4. PRESENTATION TITLE | MAR 2016 | PAGE
Understanding our capabilities is critical to to planning for
successful strategic execution.
5. PRESENTATION TITLE | MAR 2016 | PAGE
A common taxonomy to analyze areas of capability that
deliver value to the organization
• This helps us work in 3 ways:
1.Assigning desired performance of a
’business flow' (executive)
2.Establishing accountability for the
deliverables that feed the business
flow (line managers)
3.Establishing control so we can deliver
well and scale (employees)
• The goal is to look for pain points in
areas directly impacting our value
creation
ProcureToPay
Issue
To
ResolutionIdea
To
Solution
Record
To
Report
Hire
To
Retire
QuoteToCash
Customer,
Patient,
Shareholder
Value
6. PRESENTATION TITLE | MAR 2016 | PAGE
These key areas stood out as strong drivers of value with
significant opportunity for improvement
Market
-to-
Demand
•Build effective capabilities in the operational aspects of Market-to-Demand (trade shows, PR, product
marketing materials)
•Significant gaps exist in market assessment, value proposition development, forecasting and planning
Quote
-to-
Cash
•Avinger has processes and systems in this area, but most function in silos, relying on people for business
flow.
•Limited system integration and a lack of formal master data management (customer, pricing), make it very
manual and inefficient to use internal data as an analytical tool in forecasting and strategic planning.
•Core capabilities in the areas of lead identification and development, customer needs assessment and value
proposition development need development.
Hire
-to-
Retire
•This area has gone through a significant overhaul in the last year, with significant improvements in how we
attract, manage, develop and reward talent.
•The current organization however remains fragmented and top heavy with gaps in talent quality, these factors
are affecting overall decision making and execution.
7. PRESENTATION TITLE | MAR 2016 | PAGE
Managing mission-critical context:
5 Levers to Drive to Increased Productivity
8. PRESENTATION TITLE | MAR 2016 | PAGE
Apply Lean Principles
• Identify Value – when a product or service has been perceived or appraised to fulfill a need or desire—as
defined by the customer—the product or service may be said to have value or worth.
• Map Value stream – All the activities (both value-added and non-value added) required within an
organization to deliver a specific service.
• Create Flow – the progressive achievement of tasks and/or information as it proceeds along the value
stream
• Establish Pull – principle that no one upstream function or department should produce a service until the
customer downstream asks for it
• Seek Perfection – a never ending pursuit of the complete elimination of non-value adding waste
10. PRESENTATION TITLE | MAR 2016 | PAGE
PDCA Cycle
• PDCA is a learning cycle and a daily
routine
• When we learn, we form new
paradigms (mental models)
• Only when we address root causes,
do we prevent problems from
recurring
• People can’t learn when they feel
uncertain, stressed or unsafe!
11. PRESENTATION TITLE | MAR 2016 | PAGE
Business Priorities
Product Development
• Improve product reliability and usability (Pantheris 1.3 improvements, Pantheris 1.4)
• Develop new products to address unmet clinical needs and expand market opportunity (Pantheris BTK, Ocelaris,
Lightbox L300)
Customer Engagement
• Maintain a commercial presence to support current customers and preserve opportunities to expand market
presence once new products are launched (22 US territories, OUS presence)
• Increase efficiency of commercial activities by focusing resources on most productive territories and accounts
(smaller, flatter organization leveraging higher performers)
Clinical Evidence
• Continue to build evidence base from ongoing studies (VISION 24-Month)
• Support label expansion and new product introductions with new studies (INSIGHT, BTK)
• Publications and additional studies if needed supporting OCT reimbursement Financial
Financial
• Extend cash runway and make company more financeable (reduce cash burn and raise significant new financing)
• Maintain adequate financial controls and compliance with SEC and NASDAQ reporting requirements
