within the target region to provide an estimated budget for Better Day Health’s marketing.
The ultimate goal will be to recommend a certain level of spending for each of the three top cities.
Deliverable Description
In creating this to-market plan for Better Day Health, we plan to deliver:
• A narrowed-down list of the top 12 cities into the three most practical expansion opportunities through analysis of
demographics including age, Healthcare coverage, and other factors.
• Provide a succinct analysis of healthcare providers and demographic trends within the top three cities focusing on
Orthopedic and University Health systems.
• Generate an 18 month marketing budget in line with current financial projections and growth, based on the use of a media
and grassroots marketing campaign.
• Divide budget for top three cities based on recommendations from various models.
Excluded Work
• We will not engage in lead generation or venture capital assistance directly.
• We will not actively solicit advertising agencies for business.
• We will not engage in primary research such as survey administration or polling.
• We will not complete or launch the actual advertising campaign in this project.
Organizational Objectives and Corresponding Project Objectives
Organizational Objectives Corresponding Project Objectives
Highlight Better Day Health’s unique
and valuable services in the modern
day health market.
Research and highlight trends and advances in medical markets,
particularly in areas where Better Day Health will launch within two
years (Tulane/LSU Medical community, Dallas, Baton Rouge, etc).
Better Day Health wants to expand its
reach into new cities
Establish which cities are the most attractive to Better Day Health, and
will be most accepting to their product.
Maximize leads and Better Day Health
clientele while minimizing marketing
costs.
Establish a potential marketing budget given the firm’s current and
projected performance, based on similar firms’ marketing budgets.
PROJECT
CHARTER
CONTINUED…
APPENDIX
CONTINUED…
33.
33
Project Requirements
Requirements that our project needs to fulfill:
• Define important criteria for market analysis
• Analyze 12 attractive markets based on defined criteria
• Select three best markets to enter
• Develop a financial analysis and determine an 18 month resource allocation budget
• Allocate 18 month budget between top cities respective to their size
Requirements that the client needs to meet:
• Attend the final in-class presentation
• Provide the group with all the necessary information to develop the project
• Attend all scheduled meetings
• Communicate regularly
Project Constraints and Limitations
Our group is composed of students with limited consulting experience who are looking to appropriate
business knowledge and skills through the development of this project. We consider the three-month time
frame to develop the project as a limitation that may affect the scope of the final project.
The access to relevant and specific industry information may also be a limitation. If we do not have
access to essential information, the development of the project could be affected. Furthermore, Grey
Matter Consulting does not have the capacity to access information that requires capital to acquire.
Key Assumptions and Risks:
Grey Matter Consulting can help Better Day Health expand into new markets, such as Texas.
• New marketing territory can be a risk for Grey Matter Consulting, because we are not familiar
with the area and who the exact target market is.
• It is unknown if there is any competing technology in the Texas market at this time, which would
potentially harm Better Day Health’s launch into the new market.
Grey Matter Consulting may not be able to help Better Day Health to expand its market
APPENDIX
CONTINUED…
PROJECT
CHARTER
CONTINUED…
34.
34
Grey Matter Consulting Signatures
Nathan Benjamin
David Kahn
James Ray
Lena Franklin
Samuel Gautreau
Hailey Breisacher
Morgan Lopez
Emma Christon
Carlos F. Salazar
Maria Camila Prieto Nassar
Maria Camila Rico
Maria Thomas
Approvals
Professor Forst
_______________________________________________ __________________
Signature
Date
Better Day Health
_______________________________________________ __________________
Signature
Date
APPENDIX
CONTINUED…
PROJECT
CHARTER
CONTINUED…
35.
35
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