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UCSF Life Science Week 3 Digital Health: Channels

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UCSF Life Science Week 3 Digital Health: Channels

  1. Channels Lean Launchpad: Digital Health UCSF Entrepreneurship Center! October 15, 2013 Abhas Gupta, MD! Mohr Davidow Ventures! @abhasguptamd

  2. Customer Growth Next Week This Week Who sells your product and where does the sale occur? How does the product get from your company
 to your customer?
  3. Recommended Reading "Selling To The Fortune 500, Government, And Other Lovecraftian Horrors"
 http://bit.ly/1fvxsb0 "Strategies for Building Marketplaces"
 http://bit.ly/17pS3FE
  4. Acquisition Channels Distribution Channels How do you acquire and activate potential customers? ! Next Week’s Focus Who “makes the sale” and where does it occur? ! This Week’s Focus Customer Company Website Physical Channels Virtual Channels BIG IDEA:! Acquisition vs. Distribution
  5. Direct vs. Indirect Channels Who makes the sale? Web Distribution Channels Physical Distribution Chanels Direct You make the sale Indirect Others make the sale Your Company
 Website E-Commerce Sites
 App Platforms 2-step Distributions Aggregators Social Commerce Flash Sales Direct Sales OEM Distributors Dealers, Retailers Value Added Resellers System Integrators
  6. Digital Health
 Distribution Channels Cloud EMRs Pop Health Platforms Wellness Platforms Benefits Platforms General Enterprise Platforms ... and numerous other domain-specific ecosystems
  7. Increasing Marketing Complexity BIG IDEA:
 Complexity & Channels 
 an c ns els io lut ann o y s e ch it Direct lex valu p r Sales com ighe Field Sales, her re h Consultants H ig q u i VARs re TPAs, Payers Web /
 Telesales Retail Walgreens, Best Buy, Wal-Mart,Target Increasing Solution Complexity Systems Integrators Payer-Provider Platforms
  8. Case Example Omada Health! Digital pre-diabetes intervention Consumers Providers
 (Integrated) Self-Insured Employers Omada Health Website Direct Sales! Direct Sales! ! ! System Integrators Wellness Platforms! ! VARs
  9. Channel Economics Direct Sales Example COGS OpEx $35 Sales* $15 Profit Reseller $10 Discount $30 $10 * Sales is usually categorized under OpEx, along with R&D and G&A costs, but is separated here to illustrate channel selection’s impact on company sales’ costs App Store (Indirect) Sales Example $35 $15 $20 $30 Choosing indirect vs. direct sales channels depends upon profit margins, volume, customer access, and solution complexity
  10. For Next Week What are the distribution channels? Channel diagram and channel economics
  11. Channels Lean Launchpad: Digital Health UCSF Entrepreneurship Center! October 15, 2013 Abhas Gupta, MD! Mohr Davidow Ventures! @abhasguptamd


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