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

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Listen to TIGI's Gunter Wessels and Charlie Johnson, in this timely and information-packed webinar.

You can expect to learn:

A review of the first 5 device strategies that are failing
Five more strategies that are doomed to fail in 2012-2013
Practical implications for leaders, managers, and salespeople.

Published in: Health & Medicine, Business
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July 25 2012 | 5 more medical device strategies doomed to fail in 2012

  1. 1. More>5 Medical Device Strategies Doomed to Fail in 2012 July 25, 2012Gunter Wessels, Ph.D., MBA Charlie Johnson, M.Ed., B.S. Partner, Practice Principal, Consultant, Leadership Practice Principal,Total Innovation Group, Inc. Total Innovation Group, Inc. gunter@mytigi.net charlie@mytigi.net @gunterwessels www.tigi.net © TIGI 2012 All rights reserved
  2. 2. Failure Defined Sluggish growth Market Share Decline Price/Margin Erosion Commoditization Diminished profitability © TIGI 2012 All rights reserved
  3. 3. The First Big 51 Pricing Confidentiality Agreements2 Additional Salespeople3 Geographic Market Assignment4 Appeal to Physician Preference5 Feature-Advantage-Benefit Sales and Marketing © TIGI 2012 All rights reserved
  4. 4. 5 More Strategies That Will Fail 1 Add Features and Launch Now 2 Go-Big - Win Big 3 Get KOLs - Trickle Down 4 Bet on Past Performers 5 Drive Activity - Skip Training © TIGI 2012 All rights reserved
  5. 5. 1 Add Features & Launch NowFocus: New Product Features and Advancements © TIGI 2012 All rights reserved
  6. 6. Problem: Solutions are more contingent oncustomer capabilities than “more of” the sameadvances 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 © TIGI 2012 All rights reserved
  7. 7. Add Features & Launch Now RemedyDemonstrate the value of your solutions andclaim the realization of your benefits. • Clinical Capability Enhancement • Operational Efficiency Improvement • Financial Performance in Cost Reduction and Liability Avoidance SM © TIGI 2012 All rights reserved
  8. 8. 2 Go Big - Win BigFocus: The Largest Customers or Potential Customers © TIGI 2012 All rights reserved
  9. 9. Problem One: The healthcare market is growing and declining at different rates in different spaces. Critical Access Hospitals 1290 Facilities 3.8% of Discharges Large Urban 1310 Facilities 45% of Discharges 27% 28% Rural >50 Beds 153 Facilities 2% of Discharges 3% 2% Rural <50 Beds 4% 24% 102 Facilities <1% of Discharges 9% 3% Other Urban 1092 Facilities 38% of Discharges Medicare Dependent 195 Facilities 6% of Discharges Sole Community Rural Referral 394 Facilities 124 Facilities 6% of Discharges 4% of DischargesSource: Medpac 2011 based on 2009 Discharge and Facility Count Data © TIGI 2012 All rights reserved
  10. 10. AHA Hospital Market 5795 Registered Hospitals in 2009 D ec State/Local Run lin 19% in e g Federal S tabl Co 4% ns oli da tin Psychiatric g 8% For Profit 17% Long Term Care Prisons 2% 0.26% ting Consolida Not For Profit 50%Source: AHA ChartPack Data © TIGI 2012 All rights reserved
  11. 11. Problem Two: The largest and most capableorganizations are incorporating the latest in care-delivery forms that reduce utilization, cut cost, andstreamline care delivery. © TIGI 2012 All rights reserved
  12. 12. Go Big - Win Big RemedyDefine where your solution has the greatestpositive impact in clinical, operational andfinancial benefits. • The mid-market is straining; creating opportunity. • The low-end of the market is evolving rapidly and creating new opportunities © TIGI 2012 All rights reserved
  13. 13. 3 Get KOLs - Trickle Down Focus: Engage Lead Users and Innovators © TIGI 2012 All rights reserved
  14. 14. Problem: Many lead users and innovators do notrepresent your target market. © TIGI 2012 All rights reserved
  15. 15. Get KOLs - Trickle Down Remedy Engage Service Line ManagersService Lines Dominate Healthcare DeliveryA 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 © TIGI 2012 All rights reserved
  16. 16. 4 Bet on Past Performers Focus: Hiring Your Best Competitor © TIGI 2012 All rights reserved
  17. 17. Problem One: Your biggest competition is not thegood people you bid against-- it is another project. IT Pro ject Lean Project Parking Deck Investment © TIGI 2012 All rights reserved
  18. 18. Problem Two: “A” players don’t regularly leavetheir companies.“Experience is more easily gained than sales skill.” -Herbert Greenberg, Ph.D. © TIGI 2012 All rights reserved
  19. 19. Bet on Past Performers Remedy1. Recognize that the environment has changed2. Re-examine your value in the “new normal”3. Evolve your skills and understanding4. Align sales and marketing activity © TIGI 2012 All rights reserved
  20. 20. 5 Drive Activity - Skip Training Focus: Maximize Time-in-Territory and Defer Development and Training © TIGI 2012 All rights reserved
  21. 21. Problem One: Without a fundamental understandingof healthcare changes and their implications, you willstruggle to remain relevant. © TIGI 2012 All rights reserved
  22. 22. Problem Two: The key to better performance ismanagement, culture, and values. © TIGI 2012 All rights reserved
  23. 23. Drive Activity - Skip Training Remedy1. Study your industry, not just your product and your competitors2. Develop your healthcare business acumen3. Focus on Sales Productivity Metrics; ROSI4. Ask for help when you need it © TIGI 2012 All rights reserved
  24. 24. Recommendations:A Balanced Approach © TIGI 2012 All rights reserved
  25. 25. Developing Your Value: What are the Hurts? Department Service Line Facility IDN/System ACO/Network Delivering Enforce Protocols Care Coordination Growing or Accountable Care Clinical Evidence-Based & Medical Policy and Reducing to Populations, Medicine Across Service Line Utility Services Offered Disease Departments Portfolios Management Optimize Staffing Resource Equipment, Workflow, Patient Skill-Mix Required Shared Services Operational Deployment & Facilities, Flow, Patient MD/RN/AH, and Process Coordination of Efficiency Technology Experience Regulatory Outsourcing Assets Compliance Capitalization, Debt Service, Market Power Allocated Profit and Loss on Optimize EBITDA Financial Leverage, Aggregation with Revenues and the Service Line Margin, and Acquisitions, Suppliers andPerformance Expenses Operations Return on Assets Project Payers Justification © TIGI 2012 All rights reserved
  26. 26. What to Do?➡ 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 © TIGI 2012 All rights reserved
  27. 27. Summary RecommendationsStrategic Recommendations1. 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; ROSITactical Recommendations1. 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 competitors b) Develop your healthcare business acumen3. Ask for help when you need it © TIGI 2012 All rights reserved
  28. 28. Questions? www.tigi.net © TIGI 2012 All rights reserved
  29. 29. 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) © TIGI 2012 All rights reserved
  30. 30. Thank You Gunter Wessels, Ph.D., MBA Charlie Johnson, M.Ed. B.S.Partner, Practice Principal, TIGI Consultant & Leadership gunter@mytigi.net Practice Principal @gunterwessels charlie@mytigi.net www.tigi.net © TIGI 2012 All rights reserved

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