Presentation on Intuitive Robotics


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Final project for information systems and strategy classes at Boston University School of Management, discussing how Intuitive Robotic\'s DaVinci machine is positioned for success in the future.

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Presentation on Intuitive Robotics

  1. 1. Intuitive Surgical<br />Team 4:<br />Asad Butt<br />Cristina Pedroza<br />Dinesh Kurian<br />EszterHamori<br />Joel Samen<br />
  2. 2. What is the da Vinci Robot?<br />
  3. 3. Agenda<br />Intuitive<br />Industry<br />Analysis<br />Outlook<br />Recommendations<br />Pictures of the da Vinci robot were borrowed from the Intuitive website.<br />
  4. 4. Da Vinci as a Disruptive Technology<br />Performance<br />Minimally invasive surgery, or conventional MIS<br />Traditional, open surgery<br />Time<br />Now<br />
  5. 5. Intuitive’s (Relatively) Quick Ascent<br />Today<br />1980s<br />1999<br />2000<br />FDA Approved; First Robot for Laparoscopic Surgery<br />Prototype Developed by Stanford for a U.S. Army Contract<br />More Than 1,676 Units Installed in More Than 1,500 Centers Worldwide<br />Introduced da Vinci Robot<br /><br />
  6. 6. Intuitive’s Solid Financial Growth<br />NASDAQ<br />Intuitive Surgical<br />* 2010/2009<br />Source:<br />
  7. 7. Agenda<br />Intuitive<br />Industry<br />Analysis<br />Outlook<br />Recommendations<br />
  8. 8. Intuitive isthe Industry<br />Bargaining Power of Suppliers<br />Bargaining Power of Customers<br />Threat of New Entrants<br />Threat of Substitute Products<br />Competitive Rivalry in Industry<br />Low Threat<br />Heavy Competition Between Part Makers<br />Intuitive Builds Robots Itself<br />Medium Threat<br />Hospitals Can Stick with Traditional Surgery<br />High Cost of Machines a Consideration<br />Medium Threat<br />Competitors Entering Soon<br />Opportunity for Intuitive to Further Differentiate<br />High Threat<br />Many Surgeons Prefer Tradition<br />LaparoscopicStill an Option<br />Very Low Threat<br />No Other FDA Approved Surgical Robot in Market Currently<br />
  9. 9. Agenda<br />Intuitive<br />Industry<br />Analysis<br />Outlook<br />Recommendations<br />
  10. 10. The Early Bird Catches the Worm<br />Channel and Location<br />Input<br />Cardica (CRDC)<br />Luna Technologies, Inc.<br />Capacity<br />Not Available to Many New Entrants<br />Swiss Precision Machining<br />High Tech<br />Capital Intensive<br />Once in a Hospital, No Room for Another Robotic Surgical Platform<br />
  11. 11. The of Learning<br />…<br />Surgical Procedures<br />Learning Curve<br />Endometrial Cancer – case-matched control study (122 patients)<br />40 min. decrease in average operating time<br />61% less blood loss<br />53% reduction days in hospital<br />Value of Data<br />Teaching/Learning/Best Practices<br /><br />
  12. 12. ...Also Takes Place at Home<br />Manufacturing Process<br />Managing Efficiency<br />Cellular layout: continues flow assembly line<br />Sub-assembled parts delivered to WIP stations<br />Eliminating stock room<br />Kanban implementation <br />Web based B2B replenishments systems  CRM integration<br /><br />
  13. 13. Building a Reputation<br />Second-Order<br />First-Order<br /><br />
  14. 14. Spending Money to Make Money<br />Millions Spent Creating and Marketing da Vinci<br />To Leverage Costs:<br />Continue to Innovate<br />Prevent Incumbent Inertia<br />Development of Key Technologies<br />Education of Buyers<br />Developing Supporting Infrastructure<br />Investing in Complementary Products<br />Maintain Product Leadership<br />Create Lock-In<br />
  15. 15. Team Practice Makes Perfect<br />Edmondson et al. Speeding up team learning. Harvard Business Review (2001) vol. 79 (9) pp. 125-134<br />
  16. 16. Intuitive’s First Mover Uncertainties<br />New Market<br />More Technically Capable New Entrant<br />Highly Uncertain Demand<br />High Cost of New Technology<br />Excess Capacity?<br />Current Capacity vs. New Products?<br />Inputs for Ultrasounds and EKG<br /> 3D Displays,<br />High-Tech Console<br />
  17. 17. Agenda<br />Intuitive<br />Industry<br />Analysis<br />Outlook<br />Recommendations<br />
  18. 18. Poised to Maintain Industry Leadership<br />Increased Sales<br /><ul><li>More Sales in U.S. Market
  19. 19. Expand Overseas
  20. 20. Marketing Increase to Hospitals, Surgeons, and Potential Patients</li></ul>More Hospitals with Devices<br />More Surgeons Using Devices<br />More Patients Want Surgeries<br />More Surgeries with Devices<br />
  21. 21. Poised to Maintain Industry Leadership<br />
  22. 22. Going After New Surgeries<br />New Instruments<br />Simulator<br />Currently used in general…<br />Expand to other <br />common surgeries<br />Long Tail of Surgeries<br />
  23. 23. Intuitive Continually Updates<br />3D HD<br />Dual Console<br />
  24. 24. Continue to Innovate<br />Technological Leadership<br />R&D 8% Revenue<br />Patents<br />Low to Medium Risk<br />Patent Expiration<br />Competition<br />Patent Variations on da Vinci<br />
  25. 25. Coming Soon: Rivals<br />Five Years Out<br />The Enemy: Sofie<br />
  26. 26. Promising Financial Future<br />
  27. 27. Paging Dr. WALL-E<br />
  28. 28. Agenda<br />Intuitive<br />Industry<br />Analysis<br />Outlook<br />Recommendations<br />
  29. 29. Users Trained as Leaders for Change<br />Supplement Training<br />Team Learning<br />Change Management<br />Community<br /><ul><li>Medical Conferences
  30. 30. Web Resources</li></li></ul><li>New Versions Create Value for Hospitals<br />Research and Development<br />Increase Longevity of Instruments<br />Faster Set-Up Times<br />Use for Other Surgeries<br />FDA Approval on Marketing Message<br />
  31. 31. Greatest Asset: Information on Surgical Techniques<br />
  32. 32. Open Platform to Speed Up Innovation<br />
  33. 33. Improve Data Collection Reduces Cost of Errors<br />
  34. 34. New Platform: Video Telestration with Experts<br />
  35. 35. Explore Licensing Deals with Hospitals<br />
  36. 36. Questions?<br />
  37. 37. Appendix - Financials<br />Consolidated Statements of Income information (in millions)<br />Source:<br />